Internal Revenue Bulletin 2017-45 (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. Rul. 2017–21, page 482.
Federal rates; adjusted federal rates; adjusted federal long-
term rate and the long-term exempt rate. For purposes of
sections 382, 1274, 1288, and other sections of the Code,
tables set forth the rates for November 2017.
Notice 2017–66, page 487.
This notice invites public power providers (as defined in
§ 54C(d)(2) of the Internal Revenue Code (Code)) to submit
applications for an allocation of the available authority (volume
cap) to issue new clean renewable energy bonds under § 54C
of the Code to finance qualified renewable energy facilities (as
defined in § 54C(d)(1) of the Code).
Rev. Proc. 2017–58, page 489.
This procedure provides the 2018 cost-of-living adjustments to
certain items due to inflation as required by various provisions
of the Code and Service guidance.
ADMINISTRATIVE
Notice 2017–59, page 484.
This notice provides rules claimants must follow to submit a
claim for refund pursuant to the temporary relief provided in
section 3.02 of Notice 2017–30, 2017–21 I.R.B. 1248. A
claimant may submit a refund claim for the § 4081(a)(1) tax
imposed on undyed diesel fuel and kerosene for fuel that is 1)
removed from a Milwaukee terminal; 2) entered into a Green
Bay terminal within 24 hours; and 3) subsequently dyed and
removed from the Green Bay terminal.
Rev. Proc. 2017–58, page 489.
This procedure provides the 2018 cost-of-living adjustments to
certain items due to inflation as required by various provisions
of the Code and Service guidance.
EMPLOYEE PLANS
Notice 2017–64, page 486.
Section 415 of the Internal Revenue Code (the Code) provides
for dollar limitations on benefits and contributions under qual-
ified retirement plans. Section 415(d) requires that the Secre-
tary of the Treasury annually adjust these limits for cost of
living increases. Other limitations applicable to deferred com-
pensation plans are also affected by these adjustments under
§ 415. Under § 415(d), the adjustments are to be made under
adjustment procedures similar to those used to adjust benefit
amounts under § 215(i)(2)(A) of the Social Security Act.
ESTATE TAX
Rev. Proc. 2017–58, page 489.
This procedure provides the 2018 cost-of-living adjustments to
certain items due to inflation as required by various provisions
of the Code and Service guidance.
Finding Lists begin on page ii.
Bulletin No. 2017–45
November 6, 2017

EXCISE TAX
Notice 2017–59, page 484.
This notice provides rules claimants must follow to submit a
claim for refund pursuant to the temporary relief provided in
section 3.02 of Notice 2017–30, 2017–21 I.R.B. 1248. A
claimant may submit a refund claim for the § 4081(a)(1) tax
imposed on undyed diesel fuel and kerosene for fuel that is 1)
removed from a Milwaukee terminal; 2) entered into a Green
Bay terminal within 24 hours; and 3) subsequently dyed and
removed from the Green Bay terminal.
Rev. Proc. 2017–58, page 489.
This procedure provides the 2018 cost-of-living adjustments to
certain items due to inflation as required by various provisions
of the Code and Service guidance.
GIFT TAX
Rev. Proc. 2017–58, page 489.
This procedure provides the 2018 cost-of-living adjustments to
certain items due to inflation as required by various provisions
of the Code and Service guidance.

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.
November 6, 2017Bulletin No. 2017–45

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 1274.—
Determination of Issue
Price in the Case of
Certain Debt Instruments
Issued for Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520.)
Rev. Rul. 2017–21
This revenue ruling provides various
prescribed rates for federal income tax
purposes for November 2017 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month for
purposes of section 1274(d) of the Internal
Revenue Code. Table 2 contains the short-
term, mid-term, and long-term adjusted
applicable federal rates (adjusted AFR)
for the current month for purposes of sec-
tion 1288(b). Table 3 sets forth the ad-
justed federal long-term rate and the long-
term tax-exempt rate described in section
382(f). Table 4 contains the appropriate
percentages for determining the low-
income housing credit described in sec-
tion 42(b)(1) for buildings placed in ser-
vice during the current month. However,
under section 42(b)(2), the applicable per-
centage for non-federally subsidized new
buildings placed in service after July 30,
2008, shall not be less than 9%. Finally,
Table 5 contains the federal rate for de-
termining the present value of an annuity,
an interest for life or for a term of years, or
a remainder or a reversionary interest for
purposes of section 7520.
REV. RUL. 2017–21 TABLE 1
Applicable Federal Rates (AFR) for November 2017
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR1.38%1.38%1.38%1.38%
110% AFR1.53%1.52%1.52%1.52%
120% AFR1.67%1.66%1.66%1.65%
130% AFR1.80%1.79%1.79%1.78%
Mid-term
AFR2.00%1.99%1.99%1.98%
110% AFR2.20%2.19%2.18%2.18%
120% AFR2.40%2.39%2.38%2.38%
130% AFR2.61%2.59%2.58%2.58%
150% AFR3.01%2.99%2.98%2.97%
175% AFR3.51%3.48%3.46%3.46%
Long-term
AFR2.60%2.58%2.57%2.57%
110% AFR2.86%2.84%2.83%2.82%
120% AFR3.12%3.10%3.09%3.08%
130% AFR3.38%3.35%3.34%3.33%
REV. RUL. 2017–21 TABLE 2
Adjusted AFR for November 2017
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR1.03%1.03%1.03%1.03%
Mid-term adjusted AFR1.49%1.48%1.48%1.48%
Long-term adjusted AFR1.93%1.92%1.92%1.91%
November 6, 2017Bulletin No. 2017–45
482

REV. RUL. 2017–21 TABLE 3
Rates Under Section 382 for November 2017
Adjusted federal long-term rate for the current month1.93%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted
federal long-term rates for the current month and the prior two months.)
1.93%
REV. RUL. 2017–21 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for November 2017
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new
buildings placed in service after July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.53%
Appropriate percentage for the 30% present value low-income housing credit3.23%
REV. RUL. 2017–21 TABLE 5
Rate Under Section 7520 for November 2017
Applicable federal rate for determining the present value of an annuity, an interest
for life or a term of years, or a remainder or reversionary interest
2.4%
Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term, and
long-term rates are set forth for the month of No-
vember 2017. See Rev. Rul. 2017–21, page 482.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term, and
long-term rates are set forth for the month of No-
vember 2017. See Rev. Rul. 2017–21, page 482.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and Certain
Built-In Losses Following
Ownership Change
The adjusted applicable federal long-term rate is
set forth for the month of November 2017. See Rev.
Rul. 2017–21, page 482.
Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term, and
long-term rates are set forth for the month of No-
vember 2017. See Rev. Rul. 2017–21, page 482.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term, mid-term, and
long-term rates are set forth for the month of No-
vember 2017. See Rev. Rul. 2017–21, page 482.
Section 482.—Allocation of
Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term, and
long-term rates are set forth for the month of No-
vember 2017. See Rev. Rul. 2017–21, page 482.
Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term, and
long-term rates are set forth for the month of No-
vember 2017. See Rev. Rul. 2017–21, page 482.
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of November 2017. See Rev. Rul. 2017–21, page
482.
Section 7520.—Valuation
Tables
The applicable federal short-term, mid-term, and
long-term rates are set forth for the month of No-
vember 2017. See Rev. Rul. 2017–21, page 482.
Bulletin No. 2017–45November 6, 2017
483

Part III. Administrative, Procedural, and Miscellaneous
Temporary Relief for Fuel
Removals Destined for
Nontaxable Use Due to
West Shore Pipeline
Shutdown
Notice 2017–59
SECTION 1. PURPOSE
This notice provides rules claimants
must follow to submit a claim for refund
pursuant to the temporary relief pro-
vided in section 3.02 of Notice 2017–
30, 2017–21 I.R.B. 1248, published on
May 22, 2017. A claimant may submit a
refund claim for the Internal Revenue
Code (Code) § 4081(a)(1) tax imposed on
undyed diesel fuel and kerosene for fuel
that is 1) removed from a Milwaukee ter-
minal; 2) entered into a Green Bay termi-
nal within 24 hours of removal from that
Milwaukee terminal; and 3) subsequently
dyed and removed from that Green Bay
terminal.
SECTION 2. BACKGROUND
.01West Shore Pipeline Shutdown and
Emergency Fuel Tax Relief. On May 22,
2017, the Treasury Department and the
Internal Revenue Service (IRS) published
Notice 2017–30 in response to energy
emergencies in Wisconsin resulting from
the permanent shutdown of the segment of
the West Shore Pipeline between Milwau-
kee and Green Bay. Section 3.01 of No-
tice 2017–30 provides one time 180-day
temporary emergency relief for fuel re-
movals from Milwaukee terminals that
take place on or after May 3, 2017, and
before October 31, 2017.
Section 3.02 of Notice 2017–30 pro-
vides that once the 180-day temporary
emergency relief expires, the Treasury
Department and IRS will provide a
temporary refund mechanism for the
§ 4081(a)(1) tax imposed upon removals
of undyed diesel fuel and kerosene from a
Milwaukee terminal when such fuel is
subsequently removed from a Green Bay
terminal as dyed fuel destined for a non-
taxable use. Section 3.02 of Notice
2017–30 further states that the Treasury
Department and the IRS will publish ad-
ditional guidance on how persons eligible
for relief under section 3.02 of Notice
2017–30 may submit claims for refund.
This notice provides that guidance.
.02Law. Section 4081(a)(1)(A)(ii) of
the Code imposes tax on the removal of
taxable fuel, which includes diesel fuel
and kerosene, from any terminal.
Section 48.4081–1(b) of the Manufac-
turers and Retailers Excise Tax Regula-
tions (regulations) defines “removal” as
any physical transfer of taxable fuel, and
any use of taxable fuel other than as a
material in the production of taxable fuel
or special fuels. Taxable fuel is not re-
moved when it evaporates or is otherwise
lost or destroyed.
Section 4081(a)(1)(B)(i) provides an
exemption from the tax imposed by
§ 4081(a)(1)(A) for removals of taxable
fuel transferred in bulk by pipeline or ves-
sel to registered terminals.
Section 48.4081–2 of the regulations
provides the rules regarding tax on the
removal of taxable fuel at the terminal
rack. Under § 48.4081–2(a), the position
holder with respect to the fuel removed at
the terminal rack is generally liable for the
tax.
Section 4081(a)(2)(A)(iii) prescribes a
tax rate of 24.3 cents per gallon of diesel
fuel or kerosene for the tax imposed by
§ 4081(a)(1)(A).
Section 4081(a)(2)(B) imposes a tax of
0.1 cent per gallon (referred to as the
Leaking Underground Storage Tank Trust
Fund tax or the LUST tax) in addition to
the tax imposed by § 4081(a)(1)(A)(ii).
Section 4081(e) provides that, under
regulations prescribed by the Secretary, if
any person that paid the tax imposed by
§ 4081 with respect to any taxable fuel
establishes to the satisfaction of the Sec-
retary that a prior tax was paid (and not
credited or refunded) with respect to such
taxable fuel, then an amount equal to the
tax paid by such person shall be allowed
as a refund (without interest) to such
person in the same manner as if it were
an overpayment of tax imposed by
§ 4081.
Section 48.4081–7 sets forth the re-
porting requirements and other conditions
for claiming a refund under § 4081(e).
Section 4082(a) provides that the tax
imposed by § 4081 does not apply to
diesel fuel and kerosene that is indelibly
dyed in accordance with Treasury regula-
tions, meets any marking requirements
prescribed by Treasury regulations, and is
destined for a nontaxable use.
Section 4082(b) prescribes the types of
uses that are nontaxable for purposes of
the exemption provided in § 4082(a).
Section 4082(f) provides that the ex-
emption provided in § 4082(a) does not
apply to the LUST tax. As a result, a
person not liable for the tax on diesel fuel
and kerosene because of the exemption
provided in § 4082(a) is still liable for the
LUST tax on the otherwise tax exempt
diesel fuel and kerosene.
Sections 48.4082–1 and Notice 2005–
80, 2005–2 C.B. 953, provide rules and
conditions for the exemption provided by
§ 4082(a) to apply to the removal, entry,
or sale of any diesel fuel or kerosene.
SECTION 3. RULES FOR
TEMPORARY DYED FUEL RELIEF
.01Temporary Dyed Fuel Relief. For
the period beginning on October 31, 2017,
and ending on May 3, 2018, if any person
(that is, the position holder) that removes
diesel fuel or kerosene that satisfies the
requirements of § 4082 from a Green Bay
terminal establishes to the satisfaction of
the Secretary that a prior tax was paid
with respect to the removal of such fuel
from a Milwaukee terminal, then an
amount equal to the prior tax paid shall be
allowed as a refund (without interest) to
the position holder in the same manner as
if it were an overpayment of tax imposed
by § 4081.
The relief described in this section 3.01
is not available with respect to any trans-
action for which one or more conditions
set forth in section 3.02 of this notice are
not satisfied or for any refund claim that
fails to comply with the procedures set
forth in sections 3.03 and 3.04 of this
notice.
.02Conditions to Relief. The relief de-
scribed in section 3.01 of this notice is
available only if all of the following con-
ditions are satisfied:
November 6, 2017Bulletin No. 2017–45
484

(1) The segment of the West Shore
Pipeline between Milwaukee and Green
Bay remains permanently and completely
shut down.
(2) All operators of terminals from
which diesel fuel or kerosene is removed
or entered pursuant to the relief described
in section 3.01 of this notice must timely
and accurately satisfy Excise Summary
TerminalActivityReportingSystem
(ExSTARS) reporting obligations by fil-
ing Form 720 –TO,Terminal Operator
Report, as required by § 4101(d) and
§ 48.4101–1(h)(1)(iii). Form 720 –TO fil-
ers are reminded of the information re-
porting requirements under § 4101(d) and
the penalty provisions of § 6725 for any
failure to report, and any failure to in-
clude, all of the information required to be
shown on such report or the inclusion of
incorrect information.
(3) All position holders with respect to
diesel fuel or kerosene removed or entered
pursuant to the relief described in section
3.01 of this notice must keep records pur-
suant to § 48.4101–1(h)(1)(ii) that suffi-
ciently show tax liability under § 4081
and payments or deposits of such liability.
(4) The same person that removes un-
dyeddiesel fuel or kerosene from a Milwau-
kee terminal (that is, the position holder in
the Milwaukee terminal) must enter the un-
dyed diesel fuel or kerosene into a Green
Bay terminal within 24 hours of its removal
from the Milwaukee terminal.
(5) If a position holder at the Green
Bay terminal commingles tax-paid diesel
fuel or kerosene with untaxed diesel fuel
or kerosene, the position holder must
identify the undyed diesel fuel or kerosene
destined for a nontaxable use by any rea-
sonable method, including a first-in, first-
out method applied either on a tank-by-
tank basis or on an aggregate basis to all
commingled undyed diesel or kerosene fuel
held by the position holder at the Green Bay
terminal.
(6) A position holder that removes un-
dyed diesel fuel or kerosene from a Mil-
waukee terminal and enters the undyed
diesel fuel or kerosene into a Green Bay
terminal as described in section 3.02(4) of
this notice must comply with the require-
ments of § 48.4081–7. Therefore, the po-
sition holder must prepare and file the
report described in § 48.4081–7(c)(1) (the
First Taxpayer’s Report) in the manner
described in the regulations and theIn-
structions for Form 720. The position
holder must provide a copy of the First
Taxpayer’s Report to the purchasing po-
sition holder.
(7) A position holder that removes un-
dyed diesel fuel or kerosene from a Mil-
waukee terminal and enters the undyed
diesel fuel or kerosene into a Green Bay
terminal as described in section 3.02(4) of
this notice and who is also the position
holder of that fuel when it is removed as
dyed fuel from the Green Bay terminal,
must file Form 720,Quarterly Federal
Excise Tax Return, and remit the § 4081
tax prior to submitting a claim for refund
pursuant to this notice, for the quarter to
which the claim relates.
(8) A position holder that removes un-
dyed diesel fuel or kerosene from a Mil-
waukee terminal and enters the undyed
diesel fuel or kerosene into a Green Bay
terminal as described in section 3.02(4) of
this notice must maintain detailed records
that include matching bill of lading num-
bers for each removal of undyed diesel
fuel or kerosene from a Milwaukee termi-
nal to bill of lading receipts of undyed
diesel fuel or kerosene received at a Green
Bay terminal.
(9) A position holder that submits a
claim for refund pursuant to this notice
must follow all of the procedures set forth
in sections 3.03 and 3.04 of this notice.
.03How to Submit a Claim for Refund
under this Notice. A position holder seek-
ing the relief described in section 3.01 of
this notice must follow the procedures
listed in this section 3.03 in order to re-
ceive a refund of § 4081(a)(1) tax. Failing
to follow the procedures listed in this sec-
tion 3.03 will result in substantial delays
in processing the claim and may result in
the IRS denying the claim. If the condi-
tions to relief described in section 3.02 of
this notice are met, and the position holder
follows the procedures in this section 3.03
to claim a refund, the IRS will treat the
claim in a manner similar to a § 4081(e)
claim where the claimant paid a second
tax.
The relief described in section 3.01 of
this notice is available only if all of the
procedures listed below are followed:
(1) The position holder must submit
refund claims on Form 8849,Claim for
Refund of Excise Taxes. The position
holder must write “CLAIM PURSUANT
TO NOTICE 2017–59” across the top of
the first page of the form.
(2) The position holder must include
Schedule 5 (Form 8849),Section 4081(e)
Claims, with their refund claim. In col-
umn (d) of Part II on Schedule 5 (Form
8849), enter the date that the dyed diesel
fuel or kerosene was removed from the
rack at a Green Bay terminal. In column
(f) of Part II on Schedule 5 (Form 8849)
enter the amount of the first tax (including
LUST tax, provided LUST tax was paid
upon removal from the rack at a Green
Bay terminal) imposed on the diesel fuel
or kerosene when it was removed from a
Milwaukee terminal.
(3) The position holder must follow the
instructions to Form 8849 and Schedule 5
(Form 8849) when preparing a refund
claim to the extent that those instructions
do not conflict with this notice.
(4) The position holder must include
with its refund claim copies of the First
Taxpayer’s Reports (and, if applicable,
the statement described in § 48.4081–
7(c)(4)(iii) (Statement of Subsequent
Seller)) that were received from the per-
son that removed the undyed diesel fuel or
kerosene from a Milwaukee terminal (see
section 3.02(6) of this notice) for the fuel
to which the refund claim relates.
(5) The refund claim must not include
any fuel other than undyed diesel fuel or
kerosene removed from a Milwaukee ter-
minal that was received at a terminal in
Green Bay (within the 24 hour period
described in section 3.02 of this notice),
subsequently dyed in accordance with
§ 48.4082–1 and Notice 2005– 80, and
then removed from the terminal in Green
Bay.
.04Time for Filing Claim Made Under
this Notice. Generally, a position holder
may file a claim for refund under this
notice any time after the removal at a
Green Bay terminal rack of the dyed die-
sel fuel or kerosene to which the claim
relates, and before the end of the period
prescribed by § 6511 for filing a claim for
refund. A position holder described in
section 3.02(7) of this notice may not
claim a refund under this notice prior to
filing the Form 720 and remitting the
§ 4081 tax for the quarter to which the
claim relates.
Bulletin No. 2017–45November 6, 2017
485

SECTION 4. EFFECTIVE DATE
The temporary dyed fuel relief de-
scribed in section 3.01 of this notice ap-
plies to removals of dyed diesel fuel and
kerosene from Green Bay terminals on or
after October 31, 2017, and before May 4,
2018.
SECTION 5. WHOM TO CONTACT
FOR ADDITIONAL INFORMATION
For questions regarding the conditions
set forth in section 3.02 of this notice or
the refund procedures provided in sections
3.03 and 3.04 of this notice, contact
Michel Monconduit at (657) 247-3355
(not a toll-free call).
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice is
Michael H. Beker of the Office of Asso-
ciate Chief Counsel (Passthroughs & Spe-
cial Industries). For further information
regarding this notice contact Mr. Beker at
(202) 317-6855 (not a toll-free number).
2018 Limitations Adjusted
As Provided in Section
415(d), etc.
Notice 2017–64
Section 415 of the Internal Revenue
Code (the Code) provides for dollar limi-
tations on benefits and contributions under
qualified retirement plans. Section 415(d)
requires that the Secretary of the Treasury
annually adjust these limits for cost-of-
living increases. Other limitations appli-
cable to deferred compensation plans are
also affected by these adjustments under
§ 415. Under § 415(d), the adjustments
are to be made under adjustment proce-
dures similar to those used to adjust ben-
efit amounts under § 215(i)(2)(A) of the
Social Security Act.
Cost-of-Living Adjusted Limits for
2018
Effective January 1, 2018, the limita-
tion on the annual benefit under a defined
benefit plan under § 415(b)(1)(A) is in-
creased from $215,000 to $220,000.
For a participant who separated from
service before January 1, 2018, the partic-
ipant’s limitation under a defined benefit
plan under § 415(b)(1)(B) is computed by
multiplying the participant’s compensa-
tion limitation, as adjusted through 2017,
by 1.0197.
The limitation for defined contribution
plans under § 415(c)(1)(A) is increased in
2018 from $54,000 to $55,000.
The Code provides that various other
dollar amounts are to be adjusted at the
same time and in the same manner as the
dollar limitation of § 415(b)(1)(A). After
taking into account the applicable round-
ing rules, the amounts for 2018 are as
follows:
The limitation under § 402(g)(1) on the
exclusion for elective deferrals described
in § 402(g)(3) is increased from $18,000
to $18,500.
The annual compensation limit under
§§ 401(a)(17), 404(l), 408(k)(3)(C),
and 408(k)(6)(D)(ii) is increased from
$270,000 to $275,000.
Thedollarlimitationunder
§ 416(i)(1)(A)(i) concerning the defini-
tion of “key employee” in a top-heavy
plan remains unchanged at $175,000.
The dollar amount under § 409(o)(1)(C)(ii)
for determining the maximum account
balance in an employee stock ownership
plan subject to a 5-year distribution pe-
riod is increased from $1,080,000 to
$1,105,000, while the dollar amount
used to determine the lengthening of the
5-year distribution period is increased
from $215,000 to $220,000.
The limitation used in the definition of
“highly compensated employee” under
§ 414(q)(1)(B) remains unchanged at
$120,000.
Thedollarlimitationunder
§ 414(v)(2)(B)(i) for catch-up contri-
butions to an applicable employer
plan other than a plan described in
§ 401(k)(11) or §408(p) for individuals
aged 50 or over remains unchanged at
$6,000. The dollar limitation under
§ 414(v)(2)(B)(ii) for catch-up contribu-
tions to an applicable employer plan de-
scribed in § 401(k)(11) or 408(p) for
individuals aged 50 or over remains un-
changed at $3,000.
The annual compensation limitation
under § 401(a)(17) for eligible partici-
pants in certain governmental plans
that, under the plan as in effect on July
1, 1993, allowed cost-of-living adjust-
ments to the compensation limitation
under the plan under § 401(a)(17) to be
taken into account, is increased from
$400,000 to $405,000.
Thecompensationamountunder
§ 408(k)(2)(C) regarding simplified
employee pensions (SEPs) remains un-
changed at $600.
The limitation under § 408(p)(2)(E) re-
garding SIMPLE retirement accounts
remains unchanged at $12,500.
The limitation on deferrals under
§ 457(e)(15) concerning deferred com-
pensation plans of state and local gov-
ernments and tax-exempt organizations
is increased from $18,000 to $18,500.
The limitation under § 664(g)(7) con-
cerning the qualified gratuitous transfer
of qualified employer securities to an
employee stock ownership plan is in-
creased from $45,000 to $50,000.
The compensation amounts under
§ 1.61–21(f)(5)(i) of the Income Tax
Regulations concerning the definition
of “control employee” for fringe bene-
fit valuation purposes is increased from
$105,000 to $110,000. The compensa-
tion amount under § 1.61–21(f)(5)(iii) is
increased from $215,000 to $220,000.
The dollar limitation on premiums paid
with respect to a qualifying longevity
annuity contract under § 1.401(a)(9)– 6,
A–17(b)(2)(i) of the Income Tax Regu-
lations is increased from $125,000 to
$130,000.
The Code provides that the $1,000,000,000
threshold used to determine whether a mul-
tiemployer plan is a systemically important
plan under § 432(e)(9)(H)(v)(III)(aa) is ad-
justed using the cost-of-living adjustment
provided under § 432(e)(9)(H)(v)(III)(bb).
After taking the applicable rounding rule
into account, the threshold used to deter-
mine whether a multiemployer plan is
a systemically important plan under
§ 432(e)(9)(H)(v)(III)(aa) is increased from
$1,012,000,000 to $1,087,000,000.
The Code also provides that several
retirement-related amounts are to be ad-
justed using the cost-of-living adjustment
under § 1(f)(3). After taking the applicable
rounding rules into account, the amounts for
2018 are as follows:
November 6, 2017Bulletin No. 2017–45
486

The adjusted gross income limitation
under § 25B(b)(1)(A) for determining
the retirement savings contributionscredit
for married taxpayers filing a joint return
is increased from $37,000 to$38,000; the
limitation under § 25B(b)(1)(B) is in-
creased from $40,000 to $41,000; and the
limitation under §§ 25B(b)(1)(C) and
25B(b)(1)(D) is increased from $62,000 to
$63,000.
The adjusted gross income limitation un-
der § 25B(b)(1)(A) for determining the
retirement savings contributions credit
for taxpayers filing as head of household
is increased from $27,750 to $28,500;
the limitation under § 25B(b)(1)(B) is
increased from $30,000 to $30,750; and
the limitation under §§ 25B(b)(1)(C) and
25B(b)(1)(D) is increased from $46,500
to $47,250.
The adjusted gross income limitation
under § 25B(b)(1)(A) for determining
the retirement savings contributions
credit for all other taxpayers is in-
creased from $18,500 to $19,000; the
limitation under § 25B(b)(1)(B) is in-
creased from $20,000 to $20,500; and
the limitation under §§ 25B(b)(1)(C)
and 25B(b)(1)(D) is increased from
$31,000 to $31,500.
Thedeductibleamountunder
§ 219(b)(5)(A) for anindividual mak-
ing qualified retirement contributions re-
mains unchanged at $5,500.
The applicable dollar amount under
§ 219(g)(3)(B)(i) for determining the de-
ductible amount of an IRA contribution
for taxpayers who are active participants
filing a joint return or as a qualifying
widow(er) is increased from $99,000 to
$101,000. The applicable dollar amount
under § 219(g)(3)(B)(ii) for all other tax-
payers who are active participants (other
than married taxpayers filing separate re-
turns) is increased from $62,000 to
$63,000. If an individual or the indi-
vidual’s spouse is an active partici-
pant, the applicable dollar amount
under §219(g)(3)(B)(iii) for a married
individual filing a separate return is not
subject to an annual cost-of-living adjust-
ment and remains $0. The applicable
dollar amount under § 219(g)(7)(A) for a
taxpayer who is not an active participant
but whose spouse is an active participant
is increased from $186,000 to $189,000.
Accordingly, under § 219(g)(2)(A), the
deduction for taxpayers making contri-
butions to a traditional IRA is phased
out for single individuals and heads of
household who are active participants
in a qualified plan (or another retire-
ment plan specified in § 219(g)(5)) and
have adjusted gross incomes (as
defined in § 219(g)(3)(A)) between
$63,000 and $73,000, increased from
between $62,000 and $72,000. For
married couples filing jointly, if the
spouse who makes the IRA contribu-
tion is an active participant, the income
phase-out range is between $101,000
and $121,000, increased from between
$99,000 and $119,000. For an IRA
contributor who is not an active partic-
ipant and is married to someone who
is an active participant, the deduction is
phased out if the couple’s income is
between $189,000 and $199,000, in-
creased from between $186,000 and
$196,000. For a married individual fil-
ing a separate return who is an active
participant, the phase-out range is not
subject to an annual cost-of-living ad-
justment and remains $0 to $10,000.
The adjusted gross income limitation
under § 408A(c)(3)(B)(ii)(I) for determin-
ing the maximum Roth IRA contribution
for married taxpayers filing a joint return or
for taxpayers filing as a qualifying wid-
ow(er) is increased from $186,000 to
$189,000. The adjustedgross income lim-
itation under § 408A(c)(3)(B)(ii)(II) for
all other taxpayers (other than married
taxpayers filing separate returns) is in-
creased from $118,000 to $120,000.
The applicable dollar amount under
§ 408A(c)(3)(B)(ii)(III) for a married in-
dividual filing a separate return is not
subject to an annual cost-of-living adjust-
ment and remains $0.
Accordingly, under § 408A(c)(3)(A),
the adjusted gross income phase-out
range for taxpayers making contribu-
tions to a Roth IRA is $189,000 to
$199,000 for married couples filing
jointly, increased from $186,000 to
$196,000. For singles and heads of
household, the income phase-out range
is $120,000 to $135,000, increased
from $118,000 to $133,000. For a mar-
ried individual filing a separate return,
the phase-out range is not subject to an
annual cost-of-living adjustment and
remains $0 to $10,000.
Drafting Information
The principal author of this notice is
Tom Morgan of the Office of the Associ-
ate Chief Counsel (Tax Exempt and Gov-
ernment Entities). However, other person-
nel from the IRS participated in the
development of this guidance. For further
information regarding this notice, contact
Mr. Morgan at 202-317-6700 or John Heil
at 443-853-5519 (not toll-free numbers).
New Clean Renewable
Energy Bonds
Notice 2017–66
SECTION 1. PURPOSE
The IRS has identified $379,549,691.35 of
volume cap to beavailable under this Notice
for reallocation to public power providers
(as defined in § 54C(d)(2) of the Internal
Revenue Code) (the Code) for authority to
issue new clean renewable energy bonds
(New CREBs) under § 54C of the Code for
projects to be owned by public power pro-
viders. Interested public power providers
must submit an application (“Application”)
pursuant to the application requirements set
forth in section 3 of this Notice, including
the deadline for submitting the Application.
Only Applications from public power
providers will be considered under this
Notice.
SECTION 2. BACKGROUND
Notice 2015–12, 2015–10 I.R.B. 700,
solicited applications for allocations of the
remaining available amount of volume
cap for New CREBs. Applicants that re-
ceived a volume cap allocation under No-
tice 2015–12 were required to issue the
proposed bonds within 180 days from the
date of the allocation letter. Allocations
with respect to any portion of the pro-
posed bonds not issued during that time
were treated as forfeited and available for
reallocation. Under section 3.01 of Notice
2015–12, the IRS is expected to reallocate
volume cap designated for public power
providers that has not been allocated, or
that has been forfeited.
Bulletin No. 2017–45November 6, 2017
487

Under Notice 2015–12, $516,565,691.35
of New CREBs volume cap wasavailable for
reallocation to public power providers. Pub-
lic power providers have reported to the IRS
the issuance of New CREBs in the amount
of $137,016,000. Based on these reports, the
passage of the deadlines described
above for issuing New CREBs by public
power providers, and other information
provided to the IRS, the IRS has identi-
fied $379,549,691.35 of volume cap avail-
able for reallocation under this Notice for
projects to be owned by public power pro-
viders. The available amount of volume cap
includes forfeited amounts previously allo-
cated under Notice 2015–12.
As provided in section 3.01 of Notice
2015–12, the IRS expects to reallocate
volume cap allocated under this Notice
that has been relinquished or has reverted
to the IRS as part of an allocation process
to be announced by the IRS in future
guidance similar to this Notice that gen-
erally follows the process set forth in No-
tice 2015–12.
SECTION 3. GENERAL
APPLICATION REQUIREMENTS
.01Notice 2015–12 Application re-
quirements. The provisions of Notice
2015–12 (as applicable to public power
providers), including Application require-
ments and appendices (other than Appen-
dix D, which does not apply under this
Notice) apply to all Applications for avail-
able volume cap under this Notice. To be
treated as submitted, the Application, and
any additional information and supporting
documents must: (1) satisfy all of the ap-
plicable requirements of Notice 2015–12
(as applicable to public power providers),
including without limitation those de-
scribed in section 3 of Notice 2015–12;
(2) demonstrate by attaching supporting
documents that the Applicant is a public
power provider under § 54C(d)(2); and (3)
be prepared in substantially the same
format as the form (including exhibits
thereto) attached to Notice 2015–12 as
Appendix A.
.02Due date for Applications for New
CREBs volume cap under this Notice.Ap-
plicants for projects to be owned by public
power providers must submit complete
Applications for an allocation of volume
cap under this Notice on or before June
19, 2018.
.03Address for Submissions.The Ap-
plication must be submitted by hard copy
accompanied by a copy of the Application
in PDF format on a CD and sent (by U.S.
Postal Service or designated private deliv-
ery service) to the Internal Revenue Ser-
vice (IRS), Attention: Kenneth Stengel,
1122 Town & Country Commons, Ches-
terfield, MO 63017.
.04Compliance with Notice 2015–12.
By submitting an Application, the appli-
cant agrees to comply with the require-
ments of Notice 2015–12 as they apply to
public power providers. This Notice and
Notice 2015–12 may be found electroni-
cally under the link “TEB Published
Guidance” on the IRS web site at http://
www.irs.gov/Tax-Exempt-Bonds.
SECTION 4. DRAFTING
INFORMATION
The principal authors of this Notice are
Steve Haycock of the IRS Office of Tax
Exempt Bonds and Zoran Stojanovic of
the Office of Associate Chief Counsel (Fi-
nancial Institutions and Products). For fur-
ther information regarding this Notice,
contact Mr. Stojanovic at 202-317-6980
(not a toll-free call). For further informa-
tion about submitted Applications, contact
Kenneth Stengel at 636-255-1286 (not a
toll-free number).
November 6, 2017Bulletin No. 2017–45
488

26 CFR 601.602: Tax forms and instructions.
(Also Part I, §§ 1, 23, 25A, 32, 36B, 42, 45R, 55, 59, 62, 63, 68, 125, 132, 135, 137, 146, 147, 148, 151, 179, 213, 220, 221, 512, 513, 831, 877, 877A, 911, 2010,
2032A, 2503, 2523, 4161, 4261, 5000A, 6033, 6039F, 6323, 6334, 6601, 6651, 6652, 6695, 6698, 6699, 6721, 6722, 7345, 7430, 7702B, 9831; 1.148 –5.)
Rev. Proc. 2017–58
TABLE OF CONTENTS
SECTION 1. PURPOSE
SECTION 2. CHANGES
SECTION 3. 2018 ADJUSTED ITEMS
Code Section
.01 Tax Rate Tables..............................................................1(a)–(e)
.02 Unearned Income of Minor Children Taxed as if Parent’s Income (“Kiddie Tax”)..........1(g)
.03 Adoption Credit...............................................................23
.04 Lifetime Learning Credit.......................................................25A
.05 Earned Income Credit..........................................................32
.06 Refundable Credit for Coverage under a Qualified Health Plan.........................36B(f)(2)(B)
.07 Rehabilitation Expenditures Treated as Separate New Building.........................42(e)
.08 Low-Income Housing Credit....................................................42(h)
.09 Employee Health Insurance Expense of Small Employers.............................45R
.10 Exemption Amounts for Alternative Minimum Tax..................................55
.11 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax”............59(j)
.12 Certain Expenses of Elementary and Secondary School Teachers.......................62(a)(2)(D)
.13 Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation
Rules for Payments to Employees under Accountable Plans...........................62(c)
.14 Standard Deduction............................................................63
.15 Overall Limitation on Itemized Deductions.........................................68
.16 Cafeteria Plans................................................................125
.17 Qualified Transportation Fringe Benefit............................................132(f)
.18 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher
Education Expenses............................................................135
.19 Adoption Assistance Programs...................................................137
.20 Private Activity Bonds Volume Cap..............................................146(d)
.21 Loan Limits on Agricultural Bonds...............................................147(c)(2)
.22 General Arbitrage Rebate Rules..................................................148(f)
.23 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts or Invest-
ments Purchased for a Yield Restricted Defeasance Escrow...........................148
.24 Personal Exemption............................................................151
.25 Election to Expense Certain Depreciable Assets.....................................179
.26 Eligible Long-Term Care Premiums..............................................213(d)(10)
.27 Medical Savings Accounts......................................................220
.28 Interest on Education Loans.....................................................221
.29 Treatment of Dues Paid to Agricultural or Horticultural Organizations..................512(d)
.30 Insubstantial Benefit Limitations for Contributions Associated With Charitable Fund-Raising
Campaigns...................................................................513(h)
.31 Tax on Insurance Companies Other than Life Insurance Companies.....................831
.32 Expatriation to Avoid Tax......................................................877
.33 Tax Responsibilities of Expatriation..............................................877A
Bulletin No. 2017–45November 6, 2017
489

.34 Foreign Earned Income Exclusion................................................911
.35 Unified Credit Against Estate Tax................................................2010
.36 Valuation of Qualified Real Property in Decedent’s Gross Estate.......................2032A
.37 Annual Exclusion for Gifts......................................................2503; 2523
.38 Tax on Arrow Shafts...........................................................4161
.39 Passenger Air Transportation Excise Tax..........................................4261
.40 Requirement to Maintain Minimum Essential Coverage...............................5000A
.41 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying
Expenditures.................................................................6033(e)(3)
.42 Notice of Large Gifts Received from Foreign Persons................................6039F
.43 Persons Against Whom a Federal Tax Lien Is Not Valid.............................6323
.44 Property Exempt from Levy.....................................................6334
.45 Interest on a Certain Portion of the Estate Tax Payable in Installments..................6601(j)
.46 Failure to File Tax Return......................................................6651
.47 Failure to File Certain Information Returns, Registration Statements, etc.................6652
.48 Other Assessable Penalties With Respect to the Preparation of Tax Returns for Other
Persons.....................................................................6695
.49 Failure to File Partnership Return...............................................6698
.50 Failure to File S Corporation Return............................................6699
.51 Failure to File Correct Information Returns.......................................6721
.52 Failure to Furnish Correct Payee Statements......................................6722
.53 Revocation or Denial of Passport in Case of Certain Tax Delinquencies..............7345
.54 Attorney Fee Awards.........................................................7430
.55 Periodic Payments Received under Qualified Long-Term Care Insurance Contracts or
under Certain Life Insurance Contracts..........................................7702B(d)
.56 Qualified Small Employer Health Reimbursement Arrangement......................9831
SECTION 4. EFFECTIVE DATE
SECTION 5. DRAFTING INFORMATION
SECTION 1. PURPOSE
This revenue procedure sets forth
inflation-adjusted items for 2018 for various
provisions of the Internal Revenue Code of
1986 (Code) as amended as of October 19,
2017. To the extent amendments to the
Code are enacted for 2018 after October 19,
2017, taxpayers should consult additional
guidance to determine whether these adjust-
ments remain applicable for 2018.
SECTION 2. CHANGES
.01 Section 202 of the Disaster Tax
Relief and Airport and Airways Extension
Act of 2017, Pub. L. 115– 63, amended
§ 4261(k)(1)(A)(ii) of the Code (which
governs the period of applicability of
§ 4261(b)(1), (c)(1), and (c)(3)). The ef-
fect of this amendment is to temporarily
extend the passenger air transportation ex-
cise taxes of $3.00 for domestic travel,
$12.00 for international travel, and $6.00
for departures beginning or ending in Alaska
or Hawaii. These excise taxes apply totrans-
portation taken through March 31, 2018.
After this date, the taxes and rates will ex-
pire unless Congress renews them.
.02 Section 18001 of the 21
st
Century
Cures Act, Pub. L. 114 –255, amended
§ 9831 of the Code to add § 9831(d),
Exception For Qualified Small Employer
Health Reimbursement Arrangements. To
qualify as a qualified small employer
health reimbursement arrangement under
§ 9831(d), the arrangement must provide
that the total amount of payments and reim-
bursements for any year cannot exceed
$4,950 ($10,000 for family coverage).These
amounts are adjusted for inflation for a cal-
endar year beginning after 2016.
SECTION 3. 2018 ADJUSTED ITEMS
.01Tax Rate Tables. For taxable years
beginning in 2018, the tax rate tables un-
der § 1 are as follows:
November 6, 2017Bulletin No. 2017–45
490

TABLE 1 — Section 1(a) — Married Individuals Filing Joint Returns and Surviving Spouses
If Taxable Income Is:The Tax Is:
Not over $19,05010% of the taxable income
Over $19,050 but not over $77,400$1,905 plus 15% of the excess over $19,050
Over $77,400 but not over $156,150$10,657.50 plus 25% of the excess over $77,400
Over $156,150 but not over $237,950$30,345 plus 28% of the excess over $156,150
Over $237,950 but not over $424,950$53,249 plus 33% of the excess over $237,950
Over $424,950 but not over $480,050$114,959 plus 35% of the excess over $424,950
Over $480,050$134,244 plus 39.6% of the excess over $480,050
TABLE 2 — Section 1(b) — Heads of Households
If Taxable Income Is:The Tax Is:
Not over $13,60010% of the taxable income
Over $13,600 but not over $51,850$1,360 plus 15% of the excess over $13,600
Over $51,850 but not over $133,850$7,097.50 plus 25% of the excess over $51,850
Over $133,850 but not over $216,700$27,597.50 plus 28% of the excess over $133,850
Over $216,700 but not over $424,950$50,795.50 plus 33% of the excess over $216,700
Over $424,950 not over $453,350$119,518 plus 35% of the excess over $424,950
Over $453,350$129,458 plus 39.6% of the excess over $453,350
TABLE 3 — Section 1(c) — Unmarried Individuals (other than Surviving Spouses and Heads of Households)
If Taxable Income Is:The Tax Is:
Not over $9,52510% of the taxable income
Over $9,525 but not over $38,700$952.50 plus 15% of the excess over $9,525
Over $38,700 but not over $93,700$5,328.75 plus 25% of the excess over $38,700
Over $93,700 but not over $195,450$19,078.75 plus 28% of the excess over $93,700
Over $195,450 but not over $424,950$47,568.75 plus 33% of the excess over $195,450
Over $424,950 not over $426,700$123,303.75 plus 35% of the excess over $424,950
Over $426,700$123,916.25 plus 39.6% of the excess over $426,700
TABLE 4 — Section 1(d) — Married Individuals Filing Separate Returns
If Taxable Income Is:The Tax Is:
Not over $9,52510% of the taxable income
Over $9,525 but not over $38,700$952.50 plus 15% of the excess over $9,525
Over $38,700 but not over $78,075$5,328.75 plus 25% of the excess over $38,700
Over $78,075 but not over $118,975$15,172.50 plus 28% of the excess over $78,075
Over $118,975 but not over $212,475$26,624.50 plus 33% of the excess over $118,975
Over $212,475 not over $240,025$57,479.50 plus 35% of the excess over $212,475
Over $240,025$67,122 plus 39.6% of the excess over $240,025
TABLE 5 — Section 1(e) — Estates and Trusts
If Taxable Income Is:The Tax Is:
Not over $2,60015% of the taxable income
Over $2,600 but not over $6,100$390 plus 25% of the excess over $2,600
Over $6,100 but not over $9,300$1,265 plus 28% of the excess over $6,100
Over $9,300 but not over $12,700$2,161 plus 33% of the excess over $9,300
Over $12,700$3,283 plus 39.6% of the excess over $12,700
Bulletin No. 2017–45November 6, 2017
491

.02Unearned Income of Minor Children
Taxed as if Parent’s Income (the “Kiddie
Tax”). For taxable yearsbeginning in
2018, the amount in § 1(g)(4)(A)(ii)(I),
which is used to reduce the net unearned
income reported on the child’s return that
is subject to the “kiddie tax,” is $1,050.
This $1,050 amount is the same as the
amount provided in § 63(c)(5)(A), as ad-
justed for inflation. The same $1,050
amount is used for purposes of § 1(g)(7)
(that is, to determine whether a parent may
elect to include a child’s gross income in the
parent’s gross income and to calculate the
“kiddie tax”). For example, one of the re-
quirements for the parental election is that a
child’s gross income is more than the
amount referenced in § 1(g)(4)(A)(ii)(I) but
less than 10 times that amount; thus, a
child’s gross income for 2018 must be more
than $1,050 but less than $10,500.
.03Adoption Credit. For taxable years
beginning in 2018, under § 23(a)(3) the
credit allowed for an adoption of a child
with special needs is $13,840. For taxable
years beginning in 2018, under § 23(b)(1)
the maximum credit allowed for other
adoptions is the amount of qualified adop-
tion expenses up to $13,840. The avail-
able adoption credit begins to phase out
under § 23(b)(2)(A) for taxpayers with
modified adjusted gross income in excess
of $207,580 and is completely phased out
for taxpayers with modified adjusted gross
income of $247,580 or more. (See section
3.19 of this revenue procedure for the
adjusted items relating to adoption assis-
tance programs.)
.04Lifetime Learning Credit. For tax-
able years beginning in 2018, a taxpayer’s
modified adjusted gross income in excess
of $57,000 ($114,000 for a joint return)
is used todetermine the reduction under
§ 25A(d)(2) in the amount of the Lifetime
Learning Credit otherwise allowable under
§ 25A(a)(2).
.05Earned Income Credit.
(1)In general. For taxable years be-
ginning in 2018, the following amounts
are used to determine the earned income
credit under § 32(b). The “earned in-
come amount” is the amount of earned
income at orabove which the maximum
amount of the earned income credit is al-
lowed. The “threshold phaseout amount” is
the amount of adjusted grossincome (or, if
greater, earned income) above which the
maximum amount of the credit begins to
phase out. The “completed phaseout
amount” is the amount of adjusted gross
income (or, if greater, earned income) at
or above which no credit is allowed. The
threshold phaseout amounts and the com-
pleted phaseout amounts shown in the ta-
ble below for married taxpayers filing a
joint return include the increase provided
in § 32(b)(3)(B)(i), as adjusted for infla-
tion for taxable years beginning in 2018.
Number of Qualifying Children
ItemOneTwoThree or MoreNone
Earned Income Amount$10,200$14,320$14,320$6,800
Maximum Amount of Credit$3,468$5,728$6,444$520
Threshold Phaseout Amount (Single, Surviving Spouse,
or Head of Household)
$18,700$18,700$18,700$8,510
Completed Phaseout Amount (Single, Surviving Spouse,
or Head of Household)
$40,402$45,898$49,298$15,310
Threshold Phaseout Amount (Married Filing Jointly)$24,400$24,400$24,400$14,200
Completed Phaseout Amount (Married Filing Jointly)$46,102$51,598$54,998$21,000
The instructions for the Form 1040 se-
ries provide tables showing the amount of
the earned income credit for each type of
taxpayer.
(2)Excessive Investment Income. For
taxable years beginning in 2018, the
earned income tax credit is not allowed
under § 32(i)(1) if the aggregate amount
of certain investment income exceeds
$3,500.
.06Refundable Credit for Coverage un-
der a Qualified Health Plan. For taxable
years beginning in 2018, the limitation on
tax imposed under § 36B(f)(2)(B) for excess
advance credit payments is determined us-
ing the following table:
If the household income (expressed
as a percent of poverty line) is:
The limitation amount for unmarried individuals (other
than surviving spouses and heads of household) is:
The limitation amount for
all other taxpayers is:
Less than 200%$300$600
At least 200% but less than 300%$775$1,550
At least 300% but less than 400%$1,300$2,600
.07Rehabilitation Expenditures Treated
as Separate New Building. For calendar
year 2018, the per low-income unit qualified
basis amount under § 42(e)(3)(A)(ii)(II) is
$6,800.
.08Low-Income Housing Credit. For
calendar year 2018, the amount used un-
der § 42(h)(3)(C)(ii) to calculate the State
November 6, 2017Bulletin No. 2017–45
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housing credit ceiling for the low-income
housing credit is the greater of (1) $2.40
multiplied by the State population, or (2)
$2,765,000.
.09Employee Health Insurance Expense
of Small Employers. For taxable years be-
ginning in 2018, the dollar amount in effect
under § 45R(d)(3)(B) is $26,700. This
amount is used under § 45R(c) for limiting
the small employer health insurance credit
and under § 45R(d)(1)(B) for determining
who is an eligible small employer for pur-
poses of the credit.
.10Exemption Amounts for Alternative
Minimum Tax. For taxable years begin-
ning in 2018, the exemption amounts un-
der § 55(d)(1) are:
Joint Returns or Surviving Spouses$86,200
Unmarried Individuals (other than Surviving Spouses)$55,400
Married Individuals Filing Separate Returns$43,100
Estates and Trusts$24,600
For taxable years beginning in 2018,
under § 55(b)(1), the excess taxable
income above which the 28 percent tax
rate applies is:
Married Individuals Filing Separate Returns$95,750
Joint Returns, Unmarried Individuals (other than surviving spouses), and Estates and Trusts$191,500
For taxable years beginning in 2018,
the amounts used under § 55(d)(3) to
determine the phaseout of the exemp-
tion amounts are:
Joint Returns or Surviving Spouses$164,100
Unmarried Individuals (other than Surviving Spouses)$123,100
Married Individuals Filing Separate Returns and Estates and Trusts$82,050
.11Alternative Minimum Tax Exemption
for a Child Subject to the “Kiddie Tax.” For
taxable years beginning in 2018, for a child
to whom the § 1(g) “kiddie tax” applies, the
exemption amount under §§ 55 and 59(j) for
purposes of the alternative minimum tax
under § 55 may not exceed the sum of (1)
the child’s earned income for the taxable
year, plus (2) $7,650.
.12Certain Expenses of Elementary
and Secondary School Teachers. For tax-
able years beginning in 2018, under
§ 62(a)(2)(D) the amount of the deduction
allowed under § 162 which consists of
expenses paid or incurred by an eligible
educator in connection with books, sup-
plies (other than nonathletic supplies for
courses of instruction in health or physical
education), computer equipment (includ-
ing related software and services) and
other equipment, and supplementary ma-
terials used by the eligible educator in the
classroom is $250.
.13Transportation Mainline Pipeline
Construction Industry Optional Expense
Substantiation Rules for Payments to Em-
ployees under Accountable Plans. For cal-
endar year 2018, an eligible employer
may pay certain welders and heavy equip-
ment mechanics an amount of up to $18
per hour for rig-related expenses that are
deemed substantiated under an account-
able plan if paid in accordance with Rev.
Proc. 2002– 41, 2002–1 C.B. 1098. If the
employer provides fuel or otherwise reim-
burses fuel expenses, up to $11 per hour is
deemed substantiated if paid under Rev.
Proc. 2002– 41.
.14Standard Deduction.
(1)In general. For taxable years begin-
ning in 2018, the standard deduction
amounts under § 63(c)(2) are as follows:
Filing StatusStandard Deduction
Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(a))$13,000
Heads of Households (§ 1(b))$9,550
Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(c))$6,500
Married Individuals Filing Separate Returns (§ 1(d))$6,500
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(2)Dependent. For taxable years be-
ginning in 2018, the standard deduction
amount under § 63(c)(5) for an individual
who may be claimed as a dependent by
another taxpayer cannot exceed the greater
of (1) $1,050, or (2) the sum of $350 and the
individual’s earned income.
(3)Aged or blind. For taxable years
beginning in 2018, the additional standard
deduction amount under § 63(f) for the
aged or the blind is $1,300. The additional
standard deduction amount is increased to
$1,600 if the individual is also unmarried
and not a surviving spouse.
.15Overall Limitation on Itemized De-
ductions. For taxable years beginning in
2018, the applicable amounts under § 68(b)
are $320,000 in the case of a joint return
or a surviving spouse, $293,350 in the case
of a head of household, $266,700 in the case
of an individual who is not married and who
is not a surviving spouse or head of house-
hold, and $160,000 in the case of a married
individual filing a separate return.
.16Cafeteria Plans. For the taxable
years beginning in 2018, the dollar limi-
tation under § 125(i) on voluntary em-
ployee salary reductions for contributions
to health flexible spending arrangements
is $2,650.
.17Qualified Transportation Fringe
Benefit. For taxable years beginning in 2018,
the monthly limitation under §132(f)(2)(A)
regarding the aggregate fringe benefit exclu-
sion amount for transportation in a com-
muter highway vehicle and any transit pass
is $260. The monthly limitation under
§ 132(f)(2)(B) regarding the fringe benefit
exclusion amount for qualified parking is
$260.
.18Income from United States Savings
Bonds for Taxpayers Who Pay Qualified
Higher Education Expenses. For taxable
years beginning in 2018, the exclusion
under § 135, regarding income from
United States savings bonds for taxpayers
who pay qualified higher education ex-
penses, begins to phase out for modified
adjusted gross income above $119,550 for
joint returns and $79,700 for all other re-
turns. The exclusion is completely phased
out for modified adjusted gross income of
$149,550 or more for joint returns and
$94,700 or more for all other returns.
.19Adoption Assistance Programs. For
taxable years beginning in 2018, under
§ 137(a)(2), the amount that can be ex-
cluded from an employee’s gross income
for the adoption of a child with special
needs is $13,840. For taxable years begin-
ning in 2018, under § 137(b)(1) the max-
imum amount that can be excluded from
an employee’s gross income for the
amounts paid or expenses incurred by an
employer for qualified adoption expenses
furnished pursuant to an adoption assis-
tance program for other adoptions by the
employee is $13,840. The amount exclud-
able from an employee’s gross income
begins to phase out under § 137(b)(2)(A)
for taxpayers with modified adjusted gross
income in excess of $207,580 and is com-
pletely phased out for taxpayers with mod-
ified adjusted gross income of $247,580 or
more. (See section 3.03 of this revenue pro-
cedure for the adjusted items relating to the
adoption credit.)
.20Private Activity Bonds Volume
Cap. For calendar year 2018, the amounts
used under § 146(d) to calculate the State
ceiling for the volume cap for private ac-
tivity bonds is the greater of (1) $105
multiplied by the State population, or (2)
$311,375,000.
.21Loan Limits on Agricultural Bonds.
For calendar year 2018, the loan limit amount
on agricultural bonds under § 147(c)(2)(A) for
first-time farmers is $534,600.
.22General Arbitrage Rebate Rules.
For bond years ending in 2018, the amount
of the computation credit determined under
the permission to rely on § 1.148 –3(d)(4) of
the proposed Income Tax Regulations is
$1,700.
.23Safe Harbor Rules for Broker
Commissions on Guaranteed Investment
Contracts or Investments Purchased for
a Yield Restricted Defeasance Escrow.
For calendar year 2018, under § 1.148 –
5(e)(2)(iii)(B)(1), a broker’s commission
or similar fee for the acquisition of a guar-
anteed investment contract or investments
purchased for a yield restricted defeasance
escrow is reasonable if (1) the amount of
the fee that the issuer treats as a qualified
administrative cost does not exceed the
lesser of (A) $40,000, and (B) 0.2 percent
of the computational base (as defined in
§ 1.148 –5(e)(2)(iii)(B)(2)) or, if more,
$4,000; and (2) the issuer does not treat
more than $113,000 in brokers’ commis-
sions or similar fees as qualified adminis-
trative costs for all guaranteed investment
contracts and investments for yield re-
stricted defeasance escrows purchased with
gross proceeds of the issue.
.24Personal Exemption.
(1) For taxable years beginning in
2018, the personal exemption amount un-
der § 151(d) is $4,150.
(2)Phaseout. For taxable years begin-
ning in 2018, the personal exemption
phases out for taxpayers with the follow-
ing adjusted gross income amounts:
Filing Status
AGI – Beginning
of Phaseout
AGI – Completed
Phaseout
Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(a))$320,000$442,500
Heads of Households (§ 1(b))$293,350$415,850
Unmarried Individuals (other than Surviving Spouses and Heads of
Households) (§ 1(c))
$266,700$389,200
Married Individuals Filing Separate Returns (§ 1(d))$160,000$221,250
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.25Election to Expense Certain Depre-
ciable Assets. For taxable years beginning
in 2018, under § 179(b)(1), the aggregate
cost of any § 179 property that a taxpayer
elects to treat as an expense cannot exceed
$520,000. Under § 179(b)(2), the $520,000
limitation is reduced (but notbelow zero) by
the amount the cost of § 179 property placed
in service during the 2018 taxable year ex-
ceeds $2,070,000.
.26Eligible Long-Term Care Premi-
ums. For taxable years beginning in 2018,
the limitations under § 213(d)(10), regard-
ing eligible long-term care premiums in-
cludible in the term “medical care,” are as
follows:
Attained Age Before the Close of the Taxable YearLimitation on Premiums
40 or less$420
More than 40 but not more than 50$780
More than 50 but not more than 60$1,560
More than 60 but not more than 70$4,160
More than 70$5,200
.27Medical Savings Accounts.
(1)Self-only coverage. For taxable
years beginning in 2018, the term “high
deductible health plan” as defined in
§ 220(c)(2)(A) means, for self-only cov-
erage, ahealth plan that has an annual de-
ductible that is not less than $2,300 and not
more than $3,450, and under which the an-
nual out-of-pocket expenses required to be
paid (other than for premiums) for covered
benefits do not exceed $4,600.
(2)Family coverage. For taxable years
beginning in 2018, the term “high deduct-
ible health plan” means, for family cover-
age, a health plan that has an annual de-
ductible that is not less than $4,600 and
not more than $6,850, and under which
the annual out-of-pocket expenses re-
quired to be paid (other than for premi-
ums) for covered benefits do not exceed
$8,400.
.28Interest on Education Loans. For
taxable years beginning in 2018, the $2,500
maximum deduction for interest paid on
qualified education loans under § 221begins
to phase out under § 221(b)(2)(B) for taxpay-
ers withmodified adjusted gross income in
excess of $65,000 ($135,000 for joint re-
turns), and is completely phased out for
taxpayers with modified adjusted gross in-
come of $80,000 or more ($165,000 or
more for joint returns).
.29Treatment of Dues Paid to Agricul-
tural or Horticultural Organizations. For
taxable years beginning in 2018, the lim-
itation under § 512(d)(1), regarding the
exemption of annual dues required to be
paid by a member to an agricultural or
horticultural organization, is $166.
.30Insubstantial Benefit Limitations
for Contributions Associated with Chari-
table Fund-Raising Campaigns.
(1)Low cost article. For taxable years
beginning in 2018, for purposes of defin-
ing the term “unrelated trade or business”
for certain exempt organizations under
§ 513(h)(2), “low cost articles” are articles
costing $10.90 or less.
(2)Other insubstantial benefits. For
taxable years beginning in 2018, under
§ 170, the $5, $25, and $50 guidelines in
section 3 of Rev. Proc. 90 –12, 1990 –1
C.B. 471 (as amplified by Rev. Proc. 92–
49, 1992–1 C.B. 987, and modified by
Rev. Proc. 92–102, 1992–2 C.B. 579), for
the value of insubstantial benefits that
may be received by a donor in return for a
contribution, without causing the contri-
bution to fail to be fully deductible, are
$10.90, $54.50, and $109, respectively.
.31Tax on Insurance Companies
Other than Life Insurance Companies.
For taxable years beginning in 2018,
under § 831(b)(2)(A)(i) the amount of
the limit on net written premiums or
direct written premiums (whichever is
greater) is $2,300,000 to elect the alterna-
tive tax for certain small companies under
§ 831(b)(1) to be taxed only on taxable
investment income.
.32Expatriation to Avoid Tax. For cal-
endar year 2018, under § 877A(g)(1)(A),
unless an exception under § 877A(g)(1)(B)
applies, an individual is acovered expatriate
if the individual’s “average annual net in-
come tax” under § 877(a)(2)(A) for the five
taxable years ending before the expatriation
date is more than $165,000.
.33Tax Responsibilities of Expatria-
tion. For taxable years beginning in 2018,
the amount that would be includible in the
gross income of a covered expatriate by
reason of § 877A(a)(1) is reduced (but not
below zero) by $713,000.
.34Foreign Earned Income Exclusion.
For taxable years beginning in 2018, the
foreign earned income exclusion amount
under § 911(b)(2)(D)(i) is $104,100.
.35Unified Credit Against Estate Tax.
For an estate of any decedent dying in
calendar year 2018, the basic exclusion
amount is $5,600,000 for determining the
amount of the unified credit against estate
tax under § 2010.
.36Valuation of Qualified Real Prop-
erty in Decedent’s Gross Estate. For an
estate of a decedent dying in calendar year
2018, if the executor elects to use the
special use valuation method under
§ 2032A for qualified real property, the
aggregate decrease in the value of quali-
fied real property resulting from electing
to use § 2032A for purposes of the estate
tax cannot exceed $1,140,000.
.37Annual Exclusion for Gifts.
(1) For calendar year 2018, the first
$15,000 of gifts to any person (other than
gifts of future interests in property) are not
included in the total amount of taxable
gifts under § 2503 made during that year.
(2) For calendar year 2018, the first
$152,000 of gifts to a spouse who is not a
citizen of the United States (other than
gifts of future interests in property) are not
included in the total amount of taxable
gifts under §§ 2503 and 2523(i)(2) made
during that year.
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.38Tax on Arrow Shafts. For calendar
year 2018, the tax imposed under
§ 4161(b)(2)(A) on the first sale by the
manufacturer, producer, or importer of
any shaft of a type used in the manufac-
ture of certain arrows is $0.51 per shaft.
.39Passenger Air Transportation Ex-
cise Tax. For calendar year 2018, the tax
under § 4261(b)(1) on the amount paid for
each domestic segment of taxable air
transportation is $4.20. For calendar year
2018, the tax under § 4261(c)(1) on any
amount paid (whether within or without
the United States) for any international air
transportation, if the transportation begins
or ends in the United States, generally is
$18.30. Under § 4261(c)(3), however, a
lower amount applies under § 4261(c)(1)
to a domestic segment beginning or end-
ing in Alaska or Hawaii, and the tax ap-
plies only to departures. For calendar year
2018, the rate is $9.20.
.40Requirement to Maintain Minimum
Essential Coverage. For calendar year
2018, the applicable dollar amount used to
determine the penalty under § 5000A(c)
for failure to maintain minimum essential
coverage is $695.
.41Reporting Exception for Certain
Exempt Organizations with Nondeduct-
ible Lobbying Expenditures. For taxable
years beginning in 2018, the annual per
person, family, or entity dues limitation to
qualify for the reporting exception under
§ 6033(e)(3) (and section 5.05 of Rev.
Proc. 98 –19, 1998 –1 C.B. 547), regard-
ing certain exempt organizations with
nondeductible lobbying expenditures, is
$115 or less.
.42Notice of Large Gifts Received
from Foreign Persons. For taxable years
beginning in 2018, § 6039F authorizes the
Treasury Department and the Internal
Revenue Service to require recipients of
gifts from certain foreign persons to report
these gifts if the aggregate value of gifts
received in the taxable year exceeds
$16,111.
.43Persons Against Whom a Federal
Tax Lien Is Not Valid. For calendar year
2018, a federal tax lien is not valid against
(1) certain purchasers under § 6323(b)(4)
who purchased personal property in a ca-
sual sale for less than $1,570, or (2) a
mechanic’s lienor under § 6323(b)(7) who
repaired or improved certain residential
property if the contract price with the
owner is not more than $7,840.
.44Property Exempt from Levy. For
calendar year 2018, the value of property
exempt from levy under § 6334(a)(2)
(fuel, provisions, furniture, and other
household personal effects, as well as arms
for personal use, livestock, and poultry) can-
not exceed $9,380. The value of property
exempt from levy under § 6334(a)(3)
(books and tools necessary for the trade,
business, or profession of the taxpayer) can-
not exceed $4,690.
.45Interest on a Certain Portion of the
Estate Tax Payable in Installments. For an
estate of a decedent dying in calendar year
2018, the dollar amount used to determine
the “2-percent portion” (for purposes of
calculating interest under § 6601(j)) of the
estate tax extended as provided in § 6166
is $1,520,000.
.46Failure to File Tax Return.Inthe
case of any return required to be filed in
2019, the amount of the addition to tax
under § 6651(a) for failure to file a tax
return within 60 days of the due date of
such return (determined with regard to
any extensions of time for filing) shall not
be less than the lesser of $215 or 100
percent of the amount required to be
shown as tax on such returns.
.47Failure to File Certain Information
Returns, Registration Statements, etc. For
returns required to be filed in 2019, the
penalty amounts under § 6652(c) are:
(1) for failure to file a return required
under § 6033(a)(1) (relating to returns by
exempt organization) or § 6012(a)(6) (relat-
ing to returns by political organizations):
Scenario
Daily
PenaltyMaximum Penalty
Organization (§ 6652(c)(1)(A))$20Lessor of $10,000 or 5% of gross
receipts of the organization for
the year.
Organization with gross receipts exceeding $1,049,000 (§ 6652(c)(1)(A))$100$52,000
Managers (§ 6652(c)(1)(B))$10$5,000
Public inspection of annual returns and reports (§ 6652(c)(1)(C))$20$10,000
Public inspection of applications for exemption and notice of status
(§ 6652(c)(1)(D))
$20No Limits
(2) for failure to file a return required
under § 6034 (relating to returns by cer-
tain trust) or § 6043(b) (relating to termi-
nations, etc., of exempt organizations):
ScenarioDaily PenaltyMaximum Penalty
Organization or trust (§ 6652(c)(2)(A))$10$5,000
Managers (§ 6652(c)(2)(B))$10$5,000
Split-Interest Trust (§ 6652(c)(2)(C)(ii))$20$10,000
Any trust with gross receipts exceeding $262,000 (§ 6652(c)(2)(C)(ii))$100$52,000
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(3) for failure to file a disclosure re-
quired under § 6033(a)(2):
ScenarioDaily PenaltyMaximum Penalty
Tax–exempt entity (§ 6652(c)(3)(A))$100$52,000
Failure to comply with written demand (§ 6652(c)(3)(B)(ii))$100$10,000
.48Other Assessable Penalties With
Respect to the Preparation of Tax Returns
for Other Persons. In the case of any
failure relating to a return or claim for
refund filed in 2019, the penalty amounts
under § 6695 are:
Scenario
Per Return or
Claim for Refund
Maximum
Penalty
Failure to furnish copy to taxpayer (§ 6695(a))$50$26,000
Failure to sign return (§ 6695(b))$50$26,000
Failure to furnish identifying number (§ 6695(c))$50$26,000
Failure to retain copy or list (§ 6695(d))$50$26,000
Failure to file correct information returns (§ 6695(e))$50 per return and
item in return
$26,000
Negotiation of check (§ 6695(f))$520 per checkNo limit
Failure to be diligent in determining eligibility for child tax credit,
American opportunity tax credit, and earned income credit (§ 6695(g))
$520 per returnNo limit
.49Failure to File Partnership Return.
In the case of any return required to be
filed in 2019, the dollar amount used to
determine amount of the penalty under
§ 6698(b)(1) is $200.
.50Failure to File S Corporation Re-
turn. In the case of any return required to
be filed in 2019, the dollar amount used to
determine amount of the penalty under
§ 6699(b)(1) is $200.
.51Failure to File Correct Information
Returns. In the case of any failure relating
to a return required to be filed in 2019, the
penalty amounts under § 6721 are:
(1) for persons with average annual gross
receipts for the most recent three taxable
years of more than $5,000,000, for failure to
file correct information returns are:
ScenarioPenalty Per ReturnCalendar Year Maximum
General Rule (§ 6721(a)(1))$270$3,282,500
Corrected on or before 30 days after required filing date (§ 6721(b)(1))$50$547,000
Corrected after 30
th
day but on or before August 1 (§ 6721(b)(2))
$100$1,641,000
(2) for persons with average annual gross
receipts for the most recent three taxable
years of $5,000,000 or less, for failure to file
correct information returns are:
ScenarioPenalty Per Return Calendar Year Maximum
General Rule (§ 6721(d)(1)(A))$270$1,094,000
Corrected on or before 30 days after required filing date (§ 6721(d)(1)(B))$50$191,000
Corrected after 30
th
day but on or before August 1 (§ 6721(d)(1)(C))
$100$547,000
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(3) for failure to file correct informa-
tion returns due to intentional disregard of
the filing requirement (or the correct in-
formation reporting requirement) are:
ScenarioPenalty Per ReturnCalendar Year Maximum
Return other than a return required to be
filed under §§ 6045(a), 6041A(b), 6050H,
6050I, 6050J, 6050K, or 6050L
(§ 6721(e)(2)(A))
Greater of (i) $540, or (ii) 10% of aggregate
amount of items required to be reported
correctly
No limit
Return required to be filed under
§§ 6045(a), 6050K, or 6050L
(§ 6721(e)(2)(B))
Greater of (i) $540, or (ii) 5% of aggregate
amount of items required to be reported
correctly
No limit
Return required to be filed under § 6050I(a)
(§ 6721(e)(2)(C))
Greater of (i) $27,350, or (ii) amount of
cash received up to $109,000
No limit
Return required to be filed under § 6050V
(§ 6721(e)(2)(D))
Greater of (i) $540, or (ii) 10% of the value
of the benefit of any contract with respect
to which information is required to be
included on the return
No limit
.52Failure to Furnish Correct Payee
Statements. In the case of any failure relat-
ing to a statement required to be furnished in
2019, the penalty amounts under § 6722 are:
(1) for persons with average annual gross
receipts for the most recent three taxable
years of more than $5,000,000, for failure to
file correct information returns are:
ScenarioPenalty Per ReturnCalendar Year Maximum
General Rule (§ 6722(a)(1))$270$3,282,500
Corrected on or before 30 days after required filing date (§ 6722(b)(1))$50$547,000
Corrected after 30
th
day but on or before August 1 (§ 6722(b)(2))
$100$1,641,000
(2) for persons with average annual
gross receipts for the most recent 3 tax-
able years of $5,000,000 or less, for fail-
ure to file correct information returns are:
ScenarioPenalty Per Return Calendar Year Maximum
General Rule (§ 6722(d)(1)(A))$270$1,094,000
Corrected on or before 30 days after required filing date (§ 6722(d)(1)(B))$50$191,000
Corrected after 30
th
day but on or before August 1 (§ 6722(d)(1)(C))
$100$547,000
(3) for failure to file correct payee state-
ments due to intentional disregard of the
requirement to furnish a payee statement (or
the correct information reporting require-
ment) are:
ScenarioPenalty Per Return
Calendar Year
Maximum
Statement other than a statement required under §§ 6045(b),
6041A(e) (in respect of a return required under § 6041A(b)),
6050H(d), 6050J(e), 6050K(b), or 6050L(c) (§ 6722(e)(2)(A))
Greater of (i) $540, or (ii) 10% of
aggregate amount of items required
to be reported correctly
No limit
Payee statement required under §§ 6045(b), 6050K(b), or 6050L(c)
(§ 6722(e)(2)(B))
Greater of (i) $540, or (ii) 5% of
aggregate amount of items required
to be reported correctly
No limit
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.53Revocation or Denial of Passport
in Case of Certain Tax Delinquencies. For
calendar year 2018, the amount of a seri-
ous delinquent tax debt under § 7345 is
$51,000.
.54Attorney Fee Awards. For fees in-
curred in calendar year 2018, the attorney fee
award limitation under § 7430(c)(1)(B)(iii) is
$200 per hour.
.55Periodic Payments Received under
Qualified Long-Term Care Insurance
Contracts or under Certain Life Insurance
Contracts. For calendar year 2018, the
stated dollar amount of the per diem lim-
itation under § 7702B(d)(4), regarding pe-
riodic payments received under a qualified
long-term care insurance contract or peri-
odic payments received under a life insur-
ance contract that are treated as paid by
reason of the death of a chronically ill
individual, is $360.
.56Qualified Small Employer Health
Reimbursement Arrangement. For tax
years beginning in 2018, to qualify as a
qualified small employer health reim-
bursement arrangement under § 9831(d),
the arrangement must provide that the to-
tal amount of payments and reimburse-
ments for any year cannot exceed $5,050
($10,250 for family coverage).
SECTION 4. EFFECTIVE DATE
.01General Rule. Except as provided
in section 4.02, this revenue procedure
applies to taxable years beginning in
2018.
.02Calendar Year Rule. This revenue
procedure applies to transactions or events
occurring in calendar year 2018 for pur-
poses of sections 3.07 (rehabilitation ex-
penditures treated as separate new build-
ing), 3.08 (low-income housing credit),
3.13 (transportation mainline pipeline
construction industry optional expense
substantiation rules for payments to em-
ployees under accountable plans), 3.20
(private activity bonds volume cap), 3.21
(loan limits on agricultural bonds), 3.22
(general arbitrage rebate rules), 3.23 (safe
harbor rules for broker commissions on
guaranteed investment contracts or invest-
ments purchased for a yield restricted de-
feasance escrow), 3.32 (expatriation to
avoid taxes), 3.35 (unified credit against
estate tax), 3.36 (valuation of qualified
real property in decedent’s gross estate),
3.37 (annual exclusion for gifts), 3.38 (tax
on arrow shafts), 3.39 (passenger air
transportation excise tax), 3.40 (require-
ment to maintain minimum essential cov-
erage), 3.43 (persons against whom a fed-
eral tax lien is not valid), 3.44 (property
exempt from levy), 3.45 (interest on a
certain portion of the estate tax payable in
installments), 3.53 (revocation or denial
of passport in case of certain tax delin-
quencies), 3.54 (attorney fee awards), and
3.55 (periodic payments received under
qualified long-term care insurance con-
tracts or under certain life insurance con-
tracts).
SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue
procedure is William Ruane of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue procedure, contact
Mr. Ruane at (202) 317-4718 (not a toll-
free number).
Bulletin No. 2017–45November 6, 2017
499

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. 2017–45November 6, 2017
i

Numerical Finding List
1
Bulletin 2017–27 through 2017– 45
Action on Decision:
2017-5, 2017-27 I.R.B.1
2017-6, 2017-33 I.R.B.194
2017-7, 2017-42 I.R.B.311
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
2017-11, 2017-39 I.R.B.255
2017-12, 2017-38 I.R.B.238
2017-13, 2017-40 I.R.B.271
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
2017-45, 2017-38 I.R.B.232
2017-46, 2017-41 I.R.B.275
2017-47, 2017-38 I.R.B.232
2017-48, 2017-39 I.R.B.254
2017-49, 2017-40 I.R.B.258
2017-50, 2017-41 I.R.B.280
2017-51, 2017-40 I.R.B.260
2017-52, 2017-40 I.R.B.262
2017-53, 2017-42 I.R.B.318
2017-54, 2017-42 I.R.B.321
2017-55, 2017-42 I.R.B.324
2017-56, 2017-43 I.R.B.365
2017-57, 2017-42 I.R.B.324
2017-58, 2017-42 I.R.B.326
2017-59, 2017-45 I.R.B.484
2017-60, 2017-43 I.R.B.365
2017-61, 2017-43 I.R.B.371
2017-62, 2017-44 I.R.B.460
2017-63, 2017-44 I.R.B.460
2017-64, 2017-45 I.R.B.486
2017-66, 2017-45 I.R.B.487
Proposed Regulations:
REG-128841-07, 2017-42 I.R.B.327
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
REG-105004-16, 2017-41 I.R.B.295
REG-125374-16, 2017-41 I.R.B.300
Proposed Regulations:—Continued
REG-115615-17, 2017-44 I.R.B.463
REG-129631-17, 2017-44 I.R.B.464
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
2017-46, 2017-43 I.R.B.372
2017-47, 2017-38 I.R.B.233
2017-48, 2017-36 I.R.B.229
2017-50, 2017-37 I.R.B.230
2017-52, 2017-41 I.R.B.283
2017-53, 2017-40 I.R.B.263
2017-54, 2017-42 I.R.B.336
2017-55, 2017-43 I.R.B.373
2017-56, 2017-44 I.R.B.465
2017-57, 2017-44 I.R.B.474
2017-58, 2017-45 I.R.B.489
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
2017-18, 2017-39 I.R.B.239
2017-19, 2017-40 I.R.B.257
2017-20, 2017-41 I.R.B.273
2017-21, 2017-45 I.R.B.482
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
9824, 2017-42 I.R.B.312
9827, 2017-44 I.R.B.382
9828, 2017-44 I.R.B.431
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.
November 6, 2017Bulletin No. 2017–45
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2017–27 through 2017– 45
Notices:
2015-77
Amplified by
Notice 2017-40, 2017-32 I.R.B.190
2017-10
Modified by
Notice 2017-58, 2017-42 I.R.B.326
2017-29
Modified by
Notice 2017-58, 2017-42 I.R.B.326
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. 2017–45November 6, 2017
iii

INTERNAL REVENUE BULLETIN
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