us-irs-revenue-rulings-irb-2017-27-pdf•Internal Revenue Bulletin 2017-27 (PDF rendition): IRS Revenue Rulings
Internal Revenue Bulletin 2017-27 (PDF rendition): IRS Revenue Rulings
us-irs-revenue-rulings-irb-2017-27-pdfInternal Revenue Bulletin 2017-27 (PDF rendition): IRS Revenue RulingsGuidance
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HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. INCOME TAX Action On Decision 2017– 05, page 1. Nonacquiescence to the holding that a taxpayer whose filing status is married filing separately is entitled to an earned income tax credit. Rev. Rul. 2017–14, page 2. Federal rates; adjusted federal rates; adjusted federal long- term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, 7872, and other sections of the Code, tables set forth the rates for July 2017. ADMINISTRATIVE Announcement 2017– 05, page 5. The Office of Professional Responsibility (OPR) announces re- cent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled re- tirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Inter- nal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for vio- lating the regulations. Finding Lists begin on page ii. Bulletin No. 2017–27 July 3, 2017 The IRS Mission Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and en- force the law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conven- tions, legislation, court decisions, and other items of general interest. It is published weekly. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- wise indicated. Procedures relating solely to matters of internal management are not published; however, statements of inter- nal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identify- ing details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legisla- tion and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rul- ings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Sec- retary (Enforcement). Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbar- ment and suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. July 3, 2017Bulletin No. 2017–27 Actions Relating to Court Decisions It is the policy of the Internal Revenue Service to announce at an early date whether it will follow the holdings in cer- tain cases. An Action on Decision is the document making such an announcement. An Action on Decision will be issued at the discretion of the Service only on un- appealed issues decided adverse to the government. Generally, an Action on De- cision is issued where its guidance would be helpful to Service personnel working with the same or similar issues. Unlike a Treasury Regulation or a Revenue Ruling, an Action on Decision is not an affirma- tive statement of Service position. It is not intended to serve as public guidance and may not be cited as precedent. Actions on Decisions shall be relied upon within the Service only as conclu- sions applying the law to the facts in the particular case at the time the Action on Decision was issued. Caution should be exercised in extending the recommenda- tion of the Action on Decision to similar cases where the facts are different. More- over, the recommendation in the Action on Decision may be superseded by new legislation, regulations, rulings, cases, or Actions on Decisions. Prior to 1991, the Service published acquiescence or nonac- quiescence only in certain regular Tax Court opinions. The Service has expanded its acquiescence program to include other civil tax cases where guidance is deter- mined to be helpful. Accordingly, the Ser- vice now may acquiesce or nonacquiesce in the holdings of memorandum Tax Court opinions, as well as those of the United States District Courts, Claims Court, and Circuit Courts of Appeal. Re- gardless of the court deciding the case, the recommendation of any Action on Deci- sion will be published in theInternal Revenue Bulletin. The recommendation in every Action on Decision will be summarized as ac- quiescence, acquiescence in result only, or nonacquiescence. Both “acquiescence” and “acquiescence in result only” mean that the Service accepts the holding of the court in a case and that the Service will follow it in disposing of cases with the same controlling facts. However, “acqui- escence” indicates neither approval nor disapproval of the reasons assigned by the court for its conclusions; whereas, “acqui- escence in result only” indicates disagree- ment or concern with some or all of those reasons. “Nonacquiescence” signifies that, although no further review was sought, the Service does not agree with the hold- ing of the court and, generally, will not follow the decision in disposing of cases involving other taxpayers. In reference to an opinion of a circuit court of appeals, a “nonacquiescence” indicates that the Ser- vice will not follow the holding on a na- tionwide basis. However, the Service will recognize the precedential impact of the opinion on cases arising within the venue of the deciding circuit. The Commissioner does NOT ACQUI- ESCE in the following decision: Yosef A. Tsehay v. Commissioner, T.C. Memo. 2016 –200. 1 1 Nonacquiescence to the holding that a taxpayer whose filing status is married filing separately is entitled to an earned income tax credit. Bulletin No. 2017–27July 3, 2017 1 Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 1274.— Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Sections 42, 280G, 382, 467, 468, 482, 483, 642, 1288, 7520, 7872.) Rev. Rul. 2017–14 This revenue ruling provides various prescribed rates for federal income tax purposes for July 2017 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable fed- eral rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short- term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of sec- tion 1288(b). Table 3 sets forth the ad- justed federal long-term rate and the long- term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low- income housing credit described in sec- tion 42(b)(1) for buildings placed in ser- vice during the current month. However, under section 42(b)(2), the applicable per- centage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remain- der or a reversionary interest for purposes of section 7520. Finally, Table 6 contains the blended annual rate for 2017 for pur- poses of section 7872. REV. RUL. 2017–14 TABLE 1 Applicable Federal Rates (AFR) for July 2017 Period for Compounding AnnualSemiannualQuarterlyMonthly Short-term AFR1.22%1.22%1.22%1.22% 110% AFR1.34%1.34%1.34%1.34% 120% AFR1.47%1.46%1.46%1.46% 130% AFR1.60%1.59%1.59%1.58% Mid-term AFR1.89%1.88%1.88%1.87% 110% AFR2.08%2.07%2.06%2.06% 120% AFR2.27%2.26%2.25%2.25% 130% AFR2.45%2.44%2.43%2.43% 150% AFR2.84%2.82%2.81%2.80% 175% AFR3.32%3.29%3.28%3.27% Long-term AFR2.60%2.58%2.57%2.57% 110% AFR2.86%2.84%2.83%2.82% 120% AFR3.12%3.10%3.09%3.08% 130% AFR3.38%3.35%3.34%3.33% REV. RUL. 2017–14 TABLE 2 Adjusted AFR for July 2017 Period for Compounding AnnualSemiannualQuarterlyMonthly Short-term adjusted AFR.91%.91%.91%.91% Mid-term adjusted AFR1.40%1.40%1.40%1.40% Long-term adjusted AFR1.93%1.92%1.92%1.91% July 3, 2017Bulletin No. 2017–27 2 REV. RUL. 2017–14 TABLE 3 Rates Under Section 382 for July 2017 Adjusted federal long-term rate for the current month1.93% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) 2.04% REV. RUL. 2017–14 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 2017 Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit7.52% Appropriate percentage for the 30% present value low-income housing credit3.22% REV. RUL. 2017–14 TABLE 5 Rate Under Section 7520 for July 2017 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 2.2% REV. RUL. 2017–14 TABLE 6 Blended Annual Rate for 2017 Section 7872(e)(2) blended annual rate for 20171.09% Section 42.—Low-Income Housing Credit The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 280G.—Golden Parachute Payments Federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change The adjusted applicable federal long-term rate is set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 467.—Certain Payments for the Use of Property or Services The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 482.—Allocation of Income and Deductions Among Taxpayers Federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 483.—Interest on Certain Deferred Payments The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 642.—Special Rules for Credits and Deductions Federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Bulletin No. 2017–27July 3, 2017 3 Section 7520.—Valuation Tables The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. Section 7872.—Treatment of Loans With Below- Market Interest Rates The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2017. See Rev. Rul. 2017–14, page 2. July 3, 2017Bulletin No. 2017–27 4 Part IV. Items of General Interest Announcement of Disciplinary Sanctions From the Office of Professional Responsibility Announcement 2017– 05 The Office of Professional Responsi- bility (OPR) announces recent disciplin- ary sanctions involving attorneys, certi- fied public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, appraisers, and unenrolled/ unlicensed return preparers (individuals who are not enrolled to practice and are not licensed as attorneys or certified pub- lic accountants). Licensed or enrolled practitioners are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Subtitle A, Part 10, and which are released as Treasury Department Circular No. 230. The regulations prescribe the duties and re- strictions relating to such practice and pre- scribe the disciplinary sanctions for violat- ing the regulations. Unenrolled/unlicensed return preparers are subject to Revenue Pro- cedure 81–38 and superseding guidance in Revenue Procedure 2014–42, which gov- ern a preparer’s eligibility to represent tax- payers before the IRS in examinations of tax returns the preparer both prepared for the taxpayerandsigned as the preparer. Addi- tionally, unenrolled/unlicensed return pre- parers who voluntarily participate in the An- nual Filing Season Program under Revenue Procedure 2014–42 agree to be subject to the duties and restrictions in Circular 230, including the restrictions on incompetent or disreputable conduct. The disciplinary sanctions to be im- posed for violation of the applicable stan- dards are: Disbarred from practice before the IRS—An individual who is disbarred is not eligible to practice before the IRS as defined at 31 C.F.R. § 10.2(a)(4) for a minimum period of five (5) years. Suspended from practice before the IRS—An individual who is suspended is not eligible to practice before the IRS as defined at 31 C.F.R. § 10.2(a)(4) during the term of the suspension. Censured in practice before the IRS—Censure is a public reprimand. Un- like disbarment or suspension, censure does not affect an individual’s eligibility to practice before the IRS, but OPR may subject the individual’s future practice rights to conditions designed to promote high standards of conduct. Monetary penalty—A monetary pen- alty may be imposed on an individual who engages in conduct subject to sanction, or on an employer, firm, or entity if the in- dividual was acting on its behalf and it knew, or reasonably should have known, of the individual’s conduct. Disqualification of appraiser—An appraiser who is disqualified is barred from presenting evidence or testimony in any administrative proceeding before the Department of the Treasury or the IRS. Ineligible for limited practice—An unenrolled/unlicensed return preparer who fails to comply with the require- ments in Revenue Procedure 81–38 or to comply with Circular 230 as required by Revenue Procedure 2014–42 may be determined ineligible to engage in lim- ited practice as a representative of any taxpayer. Under the regulations, indi- viduals subject to Circular 230 may not assist, or accept assistance from, indi- viduals who are suspended or disbarred with respect to matters constituting practice (i.e., representation) before the IRS, and they may not aid or abet sus- pended or disbarred individuals to prac- tice before the IRS. Disciplinary sanctions are described in these terms: Disbarred by decision, Suspended by decision, Censured by decision, Mone- tary penalty imposed by decision, and Disqualified after hearing—An adminis- trative law judge (ALJ) issued a decision imposing one of these sanctions after the ALJ either (1) granted the government’s summary judgment motion or (2) con- ducted an evidentiary hearing upon OPR’s complaint alleging violation of the regu- lations. After 30 days from the issuance of the decision, in the absence of an appeal, the ALJ’s decision becomes the final agency decision. Disbarred by default decision, Sus- pended by default decision, Censured by default decision, Monetary penalty imposed by default decision, and Dis- qualified by default decision—An ALJ, after finding that no answer to OPR’s complaint was filed, granted OPR’s mo- tion for a default judgment and issued a decision imposing one of these sanctions. Disbarment by decision on appeal, Suspended by decision on appeal, Cen- sured by decision on appeal, Monetary penalty imposed by decision on appeal, and Disqualified by decision on appeal— The decision of the ALJ was appealed to the agency appeal authority, acting as the dele- gate of the Secretary of the Treasury, and the appeal authority issued a decision im- posing one of these sanctions. Disbarred by consent, Suspended by consent, Censured by consent, Mone- tary penalty imposed by consent, and Disqualified by consent—In lieu of a dis- ciplinary proceeding being instituted or continued, an individual offered a consent to one of these sanctions and OPR ac- cepted the offer. Typically, an offer of consent will provide for: suspension for an indefinite term; conditions that the in- dividual must observe during the suspen- sion; and the individual’s opportunity, af- ter a stated number of months, to file with OPR a petition for reinstatement affirming compliance with the terms of the con- sent and affirming current fitness and eligibility to practice (i.e., an active pro- fessional license or active enrollment status, with no intervening violations of the regulations). Suspended indefinitely by decision in expedited proceeding, Suspended indef- initely by default decision in expedited proceeding, Suspended by consent in ex- pedited proceeding—OPR instituted an expedited proceeding for suspension (based on certain limited grounds, including loss of a professional license for cause, and crimi- nal convictions). Determined ineligible for limited practice—There has been a final determination that an unenrolled/unlicensed return preparer is not eligible for limited representation of any taxpayerbecause the preparer violated standards of conduct Bulletin No. 2017–27July 3, 2017 5 or failed to comply with any of the re- quirements to act as a representative. A practitioner who has been disbarred or suspended under 31 C.F.R. § 10.60, or suspended under § 10.82, or a disqualified appraiser may petition for reinstatement before the IRS after the expiration of 5 years following such disbarment, suspen- sion, or disqualification (or immediately following the expiration of the suspension or disqualification period if shorter than 5 years). Reinstatement will not be granted unless the IRS is satisfied that the peti- tioner is not likely to engage thereafter in conduct contrary to Circular 230, and that granting such reinstatement would not be contrary to the public interest. Reinstatement decisions are published at the individual’s request, and described in these terms: Reinstated to practice before the IRS—The individual’s petition for rein- statement has been granted. The individ- ual is an attorney, certified public ac- countant, enrolled agent, enrolled actuary, or an enrolled retirement plan agent, and eligible to practice before the IRS, or in the case of an appraiser, the individual is no longer disqualified. Reinstated to engage in limited prac- tice before the IRS—The individual’s pe- tition for reinstatement has been granted. The individual is an unenrolled/unlicensed return preparer and eligible to engage in limited practice before the IRS. OPR has authority to disclose the grounds for disciplinary sanctions in these situations: (1) an ALJ or the Secretary’s delegate on appeal has issued a final de- cision; (2) the individual has settled a dis- ciplinary case by signing OPR’s “consent to sanction” agreement admitting to one or more violations of the regulations and consenting to the disclosure of the admit- ted violations (for example, failure to file Federal income tax returns, lack of due diligence, conflict of interest, etc.); (3) OPR has issued a decision in an expedited proceeding for indefinite suspension; or (4) OPR has made a final determination (including any decision on appeal) that an unenrolled/unlicensed return preparer is ineligible to represent any taxpayer before the IRS. Announcements of disciplinary sanc- tions appear in the Internal Revenue Bul- letin at the earliest practicable date. The sanctions announced below are alphabet- ized first by state and second by the last names of the sanctioned individuals. City & StateName Professional DesignationDisciplinary SanctionEffective Date(s) Arizona ScottsdaleKlein, Eric M.CPASuspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from January 25, 2017 California Mill ValleyMeyer, Christine N.CPASuspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from January 26, 2017 San DiegoMuscio, Richard J.CPAReinstated to practice before the IRS, effective February 23, 2017 Klein, Eric M., see Arizona Colorado BrightonConradt, Thomas C.AttorneyNone. Eligible to practice before the IRS. (Erroneously listed in I.R.B. 2015–13 as indefinitely suspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b), effective October 27, 2014.) Correction retroactive to October 27, 2014 CentennialKrech, Robert G.Unenrolled Tax Return Preparer Reinstated to engage in limited practice before the IRS, effective February 14, 2017 July 3, 2017Bulletin No. 2017–27 6 City & StateName Professional DesignationDisciplinary SanctionEffective Date(s) Connecticut SheltonRuchandani, NanditaAttorneySuspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from March 13, 2017 District of Columbia (DC) Udo, Enyinnaya, see Maryland Georgia MiltonHays, Jr., Cecil D.CPASuspended by decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from February 2, 2017 GainesvilleStrickland, William M. CPACensured by consent for admitted violations of §§ 10.34(b)(1) (2011), 10.34(b)(2) (2011), and 10.51(a)(6) (2011) May 19, 2016 Maryland Glenn DaleUdo, EnyinnayaCPASuspended by decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from March 22, 2017 Conradt, Thomas C., see Colorado Massachusetts Philip, George, see Rhode Island Michigan PortageBrown, Andy J.CPASuspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from March 13, 2017 Minnesota Theiler, Roland J., see Wisconsin New Hampshire SalemJordan, Stephen B.Enrolled Agent Censured by consent for admitted violations of §§ 10.51(a) generally, and 10.51(a)(18) March 20, 2016 Bulletin No. 2017–27July 3, 2017 7 City & StateName Professional DesignationDisciplinary SanctionEffective Date(s) New Mexico AlbuquerqueVaughn, James A.CPASuspended by consent for admitted violation of § 10.51(a)(2) Indefinite from January 10, 2017 New York Ruchandani, Nandita, see Connecticut Oregon BeavertonAlyateem, Jiryis N.CPASuspended by decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from February 16, 2017 DetroitHagerman, Kurt L.CPASuspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from February 9, 2017 Pennsylvania PhiladelphiaRuocchio, Raymond C. Unenrolled Tax Return Preparer Reinstated to engage in limited practice before the IRS, effective March 20, 2017 Wind GapSabatine, III, Nicholas R. AttorneyCensured by consent for admitted violation of § 10.51(a)(1) March 17, 2016 Rhode Island ProvidencePhilip, GeorgeAttorneySuspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from March 13, 2017 Tennessee MorristownOsborne, Edwin P.CPAReinstated to practice before the IRS, effective March 29, 2017 Wisconsin WebsterTheiler, Roland J.AttorneySuspended by default decision in expedited proceeding under 31 C.F.R. § 10.82(b) Indefinite from February 14, 2017 July 3, 2017Bulletin No. 2017–27 8 Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect: Amplifieddescribes a situation where no change is being made in a prior pub- lished position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle ap- plied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below). Clarifiedis used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confu- sion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously pub- lished ruling and points out an essential difference between them. Modifiedis used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare withamplifiedandclarified, above). Obsoleteddescribes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rul- ings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revokeddescribes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling. Supersededdescribes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a pe- riod of time in separate rulings. If the new ruling does more than restate the sub- stance of a prior ruling, a combination of terms is used. For example,modifiedand supersededdescribes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded. Supplementedis used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rul- ings in the series. Suspendedis used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. Abbreviations The following abbreviations in current use and formerly used will appear in ma- terial published in the Bulletin. A—Individual. Acq.—Acquiescence. B—Individual. BE—Beneficiary. BK—Bank. B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cumulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Cooperative. Ct.D.—Court Decision. CY—County. D—Decedent. DC—Dummy Corporation. DE—Donee. Del. Order—Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Employer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduciary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Foreign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Federal Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grantee. GP—General Partner. GR—Grantor. IC—Insurance Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—Nonacquiescence. O—Organization. P—Parent Corporation. PHC—Personal Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Partnership. PTE —Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Real Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsidiary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Transferee. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpayer. TR—Trust. TT—Trustee. U.S.C.—United States Code. X—Corporation. Y—Corporation. Z—Corporation. Bulletin No. 2017–27July 3, 2017 i Numerical Finding List 1 Bulletin 2017–27 Action on Decision: 2017-5, 2017-27 I.R.B.1 Announcements: 2017-05, 2017-27 I.R.B.5 Revenue Rulings: 2017-14, 2017-27 I.R.B.2 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–01 through 2017–26 is in Internal Revenue Bulletin 2017–26, dated June 27, 2017. July 3, 2017Bulletin No. 2017–27 ii Finding List of Current Actions on Previously Published Items 1 Bulletin 2017–27 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–01 through 2017–26 is in Internal Revenue Bulletin 2017–26, dated June 27, 2017. Bulletin No. 2017–27July 3, 2017 iii INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available atwww.irs.gov/irb/. We Welcome Comments About the Internal Revenue Bulletin If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave. NW, IR-6230 Washington, DC 20224. Internal Revenue Service Washington, DC 20224 Official Business Penalty for Private Use, $300
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