Internal Revenue Bulletin 2013-9 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 201
3-9
February 25, 201
3
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
Rev. Rul. 2013–4, page 520.
Insurance companies; interest rate tables.Prevailing
state assumed interest rates are provided for the determina-
tion of reserves under section 807 of the Code for contracts
issued in 2012 and 2013. Rev. Rul. 92–19 supplemented in
part.
Rev. Rul. 2013–5, page 525.
This ruling holds that Eurex Deutschland, which is a regulated
exchange of Germany, is a qualified board or exchange within
the meaning of section 1256(g)(7)(C) of the Code.
Notice 2013–4, page 527.
Adjustment of applicable federal rates.This notice solicits
comments regarding changes to the method used to determine
adjusted applicable federal rates under section 1288(b) of the
Code and the adjusted federal long-term rate under section
382(f) of the Code. It provides interim guidance describing
modifications to the current method that will be in effect until
further guidance is issued.
Notice 2013–5, page 529.
This notice provides for the waiver of additions to tax under
section 6654(a) of the Code for underpayment of estimated
taxes for certain farmers and fishermen due to the delayed
start for filing 2012 tax year returns.
Notice 2013–9, page 529.
This document provides relief from certain requirements in sec-
tion 142(d) of the Code to issuers of tax-exempt bonds that
approve the housing of individuals displaced due to the effects
of Hurricane Sandy (“displaced individuals”) in residential rental
projects (“Projects”) financed with tax-exempt bonds under sec-
tion 142(d).
EMPLOYEE PLANS
Announcement 2013–13, page 532.
This announcement contains corrections to Revenue Procedure
2013–6, 2013–1 I.R.B. 198, as published on January 2, 2013.
In particular, this announcement clarifies that applications for
determination letters should continue to be submitted to the
Covington, KY address in section 6.15 of Rev. Proc. 2013–6.
Comments submitted by interested parties in connection with
the determination letter process should be sent to a differ-
ent address in Cincinnati, OH in section 17.02 of Rev. Proc.
2013–6. Rev. Proc. 2013–6 corrected.
ADMINISTRATIVE
Notice 2013–5, page 529.
This notice provides for the waiver of additions to tax under
section 6654(a) of the Code for underpayment of estimated
taxes for certain farmers and fishermen due to the delayed
start for filing 2012 tax year returns.
Fi
nding Lists begin on page ii.
Index for January through February begins on page iv.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
February 25, 20132013–9 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 382.—
Limitation
on Net Operati
ng Loss
Carryforwards and Certain
Built-in Losses Following
Ownership Change
This notice solicits comments regarding changes
to the method used to determine adjusted applica-
ble federal rates under section 1288(b) of the Code
and the adjusted federal long-term rate under section
382(f) of the Code. It provides interim guidance de-
scribing modifications to the current method that will
be in effect until further guidance is issued. See No-
tice 2013-4, page 527.
Section 446.—General Rule
for Methods of Accounting
26 CFR 1.446-1: General rule for methods of ac-
counting.
A revenue ruling holds that Eurex Deutschland,
which is a regulated exchange of Germany, is a quali-
fied board or exchange within the meaning of section
1256(g)(7)(C) of the Code. See Rev. Rul. 2013-5,
page 525.
Section 481.—Adjustments
Required by Changes in
Method of Accounting
A revenue ruling holds that Eurex Deutschland,
which is a regulated exchange of Germany, is a quali-
fied board or exchange within the meaning of section
1256(g)(7)(C) of the Code. See Rev. Rul. 2013-5,
page 525.
Section 807.—
Rules for
Certain Reser
ves
Insurance com
panies; interest rate
tables.Preva
iling state assumed interest
rates are pro
vided for the determination of
reserves und
er section 807 of the Code for
contracts is
sued in 2012 and 2013. Rev.
Rul. 92–19 su
pplemented in part.
Rev. Rul. 201
3–4
For purpose
s of § 807(d)(4) of the In-
ternal Reve
nue Code, for taxable years be-
ginning aft
er December 31, 2011, this rul-
ing supplem
ents the schedules of prevail-
ing state as
sumed interest rates set forth
in Rev. Rul
. 92–19, 1992–1 C.B. 227.
This infor
mationistobeusedbyinsurance
companies
in computing their reserves for
(1) life in
surance and supplementary total
and perma
nent disability benefits, (2) in-
dividual
annuities and pure endowments,
and (3) gr
oup annuities and pure endow-
ments. As
§ 807(d)(2)(B) requires that the
interest
rate used to compute these reserves
be the gr
eater of (1) the applicable federal
interes
t rate, or (2) the prevailing state as-
sumed in
terest rate, the table of applicable
federal
interest rates in Rev. Rul. 92–19 is
also sup
plemented.
Followi
ng are supplements to schedules
A, B, C,
and D to Part III of Rev. Rul.
92–19,
providing prevailing state assumed
intere
st rates for insurance products with
differ
ent features issued in 2012 and 2013,
and a su
pplement to the table in Part IV of
Rev. Rul. 92–1
9, providing the applica-
ble federal in
terest rates under § 807(d) for
2012 and 2013.
This ruling does not sup-
plement Part
s I and II of Rev. Rul. 92–19.
This is the twe
nty-first supplement to
the interest
rates provided in Rev. Rul.
92–19. Earli
er supplements were pub-
lished in Rev
. Rul. 93–58, 1993–2 C.B.
241 (interes
t rates for insurance prod-
ucts issued
in 1992 and 1993); Rev. Rul.
94–11, 1994
–1 C.B. 196 (1993 and 1994);
Rev. Rul. 95
–4, 1995–1 C.B. 141 (1994
and 1995); R
ev. Rul. 96–2, 1996–1 C.B.
141 (1995 a
nd 1996); Rev. Rul. 97–2,
1997–1 C.B
. 134 (1996 and 1997); Rev.
Rul. 98–2,
1998–1 C.B. 259 (1997 and
1998); Rev
. Rul. 99–10, 1999–1 C.B.
671 (1998 a
nd 1999); Rev. Rul. 2000–17,
2000–1 C.
B. 842 (1999 and 2000); Rev.
Rul. 2001
–11, 2001–1 C.B. 780 (2000 and
2001); Re
v. Rul. 2002–12, 2002–1 C.B.
624 (2001
and 2002); Rev. Rul. 2003–24,
2003–1 C.
B. 557 (2002 and 2003); Rev.
Rul. 200
4–14, 2004–1 C.B. 511 (2003
and 2004
); Rev. Rul. 2005–29, 2005–1
C.B. 108
0 (2004 and 2005); Rev. Rul.
2006–25
, 2006–1 C.B. 882 (2005 and
2006);
Rev. Rul. 2007–10, 2007–1 C.B.
660 (20
06 and 2007); Rev. Rul. 2008–19,
2008–1
C.B. 669 (2007 and 2008); Rev.
Rul. 20
09–3, 2009–5 I.R.B. 382 (2008
and 200
9); Rev. Rul. 2010–7, 2010–8
I.R.B
. 417 (2009 and 2010); Rev. Rul.
2011–
23, 2011–43 I.R.B. 585 (2010 and
2011)
; and Rev. Rul. 2012–6, 2012–6
I.R.B
. 349 (2011 and 2012).
2013–9 I.R.B.520February 25, 2013

Part III. Prevailing State Assumed Interest Rates — Products Issued in Years After 1982.*
Schedule A
STATUTORY VALUATION INTEREST RATES
BASED ON THE 1980 AMENDMENTS TO THE
N
AICSTANDARDVALUATIONLAW
A. Life insurance valuation:
Guarantee Duration (
years)
Calendar Year of Issue
2
013
10 or fewer
3.75**
More than 10
but not more than 203.75**
More than 20
3.50**
Source: Rates calculated from the monthly averages, ending June 30, 2012, of Moody’s Composite Yield on Seasoned Corporate
Bonds.
* The terms used in the schedules in this ruling and in Part IIIof Rev. Rul. 92–19 are those used in the Standard Valuation
Law; the terms are defined in Rev. Rul. 92–19.
** As these rates exceed the applicable federal interest rate for 2013 of 2.16 percent, the valuation interest rate to be used for this
product under § 807 is the applicable rate specified in this table.
February 25, 20135212013–9 I.R.B.

Part III, Schedule B
STATUTORY VALUATION INTEREST RATES
BASED ON THE 1980 AMENDMENTS TO THE
N
AICSTANDARDVALUATIONLAW
B. Single premium immediate annuities and annuity benefits involving life contingencies arising from other annuities with cash
settlement options and from guaranteed interest contracts with cash settlement options:
C
alendarYearofIssueValuationInterestRate
2012
4.25*
Source: Rates calculated from the monthly averages, ending June 30, 2012, of Moody’s Composite Yield on Seasoned Corporate
Bonds (formerly known as Moody’s Corporate Bond Yield Average — Monthly Average Corporates). The terms used in this
schedule are those used in the Standard Valuation Law as defined in Rev. Rul. 92–19.
*As this prevailing state assumed interest rate exceeds the applicable federal interest rate for 2012 of 2.89 percent, the valuation
interest rate of 4.25 percent is to be used for this product under § 807.
2013–9 I.R.B.522February 25, 2013

Part III, Schedule C24 — 2012
STATUTORY VALUATION INTEREST RATES
BASED ON NAIC STANDARD VALUATION LAW
FOR 2012 CALENDAR YEAR BUSINESS
G
OVERNEDBYTHE1980AMENDMENTS
C. Valuation interest rates for other annuities and guaranteed interest contracts that are valued on an issue year basis:
Valuation Interest Rate (%)
For Plan Type
Cash
Settlement
O
ptions?
Future
Interest
G
uarantee?
Guarantee Duration
(
years)ABC
YesYes
5 or fewer4.25*
4.00*
3.75*
More than 5, but not
more than 10
4.25*
4.00*
3.75*
More than 10, but not
more than 20
4.00*
3.75*3.75*
More than 20
3.75*3.50*3.50*
YesNo
5 or fewer4.25*
4.00*
3.75*
More than 5, but not
more than 10
4.25*
4.00*
3.75*
More than 10, but not
more than 20
4.00*
3.75*3.75*
More than 20
3.75*3.50*3.50*
NoYes or No
5 or fewer4.25*
More than 5, but not
more than 10
4.25*
NOT
APPLICABLE
More than 10, but not
more than 20
4.00*
More than 20
3.75*
Source: Rates calculated from the monthly averages, ending June 30, 2012, of Moody’s Composite Yield on Seasoned Corporate
Bonds.
*As these rates exceed the applicable federal interest rate for 2012of 2.89 percent, the valuation interest rate to be used for this
product under § 807 is the applicable rate specified in the above table.
February 25, 20135232013–9 I.R.B.

Part III, Schedule D24 — 2012
STATUTORY VALUATION INTEREST RATES
BASED ON NAIC STANDARD VALUATION LAW
FOR 2012 CALENDAR YEAR BUSINESS
G
OVERNEDBYTHE1980AMENDMENTS
D. Valuation interest rates for other annuities and guaranteed interest contracts that are contracts with cash settlement options
and that are valued on a change in fund basis:
Valuation Interest Rate
For Plan Type
Cash
Settlement
O
ptions?
Future
Interest
G
uarantee?
Guarantee Duration
(
years)ABC
YesYes
5 or fewer4.50*4.25*3.75*
More than 5, but not
more than 10
4.50*4.25*3.75*
More than 10, but not
more than 20
4.25*4.25*3.75*
More than 204.00*4.00*
3.50*
YesNo
5 or fewer4.50*4.50*
4.00*
More than 5, but not
more than 10
4.50*4.50*
4.00*
More than 10, but not
more than 20
4.25*4.25*3.75*
More than 204.00*4.00*
3.75*
Source: Rates calculated from the monthly averages, ending June 30, 2012, of Moody’s Composite Yield on Seasoned Corporate
Bonds.
*As these rates exceed the applicable federal interest rate for 2012of 2.89 percent, the valuation interest rate to be used for this
product under § 807 is the applicable rate specified in the above table.
2013–9 I.R.B.524February 25, 2013

Part IV. Applicable Federal Interest Rates
TABLE OF
APPLICABLE FEDERAL INTEREST RATES
F
ORPURPOSESOF§807
YearInterestRate
20122.89
20132.16
Sources: Rev. Rul. 2004–106, 2004–2 C.B. 893, for the 2005 rate; Rev. Rul. 2005–77, 2005–2 C.B. 1071, for the 2006 rate;
Rev. Rul. 2006–61, 2006–2 C.B 1028 for the 2007 rate; Rev. Rul. 2007–70, 2007–2 C.B. 1158 for the 2008 rate; Rev. Rul.
2008–53, 2008–2 C.B. 1231 for the 2009 rate; Rev. Rul. 2009–38, 2009–49 I.R.B. 736 for the 2010 rate; Rev. Rul. 2010–29,
2010–50 I.R.B. 818 for the 2011 rate; Rev. Rul. 2011–31, 2011–49 I.R.B. 829 for the 2012 rate; and Rev. Rul. 2012–6, 2012–6
I.R.B. 349 (2011 and 2012).
EFFECT ON OTHER REVENUE
RULINGS
Rev. Rul. 92–19 is supplemented by
the addition to Part III of that ruling of pre-
vailing state assumed interest rates under
§ 807 for certain insurance products issued
in 2012 and 2013 and is further supple-
mented by an addition to the table in Part
IV of Rev. Rul. 92–19 listing of applicable
federal interest rates. Parts I and II of Rev.
Rul. 92–19 are not affected by this ruling.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Linda K. Boyd of the Office
of Associate Chief Counsel (Financial
Institutions and Products). For further
information regarding this revenue ruling,
contact her at (202) 622–3970 (not a
toll-free call).
Section 1256.—Section
1256 Contracts Marked
to Market
(Also: §§ 446, 481, 7805; 1.446–1, 301.7805–1.)
This ruling holds that Eurex Deutsch-
land, which is a regulated exchange of
Germany, is a qualified board or ex-
change within the meaning of section
1256(g)(7)(C) of the Code.
Rev. Rul. 2013–5
ISSUE
Is Eurex Deutschland, which is a reg-
ulated exchange of Germany, a qualified
board or exchange within the meaning of
section 1256(g)(7)(C) of the Internal Rev-
enue Code?
FACTS
Eurex Deutschland is a regulated ex-
change of Germany. On August 10, 1999,
the Commodity Futures Trading Commis-
sion (CFTC) issued—and on October 25,
2004, and April 25,2006, it amended—a
letter that granted Eurex Deutschland
no-action relief. This relief allowed
United States members to trade through
Eurex Deutschland’s electronic trading
system, notwithstanding that the CFTC
had not designated Eurex Deutschland
as a contract market pursuant to sections
5 and 5a of the Commodity Exchange Act.
On December 23, 2011, the CFTC pub-
lished final rules regarding the registration
with the CFTC of foreign boards of trade
(FBOTs), including those with existing
no-action relief (“the CFTC FBOT reg-
istration system”).SeeRegistration of
Foreign Boards of Trade, 76 Fed. Reg.
80674 (Dec. 23, 2011), codified at 17 CFR
Part48. Theeffectivedateforthefinal
rules was February 21, 2012. Under the
CFTC FBOT registration system, the
CFTC may issue an Order of Registration
to an FBOT, allowing the FBOT to provide
direct access to its electronic trading and
order matching system from the United
States. The CFTC FBOT registration
system replaced the CFTC’s no-action
relief system. Under 17 CFR 48.6(c), an
FBOT with an existing no-action letter
(like Eurex Deutschland) may continue
to rely on the letter until the CFTC either
revokes the letter or grants that FBOT
an Order of Registration under the new
system.
An FBOT’s status under the
CFTC no-action relief system
and the CFTC FBOT registration
system is posted online at:
http://sirt.cftc.gov/sirt/sirt.aspx?Topic=For-
eignTerminalRelief.
LAW
Section 1256(g)(7) provides that the
term “qualified board or exchange” means:
(A) a national securities exchange
which is registered with the Secu-
rities and Exchange Commission,
(B) a domestic board of trade
designated as a contract market by
the CFTC, or
(C) any other exchange, board of trade,
or other market which the Secre-
tary determines has rules adequate
to carry out the purposes of section
1256.
HOLDING
The Internal Revenue Service deter-
mines that Eurex Deutschland, which is
February 25, 20135252013–9 I.R.B.

a regulated exchange of Germany, is a
qualified board or exchange within the
meaning of section 1256(g)(7)(C) as long
as—
•The CFTC continues to allow Eurex
Deutschland to provide direct access to
its electronic trading and order match-
ing system from the United States un-
der an existing no action letter, pending
CFTC approval of an Order of Regis-
tration; or
•Eurex Deutschland holds a valid Order
of Registration as an FBOT.
EFFECTIVE DATE
Under the authority of section
7805(b)(8) of the Code, this revenue rul-
ing is effective for Eurex Deutschland
Contracts (futures contracts and futures
contract options thatqualify as section
1256 contracts) that are entered into on or
after March 1, 2013.
CHANGE IN METHOD OF
ACCOUNTING
A change in the treatment of Eurex
Deutschland Contracts to comply with this
revenue ruling is a change in method of
accounting within the meaning of sections
446 and 481 and the regulations thereun-
der. The Commissioner grants consent to
taxpayers to change to the section 1256
mark-to-market method for the first tax-
able year during which the taxpayer holds
a Eurex Deutschland Contract that was
enteredintoonorafterMarch1,2013.
Such a taxpayer need not file a Form 3115,
Application for Change in Accounting
Method, and Eurex Deutschland Contracts
that were entered into before March 1,
2013 will not be covered by the change
in method for which consent is granted.
Because the change is being made on
a “cut-off” basis, there is no potential
omission or duplication of income or
deductions, and therefore no adjustment
under section 481 is required.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Shawn Tetelman of the Office
of Associate Chief Counsel (Financial
Institutions & Products). For further
information regarding this revenue ruling,
contact Ms. Tetelman at (202) 622–3930
(not a toll-free call).
Section 7805.—Rules
and Regulations
26 CFR 301.7805-1: Rules and regulations.
A revenue ruling holds that Eurex Deutschland,
which is a regulated exchange of Germany, is a quali-
fied board or exchange within the meaning of section
1256(g)(7)(C) of the Code. See Rev. Rul. 2013-5,
page 525.
2013–9 I.R.B.526February 25, 2013

Part III. Administrative, Procedural, and Miscellaneous
Adjusted Applicable Federal
Rates and Adjusted Federal
Long-Term Rates
Notice 2013–4
I. PURPOSE
The Treasury Department and the In-
ternal Revenue Service (IRS) are recon-
sidering the method used to determine the
adjusted applicable Federal rates (adjusted
AFRs) under section 1288(b) of the In-
ternal Revenue Code (Code) and the ad-
justed Federal long-term rate under sec-
tion 382(f)(2). This notice requests com-
ments from the public on what modifica-
tions should be made to the current method
ofdeterminingsuchrates. Tolimitunin-
tended effects of the current method under
certain market conditions, this notice also
provides interim guidance modifying the
current method, which will apply pending
future guidance.
II. BACKGROUND
A. Applicable Federal Rates
Section 1274(d) governs the determi-
nation of applicable Federal rates (AFRs)
that are used for determining the imputed
principal amount of obligations to which
section 1274 applies, for computing total
unstated interest on payments to which
section 483 applies, and for other pur-
poses. Under section 1274(d)(1), the AFR
is: (i) in the case of a debt instrument
with a term not over three years, the Fed-
eral short-term rate; (ii) in the case of a
debt instrument with a term over three
years but not over nine years, the Fed-
eral mid-term rate; and (iii) in the case of
a debt instrument with a term over nine
years, the Federal long-term rate. Section
1274(d)(1)(B) requires the Secretary to
determine during each calendar month
the foregoing rates that shall apply during
the following calendar month. The IRS
publishes the AFRs for each month in the
Internal Revenue Bulletin, as described
in section 1.1274–4(b) of the Income Tax
Regulations.
Section 1288(b) provides that, in apply-
ingsection483orsection1274toatax-
exempt obligation (as defined in section
1275(a)(3)), under regulations prescribed
by the Secretary, appropriate adjustments
shall be made to the applicable Federal rate
to take into account the tax exemption for
interest on the obligation. Although no
regulations have been issued under section
1288, the IRS also publishes the adjusted
AFRs (determined as described below un-
der “Adjustment of Rates”) for each month
in the Internal Revenue Bulletin.
B. Section 382
In the case of a corporation that has un-
dergone an ownership change described in
section 382(g): (i) section 382 places an
annual limit (the section 382 limitation) on
the amount of the corporation’s taxable in-
come that can be offset by certain net op-
erating loss carryforwards and other tax at-
tributes; and (ii) section 383 places a limit,
determined by reference to the section 382
limitation, on the amount of the corpora-
tion’s income tax liability that can be off-
set by certain tax credits and other tax at-
tributes. Under section 382(b)(1), the sec-
tion 382 limitation for a tax year ending af-
ter an ownership change generally equals
the product of (A) the value of the stock
of the corporation immediately prior to the
ownership change, and (B) the long-term
tax-exempt rate.
Section 382(f)(1) provides that the
long-term tax-exempt rate shall be the
highest of the adjusted Federal long-term
rates in effect for any month in the
three-calendar-month period ending with
the calendar month in which the ownership
change occurs. Section 382(f)(2) provides
that the term “adjusted Federal long-term
rate” means the Federal long-term rate
determined under section 1274(d), except
that sections 1274(d)(2) and (3) shall not
apply, and such rate shall be properly ad-
justed for differences between rates on
long-term taxable and tax-exempt obliga-
tions.
The Conference Report for the Tax Re-
form Act of 1986, Pub. L. No. 99–514,
100 Stat. 2254, which added section
382(f)(2) to the Code, indicates that the
adjusted Federal long-term rate is to be
computed as the yieldon a diversified pool
of prime, general obligation tax-exempt
bonds with remaining periods to maturity
of more than nine years. 2 H.R. Rep.
No. 99–841 (Conf. Rep.), 99th Cong., 2d
Sess. II–188 (1986), 1986–3 C.B. (Vol.
4) 188. The report also explains that it
is necessary to the purposes of section
382 that the long-term tax-exempt rate is
lower than the long-term Federal rate, and
that the long-term tax-exempt rate would
ordinarily be lower by a percentage that is
less than the corporate tax rate.Id.
C. Adjustment of Rates Since 1986
The Treasury Department has deter-
mined the adjusted AFRs described in
section 1288(b)(1) and the adjusted Fed-
eral long-term rate described in section
382(f)(2) in the same manner since those
rates were first published for November
1986.SeeRev. Rul. 86–133, 1986–2
C.B. 59; Rev. Rul. 86–135, 1986–2
C.B. 150. The adjusted Federal long-term
rate published under section 382(f)(2) is
equal to the long-term adjusted AFR with
annual compounding published under sec-
tion 1288(b) in the same month. (The
long-term tax-exempt rate prescribed by
section 382(f)(1) is also published each
month; it is equal to the highest of the
adjusted Federal long-term rates for that
month and the two preceding months.)
Since 1986, the adjusted Federal long-
term rate and each adjusted AFR have been
determined by multiplying the correspond-
ing AFR by a fraction (the “adjustment
factor”). The numerator of the adjustment
factor is a composite yield of the high-
est grade tax-exempt obligations available,
which are prime, general obligation tax-
exempt bonds. The denominator is a com-
posite yield of U.S. Treasury obligations
with maturities similar to those of the tax-
exempt bonds. Each of the composite
yields is measured over a one-month pe-
riod.
The adjustment factor uses prime, gen-
eral obligation tax-exempt bonds in the nu-
merator because, at the time the adjust-
ment factor was created, such obligations
were of a comparable credit quality with
U.S. Treasury obligations. The Treasury
Department is aware, however, that there
is a difference in perceived credit risk be-
tween U.S. Treasury obligations and even
the highest grade tax-exempt bonds. That
difference affects the relative yields of the
tax-exempt bonds and the U.S. Treasury
February 25, 20135272013–9 I.R.B.

obligations represented in the adjustment
factor in a way that offsets the effect of the
tax exemption for the tax-exempt bonds.
When the Treasury Department began us-
ing the adjustment factor, the effects of
the credit spread were negligible, yields of
tax-exempt bonds were consistently lower
than those of U.S. Treasury obligations,
and the adjustment factor produced ad-
justed AFRs and adjusted Federal long-
term rates that were lower than the corre-
sponding AFRs by percentages that were
significant but smaller than the highest cor-
porate tax rates.
In the last several years, however, the
credit spread between U.S. Treasury obli-
gations and most other obligations, includ-
ing tax-exempt bonds, has grown appre-
ciably. Consequently, since the beginning
of 2008, market yields of prime, general
obligation tax-exempt bonds have often
exceeded those of comparable U.S. Trea-
sury obligations, and the adjusted AFRs
and adjusted Federallong-term rate have
often exceeded the corresponding AFRs.
Those results show that the adjustment fac-
tor no longer serves the purposes of sec-
tions 1288(b)(1) and 382(f)(2), which con-
template adjustments to reflect tax exemp-
tion but not credit quality. The rates are
also inconsistent with the express inten-
tion of Congress that the adjusted Federal
long-term rate and long-term tax-exempt
rate be lower than the Federal long-term
rate.
D. Possible Modification of Adjustments
The IRS and Treasury Department are
considering how the method for deter-
mining adjusted AFRs and the adjusted
Federal long-term rate should be modified
so that the method will be: (i) consistent
with the purposes of sections 382(f) and
1288, even as market conditions and tax
rates change; and (ii) based on readily
available data. To satisfy these objectives,
the adjustment factor may be modified to
use different types of obligations in the
numerator, denominator, or both, or a new
methodology may be implemented. The
IRS and Treasury Department are also con-
sidering whether rates determined using
the current adjustment factor or a modi-
fied version should be subject to any caps,
floors, or other adjustments to ensure that
the rates are determined in a manner con-
sistent with the requirements of sections
1288(b)(1) and 382(f)(2). Finally, the IRS
and Treasury Department are considering
whether the adjusted Federal long-term
rate described in section 382(f)(2) should
continue to be determined in the same
manner as the adjusted AFRs described in
section 1288(b)(1).
Among the options for determining the
adjusted AFRs and the adjusted Federal
long-term rate that the IRS and Treasury
Department are considering are the follow-
ing:
1. Determine the rates using the current
methodology, with two modifications.
First, the adjustment factor would be
subject to a cap at one, such that no ad-
justed AFR or adjusted Federal long-
term rate can ever exceed the corre-
sponding AFR. Therefore, when the
yield of the tax-exempt bonds exceeds
that of the taxable obligations, the ad-
justment factor will be one. Second,
if the yield of the obligations usually
used in the denominator of the adjust-
ment factor is ever zero or a negative
number, the adjustment factor would
be one.
2. Use an adjustment factor based on tax
rates. Specifically, each adjusted AFR
and the adjusted Federal long-term
rate would be the product of (A) the
appropriate AFR, and (B) the excess
of (i) one hundred percent, over (ii)
an appropriate tax rate. Such tax rate
might be the highest corporate tax rate
in section 11(b), or a fixed percent-
age of the highest corporate tax rate
(if a fixed percentage more reliably
approximates the effect of tax exemp-
tion on market yields).
3. Use an adjustment factor in which the
rates reflect equivalent credit quali-
ties. For example, the denominator
mightbetheLIBORswaprateora
similar published rate. The numerator
might be the yield of a pool of tax-ex-
empt bonds determined by the Trea-
sury Department to reflect the same
credit quality and maturity as the rate
in the denominator.
4. Use an adjustment factor based on
the average percentage difference be-
tween the Federal long-term rates and
the adjusted Federal long-term rates
published between 1986 and 2007.
5. Use some combination of elements
from the above approaches.
III. COMMENTS
The IRS and Treasury Department
request comments on the possible modifi-
cations to the method by which adjusted
AFRs and the adjusted Federal long-term
rates are determined. Comments must be
submitted by April 26, 2013. All materials
submitted will be available for public in-
spection and copying. Comments should
be submitted to Internal Revenue Ser-
vice, CC:PA:LPD:PR (Notice 2013–4),
Room 5203, PO Box 7604, Ben Franklin
Station, Washington, DC 20044. Submis-
sions may also be hand-delivered Monday
through Friday between the hours of 8 a.m.
and 4 p.m. to the Courier’s Desk, 1111
Constitution Avenue, NW, Washington,
DC 20224, Attn: CC:PA:LPD:PR (No-
tice 2013–4), Room 5203. Submissions
may also be sent electronically via the
internet to the following e-mail address:
Notice.Comments@irscounsel.treas.gov.
Include the notice number (Notice
2013–4) in both the subject line of the
email and the body of the comment.
IV. INTERIM GUIDANCE
Until the IRS and Treasury Depart-
ment issue further guidance, the adjusted
AFRs, the adjusted Federal long-term rate,
and the long-term tax-exempt rate will
continue to be determined using the adjust-
ment factor in the manner described above
under “Adjustment of Rates,” except that
the adjustment factor shall equal one for
any month in which (A) the adjustment
factor would otherwise exceed one, or (B)
the denominator of the adjustment factor
would otherwise be zero or a negative
number.
The modifications described above will
be reflected in the monthly revenue rul-
ings in which the adjusted AFRs and the
adjusted Federal long-term rate are pub-
lished, beginning with the rates for March
2013.
V. DRAFTING INFORMATION
The principal author of this notice is
Steven Harrison of the Office of Associate
Chief Counsel (Financial Institutions
and Products). For further information
regarding this notice, contact Mr. Harrison
at (202) 622–3930 (not a toll-free call).
2013–9 I.R.B.528February 25, 2013

Estimated Tax Penalty Relief
for Farmers and Fishermen
Notice 2013–5
This notice provides for the waiver of
additions to tax under section 6654(a) of
the Internal Revenue Code (Code) for un-
derpayment of estimated taxes for certain
farmers and fishermen due to the delayed
start for filing 2012 tax year returns.
BACKGROUND
Generally, the Code requires individu-
als to pay federal income tax as they earn
income. To the extent these taxes are
not withheld from an individual’s wages,
an individual taxpayer must pay estimated
taxes.
Section 6654(c) and (d)(1)(A) of the
Code provides that, in general, estimated
taxes are required in four installments and
the amount of any required installment
shall be 25 percent of the “required annual
payment.” Section 6654(a) provides for
an addition to tax where a taxpayer fails to
make a sufficient and timely payment of
estimated tax.
Section 6654(i) provides a special rule
for farmers and fisherman. Under section
6654(i)(1)(A), only one installment pay-
ment is required to be made. Under section
6654(i)(1)(B), the installment is due on
January 15 of the following taxable year.
Section 6654(i)(1)(D) provides that qual-
ifying farmers and fishermen who choose
not to make the required estimated tax in-
stallment payment are not subject to an es-
timated tax addition to tax if they file their
returns and pay the full amount of tax due
by March 1 of the following taxable year.
Under section 6654(i)(2), a taxpayer qual-
ifies as a farmer or fisherman for the 2012
tax year if at least two-thirds of the tax-
payer’s total gross income was from farm-
ing or fishing in either 2011 or 2012.
Section 6654(e)(3) authorizes the Inter-
nal Revenue Service to waive section 6654
penalties for underpayments of estimated
tax in unusual circumstances to the extent
its imposition would be against equity and
good conscience.
On January 2, 2013, the American Tax-
payer Relief Act of 2012 (ATRA), Pub. L.
No. 112–240, 126 Stat. 2313, was en-
acted into law. The ATRA affected several
tax forms that are often filed by farmers
and fishermen, including the Form 4562,
Depreciation and Amortization (Including
Information on Listed Property). Revi-
sion of these forms will require extensive
programming and testing of IRS systems,
which will delay the IRS’s ability to ac-
cept and process these forms. These delays
may affect the ability of many farmers and
fishermen to file their 2012 tax year return
by March 1, 2013.
TRANSITIONAL RELIEF FOR
UNDERPAYMENT OF ESTIMATED
TAXES
Pursuant to the authority in section
6654(e)(3), the Service will waive the
section 6654 addition to tax for the 2012
tax year for farmers and fishermen who
miss the March 1 deadline if they file
theirreturnandpayinfullanytaxdue
by April 15, 2013. Farmers and fisher-
menrequestingthisadditiontotaxwaiver
must attach Form 2210-F,Underpayment
of Estimated Tax by Farmers and Fisher-
men, to their tax return. The form can be
submitted electronically or on paper. The
taxpayer’s name and identifying number
should be entered at the top of the form
and the waiver box (Part I, Box A) should
be checked. The rest of the form should be
left blank. Forms, instructions, and other
tax assistance are available on IRS.gov.
The IRS toll-free number for general tax
questions is 1–800–829–1040.
CONTACT INFORMATION
The principal author of this notice is
Matthew S. Cooper of the Office of Asso-
ciate Chief Counsel (Procedure & Admin-
istration). For further information regard-
ing this notice, contact Matthew S. Cooper
on 202–622–3400 (not a toll-free call).
Temporary Shelter for
Individuals Displaced by
Hurricane Sandy
Notice 2013–9
The Internal Revenue Service is
suspending certainrequirements under
§ 142(d) of the Internal Revenue Code
for qualified residential rental projects fi-
nanced with exempt facility bonds under
§ 142 to provide emergency housing re-
lief needed as a result of the devastation
caused by Hurricane Sandy and associated
storms (hereafter “Hurricane Sandy”).
This notice provides relief for all qual-
ified residential rental projects described
herein. For those projects that are also
low-income housing tax credit (“LIHTC”)
projects, this notice should be read with
Notice 2012–68, 2012–48 I.R.B. 574,
which suspends certain low-income and
non-transient requirements under § 42 to
allow low-income housing credit projects
to provide emergency housing needed be-
cause of Hurricane Sandy.
BACKGROUND
The President issued major disaster
declarations for several States because
of the devastation caused by Hurricane
Sandy. The President issued the declara-
tions under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act,
42 U.S.C. 5121et seq. Subsequently, the
Federal Emergency Management Agency
(“FEMA”) designated jurisdictions in
several of these States for Individual
Assistance (as FEMA uses that term).
Because of the widespread damage to
housing caused by Hurricane Sandy, the
Service has determined that issuers can
approve the use of qualified residential
rental projects described in § 142(d) to
temporarily house displaced individuals,
as defined below, regardless of their in-
come, in accordance with this notice. The
Service has determined that the projects to
which this approval may be given can be
located in any State, regardless of whether
a major disaster declaration with Individ-
ual Assistance has been issued for that
State.
Consistent with Notice 2012–68, the
term “displaced individual” means, for
purposes of this notice, an individual who
resided in a jurisdiction designated for
Individual Assistance and who has been
displaced because his or her residence was
destroyed or damaged as a result of the
devastation caused by Hurricane Sandy.
SECTION 1. SUSPENSION OF
INCOME LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend cer-
tain income limitation requirements under
§ 142(d) that apply to qualified residential
rental projects financed with tax-exempt
bonds issued by a qualified issuer under
February 25, 20135292013–9 I.R.B.

§ 103 (“Issuer”). The suspension, de-
scribed in Section 3 below, is available to
both qualified residential rental projects
under § 142(d) that are not subject to
any LIHTC-related requirements (“Bond
Projects”) and to qualified residential
rental projects under § 142(d) that are also
subject to LIHTC-related requirements
(“Bond/LIHTC Projects”). For purposes
of this notice, the term “Project” refers to
either a Bond Project or a Bond/LIHTC
Project.
SECTION 2. GENERAL
REQUIREMENTS
.01Issuer Approval for Relief.Ifan
Issuer that issuedexempt facility bonds
for a Project desires to allow the use of
the Project to temporarily house displaced
individuals, the Issuer must approve that
use and must determine an appropriate pe-
riod for the temporary housing, not to ex-
tend beyond November 30, 2013 (“Tempo-
rary Housing Period”). If a Bond/LIHTC
Project subject to both Notice 2012–68
and this notice receives approval, for pur-
poses of § 42, for a Temporary Housing
Period and for the suspension of income
limitations from a State housing agency
(as contemplated in Section IV(2) of No-
tice 2012–68) and that agency is not the
Issuer, then the income limitations under
§ 142(d) for that Bond/LIHTC Project are
suspended only if the project also receives
the Issuer’s consent for a suspension. An
Issuer that chooses to provide that consent
must adopt for purposes of § 142(d) the
same Temporary Housing Period that the
agency adopted for purposes of § 42.
.02Protection of Tenants.Existingten-
ants in a Project whose income is at or be-
low an applicable income limitation under
§ 142(d) cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.
.03Certification and Recordkeeping
Requirements. The Project operator must
comply with the certification and record-
keeping requirementsinSection4ofthis
notice. For certification and recordkeep-
ing requirements under § 42, see Notice
2012–68.
.04Rent Restrictions. To the extent
such rent restrictions are applicable, rents
for the low-income units that house dis-
placed individuals must not exceed the
lesser of—
(1) the maximum gross rent for that unit
under § 142(d)(4)(B); or
(2) the maximum gross rent for that unit
under § 42(g)(2).
.05Project Must Meet All Remaining
Requirements. Except as expressly pro-
vided in this notice, a Project continues to
be subject to all other rules and require-
ments of § 142(d) and § 103.
SECTION 3. RELIEF FROM SECTION
142 REQUIREMENTS
.01Qualified Project Period.Onlya
unit in a Project occupied by a non-dis-
placed individual counts for purposes of
determining the beginning of the quali-
fied project period under § 142(d)(2)(A).
Thus, only non-displaced individuals
are counted for determining the 1
st
day
on which 10 percent of the residential
units in a Project are occupied under
§ 142(d)(2)(A). However, occupancy of a
unit by any tenant (whether a displaced in-
dividual or a non-displaced individual) in
a Project counts for purposes of determin-
ing the end of the qualified project period
under § 142(d)(2)(A)(i). If occupancy by
a displaced individual in a Project causes
any termination of assistance with respect
to the Project under section 8 of the United
States Housing Act of 1937, then that ter-
mination is disregarded for determining
when the qualified project period ends
under § 142(d)(2)(A)(iii).
.02Satisfaction of the Non-Transient
Use Requirement. The occupancy of
a unit in a Project by a displaced indi-
vidual during the Temporary Housing
Period is treated as satisfying the non-tran-
sient use requirement applicable to qual-
ified residential rental projects described
in § 142(d).See§ 1.103–8(b)(4);see
alsoNotice 2012–68 for suspension of
the non-transient use requirement under
§ 42(i)(3)(B)(i).
.03Income Qualification of Units in
Bond Projects during Temporary Housing
Period.A unit in a Bond Project occu-
pied by a displaced individual during the
Temporary Housing Period retains the in-
come status it had immediately before that
occupancy, regardless of whether the unit
was a market-rate unit, a unit occupied by
a tenant who met an applicable income
limit, a designated low-income unit, or a
never previously occupied unit.SeeRev.
Proc. 2004–39, 2004–29 I.R.B. 49 (treat-
ing never previouslyoccupied units as un-
available). This means, for example, that
if a unit in a Bond Project had been desig-
natedasalow-incomeunitorrentedtoan
individual whose income was at or below
an applicable income limit or was a mar-
ket-rate unit or an unavailable unit, then
the unit remains as such while occupied by
a displaced individual during the Tempo-
rary Housing Period regardless of the oc-
cupancy by, or income of, the displaced
individual. Thus, the fact that a unit be-
comes occupied by a displaced individual
does not affect compliance with the 20-50
test or 40-60 test of § 142(d)(1)(A) and (B)
(or the 25-60 test under the special rule in
§ 142(d)(6)).
Under § 142(d)(3)(B), if the income of
a low-income resident of a Project rises
above a specified percentage of the ap-
plicable income limit, then, for that resi-
dent’s income to continue to be treated as
not exceeding the applicable income limit,
the next residential unit meeting certain
criteria to become available in the same
Project must be occupied by a new res-
ident whose income does not exceed the
applicable income limit (the “next avail-
able unit rule”). For purposes of deter-
mining compliance with the next available
unit rule, an operator of a Bond Project
may disregard the new occupancy of units
during the Temporary Housing Period by
displaced individuals, and apply the rule
solely based on new occupancy by persons
who are not displaced individuals. The op-
erator may, however, take into account a
displaced individual’s occupancy for pur-
poses of § 142(d)(3)(B) if the operator ob-
tains sufficient evidence that the displaced
individual’s income does not exceed the
applicable income limit.
.04Income Qualifications of Units in
Bond/LIHTC Projects During the Tempo-
rary Housing Period. The income status of
a unit and the income qualification of the
occupant of a unit for purposes of § 142(d)
in a Bond/LIHTC Project occupied by a
displaced individual during the Temporary
Housing Period shall be treated the same
as they are for purposes of § 42 under No-
tice 2012–68. For purposes of determin-
ing compliance with the next available unit
rule, an operator of a Bond/LIHTC Project
may disregard the new occupancy of units
during the Temporary Housing Period by
2013–9 I.R.B.530February 25, 2013

displaced individuals, and apply the rule
solelybasedonnewoccupancybypersons
who are not displaced individuals. The op-
erator may, however, take into account a
displaced individual’s occupancy for pur-
poses of § 142(d)(3)(B) if the operator ob-
tains sufficient evidence that the displaced
individual’s income does not exceed the
applicable income limit.
.05Income Qualifications when Tempo-
rary Housing Period Ends.Aftertheend
of the Temporary Housing Period, the sta-
tus as a displaced individual of an occu-
pant remaining in a unit in a Project will
be disregarded and the status of the unit oc-
cupied by such individual and the income
of such individual will be re-evaluated as
though the formerly displaced individual
commenced occupancy of the unit on the
day immediately following the end of the
Temporary Housing Period. Thus, if the
displaced individual remains in the unit,
the unit will be treated as occupied for all
purposes of § 142(d) and the income of the
displaced individual will be used for deter-
mining compliance with the requirements
of § 142(d). If non-compliance relates to
continued occupancy of the unit after the
Temporary Housing Period by an occupant
who was a displaced individual during the
Temporary Housing Period, a 60-day pe-
riod is allowed for correction.
SECTION 4. CERTIFICATIONS AND
RECORDKEEPING
In addition to any information and cer-
tifications required by § 142(d)(7), Project
operators must maintain and certify certain
information concerning each displaced in-
dividual temporarily housed in the Project.
The records must contain the following in-
formation: the name of the displaced in-
dividual, the address of the damaged resi-
dence of the displacedindividual, the dis-
placed individual’s social security num-
ber, and a statement signed under penal-
ties of perjury by thedisplaced individual
that, because of damage to the individual’s
residence in a jurisdiction designated for
Individual Assistance by FEMA as a re-
sult of the devastation caused by Hurricane
Sandy, the individual requires temporary
housing. In addition, the Project operator
must keep accurate records of the Issuer’s
approval of the Project’s use for displaced
individuals and the approved Temporary
Housing Period and the dates during which
displaced individuals occupied units in the
Projects.
The recordkeeping described under this
paragraph must be included as part of the
books and records of the Project opera-
tor and also must be maintained in a man-
ner that is consistent with any compliance
monitoring process imposed by § 142(d).
SECTION 5. EFFECTIVE DATE
To be consistent with Notice 2012–68,
this notice is effective as of October 22,
2012.
SECTION 6. PAPERWORK
REDUCTION ACT
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545-2237.
A Federal agency may not conduct or
sponsor, 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 collection of information in this
notice is in the section entitled “Section
4: CERTIFICATIONS AND RECORD-
KEEPING.” This information is required
to enable the Service to verify whether
individuals are displaced as a result of the
devastation caused by Hurricane Sandy
and thus warrant temporary housing in
vacant units in certain Projects. The col-
lection of information is required to obtain
a benefit. The likely respondents are indi-
viduals and businesses.
The estimated total annual recordkeep-
ing burden is 1750 hours.
The estimated annual burden per
recordkeeper is approximately 30 minutes.
The estimated number of recordkeepers is
3500.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 7. DRAFTING
INFORMATION
The principal author of this notice is
Timothy L. Jones of the Office of Asso-
ciate Chief Counsel (Financial Institutions
& Products). For further information re-
garding this notice, contact Mr. Jones at
(202) 622–3980 (not a toll-free call).
February 25, 20135312013–9 I.R.B.

Part IV. Items o
fGeneralInterest
Announcement
2013–13
This announce
ment contains correc-
tions to Reven
ue Procedure 2013–6, as
published on J
anuary 2, 2013 (2013–1
I.R.B. 198). I
n particular, this announce-
ment clarifie
s that applications for de-
termination
letters should continue to be
submitted to
the Covington, KY address
in section 6.
15 of Rev. Proc. 2013–6.
Comments sub
mitted by interested parties
in connecti
on with the determination let-
ter process
should be sent to a different
address in C
incinnati, OH in section 17.02
of Rev. Proc
. 2013–6.
Correction
1:
The third se
ntence of section 17.02, re-
latingtoco
mments submitted by interested
parties, cont
ains a reference to an incorrect
address. A por
tion of the third sentence is
revised to rea
dasfollows:
“Such comment
s must be in writing,
signed by the i
nterested parties or by an au-
thorized repr
esentative of such parties (as
provided in se
ction 9.02(11) of Rev. Proc.
2013–4), add
ressed to:
Internal Rev
enue Service
EP Determina
tions
Attn: Custom
er Service Manager
P.O. Box 2508
Cincinnati
, OH 45202
Comments mu
st contain the following
informatio
n:”
Correction 2:
The reference t
otheaddressinsec-
tion 17.03(2)
(e) and section 18.03(4) is
changed from “
Section 6.17” to “Section
6.15”.
Correction 3:
The Exhibit: S
ample Notice to Inter-
ested Parties
,Item7,containsanincorrect
address to sub
mit applications for determi-
nation lette
rs. The correct address is as fol-
lows:
“Internal Re
venue Service
EP Determina
tions
P.O. Box 1219
2
Covington, K
Y 41012–0192”
2013–9 I.R.B.532February 25, 2013

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
February 25, 2013i2013–9 I.R.B.

Numerical Finding List
1
Bulletins 2013–1 through 2013–9
Announcements:
2013-1, 2013-1 I.R.B.251
2013-2, 2013-2 I.R.B.271
2013-3, 2013-2 I.R.B.271
2013-4, 2013-4 I.R.B.440
2013-5, 2013-3 I.R.B.306
2013-6, 2013-3 I.R.B.307
2013-7, 2013-3 I.R.B.308
2013-8, 2013-4 I.R.B.440
2013-9, 2013-4 I.R.B.441
2013-10, 2013-3 I.R.B.311
2013-11, 2013-6 I.R.B.483
2013-13, 2013-9 I.R.B.532
Notices:
2013-1, 2013-3 I.R.B.281
2013-2, 2013-6 I.R.B.473
2013-3, 2013-7 I.R.B.484
2013-4, 2013-9 I.R.B.527
2013-5, 2013-9 I.R.B.529
2013-7, 2013-6 I.R.B.477
2013-8, 2013-7 I.R.B.486
2013-9, 2013-9 I.R.B.529
2013-10, 2013-8 I.R.B.503
Proposed Regulations:
REG-141066-09, 2013-3 I.R.B.289
REG-148873-09, 2013-7 I.R.B.494
REG-122707-12, 2013-5 I.R.B.450
Revenue Procedures:
2013-1, 2013-1 I.R.B.1
2013-2, 2013-1 I.R.B.92
2013-3, 2013-1 I.R.B.113
2013-4, 2013-1 I.R.B.126
2013-5, 2013-1 I.R.B.170
2013-6, 2013-1 I.R.B.198
2013-7, 2013-1 I.R.B.233
2013-8, 2013-1 I.R.B.237
2013-9, 2013-2 I.R.B.255
2013-10, 2013-2 I.R.B.267
2013-11, 2013-2 I.R.B.269
2013-12, 2013-4 I.R.B.313
2013-13, 2013-6 I.R.B.478
2013-14, 2013-3 I.R.B.283
2013-15, 2013-5 I.R.B.444
2013-16, 2013-7 I.R.B.488
2013-18, 2013-8 I.R.B.503
Revenue Rulings:
2013-1, 2013-2 I.R.B.252
2013-3, 2013-8 I.R.B.500
Revenue Rulings— Continued:
2013-4, 2013-9 I.R.B.520
2013-5, 2013-9 I.R.B.525
Treasury Decisions:
9603, 2013-3 I.R.B.273
9607, 2013-6 I.R.B.469
9608, 2013-3 I.R.B.274
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin
2012–52, dated December 27, 2012.
2013–9 I.R.B.iiFebruary 25, 2013

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–1 through 2013–9
Notices:
2011-14
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2011-38
Obsoleted by
REG-148873-09, 2013-7 I.R.B.494
2012-60
Superseded by
Notice 2013-1, 2013-3 I.R.B.281
Proposed Regulations:
REG-140668-07
Corrected by
Ann. 2013-6, 2013-3 I.R.B.307
Revenue Procedures:
87-57
Modified by
Rev. Proc. 2013-13, 2013-6 I.R.B.478
2004-66
Modified and superseded by
Rev. Proc. 2013-11, 2013-2 I.R.B.269
2008-35
Modified and superseded by
Rev. Proc. 2013-14, 2013-3 I.R.B.283
2008-50
Modified and superseded by
Rev. Proc. 2013-12, 2013-4 I.R.B.313
2011-49
Modified by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2011-52
Modified and partly superseded by
Rev. Proc. 2013-15, 2013-5 I.R.B.444
2011-55
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2011-62
Superseded by
Rev. Proc. 2013-18, 2013-8 I.R.B.503
2012-1
Superseded by
Rev. Proc. 2013-1, 2013-1 I.R.B.1
2012-2
Superseded by
Rev. Proc. 2013-2, 2013-1 I.R.B.92
Revenue Procedures— Continued:
2012-3
Superseded by
Rev. Proc. 2013-3, 2013-1 I.R.B.113
2012-4
Superseded by
Rev. Proc. 2013-4, 2013-1 I.R.B.126
2012-5
Superseded by
Rev. Proc. 2013-5, 2013-1 I.R.B.170
2012-6
Superseded by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2012-7
Superseded by
Rev. Proc. 2013-7, 2013-1 I.R.B.233
2012-8
Superseded by
Rev. Proc. 2013-8, 2013-1 I.R.B.237
2012-9
Superseded by
Rev. Proc. 2013-9, 2013-2 I.R.B.255
2012-10
Superseded by
Rev. Proc. 2013-10, 2013-2 I.R.B.267
2012-30
Corrected and clarified by
Ann. 2013-3, 2013-2 I.R.B.271
Updated by
Ann. 2013-10, 2013-3 I.R.B.311
2012-46
Corrected by
Ann. 2013-11, 2013-6 I.R.B.483
2013-1
Corrected by
Ann. 2013-9, 2013-4 I.R.B.441
2013-6
Corrected by
Ann. 2013-13, 2013-9 I.R.B.532
Revenue Rulings:
92-19
Supplemented in part by
Rev. Rul. 2013-4, 2013-9 I.R.B.520
Treasury Decisions:
9564
Corrected by
Ann. 2013-4, 2013-4 I.R.B.440
Amended by
Ann. 2013-7, 2013-3 I.R.B.308
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin 2012–52, dated December 27,
2012.
February 25, 2013iii2013–9 I.R.B.

INDEX
Internal Revenue Bulletins 2013–1 to 2013–9
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parentheses refer to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Closing agreements (RP 12) 4,313
Determination letters, issuing procedure (RP 6) 1,1; correction
(Ann 13) 9,532
Full funding limitations, weighted average interest rates, seg-
ment rates for:
January 1, 2013 (Notice 2) 6,473
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,113
Associate Chief Counsel (International ) (RP 7) 1,233
And general information letters, procedures (RP 4) 1,126
User fees, request for letter rulings (RP 8) 1,237
Proposed regulations:
26 CFR 54.9815–2705, added; 54.9802–1, revised; rules
relating to incentives for nondiscriminatory wellness pro-
grams (REG–122707–12) 5,450
Rules relating to incentives for nondiscriminatory wellness pro-
grams (REG–122707–12) 5,450
Technical advice to IRS employees (RP 5) 1,170
EMPLOYMENT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Technical Advice Memoranda (TAMs) (RP 2) 1,92
Transit benefit adjustment for 2012 (Notice 8) 7,486
ESTATE TAX
Cost-of-living adjustments for inflation for 2013 (RP 15) 5,444
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Technical Advice Memoranda (TAMs) (RP 2) 1,92
EXCISE TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Technical Advice Memoranda (TAMs) (RP 2) 1,92
EXEMPT ORGANIZATIONS
Letter rulings:
And determination letters:
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,113
And general information letters, procedures (RP 4) 1,126
Exemption application determination letter rulings under
sections 501, 509, 4940, 4942, and 4947 (RP 10) 2,267
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 2,255
User fees, request for letter rulings (RP 8) 1,237
Technical Advice Memoranda (TAMs) (RP 2) 1,92
GIFT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Technical Advice Memoranda (TAMs) (RP 2) 1,92
INCOME TAX
Adjusted applicable Federal rates under section 1288, changes in
method of determination (Notice 4) 9,527
Applicability of de minimis partner rule (TD 9607) 6,469
Application of section 172(h) including consolidated groups,
correction (Ann 6) 3,307
Awards for information relating to detecting underpay-
ments of tax or violations of the Internal Revenue laws
(REG–141066–09) 3,289
Bonds:
Qualified Zone Academy Bondslimitation for year 2012 and
2013 (Notice 3) 7,484
Qualified exempt facility bonds and qualified residential
rental projects (Notice 9) 9,529
Business use of home, optional safe harbor method for expenses
(RP 13) 6,478
Cost-of-living adjustments for inflation for 2013 (RP 15) 5,444
Deductions for qualified film and television production costs (TD
9603) 3,273
2013–9 I.R.B.ivFebruary 25, 2013

INCOME TAX—Cont.
E-signature standards (Ann 8) 4,440
Estimated tax penalty relief for farmers and fishermen (Notice 5)
9,529
Examination of returns and claimsfor return, credit, or abate-
ments, determination of correct tax liability (RP 16) 7,488
Exceptions to loss transaction filter (RP 11) 2,269
Forms:
W-2 and W-3 (RP 18) 8,503
941, Schedule B (Form 941) and Schedule R (Form 941),
correction (Ann 11) 6,483
1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G, re-
quirements for filing electronically, correction (Ann 3) 2,
271
Guidance to tax return preparersconsents to disclose and con-
sents to use tax return information in the Form 1040 series,
update to Rev. Proc. 2008–35 (TD 9608) 3,275;(RP14)3,
283
Gross income, per capita payments from proceeds of settlements
of Indian tribal trust cases (Notice 1) 3,281
Information reporting:
Mortgage assistance program (Notice 7) 6,477
By domestic entities under section 6083D (Notice 10) 8,503
Insurance companies:
Interest rate tables (RR 4) 9,520
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2013 (RR 1) 2,252
February 2013 (RR 3) 8,500
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,113
Associate Chief Counsel (International ) (RP 7) 1,233
And information letters issued by Associate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1;
correction (Ann 9) 3,441
Mortgage assistance programs, income exclusion, safe harbor
deduction method (Notice 7) 6,477
Proposed regulations:
26 CFR 1.6042–4, amended; 1.6043–4, amended; 1.6044–5,
amended; 1.6045–2 thru 5, amended; 1.6049–6, amended;
1.6050A–1, amended; 1.6050E–1, amended; 1.6050N–1,
amended; 1.6050P-1, amended; 1.6050S-1, –3, amended;
301.6109–4, added; truncated taxpayer identification num-
bers (REG–148873–09) 7,494
26 CFR 301.7623–1, revised; 301.7623–2 thru –4, added;
301.6103(h)(4)-1, added; awards for information relating
to detecting underpayments of tax or violations of the In-
ternal Revenue laws (REG–141066–09) 3,289
Publications:
1141, General Rules and Specifications for Form W-2 and
W-3 (RP 18) 8,503
INCOME TAX—Cont.
1220, Specifications for Filing Forms 1097, 1098, 1099,
3921, 3922, 5498, 8935, and W-2G Electronically, correc-
tion(Ann3)2,271
4436, General Rules and Specifications for Substitute Form
941 and Schedule B (Form 941), and Schedule R (Form
941), correction (Ann 11) 6,483
Qualified board or exchange (RR 5) 9,525
Qualifying advanced coal project program (Ann 2) 2,271
Regulations:
26 CFR 1.181–0, amended; 1.181–0T, removed; 1.181–1,
amended; 1.181–1T, amended; 1.181–6, amended;
1.181–6T, removed; deductions for qualified film and
television production costs (TD 9603) 3,273
26 CFR 1.704–1(b)(2)(iii)(e), revised; applicability of de min-
ims partner rule (TD 9607) 6,469
26 CFR 301.7216–0, amended; 301.7216–0T, removed;
301.7216–2, amended; 301.7216–2T, removed; guidance
to tax return preparers, consents to disclose and consents to
use tax returns information in the Form 1040 series, update
to Rev. Proc. 2008–35 (TD 9608) 3,275
Substitute forms:
W-2 (Copy A) and W-3 (RP 18) 8,503
941, Schedule B (Form 941) and Schedule R (Form 941),
correction (Ann 11) 6,483
Tangible property, guidance regarding deduction and capitaliza-
tion of expenditures related to, corrections (Ann 7) 3,308;
(Ann 3) 4,271
Tax conventions:
U.S.-Norway agreement regarding the sourcing of remunera-
tion for government servicesand social security payments
(Ann 5) 3,306
Technical Advice Memoranda (TAMs) (RP 2) 1,92
Truncated taxpayer identification numbers (REG–148873–09) 7,
494
SELF-EMPLOYMENT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann9)3,441
Technical Advice Memoranda (TAMs) (RP 2) 1,92
February 25, 2013v2013–9 I.R.B.

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