Internal Revenue Bulletin 2016-13 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

# INTERNAL REVENUE BULLETIN

IRS

## 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

### Notice 2016-22, page 488.

Notice 2016-22 provides employers with transition relief and
guidance on the amendment and extension of the Work Oppor-
tunity Tax Credit (WOTC) by the Protecting Americans from Tax
Hikes Act of 2015 (PATH Act). Specifically, the notice provides
employers with transition relief with respect to the 28-day
deadline for requesting certifications from a designated local
agency (DLA) for individuals (other than qualified long-term
unemployment recipients) hired on or after January 1, 2015
and on or before May 31, 2016. The notice also provides
employers with guidance on the new qualified long-term unem-
ployment recipient targeted group, and transition relief with
respect to qualified long-term unemployment recipients hired
on or after January 1, 2016 and on or before May 31, 2016.

### Notice 2016-24, page 492.

Resident populations of the 50 states, the District of Columbia,
Puerto Rico, and the insular areas for purposes of determining
the 2016 calendar year (1) state housing credit ceiling under
section 42(h) of the Code, (2) private activity bond volume cap
under section 146, and (3) private activity bond volume limit
under section 142(k) are reproduced.

## EMPLOYEE PLANS

### Notice 2016-25, page 493.

This notice sets forth updates on the corporate bond monthly
yield curve, the corresponding spot segment rates for March
2016 used under § 417(e)(3)(D), the 24-month average
segment rates applicable for March 2016, and the 30-year
Treasury rates. These rates reflect the application of
§ 430(h)(2)(C)(iv), which was added by the Moving Ahead for
Progress in the 21st Century Act, Public Law 112-141
(MAP-21) and amended by section 2003 of the Highway and
Transportation Funding Act of 2014 (HATFA).

Bulletin No.

2016-13

March 28, 2016

## EXEMPT ORGANIZATIONS

### Announcement 2016-13, page 514.

Revocation of IRC 501(c)(3) Organizations for failure to meet
the code section requirements. Contributions made to the
organizations by individual donors are no longer deductible
under IRC 170(b)(1)(A).

## EMPLOYMENT TAX

### Notice 2016-22, page 488.

## EXCISE TAX

### Notice 2016-15, page 486.

This notice provides guidance regarding the criteria for desig-
nation of a terminal located within a secure area of an airport
as a Secured Airport Terminal (SAT) for purposes of §§ 4081
and 4082. This notice also provides procedures for the IRS to
maintain an approved list of airports with such SATs. In addi-
tion, this notice provides procedures for a terminal operator to
request that a terminal be placed on the SAT list.

(Continued on the next page)

## ADMINISTRATIVE

### Notice 2016-15, page 486.

### Rev. Proc. 2016-19, page 497.

This revenue procedure describes procedures for taxpayers
and other entities under the jurisdiction of the Large Business
and International (LB&I), Small Business and Self Employed
(SB/SE), and Tax Exempt and Government Entities (TE/GE)
Operating Divisions to submit issues for consideration under
the Internal Revenue Service's Industry Issue Resolution (IIR)
Program.

### Rev. Proc. 2016-20, page 499.

This procedure provides specifications for the private printing
of red-ink substitutes for the most recent revisions of Forms
W-2c and W-3c. This procedure will be reproduced as the next
revision of Publication 1223. Rev. Proc. 2014-56 is super-
seded.

### Notice 2016-23, page 490.

This notice requests comments on the new partnership audit
regime instituted as part of the Bipartisan Budget Act of 2015
("BBA"). The Service intends to issue regulations for this new
regime and wishes to collect comments prior to that issuance.
This notice outlines the basic features of the BBA partnership
audit regime and highlights some of the areas on which the
Service would like to receive comments.

## 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.

## Part III. Administrative, Procedural, and Miscellaneous

### Treatment of Kerosene for Use in Aviation

### Notice 2016-15

#### SECTION 1. PURPOSE

This notice provides guidance regard-
ing the criteria for designation by the In-
ternal Revenue Service (IRS) of a termi-
nal located within a secure area of an
airport as a Secured Airport Terminal
(SAT) for purposes of §§ 4081 and 4082.
This notice also provides procedures for
the IRS to maintain an approved list of
airports with such SATs (SAT list). In
addition, this notice provides procedures
for a terminal operator to request that a
terminal be placed on the SAT list.

### SECTION 2. BACKGROUND

The American Jobs Creation Act of
2004 (Pub. L. 108-357) and the Safe,
Accountable, Flexible, Efficient Transpor-
tation Equity Act (Pub. L. 109-59) pro-
vided a new system for imposing excise
tax on kerosene used in aviation. Under
this system, kerosene generally is taxed at
a rate of 24.3 cents per gallon (excluding
the 0.1 cent per gallon imposed for the
Leaking Underground Storage Tank Trust
Fund (LUST) tax). However, if the kero-
sene is removed directly into the fuel tank
of an aircraft from a terminal or refinery,
it will be taxed at lower aviation rates.
Furthermore, if nontaxable use kerosene is
removed directly into the fuel tank of an
aircraft from a terminal, the general rate of
tax is reduced to zero. For purposes of
these exceptions, refueler trucks, tankers,
and tank wagons that meet certain condi-
tions ("refuelers") are treated as part of a
terminal if the terminal is located within a
secure area of an airport (i.e., a SAT).

H.R. Conf. Rep. No. 108-755, at 692
(2005), provided an initial list of terminals
located within secure areas of airports (the
SAT list). In Notice 2005-4, 2005-1 C.B.
289, the IRS adopted this list, with some
modifications, as its initial SAT list. No-
tice 2005-80, 2005-2 C.B. 953, modified
the SAT list. Currently, these documents
are the only public record of the SAT list.

### SECTION 3. LAW

Section 4081(a)(1)(A)(i) and (ii) im-
pose tax on the removal of taxable fuel,
which includes kerosene, from any refin-
ery or terminal.

Section 4081(a)(2)(A)(iii) prescribes a
tax rate of 24.3 cents per gallon of kerosene
for the tax imposed by § 4081(a)(1)(A).
Section 4081(a)(2)(B) imposes an addi-
tional tax of 0.1 cent per gallon (referred to
as the LUST financing rate).

Section 4081(a)(2)(C) reduces the tax
rates on kerosene used in aviation under
certain conditions. In the case of kerosene
that is removed from any refinery or ter-
minal directly into the fuel tank of an
aircraft for use in aviation, the rate of tax
under § 4081(a)(2)(A)(iii) is reduced from
24.3 cents per gallon to (i) 4.3 cents per
gallon in the case of use for commercial
aviation by a person registered for such
use under § 4101 or (ii) 21.8 cents per
gallon for use in the case of any aviation
not described by § 4081(a)(2)(C)(i).

Section 4081(a)(3)(A) provides that,
for purposes of § 4081(a)(2)(C), a refueler
truck, tanker, or tank wagon shall be
treated as part of a terminal if (i) such
terminal is located within an airport, (ii)
any kerosene which is loaded in such
truck, tanker, or wagon at such terminal is
for delivery only into aircraft at the airport
in which such terminal is located, (iii)
such truck, tanker, or wagon meets the
requirements of § 4081(a)(3)(B) with re-
spect to such terminal, and (iv) except in
the case of exigent circumstances identi-
fied by the Secretary in regulations, no
vehicle registered for highway use is
loaded with kerosene at such terminal.

Section 4081(a)(3)(B) provides that refu-
elers meet the requirements of § 4081(a)(3)
with respect to a terminal (and are there-
fore treated as part of a terminal) if such
refueler-(i) has storage tanks, hose, and
coupling equipment designed and used for
the purposes of fueling aircraft, (ii) is not
registered for highway use, and (iii) is
operated by-(I) the terminal operator of
such terminal, or (II) a person that makes
a daily accounting to such terminal oper-
ator of each delivery of fuel from such
refueler.

Section 4081(a)(3)(C) provides that the
Secretary shall require under § 4101(d)
reporting by such terminal operator of-
(i) any information obtained under
§ 4081(a)(3)(B)(iii)(II) (that is, the daily
accountings to terminal operators of fuel
deliveries made by other persons operat-
ing refuelers), and (ii) any similar infor-
mation maintained by such terminal oper-
ator with respect to deliveries of fuel
made by refuelers operated by such termi-
nal operator.

Section 4081(a)(3)(D) provides that (i)
in the case of kerosene treated as removed
from a terminal by reason of § 4081(a)(3), the
rate of tax specified in § 4081(a)(2)(C)(i) (that
is, 4.3 cents per gallon plus 0.1 cent per
gallon LUST) applies if such terminal is
located within a secured area of an airport,
and (ii) in all other cases, the rate of tax
specified in § 4081(a)(2)(C)(ii) (that is,
21.8 cents per gallon plus 0.1 cent per
gallon LUST) applies.

Section 4082(e) provides that in the
case of kerosene (other than kerosene with
respect to which tax is imposed under
§ 4043) which is exempt from the tax
imposed by § 4041(c) (other than by rea-
son of a prior imposition of tax, for ex-
ample, because of the operation of
§ 4041(f) or (g)) and which is removed
from any refinery or terminal directly into
the fuel tank of an aircraft (1) the rate of
tax under § 4081(a)(2)(A)(iii) shall be
zero and (2) if such aircraft is employed in
foreign trade or trade between the United
States and any of its possessions, the in-
crease in such rate under § 4081(a)(2)(B)
shall be zero. For purposes of § 4082(e),
any removal described in § 4081(a)(3)(A)
shall be treated as a removal from a ter-
minal but only if such terminal is located
within a secure area of an airport.

Section 4083(d)(1) provides that the
Secretary may in administering compli-
ance with subpart A of part III of subchap-
ter A of chapter 32 (motor and aviation
fuels), § 4041, and penalties and other
administrative provisions related there-
to-(A) enter any place at which taxable
fuel is produced or is stored (or may be
stored) for purposes of-(i) examining the
equipment used to determine the amount
or composition of such fuel and the equip-
ment used to store such fuel, (ii) taking

and removing samples of such fuel, and
(iii) inspecting any books and records and
any shipping papers pertaining to such
fuel, and (B) detain, for the purposes re-
ferred in § 4083(d)(1)(A), any container
which contains or may contain any tax-
able fuel.

Section 48.4101-1(c)(1)(vi) of the
Manufacturers and Retailers Excise Tax
regulations requires a terminal operator to
register under § 4101.

### SECTION 4. SAT DESIGNATION CRITERIA

In order to be designated as a SAT, a
terminal must meet the following criteria:

(1) The terminal operator requests that
the terminal be designated as a SAT ac-
cording to the procedures in § 5 of this
notice;

(2) The terminal operator is registered
as a terminal operator under § 4101;

(3) The terminal is a terminal within
the meaning of § 48.4081-1;

(4) The terminal is located within an
airport;

(5) Only authorized vehicles are al-
lowed to enter and exit the terminal;

(6) Kerosene received, stored, and re-
moved is exclusively for delivery into the
fuel tank of an aircraft at the terminal;

(7) Kerosene delivery into the fuel tank
of an aircraft is made directly from the
terminal, such as through a hydrant sys-
tem, or by qualifying refuelers, as defined
in § 4081(a)(3) that are used only to trans-
port and deliver kerosene into the fuel
tank of an aircraft;

(8) Except in the case of exigent cir-
cumstances identified by the Secretary in
regulations, no vehicle registered for high-
way use is loaded with kerosene at such
terminal; and

(9) The terminal has security measures
that are consistent with customary busi-
ness security practices designed to resist
access to the terminal by unauthorized
personnel and unauthorized vehicles.

### SECTION 5. SAT LIST MAINTENANCE PROCESS

.01 Procedures to request SAT status.

(1) The terminal operator must request,
in writing, that the IRS add the terminal to
the SAT list by mailing the request to
Department of the Treasury, Internal Rev-

enue Service, Excise Operations Unit -
Stop 5701G, Cincinnati, OH 45999. Re-
quests must have "Excise Tax - SAT Re-
quest - Stop 5701G" written at the top
center of the request and must include the
following information:

a. Name of entity making the request

b. Employer identification number

c. Mailing address

d. Terminal control number (TCN)

e. Contact person

(2) The IRS will arrange for one or
more IRS representatives such as a reve-
nue agent or a fuel compliance officer to
perform an onsite inspection of the termi-
nal to inspect for compliance with the
criteria described in § 4 of this notice.

a. If the IRS approves the request,
generally within 60 days from re-
ceipt of the request, the IRS will
issue the terminal operator a SAT
approval letter. SAT designation is
valid upon the issuance of the SAT
approval letter. The IRS will also
add the terminal to the SAT list.

b. If the IRS denies the request, gen-
erally within 60 days from receipt
of the request, the IRS will inform
the terminal operator of the reason
for the denial in writing. The appli-
cant will have 10 business days
from the date of the denial letter
within which to submit a written
appeal of the denial under proce-
dures specified in § 5.01(3) of this
notice. If the applicant does not ap-
peal the denial, the applicant may
submit another request for SAT des-
ignation after 10 days from the date
of the denial letter. In addition to
the information required in
§ 5.01(1) of this notice, the appli-
cant must explain what has changed
since the earlier denial to make the
terminal eligible for SAT designa-
tion.

(3) The following appeal procedures
will apply to contested denials:

a. The applicant may submit a written
appeal of the denial to the Chief of
Excise Tax Examination for a final
determination.

b. The applicant must send the request
to the address provided in § 5.01(1)
of this notice and include the infor-

mation required in that section. The
request must also explain why the
applicant thinks the application
should not be denied.

c. If the Chief of Excise Tax Exami-
nation concurs with the denial, the
IRS will issue the applicant a writ-
ten letter denying its appeal for SAT
designation. If the Chief of Excise
Tax Examination determines that
the IRS should grant the SAT des-
ignation, the IRS will issue the ap-
plicant a letter of approval.

d. The applicant has no further admin-
istrative recourse if it disagrees with
a denial on appeal and must submit
another request for SAT designation
under procedures described in
§ 5.01(2)(b) of this notice.

.02 Requirements after SAT approval

(1) A terminal operator of a SAT must
notify the IRS in writing within 10 days
when there are changes in business oper-
ations, including changes in refueling
equipment, security measures, owners/op-
erators, or any other change to any of the
SAT designation criteria listed in § 4 of
this notice.

(2) Upon receipt or discovery of infor-
mation that a terminal no longer qualifies
for the SAT designation, the IRS may
confirm that the terminal no longer com-
plies with the SAT criteria, and issue a
written notification to the terminal opera-
tor that the terminal's SAT status will be
revoked and the terminal removed from
the SAT list no earlier than 10 business
days from the date of the written notifica-
tion.

(3) A terminal operator may appeal the
notification of revocation through the fol-
lowing appeal procedures:

a. The terminal operator submits a
written appeal of the notice of revo-
cation to the Chief of Excise Tax Ex-
amination for a final determination
within 10 business days from the date
of the written notification.

b. The terminal operator must send the
request to the address provided in
§ 5.01(1) of this notice and include
the information required in that sec-
tion. The request must also explain
why revocation would be inappro-
priate.

c. If the Chief of Excise Tax Exami-
nation concurs with the revocation,
the IRS will issue the terminal oper-
ator a letter in writing denying its
appeal. If the Chief of Excise Tax
Examination determines that the IRS
should not revoke the SAT designa-
tion, the IRS will issue the terminal
operator a letter withdrawing the no-
tice of revocation.

d. The applicant has no administrative
recourse if it disagrees with a denial
on appeal and must submit another
request for SAT designation under
the procedure described in § 5.01(2)
of this notice that applies following a
denial of SAT designation.

## SECTION 6. THE SAT LIST

(1) As of March 8, 2016, the following
airports include an approved SAT and the
terminal operator does not need to request
SAT approval for that terminal. The air-
ports are listed by the airport name and the
TCN of the approved SAT.

Baltimore/Washington International Air-
port, T-52-MD-1569;

Bradley International Airport, T-06-CT-
1271;

Charlotte/Douglas International Airport,
T-56-NC-2032;

Cincinnati/Northern Kentucky Interna-
tional Airport, T-61-KY-3277;

Cleveland Hopkins International Airport,
T-31-OH-3109;

Colorado Springs Airport, T-84-CO-
4108;

Dallas Fort Worth International Airport,
T-75-TX-2673;

Dallas Love Field Airport, T-75-TX-
2663;

Denver International Airport, T-84-CO-
4111;

Dulles International Airport, T-54-VA-
1676;

Federal Express Corporation Memphis
Airport, T-62-TN-2220;

Fort Lauderdale/Hollywood International
Airport, T-65-FL-2158;

General Mitchell International Airport,
T-39-WI-3092;

George Bush Intercontinental Airport,
T-76-TX-2818;

Honolulu International Airport, T-91-
HI-4570;

John F. Kennedy International Airport,
T-11-NY-1334;

Kansas City International Airport, T-43-
MO-3723;

Lambert International Airport, T-43-
MO-3722;

Logan International Airport, T-04-MA-
1171;

Los Angeles International Airport, T-95-
CA-4812;

Louis Armstrong New Orleans Interna-
tional Airport, T-72-LA-2356;

McCarren International Airport, T-86-
NV-4355;

Memphis International Airport, T-62-
TN-2212;

Mid Continent Airport, T-43-KS-3653;
Midway Airport, T-36-IL-3376;

Minneapolis-St. Paul International Air-
port, T-41-MN-3419;

Minneapolis-St. Paul International Air-
port, T-41-MN-3420;

Minneapolis-St. Paul International Air-
port, T-41-MN-3421;

Nashville Metropolitan Airport, T-62-
TN-2222;

Newark Liberty International Airport,
T-22-NJ-1532;

Oakland International Airport, T-94-
CA-4702;

O'Hare International Airport, T-36-IL-
3325;

Ontario International Airport, T-33-CA-
4792;

Orlando International Airport, T-59-FL-
2111;

Philadelphia International Airport, T-23-
PA-1770;

Piedmont Triad International Airport,
T-56-NC-2038;

Pittsburgh International Airport, T-23-
PA-1766;

Portland International Airport, T-91-OR-
4450;

Raleigh/Durham International, T-56-
NC-2045;

Reno Cannon International Airport,
T-86-NV-4352;

Ronald Reagan National Airport, T-54-
VA-1686;

Salt Lake City International Airport,
T-84-UT-4207;

San Diego International Airport, T-33-
CA-4788;

San Francisco International Airport,
T-94-CA-4701;

Seattle Tacoma International Airport,
T-91-WA-4425;

Sky Harbor International Airport, T-86-
AZ-4302;

Tampa/St. Petersburg International Air-
port, T-59-FL-2110;

Ted Stevens International Airport, T-91-
AK-4520;

Wayne County Metropolitan Airport,
T-38-MI-3018;

William B. Hartsfield Atlanta Interna-
tional Airport, T-58-GA-2512;

William B. Hartsfield Atlanta Interna-
tional Airport, T-58-GA-2513;

William B. Hartsfield Atlanta Interna-
tional Airport, T-58-GA-2536.

(2) The IRS will maintain a current
SAT list, which will be publicly available
on the IRS website (in Microsoft Excel
and PDF formats). The list will include
the name of the airport and the TCN, or
other such number the IRS may use for
SAT designation, of the approved SAT.

## SECTION 7. EFFECTIVE/ APPLICABILITY DATES

This Notice is effective March 8, 2016.

## SECTION 8. DRAFTING INFORMATION

The principal author of this notice is
Rachel S. Smith of the Office of Associate
Chief Counsel (Passthroughs & Special
Industries). For further information re-
garding this notice, please contact Ms.
Smith at (202) 317-6855 (not a toll-free
number).

## Work Opportunity Tax Credit (WOTC) Guidance and Transition Relief

Notice 2016-22

### I. PURPOSE

This notice provides guidance and
transition relief for employers claiming
the Work Opportunity Tax Credit
(WOTC) under §§ 51 and 3111(e) of the
Internal Revenue Code (Code), as ex-
tended and amended by the Protecting
Americans from Tax Hikes Act of 2015,
Pub. L. No. 114-113, div. Q (the PATH
Act). Section 142(a) of the PATH Act

amended § 51(c) of the Code to extend the
WOTC through December 31, 2019. Sec-
tion 142(b) of the PATH Act amended
§ 51(d) of the Code to expand the "tar-
geted groups" of individuals, the employ-
ment of whom may qualify the employer
for a credit listed in the statute, to include
qualified long-term unemployment recip-
ients (as defined in § 51(d)(15) of the
Code). This notice provides guidance and
transition relief beyond the 28-day dead-
line in § 51(d)(13)(A)(ii) of the Code for
employers that hire members of targeted
groups (other than qualified long-term un-
employment recipients) on or after Janu-
ary 1, 2015, and on or before May 31,
2016. This notice also provides guidance
and transition relief beyond the 28-day
deadline in § 51(d)(13)(A)(ii) of the Code
for employers that hire members of the new
targeted group of qualified long-term unem-
ployment recipients on or after January 1,
2016, and on or before May 31, 2016.

## II. BACKGROUND

Section 51(a) of the Code provides the
WOTC to employers based on a percent-
age of qualified wages paid during the
taxable year. Section 51(b) of the Code
defines qualified wages as wages paid or
incurred by an employer during the tax-
able year to an individual who is a mem-
ber of a targeted group. Section 51(d)(1)
of the Code lists the targeted groups. Pur-
suant to § 51(d)(13)(A) of the Code, an
individual is not treated as a member of a
targeted group unless (1) on or before the
day the individual begins work, the em-
ployer obtains certification from the des-
ignated local agency (DLA) that the indi-
vidual is a member of a targeted group; or
(2) the employer completes a pre-
screening notice on or before the day the
individual is offered employment and sub-
mits such notice to the DLA to request
certification not later than 28 days after
the individual begins work. To request
certification from a DLA, an employer
submits IRS Form 8850, Pre-Screening
Notice and Certification Request for the
Work Opportunity Credit, to the DLA no
later than the 28th day after the day an
individual who is a member of a targeted
group begins work for the employer. An
employer also must submit a Department
of Labor Employment and Training Ad-
ministration (ETA) Form 9061 (Individ-

ual Characteristics Form) or 9062 (Condi-
tional Certification) to the DLA. Section
51(d)(12) of the Code provides that a
DLA means a State employment security
agency established in accordance with 29
U.S.C. §§ 49-49n.

Since originally enacted by § 1201 of
the Small Business Job Protection Act of
1996, Pub. L. No. 104-188, the WOTC
has been subject to a series of legislative
extensions and modifications.

## III. AMENDMENTS MADE BY THE PATH ACT

The PATH Act extends the WOTC
through December 31, 2019 for taxable
employers that hire members of a targeted
group and for qualified tax-exempt orga-
nizations described in § 501(c) of the
Code that hire qualified veterans.

The PATH Act also amends § 51(d)(1)
of the Code to add qualified long-term
unemployment recipients to the list of tar-
geted groups, effective as of January 1,
2016. Section 51(d)(15) of the Code de-
fines a qualified long-term unemployment
recipient as any individual who is certified
by a DLA as being in a period of unem-
ployment which is not less than 27 con-
secutive weeks and includes a period in
which the individual was receiving unem-
ployment compensation under State or Fed-
eral law. This additional targeted group does
not apply for purposes of qualified tax-
exempt organizations taking the credit pro-
vided by § 3111(e) against an employer
social security tax.

## IV. GUIDANCE AND TRANSITION RELIEF

An employer must obtain certification
that an individual is a member of a tar-
geted group before the employer may
claim the WOTC. As stated in Section II
of this notice, § 51(d)(13)(A) of the Code
provides that an individual is not treated
as a member of a targeted group unless (i)
on or before the day the individual begins
work for the employer, the employer ob-
tains certification from a DLA that the
individual is a member of a targeted
group; or (ii) on or before the day the
individual is offered employment with the
employer, a prescreening notice (IRS
Form 8850) is completed and no later than
28 days after the individual begins work

the employer submits the prescreening no-
tice to the DLA for certification. An em-
ployer obtains certification of an individ-
ual's targeted group status from a DLA by
submitting both the IRS Form 8850 and
an ETA Form 9061 or 9062 to the DLA.
Employers are encouraged to submit both
the IRS Forms 8850 and the ETA Forms
9061 or 9062 together in the same sub-
mission.

## A. QUALIFIED LONG-TERM UNEMPLOYMENT RECIPIENTS

The PATH Act's amendment and ex-
pansion of the targeted groups described
in § 51(d)(1) of the Code to include long-
term unemployment recipients will re-
quire changes to forms used by employers
to request certification for qualified long-
term unemployment recipients hired on or
after January 1, 2016. For purposes of this
notice, a qualified long-term unemployment
recipient is any individual who on the day
before the individual begins work for the
employer, or, if earlier, the day the individ-
ual completes the IRS Form 8850 as a pre-
screening notice in accordance with the cer-
tification described in§ 51(d)(13)(A)(ii), is
in a period of unemployment that is (i) not
less than 27 consecutive weeks, and (ii)
includes a period (which may be less than
27 weeks) in which the individual received
unemployment compensation under State or
Federal law.

The IRS Form 8850 and ETA Forms
9061 and 9062 are being modified consis-
tent with the guidance in this notice so
that they can be used to request certifica-
tion by the DLAs for qualified long-term
unemployment recipients. Those modified
forms and instructions will indicate the
information that must be provided on the
forms for the employer to receive certifi-
cation from the DLA that the individual is
a qualified long-term unemployment re-
cipient. The Treasury Department and the
IRS anticipate that the modified forms
will include a requirement that the indi-
vidual signing the form attest that he or
she meets the requirements to be a quali-
fied long-term unemployment recipient
and a requirement that the individual at-
test to the period(s) during which the in-
dividual was unemployed and the period
the individual received unemployment
compensation.

## B. TRANSITION RELIEF

Because the PATH Act extended the
WOTC retroactively for 2015 for members
of targeted groups described in
§ 51(d)(1)(A) through (d)(1)(I) of the Code,
and because the PATH Act created a new
targeted group described in § 51(d)(1)(J) of
the Code (qualified long-term unemploy-
ment recipients), employers need additional
time to comply with the requirements of
§ 51(d)(13)(A)(ii) of the Code for those
targeted groups. For these reasons, the Trea-
sury Department and the IRS have deter-
mined that it is appropriate to provide em-
ployers with additional time to file IRS
Form 8850 with the DLAs.

### 1. Additional time for employers that hired or hire members of targeted groups other than qualified long-term unemployment recipients between January 1, 2015 and May 31, 2016

An employer that hired or hires a mem-
ber of a targeted group described in
§ 51(d)(1)(A) through (d)(1)(I) of the
Code and who began or begins work for
that employer on or after January 1, 2015,
and on or before May 31, 2016, will be
considered to have satisfied the require-
ments of § 51(d)(13)(A)(ii) of the Code if
the employer submits the completed IRS
Form 8850 to the DLA to request certifi-
cation no later than June 29, 2016.

### 2. Additional time for employers that hired or hire long-term unemployment recipients between January 1, 2016 and May 31, 2016

An employer that hired or hires an in-
dividual who is a long-term unemploy-
ment recipient described in § 51(d)(1)(J)
of the Code and who began or begins
work for that employer on or after January
1, 2016, and on or before May 31, 2016,
will be considered to have satisfied the
requirements of § 51(d)(13)(A)(ii) if the
employer submits the completed IRS
Form 8850 to the DLA to request certifi-
cation no later than June 29, 2016.

### 3. Application of 28-day requirement to individuals hired on or after June 1, 2016

An employer that hires a member of a
targeted group described in § 51(d)(1)(A)

through (d)(1)(J) of the Code, including a
long-term unemployment recipient, who
begins work for that employer on or after
June 1, 2016, is not eligible for the tran-
sition relief described in this notice with
respect to any such new hire.

## V. DRAFTING INFORMATION

The principal author of this notice is R.
Lisa Mojiri-Azad of the Office of Associ-
ate Chief Counsel (Tax Exempt and Gov-
ernment Entities). For further information
regarding the WOTC, contact Ms. Mojiri-
Azad at (202) 317-5500 (not a toll-free
number).

### Request for Comments Regarding Implementation of the New Partnership Audit Regime Enacted as Part of the Bipartisan Budget Act of 2015

## Notice 2016-23

### I. PURPOSE

The purpose of this Notice is to solicit
comments regarding implementation of
section 1101 of the Bipartisan Budget Act
of 2015, Pub. L. No. 114-74 ("the
BBA"), which was enacted into law on
November 2, 2015. Section 1101 of the
BBA repeals the current rules governing
partnership audits and replaces them with
a new centralized partnership audit regime
that, in general, assesses and collects tax
at the partnership level.

The repeal of the current partnership
audit rules and implementation of the new
partnership audit regime are generally ef-
fective for partnership taxable years be-
ginning after December 31, 2017. See sec-
tion 1101(g)(1) of the BBA. However,
section 1101(g)(4) generally provides that
a partnership may elect (at such time and
in such form and manner as the Secretary
may prescribe) for parts of the new regime
to apply to partnership taxable years be-
ginning after November 2, 2015 and be-
fore January 1, 2018.

The Department of the Treasury
("Treasury Department") and the Internal
Revenue Service ("IRS") intend to issue
guidance implementing the new partner-

ship audit regime. Specifically, guidance
describing procedures for making the
election to have parts of the new regime
apply to taxable years beginning after No-
vember 2, 2015 and before January 1,
2018 is expected to be published in the
near future. Partnerships that wish to
make this election should wait until that
guidance is published to ensure the elec-
tion complies with the requirements for
making a valid election. The guidance will
be effective for taxable years beginning
after November 2, 2015 and before Janu-
ary 1, 2018.

## II. BACKGROUND

Section 1101(a) of the BBA removes
subchapter C of chapter 63 of the Internal
Revenue Code ("the Code") effective for
partnership taxable years beginning after
December 31, 2017. Subchapter C of
chapter 63 contains the unified partnership
audit and litigation rules that were enacted
as part of the Tax Equity and Fiscal Re-
sponsibility Act of 1982, Pub. L. 97-248.
These partnership audit and litigation
rules are commonly referred to as the TE-
FRA partnership procedures.

Section 1101(b) of the BBA also re-
moves subchapter D of chapter 63 and part
IV of subchapter K of chapter 1 of the Code,
rules applicable to electing large partner-
ships, effective for partnership taxable years
beginning after December 31, 2017. Sub-
chapter D contains the audit rules for elect-
ing large partnerships, and part IV of sub-
chapter K prescribes the income tax
treatment for such partnerships.

Section 1101(c) of the BBA replaces
the rules to be removed by sections
1101(a) and (b) with a new partnership
audit regime. Section 1101(c) adds a new
subchapter C to chapter 63 of the Code, in-
cluding amended Code sections 6221-6241.
The BBA also makes related and conform-
ing amendments to other provisions of the
Code.

On December 18, 2015, President
Obama signed into law the Protecting
Americans from Tax Hikes Act of 2015,
Pub. L. 114-113, div. Q ("PATH Act").
Section 411 of the PATH Act corrects and
clarifies certain amendments made by the
BBA. The amendments under the PATH
Act are effective as if included in section
1101 of the BBA, and therefore, subject to

the effective dates in section 1101(g) of
the BBA.

Section 6221(a) as amended by the
BBA provides that, in general, any adjust-
ment to items of income, gain, loss, de-
duction, or credit of a partnership for a
partnership taxable year (and any part-
ner's distributive share thereof) shall be
determined, and any tax attributable
thereto shall be assessed and collected, at
the partnership level. The applicability of
any penalty, addition to tax, or additional
amount which relates to an adjustment to
any such item or share shall also be de-
termined at the partnership level. Section
6221(b) as amended by the BBA provides
rules for partnerships that are required to
furnish 100 or fewer Schedules K-1, Part-
ner's Share of Income, Deductions, Cred-
its, etc. to elect out of this new regime.
Generally, a partnership may elect out of
the new regime only if each of its partners
is an individual, corporation (including
certain types of foreign entities), or estate.
Special rules apply for purposes of deter-
mining the number of partners in the case
of a partner that is an S corporation. Sec-
tion 6221(b)(2)(C) provides that the Sec-
retary by regulation or other guidance
may prescribe rules for purposes of the
100-or-fewer-Schedule K-1 requirement
similar to the rules for S corporations with
respect to any partner that is not an indi-
vidual, corporation, or estate.

Section 6222 as amended by the BBA
provides rules generally requiring a part-
ner's return to be consistent with the part-
nership's return.

Section 6223 as amended by the BBA
sets forth the rules for designation of a
partnership representative. Under this pro-
vision, a partnership representative must
be a partner (or other person) with a sub-
stantial presence in the United States. If a
designation is not in effect, the IRS may
select any person as a partnership repre-
sentative.

Section 6225 as amended by the BBA
generally addresses partnership adjust-
ments made by the IRS and the calcula-
tion of any resulting imputed underpay-
ment. Section 6225(a) generally provides
that the amount of any imputed underpay-
ment resulting from an adjustment must
be paid by the partnership. Section
6225(b) describes how an imputed under-
payment is determined, and section

6225(c) describes modifications that, if
approved by the IRS, may reduce the
amount of an imputed underpayment. The
PATH Act added to section 6225(c) a
special rule addressing certain passive
losses of publicly traded partnerships.
Section 6233 provides rules for computa-
tion of interest and penalties on an im-
puted underpayment.

Section 6226 as amended by the BBA
provides an exception to the general rule
under section 6225(a)(1) that the partner-
ship must pay the imputed underpayment.
Under section 6226, the partnership may
elect to have the reviewed year partners
take into account the adjustments made by
the IRS and pay any tax due as a result of
those adjustments. In this case, the part-
nership is not required to pay the imputed
underpayment. Section 6225(d)(1) defines
the reviewed year to mean the partnership
taxable year to which the item(s) being
adjusted relates.

Under section 6227 as amended by the
BBA, the partnership may request an ad-
ministrative adjustment, which is taken
into account in the year the administrative
adjustment request is made. The partner-
ship generally has three years from the
date of filing the return to make an admin-
istrative adjustment request for that year,
but may not make an administrative ad-
justment request for a partnership taxable
year after the IRS has mailed the partner-
ship a notice of an administrative proceed-
ing with respect to the taxable year.

Section 6241(4) as amended by the
BBA provides that no deduction is al-
lowed under subtitle A for any payment
required to be made by a partnership un-
der the new partnership audit regime.

Section 6231 as amended by the BBA
describes notices of proceedings and ad-
justments, including certain time frames
for mailing the notices and the authority to
rescind any notice of adjustment with the
partnership's consent. Section 6232(a)
provides that any imputed underpayment
is assessed and collected in the same man-
ner as if it were a tax imposed for the
adjustment year by subtitle A, except that
in the case of an administrative adjust-
ment request that reports an underpay-
ment that the partnership elects to pay, the
underpayment shall be paid when the re-
quest is filed.

Section 6234 as amended by the BBA
generally provides that a partnership may
seek judicial review of the adjustments
within 90 days of the date the notice of
final partnership adjustment is mailed.
Section 6235 provides the period of limi-
tations on making adjustments. Section
6241 provides definitions and special
rules, including rules addressing bank-
ruptcy and treatment when a partnership
ceases to exist.

## III. REQUEST FOR COMMENTS

.01 The Treasury Department and the
IRS intend to issue guidance to implement
the new partnership audit regime under
sections 6221-6241 of the Code, as
amended by section 1101 of the BBA and
section 411 of the PATH Act. To assist in
the development of this guidance, this No-
tice requests public comments on issues
that the guidance should address. In par-
ticular, the Treasury Department and the
IRS request comments on the following
issues:

(1) The election out of the new central-
ized partnership audit regime under sec-
tion 6221(b) for partnerships that are re-
quired to furnish 100 or fewer Schedules
K-1, including whether any type of part-
ner, other than those types of partners
specifically identified in section
6221(b)(1)(C), should be treated under
rules similar to the special rules applicable
to S corporations.

(2) Designation of the partnership rep-
resentative under section 6223, including:

a. Any limitations on who may be des-
ignated as a partnership representa-
tive;

b. The definition of substantial pres-
ence in the United States; and

c. Designation of the partnership rep-
resentative by the IRS in cases
where the partnership fails to desig-
nate a representative or the designa-
tion is not in effect.

(3) The determination of the imputed
underpayment under section 6225, includ-
ing:

a. How the netting calculation under
section 6225(b)(1) should work; and

b. How character changes, restrictions,
and limitations under the Code are
taken into account.

(4) Modification of the imputed under-
payment under section 6225(c), including:

a. The mechanics and timing for re-
questing modification and docu-
mentation to be provided to support
the request for modification;

b. Implementation of the modification,
with respect to publicly-traded part-
nerships, for certain specified pas-
sive losses under section 469;

c. The effect of unrelated business tax-
able income of a tax-exempt entity
on the modification procedure relat-
ing to tax-exempt partners; and

d. Any other issues and factors that
should be considered when formu-
lating the modification procedures.

(5) How an adjustment made by the
IRS under section 6225 that does not re-
sult in an imputed underpayment should
be taken into account by the partnership.

(6) The election to use the alternative
to payment of the imputed underpayment
by the partnership under section 6226,
including:

a. How to make the election, the time
for providing information to the IRS,
the information that should be re-
quired to be included with the elec-
tion, and the form and content of the
statement of adjustments to be pro-
vided to the partners and the IRS;

b. When the statements should be filed
with the IRS and furnished to part-
ners;

c. How the adjustments in the final
notice of partnership adjustment
should be reflected if the adjust-
ments are changed as a result of a
court proceeding;

d. Generally, how tax attributes should
be taken into account for interven-
ing years between the reviewed year
and the adjustment years;

e. How adjustments are taken into ac-
count by partners under the alterna-
tive to payment of the imputed under-
payment by the partnership under
section 6226; and

f. The consequences that result when a
partner fails to account for adjust-
ments as required under section
6226(b), including how tax attribut-
able to those adjustments is assessed
and collected.

(7) How a partnership makes an ad-
ministrative adjustment request ("AAR")
under section 6227 and the effect of such
a request, including:

a. The circumstances in which a part-
nership may want to file an AAR;

b. The mechanics for how to file an
AAR and pay any imputed under-
payment;

c. How partnerships should account
for adjustments requested as part of
an AAR;

d. What steps the IRS should take
upon receipt of an AAR; and

e. What opportunities the partnership
has for review of IRS actions taken
with respect to an AAR.

(8) The effect of adjustments on the
basis of the partners in their partnership
interests and the basis of the partnership in
its assets.

(9) The rules for consistent filing of
partner returns, including:

a. The rules for notifying the IRS of an
inconsistent position;

b. The treatment of partners that prop-
erly file such notification; and

c. Whether, and to what extent, the
existing framework for inconsis-
tent partner returns and notifica-
tion of inconsistent partner returns
under TEFRA should apply.

(10) The effect of bankruptcy and the
treatment under the new partnership audit
rules where a partnership ceases to exist.

(11) Procedural rules, including:

a. Notices of proceedings and adjust-
ment;

b. Rules regarding assessment, collec-
tion, and payment of the imputed
underpayment;

c. The computation of penalties and
interest;

d. Judicial review of partnership ad-
justments; and

e. The period of limitations on making
adjustments under section 6235.

(12) Any other issues relevant to the
implementation of the new partnership audit
rules, including topics related to any of the
above listed issues but not specifically iden-
tified in the list above, e.g., the interaction of
these rules with international tax provisions.

.02 The new partnership audit rules are
generally effective for tax years beginning
after December 31, 2017. However, part-
nerships are permitted to elect to have
parts of the new regime apply to tax years
beginning after November 2, 2015 and
before January 1, 2018. Given the scope
of the guidance anticipated to be neces-

sary to implement these rules, and the
need to expedite the guidance process in
light of the statutory effective dates, writ-
ten comments in response to this Notice
are requested by April 15, 2016.

## IV. ADDRESS TO SEND COMMENTS

.01 Comments responding to this No-
tice should be sent to:

· Internal Revenue Service

· CC:PA:LPD:PR (Notice 2016-23)

· Room 5203

· P.O. Box 7604

· Ben Franklin Station

· Washington, DC 20044
Please include "Notice 2016-23" on
the cover page.

.02 Submissions may be hand deliv-
ered Monday through Friday between the
hours of 8 a.m. and 4 p.m. to:

· Internal Revenue Service

· Courier's Desk

· 1111 Constitution Ave., N.W.

· Washington, DC 20224

· Attn: CC:PA:LPD:PR

· (Notice 2016-23)

.03 Submissions may also be sent elec-
tronically to the following e-mail address:
Notice.Comments@irscounsel.treas.gov.
Please include "Notice 2016-23" in the
subject line.

All comments will be available for
public inspection and copying.

## V. DRAFTING INFORMATION

The principal author of this notice is Joy
E. Gerdy Zogby of the Office of Associate
Chief Counsel (Procedure & Administra-
tion). For further information regarding this
notice contact Joy E. Gerdy Zogby on (202)
317-6834 (not a toll-free number).

## 2016 Calendar Year Resident Population Figures Notice 2016-24

This notice advises State and local
housing credit agencies that allocate low-
income housing tax credits under § 42 of
the Internal Revenue Code, and States and
other issuers of tax-exempt private activ-

ity bonds under § 141, of the population
figures to use in calculating: (1) the 2016
calendar year population-based compo-
nent of the State housing credit ceiling
(Credit Ceiling) under § 42(h)(3)(C)(ii);
(2) the 2016 calendar year volume cap
(Volume Cap) under § 146; and (3) the
2016 volume limit (Volume Limit) under
§ 142(k)(5).

Generally, § 146(j) requires determin-
ing the population figures for the
population-based component of both the
Credit Ceiling and the Volume Cap for
any calendar year on the basis of the most
recent census estimate of the resident pop-
ulation of a State (or issuing authority)
released by the U.S. Census Bureau be-
fore the beginning of the calendar year.
Similarly, § 142(k)(5) bases the Volume
Limit on the State population.

Sections 42(h)(3)(H) and 146(d)(2) re-
quire adjusting for inflation the population-
based component of the Credit Ceiling and the
Volume Cap. The adjustments for the 2016
calendar year are in Rev. Proc. 2015-53,
2015-44 I.R.B. 615. Section 3.09 of Rev.
Proc. 2015-53 provides that, for calendar year
2016, the amount for calculating the Credit
Ceiling under § 42(h)(3)(C)(ii) is the greater of
$2.35 multiplied by the State population, or
$2,690,000. Further, section 3.20 of Rev. Proc.
2015-53 provides that the amount for calcu-
lating the Volume Cap under § 146(d)(1) for
calendar year 2016 is the greater of $100 mul-
tiplied by the State population, or
$302,875,000.

For the 50 states, the District of Co-
lumbia, and Puerto Rico, the population
figures for calculating the Credit Ceiling,
the Volume Cap, and the Volume Limit
for the 2016 calendar year are the resident
population estimates released electroni-
cally by the U.S. Census Bureau on De-
cember 22, 2015, and described in Press
Release CB15-215. For American Samoa,
Guam, the Northern Mariana Islands, and
the U.S. Virgin Islands, the population
figures for the 2016 calendar year are the
2015 midyear population figures in the
U.S. Census Bureau's International Data
Base (IDB). The U.S. Census Bureau
electronically announced an update of the
IDB on July 9, 2015, in Press Release
CB15-TPS.53.

For convenience, these figures are re-
printed below.

Resident Population Figures

Alabama

4,858,979

Alaska

738,432

American Samoa

54,343

Arizona

6,828,065

Arkansas

2,978,204

California

39,144,818

Colorado

5,456,574

Connecticut

3,590,886

Delaware

945,934

District of

672,228

Columbia

Florida

20,271,272

Georgia

10,214,860

Guam

161,785

Hawaii

1,431,603

Idaho

1,654,930

Illinois

12,859,995

Indiana

6,619,680

Iowa

3,123,899

Kansas

2,911,641

Kentucky

4,425,092

Louisiana

4,670,724

Maine

1,329,328

Maryland

6,006,401

Massachusetts

6,794,422

Michigan

9,922,576

Minnesota

5,489,594

Mississippi

2,992,333

Missouri

6,083,672

Montana

1,032,949

Nebraska

1,896,190

Nevada

2,890,845

New Hampshire

1,330,608

New Jersey

8,958,013

New Mexico

2,085,109

New York

19,795,791

North Carolina

10,042,802

North Dakota

756,927

Northern Mariana

52,344

Islands

Ohio

11,613,423

Oklahoma

3,911,338

Oregon

4,028,977

Pennsylvania

12,802,503

Puerto Rico

3,474,182

Resident Population Figures

Rhode Island

1,056,298

South Carolina

4,896,146

South Dakota

858,469

Tennessee

6,600,299

Texas

27,469,114

Utah

2,995,919

Vermont

626,042

Virginia

8,382,993

Virgin Islands, U.S.

103,574

Washington

7,170,351

West Virginia

1,844,128

Wisconsin

5,771,337

Wyoming

586,107

The principal authors of this notice are
James A. Holmes, Office of the Associate
Chief Counsel (Passthroughs and Special
Industries), and Timothy L. Jones, Office
of the Associate Chief Counsel (Financial
Institutions and Products). For further in-
formation regarding this notice, please
contact Mr. Holmes at (202) 317-4137
(not a toll-free number).

## Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

### Notice 2016-25

This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used un-
der § 417(e)(3), and the 24-month average
segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the interest
rate on 30-year Treasury securities under
§ 417(e)(3)(A)(ii)(II) as in effect for plan
years beginning before 2008 and the 30-
year Treasury weighted average rate un-
der § 431(c)(6)(E)(ii)(I).

### YIELD CURVE AND SEGMENT RATES

Generally, except for certain plans un-
der sections 104 and 105 of the Pension
Protection Act of 2006 and CSEC plans

under § 414(y), § 430 of the Code speci-
fies the minimum funding requirements
that apply to single-employer plans pursu-
ant to § 412. Section 430(h)(2) specifies
the interest rates that must be used to
determine a plan's target normal cost
and funding target. Under this provi-
sion, present value is generally deter-
mined using three 24-month average in-
terest rates ("segment rates"), each of
which applies to cash flows during spec-
ified periods. To the extent provided un-
der § 430(h)(2)(C)(iv), these segment
rates are adjusted by the applicable per-
centage of the 25-year average segment
rates for the period ending September 30
of the year preceding the calendar year
in which the plan year begins.1 How-
ever, an election may be made under

§ 430(h)(2)(D)(ii) to use the monthly
yield curve in place of the segment rates.

Notice 2007-81, 2007-44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond seg-
ment rates used to compute the target nor-
mal cost and the funding target. Consis-
tent with the methodology specified in
Notice 2007-81, the monthly corporate
bond yield curve derived from February
2016 data is in Table I at the end of this
notice. The spot first, second, and third
segment rates for the month of February
2016 are, respectively, 1.71, 3.98, and
5.03.

The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the appli-

cable minimum and maximum percent-
ages of the corresponding 25-year average
segment rates. For plan years beginning
before 2018, the applicable minimum per-
centage is 90% and the applicable maxi-
mum percentage is 110%. The 25-year
average segment rates for plan years be-
ginning in 2014, 2015, and 2016 were
published in Notice 2013-58, 2013-40
I.R.B. 294, Notice 2014-50, 2014-40
I.R.B. 590, and Notice 2015-61, 2015-39
I.R.B. 408, respectively.

### 24-MONTH AVERAGE CORPORATE BOND SEGMENT RATES

The three 24-month average corporate
bond segment rates applicable for March
2016 without adjustment for the 25-year
average segment rate limits are as follows:

Applicable Month

First Segment

Second Segment

Third Segment

March 2016

1.46

3.93

4.94

Based on § 430(h)(2)(C)(iv), the 24-
month averages applicable for March

2016 adjusted to be within the applicable
minimum and maximum percentages of

the corresponding 25-year average seg-
ment rates, are as follows:

For Plan Years Beginning In

Adjusted 24-Month Average Segment Rates

Applicable Month

First Segment

Second Segment

Third Segment

2015

March

2016

4.72

6.11

6.81

2016

March

2016

4.43

5.91

6.65

#### 30-YEAR TREASURY SECURITIES INTEREST RATES

Generally for plan years beginning af-
ter 2007, § 431 specifies the minimum
funding requirements that apply to mul-
tiemployer plans pursuant to § 412. Sec-
tion 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation de-
scribed in § 431(c)(6)(A), based on the
plan's current liability. Section
431(c)(6)(E)(ii)(I) provides that the inter-
est rate used to calculate current liability

for this purpose must be no more than 5
percent above and no more than 10 per-
cent below the weighted average of the
rates of interest on 30-year Treasury se-
curities during the four-year period ending
on the last day before the beginning of the
plan year. Notice 88-73, 1988-2 C.B.
383, provides guidelines for determining
the weighted average interest rate. The
rate of interest on 30-year Treasury secu-
rities for February 2016 is 2.62 percent.
The Service determined this rate as the
average of the daily determinations of

yield on the 30-year Treasury bond ma-
turing in November 2045 determined each
day through February 10, 2016 and the
yield on the 30-year Treasury bond ma-
turing in February 2046 determined each
day for the balance of the month. For plan
years beginning in the month shown be-
low, the weighted average of the rates of
interest on 30-year Treasury securities and
the permissible range of rate used to cal-
culate current liability are as follows:

1Pursuant to § 433(h)(3)(A), the 3rd segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).

For Plan Years Beginning in

30-Year Treasury Weighted Average

Permissible Range

Month

Year

90%

105%

March

2016

3.10

2.79

3.25

## MINIMUM PRESENT VALUE SEGMENT RATES

In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates

computed without regard to a 24-month
average. Notice 2007-81 provides guide-
lines for determining the minimum pres-
ent value segment rates. Pursuant to that
notice, the minimum present value seg-

ment rates determined for February 2016
are as follows:

First Segment

Second Segment

Third Segment

1.71

3.98

5.03

## DRAFTING INFORMATION

The principal author of this notice is
Tom Morgan of the Office of the Associ-
ate Chief Counsel (Tax Exempt and Gov-
ernment Entities). However, other person-
nel from the IRS participated in the
development of this guidance. For further
information regarding this notice, contact
Mr. Morgan at 202-317-6700 or Tony
Montanaro at 202-317-8698 (not toll-free
numbers).

# Table I Monthly Yield Curve for February 2016 Derived from February 2016 Data

Maturity

Yield

Maturity

Yield

Maturity

Yield

Maturity

Yield

Maturity

Yield

0.5

0.71

20.5

4.77

40.5

5.06

60.5

5.17

80.5

5.22

1.0

1.09

21.0

4.78

41.0

5.07

61.0

5.17

81.0

5.23

1.5

1.41

21.5

4.79

41.5

5.07

61.5

5.17

81.5

5.23

2.0

1.65

22.0

4.81

42.0

5.07

62.0

5.18

82.0

5.23

2.5

1.82

22.5

4.82

42.5

5.08

62.5

5.18

82.5

5.23

3.0

1.92

23.0

4.83

43.0

5.08

63.0

5.18

83.0

5.23

3.5

2.00

23.5

4.84

43.5

5.08

63.5

5.18

83.5

5.23

4.0

2.08

24.0

4.85

44.0

5.09

64.0

5.18

84.0

5.23

4.5

2.17

24.5

4.86

44.5

5.09

64.5

5.18

84.5

5.23

5.0

2.28

25.0

4.86

45.0

5.09

65.0

5.18

85.0

5.23

5.5

2.40

25.5

4.87

45.5

5.10

65.5

5.19

85.5

5.23

6.0

2.54

26.0

4.88

46.0

5.10

66.0

5.19

86.0

5.23

6.5

2.69

26.5

4.89

46.5

5.10

66.5

5.19

86.5

5.24

7.0

2.84

27.0

4.90

47.0

5.11

67.0

5.19

87.0

5.24

7.5

3.00

27.5

4.91

47.5

5.11

67.5

5.19

87.5

5.24

8.0

3.15

28.0

4.92

48.0

5.11

68.0

5.19

88.0

5.24

8.5

3.30

28.5

4.92

48.5

5.12

68.5

5.20

88.5

5.24

9.0

3.45

29.0

4.93

49.0

5.12

69.0

5.20

89.0

5.24

9.5

3.58

29.5

4.94

49.5

5.12

69.5

5.20

89.5

5.24

10.0

3.71

30.0

4.95

50.0

5.12

70.0

5.20

90.0

5.24

10.5

3.83

30.5

4.95

50.5

5.13

70.5

5.20

90.5

5.24

11.0

3.94

31.0

4.96

51.0

5.13

71.0

5.20

91.0

5.24

11.5

4.04

31.5

4.97

51.5

5.13

71.5

5.20

91.5

5.24

12.0

4.13

32.0

4.97

52.0

5.13

72.0

5.20

92.0

5.24

12.5

4.22

32.5

4.98

52.5

5.14

72.5

5.21

92.5

5.25

13.0

4.29

33.0

4.99

53.0

5.14

73.0

5.21

93.0

5.25

13.5

4.35

33.5

4.99

53.5

5.14

73.5

5.21

93.5

5.25

14.0

4.41

34.0

5.00

54.0

5.14

74.0

5.21

94.0

5.25

14.5

4.46

34.5

5.00

54.5

5.15

74.5

5.21

94.5

5.25

15.0

4.51

35.0

5.01

55.0

5.15

75.0

5.21

95.0

5.25

15.5

4.55

35.5

5.02

55.5

5.15

75.5

5.21

95.5

5.25

16.0

4.58

36.0

5.02

56.0

5.15

76.0

5.21

96.0

5.25

16.5

4.61

36.5

5.03

56.5

5.15

76.5

5.22

96.5

5.25

17.0

4.64

37.0

5.03

57.0

5.16

77.0

5.22

97.0

5.25

17.5

4.66

37.5

5.04

57.5

5.16

77.5

5.22

97.5

5.25

18.0

4.69

38.0

5.04

58.0

5.16

78.0

5.22

98.0

5.25

18.5

4.71

38.5

5.04

58.5

5.16

78.5

5.22

98.5

5.25

19.0

4.72

39.0

5.05

59.0

5.16

79.0

5.22

99.0

5.25

19.5

4.74

39.5

5.05

59.5

5.17

79.5

5.22

99.5

5.26

20.0

4.76

40.0

5.06

60.0

5.17

80.0

5.22

100.0

5.26

## Rev. Proc. 2016-19 SECTION 1. PURPOSE

This revenue procedure describes pro-
cedures for taxpayers and other entities
under the jurisdiction of the Large Busi-
ness and International (LB&I), Small
Business and Self Employed (SB/SE), and
Tax Exempt and Government Entities
(TE/GE) Operating Divisions to submit
issues for consideration under the Internal
Revenue Service's Industry Issue Resolu-
tion (IIR) Program. The objective of the
IIR Program is to identify and resolve
frequently disputed or burdensome tax is-
sues that are common to a significant
number of entities. Resolving issues
through pre-filing guidance rather than
post-filing examination is a goal of the
Internal Revenue Service (IRS) and the
Office of Chief Counsel.

## SECTION 2. BACKGROUND

.01. In Notice 2000-65, 2000-2 C.B.
599, the IRS announced the Industry Issue
Resolution Pilot Program. The objective
of the pilot program was to establish a
procedure to address through pre-filing
guidance rather than post-filing examina-
tion frequently disputed tax issues that are
common to a significant number of large or
mid-size business taxpayers. After evaluat-
ing the success of the pilot program, the IRS
announced in Notice 2002-20, 2002-1
C.B. 732, that the IIR Program would be
made permanent. In addition, Notice
2002-20 expanded the IIR Program to
address issues common to small busi-
nesses, as well as large and mid-size busi-
nesses, and to address opportunities to
reduce burden for all business taxpayers.

.02. Revenue Procedure 2003-36, 2003-1
C.B. 859, superseded Notice 2002-20 and
revised procedures for business taxpayers,
industry associations, and other interested
parties to allow issues to be submitted at
any time for consideration under the IIR
Program. Revenue Procedure 2003-36
limited IIR Program submissions to tax-
payers under the jurisdiction of the LB&I
(formerly Large and Mid-Size Business)
and SB/SE Operating Divisions.

.03. This revenue procedure supersedes
Revenue Procedure 2003-36, 2003-1
C.B. 859. It expands the availability of the
IIR Program to issues with respect to en-

tities under the jurisdiction of the TE/GE
Operating Division, and updates, revises,
and clarifies the procedures.

## SECTION 3. SCOPE

### .01. Issues appropriate for the program.

The types of issues most appropriate
for consideration under the IIR Program
will have two or more of the following
characteristics:

(1) The proper tax treatment of a com-
mon factual situation is uncertain;

(2) The uncertainty results in frequent,
and often repetitive, examinations
of the same issue;

(3) Frequent, and often repetitive, ex-
aminations require significant re-
sources from both the IRS and
impacted entities;

(4) The issue is significant and im-
pacts a large number of entities;

(5) The issue requires extensive fac-
tual development; and

(6) Collaboration would facilitate
proper resolution of the tax issues
by promoting an understanding of
entities' views and business
practices.

### .02. Additional criteria for accountable plans.

Notice 2005-59, 2005-2 C.B. 443,
provides additional criteria for evaluating
proposed IIR Program issues for account-
able plans and is incorporated by refer-
ence into this revenue procedure. With
respect to IIR Program issues for account-
able plans, the criteria set forth in Notice
2005-59 apply in addition to the require-
ments set forth in this revenue procedure.

### .03. Issues not appropriate for the program.

The following types of issues are gen-
erally not appropriate for consideration
under the IIR Program:

(1) Issues unique to one or a small
number of entities;

(2) Issues not under the jurisdiction of
the LB&I, SB/SE, or TE/GE Op-
erating Divisions;

(3) Issues involving transactions that
lack a bona fide business purpose, or
transactions with a significant pur-

pose of improperly reducing or
avoiding federal taxes; and

(4) Issues involving transfer pricing or
international tax treaties.

.04. Requesters.

In general, a requester should be an
organization or a group of entities that
represents a significant number and cross
section of the entities with the particular
tax issue or issues. For example, a retail
industry group that represents large, na-
tionwide retailers as well as independent
retailers might request pre-filing guidance
through the IIR Program on a section
263(a) capitalization issue common to all
member retailers.

#### SECTION 4. SELECTION PROCESS

.01. A requester may submit an IIR
Program request at any time during the
calendar year.

.02. An IRS representative will notify
the requester when the IRS decides to
select or reject an IIR Program request.

.03. The IRS will make public, at least
annually, all IIR Program requests re-
ceived and those selected. The announce-
ment will include the name of an IRS
official to contact for information regard-
ing the selected IIR Program requests.

##### SECTION 5. GUIDANCE FOR SELECTED IIR PROGRAM REQUESTS

Selected IIR Program requests may re-
sult in published guidance, such as a reg-
ulation, revenue ruling, revenue proce-
dure, or notice. Alternatively, selected
requests may result in new or revised ad-
ministrative procedures such as an LB&I
Operating Division directive or a revision
to an Internal Revenue Manual provision.
In some situations, the guidance may re-
quire taxpayers to file a request for a
change in method of accounting before
changing the manner in which they treat
an issue.

##### SECTION 6. ADDITIONAL INFORMATION ABOUT THE IIR PROGRAM

.01. IIR team.

If an IIR Program request is selected,
the IRS will establish a team (IIR team) to

analyze the issues and develop the appro-
priate guidance. IIR team members will
include appropriate personnel from the re-
quester and from the IRS. IRS team mem-
bers may be drawn from the LB&I, SB/
SE, or TE/GE Operating Divisions, as
well as Appeals, the Office of Chief Coun-
sel, and the Treasury Department. An is-
sue may not be selected for the IIR Pro-
gram if the requester does not provide
appropriate personnel to participate as IIR
team members.

###### .02. Expectations regarding information and meetings.

Consideration of an IIR Program re-
quest is intended to be a collaborative
effort that fosters constructive dialogue in
an attempt to address issues in a manner
that enhances good tax administration.
This collaboration requires open and
transparent discussion of the concerns and
goals of all IIR team members. Resolution
of an IIR Program request will require
multiple and timely exchanges of infor-
mation, which may include books and re-
cords of specific taxpayers, and meetings.
However, because these activities are not
undertaken for the purpose of examination
or inspection within the meaning of sec-
tion 7605(b), information provided in the
context of the IIR Program will not con-
stitute information furnished as part of an
examination or inspection within the
meaning of section 7605(b).

###### .03. Disclosure of information.

IIR Program requests and any addi-
tional information provided by a requestor
in connection with a request are subject to
the Freedom of Information Act. All sub-
missions under the IIR Program will be
made available for public inspection and
copying. Submissions, therefore, should
not include confidential or taxpayer spe-
cific information that is not intended to be
disclosed.

## SECTION 7. SUBMITTING IIR REQUESTS

### .01. No required format.

An IIR Program request is not required
to be submitted in a particular format. The
submission should, however, include an
issue statement, a description of why the

issue is appropriate for the IIR Program,
an explanation of the need for guidance,
an estimate of the number of entities af-
fected by the issue, a description of how
the requester relates to those entities, and
the name and telephone number of an
individual to contact if additional infor-
mation is needed. The submission may
also include a recommendation as to how
the issue may be resolved.

### .02. Where to submit IIR requests.

Interested parties should submit IIR re-
quests by e-mail to IIR@IRS.GOV.

# SECTION 8. EFFECT ON OTHER DOCUMENTS

This revenue procedure supersedes Rev.
Proc. 2003-36.

# SECTION 9. EFFECTIVE DATE

This revenue procedure is effective
April 25, 2016.

# SECTION 10. 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 in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number 1545-
1837.

An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information displays
a valid OMB control number.

The collections of information in this
revenue procedure are in Sections 6 and 7.
This information is required to submit a
request for the IRS to consider an issue
under the IIR Program and to consider an
issue that has been selected for resolution
under the IIR Program. This information
will be used to enable the IRS to deter-
mine whether the issue is suitable for res-
olution under the IIR Program and for
resolution of selected issues. The collec-
tions of information are voluntary to ob-
tain a benefit. The likely respondents are
business or other for-profit institutions,
exempt organizations, employee plans,
and government entities.

The estimated total annual reporting
burden is 2,000 hours.

The estimated annual burden per re-
spondent varies from 4 hours to 200
hours, depending on individual circum-
stances, with an estimated average of 40
hours. The estimated number of respon-
dents is 50.

The estimated annual frequency of re-
sponses is on occasion.

Books or records relating to a collec-
tion of information must be retained as
long as the content may become material
in the administration of any internal rev-
enue law. Generally tax returns and tax
return information are confidential, as re-
quired by 26 U.S.C. 6103.

# SECTION 11. CONTACT INFORMATION

The principal author of this revenue
procedure is Sarah McLemore of the Of-
fice of Associate Chief Counsel (Proce-
dure and Administration). Ms. McLemore
may be contacted at 202-317-6844 (not a
toll free number). For information regard-
ing the IIR Program, please contact the
IIR Senior Program Analyst by email at
IIR@IRS.GOV. Questions will be routed
to the appropriate Operating Division for
response.

Note. This revenue procedure will be reproduced as the next revision of IRS Publication 1223, General Rules and Specifications for
Substitute Forms W-2c and W-3c.

26 CFR 601.602: Tax forms and instructions.
(Also Part I, Sections 6041, 6051, 6071, 6081, 6091; 1.6041-1, 1.6041-2, 31.6051-1, 31.6051-2, 31.6071(a)-1, 31.6081(a)-1, 31.6091-1.)

Rev. Proc. 2016-20

TABLE OF CONTENTS Part 1 - SUBSTITUTE FORMS W-2c AND W-3c

Section 1.1 - Purpose

499

Section 1.2 - What's New

501

Section 1.3 - Filing Forms W-2c and W-3c Electronically

501

Section 1.4 - Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA

502

Section 1.5 - Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA

504

Section 1.6 - Requirements for Substitute Privately-Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees

506

Section 1.7 - Instructions for Employers

507

Section 1.8 - OMB Requirements for Both Red-Ink and Black-and-White Copy A and W-3c Substitute Forms

508

Section 1.9 - Order Forms and Instructions

508

Section 1.10 - Effect on Other Documents

509

Section 1.11 - Exhibits

509

# Section 1.1 - Purpose

.01 The purpose of this revenue procedure is to state the requirements of the Internal Revenue
Service (IRS) and the Social Security Administration (SSA) regarding the preparation and use of
substitute forms for Form W-2c, Corrected Wage and Tax Statement, and Form W-3c, Trans-
mittal of Corrected Wage and Tax Statements.

.02 The official IRS Form W-2c is a six-part form and the official IRS Form W-3c is a one-part
form. Red-ink substitute forms that completely conform to the specifications contained in this
document may be privately printed without the prior approval of the IRS or the SSA. Only the
substitute black-and-white Form (Copy A) and substitute black-and-white W-3c forms need to be
submitted to the SSA for approval.

Note. Both paper substitute forms filed with the SSA, and those furnished to employees, that do
not totally conform to these specifications are not acceptable. Forms W-2c (Copy A) and Forms
W-3c that do not conform may be returned. In addition, penalties may be assessed by the IRS.

.03 Substitute red-ink forms should not be submitted to either the IRS or the SSA for specific
approval. If you are uncertain of any specification and want clarification, do the following.

1\. Submit a letter to the appropriate address below citing the specification.

2\. State your understanding of the specification; enclose an example.

3\. Be sure to include your name, complete address, phone number, and, if applicable, your email
address with your correspondence.

.04 Any questions about the red-ink Form W-2c (Copy A) and Form W-3c, should be emailed
to substituteforms@irs.gov. Please enter "Substitute Forms" on the subject line. Or send your
questions to:

Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP
5000 Ellin Road, C6-440
Lanham, MD 20706

Any questions about the substitute black-and-white Form W-2c (Copy A) and W-3c should be
emailed to copy.a.forms@ssa.gov or sent to:

Social Security Administration
Direct Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997

Do not mail completed Forms W-2c (Copy A) to the Substitute Black-and-White Copy A Forms
address. Submitters should use the address shown on the Form W-3c.

Note. You should receive a response from either the IRS or the SSA within 30 days.

.05 Some Forms W-2c that include logos, slogans, and advertisements (including advertisements
for tax preparation software) may be confused with questionable Forms W-2c. An employee may
not recognize the importance of the employee copy for tax reporting purposes due to the use of
logos, slogans, and advertisements. Thus, the IRS has determined that logos, slogans, and
advertising will not be allowed on Copy A of Forms W-2c, Forms W-3c, or any employee copies
reporting wages paid during the 2014 calendar year, and thereafter, with the following exceptions
for the employee copies:

· Forms may include the exact name of the employer or agent, primary trade name, trademark,
service mark, or symbol of the employer or agent.

· Presentation may be in any typeface, font, stylized fashion, or print color normally used by the
employer or agent; and used in a non-intrusive manner.

· These items do not materially interfere with the ability of the recipient to recognize, understand, and
use the tax information on the employee copies.

· Corrected information on information returns and employee copies that was shown on Forms W-2c
for amounts paid before January 1, 2014.

The IRS e-file logo on the IRS official employee copies may be included, but it is not required,
on any of the substitute form copies.

The information return and employee copies must clearly identify the employer's name associated
with its employer identification number.

Forms W-2c and W-3c are subject to annual review and possible change. If you have comments
about the prohibition against including slogans, advertising, and logos on information returns and
employee copies, email or send your comments to: substituteforms@irs.gov or Internal Revenue
Service, Attn: Substitute Forms Program, SE:W:CAR:MP:P:TP, 5000 Ellin Road, C6-440,
Lanham, MD 20706.

.06 The Internal Revenue Service/Information Returns Branch (IRS/IRB) maintains a centralized
customer service call site to answer questions related to information returns (Forms W-2, W-3,
W-2c, W-3c, 1099 series, 1096, etc.). You can call at 1-866-455-7438 (toll-free) or 304-263-
8700 (not a toll-free number). The Telecommunication Device for the Deaf (TDD) number is
304-579-4827 (not a toll-free number). You may also send questions via email at mccirp@irs.gov.

IRS/IRB does not process information returns which are filed on paper forms. IRS/IRB does not
process Forms W-2c (Copy A). Forms W-2c (Copy A) prepared on paper or electronically must
be filed with the SSA.

Do not submit employee information via email, because electronic mail may not be secure and
the employee's information may be compromised.

.07 The following form instructions and publications provide more detailed filing procedures for
certain information returns.

. General Instructions for Forms W-2 and W-3 (Including Forms W-2AS, W-2cM, W-2GU,
W-2VI, W-3SS, W-2c, and W-3c).

· Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.

# Section 1.2 - What's New

.01 The following changes have been made to Publication 1223. The major changes include the
following.

· Form W-3c-Kind of Payer. The far right box in the top row of boxes was changed to "944."

· Form W-3c-Bold font. The text in the box under box d changed to bold font.

· Form W-3c-Box h. The text in box h was changed to "Employer's originally reported Federal
EIN."

· Form W-3c-W-2c Online. Under E-filing, "W-2 Online" was changed to "W-2c Online."

. SSA address change. Inquiries about the substitute black-and-white Form W-2c Copy A and
substitute black-and-white Form W-3c, should be sent to the SSA at: Social Security Administra-
tion Direct Operations Center, Attn: Substitute Black-and-White Copy A Forms, Room 341, 1150
E. Mountain Drive, Wilkes-Barre, PA 18702-7997.

· Editorial changes. We made editorial changes. Redundancies were eliminated as much as
possible.

# Section 1.3 - Filing Forms W-2c and W-3c Electronically

.01 Employers must file electronically with the SSA if they file 250 or more Forms W-2c (Copy
A) during a calendar year unless the IRS granted you a waiver. For details, see the General
Instructions for Forms W-2 and W-3 (Including Forms W-2AS, W-2cM, W-2GU, W-2VI,
W-3SS, W-2c, and W-3c). SSA publication EFW2C, Specifications for Filing Forms W-2c
Electronically, contains specifications and procedures for filing Forms W-2c. Employers are
cautioned to obtain the most recent revision of EFW2C (and supplements) due to any subsequent
changes in specifications and procedures.

Note. For purposes of the electronic filing requirement, the 250 form threshold applies separately
to both original and corrected forms. For example, if an employer files 800 Forms W-2 and later
files 70 Forms W-2c, the Forms W-2c may be filed on paper since they fall under the 250
threshold.

.02 You may obtain a copy of the EFW2C by:

· Accessing the SSA website at www.socialsecurity.gov/employer.

.03 Electronic filers do not file a paper Form W-3c. SSA creates this for you when Forms W-2c
are submitted electronically. See the SSA publication EFW2 for guidance on transmitting Form
W-2c (Copy A) information to the SSA electronically.

.04 Employers with fewer than 250 Forms W-2 to be corrected are encouraged to electronically
file Forms W-2c (Copy A) with the SSA. Doing so will enhance the timeliness and accuracy of
forms processing.

.05 Employers who do not comply with the electronic filing requirements for Form W-2c (Copy
A) and who are not granted a waiver by the IRS may be subject to penalties. Employers who file
Form W-2c information with the SSA electronically must not send the same data to the SSA on
paper Forms W-2c (Copy A). Any duplicate reporting may subject filers to unnecessary contacts
by the SSA or the IRS.

## Section 1.4-Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA

.01 The official IRS-printed red dropout ink Form W-2c (Copy A) and W-3c and their exact
substitutes are referred to as red-ink in this revenue procedure. Employers may file substitute
Forms W-2c (Copy A) and W-3c with the SSA. The substitute forms must be exact replicas of
the official IRS forms with respect to layout and content because they will be read by scanner
equipment. Even the slightest deviation can result in incorrect scanning, and may affect money
amounts reported for employees.

.02 Color and paper quality for Form W-2c (Copy A) (cut sheets and continuous pin-fed forms)
and Form W-3c, as specified by JCP Code 0-25 dated November 29, 1978, must be white 100%
bleached chemical wood, optical character recognition (OCR) bond. The contractor must initiate
or have a quality control program to assure OCR ink density.

Acidity: Ph value, average, not less than

4.5

Basis weight: 17 x 22 inches 500 cut sheets, pound

18-20

Metric equivalent-gm./sq. meter (a tolerance of +5 pct. is allowed)

68-75

Stiffness: Average, each direction, not less than-milligrams Cross direction Machine direction

50-80

Tearing strength: Average, each direction, not less than-grams

Opacity: Average, not less than-percent

Reflectivity: Average, not less than-percent

Thickness: Average-inch

0.0038

Metric equivalent-mm. (a tolerance of +0.0005 inch (0.0127 mm) is allowed) Paper cannot vary more than 0.0004 inch (0.0102 mm) from one edge to the other

0.097

Porosity: Average, not less than-seconds

Finish (smoothness): Average, each side-seconds

20-55

(For information only) the Sheffield equivalent-units

170-d200

Dirt: Average, each side, not to exceed-parts per million

Note. Reclaimed fiber in any percentage is permitted, provided the requirements of this standard
are met.

.03 All printing of substitute Forms W-2c (Copy A) and W-3c must be in Flint red OCR dropout
ink except as specified below. The following must be printed in nonreflective black ink:

· Identifying number "44444" or "55555" at the top of the forms.

· The four (4) corner register marks on the forms.

· The form identification number ("W-3c") at the bottom of Form W-3c.

. All the instructions below Form W-3c beginning with "Purpose of Form" to the end of Form
W-3c.

.04 The vertical and horizontal spacing on Forms W-2c and W-3c must meet specifications. See
Exhibits A and B.

· On Form W-3c and Form W-2c (Copy A), all the perimeter rules must be 1-point (0.014-inch),
while all other rules must be one-half point (0.007-inch). Vertical rules must be parallel to the left
edge of the form; horizontal rules parallel to the top edge.

. The left and top margins on Form W-2c (Copy A) and Form W-3c must be 0.50 inches. The width
of a substitute Form W-2c (Copy A) or W-3c must be 7.50 inches. See Exhibits A and B.

. The first three columns on Form W-2c (Copy A) and Form W-3c must measure 1.90 inches in
width.

. The last column on Form W-2c (Copy A) and Form W-3c must measure 1.80 inches in width.

.05 The official red-ink Form W-3c and Form W-2c (Copy A) are 7.50 inches wide. Employers
filing Forms W-2c (Copy A) with the SSA on paper must also file a Form W-3c. One Form W-2c
(Copy A) or Form W-3c is contained on a standard-size, 8.5 x 11-inch page.

.06 The top, left, and right margins for the Form W-2c (Copy A) and Form W-3c are 0.50 inches
(1/2 inch). All margins must be free of printing except for the words "DO NOT CUT, FOLD, OR
STAPLE THIS FORM" on red-ink Form W-2c (Copy A) and on red-ink Form W-3c.

.07 The identifying numbers are "44444" for Form W-2c and "55555" for Form W-3c. No
printing should appear anywhere near the identifying numbers.

Note. The identifying number must be printed in nonreflective black ink in OCR-A font of 10
characters per inch.

.08 Continuous pin-fed Forms W-2c (Copy A) must be separated into 11-inch deep pages. The
pin-fed strips must be removed when Forms W-2c (Copy A) are filed with the SSA.

.09 Box 12 of Form W-2c (Copy A) contains four entry boxes-12a, 12b, 12c, and 12d. Do not
make more than one entry per box. Enter your first code in box 12a (for example, enter Code D
in box 12a, not 12d, if it is your first entry). If more than four items need to be reported in box
12, use a second Form W-2c to report the additional items. Do not report the same federal tax data
to the SSA on more than one Form W-2c (Copy A). However, repeat the identifying information
(employee's name, address, and SSN; employer's name, address, and EIN) on each additional
form.

.10 The checkboxes in box 13 of Form W-2c (Copy A) must be 0.14 inches each; there must be
0.20 inches to the first checkbox each; the space between the first checkbox and second checkbox
should be 0.36 inches each; the space between the second and third checkboxes should be 0.44
inches each; and the space between the third checkbox to the margin of box 13 should be 0.48
inches. The checkboxes in box c of Form W-3c must also be 0.14 inches.

Note. More than 50% of an applicable checkbox must be covered by an "X."
☒

.11 All substitute Forms W-2c (Copy A) and W-3c in the red-ink format must have the form
number and form title printed on the bottom face of each form using type identical or a close
approximation to that of the official IRS form. The red-ink substitute must have the form
producer's (not the form filer's) EIN entered in red in place of the Cat. No. (directly to the left
of "Department of the Treasury" on Form W-2c (Copy A) and at the bottom on Form W-3c).

.12 The words "For Privacy Act and Paperwork Reduction Act Notice, see separate instructions."
must be printed on all Forms W-2c (Copy A) and Forms W-3c.

.13 The Office of Management and Budget (OMB) Number must be printed on substitute Forms
W-3c and W-2c (Copy A) (on each ply) in the same location as on the official IRS forms.

.14 All substitute Forms W-3c must include the instructions that are printed on the same sheet
below the official IRS form.

.15 The appropriate SSA addresses must be printed on the front of Form W-3c below the body
of the form.

If you use the U.S. Postal Service, the address is:

Social Security Administration
Direct Operations Center
P.O. Box 3333
Wilkes-Barre, PA 18767-3333

If you use a carrier other than the U.S. Postal Service, the address is:

Social Security Administration
Direct Operations Center
Attn: W-2c Process
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997

.16 The back of substitute Form W-2c (Copy A) and Form W-3c must be free of all printing.

.17 All copies must be clearly legible. Fading must be minimized to assure legibility.

.18 Chemical transfer paper is permitted for Form W-2c (Copy A) only if the following standards
are met:

· Only chemically-backed paper is acceptable for Form W-2c (Copy A). Front and back chemically-
treated paper cannot be processed properly by scanning equipment.

· Chemically-transferred images must be black.

· Carbon-coated forms are not permitted.

.19 The Government Printing Office (GPO) symbol and the Catalog Number (Cat. No.) must be
deleted from substitute Form W-2c (Copy A) and Form W-3c.

.20 The sequence for assembling the copies of Form W-2c is as follows.

· Copy A-For Social Security Administration

· Copy 1-State, City, or Local Tax Department

· Copy B-To Be Filed with Employee's FEDERAL Tax Return

· Copy C-For EMPLOYEE's RECORDS

· Copy 2-To Be Filed with Employee's State, City, or Local Income Tax Return

· Copy D-For Employer

## Section 1.5-Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA

.01 The SSA-approved substitute black-and-white Forms W-2c (Copy A) and W-3c are referred
to as substitute black-and-white Form W-2c (Copy A) and W-3c. Specifications for the substitute
black-and-white Form W-2c (Copy A) and W-3c are similar to the red-ink forms (Section 4)
except for the items that follow (see Exhibits C and D). You may contact the SSA via email at
copy.a.forms@ssa.gov for more information.

Note. Exhibits are samples only and must not be downloaded to meet tax obligations.

1\. Forms must be printed on 8.5 x 11-inch single-sheet paper only, not on continuous pin-fed paper.
There must be one Form W-2c (Copy A) or W-3c printed on a page.

2\. All forms and data must be printed in nonreflective black ink only.

3\. The data and forms must be programmed to print simultaneously. Forms cannot be produced
separately from wage data entries.

4\. The forms must not contain corner register marks.

5\. The forms must not contain any shaded areas including those boxes that are entirely shaded on the
red-ink forms.

6\. Identifying numbers on both Form W-2c (Copy A) ("44444'') and Form W-3c ("55555") must
be preprinted in 14-point Arial bold font or a close approximation.

7\. The form numbers ("W-2c" and "W-3c") must be in 18-point Arial font or a close approxima-
tion.

8\. No part of the box titles or the data printed on the forms may touch any of the vertical or
horizontal lines, nor should any of the data intermingle with the box titles. The data should be
centered in the boxes.

9\. Do not print any information in the margins of the black-and-white forms (for example, do not
print "DO NOT CUT, FOLD, OR STAPLE" in the top margin of Form W-3c).

10\. The word "Code" must not appear in box 12 on Form W-2c (Copy A).

11\. A 4-digit vendor code (not filer code) preceded by four zeros and a slash (for example,
0000/9876) must appear in 12-point Arial font, or a close approximation, in place of the Cat. No.
to the left of "Department of the Treasury" on Form W-2c (Copy A) and in the bottom right
corner of Form W-3c.

Note. Do not display the form producer's EIN. The vendor code will be used to identify the
form producer.

12\. Do not print Catalog Numbers (Cat. No.) on either Form W-2c (Copy A) or Form W-3c.

13\. Do not print dollar signs. If there are no money amounts being reported, the entire field should
be left blank.

.02 The dimensions for the substitute black-and-white Forms W-2c (Copy A) and W-3c are as
follows. See Exhibits C and D.

1\. The left and top margins on Form W-2c (Copy A) and Form W-3c must measure 1/2 (0.50) inch.

2\. The distance from the top line of Form W-3c to the bottom line of the form must measure 73/16
(7.19) inches.

3\. The distance from the top line of Form W-2c (Copy A) to the bottom line of the form must
measure 91/3 (9.33) inches.

4\. Each box on Form W-2c (Copy A) and Form W-3c must measure 1/3 (0.33) inch in height.

5\. Box b on Form W-3c must measure one (1.00) inch in height.

6\. Box a on Form W-2c (Copy A) must measure 11/3 (1.33) inches in height and box 14 must measure
5% (0.83) inch in height.

7\. The first three columns on the right of Form W-2c (Copy A) and Form W-3c must measure 19/10
(1.90) inches in width.

8\. The last column on the right of Form W-2c (Copy A) and Form W-3c must measure 18/10 (1.80)
inches in width.

9\. The "Explain decreases here" box must measure 1/3 (0.33) inch and the "Signature" box on Form
W-3c must measure 1/2 (0.50) inch in height.

.03 You must submit samples of your black-and-white substitute forms to the SSA. Only
black-and-white substitute Forms W-2c (Copy A) and W-3c will be accepted for approval by the
SSA. Questions regarding other forms (that is, red-ink Forms W-2, W-2c, W-3, W-3c, 1099
series, 1096, etc.) must be directed to the IRS. Also, see IRS Publications 1141 and 1179.

.04 You will be required to send one set of blank and one set of dummy-data substitute
black-and-white Form W-2c (Copy A) and W-3c for approval. Sample data entries should be
filled in to the maximum length for each box entry, preferably using numeric data or alpha data,
depending upon the type required to be entered. Include in your submission the name, telephone
number, fax number, and email address of a contact person who can answer questions regarding
your sample forms.

.05 To receive approval, you may first contact the SSA at copy.a.forms@ssa.gov to obtain a
template and further instructions in PDF format. Do not mail completed Forms W-2c (Copy A)
and W-3c to the Substitute Black-and-White Forms (Copy A) address. Submitters should use the
address shown on the Form W-3c. You may also send your sample substitute black-and-white
forms to:

Social Security Administration
Direct Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997

Send your sample forms via private mail carrier or certified mail in order to verify their receipt.
You may send your sample forms via electronic mail to copy.a.forms@ssa.gov.

.06 The 4-digit vendor code preceded by four zeros and a slash (0000/9876) must be preprinted
on the sample black-and-white substitute forms. Forms not containing a vendor code will be
rejected and will not be submitted for testing or approval. If you have a valid vendor code
provided to you through the National Association of Computerized Tax Processors, you should
use that code. If you do not have a valid vendor code, contact the SSA at copy.a.forms@ssa.gov
to obtain an SSA-issued code. (Additional information on vendor codes may be obtained from the
SSA or the National Association of Computerized Tax Processors via email at http://nactp.org/.

Note. Vendor codes are only required by those companies producing the W-2 family of forms as
part of a product for resale to be used by multiple employers and payroll professionals. Employers
developing Forms W-2c or W-3c to be used only for their individual company do not require a
vendor code.

.07 If you use forms produced by a vendor and have questions concerning approval, do not
send the forms to the SSA for approval. Instead, you may contact the software vendor to obtain
a copy of SSA's dated approval notice supplied to that vendor.

### Section 1.6-Requirements for Substitute Privately-Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees

.01 All employers (including those who file electronically) must furnish employees with at least
two copies of Form W-2c (three or more for employees required to file a state, city, or local
income tax return). Employee copies do not require approval as long as these requirements are
followed.

Note. Although substitute Copy 1 of Form W-2c can be printed in black instead of the red
dropout ink, it should conform as closely as possible to Copy A of the official IRS form in
content, format, and layout in order to satisfy state and local reporting requirements.

.02 Chemical transfer paper for employee copies must be clearly legible, have the capability to
be photocopied, and not fade to such a degree as to preclude legibility and the ability to
photocopy.

.03 The paper for all copies must be white and printed in black ink. The substitute Copy B (or its
equal), which employees are instructed to attach to their federal income tax returns, as well as all
other copies furnished to employees, must be 17 x 22 inches - 500 cut sheets, as described in
Section 1.4.02. Additional information on trim size and margins can also be found in this section.

.04 Type must be substantially identical in size and shape to that on the official form.

.05 Substitute forms for employees need to contain only the payment boxes and captions that are
applicable. These boxes, box numbers, and box titles must, when applicable, match the IRS-
printed form. In all cases, the employee name, address, and SSN, as well as the employer name,
address, and EIN, must be present.

.06 The dimensions of the boxes on these copies (Copies B, C, and 2), but not Copy A, may be
adjusted to allow space for conveying additional information. This may permit the employer to
eliminate other statements or notices that would otherwise be furnished to employees.

.07 The maximum allowable dimensions for employee copies of Form W-2c are no more than
11.00 inches deep by 8.50 inches wide. The minimum allowable dimensions for employee copies
of Form W-2c are 2.67 inches deep by 4.25 inches wide.

Note. These maximum and minimum size specifications are subject to future change.

.08 Either horizontal or vertical format is permitted for substitute employee copies of Forms
W-2c. That is, the width of the form may be either greater or less than the depth of the form.

.09 All copies of Form W-2c must clearly and prominently display the form number and the form
title together in one area of the form. It is recommended (but not required) that this be located on
the bottom left of Form W-2c. The reference to the "Department of the Treasury-Internal
Revenue Service" must be on all copies of Form W-2c. It is recommended (but not required) that
this be located on the bottom right of Form W-2c.

.10 If the substitute Forms W-2c are not labeled as to the disposition of the copies, then written
notification must be provided to each employee as specified below.

· The first copy of Form W-2c (Copy B) is filed with the employee's federal tax return.

. The second copy of Form W-2c (Copy C) is for the employee's records.

· If applicable, the third copy (Copy 2) of Form W-2c is filed with the employee's state, city,
or local income tax return.

If the substitute Forms W-2c are labeled, the forms must contain the applicable description as
stated on the official form.

.11 Instructions similar to those on the back of Form W-2c (Copy C) of the official form must
be provided to each employee.

# Section 1.7-Instructions for Employers

.01 Privately-printed substitute Forms W-2c are not required to contain a copy to be retained by
employers (Copy D). However, employers must retain copies of the Forms W-2c (Copy A) filed
with SSA or have the ability to reconstruct the data for at least four years. Employers must be able
to generate a facsimile of Form W-2c (Copy A), in case of loss.

.02 If Copy D is provided for the employer, instructions contained on the back of Copy D of the
official form must appear on the back of the substitute form. If Copy D is not provided, these
instructions must be furnished to the employer on a separate statement.

.03 Only originals or compliant substitute copies of Forms W-2c (Copy A) and Forms W-3c may
be filed with the SSA. Carbon copies and photocopies are unacceptable.

.04 Employers should type or machine print entries on non-laser generated forms whenever
possible and provide good quality data entries by using a high quality type face, inserting data in
the middle of blocks that are well separated from other printing and guidelines, and taking any
other measures that will guarantee clear, sharp images.

.05 Because employers must file a machine-scannable Form W-2c, they should meet the
following requirements.

· Use 12-point Arial font or a close approximation for data entries.

· Proportional-spaced fonts are unacceptable.

. Do not print any data in the top margin of the forms.

.06 The employer must also furnish payee copies of Forms W-2c (Copies B, C, and 2) that are
legible and capable of being photocopied (by the employee).

.07 When Forms W-2c or W-3c are typed, black ink must be used with no script type, inverted
font, italics, or dual-case alpha characters.

.08 Forms W-2c (Copy A) require decimal entries for wage data. Do not print dollar signs with
money amounts on Forms W-2c (Copy A) and Form W-3c.

.09 The filer's employer identification number (EIN) must be entered in box (b) of Form W-2c
and box (e) of Form W-3c.

.10 The employer's name, address, EIN, and state ID number may be preprinted.

## Section 1.8-OMB Requirements for Both Red-Ink and Black-and-White Copy A and W-3c Substitute Forms

.01 The Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires the following.

· The Office of Management and Budget (OMB) approves all IRS tax forms that are subject to the
Act.

· Each IRS form contains (in or near the upper right corner) the OMB approval number, if assigned.
(The official OMB numbers may be found on the official IRS printed forms and are also shown on
the forms in the exhibits.)

· Each IRS form (or its instructions) states:

1\. Why the IRS needs the information,

2\. How it will be used, and

3\. Whether or not the information is required to be furnished to the IRS.

.02 This information must be provided to any users of official or substitute IRS forms or
instructions.

.03 The OMB requirements for substitute IRS Form W-2c (Copy A) and Form W-3c are the
following.

· Any substitute form or substitute statement to a recipient must show the OMB number as it appears
on the official IRS form.

· For Form W-3c and Form W-2c (Copy A), the OMB number (1545-0008) must appear exactly as
shown on the official IRS form.

. For any copy of Form W-3c or Form W-2c, other than Copy A, the OMB number must use one
of the following formats.

1\. OMB No. 1545-xxxx (preferred) or

2\. OMB # 1545-xxxx (acceptable).

.04 Any substitute Form W-3c and Form W-2c (Copy A only) must state "For Privacy Act and
Paperwork Reduction Act Notice, see separate instructions." If no instructions are provided to
users of your forms, you must furnish them the exact text of the Privacy Act and Paperwork
Reduction Act Notice.

## Section 1.9-Order Forms and Instructions

.01 You can order official IRS Forms W-2c, Forms W-3c, and the General Instructions for Forms
W-2 and W-3 (Including Forms W-2AS, W-2cM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c),
online at IRS.gov. Click on the Forms and Pubs link and then follow the Order Forms and Pubs
link, or go to www.IRS.gov/businesses and then click the Online Ordering for Information Returns
and Employer Returns link.

Only contact the IRS, not the SSA, for forms.

.02 Copies of Form W-2c (Copy A) and Form W-3c downloaded from IRS.gov cannot be
used for filing with the SSA. These copies of Forms W-2c and W-3c are for information
purposes only.

# Section 1.10-Effect on Other Documents

.01 Revenue Procedure 2014-56, 2014-45 I.R.B. (reprinted as Publication1223, Rev. 11-2014),
is superseded.

# Section 1.11-Exhibits

Exhibit A - Form W-2c (Copy A) (Red-Ink) 08-2014

Exhibit B - Form W-3c (Red-Ink) 11-2015

Exhibit C - Form W-2c (Copy A) (Substitute Laser/Black-and-White)
08-2014

Exhibit D - Form W-3c (Substitute Laser/Black-and-White) 11-2015

Exhibit A
Form W-2c
(Copy A)
Red-Ink

0.50 in

7.50 in

# DO NOT CUT, FOLD, OR STAPLE THIS FORM

0.50 in

44444

For Official Use Only OMB No. 1545-0008

a Employer's name, address, and ZIP code

c Tax year/Form corrected / W-2

d Employee's correct SSN

1.33 in

e Corrected SSN and/or name g if incorrect on form previously

(Check this box and complete boxes f and/or filed.) ☐

Complete boxes f and/or g only if

incorrect on form previously filed

f Employee's previously reported

SSN 3.70 in

b Employer's Federal EIN

g Employee's previously reported

name

h Employee's first name and initial

Last name

Suff.

Note. Only complete money fields that are being corrected (exception: for corrections involving MQGE, see the General Instructions for Forms W-2 and W-3, under Specific Instructions for Form W-2c, boxes 5 and 6).

i Employee's address and ZIP cod

Previously reported

Correct information

Previously reported

Correct information

1 Wages, tips, other compensation

2 Federal income tax withheld

3 Social security wages

4 Social security tax withheld

5 Medicare wages and tips

6 Medicare tax withheld

7 Social security tips

8 Allocated tips

10 Dependent care benefits

11 Nonqualified plans

12a See instructions for box 12

13 Statutory Retirement Third-party employee plan sick pay ☐ ☐ ☐

12b 9.33

12b

14 Other (see instructions)

14 Other (see instructions) 0.14 in

12c

0.83 in 1.90 in

12d E

12d 8

1.90 in

1.90 in a

1.80 in S

# State Correction Information

Previously reported

Correct information

Previously reported

Correct information

15 State

Employer's state ID number

16 State wages, tips, etc.

17 State income tax

Locality Correction Information

Previously reported

Correct information

Previously reported

Correct information

18 Local wages, tips, etc.

19 9 Local income tax

19 Local income tax

9 Local income tax

19 9 Local income tax

20 Locality name

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Copy A-For Social Security Administration

Form W-2c (Rev. 8-2014)

Corrected Wage and Tax Statement

Cat. No. 61437D

Department of the Treasury
Internal Revenue Service

Exhibit B
Form W-3c
Red-Ink

55555

a Tax year/Form corrected /W-

For Official Use Only OMB No. 1545-0008

b Employer's name, address, and ZIP code Î 1.00 in

c Kind of Payer (Check one) 941/941-SS Military 943 944

Vone apply Kind of Employer (Check one) 501 c non-govt. ☐ ☐ State/local

Third-party sick pay

☐

☐ ☐ ☐ Hshld. Medicare

☐ (Check if

3.18 in

CT-1

emp. govt. emp. ☐ ☐

on-501c

State/local 501c

Federal govt.

applicable)

☐

d Number of Forms W-2c

e Employer's Federal EIN

f Establishment number

g Employer's state ID number

Complete boxes h, i, or j only if incorrect on last form filed.

h Employer's originally reported Federal EIN

i Incorrect establishment numbe

j Employer's incorrect state ID number

Total of amounts previously reported as shown on enclosed Forms W-2c.

Total of corrected amounts as shown on enclosed Forms W-2c.

Total of amounts previously reported as shown on enclosed Forms W-2c.

Total of corrected amounts as shown on enclosed Forms W-2c.

1 Wages, tips, other compensation

2 Federal income tax withheld

3 Social security wages

4 Social security tax withheld

5 Medicare wages and tips

6 Medicare tax withheld

7 Social security tips

8 Allocated tips 7.19

8 Allocated tips

9 1.90 in

10 Dependent care benefits

11 Nonqualified plans

Nonqualified plans 11

12a Deferred compensation

14 Inc. tax w/h by third-party sick pay payer

12b

16 State wages, tips, etc.

7.50 in

17 State income tax

18 Local wages, tips, etc.

19 Local income tax

Explain decreases here:

0.33 in

Has an adjustment been made

on an employment tax

return filed

with the Internal Revenue

Service?

☐ Yes

☐ No

If "Yes," give date the return was filed

Under penalties of perjury, I declare that I have examined this return, including accompanying documents, and, to the best correct, and complete. 0.50 in

of my knowledge and belief. it is true,

Signature Title

Date

Employer's contact person

Employer's telephone number

For Official Use Only

Employer's fax number

Employer's email address

0.50 in

# DO NOT CUT, FOLD, OR STAPLE

0.50 in

## Form (Rev. 11-2015) Transmittal of Corrected Wage and Tax Statements

W-3c

Department of the Treasury
Internal Revenue Service

### Purpose of Form

When To File

Use this form to transmit Copy A of the most recent version of Form(s) W-2c,
Corrected Wage and Tax Statement. Make a copy of Form W-3c and keep it with
Copy D (For Employer) of Forms W-2c for your records. File Form W-3c even if
only one Form W-2c is being filed or if those Forms W-2c are being filed only to
correct an employee's name and social security number (SSN) or the employer
identification number (EIN). See the General Instructions for Forms W-2 and W-3
for information on completing this form.

File this form and Copy A of Form(s) W-2c with the Social Security Administration
as soon as possible after you discover an error on Forms W-2, W-2AS, W-2GU,
W-2CM, W-2VI, or W-2c. Provide Copies B, C, and 2 of Form W-2c to your
employees as soon as possible.

Where To File

The SSA strongly suggests employers report Form W-3c and Forms W-2c Copy A
electronically instead of on paper. The SSA provides two free e-filing options on its
Business Services Online (BSO) website:

If you use the U.S. Postal Service, send Forms W-2c and W-3cto the following address:
Social Security Administration
Data Operations Center
P.O. Box 3333
Wilkes-Barre, PA 18767-3333
If you use a carrier other than the U.S. Postal Service, send Forms W-2c and W-3c
to the following address

### E-Filing

· W-2c Online. Use fill-in forms to create, save, print, and submit up to 25 Forms
W-2c at a time to the SSA.

. File Upload. Upload wage files to the SSA you have created using payroll or tax
software that formats the files according to the SSA's Specifications for Filing
Forms W-2c Electronically (EFW2C).
For more information, go to www.socialsecurity.gov/employer. First time filers.
select "Go to Register": returning filers select "Go To Log in."

Social Security Administration
Data Operations Center
Attn: W-2c Process
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 10164R

Exhibit C
Form W-2c
(Copy A)
Substitute
Laser/Blk-Wht

DO NOT CUT, FOLD, OR STAPLE THIS FORM

44444

For Official Use Only OMB No. 1545-0008

a Employer's name, address, and ZIP code

c Tax year/Form corrected / W-2

d Employee's correct SSN

e Corrected SSN and/or name (Check this box and complete boxes f and/or g if incorrect on form previously filed.) ☐

Complete boxes f and/or g only if incorrect on form previously filed

f Employee's previously reported SSN

b Employer's Federal EIN

g Employee's previously reported name

h Employee's first name and initial

Last name Suff.

Note. Only complete money fields that are being corrected (exception: for
corrections involving MQGE, see the General Instructions for Forms W-2
and W-3, under Specific Instructions for Form W-2c, boxes 5 and 6).

i Employee's address and ZIP code

Previously reported

Correct information

Previously reported

Correct information

1 Wages, tips, other compensation

2 Federal income tax withheld

3 Social security wages

4 Social security tax withheld

5 Medicare wages and tips

6 Medicare tax withheld

7 Social security tips

8 Allocated tips

10 Dependent care benefits

11 Nonqualified plans

12a See instructions for box 12

12a See instructions for box 12 A

13 Statutory Retirement Third-party employee plan ☒ sick pay ☐ 0.36 in ☐ 0.44 in ☐ 0.48 in

13 Statutory Retirement Third-party employee plan sick pay ☐ ☐ ☐

12b Joua

12b VOUa

14 Other (see instructions)

12c

12c VoDe

12d

0.20
in

# State Correction Information

Previously reported

Correct information

Previously reported

Correct information

15 State

Employer's state ID number

16 State wages, tips, etc.

17 State income tax

# Locality Correction Information

Previously reported

Correct information

Previously reported

Correct information

18 Local wages, tips, etc.

19 Local income tax

20 Locality name

0 Locality name

20 Locality name

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Copy A-For Social Security Administration

Form W-2c (Rev. 8-2014)

Corrected Wage and Tax Statement

Cat. No. 61437D

Department of the Treasury
Internal Revenue Service

# Exhibit D Form W-3c Substitute Laser/Blk-Wht

55555

a Tax year/Form corrected / W-

For Official Use Only OMB No. 1545-0008

b Employer's name, address, and ZIP code

c Kind of Payer (Check one) 941/941-SS Military 943 944

Kind of Employer (Check one) None apply 501 c non-govt.

Third-party sick pay ☐ (Check if applicable)

0.20 ☐ 0.36 in in CT-1 ☐

☐ 0.36 ☐ 0.36 ☐ ☒ 0.28 Hshld in Medicare in in emp. govt. emp. ☐ ☐ 0.20 in

☐ ☐ 0.65 in State/local non-501c State/local Federal 501 c govt. ☐ 0.46 in ☐ 0.36 in ☐

d Number of Forms W-2c

e Employer's Federal EIN

f Establishment number

g Employer's state ID number

Complete boxes h, i, or j only if incorrect on last form filed.

h Employer's originally reported Federal EIN

i Incorrect establishment

number

j Employer's incorrect state ID number

Total of amounts previously reported as shown on enclosed Forms W-2c.

Total of corrected amounts as shown on enclosed Forms W-2c.

Total of amounts previously as shown on enclosed Forms

reported W-2c.

Total of corrected amounts as shown on enclosed Forms W-2c.

1 Wages, tips, other compensation

2 Federal income tax withheld

3 Social security wages

4 Social security tax withheld

5 Medicare wages and tips

6 Medicare tax withheld

7 Social security tips

8 Allocated tips

10 Dependent care benefits

11 Nonqualified plans

12a Deferred compensation

14 Inc. tax w/h by third-party sick pay payer

12b

16 State wages, tips, etc.

17 State income tax

18 Local wages, tips, etc.

19 Local income tax

Signature

Title

Date

Employer's contact person

Employer's telephone number

For Official Use Only 0.33 in

Employer's fax number

Employer's email address 4.00

# DO NOT CUT, FOLD, OR STAPLE

Explain decreases here:

Has an adjustment been made on an employment tax return filed with the Internal Revenue Service?
☐
Yes
☐
No

If "Yes," give date the return was filed

Under penalties of perjury, I declare that I have examined this return, including accompanying documents, and, to the best of my knowledge and belief, it is true,
correct, and complete.

Form
W-3c
(Rev. 11-2015)

## Transmittal of Corrected Wage and Tax Statements

Department of the Treasury
Internal Revenue Service

### Purpose of Form

When To File

Where To File

E-Filing

If you use the U.S. Postal Service, send Forms W-2c and W-3c to the following address:
Social Security Administration
Data Operations Center
P.O. Box 3333
Wilkes-Barre, PA 18767-3333
If you use a carrier other than the U.S. Postal Service, send Forms W-2c and W-3c
to the following address:

. W-2c Online. Use fill-in forms to create, save, print, and submit up to 25 Forms
W-2c at a time to the SSA.

. File Upload. Upload wage files to the SSA you have created using payroll or tax
software that formats the files according to the SSA's Specifications for Filing
Forms W-2c Electronically (EFW2C).

Social Security Administration
Data Operations Center
Attn: W-2c Process
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997

For more information, go to www.socialsecurity.gov/employer. First time filers.
select "Go to Register"; retuming filers select "Go To Log In."

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 10164R

# Part IV. Items of General Interest

Deletions From Cumulative
List of Organizations,
Contributions to Which are
Deductible Under Section
170 of the Code

## Announcement 2016-13

Table of Contents

The Internal Revenue Service has re-
voked its determination that the organiza-
tions listed below qualify as organizations
described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.

Generally, the IRS will not disallow
deductions for contributions made to a

listed organization on or before the date of
announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the IRS is not pre-
cluded from disallowing a deduction for
any contributions made after an organiza-
tion ceases to qualify under section
170(c)(2) if the organization has not
timely filed a suit for declaratory judg-
ment under section 7428 and if the con-
tributor (1) had knowledge of the revoca-
tion of the ruling or determination letter,
(2) was aware that such revocation was
imminent, or (3) was in part responsible
for or was aware of the activities or omis-
sions of the organization that brought
about this revocation.

If on the other hand a suit for declara-
tory judgment has been timely filed, con-

tributions from individuals and organiza-
tions described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on March 28, 2016
and would end on the date the court first
determines the organization is not de-
scribed in section 170(c)(2) as more par-
ticularly set for in section 7428(c)(1). For
individual contributors, the maximum de-
duction protected is $1,000, with a hus-
band and wife treated as one contributor.
This benefit is not extended to any indi-
vidual, in whole or in part, for the acts or
omissions of the organization that were
the basis for revocation.

NAME OF ORGANIZATION

Effective Date of Revocation

LOCATION

Bushwick Stuyvesant Heights Rehabilitation Center, Inc.

January 1, 2013

Brooklyn, NY

# Definition of Terms

Revenue rulings and revenue procedures
(hereinafter referred to as "rulings") that
have an effect on previous rulings use the
following defined terms to describe the
effect:

Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).

Clarified is used in those instances
where the language in a prior ruling is
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.

Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.

Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A

and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).

Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future 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.

Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.

Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a 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
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the 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.

Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.

Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
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.

F.R .- Federal Register.

FUTA-Federal Unemployment Tax Act.

FX-Foreign corporation.

G.C.M .- Chief Counsel's Memorandum.

GE-Grantee.

GP-General Partner.

TFR-Transferor.

T.I.R .- Technical Information Release.

COOP-Cooperative.

IC-Insurance Company.

Ct.D .- Court Decision.

I.R.B .- Internal Revenue Bulletin.

CY-County.

LE-Lessee.

TT-Trustee.

D-Decedent.

LP-Limited Partner.

LR-Lessor.

M-Minor.

Nonacq .- Nonacquiescence.

O Organization.

DR-Donor.

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.

BK-Bank.

B.T.A .- Board of Tax Appeals.

C-Individual.

C.B .- Cumulative Bulletin.

CFR-Code of Federal Regulations.

CI-City.

GR-Grantor.

TP-Taxpayer.
TR-Trust.

U.S.C .- United States Code.

DC-Dummy Corporation.

X-Corporation.

DE-Donee.

Del. Order-Delegation Order.

DISC-Domestic International Sales Corporation.

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.

T-Target Corporation.

T.C .- Tax Court.

T.D .- Treasury Decision.

TFE-Transferee.

Y-Corporation.

Z-Corporation.

Numerical Finding List1

Revenue Procedures:

Bulletins 2016-1 through 2016-13

2016-1, 2016-1 I.R.B. 1

2016-2, 2016-1 I.R.B. 102

Announcements:

2016-3, 2016-1 I.R.B. 126

2016-4, 2016-1 I.R.B. 142

2016-1, 2016-3 I.R.B. 283

2016-5, 2016-1 I.R.B. 188

2016-2, 2016-3 I.R.B. 283

2016-6, 2016-1 I.R.B. 200

2016-3, 2016-4 I.R.B. 294

2016-7, 2016-1 I.R.B. 239

2016-4, 2016-6 I.R.B. 313

2016-8, 2016-1 I.R.B. 243

2016-5, 2016-8 I.R.B. 356

2016-10, 2016-2 I.R.B. 270

2016-6, 2016-10 I.R.B. 409

2016-11, 2016-2 I.R.B. 274

2016-7, 2016-8 I.R.B. 356

2016-13, 2016-4 I.R.B. 290

2016-8, 2016-9 I.R.B. 367

2016-14, 2016-9 I.R.B. 365

2016-9, 2016-9 I.R.B. 367

2016-15, 2016-11 I.R.B. 435

2016-10, 2016-9 I.R.B. 367

2016-16, 2016-10 I.R.B. 394

2016-11, 2016-10 I.R.B. 411

2016-17, 2016-11 I.R.B. 436

2016-13, 2016-13 I.R.B. 514

2016-19, 2016-13 I.R.B. 497 2016-20, 2016-13 I.R.B. 499

## Notices:

2016-1, 2016-2 I.R.B. 265
2016-2, 2016-2 I.R.B. 265
2016-3, 2016-3 I.R.B. 278
2016-4, 2016-3 I.R.B. 279
2016-5, 2016-6 I.R.B. 302
2016-6, 2016-4 I.R.B. 287
2016-7, 2016-5 I.R.B. 296
2016-8, 2016-6 I.R.B. 304
2016-9, 2016-6 I.R.B. 306
2016-10, 2016-6 I.R.B. 307
2016-11, 2016-6 I.R.B. 312
2016-12, 2016-6 I.R.B. 312
2016-13, 2016-7 I.R.B. 314
2016-14, 2016-7 I.R.B. 315
2016-15, 2016-13 I.R.B. 486
2016-16, 2016-7 I.R.B. 318
2016-17, 2016-9 I.R.B. 358
2016-18, 2016-9 I.R.B. 359
2016-19, 2016-9 I.R.B. 362
2016-20, 2016-9 I.R.B. 362
2016-21, 2016-12 I.R.B. 465
2016-22, 2016-13 I.R.B. 488
2016-23, 2016-13 I.R.B. 490
2016-24, 2016-13 I.R.B. 492
2016-25, 2016-13 I.R.B. 493

## Proposed Regulations:

REG-118867-10, 2016-10 I.R.B. 411
REG-147310-12, 2016-7 I.R.B. 336
REG-150349-12, 2016-11 I.R.B. 440
REG-138344-13, 2016-4 I.R.B. 294
REG-123867-14, 2016-12 I.R.B. 484
REG-125761-14, 2016-7 I.R.B. 322
REG-100861-15, 2016-8 I.R.B. 356
REG-127923-15, 2016-12 I.R.B. 473
REG-129067-15, 2016-10 I.R.B. 421
REG-134122-15, 2016-7 I.R.B. 334
REG-101701-16, 2016-9 I.R.B. 368

## Revenue Rulings:

2016-1, 2016-2 I.R.B. 262
2016-2, 2016-4 I.R.B. 284
2016-3, 2016-3 I.R.B. 282
2016-4, 2016-6 I.R.B. 299
2016-5, 2016-8 I.R.B. 344
2016-7, 2016-10 I.R.B. 391
2016-8, 2016-11 I.R.B. 426

## Treasury Decisions:

9745, 2016-2 I.R.B. 256
9748, 2016-8 I.R.B. 347
9749, 2016-10 I.R.B. 373
9750, 2016-10 I.R.B. 374
9751, 2016-10 I.R.B. 379
9752, 2016-10 I.R.B. 385
9753, 2016-11 I.R.B. 426
9754, 2016-11 I.R.B. 432
9755, 2016-12 I.R.B. 442
9756, 2016-12 I.R.B. 450
9757, 2016-12 I.R.B. 462

1A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015-27 through 2015-52 is in Internal Revenue Bulletin
2015-52, dated December 28, 2015.

## Finding List of Current Actions on Previously Published Items1

Bulletins 2016-1 through 2016-13

### Announcements:

2007-21
Modified by
Ann. 2016-1, 2016-3 I.R.B. 283

Notices:

2005-50
Modified by
Notice 2016-2, 2016-2 I.R.B. 265

2007-59
Revoked by
Notice 2016-16, 2016-7 I.R.B. 318

2013-54
Supplemented by
Notice 2016-17, 2016-9 I.R.B. 358

2014-79
Superseded by
Notice 2016-1, 2016-2 I.R.B. 265

2015-52
Supplemented by
Notice 2016-17, 2016-9 I.R.B. 358

2015-87
Supplemented by
Notice 2016-17, 2016-9 I.R.B. 358

## Revenue Procedures:

2003-36
Superseded by
Rev. Proc. 2016-19, 2016-13 I.R.B. 497

2014-56
Superseded by
Rev. Proc. 2016-20, 2016-13 I.R.B. 499

2015-1
Superseded by
Rev. Proc. 2016-2, 2016-1 I.R.B. 1

2015-2
Superseded by
Rev. Proc. 2016-2, 2016-1 I.R.B. 102

2015-3
Superseded by
Rev. Proc. 2016-3, 2016-1 I.R.B. 126

2015-5
Superseded by
Rev. Proc. 2016-5, 2016-1 I.R.B. 142

Revenue Procedures :- Continued

2015-7
Superseded by
Rev. Proc. 2016-7, 2016-1 I.R.B. 188

2015-8
Superseded by
Rev. Proc. 2016-8, 2016-1 I.R.B. 200

2015-9
Superseded by
Rev. Proc. 2016-5, 2016-1 I.R.B. 239

2015-10
Superseded by
Rev. Proc. 2016-10, 2016-2 I.R.B. 270

2015-22
Superseded by
Rev. Proc. 2016-8, 2016-01 I.R.B. 243

2015-53
Modified by
Rev. Proc. 2016-11, 2016-2 I.R.B. 274

### Revenue Rulings:

2005-3
Modified by
Rev. Rul. 2016-8, 2016-11 I.R.B. 426

2008-15
Revoked by
Rev. Rul. 2016-3, 2016-3 I.R.B. 282

# Internal Revenue Service Washington, DC 20224

Official Business
Penalty for Private Use, $300

# 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 at www.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 Bulletin 2016-13 (PDF rendition): IRS Revenue Procedures

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