Internal Revenue Bulletin 2023-13 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 2023–13
March 27, 2023
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.
EMPLOYEE PLANS
Notice 2023-23, page 571.
Notice 2023-23 provides guidance to financial institutions
on reporting required minimum distributions (RMD) for
2023 after the amendment to section 401(a)(9) of the Inter-
nal Revenue Code made by Section 107, Division T of the
Consolidated Appropriations Act, 2023, P.L. 117-328 (the
SECURE 2.0 Act). Pursuant to Notice 2002-27, if an IRA
owner has an RMD due for 2023, the financial institution
that maintains the IRA must provide a statement by January
31, 2023, informing the IRA owner of the amount due (or
an offer to calculate such amount) and the date by which
the RMD must be distributed. Prior to the SECURE 2.0 Act,
this statement would have been required for all IRA owners
who will attain age 72 in 2023 (the year for which the first
RMD is due). However, after the Act, the first RMD will be
due for the year in which the IRA owner attains age 73. This
notice provides that if the RMD statement is provided in
the year in which the IRA owner attains age 72, the IRS will
not consider such statement to be incorrect provided the
financial institution notifies the IRA owner no later than April
28, 2023, that no RMD is due for 2023.
EMPLOYMENT TAX
Rev. Proc. 2023-13, page 581.
General Rules and Specifications for Substitute Form 941,
Schedule B (Form 941), Schedule D (Form 941), Schedule
R (Form 941), and Form 8974.
This revenue procedure provides general rules and spec-
ifications from the IRS for paper and computer-generated
substitutes for Form 941; Schedule B (Form 941); Sched-
ule D (Form 941); Schedule R (Form 941); and Form 8974.
This revenue procedure supersedes Revenue Procedure
2022-15, 2022-13 I.R.B. 908.
Rev. Proc. 2023-18, page 605.
This revenue procedure modifies and supersedes both Rev.
Proc. 2016-33 and Rev. Proc. 2017-14. It addresses the
procedures for applying to be certified as a Certified Pro-
fessional Employer Organization (CPEO), the requirements
for a CPEO to remain certified, and the procedures relating
to suspension and revocation of CPEO certification.
INCOME TAX
Notice 2023-24, page 571.
This notice provides the general rules for determining the
credit for production from advanced nuclear power facilities
under § 45J (§ 45J credit) and that the amount of the unuti-
lized national megawatt capacity limitation (NMCL) available
for allocation is 6,000 megawatts. This notice also pro-
vides the procedures for taxpayers to apply for allocations
of, and that the Internal Revenue Service (IRS) will use to al-
locate, the unutilized NMCL to facilities that the Department
of Energy previously certified as an “advanced nuclear facil-
ity” under Notice 2013-68, 2013-46 I.R.B. 501. In addition,
the notice provides the procedures for a “qualified public
entity” to elect to transfer all or a portion of the § 45J credit
to an “eligible project partner.” Finally, the notice requests
comments on issues impacting the § 45J credit.
Notice 2023-26, page 577.
Notice 2023-26 provides for adjustments to the limitation
on housing expenses for purposes of section 911 of the
Internal Revenue Code for the 2023 tax year. These adjust-
ments are made on the basis of geographic differences in
housing costs relative to housing costs in the United States.
If the limitation on housing expenses is higher for the 2023
tax year than the adjusted limitations on housing expenses
provided in Notice 2022-10, qualified taxpayers may apply
the adjusted limitations in this notice for the 2023 tax year
to their 2022 tax year.
Finding Lists begin on page ii.

Rev. Proc. 2023-17, page 604.
This revenue procedure provides indexing adjustments for
the applicable dollar amounts under section 4980H(c)(1) and
(b)(1) of the Internal Revenue Code. These indexed amounts
are used to calculate the employer shared responsibility pay-
ments under section 4980H(a) and (b)(1), respectively.
Rev. Proc. 2023-19, page 626.
Generally, U.S. citizens or resident aliens living and working
abroad are taxed on their worldwide income. However, if
their tax home is in a foreign country and they meet either
the bona fide residence test or the physical presence test,
they can choose to exclude from their income a limited
amount of their foreign earned income (up to $120,000 for
2022). Both the bona fide residence test and the physical
presence test contain minimum time requirements. Reve-
nue Procedure 2023-19 provides a waiver under section
911(d)(4) for the time requirements for individuals electing
to exclude their foreign earned income who must leave a
foreign country because of war, civil unrest, or similar ad-
verse conditions in that country. Rev. Proc. 2023-19 adds
Ethiopia, Iraq, Ukraine, Belarus, China, and Mali to the list of
waiver countries for tax year 2022 for which the minimum
time requirements are waived.
March 27, 2023 2 Bulletin No. 2023–13

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 of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, 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 sub-
stantive 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 inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—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,
Legislation 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
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (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.
March 27, 2023 Bulletin No. 2023–13

Part III
Relief for Reporting
Required Minimum
Distributions for IRAs for
2023
Notice 2023-23
PURPOSE
This notice provides guidance to fi-
nancial institutions on reporting required
minimum distributions (RMDs) for 2023
after the amendment to section 401(a)(9)
of the Internal Revenue Code made by the
Consolidated Appropriations Act, 2023, P.
L. 117-328 (the Act).
BACKGROUND
The Act was enacted on December 29,
2022. Division T of the Act, titled “SE-
CURE 2.0 Act of 2022” (SECURE 2.0
Act), included a number of retirement
savings provisions. Section 107 of the SE-
CURE 2.0 Act amended section 401(a)(9)
(C) of the Code to delay the required be-
ginning date applicable to section 401(a)
plans and other eligible retirement plans
described in section 402(c)(8), including
individual retirement accounts and annu-
ities (IRAs). For an IRA owner who at-
tains age 72 after December 31, 2022, and
age 73 before January 1, 2033, the new
required beginning date (that is, the date
by which RMDs must begin) is April 1 of
the calendar year following the calendar
year in which the individual attains age
73, rather than April 1 of the calendar year
following the calendar year in which the
individual attains age 72.
This amendment to section 401(a)(9)
(C) is effective for distributions required
to be made after December 31, 2022,
with respect to individuals who will attain
age 72 after that date. As a result of this
amendment, IRA owners who will attain
age 72 in 2023 (that is, individuals born in
1951) will have a required beginning date
of April 1, 2025, rather than April 1, 2024.
This delay in the required beginning date
means that these IRA owners (who, pri-
or to enactment of the SECURE 2.0 Act,
would have been required to take min-
imum distributions from their IRAs for
2023) will have no RMD due from their
IRAs for 2023.
IRA REPORTING
If an IRA owner has an RMD due
for 2023, the financial institution that is
the trustee, custodian, or issuer main-
taining the IRA must file a 2022 Form
5498 (IRA Contribution Information) by
May 31, 2023, and indicate by a check
in Box 11 that an RMD is required for
2023. The financial institution may also
choose to provide further information in
Box 12a (RMD Date) and Box 12b (RMD
Amount). Additionally, under Notice
2002-27, 2002-1 CB 814, if an IRA owner
has an RMD due for 2023, the financial
institution must furnish a statement to the
IRA owner by January 31, 2023, that in-
forms the IRA owner of the date by which
the RMD must be distributed, and either
provides the amount of the RMD or of-
fers to calculate that amount upon request
(RMD statement).
For IRA owners who will attain age
72 in 2023, the RMD statement required
under Notice 2002–27 should not be sent,
and the 2022 Form 5498 should not in-
clude a check in Box 11 or any entries in
Box 12a or 12b. However, in recognition
of the short amount of time that financial
institutions have had to change their sys-
tems for furnishing the RMD statement
since the enactment of the SECURE 2.0
Act, relief is being provided with respect
to this reporting. Under this relief, the
Internal Revenue Service (IRS) will not
consider an RMD statement provided to
an IRA owner who will attain age 72 in
2023 to have been provided incorrectly if
the IRA owner is notified by the financial
institution no later than April 28, 2023,
that no RMD is actually required for 2023.
The SECURE 2.0 Act did not change
the required beginning date for IRA own-
ers who attained age 72 prior to January 1,
2023. To reduce misunderstanding among
IRA owners, the IRS encourages all finan-
cial institutions, in communicating these
RMD changes, to remind IRA owners
who attained age 72 in 2022, and have not
yet taken their 2022 RMDs, that they are
still required to take those distributions by
April 1, 2023.
DRAFTING INFORMATION
The principal author of this notice is
Brandon Ford of the Office of the Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). For further information regarding
this notice, contact Brandon Ford at (202)
317-4148 (not a toll-free number).
Section 45J Credit for
Production of Electricity
from Advanced Nuclear
Power Facilities
Notice 2023-24
SECTION 1. PURPOSE
.01 This notice provides guidance un-
der § 45J of the Internal Revenue Code
(Code), relating to the credit for the pro-
duction of electricity from advanced nu-
clear power facilities (§ 45J credit). In
response to the amendments to certain
requirements for the § 45J credit made by
§ 40501 of the Bipartisan Budget Act of
2018 (2018 Act), Public. Law. 115-123,
Div. D, Title I, 132 Stat. 64, 153 (Feb-
ruary 9, 2018), this notice provides: (i)
guidance for computing the § 45J credit;
(ii) the amount of the unutilized national
megawatt capacity limitation (NMCL) (as
defined in § 45J(b)(5)(B)); (iii) the proce-
dures for taxpayers to apply for allocations
of, and that the Internal Revenue Service
(IRS) will use to allocate, the unutilized
NMCL solely with respect to facilities
that the Department of Energy (DOE) pre-
viously certified as “advanced nuclear fa-
cilities” (as defined in § 45J(d)(2)) under
Notice 2013-68, 2013-46 I.R.B. 501; and
(iv) the procedures for a “qualified public
entity” (as defined in § 45J(e)(2)(A)) to
elect, pursuant to § 45J(e), to transfer the
§ 45J credit to an “eligible project partner”
(as defined in § 45J(e)(2)(B)). This notice
Bulletin No. 2023–13 571 March 27, 2023

March 27, 2023 572 Bulletin No. 2023–13
also requests public comment on topics
related to the § 45J credit that may require
guidance.
.02 The Department of the Treasury
(Treasury Department) and the IRS intend
to issue additional guidance regarding
the procedures by which any unutilized
NMCL will be allocated to a facility that
did not receive a certification from the
DOE as an “advanced nuclear facility”
under Notice 2013-68.
SECTION 2. BACKGROUND
.01 Section 45J was enacted by § 1306
of the Energy Policy Act of 2005, Public
Law 109-58, Title XIII, 119 Stat. 594, 997
(August 8, 2005). Subject to limitations
under § 45J(b) and (c), a taxpayer may be
allowed a § 45J credit of 1.8 cents for each
kilowatt hour of electricity (1) that the
taxpayer produces at an advanced nuclear
power facility during the eight-year period
beginning on the date the facility is placed
in service and (2) that the taxpayer sells
to an unrelated person during the taxable
year (qualifying electricity). See § 45J(a).
.02 Under § 45J(d)(1), an “advanced
nuclear power facility” is (i) any nuclear
facility the reactor design for which is ap-
proved by the Nuclear Regulatory Com-
mission (NRC) after December 31, 1993
(and such design or a substantially similar
design of comparable capacity was not
approved on or before that date), (ii) that
is owned by the taxpayer, and (iii) uses
nuclear energy to produce electricity. See
§ 45J(d).
.03 On May 1, 2006, the Treasury De-
partment and the IRS published Notice
2006-40, 2006-18 I.R.B. 855, to provide
guidance on the § 45J credit. Specifically,
Notice 2006-40 specified the method that
the IRS would use to allocate the NMCL
and prescribed the application process by
which taxpayers could request such an
allocation. The notice also provided guid-
ance on the requirement that electricity
be sold to an unrelated person and on the
effect of grants, tax-exempt bonds, subsi-
dized energy financing, and other credits.
.04 On November 12, 2013, the Trea-
sury Department and the IRS published
Notice 2013-68, which modified and su-
perseded Notice 2006-40. Notice 2013-
68 generally republished the guidance
contained in Notice 2006-40, but also
provided a new streamlined application
process allowing an applicant to submit
a single application only to the IRS. The
IRS would then obtain necessary certifi-
cation from the DOE. In addition, Notice
2013-68 provided guidance on the alloca-
tion rules for facilities that are directly or
indirectly owned by more than one person
and the time for filing an application with
the NRC.
.05 As originally enacted in 2005,
§ 45J(d)(1) required all advanced nucle-
ar power facilities to be placed in service
before January 1, 2021, to be eligible for
a § 45J credit. Accordingly, section 6 of
Notice 2013-68 provided that the amount
of the NMCL allocated to a facility under
Notice 2013-68 will be withdrawn if the
facility is not placed in service before Jan-
uary 1, 2021, or if the DOE informs the IRS
that the DOE certification for the facility
has been withdrawn. However, effective
for taxable years beginning after its Feb-
ruary 9, 2018, date of enactment, § 40501
of the 2018 Act added new § 45J(b)(5) to
the Code, which, in part, eliminates the
requirement for a facility receiving an al-
location of unutilized NMCL pursuant to
§ 45J(b)(5) to be placed in service before
January 1, 2021, to qualify as an advanced
nuclear power facility.
.06 Under § 45J(b)(1) and (3), a tax-
payer may be allowed a § 45J credit for
qualifying electricity only if an amount of
NMCL has been allocated to the facility,
in the manner prescribed by the Secretary
of the Treasury or her delegate (Secre-
tary).
1
The aggregate amount of NMCL
allocated by the Secretary cannot exceed
6,000 megawatts. See § 45J(b)(2).
.07 As added by § 40501 of the 2018
Act, § 45J(b)(5)(A) directs the Secretary
to allocate any unutilized NMCL (as de-
fined in § 45J(b)(5)(B)) as rapidly as is
practicable after December 31, 2020, as
follows: (i) first to facilities placed in
service on or before December 31, 2020,
to the extent that such facilities did not
receive an allocation equal to their full
nameplate capacity under the procedures
provided in Notice 2013-68, and (ii) then
to facilities placed in service after De-
cember 31, 2020, in the order in which
such facilities are placed in service. Sec-
tion 45J(b)(5)(B) defines the term “un-
utilized NMCL” as the excess (if any)
of 6,000 megawatts over the aggregate
amount of NMCL allocated by the Secre-
tary before January 1, 2021, reduced by
any amount of such limitation that was
allocated to a facility that was not placed
in service before January 1, 2021. Under
§ 45J(b)(5)(C), any allocation of the un-
utilized NMCL is treated for purposes of
the § 45J credit in the same manner as an
allocation of the NMCL.
.08 The 2018 Act also added new
§ 45J(e) to the Code effective for taxable
years beginning after February 9, 2018.
Section 45J(e) permits a “qualified public
entity” to make an election for any tax-
able year with respect to all or any por-
tion of its § 45J credits to transfer such
credits to one or more eligible project
partners specified in the election. With
respect to any § 45J credits transferred
by a qualified public entity to an eligible
project partner, the credit must be taken
into account in the first taxable year of
the eligible project partner ending with,
or after, the qualified public entity’s tax-
able year with respect to which the credit
was determined.
.09 Section 45J(e)(2)(A) defines the
term “qualified public entity” to mean (i)
a Federal, State, or local government en-
tity, or any political subdivision, agency,
or instrumentality thereof; (ii) a mutual or
cooperative electric company described in
§ 501(c)(12) or § 1381(a)(2) of the Code;
or (iii) a not-for-profit electric utility
which had or has received a loan or loan
guarantee under the Rural Electrification
Act of 1936.
.10 Section 45J(e)(2)(B) defines the
term “eligible project partner” to mean
any person who (i) is responsible for, or
participates in, the design or construction
of the advanced nuclear power facility to
which the § 45J credit relates; (ii) partici-
pates in the provision of the nuclear steam
supply system to such facility; (iii) partic-
1
The amount of the § 45J credit allowed a taxpayer under § 45J(a) for a taxable year may be (i) limited (after the application of § 45J(b)) by an annual limitation under § 45J(c)(1) applicable
to each facility and (ii) reduced under § 45J(c)(2) based on an inflation adjusted reference price for electricity described in § 45(e)(2)(C) of the Code.

Bulletin No. 2023–13 573 March 27, 2023
ipates in the provision of nuclear fuel to
such facility; (iv) is a financial institution
providing financing for the construction
or operation of such facility; or (v) has an
ownership interest in such facility.
.11 In the case of a § 45J credit deter-
mined at the partnership level, a qualified
public entity is treated as the taxpayer
with respect to its distributive share of the
§ 45J credit, and the term “eligible project
partner” includes any partner of the part-
nership. See § 45J(e)(3)(A).
.12 Section 38(b)(21) includes the
§ 45J credit as a current year business
credit. Section 39(a)(1) provides, in part,
that if the amount of the current year busi-
ness credit for the taxable year exceeds
the amount of the limitation imposed by
§ 38(c) for the taxable year (unused credit
year), the excess results in a 1-year busi-
ness credit carryback to the taxable year
preceding the unused credit year, and a
business credit carryforward to each of
the twenty (20) taxable years following
the unused credit year. Section 39(a)(2)
(A) provides that the entire amount of the
unused credit for an unused credit year is
carried to the earliest of the twenty-one
(21) taxable years to which the credit may
be carried. Section 39(a)(2)(B) provides
that the amount of the unused credit for
the unused credit year is carried to each of
the other twenty (20) taxable years to the
extent that such unused credit may not be
taken into account under § 38(a) for a pri-
or taxable year because of the limitations
of § 39(b) and (c).
SECTION 3. DETERMINATION OF
THE § 45J CREDIT
.01 In general. Under § 45J(a), (b)(1),
and (c), the § 45J credit allowed to a tax-
payer for a taxable year with respect to
qualifying electricity is the lesser of:
(1) the tentative credit for the facility
for the taxable year (determined under
section 3.02(1) of this notice) multiplied
by the taxpayer’s credit percentage (de-
termined under section 3.02(2) of this no-
tice), or
(2) $125,000,000 per 1,000 megawatts
of the facility limitation determined under
section 5.03(1) and (2) of this notice that
is allocated to the taxpayer under section
5.03(3), (4), and (5) of this notice.
.02 Tentative credit; credit percentage
(1) A facility’s tentative credit for the
taxable year is equal to 1.8 cents multi-
plied by the kilowatt hours of qualifying
electricity.
(2) The credit percentage for each tax-
payer that has been allocated all or part
of the amount of the facility limitation is
determined by dividing the facility lim-
itation that is allocated to the taxpayer
under section 5.03(3), (4), and (5) of this
notice by the nameplate capacity of the
facility.
.03 Credit determination for partner-
ships and S corporations. If a facility is
owned by a partnership or S corporation,
then the partnership or S corporation, and
not the partners or shareholders, will be
treated as the taxpayer that owns the facil-
ity for the purposes of this notice. In such
cases, the § 45J credit must be allocated to
the partners or shareholders in accordance
with § 1.704-1(b)(4)(ii) of the Income Tax
Regulations, in the case of partnerships,
or § 1.1366-1(a)(2)(v) of the Income Tax
Regulations, in the case of S corporations.
If the facility is owned through an organi-
zation that has made a valid election under
§ 761(a) of the Code (§ 761(a) election),
each member’s undivided ownership
share in the facility will be treated for pur-
poses of this notice as a separate facility
owned by such member.
.04 Sale of Electricity to Unrelated
Person. The § 45J credit is allowed only
for qualifying electricity that the taxpayer
produces and sells to an unrelated person,
as defined in § 45(e)(4). Solely for purpos-
es of § 45J, electricity will be treated as
sold to an unrelated person if the ultimate
purchaser of the electricity is not related
to the person that produces the electrici-
ty. Thus, the requirement of a sale to an
unrelated person will be treated as satis-
fied if the producer sells the electricity to
a related person for resale by the related
person to a person that is not related to the
producer.
.05 Effect of Grants, Tax-Exempt Bond
Proceeds, Subsidized Energy Financing,
and Other Credits. The amount of the
§ 45J credit with respect to any facility
for any taxable year is not reduced by the
amount of any grants, tax-exempt bond
proceeds, subsidized energy financing,
or other credits (as described in § 45(b)
(3)) used for, or in connection with, the
facility.
SECTION 4. DETERMINATION
OF THE UNUTILIZED NATIONAL
MEGAWATT CAPACITY
LIMITATION
After consultation with the DOE, the
Treasury Department and the IRS have
determined that no advanced nuclear
power facility that received an alloca-
tion of the NMCL under Notice 2013-
68 was placed in service before Janu-
ary 1, 2021. Therefore, in accordance
with section 6 of Notice 2013-68 and
§ 45J(b)(5)(B), all previous allocations
of the NMCL are withdrawn and the
total unutilized NMCL is 6,000 mega-
watts. The unutilized NMCL is available
for allocation as provided in section 5 of
this notice.
SECTION 5. ALLOCATION OF
THE UNUTILIZED NATIONAL
MEGAWATT CAPACITY
LIMITATION
.01 Application Limited to Facilities
Certified by DOE. The IRS will allocate
the unutilized NMCL only to advanced
nuclear power facilities (within the mean-
ing of § 45J(d)(1)(A)) for which the DOE
provides certification to the IRS that the
facility qualifies as an “advanced nucle-
ar facility.” For purposes of this notice,
each nuclear power reactor located on a
multi-reactor site is a separate facility. At
this time, only an owner of an advanced
nuclear power facility that (i) either (I)
previously received a certification from
the DOE under Notice 2013-68 that such
facility qualified as an “advanced nuclear
facility” or (II) acquired the facility after
the IRS had provided a previous owner of
the facility a letter stating that the DOE
had certified that facility as an “advanced
nuclear facility” under Notice 2013-68,
and (ii) maintains an active NRC con-
struction permit or license or combined
license, may apply for an allocation of the
unutilized NMCL pursuant to this notice.
In addition, the rule in section 4.04(3) and
(5) of Notice 2013-68 that undivided own-
ership shares in a facility would be treated
as separate facilities for purposes of that
notice is disregarded for purposes of de-
termining whether a facility previously
received a DOE certification under Notice
2013-68.

March 27, 2023 574 Bulletin No. 2023–13
.02 Application Required. The IRS will
not allocate the unutilized NMCL to any
owner of an advanced nuclear power fa-
cility unless such owner submits a com-
pleted application in accordance with sec-
tion 6 of this notice.
.03 Allocation Method. The unutilized
NMCL will be allocated as follows:
(1) Each facility that meets the require-
ments of sections 5 and 6 of this notice
(qualified facility) will be allocated an
amount of the unutilized NMCL equal
to its nameplate capacity in the order in
which such facilities are placed in service
(provided the application deadline speci-
fied in section 6.02 of this notice is met).
The amount of the unutilized NMCL allo-
cated to a qualified facility is referred to as
the facility limitation.
(2) The IRS will continue to allocate the
unutilized NMCL equal to the nameplate
capacity of a qualified facility until all the
unutilized NMCL is allocated. The final
recipient(s) of the remaining unutilized
NMCL may receive only a portion of the
unutilized NMCL for which it applied even
if it otherwise meets the requirements un-
der this notice to receive a full allocation.
(3) If only one taxpayer owns a direct
interest in a qualified facility, the entire
facility limitation is allocated to such tax-
payer. If more than one taxpayer owns a
direct interest in a qualified facility, each
taxpayer’s undivided ownership share in
the qualified facility will be treated for
purposes of this notice as a separate qual-
ified facility owned by such taxpayer. In
such cases, a taxpayer’s application must
identify the portion of the total nameplate
capacity of the qualified facility that is
equal to its undivided ownership share in
the qualified facility.
(4) Except as provided in sections
3.03 and 5.03(5) of this notice, if a qual-
ified facility is owned by a partnership
or S corporation, then the partnership
or S corporation, and not the partners or
shareholders, will be treated as the taxpay-
er that owns the qualified facility for the
purposes of this notice. In such cases, the
§ 45J credit must be allocated to the part-
ners or shareholders in accordance with
§ 1.704-1(b)(4)(ii), in the case of partner-
ships, or § 1.1366-1(a)(2)(v), in the case
of S corporations.
(5) If the qualified facility is owned
through an organization that has made a
valid § 761(a) election, each member’s
undivided ownership share in the quali-
fied facility will be treated for purposes of
this notice as a separate qualified facility
owned by such member. In such cases,
a member’s application for an alloca-
tion must identify the portion of the total
nameplate capacity of the qualified facili-
ty that is equal to its undivided ownership
share in the qualified facility.
SECTION 6. APPLICATION FOR
ALLOCATION OF UNUTILIZED
NATIONAL MEGAWATT CAPACITY
LIMITATION
.01 In general. (1) A taxpayer must sub-
mit, for each facility for which an alloca-
tion of the unutilized NMCL is requested,
an application to the IRS for an allocation
of the unutilized NMCL under § 45J(b)(5)
(Application for § 45J Allocation).
(2) An Application for § 45J Alloca-
tion should be marked or titled “APPLI-
CATION FOR SECTION 45J ALLO-
CATION” and delivered in the manner
provided in section 6.04 of this notice.
(3) Multiple taxpayers owning (or treat-
ed as owning) a direct interest in a facility
(as described in section 5.03(3) or (5) of
this notice) must each file a separate Ap-
plication for § 45J Allocation with respect
to a single facility. See section 6.03(6) of
this notice.
(4) No user fee is required for the
submission of an Application for § 45J
Allocation.
.02 Application Deadline. An Appli-
cation for § 45J Allocation must be filed
no later than thirty (30) days after the date
that the facility is placed in service. A tax-
payer may file its Application for § 45J
Allocation before the facility is placed in
service, but the taxpayer must supplement
its application with the statement required
under section 6.03(4) of this notice no lat-
er than thirty (30) days after the date that
the facility is placed in service.
.03 Required Information. An Applica-
tion for § 45J Allocation must include the
following:
(1) The name, taxpayer identification
number (if available), and address of the
taxpayer who placed or who will place the
facility in service;
(2) The name and location of the
facility;
(3) The nameplate capacity of the
facility;
(4) A statement signed under penalties
of perjury (as provided in section 6.03(8)
of this notice) providing the date on which
the facility was placed in service, the date
the facility received an NRC construction
permit or license or combined license, and
a statement that such permit or license
remains active. If the date on which the
facility was placed in service is unknown
at the time of the Application for § 45J Al-
location, such application may be supple-
mented at any time prior to the application
deadline specified in section 6.02 of this
notice;
(5) The total amount of unutilized
NMCL requested (not to exceed the name-
plate capacity of the facility);
(6) If a taxpayer’s Application for
§ 45J Allocation relates to a facility in
which more than one person owns (or is
treated as owning) a direct interest (as
described in section 5.03(3) or (5) of this
notice), the taxpayer must submit doc-
umentation of its undivided ownership
share in the facility;
(7) If the facility is owned by an orga-
nization that has made a § 761(a) election,
a copy of the § 761 election;
(8) A declaration, applicable to the Ap-
plication for § 45J Allocation and any re-
quired supplemental submissions, signed
by a person currently authorized to bind
the taxpayer in these matters, in the fol-
lowing form:
“Under penalties of perjury I declare
that I have examined the information
contained in this Application for § 45J
Allocation and the documents that sub-
stantiate this Application for § 45J Al-
location, and to the best of my knowl-
edge and belief, it is true, correct, and
complete.”
(9) The following additional statement:
“I further declare that I have authority
to sign this Application for § 45J Allo-
cation (and any supplemental submis-
sions) on behalf of the taxpayer.”
.04 Where to Submit an Application for
§ 45J Allocation.
(1) An Application for § 45J Allocation
should be sent to the following address:

Bulletin No. 2023–13 575 March 27, 2023
Internal Revenue Service
Attn: CC:PSI:6, Room 5114
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
(2) If a private delivery service is used,
the address is:
Internal Revenue Service
Attn: CC:PSI:6, Room 5114
1111 Constitution Ave., N.W.
Washington, DC 20224
(3) An Application for § 45J Alloca-
tion may also be faxed or e-faxed to (855)
591-7868.
.05 IRS Action. (1) Upon receipt of a
taxpayer’s Application for § 45J Alloca-
tion, the IRS will determine whether the
Application for § 45J Allocation satisfies
the requirements of this notice. If the Ap-
plication for § 45J Allocation does not sat-
isfy the requirements of this notice, the IRS
may advise the taxpayer how to perfect its
Application for § 45J Allocation. The IRS
will not consider an Application for § 45J
Allocation to be complete until the IRS re-
ceives all the information requested in this
notice. The IRS will confirm that the DOE
previously certified the taxpayer’s facility
as an advanced nuclear facility pursuant to
the procedures of Notice 2013-68.
(2) Upon receipt of a completed Ap-
plication for § 45J Allocation, the IRS
will review the taxpayer’s Application
for § 45J Allocation and will notify the
taxpayer, by letter, of its decision. If the
IRS accepts the taxpayer’s Application for
§ 45J Allocation, the acceptance letter will
state the amount of the facility limitation
and the portion of that facility limitation
being allocated to the taxpayer.
(3) The IRS will allocate the unuti-
lized NMCL under this notice based on
the information provided in a taxpayer’s
Application for § 45J Allocation. If the
IRS determines upon an examination that
a facility was not placed in service on the
date the taxpayer specified under section
6.03(4) of this notice, the IRS may subse-
quently withdraw a facility’s allocation of
the unutilized NMCL.
SECTION 7. TRANSFER OF
CREDIT BY QUALIFIED PUBLIC
ENTITIES
.01 In general. Section 45J(e) permits
a qualified public entity (as defined in
§ 45J(e)(2)(A)) to elect to transfer all or
a portion of its § 45J credit to an eligi-
ble project partner (as defined in § 45J(e)
(2)(B)) (§ 45J(e) Election). If a facility
is owned by a partnership, a qualified
public entity may elect to transfer its dis-
tributive share under § 1.704-1(b)(4)(ii)
of the credit to an eligible project part-
ner. In addition, if a facility is owned by
a partnership, an eligible project partner
includes any partner of the partnership.
A § 45J(e) Election may be made by a
qualified public entity for a taxable year
only if a § 45J credit is determined for
the qualified public entity for such tax-
able year. If a qualified public entity is
not required to file an income tax return
for the taxable year that the § 45J credit
is determined, the qualified public entity
is still considered a taxpayer for purpos-
es of making the § 45J(e) Election and
its taxable year is treated as the calen-
dar year for purposes of determining the
§ 45J credit and making such election.
.02 Election Procedures. (1) A qual-
ified public entity may make a § 45J(e)
Election by furnishing an eligible proj-
ect partner with a statement titled “SEC-
TION 45J(e) ELECTION STATEMENT”
(§ 45J(e) Election Statement) transferring
all or a portion of the qualified public en-
tity’s § 45J credit. The statement must be
signed under penalties of perjury by an
individual with authority to legally bind
the qualified public entity. The election
statement must also include the written
consent of an individual with authority to
legally bind the eligible project partner.
A qualified public entity must furnish a
separate statement to each eligible project
partner to whom it transfers any portion of
its § 45J credit.
(2) The § 45J(e) Election Statement
must include the following information:
(a) The name, address, and taxpayer
identification number (if available) of the
qualified public entity;
(b) The name and location of the
facility;
(c) The nameplate capacity of the
facility;
(d) The date on which the facility was
placed in service;
(e) The full amount of the unutilized
NMCL allocated to the qualified public
entity with respect to the facility and a
copy of the letter issued by the IRS stating
the amount of the unutilized NMCL allo-
cated to the qualified public entity;
(f) The taxable year of the qualified
public entity for which the § 45J credit is
determined and the election is made;
(g) The name, address and taxpayer
identification number of all known eligi-
ble project partners receiving any portion
of the qualified public entity’s transferred
§ 45J credit;
(h) The total kilowatt-hours of electric-
ity produced by the facility and sold to an
unrelated taxpayer during the taxable year
of the qualified public entity for which the
election is made;
(i) The total amount of the § 45J credit
determined with respect to the qualified
public entity for the taxable year for which
the election is made and the amount of
that § 45J credit that the qualified public
entity is electing to transfer to the eligible
project partner;
(j) A statement providing how the § 45J
credit claimant qualifies as an eligible
project partner; and
(k) A declaration, applicable to the
§ 45J(e) Election Statement signed by a
person currently authorized to bind the
qualified public entity in these matters, in
the following form:
“Under penalties of perjury I declare
that I have examined the information
contained in this § 45J(e) Election
Statement and the documents that sub-
stantiate this § 45J(e) Election State-
ment, and to the best of my knowl-
edge and belief, it is true, correct, and
complete.”
(l) The following additional statement:
“I further declare that I have authority
to sign this § 45J(e) Election Statement
on behalf of the qualified public entity.”
(3) A § 45J(e) Election is an annual
election that must be made for each tax-
able year for which a qualified public en-
tity will transfer the credit to an eligible
project partner. A separate election must
be made for each eligible project partner
for which a qualified public entity will
transfer a portion of the § 45J credit.
.03 Due Date for Making Election. The
§ 45J(e) Election Statement must be fur-
nished to the eligible project partner on or

March 27, 2023 576 Bulletin No. 2023–13
before the due date (including extensions of
time) of the eligible project partner’s Fed-
eral income tax return on which it claims
the transferred § 45J credit for the taxable
year ending with, or after, the qualified
public entity’s taxable year with respect to
which the credit was determined.
.04 Election Irrevocable. An election
by a qualified public entity to transfer any
portion of the § 45J credit is irrevocable
once the § 45J(e) Election Statement re-
ferred to in section 7.02 of this notice is
furnished to the eligible project partner.
.05 Requirement for an Eligible Project
Partner to Claim the Credit. An eligible
project partner claims the § 45J credit by
filing the applicable IRS form for claim-
ing the credit (and including all requested
information) and attaching the § 45J(e)
Election Statement furnished by the qual-
ified public entity as provided in section
7.02 of this notice.
.06 Carryforwards and Carrybacks
of Credits. In the case of any credit or
portion thereof with respect to which a
§ 45J(e) Election is made, the credit must
be taken into account under § 38 by the
eligible project partner in the first taxable
year of the eligible project partner ending
with or after the qualified public entity’s
taxable year with respect to which the
credit was determined. The carryback and
carryforward rule provided in § 39 regard-
ing unused business credits applies to the
eligible project partner.
SECTION 8. REQUEST FOR
COMMENTS
.01 Comments Requested. The Trea-
sury Department and IRS request written
comments on issues relating to § 45J(b)
(5) and (e) and the guidance provided in
this notice. In particular, the Treasury De-
partment and the IRS request comments to
address the following:
(1) Section 45J(b)(5) provides that the
unutilized NMCL is allocated to facilities
in the order in which a facility is placed
in service in an allocation amount up to
the facility’s nameplate capacity. The
Treasury Department and the IRS intend
to issue guidance to provide the proce-
dures for a facility that has not previous-
ly received a certification from the DOE
as an “advanced nuclear facility” under
Notice 2013-68 to be allocated unutilized
NMCL. Accordingly, the Treasury De-
partment and the IRS invite comments re-
garding the procedures for allocating the
remaining unutilized NMCL.
(2) Section 45J(c)(2) provides that the
§ 45J credit phases out based on a ratio
of the credit determined in § 45J(a) to the
reference price defined in § 45(e)(2)(C).
The Treasury Department and the IRS in-
vite comments regarding the method for
calculating the reference price for the gen-
eration of electricity at an advanced nucle-
ar power facility.
.02 How to Submit Comments. All
commenters are strongly encouraged to
submit comments electronically. Com-
ments should be submitted in writing by
May 8, 2023, and should include refer-
ence to Notice 2023-24. Comments may
be submitted electronically via the Fed-
eral eRulemaking Portal at www.regu-
lations.gov
(type IRS-2023-0008 in the
search field on the regulations.gov home-
page to find this notice and submit com-
ments). Alternatively, comments may be
mailed to: Internal Revenue Service, Attn:
CC:PA:LPD:PR (Notice 2023-24), Room
5203, P.O. Box 7604, Ben Franklin Sta-
tion, Washington D.C. 20044. The Trea-
sury Department and the IRS will pub-
lish for public availability any comment
submitted electronically or on paper to its
public docket on www.regulations.gov.
SECTION 9. PAPERWORK
REDUCTION ACT
The collection of information contained
in this notice has been submitted to the
Office of Management and Budget in ac-
cordance with the Paperwork Reduction
Act (PRA) (44 U.S.C. 3507) under control
number 1545-2000. An agency may not
conduct or sponsor, and a person is not re-
quired to respond to, a collection of infor-
mation unless the collection of information
displays a valid OMB control number.
The collections of information in this
notice are in sections 6 and 7. The sec-
tion 6 requirements are not defined as a
collection of information under 5 CFR
1320.3(c). The information collection re-
quirements contained in section 7 will be
submitted to OMB for review and approv-
al in accordance with 5 CFR 1320.10.
Section 7 provides procedures for a
qualified public entity to make an election
to transfer the § 45J credits to an eligible
project partner (a third-party disclosure
under the PRA). The information will be
used to determine the portion of the § 45J
credits to which an eligible project part-
ner is entitled. An eligible project partner
will use the election statement to claim the
§ 45J credit. This information is required
to be collected and retained for taxpayers
to claim the § 45J credit.
The collection of information is re-
quired to obtain a benefit. The like-
ly respondents are corporations and
partnerships.
The estimated total annual reporting
burden is 406 hours.
The estimated annual burden per re-
spondent is 5.07 hours. The estimated
number of respondents is 80.
The estimated frequency of responses
is on occasion.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and tax
return information are confidential, as re-
quired by § 6103 of the Code.
SECTION 10. EFFECT ON OTHER
DOCUMENTS
Notice 2013-68 is obsoleted.
SECTION 11. DRAFTING
INFORMATION
The principal author of this notice is
John M. Deininger of the Office of As-
sociate Chief Counsel (Passthroughs &
Special Industries). For further infor-
mation regarding this notice contact Mr.
Deininger at (202) 317-6853 (not a toll-
free number).

Bulletin No. 2023–13 577 March 27, 2023
Determination of Housing
Cost Amounts Eligible for
Exclusion or Deduction for
2023
Notice 2023-26
SECTION 1. PURPOSE
This notice provides adjustments to the
limitation on housing expenses for pur-
poses of section 911 of the Internal Rev-
enue Code for specific locations for 2023.
These adjustments are based on geograph-
ic differences in housing costs relative to
housing costs in the United States.
SECTION 2. BACKGROUND
Section 911 allows a qualified individ-
ual to elect to exclude from gross income
the foreign earned income and to exclude
or deduct the housing cost amount of such
individual.
The term “housing cost amount” is
generally the total of the housing expenses
for the taxable year minus a base housing
amount. See § 911(c)(1). For this purpose,
the base housing amount for the taxable
year is limited to an amount that is tied to
the maximum foreign earned income ex-
clusion amount of the qualified individual,
which is $120,000 for 2023. See § 911(c)
(1)(B). Specifically, the base housing
amount is 16 percent of the maximum
foreign earned income exclusion amount
(computed on a daily basis), multiplied
by the number of days in the applicable
period that fall within the taxable year.
Assuming that the entire taxable year of
a qualified individual is within the appli-
cable period, the base housing amount for
2023 is $19,200 ($120,000 x .16).
Similarly, the housing expense amount
is also limited, based on a percentage of
the maximum foreign earned income ex-
clusion amount. Specifically, the limit on
such housing expenses generally equals
30 percent of the maximum foreign earned
income exclusion amount (computed on a
daily basis), multiplied by the number of
days in the applicable period for which
the taxpayer is a qualified individual. See
§ 911(c)(2)(A) and (d)(1). Thus, under
this general limitation, a qualified individ-
ual whose entire taxable year is within the
applicable period is limited to maximum
housing expenses of $36,000 ($120,000
x .30) for 2023. However, section 911(c)
(2)(B) authorizes the Secretary to issue
regulations or other guidance to adjust
the percentage under section 911(c)(2)(A)
(i) (which determines the limit on hous-
ing expenses) based on geographic differ-
ences in housing costs relative to housing
costs in the United States. Pursuant to this
authority, the Department of the Treasury
(Treasury Department) and the Internal
Revenue Service (IRS) have published
annual notices concerning the limitation
on the section 911 housing cost amounts
since the 2006 taxable year.
For more background on the foreign
housing exclusion, see https://www.irs.
gov/individuals/international-taxpayers/
foreign-housing-exclusion-or-deduction.
SECTION 3. TABLE OF ADJUSTED
HOUSING LIMITATIONS FOR 2023
The following table provides adjusted
limitations on housing expenses (in lieu
of the otherwise applicable limitation of
$36,000) for 2023. All amounts are in U.S.
dollars.
CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily/365 days)
AngolaLuanda84,000230.14
ArgentinaBuenos Aires56,500154.79
AustraliaSydney66,500182.19
Bahamas, TheNassau49,700136.16
BahrainBahrain48,300132.33
BarbadosBarbados and Bridgetown37,700103.29
BelgiumBrussels38,700106.03
BermudaBermuda90,000246.58
BrazilSao Paulo56,600155.07
CanadaCalgary38,600105.75
CanadaMontreal52,600144.11
CanadaOttawa46,100126.30
CanadaToronto59,900164.11
CanadaVancouver56,800155.62
CanadaVictoria41,300113.15
Cayman IslandsGrand Cayman48,000131.51
ChinaBeijing69,600190.68

March 27, 2023 578 Bulletin No. 2023–13
CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily/365 days)
ChinaHong Kong114,300313.15
ChinaShanghai57,001156.17
ColombiaBogota58,700160.82
ColombiaAll cities other than Bogota49,400135.34
Costa RicaSan Jose37,800103.56
Democratic Republic of the
Congo
Kinshasa42,000115.07
DenmarkCopenhagen43,704119.74
Dominican RepublicSanto Domingo45,500124.66
EcuadorQuito38,200104.66
EstoniaTallinn46,600127.67
FranceGarches, Paris, Sevres,
Suresnes, and Versailles
66,400181.92
FranceLyon36,700100.55
GermanyBerlin39,800109.04
GermanyBoeblingen, Ludwigsburg,
Nellingen, and Stuttgart
39,600108.49
GermanyBonn42,000115.07
GermanyCologne56,200153.97
GermanyGelnhausen and Hanau41,000112.33
GermanyIngolstadt46,500127.40
GermanyKaiserslautern, Landkreis,
Pirmasens, Sembach, and
Zweibrueken
39,900109.32
GermanyMainz and Wiesbanden44,500121.92
GermanyMunich46,500127.40
GermanyWahn42,000115.07
GuatemalaGuatemala City42,000115.07
GuineaConakry51,300140.55
Holy See, TheHoly See, The44,200121.10
IndiaMumbai67,920186.08
IndiaNew Delhi56,124153.76
IndonesiaJakarta37,776103.50
IrelandDublin38,400105.21
IsraelBeer Sheva58,000158.90
IsraelJerusalem49,000
134.25
IsraelTel Aviv50,800139.18
IsraelWest Bank49,000134.25
ItalyGenoa41,800114.52
ItalyLa Spezia40,400110.68
ItalyMilan66,000180.82
ItalyNaples45,300124.11
ItalyRome44,200121.10
ItalyVicenza36,900101.10

Bulletin No. 2023–13 579 March 27, 2023
CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily/365 days)
JamaicaKingston41,200112.88
JapanGifu, Komaki, and Nagoya74,300203.56
JapanOkinawa Prefecture47,200129.32
JapanOsaka-Kobe90,664248.39
JapanTokyo77,000210.96
JapanYokohama41,000112.33
JapanYokosuka44,300121.37
KazakhstanAlmaty48,000131.51
KoreaCamp Colbern54,200148.49
KoreaCamp Market, K-16, Kimpo
Airfield, Seoul, and Suwon
48,600133.15
KoreaCamp Mercer54,200148.49
KuwaitKuwait City64,400176.44
KuwaitAll cities other than Kuwait
City
57,700158.08
LuxembourgLuxembourg36,20099.18
MalaysiaKuala Lumpur46,200126.58
MaltaMalta55,100150.96
MexicoMerida37,900103.84
MexicoMexico City47,900131.23
MexicoAll cities other than Ciudad
Juarez, Cuernavaca,
Guadalajara, Hermosillo,
Matamoros, Mazatlan,
Merida, Metapa, Mexico City,
Monterrey, Nogales, Nuevo
Laredo, Tijuana, and Veracruz
39,400107.95
MozambiqueMaputo39,500108.22
NetherlandsAmsterdam and Schiphol52,900144.93
NetherlandsAruba39,300107.67
NetherlandsHague, The52,700144.38
Netherlands AntillesCuracao45,800125.48
OmanMuscat41,300113.15
PanamaPanama City39,500108.22
PeruLima39,100107.12
PolandWarsaw50,200137.53
PortugalAlverca and Lisbon40,400110.68
QatarDoha45,888125.72
RomaniaBucharest41,200112.88
RussiaMoscow108,000295.89
RussiaSaint Petersburg60,000164.38
Saudi ArabiaRiyadh40,000109.59
SingaporeSingapore82,900227.12
SloveniaLjubljana46,400127.12
South AfricaPretoria39,300107.67

March 27, 2023 580 Bulletin No. 2023–13
CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily/365 days)
SpainBarcelona40,600111.23
SpainMadrid53,900147.67
SwitzerlandBern69,000189.04
SwitzerlandGeneva98,300269.32
SwitzerlandZurich39,219107.45
TaiwanTaipei46,188126.54
TanzaniaDar Es Salaam44,000120.55
ThailandBangkok59,000161.64
Trinidad and TobagoPort of Spain54,500149.32
UkraineKiev72,000197.26
United Arab EmiratesAbu Dhabi49,687136.13
United Arab EmiratesDubai57,174156.64
United KingdomBasingstoke41,099112.60
United KingdomBath41,000112.33
United KingdomBracknell, High Wycombe,
and Reading
62,100170.14
United KingdomCaversham73,800202.19
United KingdomCheltenham45,600124.93
United KingdomFarnborough54,700149.86
United KingdomGibraltar44,616122.24
United KingdomLakenheath and Mildenhall42,600116.71
United KingdomLondon64,600176.99
United KingdomLoudwater52,400143.56
United KingdomSouthampton44,200121.10
United KingdomSurrey48,402132.61
VenezuelaCaracas57,000156.16
VietnamHanoi46,800128.22
VietnamHo Chi Minh City42,000115.07
SECTION 4. OPTION TO APPLY
2023 ADJUSTED HOUSING
LIMITATIONS TO 2022 TAXABLE
YEAR
For some locations, the limitation on
housing expenses provided in Section
3 of this notice may be higher than the
limitation on housing expenses provid-
ed in the “Table of Adjusted Limitations
for 2022” in Notice 2022-10, 2022-10
I.R.B. 815. A qualified individual incur-
ring housing expenses in such a location
during 2022 may apply the adjusted lim-
itation on housing expenses provided in
Section 3 of this notice for 2023 in lieu
of the amounts provided in the “Table of
Adjusted Limitations for 2022” in Notice
2022-10 (and as set forth in the Instruc-
tions to Form 2555, Foreign Earned In-
come, for 2022).
The Treasury Department and the IRS
anticipate that future annual notices pro-
viding adjustments to housing expense
limitations will make a similar option
available to qualified individuals that in-
cur housing expenses in the immediately
preceding year. For example, when adjust-
ed housing expense limitations for 2024
are issued, it is expected that taxpayers
will be permitted to apply those adjusted
limitations to the 2023 taxable year.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
This notice supersedes Notice 2022-10,
2022-10 I.R.B. 815.
SECTION 6. EFFECTIVE DATE
This notice is effective for taxable years
beginning on or after January 1, 2023. How-
ever, as provided in Section 4, taxpayers
may apply the 2023 adjusted housing lim-
itations contained in Section 3 of this notice
to his or her taxable year beginning in 2022.
SECTION 7. DRAFTING
INFORMATION
The principal author of this notice is
Kate Y. Hwa of the Office of Associate
Chief Counsel (International). For further
information regarding this notice contact
Kate Y. Hwa at (202) 317-5001 (not a toll-
free number).

Bulletin No. 2023–13 581 March 27, 2023
NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 4436, General Rules and Specifications for Substitute Form 941, Schedule
B (Form 941), Schedule D (Form 941), Schedule R (Form 941), and Form 8974.
Rev. Proc. 2023-13
TABLE OF CONTENTS
PART 1 –
Section 1.1 – Purpose ................................................................................582
Section 1.2 – What’s New .............................................................................584
Section 1.3 – Reminders ..............................................................................584
Section 1.4 – General Requirements for Reproducing IRS Official Form 941, Schedule B, Schedule D,
Schedule R, and Form 8974 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .584
Section 1.5 – Reproducing Form 941, Schedule B, Schedule D, Schedule R, and Form 8974 for
Software-Generated Paper Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .586
Section 1.6 – Specific Instructions for Schedule D ..........................................................588
Section 1.7 – Specific Instructions for Schedule R ..........................................................588
Section 1.8 – Specific Instructions for Form 8974 ..........................................................589
Section 1.9 – Office of Management and Budget (OMB) Requirements for Substitute Forms ........................590
Section 1.10 – Order Forms and Instructions
..............................................................590
Section 1.11 – Effect on Other Documents ................................................................591
Section 1.12 – Helpful Information ......................................................................591
Section 1.13 – Exhibits ...............................................................................592

March 27, 2023 582 Bulletin No. 2023–13
Part 1
Section 1.1 – Purpose
.01 The purpose of this revenue procedure is to provide general rules and specifications from
the IRS for paper and computer-generated substitutes for Form 941, Employer’s QUARTERLY
Federal Tax Return; Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule
Depositors (referred to in this revenue procedure as “Schedule B”); Schedule D (Form 941),
Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations (referred
to in this revenue procedure as “Schedule D”); Schedule R (Form 941), Allocation Schedule for
Aggregate Form 941 Filers (referred to in this revenue procedure as “Schedule R”); and Form
8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.
Caution. Before creating a substitute Form 941, see Pub. 1167, General Rules and Specifications
for Substitute Forms and Schedules, for additional rules and specifications for payment vouchers
(Vouchers), printing in margins (Marginal Printing), and additional instructions (Additional
Instructions for All Forms).
Note. Substitute territorial forms (941-PR, Planilla para la Declaración Federal TRIMESTRAL
del Patrono; 941-SS, Employer’s QUARTERLY Federal Tax Return (American Samoa, Guam,
the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands); and Anexo B
(Formulario 941-PR), Registro de la Obligación Contributiva para los Despositantes de Itinerario
Bisemanal), should also generally conform to the specifications outlined in this revenue procedure.
However, some of the measurements provided in the exhibits, later, may need to be adjusted for
substitute territorial forms.
.02 This revenue procedure provides information for substitute Form 941, Schedule B, Schedule
D, Schedule R, and Form 8974. If you need more in-depth information on who must complete
these forms and how to complete them, see the Instructions for Form 941, the Instructions for
Schedule B, the Instructions for Schedule D, the Instructions for Schedule R, the Instructions for
Form 8974, and Pub. 15, Employer’s Tax Guide, or go to IRS.gov.
Note. Failure to produce acceptable substitutes of the forms and schedules listed in this revenue
procedure may result in delays in processing. This may result in penalties.
.03 Forms that completely follow the guidelines in this revenue procedure and are exact replicas
of the official IRS forms do not need to be submitted to the IRS for specific approval. Substitute
forms and schedules need to be scanned using IRS scanning equipment.
If you are uncertain of any specification and want clarification, do the following.
1. Submit a letter citing the specification.
2. State your understanding of the specification.
3. Enclose an example (if appropriate) of how the form would appear if produced using your
understanding.

Bulletin No. 2023–13 583 March 27, 2023
4. Be sure to include your name, complete address, phone number, and, if applicable, your
email address with your correspondence. Send your request to SCRIPS@IRS.gov or
SubstituteForms@IRS.gov, or use the following address.
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP:TP
5000 Ellin Road, Mail Stop C6-110
Lanham, MD 20706
Note. Allow at least 30 days for the IRS to respond.
.04 However, software developers and form producers should send a blank copy of their substitute
Form 941, Schedule B, and Schedule R in Portable Document Format (PDF) to SCRIPS@IRS.
gov. The purpose is not specifically for approval but to assist the IRS in preparing to scan
these forms. Submitters will only receive comments if a significant problem is discovered
through this process. Submitters are not expected to delay marketing their forms in order to
receive feedback. Submitters must not include any “live” taxpayer data on any substitute form
submitted for review.
.05 Form 941, Schedule B, Schedule R, and Form 8974 have a six-digit form ID code in the upper
right-hand corner. The first two digits of the form ID code represent whether the form is an official
paper form or a substitute 6x10 grid. The third and fourth digits of the form ID code are a unique
identifier that is subject to change each quarter when changes are made to a page of the form. The
fifth and six digits of the form ID code generally represent the year in which the IRS made major
formatting changes to the layout of a page of the form. The following six-digit form ID codes,
some of which have been updated for the first quarter of 2023, are currently used on Form 941,
Schedule B, Schedule R, and Form 8974.
•
Official paper forms: 950122 (Form 941, page 1); 951222 (Form 941,
page 2); 950922
(Form 941, page 3); 951020 (Form 941, page 4); 960311 (Schedule B); 951422 (Schedule R,
page 1); 951522 (Schedule R, page 2); and 950823 (Form 8974).
•
Substitute 6x10 grids: 970122 (Form 941, page 1); 971222 (Form
941, page 2); 970922
(Form 941, page 3); 971020 (Form 941, page 4); 970311 (Schedule B); 971422 (Schedule R,
page 1); 971522 (Schedule R, page 2); and 970823 (Form 8974).
You must always use the form ID code provided on the current form for the applicable quarter
for which you are creating a substitute form, even if this revenue procedure is not superseded to
reflect a change to a form ID code.
Note. Page 4 of Form 941 (page intentionally left blank) is not required to be filed with the IRS
as part of a substitute Form 941. However, if page 4 of the substitute Form 941 is filed, it must
include the form ID code.
.06 This revenue procedure will be updated only if there are major formatting changes to the
layout of the forms (that is, changes to the measurements provided in the exhibits at the end of this
revenue procedure) or there are other changes that impact the processing of substitute forms. This
revenue procedure won’t be updated solely because a line is changed to “Reserved for future use”
or solely because a form ID code changes without major formatting changes.

March 27, 2023 584 Bulletin No. 2023–13
Section 1.2 – What’s New
.01 Some measurements shown in the exhibits for Form 941 have changed due to minor design
changes.
.02 Some column headings on Schedule R were revised to make use of columns that were
previously “Reserved for future use.”
.03 Form 8974 was revised due to the Inflation Reduction Act of 2022. See the instructions for this
form at IRS.gov/Form8974.
.04 Form 941-SS and Form 941-PR will no longer be available after the fourth quarter of
2023. Instead, employers in the U.S. territories will file Form 941, or, if you prefer your form
and instructions in Spanish, you can file new Form 941 (sp), Declaración del Impuesto Federal
TRIMESTRAL del Empleador.
Section 1.3 – Reminders
.01 Draft forms. Draft forms can be found at IRS.gov/DraftForms.
Section 1.4 – General Requirements for Reproducing IRS Official Form 941, Schedule B, Schedule D, Schedule R,
and Form 8974
.01 Submit substitute Form 941, Schedule B, Schedule D, Schedule R, and Form 8974 to the IRS
for specifications review. Substitute Form 941, Schedule B, Schedule D, Schedule R, and Form
8974 that completely conform to the specifications contained in this revenue procedure do not
require prior approval from the IRS, but should be submitted to SCRIPS@IRS.gov to ensure that
they conform to IRS format and scanning specifications.
.02 Print the form on standard 8.5-inch wide by 11-inch paper.
.03 Use white paper that meets generally accepted weight, color, and quality standards (minimum
20 lb. white bond paper).

Bulletin No. 2023–13 585 March 27, 2023
Note. Reclaimed fiber in any percentage is permitted provided that the requirements of this
standard are met.
.04 The IRS prefers printing Form 941 on both sides of a single sheet of paper, but it is acceptable
to print on one side of each of two separate sheets of paper.
.05 Make the substitute paper form as identical to the official form as possible.
.06 Print the substitute form using nonreflective black (not blue or other-colored) ink. Printing in
an ink color other than black may reduce readability in the scanning process. This may result in
figures being too faint to be recognizable.
.07 Use typefaces that are substantially identical in size and shape to the official form and use rules
and shading (if used) that are substantially identical to those on the official form. Use font size as
large as possible within the fields.
.08 In the same location as shown on the official IRS forms, print the six-digit form ID code (if one
exists on the official form) on each form using nonreflective black, carbon-based, 12-point font.
The use of non-OCR-A font may reduce readability for scanning. Use the official form to develop
your substitute form.
Note. Maintain as much white space as possible around the form ID code. Do not allow character
strings to print adjacent to the code.
The following six-digit form ID codes are used on Form 941, Schedule B, Schedule R, and Form
8974 for the first quarter of 2023. Print “950122” on Form 941, page 1; “951222” on Form 941,
page 2; “950922” on Form 941, page 3; “951020” on Form 941, page 4; “960311” on Schedule B;
“951422” on Schedule R, page 1; “951522” on Schedule R, page 2; and “950823” on Form 8974.
You must always use the form ID code provided on the current form for the applicable quarter
for which you are creating a substitute form, even if this revenue procedure is not superseded to
reflect a change to a form ID code. See Section 1.5 for information on form ID codes for software-
generated forms.
Note. Page 4 of Form 941 (page intentionally left blank) is not required to be filed with the IRS
as part of a substitute Form 941. However, if page 4 of the substitute Form 941 is filed, it must
include the form ID code.
.09 Print the OMB number in the same location as on the official form. Be sure to include the
OMB number on Form 941, Schedule B, Schedule D, Schedule R, and Form 8974.
.10 Print all entry boxes and checkboxes exactly as shown (location and size) on the official
forms.
Note. Instead of a four-sided checkbox for the entry, just the bottom line of the box can be used as
long as the location and size remain the same.
.11 Print “For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment
Voucher.” at the bottom of page 1 of Form 941.

March 27, 2023 586 Bulletin No. 2023–13
.12 Print “For Paperwork Reduction Act Notice, see separate instructions.” at the bottom of
Schedule B and Schedule D.
.13 Print “For Paperwork Reduction Act Notice, see the separate instructions.” at the bottom of
Schedule R.
.14 Print “For Paperwork Reduction Act Notice, see the separate instructions.” at the bottom of
Form 8974.
.15 Do not print the form catalog number (“Cat. No.”) at the bottom of the forms or instructions.
Instead, print your IRS-issued three-letter substitute form source code in place of the catalog
number on the left at the bottom of page 1 of Form 941, Schedule B, Schedule D, Schedule R, and
Form 8974.
Note. You can obtain a three-letter substitute form source code by requesting it by email at
SubstituteForms@IRS.gov. Enter “Substitute Forms” on the subject line.
.16 Do not print the Government Publishing Office (GPO) symbol at the bottom of the forms or
instructions.
Section 1.5 – Reproducing Form 941, Schedule B, Schedule D, Schedule R, and Form 8974 for Software-Generated
Paper Forms
.01 You may use the PDF files to develop the layout for your forms. Draft forms found at IRS.
gov/DraftForms can be used to develop interim formats until the forms are finalized. When forms
become finalized, they are posted and can be found at IRS.gov/Forms. You may use 6x10 grid
formats to develop software versions of Form 941, Schedule B, Schedule D, Schedule R, and
Form 8974.
Please follow the specifications exactly to develop the fields.
.02 If you are developing software using the 6x10 grid, the following six-digit form ID codes are
used on Form 941, Schedule B, Schedule R, and Form 8974 for the first quarter of 2023.
•
“970122” for Form 941, page 1; “971222” for Form 941, page 2;
“970922” for Form 941,
page 3; “971020” for Form 941, page 4; “970311” for Schedule B; “971422” for Schedule R,
page 1; “971522” for Schedule R, page 2; and “970823” for Form 8974.
Y ou must always use the form ID code provided on the current form, with the first two digits
changed to “97” when using a 6x10 grid, for the applicable quarter for which you are creating
a substitute form, even if this revenue procedure is not superseded to reflect a change to a form
ID code.
Note. Maintain as much white space as possible around the form ID code. Do not allow
character strings to print adjacent to the code.

Bulletin No. 2023–13 587 March 27, 2023
•
Place all 6x10 grid boxes and entry spaces in the same field locations
as indicated on the
official forms.
•
Use single lines for “Employer Identification Number (EIN)” and other
entry areas in the
entity section of Form 941, pages 1, 2, and 3; Schedule B; Schedule R, pages 1 and 2; and
Form 8974.
•
Reverse type is not needed as shown on the official form.
•
Do not pre-print decimal points in the data boxes. However, where the
amounts are required,
the amounts should be printed with decimal points and place holders for cents.
•
Delete the pre-printed formatting in any “date” boxes.
•
Use a single box for “Personal Identification Number (PIN)” on Form
941.
•
You may delete all shading when using the 6x10 grid format.
.03 If producing both the form and the data or the form only, print your three-letter source code
at the bottom of Form 941, page 1; Schedule B; Schedule D; Schedule R, page 1; or Form 8974.
See Section 1.4.15.
.04 If producing only the data on the form, print your four-digit software industry vendor code
on Form 941. The four-digit vendor code preceded by four zeros and a slash (0000/9876) must
be pre-printed. If you have a valid vendor code issued to you through the National Association
of Computerized Tax Processors (NACTP), you should use that code. If you do not have a valid
vendor code, contact the NACTP via email at president@nactp.org for information on these codes.
.05 Print “For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment
Voucher.” at the bottom of Form 941, page 1.
.06 Print “For Paperwork Reduction Act Notice, see separate instructions.” at the bottom of
Schedule B and Schedule D.
.07 Print “For Paperwork Reduction Act Notice, see the separate instructions.” at the bottom of
Schedule R, page 1.
.08 Print “For Paperwork Reduction Act Notice, see the separate instructions.” at the bottom of
Form 8974.
.09 Be sure to print the OMB number in the same location as on the official forms on substitute
Form 941, Schedule B, Schedule D, Schedule R, and Form 8974.
.10 Do not print the form catalog number (“Cat. No.”) at the bottom of the forms or instructions.
.11 Do not print the Government Publishing Office (GPO) symbol at the bottom of the forms or
instructions.
.12 To ensure accurate scanning and processing, enter data on Form 941, Schedule B, Schedule D,
Schedule R, and Form 8974 as follows.

March 27, 2023 588 Bulletin No. 2023–13
•
Display/print the name and EIN on all pages and attachments in the
proper associated fields.
•
Use 12-point (minimum 10-point) Courier font (where possible).
•
Omit dollar signs. Commas are optional.
•
Except for Form 941, lines 1, 2, and 12, leave blank any data field with
a value of zero.
•
Enter negative amounts with a minus sign. For example, report
“-10.59” instead of “(10.59).”
Note. The IRS prefers that you use a minus sign for negative amounts instead of parentheses or
some other means. However, if your software only allows for parentheses in reporting negative
amounts, you may use them.
Section 1.6 – Specific Instructions for Schedule D
.01 To properly file and to reduce delays and contact from the IRS, Schedule D must be produced
as close as possible to the official form.
.02 Use Schedule D to explain why you have certain discrepancies. See the Instructions for
Schedule D for more information. In many cases, the information on Schedule D helps the IRS
resolve discrepancies without contacting you.
.03 If a substitute Schedule D is not submitted in similar format to the official IRS schedule, the
substitutes may be returned, you may be contacted by the IRS, delays in processing may occur,
and you may be subject to penalties.
Section 1.7 – Specific Instructions for Schedule R
.01 To properly file and to reduce delays and contact from the IRS, Schedule R and Continuation
Sheets for Schedule R must be produced as close as possible to the official form.
Note. Do not present the information in spreadsheet or similar format. We may not be able to
properly process nonconforming documents with an excessive number of entries. Complete as
many Continuation Sheets for Schedule R (Schedule R, page 2) as necessary. If Continuation
Sheets are not used or they vary in form from the official form, processing may be delayed and
you may be subject to penalties.
.02 Use Schedule R to allocate the aggregate information reported on Form 941 to each client. If
you have more than 5 clients, complete as many Continuation Sheets for Schedule R as necessary.
Attach Schedule R, including any Continuation Sheets, to your aggregate Form 941 and file it
with your return.

Bulletin No. 2023–13 589 March 27, 2023
Enter your business information carefully.
Make sure all information exactly matches the information shown on the aggregate Form 941.
Compare the total of each column on Schedule R, line 9 (including your information on line 8),
to the amounts reported on the aggregate Form 941. For each column total of Schedule R, the
relevant line from Form 941 is noted in the column heading. If the totals on Schedule R, line 9, do
not match the totals on Form 941, there is an error that must be corrected before submitting Form
941 and Schedule R.
.03 Do:
•
Develop and submit only conforming Schedules R;
•
Follow the format and fields exactly as on the official Schedule R, even
if this revenue
procedure is not superseded to reflect a change in a column heading on Schedule R; and
•
Maintain the same number of entry lines on the substitute Schedule R
as on the official form.
.04 Do not:
•
Add or delete entry lines;
•
Submit spreadsheets, database printouts, or similar formatted
documents instead of using the
Schedule R format to report data; and
•
Reduce or expand font size to add or delete extra data or lines.
.05 If substitute Schedules R and Continuation Sheets for Schedule R are not submitted in similar
format to the official schedule, the substitutes may be returned, you may be contacted by the IRS,
delays in processing may occur, and you may be subject to penalties.
Section 1.8 – Specific Instructions for Form 8974
.01 To properly file and to reduce delays and contact from the IRS, Form 8974 must be produced
as close as possible to the official form.
.02 Use Form 8974 only if you are claiming the qualified small business payroll tax credit for
increasing research activities.
.03 If a substitute Form 8974 is not submitted in similar format to the official IRS form, the
substitutes may be returned, you may be contacted by the IRS, delays in processing may occur,
and you may be subject to penalties.

March 27, 2023 590 Bulletin No. 2023–13
Section 1.9 – Office of Management and Budget (OMB) Requirements for Substitute Forms
.01 The Paperwork Reduction Act (the Act) of 1995 (P.L. 104-13) requires the following.
•
OMB approves all IRS tax forms that are subject to the Act.
•
Each IRS form contains the OMB approval number, if assigned. The
official OMB numbers
may be found on the official IRS-printed forms.
•
Each IRS form (or its instructions) states:
1. Why the IRS needs the information,
2. How it will be used, and
3. Whether or not the information is required to be furnished to the IRS.
.02 This information must be provided to any users of official or substitute IRS forms or instructions.
.03 The OMB requirements for substitute IRS forms are the following.
•
Any substitute form or substitute statement to a recipient must show the
OMB number as it
appears on the official form.
•
For Form 941, Schedule B, Schedule D, Schedule R, and Form 8974,
the OMB number (1545-
0029) must appear exactly as shown on the official form.
•
For Form 941, Schedule B, Schedule D, Schedule R, and Form 8974,
the OMB number must
use one of the following formats.
1. OMB No. 1545-0029 (preferred).
2. OMB # 1545-0029 (acceptable).
.04 If no instructions are provided to users of your forms, you must furnish to them the exact text
of the Privacy Act and Paperwork Reduction Act Notice.
Section 1.10 – Order Forms and Instructions
.01 You can order forms and instructions at IRS.gov/OrderForms.

Bulletin No. 2023–13 591 March 27, 2023
Section 1.11 – Effect on Other Documents
.01 Revenue Procedure 2022-15, 2022-13 I.R.B. 908, dated March 28, 2022, is superseded.
Section 1.12 – Helpful Information
.01 Please follow the specifications and guidelines to produce substitute Form 941, Schedule B,
Schedule D, Schedule R, and Form 8974.
.02 These forms are subject to review and possible changes, as required. Therefore, employers are
cautioned against overstocking supplies of privately printed substitutes.
.03 Here is a review of references that were listed throughout this document.
•
Form 941, Employer’s QUARTERLY Federal Tax Return.
•
Schedule B (Form 941), Report of Tax Liability for Semiweekly
Schedule Depositors (referred
to in this revenue procedure as “Schedule B”).
•
Schedule D (Form 941), Report of Discrepancies Caused by
Acquisitions, Statutory Mergers,
or Consolidations (referred to in this revenue procedure as “Schedule D”).
•
Schedule R (Form 941), Allocation Schedule for Aggregate Form 941
Filers (referred to in
this revenue procedure as “Schedule R”).
•
Form 8974, Qualified Small Business Payroll Tax Credit for Increasing
Research Activities.
•
Substitute territorial forms (941-PR, 941-SS, and Anexo B (Formulario
941-PR)).
•
Instructions for Form 941.
•
Instructions for Schedule B (Form 941).
•
Instructions for Schedule D (Form 941).
•
Instructions for Schedule R (Form 941).
•
Instructions for Form 8974.
•
Pub. 15, Employer’s Tax Guide.
• SCRIPS@IRS.gov for submissions.
• SubstituteForms@IRS.gov for questions.

March 27, 2023 592 Bulletin No. 2023–13
• For questions:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP:TP
5000 Ellin Road, Mail Stop C6-110
Lanham, MD 20706
• IRS.gov/DraftForms for draft forms.
• IRS.gov/Forms for final forms.
Section 1.13 – Exhibits

Bulletin No. 2023–13 593 March 27, 2023

March 27, 2023 594 Bulletin No. 2023–13

Bulletin No. 2023–13 595 March 27, 2023
13

March 27, 2023 596 Bulletin No. 2023–13
14

Bulletin No. 2023–13 597 March 27, 2023
15

March 27, 2023 598 Bulletin No. 2023–13
16

Bulletin No. 2023–13 599 March 27, 2023
17

March 27, 2023 600 Bulletin No. 2023–13
18

Bulletin No. 2023–13 601 March 27, 2023
19

March 27, 2023 602 Bulletin No. 2023–13
20

Bulletin No. 2023–13 603 March 27, 2023
21

March 27, 2023 604 Bulletin No. 2023–13
26 CFR 601.601: Rules and Regulations.
(Also Part I, §§ 4980H; 54.4980H)
Rev. Proc. 2023-17
SECTION 1. PURPOSE
This revenue procedure provides in-
dexing adjustments for the applicable dol-
lar amounts under § 4980H(c)(1) and (b)
(1) of the Internal Revenue Code. These
indexed amounts are used to calculate the
employer shared responsibility payments
(ESRP) under § 4980H(a) and (b)(1),
respectively.
SECTION 2. ADJUSTED ITEMS
Under § 4980H(c)(5), in the case of any
calendar year after 2014, the applicable
dollar amounts of $2,000 and $3,000 un-
der § 4980H(c)(1) and (b)(1), respective-
ly, are increased by an amount equal to the
product of such dollar amount and the pre-
mium adjustment percentage (as defined
in § 1302(c)(4) of the Patient Protection
and Affordable Care Act
1
) for the calendar
year. If the amount of any increase is not a
multiple of $10, such increase is rounded
to the next lowest multiple of $10.
The Department of Health and Human
Services (HHS) published the premium
adjustment percentage for 2024 on De-
cember 12, 2022, using the most recent
National Health Expenditure Accounts
(NHEA) income and premium data that
was available at the time of publication.
For calculation of the 2024 benefit year
payment parameters, HHS used the NHEA
Projections 2021-2030, the data source
that reflected the most recent projections
available. Using the NHEA Projections
2021-2030, the premium adjustment per-
centage for 2024 is the percentage (if any)
by which the NHEA Projections 2021-
2030 value for per enrollee ESI premiums
for 2023 ($7,292) exceeds the NHEA Pro-
jections 2021-2030 value for per enrollee
ESI premiums for 2013 ($4,894) carried
out to ten significant digits. Using this for-
mula, the applicable premium adjustment
percentage is 1.4899877401.
2
For calen-
dar year 2024, the adjusted $2,000 amount
under § 4980H(c)(1) is $2,970 ($2,000
x 1.4899877401 = $2,979.9754802
rounded down to $2,970), and the ad-
justed $3,000 amount under § 4980H(b)
(1) is $4,460 ($3,000 x 1.4899877401 =
$4,469.9632203 rounded down to $4,460).
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective for
taxable years and plan years beginning af-
ter December 31, 2023.
SECTION 4. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Jennifer Friedman of the Of-
fice of Associate Chief Counsel (Employ-
ee Benefits, Exempt Organizations, and
Employment Taxes). For further infor-
mation regarding this revenue procedure,
contact the Health and Welfare Branch
in the Office of Associate Chief Counsel
(Employee Benefits, Exempt Organiza-
tions, and Employment Taxes) at (202)
317-5500 (not a toll-free number).
1
Pub. L. 111–148, 124 Stat. 119 (2010).
2
See https://www.cms.gov/files/document/2024-papi-parameters-guidance-2022-12-12.pdf.

Bulletin No. 2023–13 605 March 27, 2023
26 CFR 301.7705: Applying for and maintaining certification as a certified professional employer organization.
Rev. Proc. 2023-18
TABLE OF CONTENTS
SECTION 1. BACKGROUND AND DEFINITIONS ............................................................606
.01 Nature of Changes ..............................................................................607
.02 Definitions ....................................................................................607
.03 Changes and request for comments .................................................................609
SECTION 2. PROCEDURES FOR APPLYING FOR CERTIFICATION AS A CPEO ..................................609
.01 Method of submission ...........................................................................609
.02 Controlled groups ...............................................................................609
.03 User fee .......................................................................................610
.04 Surety letter ...................................................................................610
.05 Submission of annual audited financial statements, CPA opinion, and statement of working capital ...............610
.06 Submission of quarterly assertions, attestations, and working capital statements ..............................611
SECTION 3. SUITABILITY AND TAX-COMPLIANCE CHECK .................................................612
SECTION 4. STANDARDS FOR GRANTING CERTIFICATION AS A CPEO .......................................612
.01 Eligibility for certification must be established in the application ..........................................612
.02 Incomplete or inaccurate application ................................................................612
.03 Even if an application is complete, additional information may be required ..................................612
.04 CPEO applicant must notify IRS of material changes relevant to its application for certification .................613
SECTION 5. WITHDRAWAL OF APPLICATION ..............................................................613
.01 Application may be withdrawn ....................................................................613
.02 Information may be used in subsequent examination ...................................................613
SECTION 6. NOTICE OF CERTIFICATION ..................................................................613
.01 Notice of certification ............................................................................613
.02 Proof of bond ..................................................................................613
.03 Effective date of certification ......................................................................613
.04 Disclosure of organizations certified as CPEOs ........................................................613
SECTION 7. DENIAL OF CERTIFICATION ..................................................................613
.01 Notice of proposed denial .........................................................................613
.02 Circumstances in which denial is final, with no opportunity for review .....................................613
.03 Request for review of a notice of proposed denial ......................................................614
.04 Notice of final denial where no request for review of the proposed denial is submitted .........................614
.05 How the IRS handles a request for review ............................................................614
.06 Consideration by OPR ...........................................................................615
.07 A request for review may be withdrawn ..............................................................615
SECTION 8. PROCEDURES FOR MAINTAINING CERTIFICATION AS A CPEO ...................................615
.01 In general .....................................................................................615
.02 Annual verification ..............................................................................615
.03 Bond requirements ..............................................................................616
.04 Submission of annual audited financial statements .....................................................617
.05 Submission of quarterly assertions, attestations, and working capital statements ..............................618
.06 Reporting Requirements ..........................................................................618

March 27, 2023 606 Bulletin No. 2023–13
SECTION 9. SUSPENSION AND REVOCATION OF CPEO CERTIFICATION ......................................621
.01 In general .....................................................................................621
.02 Specific failures resulting in suspension and proposed revocation .........................................622
.03 Notice of suspension and proposed revocation ........................................................622
.04 Notice of final revocation issued if no request for review of the proposed revocation is submitted ................623
.05 How the IRS handles a request for review of the proposed revocation ......................................623
.06 Consideration by OPR ...........................................................................624
.07 A request for review may be withdrawn ..............................................................624
.08 Notice of final revocation .........................................................................624
.09 Consequences of revocation .......................................................................625
.10 Reapplication after revocation .....................................................................625
SECTION 10. VOLUNTARY TERMINATION ................................................................625
.01 Notice of voluntary termination ....................................................................625
.02 Notice of termination sent to customers by IRS ........................................................625
.03 Effect of voluntary termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .625
.04 Reapplication after voluntary termination ............................................................625
SECTION 11. EFFECTIVE DATE ..........................................................................625
SECTION 12. PAPERWORK REDUCTION ACT
..............................................................625
SECTION 13. DRAFTING INFORMATION ..................................................................626
SECTION 1. BACKGROUND AND
DEFINITIONS
The Stephen Beck, Jr., Achieving a Bet-
ter Life Experience (ABLE) Act of 2014,
enacted on December 19, 2014, as part of
the Tax Increase Prevention Act of 2014
(Pub. L. 113-295), added sections 3511
and 7705 to the Internal Revenue Code
(Code) relating to the certification require-
ments for, and the federal employment tax
consequences of being, a certified pro-
fessional employer organization (CPEO).
The ABLE Act requires the establishment
of a voluntary program for persons to ap-
ply to the Internal Revenue Service (IRS)
to become certified as a CPEO. On May
6, 2016, the Department of the Treasury
(Treasury Department) and the IRS pub-
lished final and temporary regulations un-
der section 7705 (TD 9768) in the Federal
Register (81 FR 27315, as corrected July
12, 2016, at 81 FR 45012) that describe
the application process and certification
requirements necessary for a person to be-
come and remain a CPEO. On the same
date, the Treasury Department and the IRS
published a notice of proposed rulemak-
ing (REG-127561-15) in the Federal Reg-
ister (81 FR 27360) cross-referencing
the temporary regulations and proposing
additional regulations under section 3511
that describe the federal employment tax
consequences of becoming a CPEO for
CPEOs and their customers.
On June 3, 2016, Revenue Procedure
2016-33 (2016-25 I.R.B. 1034) was is-
sued, providing procedures for applying
to be certified as a CPEO. To address sev-
eral comments received in response to the
temporary and proposed regulations and
Revenue Procedure 2016-33 that required
prompt attention, the Treasury Department
and the IRS issued Notice 2016-49 (2016-
34 I.R.B. 265) on August 5, 2016. The
Treasury Department and the IRS also is-
sued Revenue Procedure 2017-14 (2017-3
I.R.B. 426) on December 29, 2016, which
addressed the requirements for a CPEO to
remain certified and the procedures relat-
ing to suspension and revocation of CPEO
certification. Final regulations under sec-
tions 3511 and 7705 (TD 9860) describ-
ing the certification requirements neces-
sary for a person to become and remain
a CPEO, and the federal employment tax
consequences of being a CPEO, which in-
corporated changes from Notice 2016-49,
were published in the Federal Register (84
FR 24367) on May 28, 2019.
This revenue procedure modifies and
supersedes both Rev. Proc. 2016-33 and
Rev. Proc. 2017-14. It addresses the pro-
cedures for applying to be certified as a
CPEO, the requirements for a CPEO to
remain certified, and the procedures relat-
ing to suspension and revocation of CPEO
certification. This revenue procedure con-
solidates the ongoing requirements artic-
ulated in Rev. Proc. 2016-33, as modified
by Notice 2016-49, Rev. Proc. 2017-14,
and the regulations under sections 3511
and 7705. In addition, it reflects changes
in the ongoing operations of the CPEO
program, including updates to the IRS
Online Registration System, since Rev.
Proc. 2016-33 and Rev. Proc. 2017-14
were issued, and changes in response to
comments and questions received from
CPEOs and CPEO applicants.
The IRS received several written com-
ments in response to the proposed and
temporary regulations, Rev. Proc. 2016-
33, Rev. Proc. 2017-14, and Notice 2016-

Bulletin No. 2023–13 607 March 27, 2023
49. While all relevant comments were
considered and addressed in the final reg-
ulations, some comments were beyond the
scope of the regulations. When appropri-
ate, comments not addressed in the final
regulations because they were beyond the
scope of the regulations were considered
in the drafting of this revenue procedure.
.01 Nature of Changes. This revenue
procedure provides clarifications and
substantive changes to the procedures
outlined in Rev. Proc. 2016-33 and Rev.
Proc. 2017-14. Specifically, this revenue
procedure:
(1) Expands and defines the role of the
application submitter in order to make
application processing, document and
information submission, and other com-
munications with respect to the CPEO
applicant or CPEO more efficient. Be-
cause of this expanded role, this revenue
procedure also further clarifies who can
be an application submitter. Rev. Proc
2016-33, section 2.01, provided that the
individual submitting the online applica-
tion for CPEO certification on behalf of
the CPEO applicant must be authorized
by section 6103(e) to inspect the return
of the CPEO applicant. Furthermore, Rev.
Prov. 2017-14, section 2.01, provided that
the individual submitting information
and documents on behalf of the CPEO
through the CPEO’s online account must
be authorized by section 6103(e) to in-
spect the returns and return information of
the CPEO. Under this revenue procedure,
an application submitter must either hold
a position specified in section 1.02(1)
1
or
have a valid Form 2848, Power of Attor-
ney and Declaration of Representative, for
the CPEO applicant or CPEO on file with
the IRS.
(2) Provides updates to the procedures
for a denial of CPEO certification and for
the suspension and proposed revocation
of a certification—specifically, proce-
dures concerning what information the
IRS CPEO program office will consider
when reviewing a CPEO applicant’s or
CPEO’s request for review and when this
information should be submitted. Further,
additional detail is provided concerning
review by the IRS Office of Profession-
al Responsibility (OPR), including rules
prohibiting most communications be-
tween OPR and the IRS CPEO Program
Office and between OPR and the CPEO
applicant or CPEO during OPR’s review.
(3) Provides information on how
CPEOs should submit Form 8973, Certi-
fied Professional Employer Organization/
Customer Reporting Agreement, unsigned
by a client, for CPEOs that occasionally
experience difficulty in obtaining a sig-
nature on Form 8973 from a client sub-
ject to a service agreement described in
§ 31.3504-2(b)(2).
(4) Provides additional details concern-
ing the CPEO applicant’s and CPEO’s use
of the IRS Online Registration System ac-
count, including a requirement that CPEO
applicants and CPEOs that are members
of a controlled group in which more than
one member of the controlled group is a
CPEO applicant or CPEO must create a
controlled group license within the IRS
Online Registration System.
(5) Clarifies that as part of an exam-
ination level attestation indicating that the
CPEO or CPEO applicant failed to with-
hold or make deposits in certain immate-
rial aspects, the CPEO or CPEO applicant
may include an explanation not only as
to why the failures were immaterial, but
also how the failures were addressed, if
applicable.
(6) Provides updates to the fingerprint
procedures for responsible individuals.
Specifically, all responsible individuals
are now required to submit fingerprints
electronically using Fieldprint. Finger-
print submissions on Form FD-258 will
no longer be processed. All current re-
sponsible individuals will have until
June 1, 2023, to submit new fingerprints
electronically.
.02 Definitions. For purposes of this
revenue procedure—
(1) Application Submitter. The term
“application submitter” means the indi-
vidual who is submitting an application
on behalf of a CPEO applicant and any
other individual submitting information
and documents to the IRS on behalf of
a CPEO. Except as provided in this sec-
tion 1.02(1), the application submitter
must be a partner or limited partner if the
CPEO applicant or CPEO is a partner-
ship; the president, vice president, secre-
tary, treasurer, chief accounting officer,
any tax officer (including Controller), 1%
shareholder (corporation), or shareholder
(S-corporation) if the CPEO applicant or
CPEO is a corporation or S-corporation;
or owner or sole proprietor if the CPEO
applicant or CPEO is a sole proprietor-
ship. An individual who does not occupy
one of these positions must have a valid
Form 2848, Power of Attorney and Dec-
laration of Representative, for the CPEO
applicant or CPEO on file with the IRS in
order to be the application submitter.
(2) Controlled Group. The term “con-
trolled group” means any group of cor-
porations or trades or businesses under
common control within the meaning of
section 414(b) and (c), and §§ 1.414(b)-1
and 1.414(c)-1 through 1.414(c)-6 of the
Treasury Regulations.
(3) Certified Public Accountant. The
term “certified public accountant” (CPA)
means a certified public accountant who--
(a) With respect to a CPEO or CPEO
applicant, is independent of the CPEO
or CPEO applicant (as prescribed by the
American Institute of Certified Public Ac-
countants’ Professional Standards, Code
of Professional Conduct, and its interpre-
tations and rulings);
(b) Is not currently under suspension or
disbarment from practice before the IRS;
(c) Is duly qualified to practice in any
state; and
(d) Files with the IRS a written decla-
ration that the CPA is currently qualified
as a CPA.
(4) Covered Employee. The term “cov-
ered employee” means, with respect to
a customer, any individual (other than a
self-employed individual, as defined in
section 1.02(18)) who performs services
for the customer and who is covered by
a CPEO contract between the CPEO and
the customer.
(5) CPEO. The term “CPEO” means a
person that has been certified by the Com-
missioner as meeting the requirements
of § 301.7705-2, this revenue procedure,
instructions in the online application, and
any applicable subsequent guidance, and
whose certification has not been revoked
or voluntarily terminated.
1
Unless otherwise indicated, all references to sections in this document refer to sections of this revenue procedure.

March 27, 2023 608 Bulletin No. 2023–13
(6) CPEO Applicant. The term “CPEO
applicant” means a person that submits
or has submitted an application to be
certified as a CPEO in accordance with
§ 301.7705-2, this revenue procedure,
the instructions in the online application,
and any applicable subsequent guidance.
A CPEO applicant remains a CPEO appli-
cant until the CPEO applicant is certified
(meaning the CPEO applicant receives a
notice of certification described in section
6.01 and timely and correctly submits a
proof of bond, as described in section
6.02); withdraws its application; or re-
ceives a notice of final denial, as described
in section 7.04.
(7) CPEO Contract. The term “CPEO
contract” means a service contract be-
tween a CPEO and a customer that satis-
fies the requirements in section 7705(e)(2)
and § 301.7705-1(b)(3).
(8) Customer. The term “custom-
er” means any person who enters into a
CPEO contract with a CPEO, except that
a provider of employment-related services
that uses its own employer identification
number (EIN) for filing federal employ-
ment tax returns on behalf of its clients (or
that used its own EIN for filing its clients’
returns immediately prior to entering into
a CPEO contract with the CPEO) is not
a customer, even if it has entered into a
CPEO contract with the CPEO.
(9) Federal Employment Taxes. The
term “federal employment taxes” means
the taxes imposed by subtitle C of the
Code.
(10) Guidance. The term “guidance”
includes guidance published in the Feder-
al Register or Internal Revenue Bulletin,
as well as administrative guidance such as
forms, instructions, publications, or other
guidance on IRS.gov.
(11) IRS Online Registration System.
The term “IRS Online Registration Sys-
tem” means the system made available by
the IRS on IRS.gov and used by CPEO
applicants and CPEOs to apply for and
maintain certification, and by responsi-
ble individuals of CPEO applicants and
CPEOs to create a Responsible Individual
Personal Attestation. To apply for certifi-
cation, CPEO applicants must create an
account on the IRS Online Registration
System, and CPEO applicants must use
this account to provide the IRS with the
information and supporting documenta-
tion necessary to obtain certification. A
CPEO must use its IRS Online Registra-
tion System account to annually verify
information previously submitted, to pro-
vide updates that reflect material changes
to previously submitted information, and
to comply with annual and quarterly pro-
gram requirements. Responsible individu-
als of CPEO applicants and CPEOs must
use the IRS Online Registration System to
create a Responsible Individual Personal
Attestation (RIPA), through which they
provide the information necessary for
their CPEO applicants and CPEOs to ob-
tain and maintain certification. See section
2.02 for a discussion of controlled group
licenses and their use on the IRS Online
Registration System.
(12) Online Application. The term
“online application” means the electronic
submission by a CPEO applicant and its
responsible individuals of all information
required by the CPEO application for cer-
tification on the IRS Online Registration
System, as well as the accompanying
forms and documentation required by
§ 301.7705-2, this revenue procedure, and
any applicable subsequent guidance.
(13) Precursor Entity. The term “pre-
cursor entity” means an entity described
in § 301.7705-1(b)(10).
(14) Qualified Surety. The term “quali-
fied surety” means a surety that meets the
requirements of § 301.7705-2(g)(6).
(15) Related Entity. The term “relat-
ed entity” means an entity described in
§ 301.7705-1(b)(12).
(16) Responsible Individual. The term
“responsible individual” means an indi-
vidual described in § 301.7705-1(b)(13).
(17) Responsible Individual Person-
al Attestation. The term “Responsible
Individual Personal Attestation” (RIPA)
means the attestation a responsible indi-
vidual must submit through the IRS On-
line Registration System as a prerequisite
to the organization submitting a CPEO
application via the IRS Online Registra-
tion System. The RIPA contains informa-
tion that will allow the IRS to perform
a suitability check on the responsible
individual.
(18) Self-Employed Individual. The
term “self-employed individual” means an
individual with net earnings from self-em-
ployment (as defined in section 1402(a)
and without regard to the exceptions
thereunder) derived from providing ser-
vices covered by a CPEO contract, wheth-
er the net earnings from self-employment
are derived from providing services as a
non-employee to a customer of the CPEO,
from the individual’s own trade or busi-
ness as a sole proprietor customer of the
CPEO, or as an individual who is a partner
in a partnership that is a customer of the
CPEO, but in each case only with regard
to those net earnings.
(19) Work Site. The term “work site”
means a physical location at which an in-
dividual regularly performs services for
a customer of a CPEO or, if there is no
physical location at which an individual
regularly performs services for a customer
of a CPEO, the location from which the
customer assigns work to the individual.
A work site may not be the individual’s
residence or a telework site unless the
customer requires the individual to work
at that site. For purposes of this section
1.02(19), work sites that are contiguous
locations will be treated as a single phys-
ical location and thus a single work site,
and noncontiguous locations will be treat-
ed as separate physical locations and thus
separate work sites, except as provided in
the next sentence. A CPEO customer may
treat noncontiguous locations as a single
physical location and thus a single work
site if each of the locations is separated by
less than 35 miles from every other loca-
tion in the single work site, and all loca-
tions in the single work site operate in the
same industry. For purposes of the preced-
ing sentence, the determination of the in-
dustry of a work site is based on the nature
of the CPEO customer’s work at that work
site, irrespective of work performed by
other entities at the same site. When treat-
ing noncontiguous locations as a single
physical location and thus a single work
site, a noncontiguous location cannot be
included in more than one work site.
(20) Work Site Employee. The term
“work site employee” means, with respect
to a customer, a covered employee who
performs services for the customer at a
work site where, at any time during a cal-
endar quarter, at least eighty-five percent
of the individuals performing services for
the customer are covered employees of
the customer. To be a work site employee,
a covered employee regularly perform-
ing services for a customer at a work site

Bulletin No. 2023–13 609 March 27, 2023
during a calendar quarter is not required
to be performing services for the customer
at the time the work site coverage require-
ment is met at that work site.
(a) Solely for purposes of determining
whether the eighty-five percent threshold
described in this section 1.02(20) is met,
a self-employed individual described in
section 1.02(18) is treated as a covered
employee if the individual is performing
services at the work site and would be a
covered employee but for the exclusion of
self-employed individuals from the defi-
nition of a covered employee in section
1.02(4).
(b) In determining whether the eighty-
five percent threshold is met, an individual
who is an excluded employee described in
section 414(q)(5) is not treated as either an
individual providing services or covered
employee.
(c) A covered employee will be consid-
ered a work site employee for the entirety
of a calendar quarter with respect to all
services performed for a customer at one
or more work sites if the employee quali-
fies as a work site employee with respect
to the customer at any work site during
that calendar quarter.
(d) The determination of whether a
work site meets the eighty-five percent
threshold is made separately with respect
to each customer of a CPEO and with
respect to each work site of a customer.
However, a covered employee may be
determined to be a work site employee of
more than one work site during a calendar
quarter.
(e) A CPEO’s determination that a cov-
ered employee is a work site employee
will be respected if the CPEO has made
a good faith determination that the cov-
ered employee meets the requirements
of section 7705(e), § 301.7705-1(b)(17),
this section 1.02(20), and any applicable
subsequent guidance related to work site
employee determinations.
.03 Changes and request for comments.
This revenue procedure may be updated
periodically to improve CPEO program
procedures. The IRS solicits comments on
this revenue procedure and the adminis-
tration of the CPEO program. Comments
on whether additional guidance is need-
ed due to ongoing changes in workforce
practices that have in part resulted from
the COVID-19 pandemic as those changes
relate to the definition of work site or work
site employee are specifically requested
and should be submitted by June 9, 2023.
All comments will be available for public
inspection and copying. Comments may
be submitted in one of two ways:
(1) Mail. Send paper submissions to:
CC:PA:LPD:PR (RP-2023-18), Room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
(2) Electronically. Submit electronic
submissions via the Federal eRulemaking
Portal at www.regulations.gov (indicate
IRS and RP-2023-18) by following the on-
line instructions for submitting comments.
Once submitted to the Federal eRulemak-
ing Portal, comments cannot be edited or
withdrawn. Commenters are strongly en-
couraged to submit public comments elec-
tronically. The Treasury Department and
the IRS will publish for public availability
any comment submitted electronically,
and to the extent practicable on paper, to
its public docket.
SECTION 2. PROCEDURES FOR
APPLYING FOR CERTIFICATION AS
A CPEO
.01 Method of submission. A person
seeking certification as a CPEO must
electronically submit through its IRS
Online Registration System account a
properly completed and executed online
application for CPEO certification and all
accompanying forms and documentation
required by § 301.7701-2, this revenue
procedure, the instructions in the online
application, and any applicable subse-
quent guidance. Paper submissions will
not be accepted and will be treated as an
incomplete application as described in
section 4.02. Except as otherwise pro-
vided in this revenue procedure or the in-
structions in the online application, doc-
uments required to be submitted after the
application is submitted must also be sub-
mitted electronically through the CPEO
applicant’s IRS Online Registration Sys-
tem account. Only an application submit-
ter can submit the online application for
CPEO certification and all accompanying
forms and documentation. In addition,
each of the CPEO applicant’s responsible
individuals must electronically submit a
properly completed and executed RIPA at
the time and in the manner described in
the instructions in the online application.
2

As of June 1, 2022, responsible individ-
uals must also submit fingerprints elec-
tronically using Fieldprint, or by another
method permitted in the instructions in
the online application. Fingerprint sub-
missions on an FD-258, Fingerprint Card,
will no longer be processed. All current
CPEO responsible individuals will have
until June 1, 2023, to submit new fin-
gerprints electronically. For more infor-
mation on the electronic fingerprinting
process, including scheduling an appoint-
ment, see Publication 5249, Fingerprint
Card Instructions for Voluntary Certifi-
cation of Professional Employer Orga-
nizations. For more information on how
to electronically submit the information
and documents required in this revenue
procedure, see instructions in the online
application or responsible individual’s
RIPA accessible through the CPEO’s IRS
Online Registration System account.
.02 Controlled groups. If more than
one member of a controlled group seeks to
be certified as a CPEO, each such member
must submit a separate online application.
Members of a controlled group may not
apply jointly on one online application.
However, CPEOs and CPEO applicants
that are members of a controlled group in
which more than one member is a CPEO
or CPEO applicant must create a con-
trolled group license within the IRS On-
line Registration System. The controlled
group license will formalize the link be-
tween members of the controlled group
in the system and will allow for certain
documents to be submitted only once for
all CPEO and CPEO applicant members
in the controlled group. See sections 2.04,
2.05(6), and 2.06(5) for details regarding
the necessary documentation relating to
the bond and financial review require-
2
Once the RIPA is submitted, the information contained in the RIPA becomes return information, under section 6103, of the CPEO applicant and may be disclosed to the CPEO applicant if
the IRS determines that the disclosure will not seriously impair federal tax administration.

March 27, 2023 610 Bulletin No. 2023–13
ments that CPEO applicants that are mem-
bers of a controlled group must submit.
.03 User fee. Consistent with section
7528(b)(4), upon submission of the online
application for certification through the
IRS Online Registration System, the ap-
plication submitter will be automatically
directed to pay a user fee in the amount of
$1,000. No CPEO application will be pro-
cessed until the IRS receives the user fee.
Once processing of the application has be-
gun, the user fee will not be returned, even
if the application is withdrawn or denied.
.04 Surety letter. With its online ap-
plication, a CPEO applicant must submit
through its IRS Online Registration Sys-
tem account a signed letter from a qualified
surety confirming that the surety agrees to
issue a bond to the CPEO applicant if and
when it is certified as a CPEO (a “surety
letter”). The surety letter must also state
that the surety agrees to issue a bond in the
amount required by § 301.7705-2(g)(2)
and pursuant to the terms set forth in Form
14751, Certified Professional Employer
Organization Surety Bond. If a CPEO ap-
plicant is a member of a controlled group
of which other members are CPEO appli-
cants or CPEOs, the surety letter must also
contain the name and EIN of each CPEO
applicant and each CPEO that is or will be
covered by the bond. All CPEO members
of a controlled group are required to be
on the same bond in the amount required
by § 301.7705-2(g)(2), applied as if all
such CPEO members (and any of their
precursor entities, if applicable) were one
organization.
.05 Submission of annual audited fi-
nancial statements, CPA opinion, and
statement of working capital.
(1) Copy of annual audited financial
statements. With its online application, a
CPEO applicant must submit through its
IRS Online Registration System account a
copy of its annual audited financial state-
ments for the most recently completed
fiscal year, except as provided in the next
sentence. If a CPEO applicant submits
its application before the last day of the
sixth month following its most recent-
ly completed fiscal year, and the audit
of the financial statements for that fiscal
year has not been completed at the time
it submits its application, the CPEO ap-
plicant must provide with its application
the annual audited financial statements for
the fiscal year immediately preceding the
most recently completed fiscal year, and
the CPEO applicant must subsequently
provide to the IRS the annual audited fi-
nancial statements for the most recently
completed fiscal year by the last day of the
sixth month after such fiscal year ends. In
addition, for any fiscal year that ends after
the CPEO applicant submits its applica-
tion for certification and on or before the
effective date of certification, the CPEO
applicant must provide the annual audit-
ed financial statements by the last day of
the sixth month after such fiscal year ends.
The obligations described in this section
2.05(1) continue even if the CPEO appli-
cant is certified as a CPEO before the IRS
has received the annual audited financial
statements. See section 8.04 for obliga-
tions concerning annual audited financial
statements that continue after certification.
(2) CPA opinion. With each of these
annual audited financial statements, the
CPEO applicant must submit an opinion
of a CPA that the financial statements are
presented fairly and in accordance with
generally accepted accounting principles
(GAAP). The CPA opinion must be an
unmodified opinion (i.e., it cannot be a
qualified opinion, an adverse opinion, or
a disclaimer of opinion), accompanied by
a written and signed declaration that the
CPA is currently qualified as a CPA.
(3) Working capital statement. Each
of the annual audited financial statements
submitted to the IRS must include a state-
ment in the Note to the Financial State-
ments covered by the CPA opinion that the
CPEO applicant’s annual audited financial
statements reflect positive working capi-
tal or, only if the CPEO applicant satisfies
the requirements of section 2.05(4) of this
section, reflect negative working capital.
The statement must set forth a detailed
calculation of the CPEO applicant’s work-
ing capital as reflected in the annual audit-
ed financial statements (a working capital
statement).
(4) Exception for negative working cap-
ital. A CPA statement described in section
2.05(3) may state that a CPEO applicant’s
annual audited financial statements reflect
negative working capital, but in that case
the statement will meet the requirements
of section 2.05(3) only if--
(a) The CPEO applicant has negative
working capital for no more than two con-
secutive fiscal quarters of the fiscal year,
as demonstrated by the required annual
audited financial statements, or the state-
ments described in section 2.06(3), or the
submission of quarterly unaudited finan-
cial statements;
(b) The CPEO applicant provides with
the statement a detailed calculation of its
negative working capital and an explana-
tion to the IRS describing the reason for
the failure to demonstrate positive work-
ing capital; and
(c) The IRS determines, in its sole dis-
cretion, that the failure to demonstrate
positive working capital does not present
a material risk to the IRS’s collection of
federal employment taxes. The determina-
tion of whether the failure to demonstrate
positive working capital presents a mate-
rial risk to the IRS’s collection of federal
employment taxes may depend, in part, on
whether the CPEO applicant has identified
facts and circumstances that will result in
positive working capital in the near future.
(5) Newly established CPEO appli-
cants. A CPEO applicant that was not op-
erating as a provider of payroll services for
all or part of the most recently completed
fiscal year as of the date it applies for cer-
tification must also provide for the entity
or entities listed in section 2.05(5)(a) and
(b) a copy of each entity’s audited finan-
cial statements for the most recently com-
pleted fiscal year, subject to the exception
provided in section 2.05(1), accompanied
by an unmodified opinion of a CPA that
such financial statements are presented
fairly and in accordance with GAAP, and
including a statement in the Note to the Fi-
nancial Statements that the annual audited
financial statements reflect positive work-
ing capital or, only if the requirements of
section 2.05(4) are met (as applied to the
entity), reflect negative working capital,
with the statement in either case setting
forth in detail a calculation of the entity’s
working capital as reflected in the finan-
cial statements. The entity or entities for
which this information is required are:
(a) Any precursor entity of the CPEO
applicant; or
(b) If the CPEO applicant does not
have a precursor entity, any related entity
described in § 301.7705-1(b)(12)(ii)(B).
(6) Annual Audited Financial state-
ments for controlled groups. In satisfac-
tion of the requirement in section 2.05(1),

Bulletin No. 2023–13 611 March 27, 2023
if a CPEO applicant is a member of a
controlled group of which other members
are also CPEO applicants or CPEOs, the
CPEO applicant must submit copies of
combined or consolidated annual audited
financial statements for all CPEO appli-
cants and CPEOs in the controlled group,
with an accompanying unmodified opin-
ion of a CPA that such financial statements
are presented fairly and in accordance
with GAAP. The combined or consoli-
dated annual audited financial statements
may, but are not required to, also include
all members of the controlled group that
are not CPEO applicants or CPEOs. The
statements and opinion must contain the
name and EIN of each CPEO applicant
and CPEO in the controlled group. If the
statements and opinion include members
of the controlled group that are not CPEOs
or CPEO applicants, the name and EIN of
these members must also be included. Al-
though the CPEO applicant is not required
to provide a copy of its separate financial
statements as part of its application, if the
financial position of a CPEO applicant is
unclear from the combined or consolidat-
ed financial statements of the controlled
group of which the CPEO applicant is a
member, the IRS may request addition-
al financial information that is needed to
evaluate the CPEO applicant’s financial
position, such as the annual balance sheet,
income statement, and statement of cash
flow, of the individual CPEO applicant.
Notwithstanding the foregoing, and as
required by section 2.05(3), the annual
audited financial statement submitted by
a CPEO applicant that is a member of a
controlled group of which other members
are also CPEO applicants or CPEOs must
include a statement in the Note to the Fi-
nancial Statements that each individual
CPEO applicant’s financial statements
reflect positive working capital or, if the
requirements of section 2.05(4) are met,
reflect negative working capital, with each
statement in either case setting forth in de-
tail a calculation of the individual CPEO
applicant’s working capital. For purposes
of the requirements of section 2.05(4), if
it is unclear whether the CPEO applicant
has positive or negative working capital
for the last quarter of the fiscal year based
on the combined or consolidated finan-
cial statements of the controlled group of
which the CPEO applicant is a member,
the IRS may request additional financial
information on an individual CPEO ap-
plicant basis. The status of other CPEO
applicants and CPEOs in the controlled
group is not affected if the CPEO appli-
cant is denied certification because the
annual audited financial statements re-
flect that the CPEO applicant has negative
working capital and the CPEO applicant
fails to meet the exception described in
section 2.05(4).
(7) Fiscal year. A fiscal year will be
considered completed once the last day
of that fiscal year has ended, regardless of
whether the CPEO applicant was in oper-
ation or certified for all 12 months of the
fiscal year or the fiscal year consisted of
fewer than 12 months.
.06 Submission of quarterly assertions,
attestations, and working capital state-
ments. For the most recently completed
calendar quarter as of the date of its ap-
plication for certification, a CPEO appli-
cant must submit through its IRS Online
Registration System account an assertion,
as described in section 2.06(1), that it has
withheld and made deposits of all federal
employment taxes for which the CPEO
applicant is liable for the quarter; an ex-
amination level attestation from a CPA, as
described in section 2.06(2), stating that
this assertion is fairly stated in all material
respects; and a statement verifying that the
CPEO applicant has positive working cap-
ital, as described in section 2.06(3). The
CPEO applicant must continue to provide
this documentation for every subsequently
completed calendar quarter during which
its application for certification is pending
for some or all of the quarter. This doc-
umentation must be provided by the last
day of the second month after the end of
each subsequent quarter, even if the CPEO
applicant receives its certification before
this deadline.
(1) Assertion. The assertion must be
signed under penalties of perjury by a re-
sponsible individual of the CPEO appli-
cant and state that the CPEO applicant has
withheld and made deposits of all federal
employment taxes for the calendar quar-
ter as required by subtitle C of the Code
(except that federal employment taxes im-
posed by chapter 23 are not required to be
included in the assertion).
(2) Examination level attestation. The
examination level attestation from a CPA
must state that the assertion described in
section 2.06(1) is fairly stated in all ma-
terial respects and complies with the re-
quirements of the American Institute of
Certified Public Accountants’ Statements
of Standards for Attestation Engagements,
including the specific requirements for
Examination Reports. The attestation must
be accompanied by a written declaration,
signed by the CPA or the accounting firm
where the CPA is employed or is an own-
er, or with which the CPA is otherwise af-
filiated, that the CPA is currently qualified
as a CPA. A CPEO applicant will not fail
to meet the requirements of this section
2.06(2) if the examination level attesta-
tion indicates that the CPEO applicant has
failed to withhold or make deposits in cer-
tain immaterial respects, provided that--
(a) The attestation provides a summary
of the immaterial failures that were found;
(b) The attestation states that, and ex-
plains why, the failures were immaterial
and isolated (including how the failures
were addressed, if applicable) and do not
reflect a meaningful lapse in compliance
with federal employment tax withholding
and deposit requirements; and
(c) The IRS determines, in its sole dis-
cretion, that the isolated and immaterial
failures identified by the CPA do not pres-
ent a material risk to the IRS’s collection
of federal employment taxes.
(3) Statement of positive working capi-
tal. The statement verifying positive work-
ing capital must be signed by a responsi-
ble individual under penalties of perjury
and verify that the CPEO applicant has
positive working capital (as defined by
GAAP) with respect to the most recently
completed fiscal quarter. The statement
must include a detailed calculation of the
CPEO applicant’s working capital and be
accompanied by a copy of the CPEO ap-
plicant’s unaudited financial statements
for the most recently completed fiscal
quarter, if such statements are available. A
CPEO applicant will not fail to meet the
requirements of this section 2.06(3) as a
result of having negative working capital
at the end of the fiscal quarter if--
(a) The CPEO applicant does not have
negative working capital at the end of each
of the two fiscal quarters immediately pre-
ceding such fiscal quarter, as demonstrat-
ed by the required annual audited finan-
cial statements described in section 2.05

March 27, 2023 612 Bulletin No. 2023–13
or the statements described in this section
2.06(3), or the submission of quarterly un-
audited financial statements;
(b) The CPEO applicant provides a de-
tailed calculation of its negative working
capital, unaudited financial statements for
the quarter, if available, and an explana-
tion to the IRS describing the reason for
negative working capital; and
(c) The IRS determines, in its sole dis-
cretion, that the negative working capi-
tal does not present a material risk to the
IRS’s collection of federal employment
taxes. The determination of whether the
failure presents a material risk to the
IRS’s collection of federal employment
taxes may depend, in part, on whether the
CPEO applicant has identified facts and
circumstances that will result in positive
working capital in the near future.
(4) CPEO applicant with precursor
entity. If a CPEO applicant was not op-
erating as a provider of employment-re-
lated services for all or part of the most
recently completed calendar quarter as of
the date of its application for certification
or during any calendar quarter that ends
while its application for certification is
pending, the CPEO applicant must pro-
vide the assertion, examination level at-
testation, and working capital statement
described in this section 2.06 with respect
to any precursor entity, if applicable.
The information required by this section
2.06(4) must be provided by the last day
of the second month after the end of each
applicable calendar quarter, beginning
with the most recently completed calendar
quarter as of the date of the application (or
as of the date the entity became a precur-
sor entity while the application was pend-
ing) and for all subsequent quarters while
the application is pending and the CPEO
applicant is not operating as a provider of
employment-related services for all or any
portion of a quarter.
(5) Quarterly assertions, attestations,
and working capital statements for con-
trolled groups. In satisfaction of the re-
quirement in this section 2.06, if a CPEO
applicant is a member of a controlled
group of which other members are CPEO
applicants or CPEOs, the CPEO applicant
must submit the quarterly assertions and
attestations described in this section 2.06
for all CPEO applicants and CPEOs in the
controlled group on a combined or consol-
idated controlled group basis, rather than
for the CPEO applicant individually. The
quarterly assertions and attestations must
include the name and EIN of each CPEO
and CPEO applicant in the controlled
group. However, the quarterly working
capital statement described in section
2.06(3) must relate to the CPEO appli-
cant alone and must not be prepared on a
combined or consolidated basis with oth-
er members of the controlled group. For
purposes of the requirements of section
2.06(3), if it is unclear whether the CPEO
applicant has positive or negative working
capital for the last quarter of the fiscal year
based on the combined or consolidated fi-
nancial statements of the controlled group
of which the CPEO applicant is a member,
the IRS may request additional financial
information about the individual CPEO
applicant. The status of other CPEO appli-
cants and CPEOs in the controlled group
is not affected if the CPEO applicant is
denied certification because the quarterly
working capital statement described in
section 2.06(3) reflects negative working
capital and the CPEO applicant fails to
meet the exception described in section
2.06(3).
SECTION 3. SUITABILITY AND TAX-
COMPLIANCE CHECK
A CPEO applicant will be required to
identify its related entities, precursor en-
tities, and responsible individuals as part
of its online application for certification.
The IRS will investigate the accuracy of
statements and representations made by
a CPEO applicant and its responsible in-
dividuals in the CPEO applicant’s online
application by conducting background
checks of the CPEO applicant, any relat-
ed entities or precursor entities,
3
and re-
sponsible individuals. These background
checks may include checks on tax compli-
ance, criminal background, professional
experience, credit history, professional
sanctions, and other relevant facts. By
submitting an application, a CPEO appli
-
cant and its responsible individuals agree
to provide the IRS with additional infor-
mation the IRS may request to facilitate
its background checks (see section 4.03).
A CPEO applicant and each of its respon-
sible individuals must authorize the IRS to
conduct required background checks and
to investigate the accuracy of statements
and submissions, including waiving con-
fidentiality and privilege in situations in
which the IRS is otherwise unable to ob-
tain information or would otherwise be
prevented from obtaining or confirming
information necessary to evaluate a CPEO
applicant’s qualification for certification
from relevant third parties (such as former
employers) because of the existence of
confidentiality, non-disclosure, or similar
agreements. Failure to provide such infor-
mation or take such action may result in
denial of certification.
SECTION 4. STANDARDS FOR
GRANTING CERTIFICATION AS A
CPEO
.01 Eligibility for certification must be
established in the application. A CPEO
applicant will be certified as a CPEO only
if its application for certification and sup-
porting documentation establish to the
satisfaction of the IRS that the CPEO
applicant meets the requirements of
§ 301.7705-2, this revenue procedure, the
instructions in the online application, and
any applicable subsequent guidance, so as
not to present a material risk to the IRS’s
collection of federal employment taxes.
.02 Incomplete or inaccurate applica-
tion. All applications for certification must
be complete and accurate. An application
is not complete and accurate if it does
not contain all of the items required by
§ 301.7705-2, this revenue procedure, the
instructions in the online application, and
any applicable subsequent guidance. If an
incomplete application is submitted, the
IRS generally will request from the CPEO
applicant additional information needed
for a completed application. However, the
IRS may deny an incomplete application
without requesting additional information.
.03 Even if an application is complete,
additional information may be required.
Even if an application is complete, the
3
In order for the application submitter to discuss a return of a related entity of the CPEO applicant with the IRS, the application submitter must be authorized by section 6103(e)to inspect the
return information of the CPEO applicant or have a Form 8821, Tax Information Authorization, for that related entity and that return on file with the IRS.

Bulletin No. 2023–13 613 March 27, 2023
IRS may request additional information
before approving or denying certification.
For instance, if the results of a background
check as described in section 3, including
the result of a tax compliance check, sug-
gest a potential failure to meet a require-
ment described in § 301.7705-2, the IRS
may request that the CPEO applicant pro-
vide an explanation of the results. As an-
other example, the IRS may ask a CPEO
applicant to support its representations
with respect to its experience by provid-
ing a written work history or third-party
references.
.04 CPEO applicant must notify IRS of
material changes relevant to its applica-
tion for certification. Within 30 days of its
occurrence, a CPEO applicant must notify
the IRS through its IRS Online Registra-
tion System account of any change that
materially affects the continuing accura-
cy of any previously made agreement or
other information provided to the IRS as
a part of its application for certification.
Examples of material changes are pro-
vided in section 8.06(3) and include, but
are not limited to, any change in the tax
compliance, criminal background, or pro-
fessional license or registration status of
the CPEO applicant, or any of its precur-
sor entities, related entities, or responsible
individuals; any change to the CPEO ap-
plicant’s fiscal year; and any change that
results in another individual being consid-
ered a responsible individual of the CPEO
applicant or another entity being consid-
ered a precursor entity or a related entity
of the CPEO applicant. For purposes of
this section 4.04, a material change also
includes the discovery of significant errors
in or new facts relevant to any agreement
or information provided to the IRS as part
of the application for certification.
SECTION 5. WITHDRAWAL OF
APPLICATION
.01 Application may be withdrawn. An
application may be withdrawn upon the
written request of an application submitter
submitted through the CPEO applicant’s
IRS Online Registration System account.
.02 Information may be used in subse-
quent examination. When an application
is withdrawn, the IRS may retain and use
for tax administration, the application,
all supporting documents, and the infor-
mation submitted in connection with the
withdrawal request.
SECTION 6. NOTICE OF
CERTIFICATION
.01 Notice of certification. If a CPEO
applicant is approved for certification,
the IRS will electronically issue a notice
of certification to the CPEO applicant
through its IRS Online Registration Sys-
tem account. If a CPEO applicant is a
member of a controlled group and other
members of the controlled group are also
applying for certification, the IRS will
issue a separate notice of certification to
each CPEO applicant member of the con-
trolled group that has been approved for
certification. The notice of certification
will specify the effective date of certifi-
cation and indicate that the effective date
of certification is contingent upon timely
receipt by the IRS of an acceptable Form
14751 as set forth in section 6.02.
.02 Proof of bond. A CPEO applicant
has 30 days from the date of the notice of
certification to submit to the IRS, through
the CPEO applicant’s IRS Online Regis-
tration System account, proof of a bond in
the form of a properly completed and exe-
cuted Form 14751, signed by both a qual-
ified surety and the CPEO (or CPEOs in
the case of a controlled group), and in an
amount prescribed by § 301.7705-2(g)(2).
The CPEO is not obligated to use the same
qualified surety company that signed the
Surety Letter. If the CPEO applicant fails
to provide proof of a bond within 30 days
after the date of the notice, its certification
will not become effective, and the CPEO
applicant will subsequently be sent a final
notice of denial (with no opportunity to
request review of the denial). If a CPEO
applicant in a controlled group receives a
notice of certification after other members
of its controlled group are already certi-
fied by the IRS, the controlled group will
be required to post a properly completed
and executed Form 14751 that includes
the CPEO applicant in its identification
of all CPEOs in the controlled group and
that reflects the correct bond amount for
all CPEOs in the controlled group, includ-
ing the CPEO applicant. To add the newly
certified CPEO to the controlled group’s
bond and to increase the bond amount,
if applicable, a CPEO may amend an ex-
isting bond through the use of a rider, or
post a superseding or new bond, where ap-
plicable, as described in section 8.03(3).
If the CPEO applicant fails to submit a
properly completed and executed Form
14751 reflecting the addition of the new-
ly certified CPEO within the time period
provided in this section 6.02, the CPEO
applicant’s certification will not become
effective, and it will subsequently be sent
a final notice of denial (with no opportuni-
ty to request review of the denial). How-
ever, the status of the other CPEOs in the
controlled group will remain unaffected.
.03 Effective date of certification. The
effective date of certification will typi-
cally be the first day of the first calendar
quarter following the date of the notice of
certification.
.04 Disclosure of organizations cer-
tified as CPEOs. The IRS will publish a
list of all organizations that are certified
as CPEOs, and the effective date of their
certification, on IRS.gov, which will be
updated to reflect newly certified CPEOs
by the 15th day of the first month of ev-
ery calendar quarter. However, an orga-
nization will not appear on this list until
the IRS has received the proof of bond on
Form 14751, as described in section 6.02.
SECTION 7. DENIAL OF
CERTIFICATION
.01 Notice of proposed denial. If the
IRS decides that an application for cer-
tification should be denied based on the
CPEO applicant’s failure to satisfy one or
more of the requirements of § 301.7705-
2, this revenue procedure, the instructions
accompanying the online application, and
any applicable subsequent guidance, the
IRS will issue a notice of proposed denial
(unless the circumstances in section 7.02
apply) to the CPEO applicant’s IRS On-
line Registration System account, which
will (i) include the reason(s) for the denial
of certification; and (ii) inform the CPEO
applicant of its opportunity to request re-
view of the proposed denial.
.02 Circumstances in which denial is
final, with no opportunity for review. In
situations in which the denial of an appli-
cation is based on the CPEO applicant’s
failure to comply with a requirement in
§ 301.7705-2, this revenue procedure,
the instructions in the online application,

March 27, 2023 614 Bulletin No. 2023–13
or any applicable subsequent guidance,
and such failure is not subject to reason-
able factual or legal dispute, the IRS will
not issue a notice of proposed denial, but
will instead issue a notice of final denial,
which will include the reason(s) for the
denial of certification, but will not pro-
vide for an opportunity for review. Deni-
als based on failures that are not subject
to reasonable factual or legal dispute in-
clude, but are not limited to, denial based
on the following:
(1) Incomplete application. The CPEO
applicant submits an incomplete applica-
tion as described in section 4.02 or fails
to respond to a request from the IRS for
additional information needed for a com-
plete application (as described in section
4.02) by the date required.
(2) Modified opinion. The CPA opin-
ion of annual audited financial statements
submitted by the CPEO applicant is a
modified opinion (which includes a quali-
fied opinion, an adverse opinion, or a dis-
claimer of opinion).
(3) Negative working capital. The an-
nual audited financial statements submit-
ted by the CPEO applicant or the quarter-
ly statements submitted by a responsible
individual of the CPEO applicant reflect
negative working capital, and the CPEO
applicant fails to meet the exceptions
described in section 2.05(4) or 2.06(3),
respectively.
(4) Failure to provide proof of bond.
The CPEO applicant fails to provide proof
of the bond required in section 6.02 with-
in 30 days after the date of the notice of
certification.
.03 Request for review of a notice of
proposed denial. A notice of proposed de-
nial, in accordance with section 7.01, will
inform the CPEO applicant of its opportu-
nity to request a review by OPR.
(1) How to request a review of a notice
of proposed denial. To request a review,
the CPEO applicant, using its IRS Online
Registration System account, must sub-
mit a written statement of the facts, law,
and arguments in support of its position
within 30 days from the date of the no-
tice of proposed denial. The arguments in
support of the CPEO applicant’s position
should focus on the factual information
provided by the CPEO applicant and its
responsible individuals, including wheth-
er any information provided as part of the
application has changed or was incorrect.
Arguments concerning the materiality of
information provided or whether certain
facts present a material risk to the IRS’s
collection of federal employment taxes
are outside the scope of review and will
not be considered.
(2) Additional materials. Subject
to the exceptions in section 7.05(1) and
(3), after a CPEO applicant has submitted
a written request for review, the CPEO
applicant may not submit any additional
or new information as part of its request
for review or any additional arguments in
support of the CPEO applicant’s position.
The IRS CPEO program office will not
consider any additional or new informa-
tion or arguments as part of its handling
of the request for review under section
7.05, unless new information is provided
pursuant to section 7.05(1) or (3). The IRS
CPEO program office also will not for-
ward any additional or new information or
arguments to OPR under section 7.05(5),
unless new information was provided pur-
suant to section 7.05(1) or (3).
(3) Extension of time to request review.
The IRS CPEO program office may ex-
tend the deadline for submitting a request
for review by an additional 30 days. To
request this 30-day extension, a CPEO
applicant must submit a written request
through its IRS Online Registration Sys-
tem account explaining the need for the
extension. A CPEO applicant must sub-
mit its request not later than 20 days after
the date of the notice of proposed denial.
A CPEO applicant may request only one
extension.
(a) The IRS CPEO program office will
grant the extension if, in its sole discre-
tion and based on a review of the relevant
facts and circumstances, it determines
that the extension is in the interest of tax
administration.
(b) A request for an extension, a denial
of an extension, or any other matter relat-
ed to this section 7.03(3) is not subject to
the review described in section 7, includ-
ing section 7.06.
.04 Notice of final denial where no re-
quest for review of the proposed denial
is submitted. If the CPEO applicant does
not submit a timely request for review of
a notice of proposed denial in accordance
with section 7.03, including any extension
of time under section 7.03(3), a notice of
final denial will be issued to the CPEO
applicant.
.05 How the IRS handles a request for
review. If a CPEO applicant submits a
timely request for review, the IRS CPEO
program office will first review the request
and accompanying written statement of
the facts, law, and arguments in support of
the CPEO applicant’s position.
(1) Request for additional information.
In reviewing a CPEO applicant’s request
for review, the IRS CPEO program office
may request additional information from
the CPEO applicant, if it determines that
further information is required to suf-
ficiently evaluate the initial request for
review.
(a) The CPEO applicant must provide
the requested information or materials by
the date specified in the request. The IRS
CPEO program office will consider any
request by the CPEO applicant for an ex-
tension of the time by which the requested
information or materials must be provided
on a case-by-case basis.
(b) In accordance with section 7.03(2),
a CPEO applicant should not send any
additional information or documentary
materials to the IRS CPEO program of-
fice unless the information or materials
are requested, and the IRS CPEO program
office will not consider any unrequested
information or materials received from the
CPEO applicant.
(c) Similarly, if the IRS CPEO program
office requests additional information or
materials, the IRS CPEO program office
will not consider any additional informa-
tion or materials not timely provided by
the CPEO applicant (by the date specified
in the request or any extended date) or that
is not responsive to or is outside the scope
of the request.
(2) Additional failures. Before refer-
ring a proposed denial to OPR for review,
the IRS CPEO program office will pro-
vide written notice to the CPEO applicant
of any additional failures to satisfy one or
more of the requirements of § 301.7705-
2, this revenue procedure, and any appli-
cable subsequent guidance, that arose or
that were discovered after the issuance
of the notice of proposed denial and give
the CPEO applicant additional time to
respond to the notice regarding the fail-
ures. The CPEO applicant must provide
any response regarding the additional

Bulletin No. 2023–13 615 March 27, 2023
failures by the date specified by the IRS
CPEO program office. The IRS CPEO
program office will consider any request
by the CPEO applicant for an extension of
the time by which the response must be
provided on a case-by-case basis. The IRS
CPEO program office will not consider
any additional information or materials
not timely provided by the CPEO appli-
cant by the date specified in the notice of
additional failures, or any extended date,
or that is not factually responsive to or is
outside the scope of, the notice.
(3) IRS CPEO program office review.
In conducting its review, the IRS CPEO
program office will consider the initial
request for review, any additional infor-
mation provided by the CPEO applicant
in response to a request made in accor-
dance with section 7.05(1), any addition-
al failures, as defined in section 7.05(2),
that arise or that are discovered after the
issuance of the notice of proposed denial,
and any timely responses by the CPEO ap-
plicant to the notice of additional failures.
(4) Notice of certification. After re-
viewing the request for review, if the IRS
CPEO program office determines that the
CPEO applicant qualifies for certification,
it will issue the CPEO applicant a notice
of certification in accordance with section
6.
(5) Forwarding to OPR. If, upon re-
view, the IRS CPEO program office af-
firms the proposed denial, it will forward
the administrative record to OPR for re-
view. The administrative record will con-
sist of the notice of proposed denial, the
CPEO applicant’s request for review, the
IRS CPEO program office’s written anal-
ysis of the CPEO applicant’s request for
review, any other information timely pro-
vided by the CPEO applicant in response
to a request by the IRS CPEO program of-
fice, including information with regard to
any additional failures, and all supporting
documentation. The administrative record
will include only information that was ei-
ther: (i) stated in the notice of proposed de-
nial or in a notice described in this section
7.05 and all supporting documentation;
or (ii) related to the IRS CPEO program
office’s determination, upon review of all
information subject to consideration under
sections 7.03(1) and 7.05(1)-(3), that the
CPEO does not qualify for certification.
The IRS CPEO program office will notify
the CPEO applicant after it forwards the
administrative record to OPR for review.
.06 Consideration by OPR.
(1) OPR consideration. OPR will con-
sider only the information provided in the
administrative record.
(2) Conducting the review.
(a) During OPR’s review, subject to
the exception described in section 7.06(2)
(b), neither the IRS CPEO program of-
fice nor the CPEO applicant may contact
OPR with respect to the pending review,
and OPR will not contact the IRS CPEO
program office or the CPEO applicant or
its authorized representative with respect
to the pending review. Further, except
as provided in section 7.06(2)(b), during
OPR’s review, a CPEO applicant and its
authorized representative may not:
(i) Submit any information or docu-
mentation to OPR;
(ii) Request or offer to have a telephone
conference with OPR;
(iii) Request the name or contact in-
formation of any OPR employee who has
been assigned to conduct the review; or
(iv) Attempt to contact the employee,
such as by telephone or email.
(b) Notwithstanding section 7.06(2)
(a), the IRS CPEO program office and the
CPEO applicant may contact OPR to re-
quest the status of a pending review and
an estimate of when OPR expects to com-
plete its review. Either OPR or the CPEO
program office will provide the CPEO ap-
plicant with contact information for these
purposes.
(c) All communications between OPR
and either the CPEO applicant or the IRS
CPEO program office will conform to cur-
rent IRS security and authentication poli-
cies and procedures, as applicable.
(3) OPR will establish procedures to
ensure that no additional information is
considered. To facilitate an independent
review, OPR will establish procedures to
ensure that any information from a CPEO
applicant or authorized representative that
is sent to OPR outside of the administra-
tive record will not be considered.
(4) Standard of review. OPR will apply
an abuse of discretion standard to its re-
view, and if OPR concludes that the IRS
CPEO program office erred in denying
certification, it will issue a letter notifying
the CPEO applicant that a notice of certi-
fication will be issued by the IRS CPEO
program office. Under an abuse of dis-
cretion standard, the Director, OPR will
not change the decision of the IRS CPEO
program office unless the IRS CPEO pro-
gram office’s determination is arbitrary,
capricious, clearly unlawful, or without a
sound basis in fact or law. See Ewing v.
Commissioner, 122 T.C. 32, 39 (2004),
vacated on other grounds, 439 F.3d 1009
(9th Cir. 2006); see also Woodral v. Com-
missioner, 112 T.C. 19, 23 (1999). If OPR
finds no abuse of discretion, it will issue a
letter of final denial.
.07 A request for review may be with-
drawn. A CPEO applicant may with-
draw its request for review of the notice
of proposed denial before OPR issues its
final determination. A request for review
may be withdrawn only upon the writ-
ten request of an application submitter,
submitted through the CPEO applicant’s
IRS Online Registration System account.
Upon receipt of the CPEO applicant’s
withdrawal request, the IRS will com-
plete the processing of the application in
the same manner as if the CPEO applicant
was issued a final denial.
SECTION 8. PROCEDURES FOR
MAINTAINING CERTIFICATION AS
A CPEO
.01 In general. To maintain certifica-
tion, a CPEO must meet the applicable
requirements described in § 301.7705-2,
this revenue procedure, and any applica-
ble subsequent guidance. In addition, any
responsible individuals of the CPEO must
meet any requirements applicable to them
that are described in § 301.7705-2, this
revenue procedure, and any applicable
subsequent guidance. Except as otherwise
provided in this revenue procedure or
other guidance, the information and doc-
uments required in sections 8.02(1) and
(2) and 8.03 through 8.05 must be sub-
mitted electronically via the CPEO’s IRS
Online Registration System account. Only
an application submitter can submit the
information and documents required in
sections 8.02(1) and (2) and 8.03 through
8.05.
.02 Annual verification.
(1) In general. Consistent with section
7705(b)(5) and § 301.7705-2(j), to main-
tain its certification, a CPEO must submit
through its IRS Online Registration Sys-

March 27, 2023 616 Bulletin No. 2023–13
tem account a properly completed and ex-
ecuted online annual verification. CPEOs
that are members of a controlled group
must each submit a separate annual veri-
fication. The due date for submitting the
annual verification is 30 days before the
anniversary of the date (month and day)
on which the CPEO’s certification became
effective.
(2) User fee. Consistent with section
7528(b)(4), upon submission of the online
annual verification, the individual that
submits the verification on behalf of the
CPEO will be automatically directed to
pay a user fee in the amount of $1,000.
No CPEO annual verification will be
processed until the IRS receives the user
fee. Once processing of the annual verifi-
cation has begun, the user fee will not be
returned.
(3) Background check and tax compli-
ance check. As part of a CPEO’s annual
verification, the IRS may investigate the
accuracy of statements and representations
made by a CPEO and its responsible indi-
viduals by conducting background checks,
including checks on tax compliance, crim-
inal background, professional experience,
credit history, professional sanctions, and
other relevant facts. By submitting an an-
nual verification, a CPEO and its respon-
sible individuals agree to provide the IRS
with such additional information as the
IRS may request to facilitate its back-
ground investigations. A CPEO and each
of its responsible individuals must take
such actions as are necessary to authorize
the IRS to conduct background checks
and to investigate the accuracy of state-
ments and submissions. This may include
waiving confidentiality and privilege in
situations in which the IRS would other-
wise be prevented from obtaining or con-
firming information necessary to evaluate
a CPEO’s continued qualification for cer-
tification from relevant third parties (such
as former employers) because of the ex-
istence of confidentiality, non-disclosure,
or similar agreements. Failure to provide
such information or take such action may
result in revocation of certification.
.03 Bond requirements.
(1) In general. After the initial posting
of a bond as provided in section 7705(c),
§ 301.7705-2(g), and section 6.02, a
CPEO must continue to post a bond (or
bonds, as described in section 8.03(3))
from a qualified surety for the payment
of federal employment taxes, using Form
14751 through its IRS Online Registra-
tion System account, in the amount de-
scribed in § 301.7705-2(g)(2) and this
section 8.03, for each period beginning on
April 1st of any calendar year and ending
on March 31st of the following calendar
year (the bond period). As prescribed by
§ 301.7705-2(g)(2)(i), the amount of the
bond (or bonds, as described in section
8.03(3)) with respect to the bond period
must be at least equal to the greater of five
percent of the CPEO’s liability under sec-
tion 3511 during the preceding calendar
year (up to $1,000,000) or $50,000. See
§ 301.7705-2(g)(2)(ii) for special rules
applying to a CPEO in its first or second
year of certification. The bond, any riders
thereto, and any strengthening bonds post-
ed to satisfy the requirements of section
8.03(3), are considered one continuous
obligation of the surety for unpaid tax li-
abilities accrued by the CPEO under sub-
title C from the effective date of the bond
until the bond is superseded, as described
in section 8.03(3), or cancelled, as de-
scribed in section 8.03(4) (the term of the
bond).
(2) Controlled groups. In the case of
a controlled group in which more than
one member of the controlled group is
a CPEO, all CPEO members of the con-
trolled group are required to be covered by
the same bond in the amount required by
§ 301.7705-2(g)(2), applied as if all such
CPEO members were one organization.
CPEOs in a controlled group should sub-
mit Form 14751 once for all CPEOs in the
controlled group through their controlled
group’s IRS Online Registration System
controlled group license.
(3) Increase in bond amount. By March
1st in any calendar year, a CPEO must de-
termine if an increase in bond amount for
the new bond period beginning on April
1st of that calendar year is necessary and,
if so, increase the amount of the bond
covering the new bond period. That is, if
five percent of a CPEO’s liability under
section 3511 (or other applicable feder-
al employment tax liability pursuant to
§ 301.7705-2(g)(2)(ii)) for the preceding
calendar year (up to the $1,000,000 maxi-
mum liability) exceeds the current amount
of the bond, the CPEO must increase the
amount of its bond with respect to the
new bond period beginning on April 1st.
To increase the amount of the bond, the
CPEO must submit through its IRS Online
Registration System account a properly
completed and executed Form 14751, or
such other form or document required by
the IRS in the instructions for Form 14751
or further guidance, by March 1st of the
calendar year in which the new bond pe-
riod begins. The CPEO must also increase
the amount of its bond if, at a later point
in the bond period, the CPEO or the IRS
determines that the CPEO’s liability under
section 3511 (or other applicable feder-
al employment tax liability pursuant to
§ 301.7705-2(g)(2)(ii)) for the preceding
calendar year was higher than the amount
reported and paid and on which the bond
amount for the bond period was based
and makes an adjustment or assessment
reflecting such determination. To increase
the amount of its bond due to an adjust-
ment or assessment, the CPEO must sub-
mit through its IRS Online Registration
System account a properly completed
and executed Form 14751, or such other
form or document required by the IRS in
the instructions for Form 14751 or further
guidance, within 30 days of the date of the
adjustment or assessment. To increase the
bond amount, a CPEO may amend an ex-
isting bond through the use of a rider, or
post a strengthening, superseding, or new
bond, as applicable.
(a) A rider is an amendment to an exist-
ing bond that increases the bond amount.
The rider must apply to liabilities that arise
on or after the effective date of the bond
that the rider amends. The surety remains
liable under the existing bond, as amended
by the rider, for the assessment and collec-
tion periods applicable to the CPEO under
sections 6501 and 6502, respectively, for
any taxable period that occurs during the
term of the bond unless and until the bond
is superseded.
(b) A strengthening bond is an ad-
ditional bond posted in the incremen-
tal amount of the increase so that the
strengthening bond together with the ex-
isting bond equal the total required bond
amount. The strengthening bond must ap-
ply to liabilities that arise on or after the
effective date of the bond it strengthens.
Both the strengthening bond and the bond
it strengthens must remain in effect, and
the surety remains liable under both bonds

Bulletin No. 2023–13 617 March 27, 2023
for the assessment and collection periods
applicable to the CPEO under sections
6501 and 6502, respectively, for any tax-
able period that occurs during the term of
the bonds, unless and until the bonds are
superseded.
(c) A superseding bond is a bond post-
ed for the total required bond amount, not
just the incremental increase. Upon exe-
cution of the superseding bond, the super-
seded bond is no longer in effect, and the
surety that provided the superseded bond
is no longer liable under the superseded
bond. The superseding bond must apply to
liabilities that arise on or after the effec-
tive date of the superseded bond.
(d) A new bond is a bond posted for the
total required bond amount and may only
be posted upon the CPEO’s initial certifi-
cation or immediately following cancella-
tion of an existing bond. In the case of a
cancellation of an existing bond, the effec-
tive date of the new bond must be no later
than the effective date of the cancellation
of the existing bond, and the surety pro-
viding the existing (now cancelled) bond
remains liable for liabilities that accrued
during the term of the cancelled bond for
the assessment and collection periods ap-
plicable to the CPEO under sections 6501
and 6502, respectively, with respect to any
taxable period that occurred during the
term of that bond.
(4) Cancellation of bond. Consistent
with § 301.7705-2(g)(4), a bond may be
cancelled by the surety only after the sure-
ty gives written notice of cancellation to
the IRS and the CPEO in the manner pro-
vided in the instructions for Form 14751
or any applicable subsequent guidance.
Similarly, a bond may be cancelled by the
CPEO only after the CPEO gives written
notice of cancellation to the IRS in the
manner provided in the instructions for
Form 14751 or any applicable subsequent
guidance. If a CPEO either receives a no-
tice of cancellation from the surety pro-
vider of its bond, or gives written notice to
the IRS of the CPEO’s intent to cancel the
bond, the CPEO must also submit to the
IRS through its IRS Online Registration
System account a “Notification of Can-
celled Bond,” which can be any scanned
document or memo providing the name
of the surety for the cancelled bond, the
cancelled bond number, and the effective
date of cancellation. The CPEO must also
post a new or superseding bond for the re-
quired amount by submitting Form 14751
no later than 30 days prior to the effective
date of the cancellation of the previous
bond. If a new bond is provided, it must
be effective no later than the effective date
of the cancellation of the previous bond.
If a superseding bond is provided, it must
be effective as of the effective date of the
previous bond.
(5) Changing surety companies. When
changing surety companies, a CPEO must
cancel the existing bond with its current
surety company in accordance with the re-
quirements in Form 14751. Additionally,
a CPEO must provide notice of the can-
cellation to the IRS through its IRS On-
line Registration System account and post
a new or superseding bond in accordance
with the requirements in section 8.03(4).
(6) Loss of qualified surety. If the sure-
ty provider of a CPEO’s bond no longer
meets the requirements for a qualified
surety, the CPEO must post a new or su-
perseding bond with a qualified surety for
the required amount by submitting Form
14751 via the IRS Online Registration
System no later than 30 days after noti-
fication that the previous surety no lon-
ger meets the requirements of a qualified
surety.
.04 Submission of annual audited fi-
nancial statements.
(1) Copy of financial statements, CPA
opinion, and working capital statement.
By the last day of the sixth month after the
end of each fiscal year of the CPEO (the
audit date as defined in section 7705(c)
(6)) and beginning with the first fiscal
year that ends after the CPEO’s effective
date of certification, a CPEO must submit
through its IRS Online Registration Sys-
tem account a copy of its annual audited fi-
nancial statements for the fiscal year. With
its annual audited financial statements,
a CPEO must submit a CPA opinion de-
scribed in section 2.05(2) (as applied to a
CPEO rather than a CPEO applicant) and
a working capital statement described in
section 2.05(3) and (4) (as applied to a
CPEO rather than a CPEO applicant).
(2) Annual audited financial statements
for controlled groups. In the case of a
controlled group in which more than one
member of the controlled group is a CPEO,
all CPEOs in the controlled group must
submit through the controlled group’s IRS
Online Registration System controlled
group license the annual audited financial
statements described in section 8.04(1),
with an accompanying CPA opinion de-
scribed in section 2.05(2) (as applied to
a CPEO rather than a CPEO applicant),
on a combined or consolidated basis for
all CPEOs in the controlled group, rather
than for the CPEO individually. Although
a CPEO is not required to provide a copy
of its separate financial statements as part
of its submission, if the financial position
of a CPEO is unclear from the combined
or consolidated financial statements of the
controlled group of which the CPEO is a
member, the IRS may request addition-
al financial information that is needed to
evaluate the CPEO’s position, such as the
annual balance sheet, income statement,
and statement of cash flow of the individ-
ual CPEO.
(a) The combined or consolidated an-
nual audited financial statements provided
pursuant to this section 8.04(2) may, but
are not required to, also include all mem-
bers of the controlled group that are not
CPEOs. The name and EIN of each mem-
ber of the controlled group that is included
within the consolidated audited financial
statements of the controlled group submit-
ted (including each member that is not a
CPEO) must be listed in the CPA opinion,
a Note to the Financial Statements cov-
ered by the CPA opinion, or in a separate
attachment signed under penalties of per-
jury by a responsible individual of any one
of the CPEOs in the controlled group.
(b) A CPEO that is a member of a con-
trolled group of which other members are
CPEOs must provide, in the Note to the
Financial Statements covered by the CPA
opinion, a statement that the individual
CPEO’s financial statements reflect posi-
tive working capital or, if the requirements
of section 2.05(4) are met, reflect negative
working capital, with the statement in
either case setting forth in detail a calcu-
lation of the individual CPEO’s working
capital. If it is unclear whether the CPEO
has positive or negative working capital
for the last quarter of the fiscal year based
on the combined or consolidated finan-
cial statements of the controlled group
of which the CPEO is a member, the IRS
may request additional financial informa-
tion on an individual CPEO basis. The sta-
tus of other CPEOs in the controlled group

March 27, 2023 618 Bulletin No. 2023–13
is not affected if the CPEO’s certification
is suspended or revoked if the reason for
the suspension or revocation is due to the
CPEO’s working capital statement de-
scribed in section 2.05(4) reflecting nega-
tive working capital and the CPEO failing
to meet the exception described in section
2.05(4).
.05 Submission of quarterly asser-
tions, attestations, and working capital
statements.
(1) Quarterly assertions, attestations,
and working capital statements. By the
last day of the second month after the end
of each calendar quarter, a CPEO must
submit through its IRS Online Registra-
tion System account an assertion, as de-
scribed in section 2.06(1) (applied to a
CPEO rather than a CPEO applicant), that
it has withheld and made deposits of all
federal employment taxes for which the
CPEO is liable for the quarter; an exam-
ination level attestation from a CPA, as
described in section 2.06(2) (as applied
to a CPEO rather than a CPEO applicant),
stating that this assertion is fairly stated
in all material respects; and a working
capital statement, as described in section
2.06(3) (as applied to a CPEO rather than
a CPEO applicant).
(2) Quarterly assertions, attestations,
and working capital statements for con-
trolled groups. In the case of a controlled
group in which more than one member
of the controlled group is a CPEO, each
CPEO in the controlled group must sub-
mit for each calendar quarter the assertion
described in section 2.06(1) (as applied
to a CPEO rather than a CPEO applicant)
and the examination level attestation de-
scribed in section 2.06(2) (as applied to a
CPEO rather than a CPEO applicant) on
a combined or consolidated basis for all
CPEOs in the controlled group, rather than
for the CPEO individually. The assertion
must contain the name and EIN of each
CPEO in the controlled group. However,
the working capital statement described
in section 2.06(3) (as applied to a CPEO
rather than a CPEO applicant) must relate
to the CPEO alone and must not be pre-
pared on a combined or consolidated ba-
sis with other members of the controlled
group. For purposes of the requirements
of section 2.06(3), if it is unclear whether
the CPEO has positive or negative work-
ing capital for the last quarter of the fiscal
year based on the combined or consolidat-
ed annual audited financial statements of
the controlled group of which the CPEO
is a member, the IRS may request addi-
tional financial information about the indi-
vidual CPEO. The status of other CPEOs
in the controlled group is not affected if
the CPEO’s certification is suspended or
revoked if the reason for the suspension
or revocation is due to the working capital
statement described in section 2.06(3) re-
flecting negative working capital and the
CPEO failing to meet the exception de-
scribed in section 2.06(3).
.06 Reporting Requirements.
(1) Commencement and termination of
contracts. A CPEO must report the com-
mencement or termination of any CPEO
contract between the CPEO and a custom-
er, or any service agreement described in
§ 31.3504-2(b)(2) between the CPEO and
a client, and the name and EIN of such
customer or client, using Form 8973, Cer-
tified Professional Employer Organiza-
tion/Customer Reporting Agreement.
(a) Except as provided in section
8.06(1)(b), a CPEO must submit a Form
8973 within 30 days of the commence-
ment of any CPEO contract or service
agreement described in § 31.3504-2(b)(2)
(including the conversion of an existing
service agreement described in § 31.3504-
2(b)(2) to a CPEO contract and vice ver-
sa). For more information on where to
send the Form 8973, see the Instructions
for Form 8973.
(b) To provide a newly certified CPEO
with sufficient time to complete Forms
8973 for clients with whom it has had ser-
vice agreements prior to certification as a
CPEO (existing clients), a CPEO has six
months from the date of its notice of cer-
tification to submit Forms 8973 with re-
spect to the commencement of any CPEO
contracts with existing clients (including
the conversion of a service agreement
described in § 31.3504-2(b)(2) with an
existing client to a CPEO contract) or the
commencement of any service agreements
described in § 31.3504-2(b)(2) with exist-
ing clients (including the continuation by
a newly certified CPEO of a service agree-
ment described in § 31.3504-2(b)(2) with
an existing client).
(c) CPEOs are required to secure the
signature of all clients subject to a service
agreement described in § 31.3504-2(b)
(2) prior to submission of the form to the
IRS to report the commencement of the
service agreement. The IRS recognizes,
however, that a CPEO might occasionally
experience difficulty in obtaining a sig-
nature from a client subject to a service
agreement described in § 31.3504-2(b)(2).
In these limited situations, the CPEO must
still submit Form 8973, even though it is
unsigned by the client, with the CPEO’s
signature, by the applicable deadline. Be-
cause the CPEO did not obtain its client’s
signature on the form, the CPEO must at-
tach a written statement to the Form 8973
with the following information:
(i) The CPEO’s name, federal taxpay-
er identification number, mailing address,
contact name, phone number, and e-mail
address;
(ii) The name and federal taxpayer
identification number of the client for
which the associated Form 8973 is being
submitted;
(iii) A detailed statement which pro-
vides the steps the CPEO has taken to
meet its requirement to secure the client’s
signature in a timely manner, and why the
steps were unsuccessful; and
(iv) A statement (signed by an individ-
ual who has the authority to execute Form
8973 for the CPEO), with the following
language: Under penalties of perjury, I de-
clare that the information contained in this
statement is true, correct and complete to
the best of my knowledge and belief.
(d) The occasional submission by a
CPEO of an unsigned Form 8973 with the
attachment described above for a service
agreement described in § 31.3504-2(b)(2)
should not, absent other factors, result in
suspension or revocation of the CPEO’s
certification. However, the prevalence
of unsigned Forms 8973 for a particular
CPEO may reach a level of significance
that poses a material risk to the IRS’s col-
lection of federal employment taxes. If
the IRS determines, in its sole discretion,
that the prevalence or number of unsigned
Forms 8973 for a particular CPEO does
pose a material risk to the collection of
federal employment taxes, the IRS will
issue a notice of suspension and proposed
revocation to the CPEO.
(e) Information relating to a client
subject to a service agreement described
in § 31.3504-2(b)(2) must be properly re-
ported on Schedule R of Forms 940 and

Bulletin No. 2023–13 619 March 27, 2023
941 (or Form 943, if applicable), even if
the client does not sign Form 8973.
(f) CPEOs are required to secure the
signature of all customers subject to a
CPEO contract (as described in section
7705(e)(2)) on Form 8973 prior to sub-
mission of the form to the IRS to report
the commencement of the CPEO con-
tract. The IRS recognizes, however, that
a CPEO might occasionally experience
difficulty in obtaining a signature from a
customer subject to a CPEO contract. If a
customer subject to a CPEO contract does
not sign Form 8973, section 3511 does
not apply to the customer. Consequently,
the CPEO must report this customer as a
client covered by a service agreement de-
scribed in § 31.3504-2(b)(2), rather than
as a customer covered by section 3511, on
Form 8973 and on Schedule R of Forms
940, 941, and 943 (if applicable). The
CPEO should submit Form 8973 (report-
ing the customer as a client covered by a
service agreement described in § 31.3504-
2(b)(2)), even though it is unsigned by the
customer, with the CPEO’s signature, fol-
lowing the procedures set forth in section
8.06(1)(c), by the applicable deadline.
(g) A CPEO must submit Form 8973 to
the IRS within 30 days of the termination
of any CPEO contract or service agree-
ment described in § 31.3504-2(b)(2). Only
the CPEO’s signature is required on the
form to notify the IRS that a CPEO con-
tract or service agreement has ended. In
addition, though not required, the custom-
er may also separately file its own Form
8973 to notify the IRS that its CPEO con-
tract or service agreement with the CPEO
has ended. If a customer separately files its
own Form 8973 to notify the IRS that its
CPEO contract or service agreement with
the CPEO has ended, only the customer’s
signature is required on that Form 8973.
(h) Form 8973 includes a CPEO Con-
sent to Disclosure of Tax Information,
on which the CPEO consents to the IRS
disclosing to the customer or client iden-
tified on the Form 8973 information from
the CPEO’s employment tax returns (for
example, Forms 940 and 941) filed with
respect to the customer or client identified
on the Form 8973 and information about
the CPEO’s certification. The CPEO con-
sents to this disclosure only to the extent
necessary to carry out the purposes of the
CPEO program and will list on the CPEO
Consent to Disclosure of Tax Information
the specific year(s) or period(s) for which
consent to disclosure of employment tax
return information is provided. The CPEO
must file a new CPEO Consent to Disclo-
sure of Tax Information before the end of
the last year or period listed on the most
recent prior consent for the customer or
client, unless and until the CPEO submits
a Form 8973 to report the termination of
the applicable CPEO contract or service
agreement. For more information, see
Form 8973 and its instructions.
(2) Employment tax reporting.
(a) A CPEO that is treated as an em-
ployer of a covered employee under sec-
tion 3511 must meet all reporting and
recordkeeping requirements described in
subtitle F that are applicable to employers,
in a manner consistent with that treatment.
Specifically, with any Form 940, Em-
ployer’s Annual Federal Unemployment
(FUTA) Tax Return, Form 941, Employ-
er’s QUARTERLY Federal Tax Return,
and Form 943, Employer’s Annual Feder-
al Tax Return for Agricultural Employees,
that it files, a CPEO must file Schedule
R (Form 940), Allocation Schedule for
Aggregate Form 940 Filers, Schedule R
(Form 941), Allocation Schedule for Ag-
gregate Form 941 Filers, and Schedule
R (Form 943), Allocation Schedule for
Aggregate Form 943 Filers, respectively,
providing all the information required by
the form and its instructions. In addition,
Form 940, Form 943, and, except with re-
spect to the first calendar quarter for which
the CPEO is certified, Form 941, along
with all required schedules, including
Schedule R, must be electronically filed. A
CPEO may file the Form 941, along with
all required schedules, including Schedule
R, on paper with respect to the calendar
quarter that begins on the effective date
of its certification. See the instructions for
Form 940, Form 941, Form 943, Schedule
R (Form 940), Schedule R (Form 941),
and Schedule R (Form 943) for additional
information on filing these forms.
(b) The IRS may waive the electronic
filing requirements of this section 8.06(2)
in case of undue economic hardship. The
principal factor in determining undue eco-
nomic hardship will be the amount, if any,
by which the cost of electronically filing
Form 940, Form 941, and Form 943 (and
all applicable schedules) exceeds the cost
of paper filing. The IRS will also consider
temporary software and technological is-
sues that prevent the CPEO from electron-
ically filing. Temporary generally means
the problem is expected to affect the filing
of only one return. Waiver requests claim-
ing technological issues as the explanation
for continual paper filing will be denied.
In addition, the waiver will be subject to
such terms and conditions regarding the
method of filing as may be prescribed by
the IRS. To request a waiver from elec-
tronic filing requirements, a CPEO must
submit a written request specifying the
type of filing (that is, the name of the
form or schedule), as well as the period
to which it applies. The request must also
include a detailed statement explaining:
(i) the steps the CPEO has taken in an
attempt to meet its requirement to
timely file its return electronically.
(ii) why the steps were unsuccessful.
(iii) a description of the undue hard-
ship – economic, technological, or
otherwise – that would result from
complying with the electronic filing
requirement.
(A) If the hardship is economic,
then the CPEO must include the
amount by which the cost of elec-
tronically filing employment tax
returns and all applicable sched-
ules exceeds the cost of paper
filing. These incremental costs
must be supported by a detailed
computation. The detailed com-
putation must include a schedule
detailing the costs to file on paper
and the costs to file electronically.
(iv) what steps the CPEO will take to
ensure its ability to file future returns
electronically and the date this is
expected to be achieved.
(v) a statement signed by an individual
authorized to sign the CPEO’s return,
with the following language: Under
penalties of perjury, I declare that the
information contained in this waiver
request is true, correct and complete
to the best of my knowledge and
belief.
Electronic filing waiver requests must
be filed at least 45 days before the due
date of the return for which the CPEO is
unable to electronically file. Additionally,
a waiver request may be made only for
the current taxable period, and waiver re-

March 27, 2023 620 Bulletin No. 2023–13
quests for taxable periods other than the
current tax period will not be considered.
The waiver request should be submitted
through the CPEO’s IRS Online Registra-
tion System account. For additional infor-
mation on waivers from electronic filing
requirements, see the information provid-
ed on IRS.gov.
(c) A CPEO claiming and reporting
employment tax credits on behalf of a cus-
tomer must collect from the customer any
information necessary to accurately claim
the credits on the customer’s behalf.
(i) Either the CPEO or the customer
may maintain the records to substanti-
ate the customer’s eligibility for a credit.
However, if the customer maintains the re-
cords, upon request by the IRS, the CPEO
must obtain from the customer and pro-
vide to the IRS the records to substantiate
the customer’s eligibility for the credit.
(ii) The CPEO will be liable for em-
ployment taxes that are due as a result of
any improper claim of employment tax
credits. For non-worksite employees, the
customer may also be liable for employ-
ment taxes due as a result of improperly
claimed employment tax credits.
(3) Reporting of material changes. A
CPEO must notify the IRS of any change
that materially affects the continuing ac-
curacy of any previously made agreement
or other information provided to the IRS
(material change), including a modifica-
tion or update to previously provided in-
formation, as well as new information (for
example, a new responsible individual). A
CPEO must notify the IRS of a material
change no later than 30 days (45 days in
the case of a new responsible individual)
after the date of the material change. No-
tification must be provided through the
CPEO’s IRS Online Registration System
account. Material changes that must be re-
ported as prescribed in this section 8.06(3)
include, but are not limited to, the follow-
ing items:
(a) Any change to the information pre-
viously provided by the CPEO as part of
its initial application for certification or as
part of a prior material change notification
or annual verification that relates to busi-
ness name or organization, address, fis-
cal year, licensing information, precursor
entities, related entities, controlled group
information, responsible individuals, or
background information.
(b) Any change to the tax compliance
information previously provided by the
CPEO as part of its initial application for
certification or as part of a prior material
change notification or annual verification.
When reporting material changes to the
CPEO’s tax compliance information, the
CPEO must specifically report both:
(i) The discovery of any failure (oth-
er than immaterial and isolated failures
that do not reflect a meaningful lapse in
compliance with federal employment tax
withholding and deposit requirements) by
the CPEO or any of its precursor or re-
lated entities within the last six years to
timely and accurately file federal, state, or
local tax or information returns (including
federal employment tax returns) or pay
any applicable federal, state, or local tax
(including federal employment taxes),
except that with respect to precursor en-
tities that are no longer related entities,
the CPEO must report only those failures
of which it becomes aware and that relate
to the precursor entity’s tax and reporting
responsibilities connected with any assets
that were transferred to the CPEO from
the precursor entity; and
(ii) The assessment of fraud penalties
by the IRS or a state or local tax authority
against the CPEO or any of its precursor
or related entities for any year, including
for years before the CPEO was certified,
except that with respect to precursor enti-
ties that are no longer related entities, the
CPEO must report only those assessments
of fraud penalties of which it becomes
aware and that relate to the precursor en-
tity’s tax and reporting responsibilities
connected with any assets that were trans-
ferred to the CPEO from the precursor
entity.
(c) Any change to any annual audited
financial statements or annual working
capital statements previously submitted to
the IRS in accordance with section 2.05 or
8.04, and § 301.7705-2(e), that would re-
quire a restatement of previously submit-
ted annual audited financial statements.
(d) Any change to the quarterly work-
ing capital statements previously submit-
ted to the IRS in accordance with section
2.06 or 8.05, and § 301.7705-2(f), that
causes working capital to no longer be
positive or that causes a CPEO with neg-
ative working capital that met the require-
ments of section 2.06(3) (as applied to a
CPEO rather than a CPEO applicant) to no
longer meet those requirements.
(e) The discovery by the CPEO of tax
fraud or criminal activity in violation of
federal, state, or local laws by a responsi-
ble individual.
(f) The CPEO, a related entity of the
CPEO, or a responsible individual of the
CPEO is charged with or convicted of
any criminal offense under the laws of the
United States or of a state or political sub-
division thereof.
(g) The commencement of an active
IRS criminal investigation of the CPEO,
or the discovery by the CPEO of an active
IRS criminal investigation of a related en-
tity or a responsible individual.
(h) The occurrence of a transaction by
which a person or group of persons gain
control or effective control, directly or
indirectly (including through control of
the owner of the CPEO), of fifty percent
or more of the stock or other ownership
interests in a CPEO (determined by vote
or value).
(i) The sale, transfer, or disposition
of all or substantially all of the CPEO’s
business, or the reorganization, spin-off or
similar division, liquidation, dissolution,
or closure of the CPEO business entity,
directly or indirectly (including through
sale, transfer, disposition, reorganization,
spinoff, or division of the owner of the
CPEO) regardless of whether the event is
taxable or tax free.
(4) Reporting of material changes by
responsible individuals. Responsible in-
dividuals of a CPEO must notify the IRS
of any material changes to the information
they submitted on the RIPA pursuant to
sections 8.01 and 8.06(4), within 30 days
of the change, by submitting an update
through the online account of the respon-
sible individual who submitted the pre-
vious RIPA. This reporting requirement
is in addition to the requirement that the
CPEO report material changes relating
to responsible individuals, as provided in
sections 8.06(3)(a), (e), (f), and (g). Mate-
rial changes that must be reported as pre-
scribed in this section 8.06(4) include—
(a) Any change to the responsible indi-
vidual’s basic information, address, busi-
ness information, related entities, and oth-
er attestations (such as attestations related
to the denial, suspension, or revocation of
licenses, registrations, or accreditations);

Bulletin No. 2023–13 621 March 27, 2023
(b) Disbarments;
(c) Charges or convictions for any fed-
eral, state, or local criminal offense;
(d) IRS criminal investigations;
(e) Any failures to file any required
federal, state, or local tax or information
returns, or to pay any required federal,
state, or local taxes, in a timely or accu-
rate manner;
(f) Initiation of a bankruptcy proceed-
ing by the responsible individual; and
(g) Any assessments of the Trust Fund
Recovery Penalty under section 6672
against the responsible individual.
(5) Reporting of new responsible in-
dividuals. Each individual who, after the
CPEO’s effective date of certification,
becomes a responsible individual of the
CPEO must, within 30 days of becoming
a responsible individual, either, (i) submit
an update through the individual’s online
account adding the CPEO as a CPEO with
which the responsible individual is associ-
ated (if the responsible individual had pre-
viously completed a RIPA for any CPEO);
or, (ii) electronically submit a properly
completed and executed online RIPA and
submit fingerprints using Fieldprint, or
by such other method of fingerprint sub-
mission provided for in applicable sub-
sequent guidance, obtain an individual
(INDV) number from the IRS, and pro-
vide this INDV number to the CPEO in
the manner described on IRS.gov (if the
responsible individual had not previously
completed a RIPA). All requirements in
section 8.06(5)(ii) must occur before the
CPEO can update its responsible individ-
ual information.
(6) Reporting to customers. A CPEO
must meet the following reporting re-
quirements with respect to its customers:
(a) A CPEO must notify a customer
in writing if its CPEO contract has been
transferred to another person (or if another
person will report, withhold, or pay, under
such other person’s EIN, any applicable
federal employment taxes with respect to
the remuneration of any individuals cov-
ered by its CPEO contract with the cus-
tomer) and provide the customer with the
name and EIN of such other person no lat-
er than 10 days after the transfer or other
applicable event.
(b) A CPEO must provide its customers
with the information necessary to claim
the credits specified in section 3511(d)(2)
and any other credits specified in further
guidance, and the information necessary
to properly report employee tips, as pro-
vided in section 6053(c)(8).
(c) If a CPEO’s certification is sus-
pended or revoked, as described in section
9, the CPEO must provide written notice
to each of its customers within 10 days of
the date of such suspension or revocation,
as provided in sections 9.03(1) and 9.09.
(d) If any covered employees are not,
or cease to be, work site employees be-
cause they perform services at a location
at which the eighty-five percent threshold
described in section 7705(e)(3) is not met,
the CPEO must notify the customer in
writing within 30 days following the end
of the applicable calendar quarter that the
customer may also be liable for the federal
employment taxes imposed on remunera-
tion remitted by the CPEO to those cov-
ered employees.
(7) Information required in an agree-
ment or contract between a CPEO and a
client or customer.
(a) In the case of a service agreement
described in § 31.3504-2(b)(2) that is not
a CPEO contract (as a result of which
the individuals covered by that service
agreement are not covered employees),
or if section 3511 does not apply to a
CPEO contract in accordance with section
8.06(7)(b), the agreement or contract must
notify, or be accompanied by a notifica-
tion to, the client or customer that the ser-
vice agreement or contract is not covered
by section 3511 and does not alter the cli-
ent or customer’s liability for federal em-
ployment taxes on remuneration remitted
by the CPEO to the employees covered by
the service agreement or contract.
(b) In the case of a CPEO contract, the
contract must notify, or be accompanied
by a notification to, the customer that sec-
tion 3511 does not apply to a CPEO con-
tract under the following circumstances--
(i) The customer has a relationship to
a CPEO described in section 267(b) (in-
cluding, by cross-reference to section
267(f)) or section 707(b), except that “10
percent” shall be substituted for “50 per-
cent” wherever it appears in the applicable
sections;
(ii) The customer has commenced a
CPEO contract with the CPEO but com-
mencement has not been reported to the
IRS in accordance with section 8.06(1);
(iii) The CPEO contract has been en-
tered into by the CPEO while its certifi-
cation has been suspended by the IRS; or
(iv) The certification of a CPEO has
been revoked or voluntarily terminated
but only for the period following the ef-
fective date of the revocation or volun-
tary termination, and in which case the
notification required by section 8.06(6)(a)
should be sent as required by sections 9.09
and 10.01.
(c) In situations in which a CPEO con-
tract with a customer covers remuneration
remitted by a CPEO to self-employed in-
dividuals, the CPEO contract must notify,
or be accompanied by notification to, the
customer that the remuneration remitted
by the CPEO to any self-employed indi-
viduals is not covered by section 3511.
(8) Penalties and additions to tax. A
CPEO is subject to the penalty under sec-
tion 6652(n) for failure to make any report
required by sections 3511 and 7705, and
by § 31.3511-1(g), as well as the report-
ing requirements described in this section
8.06, and any applicable subsequent guid-
ance. In addition, a CPEO is subject to the
same penalties and additions to tax as any
employer that fails to meet the applicable
employment tax reporting requirements
discussed in section 8.06(2), including
but not limited to penalties and additions
to tax under sections 6651, 6656, 6662,
6672, 6721, 6722, and 6723. However, the
failure to file Forms 940, 941, or 943, as
applicable, along with all required sched-
ules, electronically, as provided in section
8.06(2), does not constitute a failure to
file for purposes of the section 6651(a)
(1) addition to tax or a failure to make a
report for purposes of the section 6652(n)
penalty. The consequence of any failure to
file these forms and associated schedules
electronically is the potential suspension
or revocation of certification as a CPEO,
addressed in section 9.
SECTION 9. SUSPENSION
AND REVOCATION OF CPEO
CERTIFICATION
.01 In general. The IRS may sus-
pend and revoke the certification of any
CPEO as a result of one or more failures
to comply with any of the requirements
for CPEOs described in sections 3511
and 7705, §§ 31.3511-1, 301.7705-1, and

March 27, 2023 622 Bulletin No. 2023–13
301.7705-2, this revenue procedure, and
any applicable subsequent guidance, and
will do so if the IRS determines, in its
sole discretion and based on a review of
the relevant facts and circumstances, that
one or more such failures present a mate-
rial risk to the IRS’s collection of federal
employment taxes. In determining wheth-
er one or more failures present a material
risk, the IRS generally will consider all
relevant facts and circumstances, includ-
ing the size, scope, nature, significance,
recurrence, and timing of and reason for
the failure and, in the case of a CPEO,
any prior failures of the CPEO to meet the
requirements of sections 3511 and 7705,
§§ 31.3511-1, 301.7705-1, and 301.7705-
2, this revenue procedure, and any appli-
cable subsequent guidance. In examining
the facts and circumstances concerning
one or more failures to comply with CPEO
program requirements, the IRS has sole
discretion in determining which facts and
circumstances are relevant and should be
considered, and how those relevant facts
and circumstances affect the determina-
tion as to whether the failures present a
material risk. Section 9.02 provides exam-
ples of specific failures that may result in
the issuance of a notice of suspension and
proposed revocation, the consequences of
which are described in section 9.03(1).
A CPEO may request review of the pro-
posed revocation, in the manner described
in section 9.03(2), which may result in the
lifting of the suspension or the issuance of
a notice of final revocation. Consequences
of revocation of certification are described
in section 9.09.
.02 Specific failures resulting in sus-
pension and proposed revocation. Specific
circumstances that may result in suspen-
sion and proposed revocation of certifica-
tion include, but are not limited to--
(1) Failure to complete annual and
quarterly requirements. A failure to time-
ly complete an annual verification, timely
submit annual audited financial statements
and an accompanying CPA opinion, or
timely submit a quarterly assertion, at-
testation, or working capital statement, as
provided in sections 8.02, 8.04, and 8.05;
(2) Failure to maintain bond. A failure
to maintain a bond or bonds in the required
bond amount, as provided in section 8.03;
(3) Failure to satisfy reporting re-
quirements or report a material change.
A failure to satisfy the reporting require-
ments provided in section 8.06, including
a failure of the CPEO or a responsible in-
dividual of the CPEO to notify the IRS of
a material change (as provided in sections
8.06(3) and 8.06(4));
(4) Criminal Offenses. The charging or
conviction of the CPEO, or a related entity
or a responsible individual of the CPEO,
with or for any criminal offense under the
laws of the United States or a state or po-
litical subdivision;
(5) IRS Criminal Investigation. The
CPEO, or a related entity or a responsible
individual of the CPEO, being the subject
of an active IRS criminal investigation;
(6) Failure to pay or report taxes. A
failure (other than an immaterial and iso-
lated failure that does not reflect a mean-
ingful lapse in compliance with federal
employment tax withholding and deposit
requirements) by the CPEO or any re-
sponsible individual to pay any applica-
ble federal, state, or local taxes or file any
required federal, state, or local tax or in-
formation returns in a timely and accurate
manner, unless the failure is determined to
be due to reasonable cause and not due to
willful neglect;
(7) Tax Fraud. The assessment of fraud
penalties against the CPEO or any of its
responsible individuals or related entities
by the IRS or another tax authority; and
(8) Errors or omissions. The discovery
of any errors or omissions in any annu-
al audited financial statements, working
capital statements, or CPEO application
previously submitted to the IRS in accor-
dance with sections 2.05, 2.06, 8.04 and
8.05, and § 301.7705-2(e) and (f), that
would require a restatement of previously
submitted statements.
.03 Notice of suspension and proposed
revocation. If the IRS CPEO program of-
fice determines that suspension and pro-
posed revocation of certification is ap-
propriate, the IRS will issue a notice of
suspension and proposed revocation to the
CPEO through the CPEO’s IRS Online
Registrations System account that will
explain the reason(s) for and consequenc-
es of the suspension and proposed revo-
cation, as described in section 9.03(1),
and advise the CPEO of its opportunity
to request review of the proposed revoca-
tion, as described in section 9.03(2). The
CPEO’s suspension is effective as of the
date on the notice. For questions concern-
ing the specific reasons for suspension and
proposed revocation, the consequences of
suspension and proposed revocation, or
questions concerning the review process,
the CPEO may contact the individual list-
ed at the top of the notice of suspension
and proposed revocation.
4
(1) Consequences of suspension of cer-
tification. Within 10 days of the date of the
notice of suspension and proposed revoca-
tion, the CPEO must provide written no-
tice to its customers of its suspended sta-
tus and upload a copy of this notice to its
IRS Online Registration System account.
Moreover, the IRS will include the sus-
pended CPEO in the published list of sus-
pended CPEOs, available on IRS.gov, and
may also individually notify the CPEO’s
customers of the suspension. A CPEO that
has received a notice of suspension and
proposed revocation is still responsible
for meeting all applicable certification re-
quirements in the regulations, this revenue
procedure, and any applicable subsequent
guidance. However, section 3511 will not
apply to any new CPEO contract (not in-
cluding modifications to, or extensions of,
existing contracts) that the CPEO enters
into while its certification is suspended.
Notwithstanding the foregoing, any new
CPEO contract entered into while the
CPEO’s certification is suspended is still
subject to the applicable provisions of
§ 31.3511-1(g) and sections 8.06(1), (2),
and (6), assuming the contract otherwise
constitutes a service agreement described
in § 31.3504-2(b)(2).
(2) Request for review of proposed re-
vocation. A notice of suspension and pro-
posed revocation will advise the CPEO
of its opportunity to request review of the
4
In order for the individual requesting further information to discuss a return of the CPEO or a related entity of the CPEO with the IRS, the individual must be authorized by section 6103(e)
to inspect the return of the CPEO or related entity or have a Form 8821, T
ax Information Authorization, for that CPEO or related entity and that return on file with the IRS.

Bulletin No. 2023–13 623 March 27, 2023
proposed revocation. To request a review,
the CPEO, using its IRS Online Registra-
tion account, must submit, within 30 days
of the date of the notice, a written request
for review that contains a statement of the
facts, law, and arguments in support of
the CPEO’s position, including a descrip-
tion of the actions it has taken, is taking,
or intends to take to cure the failure(s)
identified in the notice (if possible) and
to prevent the failure(s) from reoccurring.
The arguments in support of the CPEO’s
position should focus on the factual infor-
mation being provided by the CPEO con-
cerning its failure(s) to comply with the
requirements for CPEOs and on the factu-
al information being provided as evidence
disputing any underlying facts on which
the IRS based its conclusion, as well as on
the actions it has taken or intends to take
to cure the failure(s) (if possible) and to
prevent the failure(s) from reoccurring.
Although arguments concerning wheth-
er the actions the CPEO has taken or in-
tends to take have cured or will cure the
failure(s) (if possible) and will prevent the
failure(s) from reoccurring are appropri-
ate for the CPEO to make in its request
for review, arguments concerning wheth-
er the failure(s) presented or continue to
present a material risk to the IRS’s collec-
tion of federal employment taxes are out-
side the scope of review and will not be
considered.
(3) Administrative Record. Subject
to the exceptions in sections 9.05(1) and
(3), after a CPEO has submitted a written
request for review, the CPEO may not
submit any additional information as part
of its request for review or any addition-
al arguments in support of the CPEO’s
position. The IRS CPEO program office
will not consider any information or argu-
ments described in the preceding sentence
as part of the IRS CPEO program office’s
handling of the request for review under
section 9.05, unless new information is
provided pursuant to section 9.05(1) or
(3). The IRS CPEO program office also
will not forward any such information or
arguments to OPR under section 9.05(5),
unless new information is provided pursu-
ant to section 9.05(1) or (3).
(4) Extension of time to request review.
The IRS CPEO program office may ex-
tend the deadline for submitting a request
for review by an additional 30 days. To
request this 30-day extension, a CPEO
must submit a written request through its
IRS Online Registration System account
and include an explanation of the need for
the extension. A CPEO must submit its re-
quest not later than 20 days after the date
of the notice of suspension and proposed
revocation. A CPEO may request only one
extension.
(a) The IRS CPEO program office will
grant the extension if, in its sole discretion
and based on a review of the relevant facts
and circumstances, it determines that the
extension is in the interest of sound tax
administration.
(b) A request for an extension, a denial
of an extension, or any other matter relat-
ed to this section 9.03(4) is not subject to
the review described in section 9, includ-
ing section 9.06.
.04 Notice of final revocation issued if
no request for review of the proposed re-
vocation is submitted. If the CPEO does
not timely submit a request for review of
the proposed revocation in accordance
with section 9.03(2), including any ex-
tension of time under section 9.03(4), a
notice of final revocation will be issued
to the CPEO by the IRS CPEO program
office.
.05 How the IRS handles a request for
review of the proposed revocation. The
IRS CPEO program office will first review
the request to determine if the CPEO’s ac-
tions have cured or will cure the failure(s)
(if possible) and will prevent the failure(s)
from reoccurring, so that the suspension
can be lifted.
(1) Request for additional Information.
In reviewing a CPEO’s request for review,
the IRS CPEO program office may request
additional information from the CPEO, if
it determines that further materials are re-
quired to sufficiently evaluate the initial
request for review.
(a) The CPEO must provide the re-
quested information or materials by the
date specified in the request. The IRS
CPEO program office will consider any
request by the CPEO for an extension of
the time by which the requested informa-
tion or materials must be provided on a
case-by-case basis.
(b) In accordance with section 9.03(3),
a CPEO should not send any additional
information or documentary materials to
the IRS CPEO program office, unless the
information or materials are requested,
and the IRS CPEO program office will not
consider any unrequested information or
materials received from the CPEO.
(c) Similarly, if the IRS CPEO program
office requests additional information or
materials, the IRS CPEO program office
will also not consider any additional in-
formation or materials not timely provid-
ed by the CPEO (by the date specified in
the request or any extended date) or that
is not factually responsive to or is outside
the scope of the request.
(2) IRS CPEO Program Office Review.
In conducting its review, the IRS CPEO
program office will consider the initial re-
quest for review, any additional informa-
tion and documentation requested by the
IRS CPEO program office and provided
by the CPEO as part of the review pro-
cess, any additional failures, as defined in
section 9.05(3), to comply with any of the
requirements for CPEOs that arise after
the issuance of the notice of suspension
and proposed revocation, and any timely
responses by the CPEO to the additional
failures.
(3) Additional Failures. Before refer-
ring a suspension and proposed revoca-
tion to OPR for review, the IRS CPEO
program office will provide written notice
to the CPEO of, and give the CPEO ad-
ditional time to respond to, any failures
to comply with any of the requirements
for CPEOs that have arisen or were dis-
covered since the notice of suspension
and proposed revocation was issued. The
CPEO must provide any response to the
additional failures by the date specified by
the IRS CPEO program office. The IRS
CPEO program office will consider any
request by the CPEO for an extension of
the time by which the response must be
provided on a case-by-case basis. The IRS
CPEO program office will not consider
any additional information or materials
not timely provided by the CPEO by the
date specified in the request or any extend-
ed date or that is not factually responsive
to or is outside the scope of the request.
(4) Lifting the suspension. If the
IRS CPEO program office finds that the
CPEO’s actions have cured or will cure
the failure(s) (if possible) and will prevent
the failure(s) from reoccurring, the sus-
pension will be lifted. The IRS CPEO pro-
gram office will provide to the CPEO writ-

March 27, 2023 624 Bulletin No. 2023–13
ten notice of this finding that will include
the date the suspension is lifted. Section
3511 will apply to any new CPEO con-
tract that the CPEO enters into on or after
the date the suspension is lifted. However,
section 3511 does not apply to any CPEO
contract that the CPEO entered into while
it was suspended. The IRS will remove
the listed CPEO from the published list of
suspended CPEOs as soon as practicable,
but no later than the next update of the list
that occurs after the suspension is lifted.
(5) Forwarding to OPR. If, upon re-
view of the CPEO’s request for review
of the proposed revocation, the IRS
CPEO program office determines that the
CPEO’s actions have not cured or will not
cure the failure(s) and will not prevent the
failure(s) from reoccurring, it will for-
ward the administrative record to OPR
for review. The administrative record will
consist of the notice of suspension and
proposed revocation, the CPEO’s request
for review, the IRS CPEO program of-
fice’s written analysis in response to the
CPEO’s request for review, any other in-
formation timely provided by the CPEO
in response to a request by the IRS CPEO
program office, including with regard to
any additional failures, and all accompa-
nying supporting documentation, to OPR.
The administrative record will include
only information about (i) failures that
were stated in the notice of suspension
and proposed revocation or in a notice de-
scribed in section 9.05 and all supporting
documentation; and (ii) failures related
to the IRS CPEO program office’s deter-
mination, upon review of all information
subject to consideration under sections
9.03(2) and 9.05(1)-(3), that the CPEO’s
actions have not cured or will not cure
the failure(s) and will not prevent the fail-
ure(s) from reoccurring. The IRS CPEO
program office will notify the CPEO when
it forwards the administrative record to
OPR for review, including the forwarding
date.
.06 Consideration by OPR.
(1) OPR Consideration. OPR will con-
sider only the information provided in the
administrative record.
(2) Conducting the review.
(a) During OPR’s review, subject to the
exception described in section 9.06(2)(b),
neither the IRS CPEO program office, nor
the CPEO may contact OPR with respect
to the pending review, except as provided
below, and OPR will not contact the IRS
CPEO program office or the CPEO or its
authorized representative with respect to
the pending review. Further, except as
provided below, during OPR’s review, a
CPEO and its authorized representative
may not:
(i) Submit any information or docu-
mentation to OPR;
(ii) Request or offer to have a telephone
conference with OPR;
(iii) Request the name or contact in-
formation of any OPR employee who has
been assigned to conduct the review; or
(iv) Attempt to contact the OPR em-
ployee, such as by telephone or email.
(b) Notwithstanding 9.06(2)(a), the
IRS CPEO program office and the CPEO
may contact OPR to request the status of
a pending review and an estimate of when
OPR expects to complete its review. Ei-
ther OPR or the CPEO program office will
provide the CPEO applicant with contact
information for these purposes.
(c) All communications between OPR
and either the CPEO applicant or the IRS
CPEO program office will conform to cur-
rent IRS security and authentication poli-
cies and procedures, as applicable.
(3) OPR will establish procedures to
ensure that no additional information is
considered. To facilitate an independent
review, OPR will establish procedures to
ensure that any information from a CPEO
or authorized representative that is sent to
OPR outside of the administrative record,
will not be considered.
(4) Standard of review. OPR will ap-
ply an abuse of discretion standard to its
review, and if, applying this standard,
OPR finds that the IRS CPEO program
office erred (i) in proposing revocation;
or (ii) in determining that the CPEO’s
actions have not cured or will not cure
the failure(s) (if possible) and will not
prevent the failure(s) from reoccurring,
the CPEO’s certification will not be re-
voked, and its suspension will be lifted.
Under an abuse of discretion standard,
the Director, OPR will not set aside the
IRS CPEO program office’s determina-
tion unless the determination is arbitrary,
capricious, clearly unlawful, or without
a sound basis in fact or law. See Ewing,
122 T.C. at 39, see also Woodral, 112
T.C. at 23 (1999).
(5) Written Notice. If OPR finds no
abuse of discretion, OPR will provide
written notice of its finding to both the
CPEO and the IRS CPEO program office
and will issue a notice of final revocation
to the CPEO, which is described in sec-
tion 9.08. If OPR concludes that the IRS
CPEO program office’s determination
constituted an abuse of discretion, OPR
will provide written notice of its finding
to both the CPEO and the IRS CPEO
program office, which will include the
date the suspension is lifted. As of the
date the suspension is lifted, the CPEO
will be restored to full status as a CPEO,
section 3511 will once again apply to any
new CPEO contract that the CPEO enters
into. However, section 3511 does not ap-
ply to any CPEO contracts that the CPEO
entered into while it was suspended. The
IRS will remove the listed CPEO from the
list of suspended CPEOs as soon as prac-
ticable, but no later than the next update
of the list that occurs after the suspension
is lifted.
.07 A request for review may be with-
drawn. A CPEO may withdraw its request
for review of the notice of proposed re-
vocation before OPR provides written
notice of its finding to the CPEO. A re-
quest for review may be withdrawn only
upon the written request of an application
submitter, submitted through the CPEO’s
IRS Online Registration System account.
Upon receipt of the CPEO’s withdrawal
request, the IRS will issue a notice of final
revocation.
.08 Notice of final revocation. The no-
tice of final revocation will incorporate
by reference the notice of suspension and
proposed revocation (including an expla-
nation of the reason(s) for the suspension
and proposed revocation) and explain the
consequences of revocation of certifica-
tion, as described in section 9.09. If the
CPEO requested review of the proposed
revocation (and did not withdraw its re-
quest for review), the notice of final revo-
cation will also include additional discus-
sion of the IRS’s rationale for revocation
of certification in response to arguments
made in the CPEO’s request for review.
The notice of final revocation will state
the effective date of the revocation, which
will ordinarily be the first day of the first
quarter following the date of the notice of
final revocation.

Bulletin No. 2023–13 625 March 27, 2023
.09 Consequences of revocation. A
CPEO is no longer a CPEO as of the effec-
tive date of revocation stated in the notice
of final revocation, and the provisions of
section 3511 no longer apply to the orga-
nization as of that date. Unless otherwise
stated in the notice of final revocation,
within 10 days after the date of the no-
tice of final revocation, the former CPEO
must provide written notice to each of its
customers that its CPEO certification has
been revoked, that the provisions of sec-
tion 3511 no longer apply to the custom-
er’s relationship with the former CPEO,
and that the customers may also be liable
(as of the effective date of revocation) for
federal employment taxes imposed on re-
muneration remitted by the former CPEO
to all employees covered by the custom-
er’s contract with the former CPEO. The
former CPEO will also be removed from
the list of CPEOs that the IRS publishes
on IRS.gov, which is updated by the 15th
day of the first month of every calendar
quarter. Moreover, the IRS will include
the former CPEO in the published list of
revoked CPEOs, available on IRS.gov, as
soon as practicable, but no later than the
next update of the list that occurs after the
effective date of revocation, and may also
individually notify the former CPEO’s
customers of the revocation.
.10 Reapplication after revocation. A
former CPEO whose certification has been
revoked may not reapply to be certified as
a CPEO until one year has passed after the
effective date of its revocation. In seeking
re-certification, the former CPEO must
submit a completely new application,
complying with the applicable procedures
set forth in sections 2 thru 8 concerning
application for and maintenance of cer-
tification. As part of the re-application
process, the former CPEO must disclose
that it has previously been certified and
that its CPEO certification was revoked,
provide the reasons for the revocation and
explain what procedures the former CPEO
has taken in the time since the revocation
to ensure that it no longer poses a mate-
rial risk to the IRS’s collection of feder-
al employment taxes. Specifically, the
former CPEO should explain procedures
that were instituted in order to correct
its past failures and should describe how
those procedures will prevent any new
failures to comply with the requirements
of a CPEO, were it to be certified again.
The former CPEO must also submit to the
IRS CPEO program office a copy of the
written notice sent to the clients informing
them of the former CPEO’s revocation,
and a list of the clients that were notified
of the former CPEO’s revocation.
SECTION 10. VOLUNTARY
TERMINATION
.01 Notice of voluntary termination. A
CPEO may voluntarily terminate its cer-
tification at any time other than while its
certification is suspended. To voluntarily
terminate its certification, the CPEO must
submit to the IRS through its IRS Online
Registration System account a written no-
tice of voluntary termination at least 30
days prior to the date on which the CPEO
intends for the termination to take effect.
A certification may be voluntarily termi-
nated upon the written request of an ap-
plication submitter, submitted through the
CPEO’s IRS Online Registration System
account. The effective date chosen by the
CPEO must coincide with the first day of
a calendar quarter. Prior to sending the
IRS the notice of voluntary termination,
the CPEO must notify each of its custom-
ers in writing of the CPEO’s intention to
terminate its certification and of the pro-
posed effective date of termination and
provide an explanation of the employment
tax consequences of termination, includ-
ing a statement that the customer may
also be liable (as of the effective date of
termination) for federal employment tax-
es imposed on remuneration remitted by
the CPEO to all employees covered by the
customer’s contract with the CPEO.
.02 Notice of termination sent to cus-
tomers by IRS. Upon receipt of a CPEO’s
notice of voluntary termination, the IRS
may also send notification of the CPEO’s
intent to terminate certification to the
CPEO’s customers.
.03
Effect of voluntary termination. A
CPEO that voluntarily terminates its cer-
tification is, as of the effective date stat-
ed in the notice of voluntary termination,
no longer a CPEO and the provisions of
section 3511 will no longer apply to the
organization. The former CPEO will also
be removed from the list of CPEOs that
the IRS publishes on IRS.gov. Moreover,
the IRS will include the former CPEO in
the published list of voluntarily terminat-
ed CPEOs, available on IRS.gov, as soon
as practicable, but no later than the next
update of the list that occurs after the
effective date of voluntary termination,
and may also individually notify the for-
mer CPEO’s customers of the voluntary
termination.
.04 Reapplication after voluntary ter-
mination. A former CPEO whose certi-
fication as a CPEO was voluntarily ter-
minated may reapply to be certified as a
CPEO. There is no waiting period for re-
application after voluntary termination. In
seeking re-certification, the former CPEO
must submit a completely new applica-
tion, complying with the applicable pro-
cedures set forth in sections 2 thru 8 con-
cerning application for and maintenance
of certification. As part of the re-applica-
tion process, the former CPEO must dis-
close its previous voluntary termination.
Furthermore, a sample of the notification
of intention to terminate sent to custom-
ers as required in section 10.01 must be
attached to the new application.
SECTION 11. EFFECTIVE DATE
This revenue procedure is effective
March 10, 2023.
SECTION 12. PAPERWORK
REDUCTION ACT
The collection of information con-
tained in this revenue procedure has been
reviewed and approved by the Office of
Management and Budget (OMB) in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. § 3507) under control number
1545-2266.
The collection of this information in
this revenue procedure relates to the infor-
mation a person must submit to the IRS
to apply for and maintain certification as
a CPEO for purposes of sections 3511 and
7705 and to the information a CPEO must
report to the IRS and to its customers and
clients to ensure the accurate, efficient,
and transparent payment and reporting of
employment taxes. Generally, the collec-
tion of information burden associated with
this revenue procedure is reflected in the
burden estimates for Form 14737, Request
for Voluntary IRS Certification of a Pro-
fessional Employer Organization; Form

March 27, 2023 626 Bulletin No. 2023–13
14737-A, Responsible Individual Person-
al Attestation; Form 14751, Certified Pro-
fessional Employer Organization Surety
Bond; and § 301.7705-2 and § 31.3511-1,
all of which are under the same control
number. The collection of information
burden associated with sections 8.06(1)
and 8.06(2), in particular, will be reflect-
ed in the burden estimates for new Form
8973, Certified Professional Employer
Organization/Customer Reporting Agree-
ment, and for the amendments made to
the applicable Schedules R of Forms 940,
941, and 943.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
Books and records relating to the col-
lection of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and tax
return information are confidential, as re-
quired by section 6103.
SECTION 13. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Nina Huson of the Office of
the Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and Em-
ployment Taxes). For further information
regarding this revenue procedure, please
contact Nina Huson at (202) 317-4774
(not a toll-free number).
26 CFR 1.911-2: Qualified Individuals.
(Also: Part I, § 911.)
Rev. Proc. 2023-19
SECTION 1. PURPOSE
This revenue procedure provides in-
formation to any individual who failed to
meet the eligibility requirements of sec-
tion 911(d)(1) of the Internal Revenue
Code (Code) for 2022 because of adverse
conditions in a foreign country.
SECTION 2. BACKGROUND
.01 Section 911 allows a “qualified in-
dividual,” as defined in section 911(d)(1),
to elect to exclude from gross income the
foreign earned income and to exclude or
deduct the housing cost amount of such
individual.
.02 Section 911(d)(1) of the Code de-
fines the term “qualified individual” as an
individual whose tax home is in a foreign
country and who is (A) a citizen of the
United States and establishes to the sat-
isfaction of the Secretary of the Treasury
that the individual has been a bona fide
resident of a foreign country or countries
for an uninterrupted period that includes
an entire taxable year, or (B) a citizen or
resident of the United States who, during
any period of 12 consecutive months, is
present in a foreign country or countries
during at least 330 full days.
.03 In addition, section 911(d)(4) of the
Code provides that an individual will be
treated as a qualified individual with re-
spect to a period in which the individual
was a bona fide resident of, or was present
in, a foreign country if the individual left
the country during a period for which the
Secretary of the Treasury, after consultation
with the Secretary of State, determines that
individuals were required to leave because
of war, civil unrest, or similar adverse con-
ditions that precluded the normal conduct
of business. An individual must establish
that but for those conditions the individu-
al could reasonably have been expected to
meet the eligibility requirements.
.04 The Internal Revenue Service pre-
viously has listed countries for which the
eligibility requirements of section 911(d)
(1) of the Code are waived under section
911(d)(4) because of adverse conditions in
those countries. See Rev. Proc. 2022-18,
2022-13 I.R.B. 933.
SECTION 3. SCOPE
.01 For 2022, the Secretary of the Trea-
sury, in consultation with the Secretary
of State, has determined that war, civil
unrest, or similar adverse conditions pre-
cluded the normal conduct of business in
the following countries beginning on the
specified date:
Country Date of Departure On or After
Ethiopia January 3, 2022
Iraq January 14, 2022
Ukraine February 12, 2022
Belarus February 28, 2022
China April 11, 2022
Mali July 29, 2022
For example, for purposes of section
911 of the Code, an individual who left
Ethiopia on or after January 3, 2022, will
be treated as a qualified individual with
respect to the period during which that
individual was present in, or was a bona
fide resident of, Ethiopia if the individual
establishes a reasonable expectation that
he or she would have met the require-
ments of section 911(d) but for those
conditions.
.02 To qualify for relief under section
911(d)(4) of the Code, an individual must
have established residency, or have been
physically present, in the foreign country
on or before the date that the Secretary of
the Treasury determines that individuals
were required to leave the foreign country.
For example, individuals who were first
physically present or established residen-
cy in Ethiopia after January 3, 2022, are
not eligible to qualify for the exception
provided in section 911(d)(4) of the Code
for 2022.
SECTION 4. INQUIRIES
A taxpayer who needs assistance on
how to claim this exclusion, or on how to
file an amended return, should consult the
section under the heading Foreign Earned
Income Exclusion at https://www.irs.gov/
individuals/international-taxpayers/us-
citizens-and-resident-aliens-abroad; con-
sult the section under the heading How to
Get Tax Help at the same web address; or
contact a local IRS office.
SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Kate Y. Hwa of the Office of
Associate Chief Counsel (International).
For further information regarding this rev-
enue procedure contact Ms. Hwa on (202)
317-5001 (not a toll-free number).

Bulletin No. 2023–13 i March 27, 2023
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material 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.

March 27, 2023 ii Bulletin No. 2023–13
Numerical Finding List
1
Bulletin 2023–13
Announcements:
2023-2, 2023-2 I.R.B. 344
2023-1, 2023-3 I.R.B. 422
2023-3, 2023-5 I.R.B. 447
2023-4, 2023-7 I.R.B. 470
2023-5, 2023-9 I.R.B. 499
2023-6, 2023-9 I.R.B. 501
AOD:
2023-1, 2023-10 I.R.B. 502
2023-2, 2023-11 I.R.B. 529
Notices:
2023-4, 2023-2 I.R.B. 321
2023-5, 2023-2 I.R.B. 324
2023-6, 2023-2 I.R.B. 328
2023-8, 2023-2 I.R.B. 341
2023-1, 2023-3 I.R.B. 373
2023-2, 2023-3 I.R.B. 374
2023-3, 2023-3 I.R.B. 388
2023-7, 2023-3 I.R.B. 390
2023-9, 2023-3 I.R.B. 402
2023-10, 2023-3 I.R.B. 403
2023-11, 2023-3 I.R.B. 404
2023-12, 2023-6 I.R.B. 450
2023-13, 2023-6 I.R.B. 454
2023-16, 2023-8 I.R.B. 479
2023-17, 2023-10 I.R.B. 505
2023-18, 2023-10 I.R.B. 508
2023-20, 2023-10 I.R.B. 523
2023-19, 2023-11 I.R.B. 560
2023-21, 2023-11 I.R.B. 563
2023-22, 2023-12 I.R.B. 569
2023-23, 2023-13 I.R.B. 571
2023-24, 2023-13 I.R.B. 571
2023-26, 2023-13 I.R.B. 577
Proposed Regulations:
REG-100442-22, 2023-3 I.R.B. 423
REG-146537-06, 2023-3 I.R.B. 436
REG-114666-22, 2023-4 I.R.B. 437
REG 122286-18, 2023-11 I.R.B. 565
Revenue Procedures:
2023-1, 2023-1 I.R.B. 1
2023-2, 2023-1 I.R.B. 120
2023-3, 2023-1 I.R.B. 144
2023-4, 2023-1 I.R.B. 162
2023-5, 2023-1 I.R.B. 265
2023-7, 2023-1 I.R.B. 305
2023-8, 2023-3 I.R.B. 407
2023-10, 2023-3 I.R.B. 411
Revenue Procedures:—Continued
2023-11, 2023-3 I.R.B. 417
2023-14, 2023-6 I.R.B. 466
2023-9, 2023-7 I.R.B. 471
2023-13, 2023-13 I.R.B. 581
2023-17, 2023-13 I.R.B. 604
2023-18, 2023-13 I.R.B. 605
2023-19, 2023-13 I.R.B. 626
Revenue Rulings:
2023-1, 2023-2 I.R.B. 309
2023-3, 2023-6 I.R.B. 448
2023-4, 2023-9 I.R.B. 480
2023-5, 2023-10 I.R.B. 503
Treasury Decisions:
9970, 2023-2 I.R.B. 311
9771, 2023-3 I.R.B. 346
9772, 2023-11 I.R.B. 530
9773, 2023-11 I.R.B. 557
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

Bulletin No. 2023–13 iii March 27, 2023
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2023–13
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

Internal Revenue Service
Washington, DC 20224
Official Business
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