Internal Revenue Bulletin 2012-44 (PDF rendition): IRS Announcements

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Bulletin No. 201
2-44
October 29, 2012
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.
EMPLOYEE PLANS
Notice 2012–64, page 528.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted
average interest rate for plan years beginning in October
2012; the 24-month average segment rates; the funding tran-
sitional segment rates applicable for October 2012; and the
minimum present value transitional rates for September 2012.
The rates in this notice reflect certain changes implemented
by the Moving Ahead for Progress in the 21st Century Act,
Public Law 112–141 (MAP-21).
EXEMPT ORGANIZATIONS
Announcement 2012–41, page 532.
This announcement provides notice of public hearing on pro-
posed regulations, (REG–130266–11, 2012–32 I.R.B. 126),
that provide guidance regarding the requirements for charita-
ble hospital organizations relating to financial assistance and
emergency medical care policies, charges for certain care pro-
vided to individual eligible for financial assistance, and billing
and collections under section 501 of the Code. Announce-
ments 2012–29 and 2012–38 corrected. A public hearing is
scheduled for December 5, 2012.
Fi
nding Lists begin on page ii.
Index for July through October 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.
October 29, 20122012–44 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2012–64
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in ef-
fect for plan years beginning before 2008.
It also provides guidance on the cor-
porate bond monthly yield curve (and
the corresponding spot segment rates),
and the 24-month average segment rates
under § 430(h)(2). In addition, this no-
tice provides guidance as to the interest
rate on 30-year Treasury securities un-
der § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the min-
imum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007. These rates reflect
certain changes implemented by the Mov-
ing Ahead for Progress in the 21st Century
Act, Public Law 112–141 (MAP–21).
MAP–21 provides that for purposes of
§ 430(h)(2), the segment rates are limited
by the applicable maximum percentage or
the applicable minimum percentage based
on the average of segment rates over a 25
year period.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections412(b)(5)(B)(ii)and
412(l)(7)(C)(i) provide that the interest
rates used to calculate current liability
and to determine the required contribution
under § 412(l) for plan years beginning
in 2004 through 2007 must be within a
permissible range based on the weighted
average of the rates of interest on amounts
invested conservatively in long term in-
vestment grade corporate bonds during the
4-year period ending on the last day before
the beginning of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
September 2012 is 4.05 percent. Pursuant
to Notice 2004–34, the Service has de-
termined this rate as the average of the
monthly yields for the included corporate
bond indices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
October2012
5.20
4.68
5.20
YIELD CURVE AND SEGMENT
RATES
Generally, except for certain plans
under sections 104 and 105 of the Pen-
sion Protection Act of 2006, § 430 of
the Code specifies the minimum funding
requirements that apply to single em-
ployer plans pursuant 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 provision, present value is generally
determined using three 24-month average
interest rates (“segment rates”), each of
which applies to cash flows during speci-
fied periods. To the extent provided under
§ 430(h)(2)(C)(iv), these segment rates are
adjusted by the applicable percentage 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. However, 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, 2007–2 C.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. Pursuant
to Notice 2007–81, the monthly corporate
bond yield curve derived from September
2012 data is in Table I at the end of this
notice. The spot first, second, and third
segment rates for the month of Septem-
ber 2012 are, respectively, 1.02, 3.71,
and 4.67. The three 24-month average
corporate bond segment rates applicable
for October 2012, without adjustment by
the applicable percentage of the 25-year
average segment rates, are as follows:
2
4-MonthSegmentRatesWithoutAdjustmentby25-YearAverageSegmentRates
First
Segment
Second
Segment
Third
Segment
1.72
4.585.67
2012–44 I.R.B.528October 29, 2012

For plan years beginning in 2012, the
24-month average segment rates deter-
mined under § 430(h)(2)(C)(iv) must be
not less than 90% nor greater than 110%
of the 25-year average segment rates. Pur-
suant to Notice 2012–55, 2012–36 I.R.B.
332, the first, second, and third 25-year
segment rates applicable for plan years
beginning in 2012 are 6.15, 7.61, and
8.35, respectively. Therefore, for plan
years beginning in 2012, the three adjusted
24-month average corporate bond segment
rates applicable for October 2012, taking
into account the applicable percentage of
the 25-year average segment rates, are as
follows:
Adjusted 24-Month Average Segment Rates,
U
singApplicablePercentageof25-YearAverageSegmentRates
Applicable
Month
For Plan
Years
Beginning
in
First
Segment
Second
Segment
Third
Segment
October 20122012
5.546.857.52
The 25-year average segment rates for
the period ending September 30, 2012
have not been determined yet. The Ser-
vice will issue additional guidance on the
October 2012 adjusted 24-month average
segment rates applicable for plan years
beginning in 2013 when those 25-year
average segment rates are determined.
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the appli-
cable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury se-
curities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
bleinterestrateforamonthistheannual
rate of interest on 30-year Treasury secu-
rities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Treasury
securities for September 2012 is 2.88 per-
cent. The Service has determined this rate
as the average of the daily determinations
of yield on the 30-year Treasury bond ma-
turing in August 2042.
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
Section 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation
described in section 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 percent
below the weighted average of the rates of
interest on 30-year Treasury securities dur-
ing 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 following rates
were determined for plan years beginning
in the month shown below.
For Plan Years
Beginning inPermissible Range
MonthYear
30-Year
Treasury
Weighted
Average90%to105%
October20123.693.323.88
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. For plan years beginning in
2008 through 2011, the applicable interest
rates are the monthly spot segment rates
blended with the applicable rate under
§ 417(e)(3)(A)(ii)(II) as in effect for plan
years beginning in 2007. Notice 2007–81
provides guidelines for determining the
minimum present value segment rates.
Pursuant to that notice, the minimum
present value transitional segment rates
determined for September 2012, taking
into account the September 2012 30-year
Treasury rate of 2.88 stated above, are as
follows:
October 29, 20125292012–44 I.R.B.

For Plan
Years
Beginning in
First
Segment
Second
Segment
Third
Segment
20111.39
3.54
4.31
20121.023.714.67
20131.023.714.67
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities
Division. Mr. Montanaro may be e-mailed
atRetirementPlanQuestions@irs.gov.
2012–44 I.R.B.530October 29, 2012

Table I
Monthly Yield Curve for September 2012
Derived from September 2012 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.5
0.36
20.54.5140.5
4.69
60.5
4.76
80.5
4.80
1.0
0.54
21.0
4.52
41.04.6961.04.7681.04.80
1.5
0.71
21.54.5341.5
4.69
61.5
4.76
81.5
4.80
2.0
0.85
22.0
4.53
42.04.7062.04.7682.04.80
2.5
0.97
22.54.5442.5
4.70
62.5
4.76
82.5
4.80
3.01.0823.04.5443.04.7063.04.7783.04.80
3.5
1.20
23.54.5543.5
4.70
63.5
4.77
83.5
4.80
4.01.3324.0
4.55
44.04.7064.04.7784.04.80
4.5
1.47
24.54.5644.5
4.71
64.5
4.77
84.5
4.80
5.0
1.64
25.04.5645.0
4.71
65.0
4.77
85.0
4.80
5.5
1.81
25.54.5745.5
4.71
65.5
4.77
85.5
4.80
6.02.0026.04.5746.04.7166.04.7786.04.80
6.5
2.20
26.54.5846.5
4.72
66.5
4.77
86.5
4.80
7.02.4027.0
4.58
47.04.7267.04.7787.04.80
7.52.5927.54.5947.5
4.72
67.5
4.78
87.5
4.81
8.02.7928.0
4.59
48.04.7268.04.7888.04.81
8.5
2.97
28.5
4.60
48.5
4.72
68.5
4.78
88.5
4.81
9.03.1429.04.6049.04.7369.04.7889.04.81
9.5
3.31
29.5
4.61
49.5
4.73
69.5
4.78
89.5
4.81
10.03.4630.04.61
50.0
4.7370.04.7890.04.81
10.53.5930.5
4.62
50.5
4.73
70.5
4.78
90.5
4.81
11.03.7231.04.62
51.0
4.7371.04.7891.04.81
11.5
3.83
31.5
4.63
51.5
4.73
71.5
4.78
91.5
4.81
12.03.9332.04.6352.04.7472.04.7892.04.81
12.5
4.02
32.5
4.63
52.5
4.74
72.5
4.78
92.5
4.81
13.04.1033.04.64
53.0
4.7473.04.7893.04.81
13.5
4.17
33.5
4.64
53.5
4.74
73.5
4.79
93.5
4.81
14.04.2234.0
4.6554.0
4.7474.04.7994.04.81
14.5
4.27
34.54.6554.5
4.74
74.5
4.79
94.5
4.81
15.04.3235.04.6555.04.7575.04.7995.04.81
15.54.3535.5
4.66
55.54.7575.5
4.79
95.5
4.81
16.04.3836.04.66
56.04.75
76.04.7996.04.81
16.5
4.41
36.5
4.66
56.54.7576.5
4.79
96.5
4.81
17.04.4337.04.67
57.04.75
77.04.7997.04.81
17.54.4537.5
4.67
57.54.7577.5
4.79
97.5
4.82
18.04.4638.04.6758.04.7578.04.7998.04.82
18.5
4.48
38.5
4.68
58.54.7578.5
4.79
98.5
4.82
19.04.4939.04.68
59.0
4.7679.04.7999.04.82
19.54.5039.5
4.68
59.5
4.76
79.5
4.79
99.5
4.82
20.0
4.51
40.04.6860.04.7680.04.80100.04.82
October 29, 20125312012–44 I.R.B.

Part IV. Items o
fGeneralInterest
Additional Re
quirements for
Charitable Ho
spitals; Hearing;
Correction
Announcement 2012–41
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Noti
ce of public hearing on no-
tice propose
d rulemaking.
SUMMARY: This document changes the
date of a public hearing on proposed regu-
lations (REG–130266–11, 2012–32 I.R.B.
126) that provide guidance regarding the
requirements for charitable hospital orga-
nizations relating to financial assistance
and emergency medical care policies,
charges for certain care provided to indi-
viduals eligible for financial assistance,
and billing and collections.
DATES: The public hearing originally
scheduled for Monday, October 29, 2012,
at 10 a.m. is rescheduled for Wednesday,
December 5, 2012, at 10 a.m. Outlines of
topics to be discussed at the public hearing
must be received by November 7, 2012.
ADDRESSE
S: The public hearing is be-
ingheldi
n the IRS Auditorium, Internal
Revenue S
ervice Building, 1111 Con-
stitution Ave
nue NW, Washington, DC
20224. Due to b
uilding security proce-
dures, visito
rs must enter at the Consti-
tution Avenue
entrance. In addition, all
visitors must
present photo identification
to enter the b
uilding. Send Submissions
to CC:PA:LPD
:PR (REG–130266–11),
Room 5205, In
ternal Revenue Service,
P.O. Box 7604
, Ben Franklin Station,
Washington
, DC 20044. Submissions may
be hand deli
vered Monday through Friday
to CC:PA:LP
D:PR (REG–130266–11),
Couriers De
sk, Internal Revenue Ser-
vice, 1111
Constitution Avenue NW,
Washingto
n, DC or sent electronically
via the Fed
eral eRulemaking Portal at
www.regul
ations.gov(REG–130266–11).
FOR FURTHE
R INFORMATION
CONTACT: C
oncerning the reg-
ulations,
Amber L. Mackenzie or
Preston J
. Quesenberry at (202) 622–6070;
concerni
ng submissions of comments,
the heari
ng and/or to be placed on
the build
ing access list to attend the
hearing,
Oluwafunmilayo Taylor at (202)
622–718
0 (not toll-free numbers).
SUPPLEME
NTARY INFORMATION: A
notice of
public hearing on proposed rule-
making a
ppearing in the Federal Regis-
ter on Mo
nday, October 1, 2012 (77 FR
59878),
announced that apublic hearing
on proposed re
gulations regarding the re-
quirements fo
r charitable hospital organi-
zations, woul
dbeheldonMonday,Octo-
ber 29, 2012, b
eginning at 10 a.m. in the
auditorium of
the Internal Revenue Ser-
vice Buildin
g at 1111 Constitution Avenue
NW, Washingt
on, DC.
Thedateofth
e public hearing has been
changed. The
hearing is now scheduled for
Wednesday, D
ecember 5, 2012, beginning
at 10 a.m. in t
he auditorium of the Inter-
nal Revenue
Service at 1111 Constitution
Avenue NW, W
ashington, DC. Outlines of
topics to be
discussed at the public hearing
must be rece
ived by November 7, 2012.
Because of a
ccess restrictions, the IRS
will not adm
it visitors beyond the imme-
diate entr
ance area more than 30 minutes
before the
hearing starts. For informa-
tion about
having your name placed on the
building a
ccess list to attend the hearing,
see the FO
R FURTHER INFORMATION
CONTACT s
ection of this document.
LaNita Va
nDyke,
Chief,
Publicat
ions and Regulations Branch,
Legal Pro
cessing Division,
Associa
te Chief Counsel
(Proced
ure and Administration).
(Filed by the Office of the Federal Register on October 15,
2012, 8:45 a.m., and published in the issue of the Federal
Registe
r for October 16, 2012, 77 F.R 63287)
2012–44 I.R.B.532October 29, 2012

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.
October 29, 2012i2012–44 I.R.B.

Numerical Finding List
1
Bulletins 2012–27 through 2012–44
Announcements:
2012-26, 2012-27 I.R.B.8
2012-27, 2012-27 I.R.B.10
2012-28, 2012-27 I.R.B.10
2012-29, 2012-42 I.R.B.500
2012-30, 2012-34 I.R.B.314
2012-31, 2012-34 I.R.B.315
2012-32, 2012-35 I.R.B.325
2012-33, 2012-35 I.R.B.325
2012-34, 2012-36 I.R.B.334
2012-35, 2012-38 I.R.B.356
2012-38, 2012-43 I.R.B.527
2012-41, 2012-44 I.R.B.532
Notices:
2012-39, 2012-31 I.R.B.95
2012-44, 2012-28 I.R.B.45
2012-45, 2012-29 I.R.B.59
2012-46, 2012-30 I.R.B.86
2012-47, 2012-31 I.R.B.98
2012-48, 2012-31 I.R.B.102
2012-49, 2012-31 I.R.B.119
2012-50, 2012-31 I.R.B.121
2012-51, 2012-33 I.R.B.150
2012-52, 2012-35 I.R.B.317
2012-53, 2012-35 I.R.B.317
2012-55, 2012-36 I.R.B.332
2012-56, 2012-39 I.R.B.370
2012-57, 2012-40 I.R.B.424
2012-58, 2012-41 I.R.B.436
2012-59, 2012-41 I.R.B.443
2012-60, 2012-41 I.R.B.445
2012-61, 2012-42 I.R.B.479
2012-62, 2012-42 I.R.B.489
2012-63, 2012-42 I.R.B.496
2012-64, 2012-44 I.R.B.528
Proposed Regulations:
REG-126770-06, 2012-38 I.R.B.347
REG-138367-06, 2012-40 I.R.B.426
REG-101812-07, 2012-34 I.R.B.311
REG-134042-07, 2012-27 I.R.B.5
REG-140668-07, 2012-43 I.R.B.501
REG-153627-08, 2012-29 I.R.B.60
REG-136491-09, 2012-35 I.R.B.321
REG-138489-09, 2012-38 I.R.B.355
REG-125570-11, 2012-30 I.R.B.93
REG-130266-11, 2012-32 I.R.B.126
REG-134935-11, 2012-29 I.R.B.64
REG-141832-11, 2012-28 I.R.B.54
REG-107889-12, 2012-28 I.R.B.53
REG-113738-12, 2012-29 I.R.B.66
Revenue Procedures:
2012-28, 2012-27 I.R.B.4
2012-29, 2012-28 I.R.B.49
2012-30, 2012-33 I.R.B.165
2012-31, 2012-33 I.R.B.256
2012-32, 2012-34 I.R.B.267
2012-33, 2012-34 I.R.B.272
2012-34, 2012-34 I.R.B.280
2012-35, 2012-37 I.R.B.341
2012-36, 2012-39 I.R.B.374
2012-37, 2012-41 I.R.B.449
2012-39, 2012-41 I.R.B.470
2012-40, 2012-40 I.R.B.424
Revenue Rulings:
2012-19, 2012-28 I.R.B.16
2012-20, 2012-27 I.R.B.1
2012-21, 2012-32 I.R.B.123
2012-23, 2012-39 I.R.B.359
2012-24, 2012-36 I.R.B.329
2012-25, 2012-37 I.R.B.337
2012-26, 2012-39 I.R.B.358
2012-27, 2012-41 I.R.B.435
2012-28, 2012-42 I.R.B.476
2012-29, 2012-42 I.R.B.475
Treasury Decisions:
9591, 2012-28 I.R.B.32
9592, 2012-28 I.R.B.41
9593, 2012-28 I.R.B.17
9594, 2012-29 I.R.B.57
9595, 2012-30 I.R.B.71
9596, 2012-30 I.R.B.84
9597, 2012-34 I.R.B.258
9598, 2012-38 I.R.B.343
9599, 2012-40 I.R.B.417
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin
2012–26, dated June 25, 2012.
2012–44 I.R.B.iiOctober 29, 2012

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2012–27 through 2012–44
Announcements:
83-196
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
85-141
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
2008-105
Modified and superseded by
Ann. 2012-34, 2012-36 I.R.B.334
2012-29
Corrected by
Ann. 2012-41, 2012-44 I.R.B.532
2012-38
Corrected by
Ann. 2012-41, 2012-44 I.R.B.532
Notices:
2009-24
Amplified by
Notice 2012-51, 2012-33 I.R.B.150
2011-81
Superseded by
Notice 2012-63, 2012-42 I.R.B.496
2012-51
Amplified by
Notice 2012-51, 2012-33 I.R.B.150
Proposed Regulations:
REG-100276-97
Withdrawn by
Ann. 2012-27, 2012-27 I.R.B.10
REG-130266-11
Hearing scheduled by
Ann. 2012-38, 2012-43 I.R.B.527
Ann. 2012-29, 2012-42 I.R.B.500
Hearing rescheduled by
Ann. 2012-41, 2012-44 I.R.B.532
Revenue Procedures:
94-22
Modified and superseded by
Rev. Proc. 2012-35, 2012-37 I.R.B.341
95-15
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
97-27
Modified by
Rev. Proc. 2012-39, 2012-41 I.R.B.470
Revenue Procedures— Continued:
98-32
Modified and superseded by
Rev. Proc. 2012-33, 2012-34 I.R.B.272
2007-38
Modified and superseded by
Rev. Proc. 2012-32, 2012-34 I.R.B.267
2011-14
Clarified and modified by
Rev. Proc. 2012-39, 2012-41 I.R.B.470
2011-40
Superseded by
Rev. Proc. 2012-30, 2012-33 I.R.B.165
2011-50
Superseded by
Rev. Proc. 2012-36, 2012-39 I.R.B.374
Treasury Decisions:
9752
Corrected by
Ann. 2012-35, 2012-38 I.R.B.356
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin 2012–26, dated June 25, 2012.
October 29, 2012iii2012–44 I.R.B.

INDEX
Internal Revenue Bulletins 2012–27 through
2012–44
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
Amendment of prohibited payment option under defined sin-
gle–employer defined benefit plan of plan sponsor in bank-
ruptcy (REG–113738–12) 29,66
Application of section 162(m)(4)(C) to dividends and dividend
equivalents (RR 19) 28,16
Defined benefit plans funding (Notice 61) 42,479
Election to include in gross income in year of transfer (RP 29)
28,49
Fast track settlement for TE/GE taxpayers (Ann 34) 36,334
Full funding limitations, weighted average interest rates, seg-
ment rates for:
July 1, 2012 (Notice 47) 31,98
August 1, 2012 (Notice 53) 35,317
September 1, 2012 (Notice 56) 39,370
October 1, 2012 (Notice 64) 44,528
Funding segment rates, 25–yearaverage segment rates and ad-
justed 24–month average segment rates used for pension fund-
ing (Notice 55) 36,332
Proposed Regulations:
26 CFR 1.411(d)–4, amended; amendment of prohibited pay-
ment option under defined single–employer defined benefit
plan of plan sponsor in bankruptcy (REG–113738–12) 29,
66
26 CFR 1.6081–11, amended; 301.6057–1, amended; report-
ing and notice requirements for deferred vested benefits un-
der section 6057 (REG–153627–08) 29,60
Reporting and notice requirementsfor deferred vested benefits
under section 6057 (REG–153627–08) 29,60
Revision of Rev. Proc. 94–22 (RP 35) 37,342
Underfunded plans, notice requirements (Notice 46) 30,86
EMPLOYMENT TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Revisions to Rev. Proc. 98–32 (RP 33) 34,272
Third party payer issues and reporting agents, revisions to Rev.
Proc. 2007–38 (RP 32) 34,267
Wage recharacterization revenue ruling (RR 25) 37,337
ESTATE TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Portability of a deceased spousal unused exclusion amount (TD
9593) 28,17; (REG–141832–11) 28,54
Proposed Regulations:
26 CFR 20.2001–2, added; 20.2010–0, thru –3, added; 25
CFR 25.2505–0, thru –2, added; portability of a deceased
spousal unused exclusion amount (REG–141832–11) 28,
54
Regulations:
26 CFR 20.2001–2T, added; 20.2010–0T, thru –2T, added;
25.2505–0T, thru –3T, added; 602.101, amended; porta-
bility of a deceased spousal unused exclusion amount (TD
9593) 28,17
Valuation of certain farm, etc., real property under section 2032A
(RR 26) 39,358
EXCISE TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Capital loss carrybacks and carryovers (RR 29) 42,475
Determining full-time employees for purposes of shared re-
sponsibility for employers regarding health coverage, section
4980H (Notice 58) 41,436
Disregarded entities and the indoor tanning services excise tax
(TD 9596) 30,84; (REG–125570–11) 30,93
Guidance on 90–day waiting period limitation under public
health service act section 2708 (Notice 59) 41,443
Highway use tax (Notice 57) 40,424
Proposed Regulations:
26 CFR 1.1361–4, amended; 301.7701–2, amended; disre-
garded entities and the indoortanning services excise tax
(REG–125570–11) 30,93
Regulations:
26 CFR 1.1361–4, amended; 1.1361–4T, added;
301.7701–2T, added; disregarded entities and the indoor
tanning services excise tax (TD 9596) 30,84
EXEMPT ORGANIZATIONS
Additional requirements for charitable hospitals
(REG–130266–11) 32,126; hearing (Ann 29) 42,500;
hearing (Ann 38) 43,527; hearing correction (Ann 41) 44,532
2012–44 I.R.B.ivOctober 29, 2012

EXEMPT ORGANIZATIONS—Cont.
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Fast track settlement for TE/GE taxpayers (Ann 34) 36,334
Proposed Regulations:
26 CFR 1.501(r)–0 thru –7, added; additional requirements
for charitable hospitals (REG–130266–11) 32,126
Revocations (Ann 32) 35,325
GIFT TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Portability of a deceased spousal unused exclusion amount (TD
9593) 28,17; (REG–141832–11) 28,54
Proposed Regulations:
26 CFR 20.2001–2, added; 20.2010–0, thru –3, added; 25
CFR 25.2505–0, thru –2, added; portability of a deceased
spousal unused exclusion amount (REG–141832–11) 28,
54
Regulations:
26 CFR 20.2001–2T, added; 20.2010–0T, thru –2T, added;
25.2505–0T, thru –3T, added; 602.101, amended; porta-
bility of a deceased spousal unused exclusion amount (TD
9593) 28,17
INCOME TAX
Allocation of costs under the simplified methods
(REG–126670–12) 38,347
Application of section 162(m)(4)(C) to dividends and dividend
equivalents (RR 19) 28,16
Application of section 172(h) including consolidated groups
(REG–140668–07) 43,501
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Basis of indebtedness of S corporations to their shareholders
(REG–134042–07) 27,5
Bonds:
Qualified energy conversation bonds (Notice 44) 28,45
Tribal economic development bonds (Notice 48) 31,102
Changes in method of accounting, modifying Rev. Procs. 97–27
and 2011–14 (RP 39) 41,470
Charitable contribution deduction (Notice 52) 35,317
Corporations, regulations under section 367(d) applicable to cer-
tain outbound asset reorganizations (Notice 39) 31,95
Credits:
Low-income housing credit:
Utility allowances submetering (REG–136491–09) 35,
321
Qualifying advance coal project section 48A credit (Notice
51) 33,150
Deductions for entertainment use of business aircraft (TD 9597)
34,258
INCOME TAX—Cont.
Disciplinary actions involving attorneys, certified public ac-
counts, enrolled agents, and enrolled actuaries (Ann 28) 27,
10; (Ann 33) 35,325
Dividend equivalents from sources within the United States; cor-
rection (Ann 35) 38,356
Election to include in gross income in year of transfer (RP 29)
28,49
Financial asset securitization investment trusts (Ann 27) 27,10
Forms:
1097, 1098, 3921, 3922, 5498, 8935, and W-2G, requirements
for filing electronically (RP 30) 33,165
1040-S, Foreign Person’s U.S. Source Income Subject to
Withholding, Electronically, specifications for filing elec-
tronically (RP 36) 39,374
8027, Employer’s Annual Information Return of Tip Income
and Allocated Tips, Electronically (RP 37) 41,449
Gross income, per capital payments from proceeds of settlement
of Indian tribal trust cases (Notice 60) 41,445
Insurance, effectively connected income (RP 40) 30,424
Integrated transactions of qualifying debt (TD 9598) 38,343;
(REG–138489–09) 38,355
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
July 2012 (RR 20) 27,1
August 2012 (RR 21) 32,123
September 2012 (RR 24) 36,329
October 2012 (RR 28) 42,476
Rates:
Underpayment and overpayments, quarter beginning:
October 2012 (RR 23) 39,359
Involuntary conversions, livestock sold on account of drought,
extension of replacement period, list of affected counties (No-
tice 62) 42,489
Marginal production rates, 2012 (Notice 50) 31,121
Modification to consolidated return regulation permitting an
election to treat a liquidationof a target, followed by a recon-
tribution to a new target, as a cross-chain reorganization (TD
9594) 29,57
Overall foreign loss recapture on property dispositions
(REG–134935–11) 29,64
Property traded on an established market (TD 9599) 40,417
Proposed Regulations:
26 CFR 1.42–10, –12, amended; utility allowances submeter-
ing (REG–136491–09) 35,321
26 CFR 1.108–7, amended; 1.366–0, amended; 1.1366–2, –5,
amended; 1.1367–1(h), amended; 1.1367–3, amended; ba-
sis of indebtedness of S corporations to their shareholders
(REG–134042–07) 27,5
26 CFR 1.172(h)–0 thru –5, added; 1.1502–21, amended;
1.1502–72, added; regulations regarding the applica-
tion of section 172(h) including consolidated groups
(REG–140668–07) 43,501
26 CFR 1.988–5T, added; integrated transactions of qualify-
ing debt (REG–138489–09) 38,355
October 29, 2012v2012–44 I.R.B.

INCOME TAX—Cont.
26 CFR 1.263A–0, –2, amended; allocation of costs under the
simplified methods (REG–126670–12) 38,347
26 CFR 1.274–2, amended; 1.274–8, revised; reimbursed en-
tertainment expenses (REG–101812–07) 34,311
26 CFR 1.904–4, amended; 1.904(g)–3, amended; over-
all foreign loss recaptureon property dispositions
(REG–134935–11) 29,64
26 CFR 1.7874–3, added; substantial business activities
(REG–107889–12) 28,53
31 CFR 10.1, .3, .22, .31, .35, .36, .37, .52, .81, .82, .91,
revised; regulations governing practice before the Internal
Revenue Service (REG–138367–06) 40,426
Publications:
1120, Specifications for filing Forms 1097, 1098, 3921, 3922,
5498, 8935, and W-2G, electronically, 2012 revision (RP
30) 33,165
1187, Specifications for filing Form 1042–S, Foreign Person’s
U.S. Source Income Subject to Withholding, Electronically,
revised (RP 36) 39,374
1239, Specifications for filing Forms 8027, Employer’s An-
nual Information Returns of Tip Income and Allocated Tips,
Electronically (RP 37) 41,449
4810, Specifications for filing Form 8955–SSA, Annual Reg-
istration Statement Identifying Separated Participants With
Deferred Vested Benefits, Electronically (RP 34) 34,280
Qualifying income under section 7704(d) (RP 28) 27,4
Regulations:
26 CFR 1.61–21, amended; 1.274–9, –10, added; deductions
for entertainment use of business aircraft (TD 9597) 34,258
26 CFR 1.871–16T, amended; dividend equivalents from
sources within the United States; correction (Ann 35) 38,
356
26 CFR 1.904–0, –1, –2, –7, –8, amended; 1.904(f)–0T, –1T,
–2T, –7T, –8T, removed; 1.904(g)–0, –1, –2, –3, amended;
1.904(g)–0T, –1T, –2T, –3T, removed; 1.502–9, amended,
1.1502–9T, removed; treatment of overall foreign and do-
mestic losses (TD 9595) 30,71
26 CFR 1.988–5, added; integrated transactions of qualifying
debt (TD 9598) 38,343
26 CFR 1.1273–0 thru –2, amended; 1.1274–3, amended;
1.1275–2, –4, amended; 602.101, amended; property
traded on an established market (TD 9599) 40,417
26 CFR 1.1502–13, amended; 1.1502–13T, removed;
602.101, amended; modification to consolidated return
regulation permitting an election to treat a liquidation of a
target, followed by a recontribution to a new target, as a
cross-chain reorganization (TD 9594) 29,57
26 CFR 1.7874–1, amended; 1.7874–1T, removed; 1.7874–2,
added; surrogate foreign corporations (TD 9591) 28,32
26 CFR 1.7874–3T, added; substantial business activities (TD
9592) 28,41
Regulations governing practice before the Internal Revenue Ser-
vice (REG–138367–06) 40,426
Reimbursed entertainment expenses (REG–101812–07) 34,311
Revisions to Rev. Proc. 98–32 (RP 33) 34,272
Revocations, exempt organizations (Ann 32) 35,325
INCOME TAX—Cont.
Section 43 inflation adjustment, 2012 (Notice 49) 31,119
Special per diem rates, 2012–2013 (Notice 63) 42,496
Standard Industry Fare Level (SIFL) (RR 27) 41,435
Substantial business activities (TD 9592) 28,41;
(REG–107889–12) 28,53
Surrogate foreign corporations (TD 9591) 28,32
Tax Conventions:
U.S.-Belgium agreement regarding taxes imposed by Bel-
gium municipalities (Ann 30) 34,314
U.S.-Canada agreement regarding OECD report on the attri-
bution of profits to permanent establishments (Ann 31) 34,
315
U.S.-Netherlands agreement of limited funds for mutual ac-
count (LFMA) (Ann 26) 27,8
Third party payer issues and reporting agents, revisions to Rev.
Proc. 2007–38 (RP 32) 34,267
Treatment of income from certain government bonds for pur-
poses of the passive foreign investment company (PFIC) rules
(Notice 45) 29,59
Treatment of overall foreign and domestic losses (TD 9595) 30,
71
SELF-EMPLOYMENT TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
2012–44 I.R.B.viOctober 29, 2012

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