Internal Revenue Bulletin 2009-24 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 200
9-24
June 15, 2009
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
T.D. 9450, page 1073.
Final regulations under section 6045 of the Code provide guid-
ance regarding the information reporting requirements on sales
or exchanges of standing timber for lump-sum payments.
Notice 2009–28, page 1082.
This notice provides guidance to employers that seek to claim
the work opportunity credit for either of two new targeted
groups of employees added to section 51 of the Code in the
American Recovery and Reinvestment Tax Act of 2009.
Notice 2009–47, page 1083.
This notice would propose a safe harbor for contracts with
a maturity age of 100, which are intended to qualify as life
insurance contracts under section 7702 of the Code and avoid
characterization as an MEC under section 7702A, provided the
contract complies with certain testing methodologies set out
in the notice. The notice also asks for comments on several
issues related to the use of an age 100 maturity.
Notice 2009–48, page 1085.
This notice provides guidance under section 101(j) of the Code
in the form of questions and answers concerning what enti-
ties are subject to the information reporting required for em-
ployer-owned life insurance contracts and how those entities
can provide that information. Section 101(j) was added to the
Code by the Pension Protection Act of 2006 to ensure that
employees whose lives are insured by their employers are ade-
quately informed of that coverage and its consequences. Sec-
tion 6039I sets forth corresponding reporting obligations ap-
plicable to those employers who obtain life insurance coverage
on their employees.
Rev. Proc. 2009–25, page 1088.
This procedure describes a new pilot program for single issue
letter rulings in the context of section 355 distributions. Rev.
Procs. 2009–1 and 2009–3 amplified.
TAX CONVENTIONS
Announcement 2009–43, page 1075.
This document provides a copy of the Competent Authority
Agreement entered into on May 6, 2009, by the Competent
Authorities of the United States and the Kingdom of Belgium
regarding the arbitration process set forth in the United
States-Belgium Income Tax Convention signed on November
27, 2006.
Announcement 2009–44, page 1079.
The Competent Authorities of the United States and Belgium
have agreed to adopt guidelines regarding the arbitration
process set forth in the United States-Belgium Income Tax
Convention signed on November 27, 2006.
ADMINISTRATIVE
Announcement 2009–49, page 1092.
This document cancels a public hearing on proposed regu-
lations (REG–138326–07, 2009–9 I.R.B. 638) under section
6231 of the Code that allow the IRS to convert partnership
items to nonpartnership items when the application of the
unified partnership audit and litigation procedures of sections
6221 thru 6234 (TEFRA partnership procedures) with respect
to certain tax avoidance transactions interferes with the effec-
tive and efficient enforcement of the internal revenue laws.
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.
June 15, 20092009–24 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 355.—
Distribution
of Stock and Se
curities of
a Controlled C
orporation
26 CFR 1.355–1
: Distribution of stock and securities
of a controlle
d corporation.
This revenue
procedure describes a new pilot pro-
gram for lett
er rulings under section 355 for certain
transaction
s under the jurisdiction of the Associate
Chief Counse
l (Corporate). The new program does
not diminish
the availability of letter rulings under ex-
isting progr
ams. See Rev. Proc. 2009-25, page 1088.
Section 6039I.—Returns
and Records With Respect
to Employer-Owned Life
Insurance Contracts
26 CFR 1.6039I–1: Reporting of certain employer-
owned life insurance contracts.
Guidance is provided in the form of questions and
answers concerning what entities are subject to the
information reporting required for employer-owned
life insurance contracts and how those entities can
provide that information. See Notice 2009-48, page
1085.
Section 6045.—Returns
of Brokers
26 CFR 1.6045–4: Information reporting on real es-
tate transactions with dates of closing on or after Jan-
uary 1, 1991.
T.D. 9450
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Information Reporting for
Lump-Sum Timber Sales
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final Regulations.
SUMMARY: This document contains final
regulations that provide guidance regard-
ing the information reporting requirements
contained in section 6045(e) of the Inter-
nal Revenue Code (Code) on sales or ex-
changes of standing timber for lump-sum
(outright) pa
yments. The final regulations
amend §1.6045
–4 of the Income Tax Reg-
ulations to re
quire real estate reporting per-
sons, as defi
ned in section 6045(e)(2) of
the Code, to r
eport lump-sum payments re-
ceived by sel
lers (landowners) for sales or
exchanges of
standing timber. The final
regulation
s do not change the information
reporting r
equirements that currently ap-
plytosales
or exchanges of standing tim-
ber for pay-
as-cut (contingent) payments
under secti
on 6050N of the Code.
DATES:Effective date:These regulations
are effective on May 28, 2009.
Applicability date:The amendments
to paragraphs (b)(2)(i)(E), (b)(2)(ii) and
(c)(2)(i) of §1.6045–4 shall apply to sales
or exchanges of standing timber for lump-
sum payments completed after May 28,
2009.
FOR FURTHER INFORMATION
CONTACT: Timothy S. Sheppard of the
Office of Chief Counsel (Procedure and
Administration), at (202) 622–4910.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information con-
tained in these final regulations has been
reviewed and approved by the Office of
Management and Budget (OMB) in accor-
dance with the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507(d)) under con-
trol number 1545–1085. The collection
of information in these final regulations
is in §1.6045–4. This information is re-
quired by the IRS to verify compliance
with income reporting obligations with
respect to lump-sum sales of timber. This
information will be used to enable the IRS
to verify that a taxpayer is reporting the
correct amount of income.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generall
y, tax returns and return in-
formation are
confidential, as required by
26 U.S.C. 6103
.
Background
This document contains amendments to
the Income Tax Regulations under section
6045(e) of the Code. These amendments
provide that sales or exchanges of stand-
ing timber for lump-sum payments are
“reportable real estate” transactions under
§1.6045–4(b)(2) and, thus, shall be re-
ported as provided insection 6045(e) and
the regulations.
On November 29, 2007, a notice of
proposed rulemaking (REG–155669–04,
2007–2 C.B. 1262) was published in the
Federal Register(72 FR 67589). No
comments were received from the pub-
lic in response to the notice of proposed
rulemaking and no public hearing was
requested or held. Accordingly, the pro-
posed regulations are adopted by this
Treasury decision. The final regulations
make certain minor clarifying changes to
the rules of the proposed regulations.
Special Analyses
It has been determined that this Trea-
sury decision is not asignificant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It has also been deter-
mined that section 553(b) of the Admin-
istrative Procedure Act (5 U.S.C. chapter
5) does not apply to these regulations. It
is hereby certified that these regulations
will not have a significant economic im-
pact on a substantial number of small en-
tities. This certification is based on the
fact that the collection of information bur-
den imposed by these regulations flows di-
rectly from section 6045(e) of the Code.
Moreover, requiring information reporting
as described in the preamble with regard to
sales or exchanges of standing timber for
lump-sum payments imposes minimal bur-
den in time or expense. Therefore, a Regu-
latory Flexibility Analysis under the Regu-
latory Flexibility Act (5 U.S.C. Chapter 6)
is not required. Pursuant to section 7805(f)
of the Code, the notice of proposed rule-
making preceding this regulation has been
2009–24 I.R.B.1073June 15, 2009

submitted to the Chief Counsel for Advo-
cacy of the Small Business Administration
for comment on its impact on small busi-
ness.
Drafting Information
The principal author of these regula-
tions is Timothy S. Sheppard of the Of-
fice of Associate Chief Counsel (Proce-
dure and Administration). However, other
personnel from the IRS and the Treasury
Department participated in their develop-
ment.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
Part 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.6045–4 is amended
by:
1. Redesignating paragraph (b)(2) in-
troductory text as (b)(2)(i) introductory
text.
2. In redesignated paragraph (b)(2)(i),
further redesignating paragraphs (2)(i),
(2)(ii), (2)(iii), and (2)(iv) as para-
graphs (2)(i)(A), (2)(i)(B), (2)(i)(C), and
(2)(i)(D), respectively.
3. Redesignating the undesignated
text after newly designated paragraph
(b)(2)(i)(D) as paragraph (b)(2)(ii) and
adding a sentence at the end of newly-des-
ignated paragraph (b)(2)(ii).
4. Adding new paragraph (b)(2)(i)(E).
5. Revising paragraphs (c)(2)(i) and (s).
The revisions and additions read as fol-
lows:
§1.6045–4 Information reporting on real
estate transactions with dates of closing
on or after January 1, 1991.
*****
(b) * * *
(2)* * * (i) * * *
(E) Any non-contingent interest in
standing timber.
(ii) * * * Further, the term “ownership
interest” includes any contractual interest
in a sale or exchange of standing timber for
a lump-sum payment that is fixed and not
contingent.
*****
(c) * * *
(2) * * *
(i) An interest in surface or subsurface
natural resources (for example, water,
ores, and other natural deposits) or crops,
whether or not such natural resources or
crops are severed from the land. For pur-
poses of this section, the terms “natural
resources” and “crops” do not include
standing timber.
*****
(s)Effective/applicability date.This
section applies for real estate transactions
with dates of closing (as determined under
paragraph (h)(2)(ii) of this section) that
occur on or after January 1, 1991. The
amendments to paragraphs (b)(2)(i)(E),
(b)(2)(ii) and (c)(2)(i) of this section shall
apply to sales or exchanges of standing
timber for lump-sum payments completed
after May 28, 2009.
LindaE.Stiff,
Deputy Commissioner for
Services and Enforcement.
Approved May 15, 2009.
Bernard J. Knight, Jr.,
Acting General
Counsel of the Treasury.
(Filed by the Office of the Federal Register on May 27, 2009,
8:45 a.m., and published in the issue of the Federal Register
for May 28, 2009, 74 F.R. 25429)
June 15, 200910742009–24 I.R.B.

Part II. Treaties and Tax Legislation
Subpart A.—Tax Conventions and Other Related Items
Belgian Arbitration
Memorandum of
Understanding Announcement
Announcement 2009–43
ThefollowingisacopyoftheCompe-
tent Authority Agreement entered into on
May6,2009bytheCompetentAuthorities
of the United States and the Kingdom of
Belgium regarding the arbitration process
set forth in the United States — Belgium
Income Tax Convention signed on Novem-
ber 27, 2006.
The text of the Competent Authority
Agreement is as follows:
Memorandum of Understanding
Between The Competent Authorities
of The Kingdom of Belgium And The
United States of America
The competent authorities of the King-
dom of Belgium and of the United States
of America hereby enter into the follow-
ing agreement (the “Agreement”) regard-
ing the application of the arbitration pro-
cedure under paragraph 7 and 8 of Arti-
cle 24 (Mutual Agreement Procedure) of
the Convention Between the Kingdom of
Belgium and the United States of Amer-
ica for the Avoidance of Double Taxa-
tion and the Prevention of Fiscal Evasion
with respect to Taxes on Income signed
on 27 November 2006. The Agreement
is entered into under paragraph 6(q) of
the Protocol to the Convention signed the
same date (“the Protocol”). The purpose
of this Agreement is to provide guidance
under which the U.S.-Belgian arbitration
procedure will operate.
1. Cases Eligible for Arbitration
a. According to paragraph 7 of Arti-
cle 24 of the Convention, arbitra-
tion is available in respect of any
case where the competent author-
ities have endeavored but are un-
able to reach an agreement under
Article 24 regarding the applica-
tion of the Convention.
b. An unresolved competent au-
thority request which originated
with a bilateral advance pricing
agreement (APA) request will be
subject to arbitration procedures.
(For procedures regarding APAs,
see paragraph 19 below.)
c. Once a case is accepted into the
mutual agreement procedure,
neither competent authority will
cease unilaterally to consider
a case, except for the circum-
stances described in paragraph 2.
2. Cases Ineligible for Arbitration
a. Arbitration is not available for
cases which a competent author-
ity has not accepted for compe-
tent authority consideration or
in which a competent authority
ceases to provide assistance, in
accordance withthe Convention,
the Protocol or published guid-
ance.
b. The U.S. competent authority
generally will not accept a re-
quest for competent authority
assistance or will cease provid-
ing assistance to a taxpayer, and
thus not provide for arbitration
in the circumstances described
in section 12.02 (Denial of As-
sistance) of Revenue Procedure
2006–54 (or any applicable sub-
sequent guidance). In addition
the U.S. competent authority will
not provide for arbitration for a
case in which the taxpayer has
reached a settlement on the issue
with IRS Appeals (including an
Appeals settlement through the
Appeals arbitration process) or
with Chief Counsel pursuant to
an executed closing agreement or
other written agreement such as
Form 870–AD.
c. The Belgian competent authority
generally will cease providing
mutual agreement procedure as-
sistance to a taxpayer, and thus
not provide relief through ar-
bitration if the case presented
for mutual agreement procedure
involves improper use of the
Convention or a violation of the
Belgian domestic law committed
with fraudulent intention.
d. In the event a Concerned Person
begins an administrative appeals
or judicial litigation proceedings
in a case for which competent
authority assistance is requested,
thecasewillbeconsiderednot
suitable for arbitration as long as
the appeal or litigation proceed-
ings have not been suspended
until such time as a competent
authority resolution has been
reached.
e. Arbitration is not available for a
case that has been accepted for
competent authority considera-
tion, but for which the competent
authorities agree that the particu-
lar case is not suitable for deter-
mination by arbitration pursuant
to paragraph 7 of Article 24 of
the Convention. This agreement
may, depending on the circum-
stances of the particular case,
be either a final decision, or a
temporary deferral as is contem-
plated in paragraph 4.a.i below.
3. Commencement Date
a. Within 45 days of receipt of a
MAP request for assistance each
competent authority will review
the request and verify whether
it contains the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment.
b. If a competent authority deter-
mines that the request for as-
sistance is not complete, that
competent authority will inform
the taxpayer in writing within
45 days of what information is
necessary consistent with Rev.
Proc. 2006–54 (or any appli-
cable subsequent guidance) or
the information required by the
Belgian Federal Public Service
Finance in its circular relating to
Article 24 of the Convention.
c. Once complete information is
provided, pursuant to paragraph
22(p) of the Protocol, each com-
petent authority will inform the
other competent authority of the
date it received the information
necessary to undertake substan-
tive consideration for a mutual
2009–24 I.R.B.1075June 15, 2009

agreement. The latter of these
dates will be the Commencement
Date.
d. Simultaneously, the competent
authorities will confirm with each
other that each has received the
same information.
e. When the Commencement Date
is established,
i. the competent authorities
will exchange correspon-
dence with each other con-
firming the Commencement
Date and the date the arbitra-
tion proceedings shall begin
for any subsequently neces-
sary arbitration and
ii. each competent authority
will inform its taxpayer(s) in
writing of the Commence-
ment Date and the date the
arbitration proceedings po-
tentially shall begin for any
subsequently necessary arbi-
tration.
4. Date Arbitration Proceedings Begin
a. Arbitration proceedings in a case
shall begin on the later of:
i. Two years after the Com-
mencement Date of that case,
unless both competent au-
thorities have previously
agreed to a different date,
and
ii. The earliest date upon which
the nondisclosure agree-
ments have been received by
both competent authorities.
b. The competent authorities may
agree that it is appropriate to arbi-
trate a case either before or after
two years from the Commence-
ment Date.
c. If the competent authorities agree
to begin arbitration proceedings
on a date different from that gen-
erally required, then the compe-
tent authorities will confirm that
date in writing to each other and
to the Concerned Person resident
in their territory.
5. Board Member Appointment
a. Each competent authority will ap-
point a member to the arbitration
board by sending a written com-
munication indicating their ap-
pointment to the other competent
authority within 60 days of the
date on which the arbitration pro-
ceedings begin.
b. If either competent authority fails
to appoint a member, or if the
members appointed by the com-
petent authorities fail to agree
upon the third member, the re-
maining member(s) will be ap-
pointed by the highest-ranking
member of the Secretariat at the
Centre for Tax Policy and Ad-
ministration of the Organisation
for Economic Co-operation and
Development (OECD) who is not
a citizen of either Belgium or the
United States, by written notice
to both countries within 60 days
of the date of such failure.
c. If the chair is unable to fulfill his
or her duties, the remaining two
board members will jointly in-
form both competent authorities
and select a new chair within 14
days.
d. If a board member is unable to
fulfill his or her duties the chair
will notify the competent authori-
ties. The competent authority that
selected the board member who
is unable to fulfill his or her du-
ties will select a substitute board
member within 14 days.
e. If any board member is unable to
fulfill his or her duties the com-
petent authorities will consult
with the remaining board mem-
bers to determine whether a new
timetable is necessary.
f. The competent authorities will
not appoint current government
employees or former career gov-
ernment employees within two
years from their last employment
in the government.
g. The competent authorities will
appoint members who have sig-
nificant international tax experi-
ence. They need not, however,
have experience as either a judge
or arbitrator. Every member of
an arbitration board shall be im-
partial and independent of the
contracting states and the Con-
cerned Persons at the time of ac-
cepting an appointment to serve,
and shall remain so during the
entire arbitration proceeding.
6. Nondisclosure Issues
a. Each Concerned Person and their
authorized representatives or
agents must agree in writing prior
to the beginning of arbitration
proceedings not to disclose to
any other person any information
received during the course of the
arbitration proceeding from ei-
ther competent authority or the
arbitration board, other than the
determination of the board.
7. List of Chairs
a. The competent authorities will
identify and jointly agree up to
10 persons who are qualified and
willing to serve as a Chair for an
arbitration board.
b. The competent authorities will re-
view or revise this list every third
year.
c. Persons to be identified for this
list will have significant interna-
tional tax experience. They need
not, however, have experience as
either a judge or arbitrator. Like
every member of an arbitration
board, the Chair shall be impar-
tial and independent of the con-
tracting states and the Concerned
Persons at the time of accepting
an appointment to serve, and shall
remain so during the entire arbi-
tration proceeding.
8. Proposed Resolution, Position Papers,
Supporting Papers and Reply Submis-
sions
a. Each competent authority will be
permitted to submit, within 60
days of the appointment of the
Chair of the arbitration board,
a Proposed Resolution paper,
limited to five pages, describ-
ing the proposed disposition of
the specific monetary amounts of
income, expense or taxation at
issue in the case, and a support-
ing Position Paper, limited to 30
pages, plus annexes, for consid-
eration by the arbitration board.
b. The Proposed Resolution should
be drafted in a form that pro-
vides a resolution for each spe-
cific amount of income, expense
or tax at issue in the case. The
Proposed Resolution may also
address any related issues iden-
tified by a taxpayer’s request for
June 15, 200910762009–24 I.R.B.

competent authority assistance,
that are required to be resolved to
determine the specific amount of
income, expense or tax, for ex-
ample, the threshold existence of
a permanent establishment (see
paragraph 12 below). Thus, as
may be appropriate in a particular
case, the competent authorities
may agree that a Proposed Res-
olution (or portion thereof) need
not be “an amount of income,
expense or tax”.
c. In the event that only one com-
petent authority submits a Pro-
posed Resolution within the allot-
ted time, then that Proposed Res-
olution will be deemed to be the
determination of the board in that
case and the Proceeding will be
terminated.
d. Each competent authority may, if
it so desires, submit a Reply Sub-
mission, limited to 10 pages, to
the board within 120 days of the
appointment of the Chair, to ad-
dress any points raised by the Pro-
posed Resolution or Position Pa-
per submitted by the other com-
petent authority.
e. In a particular case, the com-
petent authorities may agree on
different page limitations for the
Proposed Resolutions, Position
Papers or Reply Submissions.
f. Any annex to a Position Paper
must be a document previously
made available for the competent
authorities to use in negotiation.
g. The competent authorities will
send to the Chair four copies
of each document submitted to
the board, for distribution to the
board members and other com-
petent authority.
9. Requests for Additional Information
a. Additional information may be
submitted to the board only at its
request, and copies of the board’s
request and the competent author-
ity’s response shall be provided to
the other competent authority on
thedateonwhichtherequestor
the response is submitted.
b. The board may request additional
information that consists only of
existing documents and may not
request new or additional analy-
ses.
c. The board may establish a dead-
line for responding to the request.
10. Multiple Issues
a. A case may consist of multiple
issues. The existence of multiple
issues in a case will ordinarily be
identified by the assertion of mul-
tiple discrete proposed adjust-
ments arising from an audit (or if
there is no adjustment, multiple
discrete denied credits or claims).
The Proposed Resolution and Po-
sition Paper should address each
issue separately. However, in an
appropriate case, the competent
authorities may agree to a dif-
ferent presentation of issues to
the board, for example, where in-
terrelated adjustments have been
proposed.
b. The board will make a determi-
nation on each issue separately.
Thus, the final decision of the
board may be comprised of por-
tions of each of the Proposed Res-
olutions submitted by the compe-
tent authorities.
11. Permanent Establishment Cases
a. Position Papers and Supporting
Papers may take alternative posi-
tions. Thus, for example, a com-
petent authority may take the po-
sition that no permanent estab-
lishment exists and, nevertheless,
propose an amount of income to
be attributed to a permanent es-
tablishment, in the event that the
board determines that a perma-
nent establishment exists.
12. Competent Authority Initiating Pro-
ceedings
a. For requests for competent au-
thority assistance concerning an
adjustment raised in either Bel-
gium or the United States, the
competent authority of the coun-
try initiating the adjustment is
considered the competent author-
ity initiating the Mutual Agree-
ment Procedure.
b. For requests originally submitted
as an APA, the competent author-
ityofthecountryinwhichthe
parent company is located is con-
sidered the competent authority
initiating the Mutual Agreement
Procedure. If the parent com-
pany is a resident of a 3
rd
state,
the competent authorities will de-
termine the competent authority
serving as the one initiating the
MAP.
c. Meeting facilities, related re-
sources, financial management,
other logistical support, and gen-
eral administrative coordination
of the Proceeding will be pro-
vided, at its own cost, by the
competent authority that initiated
the Mutual Agreement Proceed-
ing.
13. Board Member Nondisclosure
a. Upon confirmation of appoint-
ment of the arbitration board,
each board member must agree
in a statement to abide by and be
subject to the confidentiality and
nondisclosure provisions of Arti-
cle 25 of the Convention and the
applicable domestic laws of the
Contracting States, as well as to
this Agreement and the Arbitra-
tion Board Operation Guidelines.
14. Communication between the Board
and the Competent Authorities
a. Before the chair is appointed, the
competent authorities will send
any correspondence concurrently
to both board members. The
chair and the competent author-
ities shall use express mail for
all correspondence other than that
sent via facsimile or email.
b. After the chair is appointed, the
competent authorities will send
any correspondence to the chair.
Similarly, the chair will send any
correspondenceconcurrently to
the competent authorities.
c. No competent authority will have
any ex parte communications, ex-
cept for administrative or logisti-
cal matters, with a board member.
d. All communication, except for
logistical matters, between the
competent authorities and the
board must be in writing. Writ-
tencommunicationbyfaxor
email is allowed, however, no
information that may identify the
taxpayer(s) may be included in
an email.
2009–24 I.R.B.1077June 15, 2009

15. Fees and Expenses
a. The fees and expenses will be
borne equally by the Contracting
States.
b. Neither Contracting State will
charge a taxpayer for costs asso-
ciated with arbitration.
c. The fees of members of the ar-
bitration board will be set at the
fixedamountof$2000(twothou-
sand United States dollars) or the
equivalent in euro per day, sub-
ject to modification by the com-
petent authorities.
d. For one case, each board member
will be compensated for no more
than three days of preparation,
for two meeting days (includ-
ing through video-conference)
and for the travel days necessary
to attend the meetings. If the
board members feel, however,
they require additional time to
properly consider the case; the
board members may be compen-
sated for additional time, with
prior approval of the competent
authorities.
e. In general, the expenses of mem-
bers of the arbitration board will
be set in accordance with the In-
ternational Centre for Settlement
of Investment Disputes (ICSID)
Schedule of Fees for arbitrators
(as in effect on the date on which
the arbitration proceedings be-
gin, subject to modification by
the competent authorities.
f. Any fees for language translation
will be borne equally by the com-
petent authorities.
16. Board Determination
a. The determination of the board
will constitute a resolution by
mutual agreement under Article
24 (Mutual Agreement Proce-
dure) of the Convention and will
be binding on both competent au-
thorities with respect to that case.
b. Within 45 days of receiving the
determination each Concerned
Person must accept the deter-
mination in writing sent to the
Contracting State of which the
Concerned Person is a resident.
If one Concerned Person fails to
accept the determination within
45 days, the determination is con-
sidered rejected and the case will
be closed. (See also paragraph
2(c)(iv).)
c. If a Concerned Person has not
renounced domestic legal reme-
dies with respect to all of the
issues covered by the arbitration
decision by the time that person
accepts the board’s determina-
tion, the determination is consid-
ered rejected and the case will be
closed.
d. The treatment of any interest or
penalties will be determined by
applicable domestic law of Bel-
gium or the United States.
17. Terminating Proceedings
a. If a taxpayer terminates by with-
drawing its request for assistance,
then the competent authorities
will exchange letters to close the
case.
b. If a taxpayer terminates an arbi-
tration proceeding by withdraw-
ing its request for assistance, the
taxpayer will not ordinarily be al-
lowed access to the competent au-
thority procedures for the same
matter and same years.
18. Advance Pricing Agreements (APA)
a. A case initially submitted to the
competent authorities as a request
for an APA is eligible for arbitra-
tion, but only to the extent tax re-
turns have been filed with respect
to the taxable years at issue, in-
cluding any years for which the
taxpayer has requested a rollback.
Tax years prior to those covered
by the APA will be covered by the
arbitration determination only if
both competent authorities have
agreed to cover those years in
their position papers and only to
the extent the tax years are still
open to assessment according to
the time limits in the domestic
law of both Contracting States.
b. For APA years for which tax re-
turns have not been filed, the
competent authorities agree to ap-
ply the transfer pricing method
used in the position paper of the
competent authority whose result
the board determined was the bet-
ter result, provided the transfer
pricing method is sufficiently de-
scribed in the supporting position
paper.
c. For purposes of establishing a
Commencement Date for a case
initially submitted as a request
for an APA, paragraph 6(p) of
the Protocol provides that the in-
formation necessary to undertake
substantive consideration for a
mutual agreement in the United
States is the information required
to be submitted to the Internal
Revenue Service under Revenue
Procedure 2006–9, section 4 (or
any applicable successor provi-
sions). In Belgium, the infor-
mation is that which would be
required under instructions or
commentaries published by the
Federal Public Service Finance.
d. Once complete information is
provided, the Commencement
Date of the case, for purposes of
any subsequently necessary ar-
bitration, will be the earlier of i)
thedateonwhichthecompetent
authorities have exchanged po-
sition papers setting forth their
initial negotiating positions or ii)
two years from the earliest date
on which the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment has been received by both
competent authorities. However,
the arbitration proceedings will
in no event commence before one
year after the submission of the
tax return for the later of the cor-
responding tax years covered by
the APA request (including any
amendments) has elapsed.
e. For requests originally submitted
as an APA, the competent author-
ity of the country in which the
parent company is located is con-
sidered the competent authority
initiating the Mutual Agreement
Procedure. If the parent com-
pany is a resident of a 3
rd
state,
the competent authorities will de-
termine the competent authority
serving as the one initiating the
MAP.
f. The provisions of paragraphs 1
through 18 apply as appropriate.
June 15, 200910782009–24 I.R.B.

Agreed:
For the Kingdom of BelgiumFor the United States of America
Sandra Knaepen
Belgian Competent Authority
1
st
Attache of Finance
International Relations Department Division
Administration of Corporate and Income Tax
Barry B. Shott
United States Competent Authority
Deputy Commissioner (International
Large and Mid-sized Business)
Date:Date:
The principal author of this announce-
ment is Ana C. Guzman of the Office of
Associate Chief Counsel (International).
For further information regarding this an-
nouncement, contactMs. Guzman at (202)
622–3880 (not a toll-free call).
U.S.-Belgium Arbitration
Board Guidelines
Announcement
Announcement 2009–44
The Competent Authorities of the
United States and Belgium have agreed to
adopt guidelines regarding the arbitration
process set forth in the United States —
Belgium Income Tax Convention signed
on November 27, 2006. These guidelines
relate to the Memorandum of Understand-
ing Between the Competent Authorities of
the Kingdom of Belgium and the United
States of America signed on May 6, 2009
(See Ann. 2009–43, I.R.B. 2009–24). The
guidelines apply to thearbitration process
and, specifically, to the operations of the
arbitration board. The text of the guide-
linesisasfollows:
Arbitration Board Operating
Guidelines
The competent authorities of the King-
dom of Belgium and of the United States
of America adopt the following guidelines
(the “Guidelines”) regarding the operation
of an arbitration board established under
paragraphs 7 and 8 of Article 24 (Mutual
Agreement Procedure) of the Convention
Between the Kingdom of Belgium and the
United States of America for the Avoid-
ance of Double Taxation and the Preven-
tion of Fiscal Evasion with respect to Taxes
on Income, signed on 27 November 2006
(the “Convention”). These Guidelines are
adopted in accordance with paragraph 6(q)
of the Protocol to the Convention, signed
on the same date (the “Protocol”).
1. Chair Appointment
a. Within 5 business days after the
appointment of the second board
member by a competent author-
ity, the board members shall con-
tact each other to discuss appoint-
ment of a third board member,
who will serve as Chair.
b. Within 60 calendar days after the
appointment of the second board
member by a competent author-
ity, the two board members shall
appoint a third member, who will
serve as a Chair.
c. The competent authorities will
provide to their appointed board
members a list of persons who
the competent authorities have
agreed may potentially serve as
Chair of the board. The com-
petent authorities encourage the
board members to select a person
from the list, particularly because
of issues regarding governmental
contracting.
d. The two board members selected
by the competent authorities may
select as a Chair a person not on
the list; however, the board mem-
bers should inform the competent
authorities, in writing, prior to
making the appointment. If they
select a person not on the list, the
person need not have arbitration
experience; however, he or she
should have significant familiar-
ity with international tax issues.
2. Non-disclosure
a. Pursuant to paragraph 6(n) of the
Protocol, upon confirmation of
appointment of the arbitration
board, each board member must
agree in a statement to abide by
and be subject to the confidential-
ity and nondisclosure provisions
of Article 25 of the Convention
and the applicable domestic laws
of the Contracting States, as well
as to the arbitration Memoran-
dum of Understanding Between
the Competent Authorities of the
Kingdom of Belgium and the
United States of America, and to
these guidelines.
3. Installation of Board
a. When the Chair accepts his or
her appointment, the Chair shall
write to both competent authori-
ties to inform them of his or her
acceptance, providing the non-
disclosure agreements and indi-
cating the date of appointment
and provide the chair’s contact in-
formation.
4. Operating Procedures
a. To the extent needed, the board
may adopt any additional proce-
dures necessary for the conduct
of its business, provided that the
procedures are not inconsistent
with any provision of Article 24
of the Convention, the Protocol,
the MOU, or any other related
agreement between Belgium and
the United States.
b. If the board adopts any additional
procedures, the Chair shall pro-
vide a written copy of them to the
competent authorities.
5. Communication with the Competent
Authorities
a. Before the Chair is appointed, the
competent authorities will send
any correspondence concurrently
to both board members.
b. After the Chair is appointed, the
competent authorities will send
any correspondence to the chair.
Similarly, the Chair will send any
2009–24 I.R.B.1079June 15, 2009

correspondence concurrently to
the competent authorities.
c. No board member will have any
ex parte communications, except
for administrative or logistical
matters, with one competent au-
thority.
d. All communication, except for
logistical matters, between the
board and the competent author-
ities must be in writing. Written
communication by fax or email
is allowed, however, no infor-
mation that may identify the tax-
payer(s) may be included in an
email. Express mail or air mail
shall be used for all correspon-
dence other than that sent via
facsimile or email.
e. The board members may commu-
nicate by telephone, videoconfer-
ence, fax or face-to-face meet-
ings. Board members may com-
municate by email; however, they
must not include any taxpayer in-
formation in the email.
f. All three board members must
be present during substantive dis-
cussions.
g. No board member shall have
communications regarding the
issues or matters before the board
with the taxpayers involved in
the case or their representatives
during or subsequent to the arbi-
tration process.
6. Position Papers and Supporting Pa-
pers
a. Within 90 days of the appoint-
ment of the chair, each competent
authority shall submit four copies
of the following documents to the
board:
i. A proposed resolution paper
not to exceed 5 pages, and
ii. A supporting position paper
not to exceed 30 pages, plus
annexes.
b. The Chair will send a copy of
each competent authority’s pro-
posed resolution and supporting
position papers to the other com-
petent authority within 5 days of
receipt of the latter submission by
the board.
c. In the event that only one com-
petent authority submits a Pro-
posed Resolution and supporting
Position Paper within the allotted
time, then that Proposed Resolu-
tion shall be deemed to be the de-
terminationoftheboardinthat
case and the Proceeding shall be
terminated.
7. Reply Submissions
a. Within 180 days of the appoint-
ment of the chair, each compe-
tent authority may submit four
copies of a reply submission not
to exceed 10 pages, to address
any points raised by the proposed
resolution or position paper sub-
mitted by the other competent au-
thority.
b. The Chair will send a copy of
each competent authority’s re-
ply submission paper to the other
competent authority within 5
days of receipt of the later reply
by the board.
8. Requesting Additional Information
a. The competent authorities may
not submit to the board any ad-
ditional information, unless the
Chair so requests.
b. The board may request addi-
tional information only from ei-
ther competent authority. Such
a request shall be in writing and
include a response deadline. On
the date the Chair issues the re-
quest, the Chair shall send a copy
of the request to the other com-
petent authority.
c. The Chair shall send a copy of a
competent authority’s response to
the other competent authority.
9. Board Meetings
a. The competent authorities en-
courage the members to use tele-
conferencing and videoconfer-
encing. If a face-to-face meeting
is necessary, the Chair will con-
tact the competent authority of
the country that initiated the mu-
tual agreement proceeding and
ask it to arrange facilities for the
meeting.
i. For requests for competent
authority assistance concern-
inganadjustmentraisedin
either Belgium or the United
States, the competent au-
thority of the country that
proposed the adjustment (or
in the case where there is no
adjustment, denied the credit
or claim) is considered the
competent authority initiat-
ing the mutual agreement
procedure.
ii. For requests originally sub-
mitted as an APA, the com-
petent authority of the coun-
try in which the parent com-
pany is located is consid-
ered the competent authority
initiating the mutual agree-
ment procedure. If the par-
ent company is a resident of
a3
rd
state, the competent au-
thorities will determine the
competent authority serving
as the one initiating the MAP.
b. The competent authority will ar-
range meeting facilities in a lo-
cation that minimizes the board’s
travel time and expenses. Each
competent authority may arrange
a meeting in the other’s meeting
facilities, as needed.
10. A Board Member’s Use of Staff
a. The competent authorities antici-
pate that board members will be
able to perform their duties with-
out the use of additional staff.
b. If a board member uses staff, that
staff person must sign a non-dis-
closure agreement before per-
forming any work on the matter.
c. The board member must send the
non-disclosure agreement to the
competent authorities.
d. The staff person must be subject
to the same conflict of interest
rules as the board member.
e. The competent authorities will
not compensate the staff member.
11. Payment of Board Members
a. The expenses of members of the
board shall be set in accordance
with the International Centre for
Settlement of Investment Dis-
putes (ICSID) Schedule of Fees
for arbitrators, as in effect on the
date on which the arbitration pro-
ceedings begin. This applies in
particular for hotel, meals and
incidental costs. With regard to
travel expenses, board members
will be reimbursed for economy
class travel.
b. With respect to fees, each board
member will be compensated
June 15, 200910802009–24 I.R.B.

for no more than three days of
preparation, for two meeting days
(including through video-confer-
ence) and for travel days.
c. If the board members feel they re-
quire additional time to properly
consider the case, the Chair will
contact the competent authorities
to request additional time.
12. Inability of a Board Member to Fulfill
Duties
a. If the Chair is unable to fulfill
his or her duties, the remaining
two board members will jointly
inform both competent authori-
ties and select a new Chair within
14 days.
b. If one of the other board mem-
bers is unable to fulfill his or her
duties, the Chair will notify the
competent authorities. The com-
petent authority that selected the
board member who is unable to
fulfill his or her duties will select
a substitute board member within
14 days.
c. If any board member is unable to
fulfill his or her duties the compe-
tent authorities will consult with
the remaining board members to
determine a new timetable, if nec-
essary.
d. Should it come to light that a
board member has a conflict of
interest which would have pre-
vented that member’s original
appointment, the board member
must recuse himself or herself
from consideration of the case
and inform the competent author-
ities.
13. Process for Board’s Determination
a. The board must make a determi-
nation by adopting one of the pro-
posed resolutions submitted by
the competent authorities.
b. For each issue, each board mem-
ber must choose one of the pro-
posed resolutions.
c. A majority vote shall determine
the decisions of the board in a
case.
14. Multiple Issue Cases.
a. If a case contains more than one
issue (for example, the case in-
volves the transfer of tangible
goods, the transfer of intangible
goods and the performance of
services) the board will make a
determination on each issue indi-
vidually.
15. Permanent Establishment Cases
a. If the competent authorities have
not reached an agreement on
the existence of a permanent es-
tablishment, the first issue the
board members must determine
is whether a permanent establish-
ment exists.
b. Once it is determined that a per-
manent establishment exists, the
second issue the board mem-
bers must then determine is the
amount of income attributable
to that permanent establishment.
Accordingly, the competent au-
thorities may submit a position
paper and supporting paper that
takes alternative positions. For
example, a competent authority
may take the position that a per-
manent establishment does not
exist and should the board decide
that a permanent establishment
exists, determine the amount of
income that should be attributed
to that permanent establishment.
16. Board’s Determination
a. Within 9 months of the appoint-
ment of the chair, the Chair must
provide the written determination
concurrently to each competent
authority.
b. The written determination must,
for each issue, include only one of
the two proposed resolutions for
theissuepresentedtotheBoard.
c. The board will not determine the
treatment of any associated inter-
est or penalties; rather that treat-
ment will be determined by ap-
plicable domestic law of Belgium
and the United States, as the case
may be.
d. The written determination shall
not include any rationale or anal-
ysis.
e. The determination of the board
will have no precedential value.
f. No information relating to
the Proceeding (including the
board’s determination) may be
disclosed by the members of the
arbitration board or their staffs
or by either competent authority,
except as permitted by the Con-
vention and the domestic laws of
Belgium or the United States.
17. Terminating a Proceeding
a. A Proceeding may be terminated
by the board’s determination in
the matter, by the competent au-
thorities reaching a mutual agree-
ment, or by a taxpayer’s with-
drawal of its competent authority
request.
b. If a taxpayer withdraws its com-
petent authority request, the com-
petent authorities will notify the
board that the taxpayer has with-
drawn its request and the arbitra-
tion process is terminated.
c. If the competent authorities wish
to terminate a proceeding (for ex-
ample, because they have reached
an agreement on the treatment of
the case), the competent authori-
ties will notify the board that they
have reached a mutual agreement
and the arbitration process is ter-
minated.
d. Regardless, at the termination of
any proceeding each board mem-
ber must immediately destroy all
documents or other information
received from either competent
authority, or otherwise reflect-
ing the considerations or discus-
sions of the arbitration board, and
delete all information that may be
stored on any computer, personal
data assistant or other electronic
device or media.
18. Terms that arecapitalized but not
defined in these Guidelines have the
same meaning set forth in the Con-
vention or Protocol.
The principal author of this announce-
ment is Ana C. Guzman of the Office of
Associate Chief Counsel (International).
For further information regarding this an-
nouncement, contact Ana C. Guzman at
(202) 622–3880 (not a toll-free call).
2009–24 I.R.B.1081June 15, 2009

Part III. Administrative, Procedural, and Miscellaneous
Work Opportunity Tax Credit
Notice 2009–28
PURPOSE
Section 51 of the Internal Revenue
Code (the Code) provides for a Work
Opportunity Tax Credit (WOTC) for em-
ployers who hire individuals who are
members of targeted groups. Section 1221
of the American Recovery and Reinvest-
ment Tax Act of 2009 (ARRTA), enacted
February 17, 2009, Div. B, Tit. I of Pub.
L.No. 111–5,amended§51toaddtwo
new targeted groups for purposes of the
WOTC. New § 51(d)(14) provides that
unemployed veterans and disconnected
youth who begin work for an employer
during 2009 or 2010 shall be treated as
members of a targeted group for purposes
of the WOTC.
This notice sets forth the statutory
definitions of “unemployed veteran” and
“disconnected youth,” and provides guid-
ance on the definition of “disconnected
youth.” It also provides transition relief for
employers who hire unemployed veterans
or disconnected youth after December 31,
2008, and before July 17, 2009.
I. STATUTORY DEFINITION OF
UNEMPLOYED VETERAN
For purposes of § 51(d)(14), the term
“veteran” means any individual who is cer-
tified by the designated local agency (as
defined in § 51(d)(12) as a State employ-
ment security agency established in accor-
dance with the Act of June 6, 1933, as
amended (29 U.S.C. § 49–49n)) as:
(1) having served on active duty (other
than active duty for training) in the Armed
Forces of the United States (Armed
Forces) for a period of more than 180
days; or
(2) having been discharged or released
fromactivedutyintheArmedForcesfora
service-connected disability.
Section 51(d)(14)(B)(i) provides that
the term “unemployed veteran” means any
veteran who is certified by the designated
local agency as:
(1) having been discharged or released
from active duty in the Armed Forces at
any time during the 5-year period ending
on the hiring date; and
(2) being in receipt of unemployment
compensation under State or Federal law
for not less than four weeks during the one-
year period ending on the hiring date.
II. DISCONNECTED YOUTH
A. Statutory Definition
Section 51(d)(14)(B)(ii) provides that
the term “disconnected youth” means any
individual who is certified by the desig-
nated local agency:
(I) as having attained age 16 but not age
25 on the hiring date;
(II) as not regularly attending any
secondary, technical, or post-secondary
school during the 6-month period preced-
ing the hiring date;
(III) as not regularly employed during
such 6-month period; and
(IV) as not readily employable by rea-
son of lacking a sufficient number of basic
skills.
The Conference Agreement on
ARRTA, H.R. Rep. No. 111–16, at 554,
states:
For purposes of the disconnected
youths, it is intended that a low level
of formal education may satisfy the
requirement that an individual is not
readily employable by reason of lacking
a sufficient number of skills. Further,
it is intended that the Internal Revenue
Service, when providing general guid-
ance regarding the various new criteria,
shall take into account the adminis-
trability of the program by the State
agencies.
B. Not regularly attending any secondary,
technical or post-secondary school
For purposes of § 51(d)(14)(B)(ii)(II),
the term “not regularly attending” means
that the individual states in writing that
during the six months preceding his or her
hiring date, he or she has not attended
a secondary, technical or post-secondary
school for more than an average of 10
hours per week, not counting periods dur-
ing which the school is closed for sched-
uled vacations.
For purposes of § 51(d)(14)(B)(ii), the
term “secondary school” means:
(1) A secondary school as defined in
20 U.S.C. § 7801(38); or
(2) a for-profit secondary school that
otherwise meets the definition in 20 U.S.C.
§ 7801(38).
A General Education Development
(GED) program is not a secondary school
for purposes of § 51(d)(14)(B)(ii).
For purposes of § 51(d)(14)(B)(ii) and
§ 51(d)(14)(B)(ii)(IV), the terms “techni-
cal school” and “post-secondary school”
mean institutions of higher education as
defined in 20 U.S.C. §§ 1001; 1002(a)(1),
(b) and (c); and 1059c(b)(3).
C. Not regularly employed
For purposes of § 51(d)(14)(B)(ii)(III),
an individual was not regularly employed
if, during each consecutive three-month
period within the six months preceding his
or her hiring date, the individual earned
less than an amount equal to the gross
amount he or she would have been paid at
the minimum wage if he or she worked 30
hours every week during the three-month
period.
For purposes of the preceding sentence,
“minimum wage” is the higher of (1) the
federal minimum wage (as defined in
29 U.S.C. § 206(a)(1)) or (2) the generally
applicable State minimum wage (if any).
D. Not readily employable by reason of
lacking a sufficient number of basic skills
For purposes of § 51(d)(14)(B)(ii)(IV),
an individual is not readily employable by
reason of lacking a sufficient number of
basic skills if the individual states in writ-
ing that he or she does not have a certifi-
cate of graduation from a secondary school
or a GED Certificate. For purposes of
§ 51(d)(14)(B)(ii)(IV), an individual also
is not readily employable by reason of
lacking a sufficient number of basic skills
if the individual states in writing that he or
she has a certificate of graduation from a
secondary school or a GED Certificate that
was awarded no less than six months pre-
ceding his or her hiring date and has not
held a job or been admitted to a technical
school or post-secondary school since re-
ceiving the certificate.
June 15, 200910822009–24 I.R.B.

EFFECTIVE DATE
New § 51(d)(14) is effective for indi-
viduals who begin work for the employer
after December 31, 2008, and before Jan-
uary 1, 2011.
TRANSITION RELIEF
Section 51(d)(13) provides that an in-
dividual shall not be treated as a member
of a targeted group unless the employer
obtains certification from a designated lo-
cal agency on or before the day the indi-
vidual begins work that the individual is a
member of a targeted group or completes
a pre-screening notice (IRS Form 8850)
on or before the day the individual is of-
fered employment and submits such notice
to the designated local agency to request
certification not later than 28 days after the
individual begins work. However, under
this notice, any employer who hires an un-
employed veteran or a disconnected youth
(as defined in § 51(d)(14)) after Decem-
ber 31, 2008, and before July 17, 2009,
will be considered to satisfy the deadline in
§ 51(d)(13)(A)(ii)(II) if the employer sub-
mits the pre-screening notice to the desig-
nated local agency to request certification
not later than August 17, 2009.
DRAFTING INFORMATION
The principal author of this notice is
Robin Ehrenberg of the Office of Division
Counsel/Associate Chief Counsel (Tax Ex-
empt and Government Entities). However,
other individuals participated in its devel-
opment. For further information regarding
this notice, contact Ms. Ehrenberg at (202)
622–6080 (not a toll-free call).
Application of Sections 7702
and7702AtoLifeInsurance
Contracts that Mature After
Age 100
Notice 2009–47
SECTION 1. PURPOSE
The purpose of this notice is to request
comments on a proposed safe harbor ad-
dressing the application of §§ 7702 and
7702A of the Internal Revenue Code to
life insurance contracts that mature after
the insured individual (“the insured”) at-
tains age 100. This notice also requests
comments on the treatment of amounts re-
ceived under a life insurance contract after
it has matured.
SECTION 2. BACKGROUND
.01 Section 7702 of the Code defines
the term “life insurance contract” for pur-
poses of the Code. Section 7702(a) pro-
vides that a “life insurance contract” is any
contract that is a life insurance contract un-
der the applicable law, but only if such con-
tract either (1) meets the cash value ac-
cumulation test of § 7702(b), or (2) both
meets the guideline premium requirements
of § 7702(c) and falls within the cash value
corridor of § 7702(d). Section 7702 was
added to the Code by the Deficit Reduc-
tion Act of 1984, P.L. 98–369.
.02 A contract meets the cash value ac-
cumulation test of § 7702(b) if, by the
terms of the contract, the cash surrender
value of the contract may not at any time
exceed the net single premium that would
have to be paid at that time to fund future
benefits under the contract.
.03 A contract meets the guideline pre-
mium requirements of § 7702(c) if the sum
of the premiums paid under the contract
does not at any time exceed the guideline
premium limitation as of that time. The
guideline premium limitation as of any
date is the greater of the guideline single
premium, or the sum of the guideline level
premiums to that date. The guideline sin-
gle premium is the premium that would be
required on the date the contract is issued
to fund the future benefits under the con-
tract.
.04 A contract falls within the cash
value corridor of § 7702(d) if the death
benefit under the contract at any time is
not less than the applicable percentage of
the cash surrender value, as determined
under the table set forth in § 7702(d)(2).
Under that table, the applicable percentage
for an insured with an attained age of 95
is 100 percent.
.05 Section 7702(e) provides compu-
tational rules that must be used for pur-
poses of § 7702, other than for purposes of
applying the cash value corridor. In par-
ticular, under § 7702(e)(1)(B) the matu-
rity date (including the date on which any
death benefit is payable) under a contract
is deemed to be no earlier than the day on
which the insured attains age 95, and no
laterthanthedayonwhichtheinsuredat-
tains age 100. Section 1.7702–2 of the In-
come Tax Regulations provides guidance
on determining the attained age of the in-
sured for this purpose.
.06 Section 7702A(a) provides that a
life insurance contract is a modified en-
dowment contract (MEC) if the contract
is entered into on or after June 21, 1988,
and fails to meet the 7-pay test, or is re-
ceived in exchange for a contract which
is a MEC. A contract fails to meet the
7-pay test if the accumulated amount paid
under the contract at any time during the
first 7 contract years exceeds the sum of
the net level premiums that would have
to be paid on or before such time if the
contract were to provide for paid-up future
benefits (including death benefits) after the
payment of 7 level annual premiums. Un-
der § 7702A(c)(1)(B), the determination of
the 7 level annual premiums generally is
made by applying the computational rules
of § 7702(e), including the rule requiring
a deemed maturity date no earlier than the
day on which the insured attains age 95 and
no later than the day on which the insured
attains age 100.
.07 The 2001 Commissioners’ Stan-
dard Ordinary mortality and morbidity
tables (2001 CSO tables) prescribed by the
NAIC became the prevailing commission-
ers’ standard tables within the meaning
of § 807(d)(5) during calendar year 2004,
and have been adopted by all 50 states.
For tax purposes, the 2001 CSO mortality
tables generally must be used for pur-
poses of applying the reasonable mortality
charge requirements of § 7702(c)(3)(B)(i)
with regard to contracts issued after De-
cember 31, 2008.SeeNotice 2006–95,
2006–2 C.B. 848,modifying and super-
sedingNotice 2004–61, 2004–2 C.B. 596,
supplementingNotice 88–128, 88–2 C.B.
540.
.08 Unlike the 1958 Commissioners
Standard Ordinary Mortality Tables (1958
CSO Tables) and the 1980 Commissioners
Standard Ordinary Mortality Tables (1980
CSO Tables), the 2001 CSO tables extend
to age 121. As a result, an increasing
number of issuers now develop contracts
with maturity dates beyond age 100, even
though the qualification of the contracts
as life insurance contracts (and as MECs)
is tested using computational rules that
deem the contracts to mature between the
2009–24 I.R.B.1083June 15, 2009

date the insured attains age 95 and the
date the insured attains age 100. The 2001
Maturity Age Task Force of the Taxation
Section of the Society of Actuaries has
proposed a series of recommendations to
comply with the requirements of §§ 7702
and 7702A in a manner that is actuarially
sound.See 2001 CSO Implementation
Under IRC Sections 7702 and 7702A,2
Taxing Times 23 (May 2006). The pro-
posed safe harbor in section 3 of this notice
is drawn from that proposal, with modifi-
cations. Section 4 of this notice requests
comments on the proposed safe harbor.
.09Inadditiontotheapplicationofthe
definitional rules of §§ 7702 and 7702A,
other issues arise with regard to contracts
that, by their terms, mature while the in-
sured is still alive. For example, a contract
that matures at age 100 may have a cash
value equal to the contract’s death bene-
fit. Pre–1984 federal tax case law, how-
ever, requires that a life insurance contract
involve “risk shifting” in order to qual-
ify as such for federal income tax pur-
poses.See, e.g.,Helvering v. Le Gierse,
312 U.S. 531 (1941) (even though a con-
tract is in the form of a life insurance con-
tract, it is not treated as such for federal
income tax purposes unless the require-
ments of risk shifting and risk distribu-
tion are met);Evans v. Commissioner,
56 T.C. 1142 (1971) (contracts that previ-
ously qualified as life insurance contracts
were not so treated where the cash surren-
der value of the contracts exceeded their
face amount). Moreover, even if such a
contract were to satisfy the definition of
a life insurance contract under the literal
terms of § 7702, the fact that the contract
has fully matured may affect the treatment
of the holder of the contract under the doc-
trine of constructive receipt, or may affect
the treatment of a beneficiary under the
contract if amounts are received not by rea-
son of the death of the insured, but by rea-
son of the insured’s attainment of age 100.
Section 4 requests comments on these is-
sues as well.
SECTION 3. PROPOSED SAFE
HARBOR
.01In general.Under the proposed safe
harbor, the Service would not challenge
the qualification of acontract as a life in-
surance contract under § 7702, or assert
that a contract is a MEC under § 7702A,
provided the contract satisfies the require-
ments of those provisions using all of the
Age 100 Testing Methodologies of section
3.02 of this notice.
.02Age 100 Testing Methodologies.
The Age 100 Testing Methodologies of
this section 3.02 are as follows:
(a) All determinations under §§ 7702
and 7702A (other than the cash value cor-
ridor) would assume that the contract will
mature by the date the insured attains age
100, notwithstanding a later contractual
maturity date (such as by reason of using
the 2001 CSO mortality tables).
(b) The net single premium determined
for purposes of the cash value accumula-
tion test under § 7702(b), and the neces-
sary premiums determined for purposes of
§ 7702A(c)(3)(B)(i), would assume an en-
dowment on the date the insured attains
age 100.
(c) The guideline level premium deter-
mined under § 7702(c)(4) would assume
premium payments through the date the in-
sured attains age 99.
(d) Under § 7702(c)(2)(B), the sum of
the guideline level premiums would in-
crease through a date no earlier than the
date the insured attains age 95 and no later
than the date the insured attains age 99.
Thereafter, premium payments would be
allowed and would be tested against this
limit, but the sum of the guideline level
premiums would not change.
(e) In the case of a contract issued or
materially changed within fewer than 7
years of the insured’s attaining age 100,
the net level premium under § 7702A(b)
would be computed assuming level an-
nual premium payments over the number
of years between the date the contract is
issued or materially changed and the date
the insured attains age 100.
(f) If the net level premium under
§ 7702A(b) is computed over a period
of less than 7 years by reason of an is-
suance or material change within fewer
than 7 years of the insured’s attaining age
100, the sum of the net level premiums
would increase through attained age 100.
Thereafter, the sum of the net level pre-
miums would not increase, but premium
payments would be allowed and would be
tested against this limit for the remainder
of the 7-year period.
(g) The rules of § 7702A(c)(2) and (6)
concerning reductions in benefits within
the first 7 contract years would apply
whether or not a contract is issued or ma-
terially changed fewer than 7 years before
the date the insured attains age 100.
(h) A change in benefits under (or in
other terms of) a life insurance contract
that occurs on or after the date the in-
sured attains age 100would not be treated
as a material change for purposes of
§ 7702A(c)(3) or as an adjustment event
for purposes of § 7702(f)(7).
(i) Notwithstanding the methodologies
of this section 3.02(a)-(h), a contract that
remains in force would additionally be re-
quired to provide at all times a death ben-
efit equal to or greater than 105 percent of
the cash value.
.03Effective date. The proposed safe
harbor would be effective as of the date
of publication in the Internal Revenue Bul-
letin.
.04Status as administrative guid-
ance. Until the proposed safe harbor is
formally adopted by the Service, the pro-
posed safe harbor is not an “administrative
pronouncement” as that term is used in
§ 1.6662–4(d)(3)(iii) of the regulations;
it may not be relied upon as an official
interpretation of §§ 7702 or 7702A.
SECTION 4. REQUEST FOR
COMMENTS
.01In general. The Service requests
comments on the proposed safe harbor de-
scribedinSection3ofthisnotice.
.02Other matters.Commentsarere-
quested concerning additional issues that
may arise in situations where a life insur-
ance contract matures after the insured has
attained age 100. For example—
(a) If an individual who already has at-
tained age 100 purchases a contract that
is a life insurance contract under the ap-
plicable state or foreign law, do the com-
putational rules of § 7702(e) prevent the
contract from qualifying as a life insurance
contract for federal income tax purposes?
(b) If a preexisting contract actually ma-
tures at age 100, such that the cash surren-
der value and death benefit under the con-
tract are the same, is the insured taxed at
that time on the maturity value of the con-
tract under the doctrine of constructive re-
ceipt?
(c) If a preexisting contract actually ma-
tures at age 100, such that the cash sur-
render value and the death benefit are the
same, is an amount later received under the
June 15, 200910842009–24 I.R.B.

contract by a beneficiary upon the death
of the insured ineligible for exclusion un-
der § 101 because, in the absence of any
amount at risk, the payment is not received
“by reason of” the insured’s death?
(d) In addition to the maturity age issues
discussed in this notice, do other issues
arise as a result of implementation of the
2001 CSO tables that would appropriately
be addressed by published guidance?
.03 Comments should be submitted in
writing on or before October 13, 2009 and
should contain a reference to this Notice
2009–47. Comments may be submitted to
CC:PA:LPD:PR (Notice 2009–47), Room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washing-
ton, DC 20044. Alternatively, taxpayers
may submit comments electronically to
Notice.Comments@irscounsel.treas.gov.
Please include “Notice 2009–47” in the
subject line of any electronic communica-
tions.
.04 Submissions may be hand-delivered
Monday through Friday between the hours
of8a.m. and4p.m. toCC:PA:LPD:PR
(Notice 2009–47), Courier’s Desk, Inter-
nal Revenue Service, 1111 Constitution
Ave., NW, Washington, DC 20224. All
comments will be available for public in-
spection and copying.
DRAFTING INFORMATION
The principal author of this notice is
Donald J. Drees of the Office of Asso-
ciate Chief Counsel (Financial Institutions
& Products). For further information re-
garding this notice, contact Mr. Drees at
(202) 622–3970 (not a toll-free call).
Treatment of Certain
Employer-Owned Life
Insurance Contracts
Notice 2009–48
PURPOSE
This notice providesguidance concern-
ing the treatment of employer-owned life
insurance contracts under §§ 101(j) and
6039I of the Code in a question and answer
format. Sections 101(j) and 6039I were
added to the Code by § 863 of the Pension
Protection Act of 2006 (“PPA”), Pub. L.
No. 109–280, 120 Stat. 780.
BACKGROUND
Section 101(j)(1) provides that, in the
case of an employer-owned life insurance
contract, the amount excluded from gross
income of an applicable policyholder un-
der § 101(a)(1) shall not exceed an amount
equal to the sum of the premiums and other
amounts paid by the policyholder for the
contract. In general, an employer-owned
life insurance contract is a life insurance
contract that is owned by a person engaged
in a trade or business and under which that
person is a beneficiary under the contract,
and that covers the life of an insured who is
an employee on the date the contract is is-
sued. An applicable policyholder is a per-
son who owns an employer-owned life in-
surance contract, or a related person as de-
scribed in § 101(j)(3).
Section 101(j)(2) provides exceptions
to the general rule of § 101(j)(1) in the
case of certain employer-owned life insur-
ance contracts with respect to which cer-
tain notice and consent requirements are
met. Those exceptions are based either
on (i) the insured’s status as an employee
at any time during the 12-month period
before the insured’s death or as a direc-
tor, a highly compensated employee or
highly compensated individual at the time
the contract is issued, or (ii) the extent to
which death benefits are paid to (or used
to purchase an equity interest in the appli-
cable policyholder from) a family member,
trust, or estate of the insured employee.
Section 6039I provides that every appli-
cable policyholder that owns one or more
employer-owned life insurance contracts
issued after August 17, 2006, must file a
return, at such time and in such manner
as the Secretary prescribes, setting forth
specific information for each year the con-
tracts are owned. In order to satisfy this
requirement, a taxpayer must file Form
8925.See§ 1.6039I–1 of the regulations.
QUESTIONS AND ANSWERS
Definition of Employer-Owned Life
Insurance Contract
Section 101(j)(3) provides that the term
“employer-owned life insurance contract”
means a life insurance contract that (1)
is owned by a person engaged in a trade
or business, and under which such per-
son (or a related person) is directly or in-
directly a beneficiary under the contract,
and (2) covers the life of an insured who
is an employee of the applicable policy-
holder on the date thecontract is issued.
The term “applicablepolicyholder” with
respect to an employer-owned life insur-
ance contract generally means the person
who owns the contract. The term “appli-
cable policyholder” also includes any per-
son who bears a relationship specified in
§ 267(b) or § 707(b)(1) to the owner of the
contract, or who is engaged in trades or
businesses with the owner of the contract
which are under common control within
the meaning of § 52(a) or (b).
Q–1. Can a contract be an employer-
owned life insurance contract if it is owned
not by a person engaged in a trade or busi-
ness, but by a related person who is not en-
gaged in a trade or business?
A–1. No. A contract is an employer-
owned life insurance contract only if it
is owned by a person engaged in a trade
or business and is otherwise described in
§ 101(j)(3). Thus, a contract that is owned
by the owner of an entity engaged in a
trade or business (such as for purposes of
financing the purchase of an equity interest
of another owner), or by a qualified plan
or VEBA that is sponsored by an entity
engaged in a trade or business, is not an
employer-owned life insurance contract.
A contract, however, that is owned by a
grantor trust (such as a rabbi trust), assets
of which are treated as assets of a grantor
that is engaged in a trade or business, is
an employer-owned life insurance contract
if the contract is otherwise described in
§ 101(j)(3).
Q–2. Can a contract be an employer-
owned life insurance contract if it is sub-
ject to a split dollar arrangement?
A–2. Yes. A contract that is subject
to a split dollar arrangement is an em-
ployer-owned life insurance contract if the
contract is owned by a person engaged in
a trade or business and is otherwise de-
scribed in § 101(j)(3).See§ 1.61–22(c)(1)
(defining the owner of a contract subject
to a split dollar arrangement to be the per-
son named as the policy owner of the con-
tract). Under § 101(j)(2)(B), however, the
general rule of § 101(j)(1) does not apply
to the extent any amount received by rea-
son of the death of the insured is paid to
a family member of the insured, an indi-
vidual who is a designated beneficiary, a
trust established for the benefit of a family
member or designated beneficiary.
2009–24 I.R.B.1085June 15, 2009

Q–3. Is a contract an employer-owned
life insurance contract if it is owned by a
partnership or sole proprietorship that is
engaged in a trade or business; the part-
nership or sole proprietorship is directly or
indirectly a beneficiary under the contract;
and, the contract covers the life of an in-
sured who is an employee with respect to
the trade or business on the date the con-
tract is issued?
A–3. Yes. If a life insurance con-
tract is otherwise described in § 101(j)(3),
ownership of the contract by a partner-
ship or sole proprietorship does not pre-
vent the contract from being treated as an
employer-owned life insurance contract.
A life insurance contract that is owned by
a sole proprietor on his or her own life is
not, however, an employer-owned life in-
surance contract.
Exceptions to the Application of
§ 101(j)(1)
Section 101(j)(2) provides several ex-
ceptions to the application of § 101(j)(1),
provided the notice and consent require-
ments of § 101(j)(4) are met. Specifically,
under § 101(j)(2)(A), § 101(j)(1) does not
apply if the insured either was an employee
at any time during the 12-month period be-
fore death, or was a director, highly com-
pensated employee or highly compensated
individual, as defined, at the time the con-
tract was issued. Under § 101(j)(2)(B),
§ 101(j)(1) does not apply to any amount
received by reason of the death of an in-
sured to the extent the amount is paid to
or used to purchase an equity (or capital
or profits) interest from a family member
of the insured, an individual who is a des-
ignated beneficiary, atrust established for
the benefit of a family member or desig-
nated beneficiary, or the estate of the in-
sured.
Q–4. Under § 101(j)(2)(A) and (j)(4),
when is a contract treated as “issued” for
purposes of determining whether the no-
tice and consent are timely, or whether the
insured is a director, a highly compensated
employee, or a highly compensated indi-
vidual at the time the contract is issued?
A–4. Generally, the issue date of a con-
tract is the date on the policy assigned by
the insurance company, which is on or after
the date the application was signed. Solely
for purposes of § 101(j)(2)(A) and (j)(4),
an employer-owned life insurance contract
is treated as “issued” on the later of (1) the
date of application for coverage, (2) the ef-
fective date of coverage, or (3) the formal
issuance of the contract. Thus, if an em-
ployer-owned life insurance contract is ef-
fective for a limited period of time before
formal issuance of the contract (such as
to complete underwriting), the notice and
consent requirements may be satisfied dur-
ing the period between the effective date of
coverage and formal issuance of the con-
tract. In addition, an employer-owned life
insurance contract may be treated as a new
contract, and thus newly “issued,” by rea-
son of a material increase in death bene-
fit or other material change in the contract.
See A–14, this notice.
Q–5. For purposes of § 101(j), is the
term “employee” limited to common law
employees?
A–5. No. Section 101(j)(5)(A) pro-
vides that the term “employee” includes
an officer, director, and highly compen-
sated employee (within the meaning of
§ 414(q)). A director is an independent
contractor in his or her capacity as a direc-
tor.
Section 414(q) contains special rules
relating to certain former employees and
self-employed individuals. For example,
a former employee is treated as a highly
compensated employee (within the mean-
ing of § 414(q)) if the individual was a
highly compensated employee when he
separated from service, or was a highly
compensated employee at any time after
attaining age 55. In addition, the term
“employee” for purposes of § 414(q)
includes an individual who is a self-em-
ployed individual who is treated as an
employee pursuant to § 401(c)(1).
Q–6. How soon after the death of an
employee must an amount be used to pur-
chase an equity (or capital or profits) in-
terest in the applicable policyholder, in or-
der to qualify for the exception set forth in
§ 101(j)(2)(B)(ii)?
A–6. In order to know whether an
amount received as a death benefit under
an employer-owned life insurance contract
is eligible for exclusion from gross income
under § 101(a), or is ineligible for exclu-
sion under the general rule of § 101(j)(1),
it is necessary to determine the availability
of the exception for amounts used to pur-
chase an equity (or capital or profits) inter-
est in the applicable policyholder. Accord-
ingly, an amount must be so paid or used by
the due date, including extensions, of the
tax return for the taxable year of the appli-
cable policyholder in which the applicable
policyholder is treated as receiving a death
benefit under the contract.
Satisfaction of Notice and Consent
Requirement
Even if an exception described in
§ 101(j)(2)(A) or (B) is otherwise satis-
fied, § 101(j)(2) requires that the notice
and consent requirements of § 101(j)(4)
be met in order for the general rule of
§ 101(j)(1) not to apply. The notice and
consent requirements of § 101(j)(4) are
met if, before the issuance of the policy,
the employee (1) is notified in writing
that the applicable policyholder intends to
insure the employee’s life and of the maxi-
mum face amount for which the employee
could be insured at the time the contract
was issued; (2) provides written consent
to being insured under the contract and
that such coverage may continue after the
insured terminates employment; and (3)
is informed in writing that an applicable
policyholder will be a beneficiary of any
proceeds payable upon the death of the
employee.
Q–7. Is notice and consent required
of an owner-employee of a wholly-owned
corporation?
A–7. Yes. Section 101(j)(4) pro-
vides no exception that would excuse a
wholly-owned corporation and its em-
ployee-owner from the notice and consent
requirements that otherwise apply, nor
can actual knowledge alone substitute
for the statutory requirement that notice
and consent be “written.” Moreover, the
requirement that notice and consent be
written avoids factual controversies that
otherwise could result where, for example,
the sole owner of a corporation delegates
financial matters to an employee.
Q–8. Is notice and consent required
with regard to an existing life insurance
contract that an employee irrevocably
transfers to an employer?
A–8. No. The actual transfer of an
existing life insurance contract by an em-
ployee to an employer is sufficient to sat-
isfy the requirements that the employee be
notified in writing of the intention to in-
sure and the maximum face amount of in-
surance, that written consent be secured,
and that the employee be notified that the
June 15, 200910862009–24 I.R.B.

employer will be a beneficiary upon his or
her death. In the event the employer sub-
sequently increases the face amount of the
contract, however, written notice and con-
sent must be secured to establish the requi-
site notice to the employee and consent to
the new face amount.
Q–9. How soon after an employee pro-
vides written consent must a contract be is-
sued in order for the consent to be valid for
purposes of § 101(j)(4) with regard to the
contract?
A–9. In order for the employee’s
consent to satisfy the requirements of
§101(j)(4) with regard to a contract, the
contract must be issued before the earlier
of (1) the expiration of the one-year period
beginning on the date the consent was exe-
cuted, or (2) termination of the employee’s
employment with respect to the trade or
business of the applicable policyholder.
It is not necessary to provide further no-
tice or renew an employee’s consent with
regard to an existing contract unless, for
example, the total face amount of the
employer-owned life insurance contracts
with regard to the employee exceeds the
amount of which the employee was noti-
fied and to which the employee consented
as described in § 101(j)(4).
Q–10. May a single consent apply to
more than one employer-owned life insur-
ance contract?
A–10. Yes. As long as the notice and
consent requirements of § 101(j)(4) are
otherwise met, the fact that more than
one contract is acquired with regard to
an employee who executed a single con-
sent does not prevent an exception under
§ 101(j)(2) from applying. Thus, for ex-
ample, if an employee is appropriately
notified that an applicable policyholder
intends to insure the employee’s life for
a maximum $1 million face amount and
the employee consents in writing, the ap-
plicable policyholder may purchase two
employer-owned life insurance contracts,
each with a face amount of $500,000, and
satisfy the requirements of § 101(j)(4).
Q–11. May the notice and consent re-
quirements of § 101(j)(4) be satisfied elec-
tronically?
A–11. Yes. Although § 101(j)(4)(A)
and (C) require that notification be “in
writing,” and § 101(j)(4)(B) requires that
consent be “written,” this requirement
may be satisfied electronically so long as
the system for electronic notification and
consent includes the elements set forth in
§ 101(j)(4) (notification of intention to in-
sure and maximum face amount, consent
to insurance and continuation after termi-
nation of employment, and notification
that an applicable policyholder will be a
beneficiary of any proceeds payable upon
the employee’s death). In addition, the sys-
tem must (1) ensure that the information
received by the employee is the same as
the information sent by the employer; (2)
make it reasonably certain that the person
accessing the system is the employee for
whom notice and consent is required; (3)
include a process for electronic signature
or other means of formally recording the
employee’s consent to being insured; and
(4) permit the production of a hardcopy
of the electronic notice and consent upon
request by the Internal Revenue Service
(Service) and a statement that, to the best
of the employer’s knowledge, the required
notice was provided to the employee and
the employee consented to being insured.
Compare§ 31.3402(f)(5)–1(c)(2) (pro-
viding administrative requirements in the
case of electronically filed Forms W–4).
Q–12. Are the notice and consent re-
quirements of § 101(j)(4) met by advis-
ing an employee that the face amount of
life insurance may be “the maximum face
amount for which the employee could be
insured” at the time the contract is issued?
A–12. No. The requirement of
§ 101(j)(4)(A) that the employee be no-
tified in writing of the maximum face
amount of life insurance requires the dis-
closure of a face amount of life insurance,
either in dollars or as a multiple of salary,
that the applicable policyholder reason-
ably expects to purchase with regard to
the employee during the course of the
employee’s tenure. Additional notice and
consent are required if the aggregate face
amount of the employer-owned life insur-
ance contracts with regard to an employee
exceeds the amount of which the em-
ployee was given notice and to which the
employee consented.
Q–13. How can an inadvertent failure
to satisfy the notice and consent require-
ments of § 101(j)(4) be corrected?
A–13. Section 101(j) does not con-
tain a provision for correcting an inadver-
tent failure to satisfy the notice and con-
sent requirements of § 101(j)(4). The Ser-
vice will not, however, challenge the appli-
cability of an exceptionunder § 101(j)(2)
based on an inadvertent failure to satisfy
the notice and consent requirements if the
following conditions are met: (1) the ap-
plicable policyholder made a good faith ef-
fort to satisfy those requirements, such as
by maintaining a formal system for pro-
viding notice and securing consents from
new employees; (2) the failure to satisfy
the requirements wasinadvertent; and (3)
the failure to obtain the requisite notice and
consent was discovered and corrected no
later than the due date of the tax return for
the taxable year of the applicable policy-
holder in which the employer-owned life
insurance contract was issued. Because
§ 101(j)(4)(B) requires that the employee’s
consent be written, failure to obtain such
consent cannot be corrected after the in-
sured employee has died.
Transition Rule and Section 1035
Exchanges
Pursuant to § 863(d) of the PPA,
§ 101(j) applies to life insurance contracts
issued after August 17, 2006, except for
a contract issued after that date pursuant
to a § 1035 exchange for a contract issued
on or before that date. For this purpose,
any material increase in the death benefit
or other material change causes the con-
tract to be treated as a new contract and
thus subject to § 101(j). (In the case of
a master contract within the meaning of
§ 264(f)(4)(E), however, the addition of
covered lives is treated as a new contract
only with respect to the additional covered
lives.)
Q–14. If there is no actual exchange
of an existing employer-owned life in-
surance contract for a new contract, what
changes to the contract are nevertheless
sufficiently material to cause the contract
to be treated as a new contract and thus
subject to § 101(j)?
A–14. The following changes are not
treated as material changes for purposes of
determining whether an existing contract
is treated as a new contract for purposes of
§ 101(j): (1) increases in death benefit that
occur as a result of either the operation of
§ 7702 or the terms of the existing contract
(provided the insurer’s consent to the in-
crease is not required); (2) administrative
changes; (3) changes from general account
to separate account or from separate ac-
count to general account; or (4) changes as
a result of the exercise of an option or right
2009–24 I.R.B.1087June 15, 2009

granted under the contract as originally is-
sued. Thus, for example, a death benefit
increase does not cause a contract to be
treated as a new contract if the increase is
necessary to keep the contract in compli-
ance with § 7702, or if the increase results
from the application of policyholder divi-
dends to purchase paid-up additions, or if
the increase is the result of market perfor-
mance or contract design with regard to a
variable contract. Notice and consent are
required if a contract is treated as a new
contract by reason of a material increase in
death benefit or other material change, un-
less a valid consent remains in effect with
regard to the insured.
Q–15. Under what circumstances does
§ 101(j) apply to a contract that is received
after August 17, 2006, in an exchange for
an employer-owned life insurance contract
issued on or before that date?
A–15. Section 863(d) of the PPA pro-
vides that § 101(j) generally does not apply
to a contract issued after August 17, 2006
in an exchange described in § 1035 for a
contract issued on or before that date. Sec-
tion 863(d) also provides that, for purposes
of determining when a contract is issued,
a material increase in the death benefit or
other material change generally causes the
contract to be treated as a new contract. A
§ 1035 exchange that results in a material
increase in death benefit or other material
change (other than a change in issuer) is
treated as the issuance of a new contract
after August 17, 2006 for purposes of de-
termining whether § 101(j) applies to the
contract. See A–14, this Notice.
Q–16. Under what circumstances is no-
tice and consent required with regard to a
contract received in a § 1035 exchange for
an employer-owned life insurance contract
issued after August 17, 2006, for which the
notice and consent requirements were pre-
viously satisfied?
A–16. No further notice and consent
are required if either (1) the existing con-
sent remains valid (see A–9, this Notice),
or (2) the exchange does not result in a ma-
terial change in the death benefit or other
material change in the contract. The same
standards apply to determine whether a
change is “material” for this purpose as ap-
ply to determine whether an exchange re-
sults in a material increase in death ben-
efit or other material change under the
transition rule for purposes of determining
whether § 101(j) applies to a contract. See
A–14, this Notice.
Information Reporting under Section
6039I and Form 8925
Section 6039I and Form 8925 require
that every applicable policyholder owning
1 or more employer-owned life insurance
contracts issued after August 17, 2006,
provide the following information show-
ing for each year the contracts are owned:
(1) the number of employees of the appli-
cable policyholder at the end of the year;
(2) the number of such employees insured
under such contracts; (3) the total amount
of insurance in force at the end of the year
under such contracts; (4) the name, ad-
dress, and identifying number of the appli-
cable policyholder and the type of business
in which the policyholder is engaged; and
(5) that the applicable policyholder has a
valid consent for each insured employee
(or, if all such consents are not obtained,
the number of employees for whom such
consent was not obtained).
Q–17. Are there circumstances under
which more than one taxpayer may be re-
quired to file Form 8925 by reason of the
same employer-owned life insurance con-
tract?
A–17. Section 6039I requires that a re-
turn be filed by “every applicable policy-
holder owning 1 or more employer-owned
life insurance contracts issued after the
date of enactment.” Section 6039I(c) pro-
vides that any term used in § 6039I that is
also used in § 101(j) has the same mean-
ing given the term by § 101(j). Under
§ 101(j)(3)(B)(i), the term “applicable pol-
icyholder” is generally the owner of the
employer-owned life insurance contract.
Although § 101(j)(3)(B)(ii) also includes
certain related persons in the definition
of “applicable policyholder,” those related
persons are not the applicable policyhold-
ers who own the contracts. Only the ap-
plicable policyholder “owning 1 or more
employer-owned life insurance contracts”
is required to file Form 8925.
EFFECTIVE DATE
This Notice is effective June 15, 2009.
The Service will not challenge a taxpayer
who made a good faith effort to comply
with § 101(j) based on a reasonable inter-
pretation of that provision before that date.
DRAFTING INFORMATION
The principal author of this Notice is
Linda K. Boyd of the Office of Associate
Chief Counsel (Financial Institutions &
Products). For furtherinformation regard-
ing this Notice, contact Linda K. Boyd at
(202) 622–3970 (not a toll-free call).
26 CFR 601.201: Rulings and determination letters.
(Also: Part 1, § 355.)
Rev. Proc. 2009–25
SECTION 1. PURPOSE
This revenue procedure describes a new
pilot program for letter rulings for certain
transactions under the jurisdiction of the
Associate Chief Counsel (Corporate). The
new program does not diminish the avail-
ability of letter rulings under existing pro-
grams.
SECTION 2. CHANGES
This revenue procedure amplifies Rev.
Proc. 2009–1, 2009–1 I.R.B. 1, which ex-
plains how the Internal Revenue Service
(Service) provides advice to taxpayers on
issues under the jurisdiction of the Asso-
ciate Chief Counsel (Corporate). This rev-
enue procedure also amplifies Rev. Proc.
2009–3, 2009–1 I.R.B. 107, which sets
forth the areas of the Internal Revenue
Code (Code) under the jurisdiction of the
Associate Chief Counsel (Corporate) relat-
ing to issues on which the Service will not
issue letter rulings.
SECTION 3. BACKGROUND
.01 Current Procedures
Ordinarily, the Service will not issue a
letterrulingononlypartofanintegrated
transaction. Section 6.03 of Rev. Proc.
2009–1; Section 4.02(2) of Rev. Proc.
2009–3. If, however, a part of a transac-
tion falls under a no-rule area, a letter rul-
ing on other parts of the transaction may
be issued. Where it is impossible for the
Service to determine the tax consequences
of a larger transaction without knowing the
resolution of an issue on which the Ser-
vice will not issue rulings under Rev. Proc.
2009–3, and the Service nevertheless rules
on the larger transaction, then the taxpayer
June 15, 200910882009–24 I.R.B.

must state in the request to the best of the
taxpayer’s knowledge and belief the tax
consequences of the no-rule issue. Sec-
tion 2.03 of Rev. Proc. 2009–3. The Ser-
vice’s ruling letter will state that the Ser-
vice did not consider, and no opinion is ex-
pressed upon, the no-rule issue. In appro-
priate cases, the Service may decline to is-
sue rulings on such larger transactions due
to the relevance of the no-rule issue, de-
spite the taxpayer’s representation.
In addition, the Service generally does
not issue letter rulings with respect to an
issue that is clearly and adequately ad-
dressed by statute, regulations, decisions
of a court, or authorities published in the
Internal Revenue Bulletin. Section 6.11
of Rev. Proc. 2009–1 and section 4.02(9)
of Rev. Proc. 2009–3. Similarly, un-
less the Service determines that there is
a significant issue (as defined in section
3.01(38) of Rev. Proc. 2009–3), the Ser-
vice will not issue a ruling on whether a
transaction qualifies for nonrecognition
treatment under § 332, § 351 (except for
certain transfers undertaken before § 355
distributions) or § 1036. Likewise, ab-
sent a significant issue, the Service will
not issue a ruling as to whether a transac-
tion constitutes a corporate reorganization
within the meaning of § 368(a)(1)(A) (in-
cluding a transaction that qualifies under
§ 368(a)(1)(A) by reason of § 368(a)(2)(D)
or § 368(a)(2)(E)), § 368(a)(1)(B),
§ 368(a)(1)(C), § 368(a)(1)(E) or
§ 368(a)(1)(F), or as to the various con-
sequences (such as nonrecognition and
basis adjustments) that arise as a result
of a transaction constituting a corporate
reorganization. If the Service determines
that there is a significant issue, and to the
extent the transaction is not described in
another no-rule section, the Service will
rule on the entire transaction, and not just
the significant issue. Section 3.01(38) of
Rev. Proc. 2009–3.
.02 New Procedures
In order to use Service resources more
efficiently and to increase the availabil-
ity of private letter rulings, this revenue
procedure allows taxpayers to request rul-
ings on one or more issues that: (1) are
solely under the jurisdiction of the Asso-
ciate Chief Counsel (Corporate), (2) are
significant (as defined in section 3.01(38)
of Rev. Proc. 2009–3), and (3) involve the
tax consequences or characterization of a
transaction (or part of a transaction) that
occurs in the context of a § 355 distribu-
tion. Under this program, taxpayers may
request and the Service may issue a rul-
ing on part of a transaction rather than on
the larger transaction. In addition, taxpay-
ers may request and the Service may issue
a ruling on a particular legal issue under
a Code section or a section of the Income
Tax Regulations (Regulations) rather than
a ruling that addresses all aspects of that
Code or Regulations section (or any other
section). For example, the Service may
rule on whether the acquisition of the as-
sets of one corporation by another corpo-
ration meets the continuity of business en-
terprise requirement of § 1.368–1(d) or is
described in § 355(b)(2)(C) even though
the ruling does not address overall quali-
fication of the transaction under § 368 or
§ 355, respectively, aslong as the acquisi-
tion occurs in the context of a § 355 distri-
bution. Accordingly, section 6.03 of Rev.
Proc. 2009–1 and sections 3.01(38) and
4.02(2) of Rev. Proc. 2009–3 are ampli-
fied to provide that the Service will issue
letter rulings regarding such significant is-
sues under the conditions specified herein.
Ruling requests under this revenue pro-
cedure must comply with the relevant re-
quirements of any other applicable rev-
enue procedures.See, e.g., Appendix E
of Rev. Proc. 2009–1. For example, a
request for a § 351 ruling on a transac-
tion that occurs in the context of a § 355
distribution must provide all of the infor-
mation required by Rev. Proc. 83–59,
1983–2 C.B. 575. However, if the request
is solely for a ruling on a significant issue
under § 351, the request must provide the
information and representations required
by Rev. Proc. 83–59 that pertain only
to that significant issue. Further, where a
taxpayer is requesting a ruling regarding
a significant issue under a Code or Reg-
ulations section (e.g., § 368(a)(2)(C)), the
taxpayer must provide a representation re-
garding qualification or characterization of
the transaction under such Code or Regula-
tions section (e.g., § 368(a)(1)(A)) assum-
ing that the Service rules as requested. The
Service reserves the right to rule on any
other issue in, or part of, the transaction
(including ruling adversely) if the Service
believes it is in the best interests of tax ad-
ministration.Cf. section 2.01 of Rev. Proc
2009–3.
All pertinent no-rule policies governing
the Service’s ruling practice will govern
requests for rulings made pursuant to this
revenue procedure.See, for example, Rev.
Proc. 2003–48, 2003–2 C.B. 86 (no-rule
policy regarding business purpose and de-
vice issues under § 355, and § 355(e) plan
issues). In addition, the Service will not
grant a ruling on a significant non-plan is-
sue or issues under § 355(e) unless an ad-
verse ruling on such non-plan issue or is-
sues would result in there being a direct
or indirect acquisition by one or more per-
sons of stock representing a 50-percent or
greater interest in the distributing corpo-
ration or the controlled corporation that is
part of a plan under § 355(e). With respect
to ruling requests regarding the effect of a
redemption under section 355(e), the Ser-
vice will entertain such requests under the
conditions described in sections 5.09 and
5.10 of this revenue procedure. Rev. Proc.
2009–3 is amplified toreflect these poli-
cies.
The Service will, if requested, endeavor
to issue letter rulings requested pursuant to
this revenue procedure within ten weeks
from receipt of the request, provided that
the request meets therequirements of sec-
tions 7.02(4) and 8.05(1) of Rev. Proc.
2009–1 as amplified by this revenue pro-
cedure.
The ruling program under this revenue
procedure is a pilot program that applies
to ruling requests postmarked or, if not
mailed, received after May 4, 2009. This
pilot program will be evaluated by the Ser-
vice periodically.
SECTION 4. REQUEST FOR
COMMENTS
The Service requests comments regard-
ing the pilot program. Comments should
refer to Rev. Proc. 2009–25, and should
be submitted to:
Internal Revenue Service
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Attn: CC:PA:RU
Room 5226
or electronically via the Service internet
site at:
Notice.Comments@irscounsel.treas.gov
(the Service comments e-mail address).
All comments will be available for public
inspection and copying.
2009–24 I.R.B.1089June 15, 2009

SECTION 5. PROCEDURE
.01 Rev. Proc. 2009–1 is amplified by
adding the following paragraphs to section
6.03:
In addition, the Office of the Associate
Chief Counsel (Corporate) may issue a let-
ter ruling on part of an integrated transac-
tion without ruling on the larger transac-
tion if the requested ruling addresses one
or more issues that: (1) are under the ju-
risdiction of the Associate Chief Counsel
(Corporate), (2) are significant (as defined
in section 3.01(38) of Rev. Proc. 2009–3,
and (3) involve the tax consequences or
characterization of a transaction (or part
of a transaction) that occurs in the context
of a § 355 distribution. The Service may
also rule on a particular legal issue under a
Code or Regulations section without ruling
on all aspects of such Code or Regulations
section if the issue meets the three condi-
tions of the preceding sentence.
Before preparing the letter ruling re-
quest under this section 6.03, a taxpayer
should call the Office of the Associate
Chief Counsel (Corporate) at the telephone
number provided in section 10.07(1)(a) of
this revenue procedure for pre-submission
conferences to discuss with one of the
branches whether the Office of the Asso-
ciate Chief Counsel (Corporate) will issue
a letter ruling under this section 6.03. The
Service reserves the right to rule on any
other aspect of the transaction (including
ruling adversely) if the Service believes
it is in the best interests of tax adminis-
tration.Cf. section 2.01 of Rev. Proc.
2009–3.
All requests for a ruling under this sec-
tion 6.03 must contain the following:
(1) A narrative description of the trans-
action that puts the issue in context;
(2) An explanation concerning why the
issue is significant within the meaning of
section 3.01(38) of Rev. Proc. 2009–3;
(3) Applicable information from rele-
vant revenue procedures with respect to
the significant issue.SeeAppendix E of
this revenue procedure (referring to,inter
alia, Rev. Proc. 96–30, 1996–1 C.B. 696,
as modified and amplified by Rev. Proc.
2003–48, 2003–2 C.B. 86);
(4) The precise ruling being requested;
(5) Where the taxpayer is requesting a
ruling on the tax treatment of part of an
integrated transaction, a representation re-
garding the relevant tax consequences of
the larger transaction (to the best knowl-
edge and belief of the taxpayer), assuming
that the Service issues the requested rul-
ing; additionally, where the taxpayer is re-
questing a ruling on a particular legal is-
sue under a Code section or section of the
Regulations (e.g., § 1.368–2(k)), a repre-
sentation (to the best knowledge and be-
lief of the taxpayer) regarding qualifica-
tion or characterization of the transaction
under such Code or Regulations section
(e.g., § 368(a)(1)(A)), assuming that the
Service issues the requested ruling; and
(6) A statement that no rulings outside
the jurisdiction of the Associate Chief
Counsel (Corporate) are requested.
If the Service issuesarulingonasig-
nificant issue under this procedure, then
the letter ruling will state that no opinion
is expressed as to the overall tax conse-
quences of the transactions described in
theletterrulingorastoanyissueorstep
not specifically addressed by the letter. In
addition, letter rulings under this proce-
dure will contain the following (or similar)
language at the beginning of the letter:
This Office expresses no opinion as
to the overall tax consequences of the
transaction(s) described in this letter.
Rather, the ruling(s) contained in this
letter only address one or more discrete
legal issues involved in the transaction.
.02 Rev. Proc. 2009–1 is amplified by
replacing the last sentence of the first para-
graph of section 7.02(4) with the follow-
ing:
Notwithstanding the previous sentence,
expedited handling may be available for
certain issues under the jurisdiction of the
Associate Chief Counsel (Corporate), as
provided below.
.03 Rev. Proc. 2009–1 is amplified by
replacing the heading and the first sentence
of the seventh paragraph of section 7.02(4)
with the following:
EXPEDITED LETTER RULING
PROCESS FOR CERTAIN REQUESTS
UNDER THE JURISDICTION OF THE
ASSOCIATE CHIEF COUNSEL (COR-
PORATE): If a taxpayer requests a letter
ruling on whether a transaction consti-
tutes a reorganization under § 368 or a
distribution under § 355, or a letter ruling
involving certain significant issues under
the jurisdiction of the Associate Chief
Counsel (Corporate) as described in sec-
tion 6.03 of this revenue procedure, and
the taxpayer asks for expedited handling
pursuant to this provision, the Service will
grant expedited handling.
.04 Rev. Proc. 2009–1 is amplified
by replacing the last sentence of section
7.02(4) with the following:
For further information regarding
this EXPEDITED LETTER RUL-
ING PROCESS FOR CERTAIN RE-
QUESTS UNDER THE JURISDIC-
TION OF THE ASSOCIATE CHIEF
COUNSEL (CORPORATE), call the
telephone number provided in section
10.07(1)(a) of this revenue procedure
for pre-submission conferences with the
Office of Associate Chief Counsel (Cor-
porate).
.05 Rev. Proc. 2009–1 is amplified by
replacing the first sentence of the last para-
graph of section 8.05(1) with the follow-
ing:
The Service will not endeavor to
process on an expedited basis a ruling
request regarding reorganizations under
§ 368, distributions under § 355, or certain
significant issues under the jurisdiction of
the Associate Chief Counsel (Corporate)
as described in section 6.03 of this revenue
procedure unless the branch representative
in the Office of Associate Chief Counsel
(Corporate) receives all requested addi-
tional information within 10 calendar days
from the date of the request for such addi-
tional information, unless an extension of
time is granted.
.06 Rev. Proc. 2009–1 is amplified
by replacing the first sentence of the third
paragraph of section 19 with the following:
The collections of information in this
revenue procedure are in sections 5.06,
6.03, 7.01, 7.02, 7.03, 7.04, 7.05, 7.07,
8.02, 8.05, 10.01, 10.06, 10.07, 11.11,
13.02, 15.02, 15.07, 15.08, 15.09, 15.11,
paragraph (B)(1) of Appendix A, Appen-
dix C, and Appendix E (subject matter-rate
orders; regulatory agency; normalization).
.07 Rev. Proc. 2009–1 is amplified by
replacing the second sentence of Appendix
C, Item 35 with the following sentence:
Note that certain requests under the ju-
risdiction of the Associate Chief Counsel
(Corporate) may receive expedited treat-
ment without stating a compelling need.
.08 Rev. Proc. 2009–3 is amplified by
starting a new paragraph immediately be-
fore the last sentence of the first paragraph
of section 3.01(38) and by adding the fol-
lowing sentences at the end of the revised
first paragraph in section 3.01(38):
June 15, 200910902009–24 I.R.B.

However, the Service may rule on a
significant issue in a transaction that oc-
curs in the context of a § 355 distribution
without ruling on the entire transaction.
Seesection 6.03 of Rev. Proc. 2009–1.
Before preparing the letter ruling request,
a taxpayer should call the Office of the
Associate Chief Counsel (Corporate) at
(202) 622–7700 to discuss with one of the
branches whether the Office of the Asso-
ciate Chief Counsel (Corporate) will issue
a letter ruling only involving that signifi-
cant issue. The Service reserves the right
to rule on any other issue in the transaction
(including ruling adversely) if the Service
believes it is in the best interests of tax
administration.Cf. section 2.01 of this
revenue procedure.
.09 Rev. Proc. 2009–3 is amplified by
adding the following paragraph to section
3.01:
Section 355.—Distribution of Stock
and Securities of a Controlled Corpora-
tion.—Whether the distribution of the
stock of a controlled corporation is being
carried out for one or more corporate busi-
ness purposes, whether the transaction is
used principally as a device, and whether
the distribution and an acquisition are part
of a plan under § 355(e).SeeRev. Proc.
2003–48, 2003–2 C.B. 86. Notwithstand-
ing the preceding sentence, the Service
may issue a ruling regarding the effect of
redemptions under § 355(e) pending the
issuance of temporary or final regulations
regarding redemptions under § 355(e) if
an adverse ruling on such question would
result in there being a direct or indirect
acquisition by one or more persons of
stock representing a 50-percent or greater
interest in the distributing corporation or
the controlled corporation that is part of a
plan under § 355(e).
.10 Rev. Proc. 2009–3 is amplified by
adding the following paragraph to section
4.01:
Section 355.—Distribution of Stock
and Securities of a Controlled Corpora-
tion.—Any issue under § 355(e) other
than whether a distribution and an acqui-
sition are part of a plan (i.e., any non-plan
issue). Notwithstanding the preceding
sentence, the Service generally will rule
on a non-plan issue or issues (e.g.,whether
a corporation constitutes a predecessor of
distributing) if an adverse ruling on such
non-plan issue or issues would result in
there being a direct or indirect acquisition
by one or more persons of stock represent-
ing a 50-percent or greater interest in the
distributing corporation or the controlled
corporation that is part of a plan under
§ 355(e).
.11 Rev. Proc. 2009–3 is amplified by
adding the following paragraph to section
4.02(2):
Notwithstanding the previous para-
graph, the Office of the Associate Chief
Counsel (Corporate) may issue a letter
ruling on part of an integrated transaction
without ruling on the larger transaction
if such transaction occurs in the context
of a § 355 distribution.Seesection 6.03
of Rev. Proc. 2009–1. Before preparing
the letter ruling request, a taxpayer should
call the Office of the Associate Chief
Counsel (Corporate) at (202) 622–7700 to
discuss with one of the branches whether
theOfficeoftheAssociateChiefCounsel
(Corporate) will issue a letter ruling only
involving part of the transaction. The Ser-
vice reserves the right to rule on any other
part of the transaction (including ruling
adversely) if the Service believes it is in
the best interests of tax administration.
Cf. section 2.01 of this revenue procedure.
SECTION 6. EFFECT ON OTHER
REVENUE PROCEDURES
Rev. Proc. 2009–1, 2009–1 I.R.B. 1,
and Rev. Proc. 2009–3, 2009–1 I.R.B.
107, are amplified.
SECTION 7. EFFECTIVE DATE
This revenue procedure is effective
May 4, 2009.
SECTION 8. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have been
reviewed and approved by the Office of
Management and Budget (OMB) in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under control number
1545–1522.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
revenue procedure are in section 5. This
information is required and will be used to
determine whether a taxpayer would qual-
ifyforaletterrulingonpartofaninte-
grated transaction without the Service rul-
ing on the larger transaction. The collec-
tions of information are required to obtain
a benefit. The likely respondents are busi-
ness or other for-profit institutions.
The estimated total annual report-
ing burden under Rev. Proc. 2009–1 is
513,150 hours.
The estimated annual burden per re-
spondent varies from 1 hour to 200 hours,
depending on individual circumstances,
with an estimated average of 90.1054
hours. The estimated number of respon-
dents is 5,695.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collection
of information must be retained as long as
their contents may become material in the
administration of any internal revenue tax
law. Generally tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 9. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Russell P. Subin of the Office
of Associate Chief Counsel (Corporate).
For further information regarding this rev-
enue procedure, contact Russell P. Subin
at (202)–622–7790 (not a toll-free call).
2009–24 I.R.B.1091June 15, 2009

Part IV. Items o
fGeneralInterest
Tax Avoidance
Transactions;
Hearing Cance
llation
Announcement
2009–49
AGENCY: Inter
nal Revenue Service
(IRS), Treasu
ry.
ACTION: Canc
ellation of notice of public
hearingonpr
oposed rulemaking.
SUMMARY: Thi
s document cancels a
public heari
ng on proposed rulemaking
(REG–138326
–07, 2009–9 I.R.B. 638)
under secti
on 6231 of the Internal Rev-
enue Code th
at allow the IRS to convert
partnershi
p items to nonpartnership items
when the app
lication of the unified part-
nership aud
it and litigation procedures of
sections 6
221 through 6234 (TEFRA part-
nership pr
ocedures) with respect to certain
tax avoida
nce transactions interferes with
the effect
ive and efficient enforcement of
the intern
al revenue laws.
DATE: The publ
ic hearing, originally
scheduled for
June 4, 2009, at 10 a.m., is
cancelled.
FOR FURTHER IN
FORMATION
CONTACT: Rich
ard A. Hurst of the Pub-
lications an
d Regulations Branch, Legal
Processing D
ivision, Associate Chief
Counsel (Pro
cedure and Administration),
atRichard.A
.Hurst@irscounsel.treas.gov.
SUPPLEMENT
ARY INFORMATION:
Anoticeofp
ublic hearing that appeared
in theFeder
al Registeron Friday, Febru-
ary 13, 2009
(74 FR 7205), announced that
apubliche
aring was scheduled for June 4,
2009, at 10
a.m., in the auditorium, Inter-
nal Revenu
e Building, 1111 Constitution
Avenue, NW
, Washington, DC. The sub-
ject of th
e public hearing is under section
6231 of th
e Internal Revenue Code.
The publi
c comment period for these
regulati
ons expired on May 14, 2009. Out-
lines of topic
s to be discussed at the hear-
ing were due on
May 15, 2009. The no-
tice of propos
ed rulemaking and notice of
public hearin
g instructed those interested
in testifying
at the public hearing to submit
an outline of
the topics to be addressed. As
of Wednesday
, May 20, 2009, no one has
requested to
speak. Therefore, the public
hearing sche
duled for June 4, 2009, is can-
celled.
LaNita Van D
yke,
Chief, Publ
ications and
Regulation
s Branch,
Legal Proce
ssing Division,
Associate
Chief Counsel
(Procedur
e and Administration).
(Filed by the Office of the Federal Register on May 26, 2009,
8:45 a.m., and published in the issue of the Federal Register
for May 27,
2009, 74 F.R. 25177)
June 15, 200910922009–24 I.R.B.

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.
2009–24 I.R.B.iJune 15, 2009

Numerical Finding List
1
Bulletins 2009–1 through 2009–24
Announcements:
2009-1, 2009-1 I.R.B.242
2009-2, 2009-5 I.R.B.424
2009-3, 2009-6 I.R.B.459
2009-4, 2009-8 I.R.B.597
2009-5, 2009-8 I.R.B.569
2009-6, 2009-9 I.R.B.643
2009-7, 2009-10 I.R.B.663
2009-8, 2009-8 I.R.B.598
2009-9, 2009-9 I.R.B.643
2009-10, 2009-9 I.R.B.644
2009-11, 2009-10 I.R.B.663
2009-12, 2009-11 I.R.B.686
2009-13, 2009-11 I.R.B.686
2009-14, 2009-11 I.R.B.687
2009-15, 2009-11 I.R.B.687
2009-16, 2009-11 I.R.B.691
2009-17, 2009-12 I.R.B.714
2009-18, 2009-12 I.R.B.714
2009-19, 2009-12 I.R.B.715
2009-20, 2009-12 I.R.B.716
2009-21, 2009-13 I.R.B.730
2009-22, 2009-13 I.R.B.731
2009-23, 2009-13 I.R.B.731
2009-24, 2009-13 I.R.B.732
2009-25, 2009-14 I.R.B.755
2009-26, 2009-14 I.R.B.755
2009-27, 2009-14 I.R.B.756
2009-28, 2009-15 I.R.B.760
2009-29, 2009-14 I.R.B.757
2009-30, 2009-15 I.R.B.794
2009-31, 2009-15 I.R.B.798
2009-32, 2009-15 I.R.B.799
2009-33, 2009-15 I.R.B.799
2009-34, 2009-18 I.R.B.916
2009-35, 2009-17 I.R.B.892
2009-36, 2009-18 I.R.B.927
2009-37, 2009-19 I.R.B.940
2009-38, 2009-19 I.R.B.940
2009-39, 2009-20 I.R.B.1022
2009-40, 2009-20 I.R.B.1023
2009-41, 2009-20 I.R.B.1026
2009-42, 2009-20 I.R.B.1027
2009-43, 2009-24 I.R.B.1075
2009-44, 2009-24 I.R.B.1079
2009-45, 2009-21 I.R.B.1040
2009-46, 2009-21 I.R.B.1040
2009-47, 2009-23 I.R.B.1071
2009-48, 2009-23 I.R.B.1071
2009-49, 2009-24 I.R.B.1092
Notices:
2009-1, 2009-2 I.R.B.250
2009-2, 2009-4 I.R.B.344
2009-3, 2009-2 I.R.B.250
2009-4, 2009-2 I.R.B.251
2009-5, 2009-3 I.R.B.309
2009-6, 2009-3 I.R.B.311
2009-7, 2009-3 I.R.B.312
2009-8, 2009-4 I.R.B.347
2009-9, 2009-5 I.R.B.419
2009-10, 2009-5 I.R.B.419
2009-11, 2009-5 I.R.B.420
2009-12, 2009-6 I.R.B.446
2009-13, 2009-6 I.R.B.447
2009-14, 2009-7 I.R.B.516
2009-15, 2009-6 I.R.B.449
2009-16, 2009-8 I.R.B.572
2009-17, 2009-8 I.R.B.575
2009-18, 2009-10 I.R.B.648
2009-19, 2009-10 I.R.B.660
2009-20, 2009-12 I.R.B.711
2009-21, 2009-13 I.R.B.724
2009-22, 2009-14 I.R.B.741
2009-23, 2009-16 I.R.B.802
2009-24, 2009-16 I.R.B.817
2009-25, 2009-15 I.R.B.758
2009-26, 2009-16 I.R.B.833
2009-27, 2009-16 I.R.B.838
2009-28, 2009-24 I.R.B.1082
2009-29, 2009-16 I.R.B.849
2009-30, 2009-16 I.R.B.852
2009-31, 2009-16 I.R.B.856
2009-32, 2009-17 I.R.B.865
2009-33, 2009-17 I.R.B.865
2009-34, 2009-17 I.R.B.876
2009-35, 2009-17 I.R.B.876
2009-36, 2009-17 I.R.B.883
2009-37, 2009-18 I.R.B.898
2009-38, 2009-18 I.R.B.901
2009-39, 2009-18 I.R.B.902
2009-40, 2009-19 I.R.B.931
2009-41, 2009-19 I.R.B.933
2009-42, 2009-20 I.R.B.1011
2009-43, 2009-21 I.R.B.1037
2009-44, 2009-21 I.R.B.1037
2009-45, 2009-22 I.R.B.1047
2009-46, 2009-23 I.R.B.1068
2009-47, 2009-24 I.R.B.1083
2009-48, 2009-24 I.R.B.1085
Proposed Regulations:
REG-144615-02, 2009-7 I.R.B.561
REG-144689-04, 2009-18 I.R.B.906
REG-148568-04, 2009-5 I.R.B.421
REG-160872-04, 2009-4 I.R.B.358
Proposed Regulations— Continued:
REG-158747-06, 2009-4 I.R.B.362
REG-116699-07, 2009-13 I.R.B.727
REG-138326-07, 2009-9 I.R.B.638
REG-143686-07, 2009-8 I.R.B.579
REG-150670-07, 2009-4 I.R.B.378
REG-107271-08, 2009-22 I.R.B.1051
REG-107845-08, 2009-20 I.R.B.1014
REG-113462-08, 2009-4 I.R.B.379
REG-119532-08, 2009-20 I.R.B.1017
REG-147636-08, 2009-9 I.R.B.641
REG-150066-08, 2009-5 I.R.B.423
REG-115699-09, 2009-22 I.R.B.1052
Revenue Procedures:
2009-1, 2009-1 I.R.B.1
2009-2, 2009-1 I.R.B.87
2009-3, 2009-1 I.R.B.107
2009-4, 2009-1 I.R.B.118
2009-5, 2009-1 I.R.B.161
2009-6, 2009-1 I.R.B.189
2009-7, 2009-1 I.R.B.226
2009-8, 2009-1 I.R.B.229
2009-9, 2009-2 I.R.B.256
2009-10, 2009-2 I.R.B.267
2009-11, 2009-3 I.R.B.313
2009-12, 2009-3 I.R.B.321
2009-13, 2009-3 I.R.B.323
2009-14, 2009-3 I.R.B.324
2009-15, 2009-4 I.R.B.356
2009-16, 2009-6 I.R.B.449
2009-17, 2009-7 I.R.B.517
2009-18, 2009-11 I.R.B.670
2009-19, 2009-14 I.R.B.747
2009-20, 2009-14 I.R.B.749
2009-21, 2009-16 I.R.B.860
2009-22, 2009-16 I.R.B.862
2009-23, 2009-17 I.R.B.884
2009-24, 2009-17 I.R.B.885
2009-25, 2009-24 I.R.B.1088
2009-26, 2009-19 I.R.B.935
2009-27, 2009-19 I.R.B.938
2009-28, 2009-20 I.R.B.1011
2009-29, 2009-22 I.R.B.1050
Revenue Rulings:
2009-1, 2009-2 I.R.B.248
2009-2, 2009-2 I.R.B.245
2009-3, 2009-5 I.R.B.382
2009-4, 2009-5 I.R.B.408
2009-5, 2009-6 I.R.B.432
2009-6, 2009-12 I.R.B.694
2009-7, 2009-13 I.R.B.717
2009-8, 2009-10 I.R.B.645
2009-9, 2009-14 I.R.B.735
2009-10, 2009-14 I.R.B.738
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin
2008–52, dated December 29, 2008.
June 15, 2009ii2009–24 I.R.B.

Revenue Rulings— Continued:
2009-11, 2009-18 I.R.B.896
2009-12, 2009-19 I.R.B.928
2009-13, 2009-21 I.R.B.1029
2009-14, 2009-21 I.R.B.1031
2009-15, 2009-21 I.R.B.1035
2009-16, 2009-23 I.R.B.1058
Tax Conventions:
2009-5, 2009-8 I.R.B.569
2009-43, 2009-24 I.R.B.1075
2009-44, 2009-24 I.R.B.1079
Treasury Decisions:
9434, 2009-4 I.R.B.339
9435, 2009-4 I.R.B.333
9436, 2009-3 I.R.B.268
9437, 2009-4 I.R.B.341
9438, 2009-5 I.R.B.387
9439, 2009-5 I.R.B.416
9440, 2009-5 I.R.B.409
9441, 2009-7 I.R.B.460
9442, 2009-6 I.R.B.434
9443, 2009-8 I.R.B.564
9444, 2009-9 I.R.B.603
9445, 2009-9 I.R.B.635
9446, 2009-9 I.R.B.607
9447, 2009-12 I.R.B.694
9448, 2009-20 I.R.B.942
9449, 2009-22 I.R.B.1044
9450, 2009-24 I.R.B.1073
9451, 2009-23 I.R.B.1060
2009–24 I.R.B.iiiJune 15, 2009

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2009–1 through 2009–24
Notices:
99-35
Obsoleted by
Notice 2009-15, 2009-6 I.R.B.449
2001-55
Modified by
Notice 2009-1, 2009-2 I.R.B.250
2002-27
Modified by
Notice 2009-9, 2009-5 I.R.B.419
2005-74
Obsoleted by
T.D. 9446, 2009-9 I.R.B.607
2007-26
Modified by
Notice 2009-15, 2009-6 I.R.B.449
2007-52
Clarified, modified, and amplified by
Notice 2009-24, 2009-16 I.R.B.817
2007-53
Clarified, modified, and ampilfied by
Notice 2009-23, 2009-16 I.R.B.802
2007-54
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
2008-11
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
2008-12
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
Rev. Proc. 2009-11, 2009-3 I.R.B.313
2008-13
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
List of forms modified and superseded by
Rev. Proc. 2009-11, 2009-3 I.R.B.313
Modified and clarified by
Notice 2009-5, 2009-3 I.R.B.309
2008-46
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
Rev. Proc. 2009-11, 2009-3 I.R.B.313
2008-100
Amplified and superseded by
Notice 2009-14, 2009-7 I.R.B.516
Notices— Continued:
2008-110
Modified by
Notice 2009-34, 2009-17 I.R.B.876
2009-31
Modified by
Notice 2009-42, 2009-20 I.R.B.1011
Proposed Regulations:
REG-144615-02
Corrected by
Ann. 2009-19, 2009-12 I.R.B.715
REG-149519-03
Withdrawn by
Ann. 2009-4, 2009-8 I.R.B.597
REG-148326-05
Corrected by
Ann. 2009-14, 2009-11 I.R.B.687
REG-158747-06
Hearing scheduled by
Ann. 2009-29, 2009-14 I.R.B.757
REG-138326-07
Hearing cancelled by
Ann. 2009-49, 2009-24 I.R.B.1092
REG-143686-07
Corrected by
Ann. 2009-40, 2009-20 I.R.B.1023
REG-150066-08
Corrected by
Ann. 2009-31, 2009-15 I.R.B.798
Hearing cancelled by
Ann. 2009-36, 2009-18 I.R.B.927
Revenue Procedures:
2007-17
Superseded by
Rev. Proc. 2009-14, 2009-3 I.R.B.324
2007-66
Modified and superseded by
Rev. Proc. 2009-21, 2009-16 I.R.B.860
2007-68
Superseded by
Rev. Proc. 2009-17, 2009-7 I.R.B.517
2007-71
Modified by
Notice 2009-3, 2009-2 I.R.B.250
2008-1
Superseded by
Rev. Proc. 2009-1, 2009-1 I.R.B.1
2008-2
Superseded by
Rev. Proc. 2009-2, 2009-1 I.R.B.87
Revenue Procedures— Continued:
2008-3
Superseded by
Rev. Proc. 2009-3, 2009-1 I.R.B.107
2008-4
Superseded by
Rev. Proc. 2009-4, 2009-1 I.R.B.118
2008-5
Superseded by
Rev. Proc. 2009-5, 2009-1 I.R.B.161
2008-6
Superseded by
Rev. Proc. 2009-6, 2009-1 I.R.B.189
2008-7
Superseded by
Rev. Proc. 2009-7, 2009-1 I.R.B.226
2008-8
Superseded by
Rev. Proc. 2009-8, 2009-1 I.R.B.229
2008-9
Superseded by
Rev. Proc. 2009-9, 2009-2 I.R.B.256
2008-17
Obsoleted in part by
Rev. Proc. 2009-18, 2009-11 I.R.B.670
2008-19
Obsoleted in part by
Rev. Proc. 2009-27, 2009-19 I.R.B.938
2008-61
Superseded by
Rev. Proc. 2009-3, 2009-1 I.R.B.107
2008-65
Amplified and supplemented by
Rev. Proc. 2009-16, 2009-6 I.R.B.449
2008-66
Modified and superseded by
Rev. Proc. 2009-21, 2009-16 I.R.B.860
2008-68
Amplified and superseded by
Rev. Proc. 2009-15, 2009-4 I.R.B.356
2009-1
Amplified by
Rev. Proc. 2009-25, 2009-24 I.R.B.1088
2009-3
Amplified by
Rev. Proc. 2009-25, 2009-24 I.R.B.1088
2009-19
Modified and superseded by
Rev. Proc. 2009-26, 2009-19 I.R.B.935
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin 2008–52, dated December 29,
2008.
June 15, 2009iv2009–24 I.R.B.

Revenue Rulings:
65-286
Obsoleted by
T.D. 9435, 2009-4 I.R.B.333
71-381
Obsoleted in part by
Rev. Rul. 2009-9, 2009-14 I.R.B.735
76-54
Obsoleted by
T.D. 9435, 2009-4 I.R.B.333
92-19
Supplemented by
Rev. Rul. 2009-3, 2009-5 I.R.B.382
2008-19
Modified by
Rev. Rul. 2009-3, 2009-5 I.R.B.382
Treasury Decisions:
9394
Corrected by
Ann. 2009-42, 2009-20 I.R.B.1027
9436
Corrected by
Ann. 2009-15, 2009-11 I.R.B.687
9438
Corrected by
Ann. 2009-30, 2009-15 I.R.B.794
9439
Corrected by
Ann. 2009-12, 2009-11 I.R.B.686
9441
Corrected by
Ann. 2009-18, 2009-12 I.R.B.714
Ann. 2009-39, 2009-20 I.R.B.1022
9442
Corrected by
Ann. 2009-13, 2009-11 I.R.B.686
Ann. 2009-20, 2009-12 I.R.B.716
9446
Corrected by
Ann. 2009-23, 2009-13 I.R.B.731
Ann. 2009-45, 2009-21 I.R.B.1040
2009–24 I.R.B.vJune 15, 2009

June 15, 20092009–24 I.R.B.

2009–24 I.R.B.June 15, 2009

June 15, 20092009–24 I.R.B.

INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superin-
tendent of Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis andare notincluded as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly
Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
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ACCESS THE INTERNAL REVENUE BULLETIN ON THE INTERNET
You may view the Internal Revenue Bulletin on the Internet at www.irs.gov. Select Businesses. Under Businesses Topics, select
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INTERNAL REVENUE BULLETINS ON CD-ROM
Internal Revenue Bulletins are available annually as part ofPublication 1796 (Tax Products CD-ROM). The CD-ROM can be
purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders)
or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, P.O. Box 371954, Pittsburgh PA, 15250–7954. Please allow two to
six weeks, plus mailing time, for delivery.
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 IRS Bulletin Unit, SE:W:CAR:MP:T:T:SP, Washington, DC 20224.
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