us-irs-revenue-procedures-irb-2015-51-pdf•Internal Revenue Bulletin 2015-51 (PDF rendition): IRS Revenue Procedures
Internal Revenue Bulletin 2015-51 (PDF rendition): IRS Revenue Procedures
us-irs-revenue-procedures-irb-2015-51-pdfInternal Revenue Bulletin 2015-51 (PDF rendition): IRS Revenue ProceduresGuidance
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HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. INCOME TAX Announcement 2015–35, page 865. This document contains corrections to Revenue Procedure 2015–55, as published on Monday, December 7, 2015 (I.R.B. 2015– 49, 788). In particular, this announcement corrects certain administrative items. Rev. Proc. 2015–57, page 863. Rev. Proc. 2015–57 provides that the IRS will not assert that a taxpayer who took out Federal student loans to finance attendance at a school owned by Corinthian Colleges, Inc. that are discharged under the Department of Education’s (ED) De- fense to Repayment discharge process must recognize gross income as a result of this discharge process. This revenue procedure also identifies the statutory basis under which tax- payers whose Federal student loans are discharged under ED’s Closed School discharge process may exclude the discharged amount from gross income. In addition, this revenue procedure provides that the IRS will not assert that taxpayers within the scope of this revenue procedure must increase their taxes owed in the year of a discharge as a result of either discharge process if in a prior taxable year they received an education credit under section 25A or took a deduction under section 221 or 222. Notice 2015–83, page 861. This Notice modifies Notice 2012– 48, 2012–31 I.R.B. 102, regarding the process for allocation of the available amount of national volume cap for tax-exempt tribal economic develop- ment bonds under § 7871(f) of the Internal Revenue Code, provides special rules for bonds issued under a “draw-down” loan structure in which the lender advances funds for the loan on different dates (Draw-down Bonds), and allows additional time to use allocated volume cap for issuance of Draw-down Bonds if an issuer meets certain requirements. EXEMPT ORGANIZATIONS Announcement 2015–34, page 865. Serves notice to potential donors of organizations that have recently filed a timely declaratory judgment suit under section 7428 of the Code, challenging revocation of its status as an eligible donee under section 170(c)(2). ADMINISTRATIVE Announcement 2015–35, page 865. This document contains corrections to Revenue Procedure 2015–55, as published on Monday, December 7, 2015 (I.R.B. 2015– 49, 788). In particular, this announcement corrects certain administrative items. Finding Lists begin on page ii. Bulletin No. 2015–51 December 21, 2015 The IRS Mission Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and en- force the law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conven- tions, legislation, court decisions, and other items of general interest. It is published weekly. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- wise indicated. Procedures relating solely to matters of internal management are not published; however, statements of inter- nal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identify- ing details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legisla- tion and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rul- ings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Sec- retary (Enforcement). Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbar- ment and suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. December 21, 2015Bulletin No. 2015–51 Part III. Administrative, Procedural, and Miscellaneous Tribal Economic Development Bonds: Use of Volume Cap for Draw-down Loans Notice 2015–83 SECTION 1. PURPOSE This Notice modifies Notice 2012–48, 2012–31 I.R.B. 102, regarding the process for allocation of the available amount of national bond volume limitation authority (volume cap) for tax-exempt tribal eco- nomic development bonds under § 7871(f) of the Internal Revenue Code (Tribal Economic Development Bonds). This Notice provides special rules for bonds issued under a “draw-down” loan structure in which the lender advances funds for the loan on different dates (Draw-down Bonds). This Notice allows additional time to use allocated volume cap for issuance of Draw-down Bonds if an issuer meets certain requirements. SECTION 2. BACKGROUND Notice 2012–48 solicited applications for allocation of volume cap for Tribal Economic Development Bonds, and pro- vided guidance on the application require- ments, the application forms, the alloca- tion method, and the time period for issuance before forfeiture of allocated vol- ume cap. For previous guidance on this process, see Notice 2009–51, 2009–28 I.R.B. 128; Announcement 2010–88, 2010–47 I.R.B. 753; and Announcement 2011–71, 2011–46 I.R.B. 770. Generally, under section 4.g. of Notice 2012–48, an applicant seeking an alloca- tion of volume cap (Applicant) must dem- onstrate a readiness to issue the bonds. Once an Applicant is allocated volume cap, the Applicant has 180 days from the date of the allocation letter to issue the bonds (the 180-day period). Volume cap allocated for those bonds that are not is- sued within such 180-day period is for- feited and available for reallocation. Also, an Applicant is required to send the Inter- nal Revenue Service (IRS) notice of issu- ance of Tribal Economic Development Bonds not later than 15 days after issu- ance. Questions have arisen regarding when Tribal Economic Development Bonds are considered “issued” for purposes of the 180-day period for issuance pursuant to an allocation of volume cap. Under the stat- utory framework, the general rules for State and local bonds issued by States and political subdivisions under § 103 apply with modifications to Tribal Economic Development Bonds issued by Indian tribal governments under § 7871(f). In general, Notice 2010–81, 2010–50 I.R.B. 825, provides that a State or local bond is considered issued on the “issue date” of the “bond” under § 1.150–1(b) of the Treasury Regulations. Section 1.150–1(b) defines the “issue date” of a “bond” to mean the date on which the issuer receives the purchase price in exchange for that bond, provided that in no event is the issue date of a bond earlier than the first day on which interest begins to accrue on such bond for Federal income tax purposes. For bonds issued under a “draw-down” loan structure under § 1.150–1(c)(4)(i) in which draws of funds occur on different dates, while the “issue” has a single issue date, each draw or bond within the issue may have a separate issue date. Specifi- cally, when the issuer draws down under the loan, it receives the purchase price and interest begins to accrue on the draw, re- sulting in the date of the draw constituting the issue date of the bond associated with the draw. Therefore, under the general rules for State and local bonds in Notice 2010–81, for Draw-down Bonds, only amounts that are drawn (and for which interest begins to accrue for Federal in- come tax purposes) within the 180-day period meet the timing requirement for issuance under section 4.g. of Notice 2012–48. Applicants have informed the IRS that this general rule for issuance has created administrative difficulties which have precluded the use of Draw-down Bonds. In Notice 2011–63, 2011–34 I.R.B 172, the IRS provided certain special rules for determining issuance of State or local bonds in draw-down loan structures for purposes of allocation and administration of private activity bond volume cap under § 146. Similarly, this Notice provides spe- cial rules regarding the issuance of Tribal Economic Development Bonds for pur- poses of allocation and administration of bond volume cap under § 7871(f) in the context of Draw-down Bonds. SECTION 3. MODIFICATION TO NOTICE 2012–48 Notice 2012–48 is modified by adding section 10 to Notice 2012–48 to read as follows: SECTION 10. SPECIAL RULES FOR TRIBAL ECONOMIC DEVELOPMENT BONDS ISSUED AS DRAW-DOWN BONDS a.In general. In addition to the general provisions of this Notice and notwith- standing any provision of this Notice to the contrary, if an Applicant expects to use any part of its allocation of volume cap to issue Tribal Economic Develop- ment Bonds under a “draw-down” loan structure in which the lender advances funds for the loan on different dates ex- pected to occur both within 180 days from the date of the allocation letter (the 180- day period) and after the 180 day period (together, for purposes of this section, the Draw-down Bonds), the special rules of this section 10 shall apply. b.Plan of financing. For purposes of section 3.g. of this Notice, an Applicant that expects to use any part of its Tribal Economic Development Bond volume cap allocation to issue Draw-down Bonds af- ter the 180-day period will meet the re- quirement of item (3) of section 3.g. of this Notice (regarding documentation from an independent third party about the marketability of the bonds) if the Appli- cant submits a commitment letter from a financial institution stating that the insti- tution reasonably expects to advance the total principal amount of the Draw-down Bonds no later than three years after the date of the allocation letter. c.Expiration of allocation. For pur- poses of section 4.g. of this Notice (re- garding expiration of allocations), if the proposed bonds associated with the allo- cation are Draw-down Bonds and the Ap- plicant has submitted the commitment let- ter required by section 10.b. of this Bulletin No. 2015–51December 21, 2015 861 Notice, the rules in section 10.c.1 and 10.c.2 of this Notice, as applicable, apply for purposes of determining the time pe- riod for issuing the proposed bonds pur- suant to the volume cap allocation. A vol- ume cap allocation for Draw-down Bonds is forfeited to the extent of any Draw- down Bonds that are not issued within the allowable time period for issuance under the allocation. 1. Except as provided in section 10.c.2 of this Notice, if the Applicant issues Draw-down Bonds in an amount equal to at least 10 percent of its volume cap allo- cation within the 180-day period, the un- used portion of the allocation amount will remain valid for two years from the date of the allocation letter (the 2-year period) to issue Draw-down Bonds under that al- location. 2. If the Applicant meets the require- ments in section 10.c.1 of this Notice and also issues Draw-down Bonds in an amount equal in the aggregate to at least 50 percent of its volume cap allocation within the 2-year period, the unused por- tion of the allocation amount will remain valid for three years from the date of the allocation letter (the 3-year period) to is- sue the Draw-down Bonds under that al- location. d.Notice of issuance.1.In general. For purposes of section 7.a. of this Notice (regarding notice of issuance), if the pro- posed bonds are Draw-down Bonds, an Applicant must submit to the IRS one or more notices of issuance (Notice of Issu- ance) under the rules set forth in sections 10.d.2. and 10.d.3 of this Notice, as appli- cable, to the address set forth in section 3.d. of this Notice. All Notices of Issuance shall include the following information: (1) the Applicant’s name and taxpayer identification number; (2) the issue price of the bonds issued; (3) the issue date of the bonds; (4) a description of the project financed with the bonds; and (5) the amount of allocation that is being for- feited. Any Notice of Issuance that pro- vides for an amount of allocation that is being forfeited will serve as a notice of voluntary forfeiture under section 4.i. of this Notice with respect to that allocation amount. 2.Notice of final draw. The Applicant must submit a Notice of Issuance not later than 15 days after the final draw for the Draw-down Bonds (the Notice of Final Draw). 3.Additional notices of issuance. The Applicant must submit additional Notices of Issuance using the following rules, as applicable. A. Unless the Applicant has submitted the Notice of Final Draw as provided in section 10.d.2. of this Notice, the Appli- cant shall submit a Notice of Issuance within 15 days after the 180-day period. This Notice of Issuance shall state at the top that it is a “180-Day Draw-down No- tice” and include the percentage of the allocation used to issue Draw-down Bonds under that allocation within the 180-day period. B. Unless the Applicant has submitted a Notice of Final Draw as provided in section 10.d.2. of this Notice, for Draw- down Bonds issued after the 180-day pe- riod, Applicant shall submit a Notice of Issuance within 15 days after the end of the 2-year period following the date of the allocation letter. This Notice of Issuance shall state at the top that it is the “2-year Draw-down Notice” and include the total percentages of the allocation used to issue Draw-down Bonds under that allocation within both the 180-day period and the 2-year period. C. Unless the Applicant has submitted a Notice of Final Draw as provided in section 10.d.2. of this Notice, for Draw- down Bonds issued after the 2-year pe- riod, the Applicant shall submit a Notice of Issuance within 15 days after the end of the 3-year period. This Notice of Issuance shall state at the top that it is the “Final Draw-down Notice” and include the total percentages of the allocation used to issue Draw-down Bonds under that allocation within each of the following periods: the 180-day period, the 2-year period, and the 3-year period. SECTION 4. REQUEST FOR COMMENTS ON RULES ON ISSUING NEW CLEAN RENEWABLE ENERGY BONDS AS DRAW-DOWN BONDS The Department of the Treasury and the IRS seek comments regarding whether to consider providing special volume cap allocation rules for New Clean Renewable Energy Bonds issued as Draw-down Bonds similar to the rules in this Notice. Comments should be submitted in writing and can be e-mailed tonotice.comments@ irscounsel.treas.gov(include “Notice 2015– 83” in the subject line) or mailed to Office of Associate Chief Counsel (Financial In- stitutions and Products), Re: Notice 2015– 83, CC:FIP:Branch 5, Room 3547, 1111 Constitution Avenue, NW, Washington, DC 20224. Comments that are submitted will be made available to the public. SECTION 5. EFFECT ON OTHER DOCUMENTS Notice 2012–48 is modified. SECTION 6. EFFECTIVE/APPLICABILITY DATE This Notice is effective for an applica- tion for allocation of Tribal Economic Development Bond volume cap that is submitted on or after December 4, 2015. In addition, an Applicant that has re- ceived an allocation that has not expired before December 4, 2015, may rely on this Notice, provided that such Appli- cant meets the applicable requirements of Notice 2012–48, as modified by this Notice, on or before the expiration date of the allocation. SECTION 7. PAPERWORK REDUCTION ACT The information collection contained in Notice 2012–48 has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act (44 U.S.C. chapter 35) un- der control number 1545–2233. Under the Paperwork Reduction Act, an agency may not conduct or sponsor and a person is not required to respond to a collection of in- formation unless it displays a valid OMB control number. This Notice modifies Notice 2012–48. Certain modifications to Notice 2012–48 change the collection of information re- quirements contained in Notice 2012–48, as approved under control number 1545- 2233. The modified collection of informa- tion requirements are contained in section 3 of this Notice. The information is re- quired in order to inform the IRS of an Applicant’s readiness to receive an allo- cation of volume cap for Tribal Economic Development Bonds as Draw-down December 21, 2015Bulletin No. 2015–51 862 Bonds, the Applicant’s timely use of such allocation, and the amount of such volume cap that may be allocated to each Appli- cant. The collections of information are required for any Applicant that wishes to receive an allocation of volume cap for Tribal Economic Development Bonds as Draw-down Bonds. The likely respon- dents will be eligible issuers of Tribal Economic Development Bonds. We estimate the total number of re- spondents to be 143 and the total annual responses to be 143. We estimate it will take 8 hours to comply. Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time. Books or records relating to a collec- tion of information must be retained as long as their contents may become mate- rial in the administration of any internal revenue law. Generally, tax returns and return information are confidential, as re- quired by § 6103. SECTION 8. DRAFTING INFORMATION The principal authors of this Notice are Darrell Smelcer and Marie Sullivan of the IRS Office of Tax Exempt Bonds and Zoran Stojanovic of the Office of the As- sociate Chief Counsel (Financial Institu- tions and Products). For further informa- tion regarding this Notice, contact Ms. Sullivan at 225-923-4168 or Mr. Sto- janovic at 202-317-6980 (not toll-free numbers). Rev. Proc. 2015–57 SECTION 1. PURPOSE This revenue procedure provides that the Internal Revenue Service (IRS) will not assert that certain taxpayers, whose Federal student loans are discharged un- der the Department of Education’s “De- fense to Repayment” discharge process, must recognize gross income as a result of this discharge process. This revenue pro- cedure also identifies the statutory provi- sions under which taxpayers whose Fed- eral student loans are discharged under the Department of Education’s “Closed School” discharge process may exclude the discharged amount from gross income. In addition, this revenue procedure pro- vides that the IRS will not assert that these taxpayers must increase their taxes owed in the year of a discharge as a result of either discharge process if in a prior tax- able year they received an education credit under section 25A (Hope and Life- time Learning Credits) or took a deduc- tion under section 221 (interest on educa- tion loans) or section 222 (qualified tuition and related expenses) of the Inter- nal Revenue Code (Code). SECTION 2. BACKGROUND .01In general. The Treasury Department and the IRS are aware that the Department of Educa- tion (ED) has begun a process for settling and discharging Federal student loans taken out to finance attendance at schools owned by Corinthian Colleges, Inc. ED has estimated that over 50,000 Corinthian borrowers may be eligible for discharges under this program. The discharges con- templated by ED for these loans are to be made under one of the following process- es: (i) the Closed School discharge pro- cess, or (ii) the Defense to Repayment discharge process based on misrepresen- tations made by the colleges. For more information, seePress Release,Dep’t of Education, Fact Sheet: Protecting Stu- dents from Abusive Career Colleges(June 8, 2015), available athttp://www.ed.gov/ news/press-release. In general, under the Higher Education Act of 1965 (HEA), the Closed School dis- charge process allows ED to discharge a Federal student loan obtained by a student, or by a parent on behalf of a student, who was attending a school at the time it closed or who withdrew from the school within a certain period prior to the closing date.See generally20 U.S.C. § 1087(c) (Federal Family Education Loan (FFEL)); 20 U.S.C. § 1087dd(g) (Federal Perkins Loan); and 20 U.S.C. § 1087e(a)(1) (Federal Direct Loan). Under the HEA, theDefense to Repayment process requires ED to discharge a Fed- eral Direct Loan if a student loan bor- rower establishes, as a defense against repayment, that a school’s actions would give rise to a cause of action against the school under applicable state law.See generally20 U.S.C. § 1087e(h) and 34 C.F.R. § 685.206(c). FFEL loans may also be discharged under this process if certain additional requirements are met.See34 C.F.R. § 682.209(g). Section 61(a)(12) of the Code provides that gross income includes income from the discharge of indebtedness. There are, however, exceptions under which a tax- payer may not be required to include in- come from the discharge of indebtedness in gross income. The availability of these exceptions depends on a variety of factors, such as the circumstances of the loan’s origination and the borrower’s financial situation at the time of the loan’s dis- charge. In some cases, a discharge may result in an increase in gross income under the tax benefit rule, or an increase in tax liability due to a recapture of credits. .02Borrowers participating in Closed School discharge process. The HEA provides statutory exclusions from gross income for Federal student loans discharged under the Closed School discharge process.See generally20 U.S.C. § 1087ee(a)(5); 20 U.S.C. § 1087(c)(4) (FFEL); 20 U.S.C. § 1087dd(g)(4) (Federal Perkins Loan); and 20 U.S.C. § 1087e(a)(1) (Federal Direct Loan). Accordingly, a tax- payer whose Federal student loan is dis- charged under the Closed School discharge process will not recognize gross income as a result of the discharge, and the taxpayer should not report the amount of the dis- charged loan in gross income on his or her Federal income tax return. .03Borrowers participating in Defense to Repayment discharge process. The HEA does not provide a statutory exclusion from gross income for Federal student loans discharged under the De- fense to Repayment discharge process. However, a taxpayer may be able to ex- clude amounts discharged under this pro- cess from gross income under a provision of the Code or other tax law authorities. For example, a borrower that has a liability reduced because of a legal infir- mity that relates back to the original sale transaction (for example, fraud) may not have gross income to the extent of the debt reduction. This requires a case-by- case analysis of each transaction. In addition, section 108(a)(1)(B) of the Code provides that a taxpayer may ex- Bulletin No. 2015–51December 21, 2015 863 clude from gross income a discharge of indebtedness that occurs when the tax- payer is insolvent (the “insolvency exclu- sion”). A taxpayer is insolvent if all of the taxpayer’s liabilities exceed all of the tax- payer’s assets immediately before the dis- charge. Under the insolvency exclusion, a taxpayer is able to exclude the amount of discharged debt from gross income to the extent that the taxpayer’s liabilities ex- ceed the fair market value of his or her assets. The Treasury Department and the IRS believe that most borrowers whose Corin- thian student loans are discharged under the Defense to Repayment discharge pro- cess would be able to exclude from gross income all or substantially all of the dis- charged amounts based on fraudulent mis- representations made by the colleges to the students, the insolvency exclusion, or another tax law authority. However, de- termining whether one or more of these exceptions is available to each affected borrower would require a fact intensive analysis of the particular borrower’s situ- ation to determine the extent to which the discharged amount is eligible for exclu- sion under each of the potentially avail- able exceptions. The Treasury Department and the IRS are concerned that such an analysis would impose a compliance bur- den on taxpayers, as well as an adminis- trative burden on the IRS, that is excessive in relation to the amount of taxable in- come that would result. Accordingly, the IRS will not assert that a taxpayer within the scope of this revenue procedure rec- ognizes gross income as a result of the Defense to Repayment discharge process. SECTION 3. SCOPE The treatment provided in section 4 of this revenue procedure applies to any tax- payer who took out Federal student loans to finance attendance at a school owned by Corinthian Colleges, Inc. that are dis- charged under the Closed School dis- charge process or the Defense to Repay- ment discharge process. SECTION 4. APPLICATION .01Discharge of indebtedness income. The IRS will not assert that a taxpayer within the scope of this revenue procedure must recognize gross income as a result of the Defense to Repayment discharge pro- cess for discharged student loans that were taken out to finance attendance at a school owned by Corinthian Colleges, Inc. See section 2.02 of this revenue pro- cedure for a general discussion regarding the exclusion from gross income for bor- rowers participating in the Closed School discharge process. .02Recapture of tax credits and tax benefit rule. The IRS will not assert that a taxpayer within the scope of this revenue procedure must increase his or her taxes owed in the year of a discharge, or in a prior year, as a result of either discharge process if in a prior year he or she re- ceived an education credit under section 25A attributable to payments made with proceeds of the discharged loan. In addi- tion, the IRS also will not assert that a taxpayer within the scope of this revenue procedure must increase his or her income in the year of the discharge if he or she took a deduction under section 221 in a prior year attributable to interest paid on a discharged loan or a deduction under sec- tion 222 in a prior taxable year attribut- able to payments of qualified tuition and related expenses made with proceeds of the discharged loan. SECTION 5. EFFECTIVE DATE This revenue procedure is effective for taxable years beginning on or after Janu- ary 1, 2015, for Federal student loans dis- charged under ED’s Closed School and Defense to Repayment discharge pro- cesses. SECTION 6. DRAFTING INFORMATION The principal author of this revenue procedure is Craig Wojay of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information re- garding this revenue procedure, contact Mr. Wojay at (202) 317-4718 (not a toll- free number). December 21, 2015Bulletin No. 2015–51 864 Part IV. Items of General Interest Section 7428(c) Validation of Certain Contributions Made During Pendency of Declaratory Judgment Proceedings Announcement 2015–34 This announcement serves notice to potential donors that the organization listed below has recently filed a timely declaratory judgment suit under section 7428 of the Code, challenging revocation of its status as an eligible donee under section 170(c)(2). Protection under section 7428(c) of the Code begins on the date that the notice of revocation is published in the Internal Revenue Bulletin and ends on the date on which a court first determines that an or- ganization is not described in section 170(c)(2), as more particularly set forth in section 7428(c)(1). In the case of individual contributors, the maximum amount of contributions protected during this period is limited to $1,000.00, with a husband and wife being treated as one contributor. This protection is not extended to any individual who was responsible, in whole or in part, for the acts or omissions of the organization that were the basis for the revocation. This protection also applies (but without limi- tation as to amount) to organizations de- scribed in section 170(c)(2) which are ex- empt from tax under section 501(a). If the organization ultimately prevails in its de- claratory judgment suit, deductibility of contributions would be subject to the nor- mal limitations set forth under section 170. Name of OrganizationDate Suit FiledEffective Date of RevocationLocation Community Education Foundation1/15/20141/1/2008Baltimore, MD Corrections to Revenue Procedure 2015–55, as published on Monday, December 7, 2015 (I.R.B. 2015–49, 788). In particular, this announcement corrects certain administrative items. Announcement 2015–35 Correction 1: InSection 1.1.5 Forms Not Covered by This Revenue Procedure, under the 4 th bullet we deleted the reference to Form 8935, as the form is now obsolete. Correction 2: InSection 1.2.1 Where To Send Sub- stitute Forms,the 2 nd bullet incorrectly referred to form “S–3c”. The correct ref- erence is “W–3c.” Correction 3: InSection 1.2.1 Where To Send Sub- stitute Forms,the 4 th bullet incorrectly referred to form “3022”. The correct ref- erence is “3922.” Correction 4: InSection 4.1.1 General,the 2 nd bul - let has an incorrect title for Pub. 1179. The correct title for Pub. 1179 is “General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Cer- tain Other Information Returns.” Bulletin No. 2015–51December 21, 2015 865 Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect: Amplifieddescribes a situation where no change is being made in a prior pub- lished position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle ap- plied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below). Clarifiedis used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confu- sion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously pub- lished ruling and points out an essential difference between them. Modifiedis used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified andclarified, above). Obsoleteddescribes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rul- ings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revokeddescribes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling. Supersededdescribes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a pe- riod of time in separate rulings. If the new ruling does more than restate the sub- stance of a prior ruling, a combination of terms is used. For example, modified and supersededdescribes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded. Supplementedis used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rul- ings in the series. Suspendedis used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. Abbreviations The following abbreviations in current use and formerly used will appear in ma- terial published in the Bulletin. A—Individual. Acq.—Acquiescence. B—Individual. BE—Beneficiary. BK—Bank. B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cumulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Cooperative. Ct.D.—Court Decision. CY—County. D—Decedent. DC—Dummy Corporation. DE—Donee. Del. Order—Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Employer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduciary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Foreign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Federal Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grantee. GP—General Partner. GR—Grantor. IC—Insurance Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—Nonacquiescence. O—Organization. P—Parent Corporation. PHC—Personal Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Partnership. PTE —Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Real Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsidiary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Transferee. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpayer. TR—Trust. TT—Trustee. U.S.C.—United States Code. X—Corporation. Y—Corporation. Z—Corporation. Bulletin No. 2015–51December 21, 2015 i Numerical Finding List 1 Bulletins 2015–27 through 2015–51 Announcements: 2015-17, 2015-28 I.R.B.67 2015-18, 2015-33 I.R.B.198 2015-19, 2015-32 I.R.B.157 2015-20, 2015-38 I.R.B.355 2015-21, 2015-34 I.R.B.220 2015-22, 2015-35 I.R.B.288 2015-23, 2015-36 I.R.B.311 2015-24, 2015-36 I.R.B.313 2015-25, 2015-39 I.R.B.422 2015-26, 2015-47 I.R.B.677 2015-27, 2015-48 I.R.B.694 2015-28, 2015-46 I.R.B.673 2015-29, 2015-46 I.R.B.673 2015-30, 2015-46 I.R.B.673 2015-31, 2015-49 I.R.B.841 2015-32, 2015-49 I.R.B.841 2015-33, 2015-49 I.R.B.842 2015-34, 2015-51 I.R.B.865 2015-35, 2015-51 I.R.B.865 Notices: 2015-43, 2015-29 I.R.B.73 2015-46, 2015-28 I.R.B.64 2015-47, 2015-30 I.R.B.76 2015-48, 2015-30 I.R.B.77 2015-49, 2015-30 I.R.B.79 2015-50, 2015-30 I.R.B.81 2015-51, 2015-31 I.R.B.133 2015-52, 2015-35 I.R.B.227 2015-53, 2015-33 I.R.B.190 2015-54, 2015-34 I.R.B.210 2015-55, 2015-34 I.R.B.217 2015-56, 2015-35 I.R.B.235 2015-57, 2015-36 I.R.B.294 2015-58, 2015-37 I.R.B.322 2015-59, 2015-40 I.R.B.459 2015-60, 2015-43 I.R.B.604 2015-61, 2015-39 I.R.B.408 2015-62, 2015-39 I.R.B.411 2015-63, 2015-40 I.R.B.461 2015-64, 2015-40 I.R.B.464 2015-65, 2015-40 I.R.B.466 2015-66, 2015-41 I.R.B.541 2015-67, 2015-41 I.R.B.546 2015-68, 2015-41 I.R.B.547 2015-69, 2015-41 I.R.B.550 2015-70, 2015-43 I.R.B.604 2015-71, 2015-43 I.R.B.606 2015-72, 2015-44 I.R.B.613 2015-73, 2015-46 I.R.B.660 2015-74, 2015-46 I.R.B.663 2015-75, 2015-46 I.R.B.668 2015-76, 2015-46 I.R.B.669 Notices:—Continued 2015-77, 2015-47 I.R.B.676 2015-78, 2015-48 I.R.B.690 2015-79, 2015-49 I.R.B.775 2015-80, 2015-48 I.R.B.691 2015-81, 2015-49 I.R.B.784 2015-82, 2015-50 I.R.B.859 2015-83, 2015-51 I.R.B.861 Proposed Regulations: REG-140379-02, 2015-45 I.R.B.653 REG-134219-08, 2015-49 I.R.B.842 REG-136459-09, 2015-37 I.R.B.332 REG-155164-09, 2015-41 I.R.B.560 REG-109370-10, 2015-33 I.R.B.198 REG-112997-10, 2015-39 I.R.B.422 REG-103033-11, 2015-37 I.R.B.325 REG-109813-11, 2015-37 I.R.B.330 REG-138344-13, 2015-41 I.R.B.557 REG-139483-13, 2015-40 I.R.B.475 REG-148998-13, 2015-45 I.R.B.653 REG-115452-14, 2015-32 I.R.B.158 REG-127895-14, 2015-41 I.R.B.556 REG-132075-14, 2015-35 I.R.B.288 REG-138526-14, 2015-28 I.R.B.67 REG-143800-14, 2015-37 I.R.B.347 REG-102648-15, 2015-31 I.R.B.134 REG-102837-15, 2015-27 I.R.B.43 REG-121496-15, 2015-46 I.R.B.674 REG-123640-15, 2015-37 I.R.B.350 Revenue Procedures: 2015-34, 2015-27 I.R.B.4 2015-36, 2015-27 I.R.B.20 2015-38, 2015-36 I.R.B.295 2015-39, 2015-33 I.R.B.195 2015-40, 2015-35 I.R.B.236 2015-41, 2015-35 I.R.B.263 2015-42, 2015-36 I.R.B.310 2015-43, 2015-40 I.R.B.467 2015-44, 2015-38 I.R.B.354 2015-45, 2015-39 I.R.B.412 2015-46, 2015-39 I.R.B.414 2015-47, 2015-39 I.R.B.419 2015-48, 2015-40 I.R.B.469 2015-49, 2015-41 I.R.B.555 2015-50, 2015-42 I.R.B.583 2015-51, 2015-42 I.R.B.583 2015-52, 2015-45 I.R.B.638 2015-53, 2015-44 I.R.B.615 2015-54, 2015-45 I.R.B.648 2015-55, 2015-49 I.R.B.788 2015-56, 2015-49 I.R.B.827 2015-57, 2015-51 I.R.B.863 Revenue Rulings: 2015-15, 2015-27 I.R.B.1 2015-16, 2015-31 I.R.B.130 2015-17, 2015-39 I.R.B.358 2015-18, 2015-34 I.R.B.209 2015-19, 2015-36 I.R.B.291 2015-20, 2015-38 I.R.B.353 2015-21, 2015-40 I.R.B.447 2015-22, 2015-44 I.R.B.610 2015-24, 2015-48 I.R.B.687 2015-25, 2015-49 I.R.B.695 2015-26, 2015-49 I.R.B.696 Treasury Decisions: 9723, 2015-31 I.R.B.84 9726, 2015-31 I.R.B.98 9727, 2015-32 I.R.B.154 9728, 2015-33 I.R.B.169 9729, 2015-35 I.R.B.221 9730, 2015-35 I.R.B.223 9731, 2015-37 I.R.B.314 9732, 2015-39 I.R.B.371 9733, 2015-41 I.R.B.494 9734, 2015-41 I.R.B.500 9735, 2015-37 I.R.B.316 9736, 2015-39 I.R.B.402 9737, 2015-40 I.R.B.449 9738, 2015-40 I.R.B.453 9739, 2015-41 I.R.B.528 9740, 2015-42 I.R.B.573 9741, 2015-45 I.R.B.628 9742, 2015-46 I.R.B.657 9743, 2015-48 I.R.B.679 9744, 2015-49 I.R.B.700 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–01 through 2015–26 is in Internal Revenue Bulletin 2015–26, dated June 29, 2015. December 21, 2015Bulletin No. 2015–51 ii Finding List of Current Actions on Previously Published Items 1 Bulletins 2015–27 through 2015–51 Notices: 2011-55 Amplified by Notice 2015-77, 2015-47 I.R.B.676 2012-48 Modified by Notice 2015-83, 2015-51 I.R.B.861 2013-7 Amplified by Notice 2015-77, 2015-47 I.R.B.676 2014-4 Modified by Notice 2015-51, 2015-31 I.R.B.133 2014-17 Superseded by Notice 2015-67, 2015-41 I.R.B.546 Proposed Regulations: 2009-57 Obsoleted by REG-112997-10 2015-39 I.R.B.422 2013-17 Obsoleted by REG-148998-13 2015-45 I.R.B.653 Revenue Procedures: 1992-75 Clarified by Rev. Proc. 2015-40, 2015-35 I.R.B.236 2003-40 Modified by Rev. Proc. 2015-40, 2015-35 I.R.B.236 2003-78 Modified by Rev. Proc. 2015-46, 2015-39 I.R.B.414 2006-9 Modified by Rev. Proc. 2015-41, 2015-35 I.R.B.263 2006-9 Superseded by Rev. Proc. 2015-41, 2015-35 I.R.B.263 2006-54 Modified by Rev. Proc. 2015-40, 2015-35 I.R.B.236 Revenue Procedures:—Continued 2006-54 Superseded by Rev. Proc. 2015-40, 2015-35 I.R.B.236 2008-31 Modified by Rev. Proc. 2015-41, 2015-35 I.R.B.263 2008-31 Superseded by Rev. Proc. 2015-41, 2015-35 I.R.B.263 2011-49 Modified by Rev. Proc. 2015-36, 2015-27 I.R.B.20 2011-49 Superseded by Rev. Proc. 2015-36, 2015-27 I.R.B.20 2015-8 Superseded by Rev. Proc. 2015-55, 2015-49 I.R.B.788 2015-14 Modified by Rev. Proc. 2015-39, 2015-33 I.R.B.195 2015-14 Modified by Rev. Proc. 2015-56, 2015-49 I.R.B.827 2015-18 Superseded by Rev. Proc. 2015-55, 2015-49 I.R.B.788 2015-40 Amplified by Rev. Proc. 2015-41, 2015-35 I.R.B.263 2015-41 Amplified by Rev. Proc. 2015-40, 2015-35 I.R.B.236 Revenue Rulings: 2014-30 Supplemented by Rev. Rul. 2015-24, 2015-48 I.R.B.687 2014-30 Superseded by Rev. Rul. 2015-24, 2015-48 I.R.B.687 Treasury Decisions: 58-422 Obsoleted by T.D. 9739 2015-41 I.R.B.528 Treasury Decisions:—Continued 66-284 Obsoleted by T.D. 9739 2015-41 I.R.B.528 79-250 Obsoleted by T.D. 9739 2015-41 I.R.B.528 79-289 Obsoleted by T.D. 9739 2015-41 I.R.B.528 96-29 Obsoleted by T.D. 9739 2015-41 I.R.B.528 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–01 through 2015–26 is in Internal Revenue Bulletin 2015–26, dated June 29, 2015. Bulletin No. 2015–51December 21, 2015 iii INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available atwww.irs.gov/irb/. We Welcome Comments About the Internal Revenue Bulletin If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave. NW, IR-6230 Washington, DC 20224. Internal Revenue Service Washington, DC 20224 Official Business Penalty for Private Use, $300
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