Internal Revenue Bulletin 2010-7 (PDF rendition): IRS Announcements

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Bulletin No. 201
0-7
February 16, 201
0
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.
GIFT TAX
Notice 2010–19, page 404.
This notice applies to taxpayers making gifts in trust during
2010. Under section 2511(c) of the Code, a transfer of prop-
erty to a non-wholly owned grantor trust is a transfer by gift
of the entire interest in the property. To determine whether a
transfer to a wholly owned grantor trust constitutes a gift, the
gift tax provisions in effect prior to 2010 apply.
ADMINISTRATIVE
Rev. Proc. 2010–15, page 404.
This procedure updates Rev. Proc. 2008–14, 2008–1 C.B.
435, and identifies circumstances under which the disclosure
on a taxpayer’s income tax return with respect to an item or a
position is adequate for purposes of reducing the understate-
ment of income tax under section 6662(d) of the Code (relating
to the substantial understatement aspect of the accuracy-re-
lated penalty), and for the purpose of avoiding the tax return
preparer penalty under section 6694(a) (relating to understate-
ments due to unreasonable positions) with respect to income
tax returns.
Announcement 2010–8, page 408.
This document contains a correction to final regulations
(T.D. 9443, 2009–8 I.R.B. 564) relating to postponement of
certain tax-related deadlines either due to service in a combat
zone or due to a federally declared disaster. The regulations
reflect changes in the law made by the Victims of Terrorism Tax
Relief Act of 2001, the Tax Extenders and Alternative Minimum
Tax Relief Act of 2008 (TEAMTRA), and current IRS practice.
Announcement 2010–9, page 408.
This announcement explains the potential content of a schedule
that will require certain business taxpayers to report uncertain
tax positions on their tax returns and invites public comments
on the Internal Revenue Service’s approach.
Announcement 2010–10, page 410.
This document contains a correction to (Announcement
2010–4, 2010–5 I.R.B. 384) regarding Deletions From Cu-
mulative List of Organizations Contributions to Which are
Deductible Under Section 170 of the Code.
Announcements of Disbarments and Suspensions begin on page 410.
Finding Lists begin on page ii.

The IRS Mission
Provide Americ
a’s taxpayers top quality service by helping them
understand an
d meet their tax responsibilities and by applying
the tax 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 and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
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, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement 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 rulings 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.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al 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, Leg-
islation 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 Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d 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 c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
February 16, 20102010–7 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Guidance for Persons Making
Transfers in Trust After
December 31, 2009
Notice 2010–19
PURPOSE AND BACKGROUND
This notice alerts taxpayers that the
Internal Revenue Service (IRS) intends
to issue guidance under section 2511(c)
of the Internal Revenue Code. Congress
enacted this section in section 511(e) of
the Economic Growth and Tax Relief Rec-
onciliation Act of 2001 (EGTRRA) and
amended it in section 411(g)(1) of the
Job Creation and Worker Assistance Act
of 2002. Public Laws 107–16, 115 Stat.
71, and 107–147, 116 Stat. 46. Section
2511(c) is effective for transfers made
after December 31, 2009, and before Jan-
uary 1, 2011.
Section 2511(a) generally provides that
the gift tax shall apply to transfers in trust
or otherwise, whether direct or indirect.
Under § 25.2511–2(b) of the Gift Tax Reg-
ulations, a gift is complete when the donor
parts with sufficient dominion and control
as to leave in the donor no power to change
its disposition. Section 2511(c) provides
that, notwithstandingany other provision
of section 2511 and except as provided
in regulations, a transfer in trust shall be
treated as a transfer of property by gift
unless the trust is treated as wholly owned
by the donor or the donor’s spouse under
subpart E of part I of subchapter J of chap-
ter 1. The Joint Committee on Taxation’s
explanation of section 2511(c) provides
that certain transfers in trust are treated as
transfers of property by gift even though
such transfers would have been regarded
as incomplete gifts, or would not have
been treated as transfers under the gift tax
provisions in effect prior to 2010. Joint
Committee on Taxation,Technical Expla-
nation of the “Job Creation and Worker
Assistance Act of 2002”(JCX–12–02),
March 6, 2002.
INTERIM PROVISIONS
Some taxpayers may have inaccurately
interpreted section 2511(c) as excluding
from the gift tax transfers to a trust treated
as wholly owned by the donor or the
donor’s spouse under subpart E of part I
of subchapter J of chapter 1, even though
those transfers would otherwise be tax-
able under Chapter 12. The provisions of
Chapter 12 regarding the substantive law
applicable to the gift tax were not amended
by EGTRRA, and those provisions con-
tinue to apply to all transfers made by
donors during 2010. Section 2511(c) is an
addition to those substantive law provi-
sions and is applicable to transfers made in
2010. Section 2511(c) broadens the types
of transfers subject to the transfer tax un-
der Chapter 12 to include certain transfers
to trusts that, before 2010, would have
been considered incomplete and, thus, not
subject to the gift tax. Accordingly, each
transfer made in 2010 to a trust that is not
treated as wholly owned by the donor or
the donor’s spouse under subpart E of part
I of subchapter J of chapter 1 is considered
to be a transfer by gift of the entire interest
in the property under section 2511(c). The
provisions of Chapter 12 as in effect on
December 31, 2009, continue to apply
(both before and during 2010) to all trans-
fers made to any other trust to determine
whether the transfer is subject to gift tax.
EFFECTIVE DATE
This notice is applicable to transfers
made in trust after December 31, 2009.
The Treasury Department and the IRS in-
tend to issue regulations to confirm the
conclusions set forth in this notice.
DRAFTING INFORMATION
The principal author of this notice
is Laura Urich Daly of the Office of
Associate Chief Counsel (Passthroughs
& Special Industries).For further
information regarding this notice, contact
Laura Urich Daly at (202) 622–3090 (not
a toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also: Part 1, §§ 6662, 6694, 1.6662–4, 1.6694–2.)
Rev. Proc. 2010–15
SECTION 1. PURPOSE
This revenue procedure updates Rev.
Proc. 2008–14, 2008–1 C.B. 435, and
identifies circumstances under which the
disclosure on a taxpayer’s income tax re-
turn with respect to an item or a position
is adequate for the purpose of reducing
the understatement of income tax under
section 6662(d) of the Internal Revenue
Code (relating to the substantial under-
statement aspect of the accuracy-related
penalty), and for the purpose of avoiding
the tax return preparer penalty under sec-
tion 6694(a) (relating to understatements
due to unreasonable positions) with re-
spect to income tax returns. This rev-
enue procedure does not apply with re-
spect to any other penalty provisions (in-
cluding the disregard provisions of the sec-
tion 6662(b)(1) accuracy-related penalty,
which are subject to an exception for ad-
equate disclosure). Also, under this rev-
enue procedure, no disclosure on a return
other than an income tax return will be ad-
equate with respect to a tax return preparer
penalty under section 6694(a).
This revenue procedure applies to
any income tax return filed on 2009
tax forms for a taxable year beginning
in 2009, and to any income tax return
filed on 2009 tax forms in 2010 for short
taxable years beginning in 2010.
SECTION 2. CHANGES FROM REV.
PROC. 2008–14
.01. This revenue procedure has been
updated to reflect changes made to sec-
tion 6694(a) by the Tax Extenders and
Alternative Minimum Tax Relief Act,
Pub. L. 110–343, section 506, 122 Stat.
3765 (2008). This update also describes a
new schedule required of taxpayers filing
Schedule M–3 (Form 1120) or Schedule
M–3 (Form 1065).
2010–7 I.R.B.404February 16, 2010

SECTION 3. BACKGROUND
.01 If section 6662 applies to any por-
tion of an underpayment of tax required
to be shown on a return, an amount equal
to 20 percent of the portion of the under-
payment to which the section applies is
added to the tax (the penalty rate is 40 per-
cent in the case of gross valuation mis-
statements under section 6662(h)). Sec-
tion 6662(b)(2) applies to the portion of
an underpayment of tax that is attributable
to a substantial understatement of income
tax.
.02 Section 6662(d)(1) provides that
there is a substantial understatement of
income tax if the amount of the understate-
ment exceeds the greater of 10 percent of
the amount of tax required to be shown on
the return for the taxable year or $5,000.
Section 6662(d)(1)(B) provides special
rules for corporations. A corporation
(other than an S corporation or personal
holding company) has a substantial under-
statement of income tax if the amount of
the understatement exceeds the lesser of
10 percent of the tax required to be shown
on the return for a taxable year (or, if
greater, $10,000) or $10,000,000. Section
6662(d)(2) defines an understatement as
the excess of the amount of tax required to
be shown on the return for the taxable year
over the amount of the tax that is shown on
the return reduced by any rebate (within
the meaning of section 6211(b)(2)).
.03 In the case of an item not at-
tributable to a tax shelter, section
6662(d)(2)(B)(ii) provides that the amount
of the understatement is reduced by the
portion of the understatement attributable
to any item with respect to which the
relevant facts affecting the item’s tax treat-
ment are adequately disclosed in the return
or in a statement attached to the return,
and there is a reasonable basis for the tax
treatment of the item by the taxpayer.
.04 Section 6694(a) imposes a penalty
on a tax return preparer who prepares a re-
turn or claim for refund reflecting an un-
derstatement of liability due to an “unrea-
sonable position” if the tax return preparer
knew (or reasonably should have known)
of the position. A position (other than a
position with respect to a tax shelter or
a reportable transaction to which section
6662A applies) is generally treated as un-
reasonable unless (i) there is or was sub-
stantial authority for the position, or (ii)
the position was properly disclosed in ac-
cordance with section6662(d)(2)(B)(ii)(I)
and had a reasonable basis. If the position
is with respect to a tax shelter (as defined in
section 6662(d)(2)(C)(ii)) or a reportable
transaction to which section 6662A ap-
plies, the position is treated as unreason-
able unless it is reasonable to believe that
the position would more likely than not
be sustained on the merits. See Notice
2009–5, 2009–3 I.R.B. 309 (January 21,
2009) for interim penalty compliance rules
for tax shelter transactions.
.05 In general, this revenue proce-
dure provides guidance for determining
when disclosure is adequate for purposes
of section 6662(d)(2)(B)(ii) and section
6694(a)(2)(B). For purposes of this rev-
enue procedure, the taxpayer must furnish
all required information in accordance
with the applicable forms and instructions,
andthemoneyamountsenteredonthese
forms must be verifiable.
.06 Fiscal and short tax year returns. (a)
In general. This revenue procedure may
apply to a return for a fiscal tax year that
begins in 2009 and ends in 2010. This rev-
enue procedure may also apply to a short
year return for a period beginning in 2010
if the return is to be filed before the 2010
forms are available. (Note that individu-
als are generally not put in this position
as a decedent’s final return for a fractional
part of a year is due the fifteenth day of
the fourth month following the close of
the 12-month period which began with the
first day of such fractional part of the year.
SeeTreas. Reg. § 1.6072–1(b).) In the
case of fiscal year and short year returns,
the taxpayer must take into account any tax
law changes that are effective for tax years
beginning after December 31, 2009, even
though these changes are not reflected on
the form.
(b) Tax law changes effective after De-
cember 31, 2009. This document does
not take into account the effect of tax law
changes effective for tax years beginning
after December 31, 2009. If a line ref-
erenced in this revenue procedure is af-
fected by such a change and requires ad-
ditional reporting, a taxpayer may have
to file Form 8275,Disclosure Statement,
or Form 8275–R,Regulation Disclosure
Statementuntil the Service prescribes cri-
teria for complying with the requirement.
SECTION 4. PROCEDURE
.01 General.
(1) Additional disclosure of facts rel-
evant to, or positions taken with respect
to, issues involving any of the items set
forth below is unnecessary for purposes
of reducing any understatement of income
tax under section 6662(d) (except as other-
wise provided in section 4.02(3) concern-
ing Schedules M–1 and M–3), provided
that the forms and attachments are com-
pleted in a clear manner and in accordance
with their instructions.
(2) The money amounts entered on the
forms must be verifiable, and the informa-
tion on the return must be disclosed in the
manner described below. For purposes of
this revenue procedure, a number is veri-
fiable if, on audit, the taxpayer can prove
the origin of the amount (even if that num-
ber is not ultimately accepted by the Inter-
nal Revenue Service) and the taxpayer can
show good faith in entering that number on
the applicable form.
(3) The disclosure of an amount as pro-
videdinsection4.02belowisnotade-
quate when the understatement arises from
a transaction between related parties. If an
entry may present a legal issue or contro-
versy because of a related-party transac-
tion, then that transaction and the relation-
ship must be disclosed on a Form 8275,
Disclosure Statement, or Form 8275–R,
Regulation Disclosure Statement.
(4) When the amount of an item is
shown on a line that does not have a
preprinted description identifying that
item(suchasonanunnamedlineunder
an “Other Expense” category) the tax-
payer must clearly identify the item by
including the description on that line.
For example, to disclose a bad debt for a
sole proprietorship, the words “bad debt”
must be written or typed on the line of
Schedule C that shows the amount of the
bad debt. Also, for Schedule M–3 (Form
1120), Part II, line 25, Other income
(loss) items with differences, or Part III,
line 35, Other expense/deduction items
with differences, the entry must provide
descriptive language; for example, “Cost
of non-compete agreement deductible
not capitalizable.” If space limitations
on a form do not allow for an adequate
description, the description must be
continued on an attachment.
February 16, 20104052010–7 I.R.B.

(5) Although a taxpayer may literally
meet the disclosure requirements of this
revenue procedure, the disclosure will
have no effect for purposes of the sec-
tion 6662 accuracy-related penalty if the
item or position on the return: (1) Does
not have a reasonable basis as defined
in Treas. Reg. § 1.6662–3(b)(3); (2) Is
attributable to a tax shelter item as defined
in section 6662(d)(2); or (3) Is not prop-
erly substantiated or the taxpayer failed
to keep adequate books and records with
respect to the item or position.
(6) Disclosure also will have no effect
for purposes of the section 6694(a) penalty
as applicable to tax return preparers if the
position is with respect to a tax shelter
(as defined in section 6662(d)(2)(C)(ii)) or
a reportable transaction to which section
6662A applies.
.02 Items.
(1) Form 1040, Schedule A,Itemized
Deductions:
(a) Medical and Dental Expenses:
Complete lines 1 through 4, supplying all
required information.
(b) Taxes: Complete lines 5 through 9,
supplying all required information. Line 8
must list each type of tax and the amount
paid.
(c) Interest Expenses: Complete lines
10 through 15, supplying all required in-
formation. This section 4.02(1)(c) does
not apply to (i) amounts disallowed under
section 163(d) unless Form 4952,Invest-
ment Interest Expense Deduction,iscom-
pleted, or (ii) amounts disallowed under
section 265.
(d) Contributions: Complete lines 16
through 19, supplying all required infor-
mation. Enter the amount of the contribu-
tion reduced by the value of any substan-
tial benefit (goods or services) provided by
the donee organization in consideration, in
whole or in part. Entering the value of
the contribution unreduced by the value
of the benefit received will not constitute
adequate disclosure. If a contribution of
$250 or more is made, this section will
not apply unless a contemporaneous writ-
ten acknowledgment, as required by sec-
tion 170(f)(8), is obtained from the donee
organization. If a contribution of cash of
less than $250 is made, this section will
not apply unless a bank record or writ-
ten communication from the donee, as re-
quired by section 170(f)(17), is obtained
from the donee organization. If a contri-
bution of property other than cash is made
and the amount claimed as a deduction ex-
ceeds $500, attach a properly completed
Form 8283,Noncash Charitable Contri-
butions, to the return. In addition to the
Form 8283, if a contribution of a quali-
fied motor vehicle, boat, or airplane has a
value of more than $500, this section will
not apply unless a contemporaneous writ-
ten acknowledgment, as required by sec-
tion 170(f)(12), is obtained from the donee
organization and attached to the return. An
acknowledgment under section 170(f)(8)
is not required if an acknowledgment un-
der section 170(f)(12) is required.
(e) Casualty and Theft Losses: Com-
plete Form 4684,Casualties and Thefts,
and attach to the return. Each item or ar-
ticle for which a casualty or theft loss is
claimed must be listed on Form 4684.
(2) Certain Trade or Business Expenses
(including, for purposes of this section, the
following six expenses as they relate to the
rental of property):
(a) Casualty and Theft Losses: The pro-
cedure outlined in section 4.02(1)(e) must
be followed.
(b) Legal Expenses: The amount
claimed must be stated. This section does
not apply, however, to amounts prop-
erly characterized as capital expenditures,
personal expenses, or non-deductible lob-
bying or political expenditures, including
amounts that are required to be (or that
are) amortized over a period of years.
(c) Specific Bad Debt Charge-off: The
amount written off must be stated.
(d) Reasonableness of Officers’ Com-
pensation: Form 1120, Schedule E,Com-
pensation of Officers, must be completed
when required by its instructions. The time
devoted to business must be expressed as
a percentage as opposed to “part” or “as
needed.” This section does not apply to
“golden parachute” payments, as defined
under section 280G. This section will not
apply to the extent that remuneration paid
or incurred exceeds the $1 million-em-
ployee-remuneration limitation, if applica-
ble.
(e) Repair Expenses: The amount
claimed must be stated. This section does
not apply, however, to any repair expenses
properly characterized as capital expendi-
tures or personal expenses.
(f) Taxes (other than foreign taxes): The
amount claimed must be stated.
(3) Differences in book and income tax
reporting.
For Schedule M–1 and all Schedules
M–3, including those listed in (a)-(f) be-
low, the information provided must rea-
sonably apprise the Service of the poten-
tial controversy concerning the tax treat-
ment of the item. If the information pro-
vided does not so apprise the Service, a
Form 8275 or Form 8275–R must be used
to adequately disclose the item (see Part II
of the instructions for those forms).
Note: Anitemreportedonalinewith
a pre-printed description, shown on
an attached schedule or “itemized” on
Schedule M–1, may represent the ag-
gregate amount of several transactions
producing that item (i.e.,agroupof
similar items, such as amounts paid or
incurred for supplies by a taxpayer en-
gaged in business). In some instances,
a potentially controversial item may in-
volve a portion of the aggregate amount
disclosed on the schedule. The Service
will not be reasonably apprised of a
potential controversy by the aggregate
amount disclosed. In these instances,
the taxpayer must use Form 8275 or
Form 8275–R regarding that portion of
the item.
Combining unlike items, whether on
Schedule M–1 or Schedule M–3 (or on an
attachment when directed by the instruc-
tions), will not constitute an adequate dis-
closure.
Additionally, for taxpayers that file
the Schedule M–3 (Form 1120), the new
Schedule B,Additional Information for
Schedule M–3 Filers,must also be com-
pleted. For taxpayers that file the Schedule
M–3 (Form 1065), the new Schedule C,
Additional Information for Schedule M–3
Filers, must also be completed. When re-
quired, these new Schedules are necessary
to constitute adequate disclosure.
(a) Form 1065. Schedule M–3 (Form
1065),Net Income (Loss) Reconciliation
for Certain Partnerships:Column(a),
Income (Loss) per Income Statement,of
Part II (reconciliation of income (loss)
items) and Column (a),Expense per In-
come Statement, of Part III (reconciliation
of expense/deduction items); Column (b),
Temporary Difference,andColumn(c),
Permanent Difference,ofPartII(recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d),Income (Loss)
2010–7 I.R.B.406February 16, 2010

per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(b) Form 1120. (i) Schedule M–1,Rec-
onciliation of Income (Loss) per Books
With Income per Return.
(ii) Schedule M–3 (Form 1120),Net
Income (Loss) Reconciliation for Corpo-
rations with Total Assets of $10 Million
or More:Column(a),Income (Loss) per
Income Statement, of Part II (reconcilia-
tion of income (loss) items) and Column
(a),Expense per Income Statement,of
Part III (reconciliation of expense/de-
duction items); Column (b),Temporary
Difference,andColumn(c),Permanent
Difference, of Part II (reconciliation of
income (loss) items) and Part III (recon-
ciliation of expense/deduction items) and
Column (d),Income (Loss) per Tax Re-
turn, of Part II (reconciliation of income
(loss) items); and Column (d),Deduction
per Tax Return, of Part III (reconciliation
of expense/deduction items).
(c) Form 1120–L. Schedule M–3 (Form
1120–L),Net Income (Loss) Reconcilia-
tion for U.S. Life Insurance Companies
With Total Assets of $10 Million or More:
Column (a),Income (Loss) per Income
Statement, of Part II (reconciliation of
income (loss) items) and Column (a),
Expense per Income Statement,ofPart
III (reconciliation of expense/deduction
items); Column (b),Temporary Differ-
ence,andColumn(c),Permanent Differ-
ence, of Part II (reconciliation of income
(loss) items) and Part III (reconciliation
of expense/deduction items); and Col-
umn (d),Income (Loss) per Tax Return,
of Part II (reconciliation of income (loss)
items) and Column (d),Deduction per
Tax Return, of Part III (reconciliation of
expense/deduction items).
(d) Form 1120–PC. Schedule M–3
(Form 1120–PC),Net Income (Loss) Rec-
onciliation for U.S. Property and Casualty
Insurance Companies With Total Assets
of $10 Million or More:Column(a),In-
come (Loss) per Income Statement,of
Part II (reconciliation of income (loss)
items) and Column (a),Expense per In-
come Statement, of Part III (reconciliation
of expense/deduction items); Column (b),
Temporary Difference,andColumn(c),
Permanent Difference, of Part II (recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d),Income (Loss)
per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(e) Form 1120S. Schedule M–3 (Form
1120S),Net Income (Loss) Reconciliation
for S Corporations With Total Assets of
$10 Million or More:Column(a),Income
(Loss) per Income Statement,ofPartII
(reconciliation of income (loss) items)
and Column (a),Expense per Income
Statement, of Part III (reconciliation of
expense/deduction items); Column (b),
Temporary Difference,andColumn(c),
Permanent Difference, of Part II (recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d),Income (Loss)
per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(f) Form 1120–F. Schedule M–3 (Form
1120–F),Net Income (Loss) Reconcilia-
tion for Foreign Corporations With Re-
portable Assets of $10 Million or More:
Column (b),Temporary Difference,Col-
umn (c),Permanent Difference,andCol-
umn (d),Other Permanent Differences for
Allocations to Non-ECI and ECI,of Part II
(reconciliation of income (loss) items) and
Part III (reconciliation of expense/deduc-
tion items).
(4) Foreign Tax Items:
(a) International Boycott Transactions:
Transactions disclosed on Form 5713,
International Boycott Report; Schedule
A,International Boycott Factor (Sec-
tion 999(c)(1)); Schedule B,Specifically
Attributable Taxes and Income (Section
999(c)(2)); and Schedule C,Tax Effect
of the International Boycott Provisions,
must be completed when required by their
instructions.
(b) Treaty-Based Return Position:
Transactions and amounts under section
6114 or section 7701(b) as disclosed on
Form 8833,Treaty-Based Return Posi-
tion Disclosure Under Section 6114 or
7701(b), must be completed when required
by its instructions.
(5) Other:
(a) Moving Expenses: Complete Form
3903,Moving Expenses, and attach to the
return.
(b) Employee Business Expenses:
Complete Form 2106,Employee Business
Expenses, or Form 2106–EZ,Unreim-
bursed Employee Business Expenses,and
attach to the return. This section does not
apply to club dues, or to travel expenses
for any non-employee accompanying the
taxpayer on the trip.
(c) Fuels Credit: Complete Form 4136,
Credit for Federal Tax Paid on Fuels,and
attach to the return.
(d) Investment Credit: Complete Form
3468,Investment Credit, and attach to the
return.
SECTION 5. EFFECTIVE DATE
This revenue procedure applies to any
income tax return filed on a 2009 tax form
for a taxable year beginning in 2009, and
to any income tax return filed on a 2009
taxformin2010forashorttaxableyear
beginning in 2010.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Ryan M. Wyzik of the Office
of Associate Chief Counsel (Procedure &
Administration). For further information
regarding this revenue procedure, contact
Branch 2 of Procedure and Administration
at (202) 622–4940 (not a toll-free call).
February 16, 20104072010–7 I.R.B.

Part IV. Items o
fGeneralInterest
Postponement
of Certain
Tax-Related D
eadlines by
Reason of a Fed
erally
Declared Dis
aster or
Terroristic
or Military Action;
Correction
Announceme
nt 2010–8
AGENCY: Int
ernal Revenue Service
(IRS), Trea
sury.
ACTION: Cor
rection to final regulations.
SUMMARY: Th
is document contains a
correctio
n to final regulations (T.D. 9443,
2009–8 I.R
.B. 564) that were published in
theFedera
lRegisteron Thursday, Jan-
uary 15, 20
09 (74 FR 2370) relating to
postpone
ment of certain tax-related dead-
lines eit
her due to service in a combat
zone or du
e to a federally declared dis-
aster. Th
e regulations reflect changes in
the law ma
de by the Victims of Terrorism
Tax Relie
f Act of 2001, the Tax Extenders
and Alte
rnative Minimum Tax Relief Act
of 2008 (
TEAMTRA), and current IRS
practic
e.
DATES: T
his correction is effective on De-
cember 1
7, 2009, and is applicable on Jan-
uary 15
, 2009.
FOR FUR
THER INFORMATION
CONTAC
T: Mary Ellen Keys, (202)
622–45
70 (not a toll-free number).
SUPPLE
MENTARY INFORMATION:
Backgr
ound
The fin
al regulations (T.D. 9443) that
are the
subject of this document are un-
der sec
tion 7508A of the Internal Revenue
Code.
Need fo
r Correction
As publ
ished, the final regulations
(T.D.
9443) contain an error that may
prove
to be misleading and is in need of
clari
fication.
Correction of
Publication
Accordingly,
the publication of the final
regulations (
T.D. 9443), which were the
subject of FR D
oc. E9–767, is corrected
as follows:
On page 2370, c
olumn 3, in the pre-
amble, under
the paragraph heading “Ex-
planation of
Revisions”, last paragraph of
the column, t
hird through twelfth lines,
the language
“Example 9.Example 9,
which reflec
ts current IRS practice, ex-
plains the i
mpact of disaster relief on
installmen
t agreement payments that be-
come due dur
ing the postponement period.
Example 9
ex
plains that the affected tax-
payer’s ob
ligation to make installment
agreement
payments is suspended during
the postpo
nement period.Example 9fur-
ther expla
ins that,” is corrected to read
“Example
8.Example 8, which reflects
current I
RS practice, explains the impact
of disast
er relief on installment agreement
payments
that become due during the post-
ponement
period.Example 8explains that
the affe
cted taxpayer’s obligation to make
install
ment agreement payments is sus-
pended d
uring the postponement period.
Example
8further explains that,”.
LaNita V
an Dyke,
Chief,
Publications and
Regula
tions Branch,
Legal P
rocessing Division,
Associ
ate Chief Counsel
(Proce
dure and Administration).
(Filed by the Office of the Federal Register on December 16,
2009, 8:45 a.m., and published in the issue of the Federal
Regis
ter for December 17, 2009, 74 F.R. 66915)
Uncer
tain Tax Positions —
Poli
cy of Restraint
Anno
uncement 2010–9
The I
nternal Revenue Service is con-
side
ring changes to reporting requirements
rega
rding certain business taxpayers’ un-
cer
tain tax positions in order to improve
tax
compliance and administration. The
Ser
vice is developing a schedule requir-
ing
certain business taxpayers to report un-
cer
tain tax positions on their tax returns.
This Announce
ment discusses the poten-
tial content o
f such a schedule and invites
public commen
t on the Service’s proposed
approach. The
schedule will require the
annual disclo
sure of uncertain tax posi-
tions in the f
orm of a concise description of
those positi
ons and information about their
magnitude. T
he proposal does not require
the taxpayer
to disclose the taxpayer’s risk
assessment
or tax reserve amounts, even
though the S
ervice can compel the pro-
duction of t
his information through a sum-
mons.Unite
d States v. Arthur Young,465
U.S. 805, 8
15 (1984). While the Service
intends to
require the reporting of uncer-
tain tax po
sitions, the Service is propos-
ingtoothe
rwise retain its existing pol-
icy of rest
raint as described in Announce-
ment 2002
–63, 2002–2 C.B. 72, and IRM
4.10.20.
BACKGROU
ND
Uncertai
n Tax Positions
The Unite
d States federal income tax
system re
lies on taxpayers to make a self-
assessme
nt of tax and to file the appropri-
ate form
of return that shows the facts upon
which ta
x liability may be determined and
assesse
d. Section 601.103 of the Proce-
dure and
Administration Regulations. To
dischar
ge its obligation to fairly and uni-
formly
administer the tax laws, the Service
must be
able to identify quickly and ef-
ficien
tly significant issues (including un-
certai
n tax positions) underlying the tax
return
. Existing business tax returns do
not cu
rrently require that taxpayers iden-
tify a
nd explain uncertain tax positions un-
derly
ing their returns.
Many t
axpayers are required by FASB
Inter
pretation No. 48,Accounting for Un-
certa
inty in Income Taxes, an Interpreta-
tion o
f FASB Statement No. 109(FIN 48)
1
to ide
ntify and quantify uncertain tax po-
siti
ons taken in the return for financial ac-
coun
ting purposes. That is, taxpayers must
iden
tify and quantify for financial account-
ing p
urposes a tax position relating to a
spec
ific federal tax return for which a tax-
pay
er is required to reserve an amount un-
der
FIN 48. A taxpayer’s tax reserves and
rep
orting regarding its uncertain tax posi-
1
Under the codification of accountingstandards, the relevant portions of FIN 48 are now contained in Accounting Standards Codification subtopic 740–10,Income Taxes. FASB ASC 740–10.
2010–7 I.R.B.408February 16, 2010

tions may be reflected in its own books
and records or financial statements, or in
the books and records or financial state-
ments of a related domestic or foreign en-
tity. Taxpayers not subject to FIN 48 may
be subject to other requirements regarding
accounting for uncertain tax positions. For
example, taxpayers may be subject to other
generally accepted accounting standards,
including International Financial Report-
ing Standards (IFRS) and country-specific
generally accepted accounting standards.
The information developed in the
course of complying with FIN 48 or other
accounting standards is highly relevant to
understanding the taxpayer’s tax positions
and assessing how those positions affect
the taxpayer’s tax liability.United States
v. Arthur Young, 465 U.S. at 815. That
information also would aid the Service
in focusing its examination resources on
returns that contain specific uncertain tax
positions that are of particular interest or
of sufficient magnitude to warrant Service
inquiry, as well as allowing examination
teams to identify all of the issues under-
lying the tax returns more quickly and
efficiently.
Schedule
The Service is developing a schedule
that will require certain filers to provide
information about their uncertain tax po-
sitions that affect their United States fed-
eral income tax liability. This schedule
will be filed with the Form 1120,U.S.
Corporation Income Tax Return,or other
business tax returns. The schedule will
require (i) a concise description of each
uncertain tax position for which the tax-
payer or a related entity has recorded a
reserve in its financial statements and (ii)
the maximum amount of potential federal
tax liability attributable to each uncertain
tax position (determined without regard to
the taxpayer’s risk analysis regarding its
likelihood of prevailing on the merits).
In addition to those positions for which
a tax reserve must be established under
FIN 48 or other accounting standards, un-
certain tax positions will include any po-
sition related to the determination of any
United States federal income tax liability
for which a taxpayer or a related entity has
not recorded a tax reserve because (i) the
taxpayer expects to litigate the position, or
(ii) the taxpayer has determined that the
Service has a general administrative prac-
tice not to examine the position. For this
purpose, a related entity is any entity that
is related to the taxpayer under sections
267(b), 318(a), or 707(b).
The schedule will require a concise de-
scription of each uncertain tax position in
sufficient detail so that the Service can de-
termine the nature of the issue. The suffi-
ciency of a description will depend on the
taxpayer’s particular facts and the nature
of the underlying transaction. As currently
contemplated, this concise description will
include the rationale for the position and
a concise general statement of the reasons
for determining that the position is an un-
certain tax position. To be sufficient, the
description must contain:
1. The Code sections potentially impli-
cated by the position;
2. A description of the taxable year or
years to which the position relates;
3. A statement that the position in-
volves an item of income, gain, loss, de-
duction, or credit against tax;
4. A statement that the position in-
volves a permanent inclusion or exclusion
of any item, the timing of that item, or
both;
5. A statement whether the position
involves a determination of the value of
any property or right; and
6. A statement whether the position
involves a computation of basis.
In addition, the schedule will require a
taxpayer to specify for each uncertain tax
position the entire amount of United States
federal income tax that would be due if
the position were disallowed in its entirety
on audit. This amount is the maximum
tax adjustment for the position reflecting
all changes to items of income, gain, loss,
deduction, or credit if the position is not
sustained.
The Service anticipates publishing a no-
tice of proposed rulemaking to provide
that certain businesses required to make a
return (including corporations required to
make a return under section 6012) will be
required to file a form or schedule relat-
ing to the disclosure of uncertain tax po-
sitions as part of its return in accordance
with the forms, instructions, or other ap-
propriate guidance provided by the Ser-
vice.
The Service is also evaluating addi-
tional options for penalties or sanctions
to be imposed when a taxpayer fails to
make adequate disclosure of the required
information regarding its uncertain tax
positions. One option being considered
is to seek legislation imposing a penalty
for failure to file the schedule or to make
adequate disclosure.
Continuation of Policy of Restraint
Except as described in this Announce-
ment, the Service intends to retain the ex-
isting policy of restraint for requesting tax
accrual workpapers during the course of
examinations described in IRM 4.10.20.
The Service will continue to review the
policy and to consider additional modifica-
tions, however, as appropriate or necessary
to ensure it obtains complete and accurate
information regardinga taxpayer’s uncer-
tain tax positions on a timely basis.
SCOPE
The Service intends the new schedule
to be filed by a business taxpayer with to-
tal assets in excess of $10 million if the
taxpayer has one or more uncertain tax po-
sitions of the type required to be reported
on the new schedule. This includes a tax-
payer who prepares financial statements,
or is included in the financial statements
of a related entity that prepares financial
statements, if that taxpayer or related en-
tity determines its United States federal in-
come tax reserves under FIN 48, or other
accounting standards relating to uncertain
tax positions involving United States fed-
eral income tax.
REQUEST FOR COMMENTS
Given the importance of these issues to
both the Service and taxpayers, the Ser-
vice intends to publish the new schedule
as quickly as possible and therefore invites
the public to submit comments on the pro-
posal described in this Announcement by
March 29, 2010. The Service intends to
mandate that the new schedule for uncer-
tain tax positions be filed with returns filed
after release of the schedule. The Service
is particularly interested in comments re-
garding:
1. How the maximum tax adjustment
should be reflected on the schedule so that
it provides the Service with an objective
and quantifiable measure of each reported
tax position (e.g., specific dollar amount or
by appropriate dollar ranges);
February 16, 20104092010–7 I.R.B.

2. What alternative methods of disclo-
sure of the amount at issue would allow the
Service to identify the relative importance
of the uncertain tax positions;
3. Whether the calculation of the maxi-
mum tax adjustment should relate solely to
the tax period for which the return is filed
or to all tax periods to which the position
relates, and whether net operating losses
or excess credits should be taken into ac-
count in determining the maximum tax ad-
justment;
4. How the related entity rules should
be applied;
5. Whether the scope of the Announce-
ment should be modified regarding the un-
certain tax positions for which information
is required to be reported (e.g., positions
for which no tax reserve has been estab-
lished because the taxpayer determined the
Service has a general administrative prac-
tice not to examine the position);
6. Whether transition rules should be
used or criteria modified to either include
or exclude certain businesses taxpayers
(e.g., the proposed threshold of $10 mil-
lion total assets);
7. How the new schedule should ad-
dress taxpayers that initially did not record
a reserve for an issue, but in later years do
record a reserve; and
8. Whether the list of information pro-
posed to be included should be modified,
including whether certain information
should be requested in some circumstances
upon examination rather than with tax
return.
Comments should be submitted to: In-
ternal Revenue Service, CC:PA:LPD:PR
(Announcement 2010–9), Room 5203,
P.O. Box 7604, Ben Franklin Station,
N.W., Washington, D.C. 20044. Alter-
natively, comments may be hand deliv-
ered between the hours of 8:00 a.m. and
4:00 p.m., Monday through Friday, to
CC:PA:LPD:PR (Announcement 2010–9),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
N.W., Washington, D.C. Comments
may also be transmitted electronically
via the following e-mail address:
Announcement.Comments@irscounsel.treas.gov.
Please include “Announcement 2010–9”
in the subject line of any electronic
communications. All comments will
be available for public inspection and
copying.
DRAFTING INFORMATION
The principal author of this Announce-
ment is Kathryn Zuba of the Office of
Associate Chief Counsel (Procedure and
Administration). For further informa-
tion regarding this announcement, contact
the Office the Associate Chief Counsel
(Procedure and Administration) at (202)
622–3400 (not a toll-free call).
Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code; Correction
Announcement 2010–10
This document contains a correction
to Announcement 2010–4, 2010–5 I.R.B.
384, regarding Deletions From Cumula-
tive List of Organizations Contributions to
Which are Deductible Under Section 170
of the Code.
Accordingly, the publication of this an-
nouncement is corrected as follows:
On page 384, the text should read Coin-
mach Disaster Relief Fund Trust of Plain-
view, NY.
Announcement of Disciplinary Sanctions From the Office
of Professional Responsibility
Announcement 2010-12
TheOfficeofProfessionalResponsi-
bility (OPR) announcesrecent disciplinary
sanctions involving attorneys, certified
public accountants, enrolled agents, en-
rolled actuaries, enrolled retirement plan
agents, and appraisers. These individuals
are subject to the regulations governing
practice before the Internal Revenue Ser-
vice (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
violating the regulations.
The disciplinary sanctions to be im-
posed for violation of the regulations are:
Disbarred from practice before the
IRS—An individual who is disbarred is
not eligible to represent taxpayers before
the IRS.
Suspended from practice before the
IRS—An individual who is suspended is
not eligible to represent taxpayers before
the IRS 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 represent taxpayers before the IRS, but
OPR may subject the individual’s future
representations to conditions designed to
promote high standards of conduct.
Monetary penalty—A monetary
penalty may be imposed on an individual
who engages in conduct subject to sanc-
tion or on an employer, firm, or entity
if the individual was acting on its behalf
and if 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.
Under the regulations, attorneys, cer-
tified public accountants, enrolled agents,
enrolled actuaries, and enrolled retirement
plan agents may not assist, or accept assis-
tance from, individuals who are suspended
or disbarred with respect to matters consti-
tuting practice (i.e., representation) before
theIRS,andtheymaynotaidorabetsus-
pended or disbarred individuals to practice
before the IRS.
2010–7 I.R.B.410February 16, 2010

Disciplinary sanctions are described in
these terms:
Disbarred by decision after hearing,
Suspended by decision after hearing,
Censured by decision after hearing,
Monetary penalty imposed after hear-
ing, and Disqualified after hearing—An
administrative law judge (ALJ) conducted
an evidentiary hearing upon OPR’s com-
plaint alleging violation of the regulations
and issued a decision imposing one of
these sanctions. After 30 days from the
issuance of the decision, in the absence of
an appeal, the ALJ’s decision became the
final agency decision.
Disbarred by default decision, Sus-
pended by default decision, Censured by
default decision, Monetary penalty im-
posed by default decision, and Disqual-
ified by default decision—An ALJ, after
findingthatnoanswertoOPR’scomplaint
had been filed, granted OPR’s motion for a
default judgment and issued a decision im-
posing 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 ap-
peal, and Disqualified by decision on
appeal—The decision of the ALJ was
appealed to the agency appeal authority,
acting as the delegate of the Secretary
of the Treasury, and the appeal authority
issued a decision imposing 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
disciplinary proceeding being instituted
or continued, an individual offered a con-
sent to one of these sanctions and OPR
accepted the offer. Typically, an offer
of consent will provide for: suspension
for an indefinite term; conditions that the
individual must observe during the sus-
pension; and the individual’s opportunity,
after a stated number of months, to file
with OPR a petition for reinstatement af-
firming compliance with the terms of the
consent and affirming current eligibility
to practice (i.e., an active professional
license or active enrollment status). An
enrolled agent or an enrolled retirement
plan agent may also offer to resign in order
to avoid a disciplinary proceeding.
Suspended by decision in expedited
proceeding, Suspended by default de-
cision in expedited proceeding, Sus-
pended by consent in expedited pro-
ceeding—OPR instituted an expedited
proceeding for suspension (based on cer-
tain limited grounds, including loss of a
professional license and criminal convic-
tions).
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 decision
on or after September 26, 2007, which was
theeffectivedateofamendmentstothe
regulations that permit making such deci-
sions publicly available; (2) the individual
has settled a disciplinary case by signing
OPR’s “consent to sanction” form, which
requires consenting individuals to admit to
one or more violations of the regulations
and to consent to the disclosure of the in-
dividual’s own return information related
to the admitted violations (for example,
failure to file Federal income tax returns);
or (3) OPR has issued a decision in an
expedited proceeding for suspension.
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 the names of states and sec-
ond by the last names of individuals. Un-
less otherwise indicated, section numbers
(e.g., § 10.51) refer to the regulations.
City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Arizona
ScottsdaleWise, DannyCPASuspended by default
decision in expedited
proceeding under § 10.82
(revocation of CPA
license in California)
Indefinite from
December 14, 2009
California
W. HollywoodKitt, Eli A.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
January 27, 2010
Wise, Danny,
See Arizona
February 16, 20104112010–7 I.R.B.

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Colorado
Colorado SpringsMarple, Jon R.CPASuspended by decision
in expedited proceeding
under § 10.82 (suspension
of CPA license in
Washington State)
Indefinite from
January 26, 2010
Connecticut
West SimsburyCarpenter, DanielE.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
January 5, 2010
Georgia
AtlantaAnderson, Wade G.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
December 14, 2009
Illinois
DeerfieldGreisman, Robert S.AttorneySuspended by decision
in expedited proceeding
under § 10.82 (attorney
disbarment)
Indefinite from
January 11, 2010
Kansas
ShawneeRuther, Scott L.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
January 8, 2010
Louisiana
Baton RougeHolliday, Stephen J.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
January 8, 2010
Maryland
RockvilleCinquegrani, Peter J.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 8, 2010
Bel AirHolmes, Stephen J.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 8, 2010
2010–7 I.R.B.412February 16, 2010

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Maryland (Continued)
CockeysvilleCvach, Paul R.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
January 8, 2010
BrooklandvilleWest, Brian G.AttorneySuspended by decision
in expedited proceeding
under § 10.82 (attorney
disbarment)
Indefinite from
January 8, 2010
Massachusetts
WalthamConner, William E.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment in
New Hampshire)
Indefinite from
January 8, 2010
Michigan
PortageCampbell, John A.AttorneySuspended by default
decision in expedited
proceeding under
§ 10.82 (conviction
under 18 U.S.C. § 371,
conspiracy to defraud the
United States)
Indefinite from
January 8, 2010
Missouri
Cape GirardeauBuerkle, Joe T.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 8, 2010
Wynne, George,
See New York
New Hampshire
Conner, William E.,
See Massachusetts
New Jersey
MontvaleHover, Philip B.AttorneySuspended by decision
in expedited proceeding
under § 10.82 (attorney
disbarment)
Indefinite from
January 8, 2010
February 16, 20104132010–7 I.R.B.

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
New York
RochesterCamarata, Mark S.CPASuspended by default
decision in expedited
proceeding under
§ 10.82 (conviction
under 18 U.S.C. § 1951,
conspiracy with respect
to a public official
obtaining property from
another under the color
of official right; and
18 U.S.C. § 1957, money
laundering)
Indefinite from
January 8, 2010
RidgeKelly, William R.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
January 8, 2010
North White Plains Pilotti, Dennis M.CPASuspended by default
decision in expedited
proceeding under § 10.82
(conviction under
26 U.S.C. § 7201, tax
evasion; and 18 U.S.C.
§ 1014 & 2, making
false statements on a loan
application)
Indefinite from
January 8, 2010
New YorkWynne, GeorgeAttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment in
Missouri)
Indefinite from
January 8, 2010
North Carolina
GreensboroStakias, Gregory A.CPASuspended by default
decision in expedited
proceeding under § 10.82
(revocation of CPA
license)
Indefinite from
January 8, 2010
Oklahoma
TulsaClausing, W. K.AttorneySuspended by decision
in expedited proceeding
under § 10.82 (suspension
of attorney license)
Indefinite from
January 26, 2010
2010–7 I.R.B.414February 16, 2010

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Oregon
GreshamSunderland, Brian J.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
December 14, 2009
South Carolina
Mt. PleasantRobertson, Marvin L.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 26, 2010
Texas
El PasoDominguez, Joe A.CPASuspended by decision
in expedited proceeding
under § 10.82 (revocation
of CPA license)
Indefinite from
January 26, 2010
Virginia
BristowWalker, Andrew J.CPASuspended by default
decision in expedited
proceeding under § 10.82
(revocation of CPA
license)
Indefinite from
December 14, 2009
Washington
TacomaBenton, Charles F.CPASuspended by default
decision in expedited
proceeding under § 10.82
(revocation of CPA
license)
Indefinite from
January 26, 2010
OlympiaBurtch, Jack L.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 26, 2010
BellevueHamley, Allen C.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 26, 2010
Marple, Jon,
See Colorado
EdmondPoole, Jeffrey G.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 26, 2010
February 16, 20104152010–7 I.R.B.

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Washington (Continued)
SeattleSughrua, Thomas P.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 26, 2010
Des MoinesZoro, Gregory S.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
January 26, 2010
2010–7 I.R.B.416February 16, 2010

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 ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
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 withmodi-
fied,below).
Clarifiedis 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
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
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes 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 pub-
lished 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 rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings 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 fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
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—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
February 16, 2010i2010–7 I.R.B.

Numerical Finding List
1
Bulletins 2010–1 through 2010–7
Announcements:
2010-1, 2010-4 I.R.B.333
2010-2, 2010-2 I.R.B.271
2010-3, 2010-4 I.R.B.333
2010-4, 2010-5 I.R.B.384
2010-5, 2010-6 I.R.B.402
2010-6, 2010-6 I.R.B.402
2010-7, 2010-6 I.R.B.403
2010-8, 2010-7 I.R.B.408
2010-9, 2010-7 I.R.B.408
2010-10, 2010-7 I.R.B.410
2010-12, 2010-7 I.R.B.410
Notices:
2010-1, 2010-2 I.R.B.251
2010-2, 2010-2 I.R.B.251
2010-3, 2010-2 I.R.B.253
2010-4, 2010-2 I.R.B.253
2010-5, 2010-2 I.R.B.256
2010-6, 2010-3 I.R.B.275
2010-7, 2010-3 I.R.B.296
2010-8, 2010-3 I.R.B.297
2010-9, 2010-3 I.R.B.298
2010-10, 2010-3 I.R.B.299
2010-11, 2010-4 I.R.B.326
2010-12, 2010-4 I.R.B.326
2010-13, 2010-4 I.R.B.327
2010-14, 2010-5 I.R.B.344
2010-15, 2010-6 I.R.B.390
2010-16, 2010-6 I.R.B.396
2010-19, 2010-7 I.R.B.404
Proposed Regulations:
REG-132232-08, 2010-6 I.R.B.401
REG-137036-08, 2010-6 I.R.B.398
REG-101896-09, 2010-5 I.R.B.347
REG-131028-09, 2010-4 I.R.B.332
Revenue Procedures:
2010-1, 2010-1 I.R.B.1
2010-2, 2010-1 I.R.B.90
2010-3, 2010-1 I.R.B.110
2010-4, 2010-1 I.R.B.122
2010-5, 2010-1 I.R.B.165
2010-6, 2010-1 I.R.B.193
2010-7, 2010-1 I.R.B.231
2010-8, 2010-1 I.R.B.234
2010-9, 2010-2 I.R.B.258
2010-10, 2010-3 I.R.B.300
2010-11, 2010-2 I.R.B.269
2010-12, 2010-3 I.R.B.302
2010-13, 2010-4 I.R.B.329
Revenue Procedures— Continued:
2010-15, 2010-7 I.R.B.404
Revenue Rulings:
2010-1, 2010-2 I.R.B.248
2010-2, 2010-3 I.R.B.272
2010-3, 2010-3 I.R.B.272
2010-4, 2010-4 I.R.B.309
2010-5, 2010-4 I.R.B.312
2010-6, 2010-6 I.R.B.387
Treasury Decisions:
9474, 2010-4 I.R.B.322
9475, 2010-4 I.R.B.304
9476, 2010-5 I.R.B.336
9477, 2010-6 I.R.B.385
9478, 2010-4 I.R.B.315
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin
2009–52, dated December 28, 2009.
2010–7 I.R.B.iiFebruary 16, 2010

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2010–1 through 2010–7
Announcements:
2010-4
Corrected by
Ann. 2010-10, 2010-7 I.R.B.410
Notices:
2005-88
Superseded by
Notice 2010-13, 2010-4 I.R.B.327
2008-41
Modified by
Notice 2010-7, 2010-3 I.R.B.296
2008-55
Modified by
Notice 2010-3, 2010-2 I.R.B.253
2008-88
Modified by
Notice 2010-7, 2010-3 I.R.B.296
2008-113
Modified by
Notice 2010-6, 2010-3 I.R.B.275
2008-115
Modified by
Notice 2010-6, 2010-3 I.R.B.275
2009-11
Amplified by
Notice 2010-9, 2010-3 I.R.B.298
2009-13
Obsoleted by
T.D. 9478, 2010-4 I.R.B.315
REG-131028-09, 2010-4 I.R.B.332
2009-38
Amplified and superseded by
Notice 2010-2, 2010-2 I.R.B.251
Proposed Regulations:
REG-127270-06
Hearing scheduled by
Ann. 2010-6, 2010-6 I.R.B.402
Revenue Procedures:
80-59
Modified and superseded by
Rev. Proc. 2010-11, 2010-2 I.R.B.269
87-35
Obsoleted by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
Revenue Procedures— Continued:
2008-14
Updated by
Rev. Proc. 2010-15, 2010-7 I.R.B.404
2009-1
Superseded by
Rev. Proc. 2010-1, 2010-1 I.R.B.1
2009-2
Superseded by
Rev. Proc. 2010-2, 2010-1 I.R.B.90
2009-3
Superseded by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2009-4
Superseded by
Rev. Proc. 2010-4, 2010-1 I.R.B.122
2009-5
Superseded by
Rev. Proc. 2010-5, 2010-1 I.R.B.165
2009-6
Superseded by
Rev. Proc. 2010-6, 2010-1 I.R.B.193
2009-7
Superseded by
Rev. Proc. 2010-7, 2010-1 I.R.B.231
2009-8
Superseded by
Rev. Proc. 2010-8, 2010-1 I.R.B.234
2009-9
Superseded by
Rev. Proc. 2010-9, 2010-2 I.R.B.258
2009-15
Amplified and superseded by
Rev. Proc. 2010-12, 2010-3 I.R.B.302
2009-25
Superseded by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2010-1
Corrected by
Ann. 2010-5, 2010-6 I.R.B.402
Revenue Rulings:
67-436
Obsoleted by
REG-101896-09, 2010-5 I.R.B.347
2008-52
Supplemented and superseded by
Rev. Rul. 2010-2, 2010-3 I.R.B.272
Treasury Decisions:
9443
Corrected by
Ann. 2010-8, 2010-7 I.R.B.408
9458
Corrected by
Ann. 2010-7, 2010-6 I.R.B.403
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin 2009–52, dated December 28,
2009.
February 16, 2010iii2010–7 I.R.B.

INTERNAL REVENUE BULLETIN
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