Internal Revenue Bulletin 2016-26 (PDF rendition): IRS Notices

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

# INTERNAL REVENUE BULLETIN

IRS

## HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

## INCOME TAX

### REG-126452-15, page 1162.

In general, gain on a sale of appreciated property by a corpo-
ration is taxed to the corporation when the sale occurs and to
the shareholders when the proceeds are distributed as divi-
dends. In addition, gain is recognized by a corporation on a
distribution of appreciated property to its shareholders. How-
ever, the corporate organization and reorganization provi-
sions, in certain circumstance, permit a corporation to transfer
property to a controlled corporation and distribute the stock of
the controlled corporation to its shareholders in a transaction
in which no gain is recognized on either the transfer of assets
or the distribution of stock. Concerns arise when these provi-
sions are used to cause property of a corporation to become
property of a real estate investment trust ("REIT") because gain
on the property will rarely be taxed at the corporate level while
the property is in the hands of a REIT. The proposed regula-
tions will cause gain to be recognized, and taxed at the cor-
porate level, in an amount approximating the amount that
would have been recognized if the corporation had disposed of
the property in a taxable sale, exchange, or distribution.

### Rev. Rul. 2016-12, page 1046.

Interest rates: underpayment and overpayments. The rates for
interest determined under section 6621 of the code for the
calendar quarter beginning July 1, 2016, will be 4 percent for
overpayments (3 percent in the case of a corporation), 4
percent for the underpayments, and 6 percent for large cor-
poration underpayments. The rate of interest paid on the por-
tion of a corporation overpayment exceeding $10,000 will be
1.5 percent.

Bulletin No. 2016-26
June 27, 2016

### Rev. Rul. 2016-15, page 1060.

This revenue ruling clarifies that real property held for lease in
a leasing business is real property used in a trade or business.
Accordingly, indebtedness, incurred or assumed, and secured
by such property is qualified real property business indebted-
ness for purposes of section 108(c)(3)(A). Real property held
primarily for sale to customers in the ordinary course of busi-
ness is not real property used in a trade or business for
purposes of section 108(c)(3)(A).

### Rev. Rul. 2016-16, page 1062.

This ruling contains an updated list of all geographical areas
included in the North American area for purposes of section
274 of the Code. Rev. Rul. 2011-26 modified and superseded.

### Rev. Proc. 2016-36, page 1160.

The revenue procedure provides that Notice 2016-39, recov-
ery of investment in the contract from payments received from
a retirement plan by an employee during phased retirement,
does not apply to amounts that are received from a non-
qualified contract. The revenue procedure concludes that in
applying the § 72 regulations cited in the Notice to non-
qualified contracts, the possibility of further contributions to
the contract or a subsequent election under the contract to
receive the benefit payable under the contract in a different
manner generally will not affect the determination of whether
payments are amounts received as an annuity.

(Continued on the next page)

### T.D. 9770, page 1041.

In general, gain on a sale of appreciated property by a corpo-
ration is taxed to the corporation when the sale occurs and to
the shareholders when the proceeds are distributed as divi-
dends. In addition, gain is recognized by a corporation on a
distribution of appreciated property to its shareholders. How-
ever, the corporate organization and reorganization provi-
sions, in certain circumstance, permit a corporation to transfer
property to a controlled corporation and distribute the stock of
the controlled corporation to its shareholders in a transaction
in which no gain is recognized on either the transfer of assets
or the distribution of stock. Concerns arise when these provi-
sions are used to cause property of a corporation to become
property of a real estate investment trust ("REIT") because gain
on the property will rarely be taxed at the corporate level while
the property is in the hands of a REIT. The temporary regula-
tions will cause gain to be recognized, and taxed at the cor-
porate level, in an amount approximating the amount that
would have been recognized if the corporation had disposed of
the property in a taxable sale, exchange, or distribution.

## EMPLOYEE PLANS

### Notice 2016-38, page 1065.

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

### Notice 2016-39, page 1068.

This notice provides guidance as to whether payments re-
ceived by an employee from a qualified defined benefit plan
during phased retirement are amounts received as an annuity
under section 72 of the Internal Revenue Code. This notice
does not apply to amounts received from non-qualified con-
tracts.

## ADMINISTRATIVE

Rev. Proc. 2016-34, page 1072.

Pub. 1167, General Rules and Specifications for Substitute
Forms and Schedules, provides guidelines and general require-
ments for the development, printing, and approval of substitute
tax forms. Rev. Proc. 2015-55 is superseded.

### Rev. Proc. 2016-35, page 1109.

This procedure provides specifications for the private printing
of red-ink substitutes for the 2016 revisions of certain infor-
mation returns. This procedure will be reproduced as the next
revision of Publication 1179. Rev. Proc. 2015-35 is super-
seded.

## The IRS Mission

Provide America's taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.

## Introduction

The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal practices and procedures that affect the rights and duties
of taxpayers are published.

Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings to
taxpayers or technical advice to Service field offices, identify-
ing details and information of a confidential nature are deleted
to prevent unwarranted invasions of privacy and to comply with
statutory requirements.

Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

### Part I .- 1986 Code.

This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.

### Part II .- Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A, Tax
Conventions and Other Related Items, and Subpart B, Legisla-
tion and Related Committee Reports.

Part III .- Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury's Office of the Assistant Sec-
retary (Enforcement).

### Part IV .- Items of General Interest.

This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

## Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

### T.D. 9770

DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1

Certain Transfers of Property
to Regulated Investment
Companies [RICs] and Real
Estate Investment Trusts
[REITs]; Final and Temporary
Regulations

AGENCY: Internal Revenue Service (IRS),
Treasury.

ACTION: Final and temporary regulations.

SUMMARY: This document contains fi-
nal and temporary regulations effecting
the repeal of the General Utilities doctrine
by the Tax Reform Act of 1986 and pre-
venting abuse of the Protecting Americans
from Tax Hikes Act of 2015. The tempo-
rary regulations impose corporate level
tax on certain transactions in which prop-
erty of a C corporation becomes the prop-
erty of a REIT. The temporary regulations
affect RICs, REITs, C corporations the
property of which becomes the property
of a RIC or a REIT, and their sharehold-
ers. The text of these temporary regula-
tions also serves as the text of part of the
proposed regulations in the related notice
of proposed rulemaking (REG-126452-
15) set forth in the Proposed Rules section
in this issue of the Bulletin.

DATES: These regulations are effective
June 7, 2016.

FOR FURTHER INFORMATION

CONTACT: Austin M. Diamond-Jones,
(202) 317-5085 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

#### Background

1\. The General Utilities Doctrine, Its
Repeal, and Section 337(d)

In general, gain on a sale of appreci-
ated property by a C corporation is taxed

to the corporation when the sale occurs
and to the shareholders when the proceeds
are distributed as dividends. Historically
however, a corporation generally could
distribute appreciated property to its
shareholders without recognition of gain
to the corporation under the so-called
General Utilities doctrine arising from in-
terpretations of General Utilities & Oper-
ating Co. v. Helvering, 296 U.S. 200
(1935). See H.R. Rep. No. 99-841, at 198
(1986) (Conf. Rep.); H.R. Rep. No. 99-
426, at 274-75 (1985).

Beginning in 1969, a series of statutory
limitations on the General Utilities doc-
trine were enacted into law. In the Tax
Equity and Fiscal Responsibility Act of
1982, Public Law 97-248, 96 Stat. 324,
current section 311(b) (originally desig-
nated as section 311(d)) was added to the
Internal Revenue Code (Code) and re-
quired a corporation to recognize gain on
appreciated property distributed to a
shareholder in redemption of shares. Leg-
islation enacted in 1984 required gain rec-
ognition for all non-liquidating distribu-
tions. Finally, what remained of the
General Utilities doctrine was repealed
(General Utilities repeal) by the enact-
ment of subtitle D of title VI of the Tax
Reform Act of 1986, Public Law 99-514,
100 Stat. 2085 (the Act), which amended
sections 336 and 337 of the Code to re-
quire corporations to recognize gain or
loss on the distribution of property in con-
nection with complete liquidations other
than certain subsidiary liquidations. Sec-
tion 337(d) was added to the Code by
section 631(a) of the Act and subsequently
amended by section 1006(e)(5)(A)(i)
through (ii) of the Technical and Miscel-
laneous Revenue Act of 1988, Public Law
100-647,102 Stat. 3342 (the Technical
Amendment). This document contains
amendments to 26 CFR part 1 under sec-
tion 337(d).

Section 337(d) directs the Secretary of
the Treasury to prescribe regulations that
are necessary or appropriate to carry out
the purposes of General Utilities repeal,
including "regulations to ensure that such
purposes may not be circumvented
through the use of any provision of law or

regulations (including .. . part III of this
subchapter) or through the use of a regu-
lated investment company, real estate in-
vestment trust, or tax exempt entity. . .. "
The legislative histories of the Act and the
Technical Amendment underscore the
broad grant of regulatory authority and
Congress' expectation that the Treasury
Department and the IRS would issue or
amend regulations as necessary to further
the purposes of General Utilities repeal,
"includ[ing] rules to require the recogni-
tion of gain if appreciated property of a C
corporation is transferred to a RIC or a
REIT in a carryover basis transaction that
would otherwise eliminate corporate level
tax on the built-in appreciation." H.R.
Rep. No. 100-391, at 1199 (1987); see
also H.R. Rep. No. 99-841, at 204 (1986)
(Conf. Rep.). Section 337(d)(1) specifi-
cally refers to ensuring that the purposes
of General Utilities repeal are not circum-
vented through the use of the corporate
organization and reorganization provi-
sions of part III, subchapter C, chapter 1
of the Code, which include section 355.

##### 2. Section 355 and the PATH Act

Section 355 generally provides that, if
certain requirements are satisfied, a cor-
poration may distribute stock (or stock
and securities) of one or more controlled
corporations to its shareholders and secu-
rity holders without the distributing cor-
poration, its shareholders, or its security
holders recognizing income, gain, or loss
on the distribution (a section 355 distribu-
tion). In the course of enacting certain
amendments to section 355 as part of the
Omnibus Budget Reconciliation Act of
1990, Public Law 101-508, 104 Stat.
1388, Congress described section 355 as a
"limited exception to the repeal of the
General Utilities doctrine intended to per-
mit historic shareholders to continue to
carry on their historic corporate busi-
nesses in separate corporations" and
stated that " [t]he present-law provisions
granting tax-free treatment at the corpo-
rate level are particularly troublesome be-
cause they may offer taxpayers an oppor-
tunity to avoid the general rule that

corporate-level tax is recognized when an
asset (including stock of a subsidiary) is
disposed of." 136 Cong. Rec. S15704
(daily ed. Oct 18, 1990).1 Further, Con-
gress noted that " [t]he bill is not intended
to limit in any way the continuing Trea-
sury Department authority to issue regu-
lations to prevent the avoidance of the
repeal of the General Utilities doctrine
through any provision of law or regula-
tions, including section 355." Id. at
S15705.

On December 18, 2015, the President
signed into law the Protecting Americans
Against Tax Hikes Act of 2015 (PATH
Act), enacted as Division Q of the Con-
solidated Appropriations Act, 2016, Pub-
lic Law 114-113, 129 Stat. 2422. Section
311(a) and (b) of the PATH Act added to
the Code sections 355(h) and 856(c)(8),
respectively. Section 355(h)(1) of the
Code provides that section 355 shall not
apply to a distribution if either the distrib-
uting corporation or the controlled corpo-
ration is a REIT. Section 355(h)(2) pro-
vides exceptions permitting a REIT to
distribute the stock of another REIT or of
a taxable REIT subsidiary under certain
conditions. Section 856(c)(8) provides
that a corporation may not elect REIT
status during the ten-year period follow-
ing a section 355 distribution if such cor-
poration was the distributing corporation
or the controlled corporation in that dis-
tribution. Section 311(c) of the PATH Act
provides that sections 355(h) and
856(c)(8) apply to distributions on or after
December 7, 2015, but do not apply to any
distribution pursuant to a transaction de-
scribed in a ruling request initially submit-
ted to the IRS on or before such date,
which request has not been withdrawn and
with respect to which a ruling has not
been issued or denied in its entirety as of
such date.

##### 3. Prior Regulations

In certain cases, General Utilities re-
peal could be circumvented if property of
a C corporation becomes the property of a
RIC or a REIT (converted property) by a
transfer of the converted property from a
C corporation to a RIC or a REIT or by

the qualification of the C corporation as a
RIC or a REIT (either, a conversion trans-
action). A conversion transaction could
result in elimination of the corporate level
of gain in the converted property, includ-
ing gain from the sale of the property,
because RICs and REITs generally are not
subject to tax on income that is distributed
to their shareholders.

The Treasury Department and the IRS
issued Notice 88-19 (1988-1 C.B. 486)
on February 4, 1988. Notice 88-19 an-
nounced the IRS's intention to promulgate
regulations providing that a C corporation
engaging in a conversion transaction
would be treated, for all federal income
tax purposes, as if it had sold all of its
assets at their respective fair market val-
ues (deemed sale treatment) and immedi-
ately liquidated, unless the C corporation
elected to be subject to tax under section
1374 with respect to the C corporation
property (section 1374 treatment). If
elected, section 1374 treatment would
subject the RIC or REIT to corporate-
level taxation on the built-in gain recog-
nized during the ten-year period following
the conversion transaction on the con-
verted property. Temporary regulations
under § 1.337(d)-5T (TD 8872) and a
notice of proposed rulemaking cross-
referencing the temporary regulations
(REG-209135-88) were published in the
Federal Register (65 FR 5775, 65 FR
5805) on February 7, 2000, and reflected
the principles set forth in Notice 88-19.

Additional temporary regulations un-
der §§ 1.337(d)-6T and 1.337(d)-7T (TD
8975) and a notice of proposed rulemak-
ing cross-referencing the temporary regu-
lations (REG-142299-01 and REG-
209135-88) were published in the
Federal Register (67 FR 8, 67 FR 28) on
January 2, 2002. The proposed regulations
cross-referencing §§ 1.337(d)-5T through
-7T, with modifications, were adopted on
March 18, 2003 (TD 9047), and published
as final regulations in the Federal Regis-
ter (68 FR 12817).

##### 4. Current Regulations

The final regulations in §1.337(d)-
6 apply to conversion transactions occur-

ring on or after June 10, 1987, and before
January 2, 2002, and provide that a C
corporation engaging in such a conversion
transaction is subject to deemed sale treat-
ment unless the C corporation elects sec-
tion 1374 treatment with respect to the
converted property. The final regulations
in §1.337(d)-7 apply to conversion trans-
actions occurring on or after January 2,
2002, and provide that the RIC or the
REIT owning the property after the con-
version transaction is subject to section
1374 treatment unless the C corporation
engaging in a conversion transaction
elects deemed sale treatment with respect
to the converted property.

In response to concerns expressed by
commentators (described subsequently),
the Treasury Department and the IRS pub-
lished in the Federal Register (77 FR
22516) on April 16, 2012, a notice of
proposed rulemaking (REG-139991-08)
proposing amendments to §1.337(d)-7.
These amendments (the 2013 amend-
ments) were adopted as final regulations
(TD 9626) and were published in the Fed-
eral Register (78 FR 46805) on August 2,
2013.

The 2013 amendments address two
principal areas of concern. First, the 2013
amendments provide an exception from
the general rule subjecting the RIC or the
REIT to section 1374 treatment in the case
of a transfer of property by a C corpora-
tion to a RIC or a REIT to the extent the
transfer qualifies for nonrecognition treat-
ment under section 1031 (relating to like-
kind exchanges) or section 1033 (relating
to involuntary conversions). The Treasury
Department and the IRS did not extend
this treatment to all exchanged basis trans-
actions, such as exchanges that would oth-
erwise qualify for nonrecognition treat-
ment under section 351 of the Code, out of
concern that such an exception could cre-
ate opportunities to avoid corporate-level
tax on built-in gains.

Second, the 2013 amendments provide
an exception for conversion transactions
in which the C corporation that owned the
converted property is a tax-exempt entity
to the extent that gain would not be sub-
ject to tax if a deemed sale election were
made. In such circumstances, the C cor-

1The bill that resulted in Public Law 101-508, S.3209, was brought to the floor without printing a formal report, and language from the various committees to consider the bill was printed
in the Congressional Record at the request of Senator Sasser to complete the legislative record.

poration is not required to make a deemed
sale election, and the RIC or the REIT is
not subject to section 1374 treatment.

5\. Notice 2015-59 and Revenue
Procedure 2015-43

Congress, the Treasury Department,
and the IRS are aware of transactions in
which a C corporation that does not qual-
ify as a REIT distributes the stock of a
controlled corporation in a transaction in-
tended to qualify under section 355 so that
either the distributing corporation or the
controlled corporation can qualify as a
REIT. In many cases, a C corporation that
owns both assets qualifying as real estate
assets for purposes of part II, subchapter
M, chapter 1 of the Code (REIT-
qualifying assets) and assets that do not so
qualify (non-qualifying assets) transfers
either the REIT-qualifying assets or the
non-qualifying assets to a controlled cor-
poration in exchange for its stock and then
distributes the controlled corporation
stock to its shareholders. Before or after
the distribution, the corporation holding
the REIT-qualifying assets elects REIT
status. If the transaction satisfies the re-
quirements of sections 368(a)(1)(D), 355,
and 361, no gain is recognized on either
the transfer of assets by the distributing
corporation to the controlled corporation
or the distribution of the controlled corpo-
ration stock to the shareholders of the
distributing corporation.

Prior to the enactment of the PATH
Act, the IRS issued Notice 2015-59
(2015-40 I.R.B. 467) and Revenue Pro-
cedure 2015-43 (2015-40 I.R.B. 495) on
September 14, 2015, in part to respond to
the transactions described in the preceding
paragraph. Revenue Procedure 2015-43
provides that the IRS will not ordinarily
issue a ruling relating to the qualification
under section 355 and related provisions
of a distribution in certain circumstances
in which property owned by the distribut-
ing corporation or the controlled corpora-
tion becomes the property of a RIC or a
REIT. Notice 2015-59 states that such
transactions "may circumvent the pur-
poses of Code provisions intended to re-
peal the Supreme Court's decision" in
General Utilities, such as section 337(d).
The Notice also requested comments with
respect to the facts and circumstances rel-

evant to whether such transactions cir-
cumvent the purposes of General Utilities
repeal. The Treasury Department and the
IRS are aware of informal commentary,
but no formal comments have been
received.

#### Explanation of Provisions

The Treasury Department and the IRS
believe that section 1374 treatment im-
poses an appropriate regime for recogniz-
ing built-in gain for many conversion
transactions. The Treasury Department
and the IRS are concerned, however, that
section 1374 treatment may not ade-
quately implement the purposes of Gen-
eral Utilities repeal if a taxpayer effects a
tax-free separation of REIT-qualifying as-
sets from non-qualifying assets in a sec-
tion 355 distribution (the related section
355 distribution) and the REIT-qualifying
assets become the assets of a REIT. After
such transactions, gain on the assets held
by the REIT may not be taxed at the
corporate level because such gain is un-
likely to be recognized within the recog-
nition period during which the REIT is
subject to section 1374 treatment under
the final regulations in § 1.337(d)-7. In
contrast, without a section 355 distribu-
tion, a taxpayer generally could not sepa-
rate REIT-qualifying assets from non-
qualifying assets and cause one
corporation to hold the REIT-qualifying
assets and another corporation to hold the
non-qualifying assets except by means of
a sale or exchange to which section 1001
applies or a distribution to which section
311(b) applies.

Moreover, the REIT and its sharehold-
ers may realize the benefit of appreciation
on converted property without a transac-
tion subject to section 1374 treatment or
otherwise taxable at the corporate level.
For example, a REIT that distributes
rental income on appreciated converted
property to its shareholders may be enti-
tled to a dividends paid deduction under
section 562 and, therefore, effectively
does not pay income tax at the REIT level
on that income, which in many cases will
reflect the appreciation in the value of the
property. Additionally, if the lessee is a C
corporation (such as the other party to the
section 355 distribution), the rental deduc-
tions reduce the C corporation's taxable
income. In such circumstances, the Trea-

sury Department and the IRS have deter-
mined that section 355 does not serve as a
"limited exception to General Utilities re-
peal intended to enable historic sharehold-
ers to carry on their historic businesses in
separate corporations" but rather creates
an "opportunity to avoid the general rule
that corporate-level tax is recognized
when an asset ... is disposed of." 136
Cong. Rec. S15704.

Section 311 of the PATH Act ad-
dresses some of the concerns just de-
scribed. However, the Treasury Depart-
ment and the IRS are concerned that some
variations of the transactions previously
described may continue to be used to cir-
cumvent the purposes of section 311 of
the PATH Act. In particular, there is con-
cern that corporations affiliated with the
distributing corporation or the controlled
corporation could be used to circumvent
the Congressional policy implemented
through section 311 of the PATH Act. The
Treasury Department and the IRS thus
have determined that temporary regula-
tions are necessary to prevent abuses of
sections 355(h) and 856(c)(8) and to fur-
ther the purposes of General Utilities
repeal.

Therefore, the Treasury Department
and the IRS are issuing these temporary
regulations providing that a C corporation
engaging in a conversion transaction in-
volving a REIT within the ten-year period
following a related section 355 distribu-
tion is treated as making an election to
recognize gain and loss as if it had sold all
of the converted property to an unrelated
party at fair market value on the deemed
sale date (as defined in § 1.337(d)-
7(c)(3)). Section 1374 treatment is accord-
ingly not available in these cases as an
alternative to recognizing any gain with
respect to the converted property on the
deemed sale date.

The temporary regulations also provide
that a REIT that is a party to a section 355
distribution occurring within the ten-year
period following a conversion transaction
for which a deemed sale election has not
been made recognizes any remaining un-
recognized built-in gains and losses re-
sulting from the conversion transaction
(after taking into account the impact of
section 1374 in the interim period, as de-
scribed subsequently).

For the taxable year in which the re-
lated section 355 distribution occurs, the
REIT's net recognized built-in gain is the
amount of its net unrealized built-in gain
limitation (as defined in § 1.1374-2(a)(3))
for such taxable year. For this purpose, the
limitations in § 1.1374-2(a)(1) and (2) do
not apply because the net unrealized
built-in gain limitation generally
achieves the effect of a deemed sale
election, adjusted for prior recognized
built-in gains and recognized built-in
losses. As a result, the temporary regu-
lations cause the REIT to recognize any
built-in gains or losses attributable to
time periods in which the REIT was a C
corporation while ensuring that gains
and losses recognized in previous tax-
able years during the recognition period
on which taxes have been paid are ac-
counted for appropriately. The tempo-
rary regulations provide an appropriate
increase to the basis of the converted
property held by the REIT.

Consistent with section 311 of the
PATH Act, the temporary regulations
contain two exceptions. First, the tempo-
rary regulations do not apply if both the
distributing corporation and the controlled
corporation are REITs immediately after
the date of the section 355 distribution and
at all times during the two years thereaf-
ter. Second, the temporary regulations
also do not apply to certain section 355
distributions in which the distributing cor-
poration is a REIT and the controlled cor-
poration is a taxable REIT subsidiary. In
addition, and consistent with the effective
date in section 311(c) of the PATH Act, the
temporary regulations under § 1.337(d)-
7T(f) do not apply to distributions pursuant
to a transaction described in a ruling request
initially submitted to the IRS on or before
December 7, 2015, which request has not
been withdrawn and with respect to which a
ruling has not been issued or denied in its
entirety as of December 7, 2015.

To prevent avoidance, these temporary
regulations apply to predecessors and suc-
cessors of the distributing corporation or
the controlled corporation and to all mem-
bers of the separate affiliated group, within
the meaning of section 355(b)(3)(B), of
which the distributing corporation or the
controlled corporation are members. Prede-
cessors and successors include corporations
that succeed to and take into account

items described in section 381(c) of the
distributing corporation or the con-
trolled corporation, and corporations
having such items to which the distrib-
uting corporation or the controlled cor-
poration succeed and take into account.

The temporary regulations also make a
clarifying amendment to the generally ap-
plicable rules of § 1.337(d)-7 in response
to section 127 of the PATH Act, which
amended Code section 1374(d)(7) to pro-
vide that the term "recognition period"
means the 5-year period beginning with
the first day of the first taxable year for
which a corporation was an S corporation.
The temporary regulations replace the
term "10-year recognition period" with
the new defined term "recognition period"
and clarify that the recognition period is
no longer determined by reference to sec-
tion 1374(d)(7), but is the ten-year period
beginning on the first day of the RIC or
the REIT's first taxable year (in the case
of a conversion transaction that is a qual-
ification of a C corporation as a RIC or a
REIT) or on the date the property is ac-
quired by the RIC or the REIT. As a
result, after August 8, 2016, § 1.337(d)-7
will no longer be affected by section 127
of the PATH Act, which amended section
1374(d)(7) of the Code to shorten the
length of the recognition period from 10
years to 5 years with respect to C corpo-
rations that elect to be, or transfer property
to, S corporations.

## Statement of Availability of IRS Documents

IRS Revenue Procedures, Revenue
Rulings, notices, and other guidance cited
in this document are published in the In-
ternal Revenue Bulletin (or Cumulative
Bulletin) and are available from the Su-
perintendent of Documents, U.S. Govern-
ment Printing Office, Washington, DC
20402, or by visiting the IRS website at
http://www.irs.gov.

## Special Analyses

istrative Procedure Act (APA) (5 U.S.C.
chapter 5) does not apply to these regula-
tions because good cause exists under sec-
tion 553(b)(3)(B) of the APA to dispense
with notice and public comment because
doing so would be contrary to the public
interest. These temporary regulations are
necessary to prevent abuse of section 311
of the PATH Act through certain section
355 distributions that would contradict the
intent of Congress. These temporary reg-
ulations are also necessary to update ex-
isting regulations under § 1.337(d)-7 to
delink the determination of the recogni-
tion period from the rules of section
1374(d)(7) modified by the enactment of
section 127 of the PATH Act. Accord-
ingly, good cause exists for dispensing
with notice and public comment pursuant
to section 553(b) of the APA. In addition,
pursuant to 26 U.S.C. 7805(b)(3) and sec-
tion 553(d)(3) of the APA, the require-
ments in section 553(d) of the APA for a
delayed effective date are inapplicable to
the temporary regulations necessary to
prevent abuse of section 311 of the
PATH Act. For the applicability of the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) refer to the Special Analyses
section of the preamble to the cross-
reference notice of proposed rulemaking
published in the Proposed Rules section
in this issue of the Bulletin. Pursuant to
section 7805(f) of the Internal Revenue
Code, these temporary regulations will
be submitted to the Chief Counsel for
Advocacy of the Small Business Admin-
istration for comment on their impact on
small business.

## Drafting Information

The principal author of these regula-
tions is Austin M. Diamond-Jones, Office
of Associate Chief Counsel (Corporate).
However, other personnel from the Trea-
sury Department and the IRS participated
in their development.

* * * * *

## Amendments to the Regulations

Accordingly, 26 CFR part 1 is
amended as follows:

# PART 1-INCOME TAXES

Paragraph 1. The authority citation for
part 1 is amended by adding an entry in
numerical order to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Section 1.337(d)-7T also issued under
26 U.S.C. 337(d) and 355(h).

* * * * *

Par. 2. Section 1.337(d)-7 is amended
by:

1\. Revising paragraph (a)(1) and add-
ing paragraphs (a)(2)(vi) and (vii).

2\. In paragraph (b)(1)(ii), removing the
language "10-year recognition period"
and adding "recognition period" in its
place wherever it appears.

3\. Revising paragraph (b)(2)(iii).

4\. Redesignating paragraph (b)(4) as
paragraph (b)(5) and adding a new para-
graph (b)(4).

5\. Revising paragraph (c)(1).

6\. Redesignating paragraph (c)(6) as
paragraph (c)(7) and adding a new para-
graph (c)(6).

7\. In paragraph (d)(2)(iii), removing
the language "10-year recognition period"
and adding "recognition period" in its
place wherever it appears.

8\. Redesignating paragraph (f) as para-
graph (g) and adding a new paragraph (f).

9\. In newly redesignated paragraph
(g)(1), removing the language "(f)(2)" and
adding "(g)(2)" in its place.

10\. Revising newly redesignated para-
graph (g)(2).

The additions and revisions read as fol-
lows:

§1.337(d)-7 Tax on property owned by
a C corporation that becomes property
of a RIC or REIT.

(a) General rule. (1) [Reserved]. For
further guidance, see § 1.337(d)-7T(a)(1).

(2) * * *

(vi) through (vii) [Reserved]. For fur-
ther guidance, see § 1.337(d)-7T(a)(2)(vi)
through (vii).

(b) * * *

(2) * * *

(iii) [Reserved]. For further guidance,
see §1.337(d)-7T(b)(2)(iii).

* * * * *

(4) [Reserved]. For further guidance,
see §1.337(d)-7T(b)(4).

* * * * *

(1) [Reserved]. For further guidance, see
§ 1.337(d)-7T(c)(1).

* * * * *

(6) [Reserved]. For further guidance,
see §1.337(d)-7T(c)(6).

* * * * *

(f) [Reserved]. For further guidance,
see §1.337(d)-7T(f).

(g) * * *

(2) Special rules-(i) Conversion
transactions occurring on or after August
2, 2013 and certain prior conversion
transactions. Paragraphs (a)(2)(i) through
(v), (d)(1), (d)(3), (d)(4), and (e) of this
section apply to conversion transactions
that occur on or after August 2, 2013.
However, taxpayers may apply para-
graphs (a)(2)(i) through (v), (d)(1), (d)(3),
(d)(4), and (e) of this section to conver-
sion transactions that occurred before Au-
gust 2, 2013. For conversion transactions
that occurred on or after January 2, 2002
and before August 2, 2013, see
§ 1.337(d)-7 as contained in 26 CFR part
1 in effect on April 1, 2013.

(ii) through (iii) [Reserved]. For further
guidance, see § 1.337(d)-7T(g)(2)(ii)
through (iii).

Par. 3. Section 1.337(d)-7T is added to
read as follows:

§ 1.337(d)-7T Tax on property owned
by a C corporation that becomes
property of a RIC or REIT.

(a) General Rule-(1) Property owned
by a C corporation that becomes property
of a RIC or REIT. If property owned by a
C corporation (as defined in §1.337(d)-
7(a)(2)(i)) becomes the property of a RIC
or a REIT in a conversion transaction (as
defined in § 1.337(d)-7(a)(2)(ii)), then
section 1374 treatment will apply as de-
scribed in §1.337(d)-7(b) and paragraph
(b) of this section, unless the C corpora-
tion elects, or is treated as electing,
deemed sale treatment with respect to the
conversion transaction as provided in
§ 1.337(d)-7(c) and paragraph (c) of this
section. See § 1.337(d)-7(d) for excep-
tions to this paragraph (a).

(2)(i) through (v) [Reserved]. For fur-
ther guidance, see § 1.337(d)-7(a)(2)(i)
through (v).

(vi) Section 355 distribution. The term
section 355 distribution means any distri-

bution to which section 355 (or so much
of section 356 as relates to section 355)
applies, including a distribution on
which the distributing corporation rec-
ognizes gain pursuant to sections 355(d)
or 355(e).

(vii) Converted property. The term
converted property means property owned
by a C corporation that becomes the prop-
erty of a RIC or a REIT.

(b)(1) through (2)(ii) [Reserved]. For fur-
ther guidance, see §1.337(d)-7(b)(1) through
(2)(ii).

(iii) Recognition period. For purposes
of applying the rules of section 1374 and
the regulations thereunder, as modified by
§ 1.337(d)-7(b) and paragraph (b) of this
section, the term recognition period
means the 10-year period beginning-

(A) In the case of a conversion trans-
action that is a qualification of a C corpo-
ration as a RIC or a REIT, on the first day
of the RIC's or the REIT's first taxable
year; and

(B) In the case of other conversion
transactions, on the day the property is
acquired by the RIC or the REIT.

(3) [Reserved]. For further guidance,
see §1.337(d)-7(b)(3).

(4) Section 355 distribution following a
conversion transaction-(i) In general. If
a REIT is described in paragraph (f)(1) of
this section and the related section 355
distribution (as defined in paragraph
(f)(1)(i) of this section) follows a conver-
sion transaction, then for the taxable year
in which the related section 355 distribu-
tion occurs, § 1.1374-2(a)(1) and (2) (as
modified by § 1.337(d)-7(b)(2)(i)) do not
apply, and the REIT's net recognized
built-in gain for such taxable year is the
amount of its net unrealized built-in gain
limitation (as defined in § 1.1374-
2(a)(3)) for such taxable year.

(ii) Basis adjustment-(A) In general.
If a REIT recognizes gain under para-
graph (b)(4)(i) of this section, the aggre-
gate basis of the converted property held
by the REIT at the end of the taxable year
in which the related section 355 distribu-
tion occurs shall be increased by an
amount equal to the amount of gain so
recognized, increased by the amount of
the REIT's recognized built-in loss for
such taxable year, and reduced by the
amount of the REIT's recognized built-in

gain and recognized built-in gain carry-
over for such taxable year.

(B) Allocation of basis increase. The
aggregate increase in basis by reason of
paragraph (b)(4)(ii)(A) of this section
shall be allocated among the converted
property in proportion to their respective
built-in gains on the date of the conver-
sion transaction.

(5) [Reserved]. For further guidance,
see § 1.337(d)-7(b)(5).

(c) Election of deemed sale treat-
ment-(1) In general. Section 1.337(d)-
7(b) and paragraph (b) of this section do
not apply if the C corporation that quali-
fies as a RIC or a REIT or transfers prop-
erty to a RIC or a REIT makes the election
described in § 1.337(d)-7(c)(5) or is
treated as making such election under
paragraph (c)(6) of this section. A C cor-
poration that makes, or is treated as mak-
ing, such an election recognizes gain and
loss as if it sold the converted property to
an unrelated party at fair market value on
the deemed sale date (as defined in §
1.337(d)-7(c)(3)). See § 1.337(d)-7(c)(4)
concerning limitations on the use of loss in
computing gain. Section 1.337(d)-7(c) and
this paragraph (c) do not apply if their ap-
plication would result in the recognition of a
net loss. For this purpose, net loss is the
excess of aggregate losses over aggregate
gains (including items of income), without
regard to character.

(2) through (5) [Reserved]. For further
guidance, see § 1.337(d)-7(c)(2) through
(5).

(6) Conversion transaction following a
section 355 distribution. A C corporation
described in paragraph (f)(1) of this sec-
tion is treated as having made the election
under § 1.337(d)-7(c)(5) with respect to a
conversion transaction if the conversion
transaction occurs following the related
section 355 distribution (as defined in
paragraph (f)(1)(i) of this section) and the
C corporation has not made such election.

(7) through (e) [Reserved]. For fur-
ther guidance, see § 1.337(d)-7(c)(7)
through (e).

(f) Conversion transaction preceding
or following a section 355 distribution-
(1) In general. A C corporation or a REIT
is described in this paragraph (f)(1) if-

(i) The C corporation or the REIT en-
gages in a conversion transaction involv-
ing a REIT during the twenty-year period

beginning on the date that is ten years
before the date of a section 355 distribu-
tion (the related section 355 distribution);
and

(ii) The C corporation or the REIT
engaging in the related section 355 distri-
bution is either-

(A) The distributing corporation or the
controlled corporation, as those terms are
defined in section 355(a)(1); or

(B) A member of the separate affiliated
group (as defined in section 355(b)(3)(B))
of the distributing corporation or the con-
trolled corporation.

(2) Predecessors and successors. For
purposes of this paragraph (f), any refer-
ence to a controlled corporation or a dis-
tributing corporation includes a reference
to any predecessor or successor of such
corporation. Predecessors and successors
include corporations which succeed to and
take into account items described in sec-
tion 381(c) of the distributing corporation
or the controlled corporation, and corpo-
rations having such items to which the
distributing corporation or the controlled
corporation succeeded and took into ac-
count.

(3) Exclusion of certain conversion
transactions. A C corporation or a REIT is
not described in paragraph (f)(1) of this
section if-

(i) The distributing corporation and the
controlled corporation are both REITs im-
mediately after the related section 355 dis-
tribution (including by reason of elections
under section 856(c)(1) made after the
related section 355 distribution that are
effective before the related section 355
distribution) and at all times during the
two years thereafter;

(ii) Section 355(h)(1) does not apply to
the related section 355 distribution by rea-
son of section 355(h)(2)(B); or

(iii) The related section 355 distribu-
tion occurred before December 7, 2015 or
is described in a ruling request referred to
in section 311(c) of Division Q of the
Consolidated Appropriations Act, 2016,
Public Law 114-113, 129 Stat. 2422.

(g) Effective/Applicability date. (1)
[Reserved]. For further guidance, see §
1.337(d)-7(g)(1).

(2) Special rules. (i) [Reserved]. For
further guidance, see § 1.337(d)-7(g)(2)(i).

(ii) Conversion transactions occurring
on or after June 7, 2016. Paragraphs

(a)(1), (a)(2)(vi) and (vii), (b)(4), (c)(1),
(c)(6), and (f) of this section apply to
conversion transactions occurring on or
after June 7, 2016 and to conversion trans-
actions and related section 355 distribu-
tions for which the conversion transaction
occurs before, and the related section 355
distribution occurs on or after, June 7,
2016. For conversion transactions that oc-
curred on or after January 2, 2002 and
before June 7, 2016, see § 1.337(d)-7 as
contained in 26 CFR part 1 in effect on
April 1, 2016.

(iii) Recognition period. Paragraphs
(b)(1)(ii), (b)(2)(iii), and (d)(2)(iii) of this
section applies to conversion transactions
that occur on or after August 8, 2016. For
conversion transactions that occurred on
or after January 2, 2002 and before Au-
gust 8, 2016, see § 1.337(d)-7 as con-
tained in 26 CFR part 1 in effect on April
1, 2016.

(h) Expiration date. The applicability
of this section expires on June 7, 2019.

John Dalrymple,
Deputy Commissioner for
Services and Enforcement.

Approved: May 11, 2016.

Mark J. Mazur,
Assistant Secretary of the
Treasury (Tax Policy).

(Filed by the Office of the Federal Register on June 7, 2016,
8:45 a.m., and published in the issue of the Federal Register
for June 8, 2016, 81 F.R. 36793)

# Section 6621 .- Determination of Rate of Interest

26 CFR 301.6621-1: Interest rate.

Rev. Rul. 2016-12

Section 6621 of the Internal Revenue
Code establishes the interest rates on
overpayments and underpayments of tax.
Under section 6621(a)(1), the overpay-
ment rate is the sum of the federal short-
term rate plus 3 percentage points (2 per-
centage points in the case of a
corporation), except the rate for the por-
tion of a corporate overpayment of tax

exceeding $10,000 for a taxable period is
the sum of the federal short-term rate plus
0.5 of a percentage point. Under section
6621(a)(2), the underpayment rate is the
sum of the federal short-term rate plus 3
percentage points.

Section 6621(c) provides that for pur-
poses of interest payable under section
6601 on any large corporate underpay-
ment, the underpayment rate under section
6621(a)(2) is determined by substituting
"5 percentage points" for "3 percentage
points."

See section 6621(c) and section
301.6621-3 of the Regulations on Proce-
dure and Administration for the definition
of a large corporate underpayment and for
the rules for determining the applicable
date. Section 6621(c) and section
301.6621-3 are generally effective for pe-
riods after December 31, 1990.

Section 6621(b)(1) provides that the
Secretary will determine the federal short-
term rate for the first month in each cal-
endar quarter. Section 6621(b)(2)(A) pro-
vides that the federal short-term rate
determined under section 6621(b)(1) for
any month applies during the first calen-
dar quarter beginning after that month.
Section 6621(b)(3) provides that the fed-
eral short-term rate for any month is the
federal short-term rate determined during
that month by the Secretary in accordance

with section 1274(d), rounded to the near-
est full percent (or, if a multiple of 1/2 of
1 percent, the rate is increased to the next
highest full percent).

Notice 88-59, 1988-1 C.B. 546, an-
nounced that in determining the quarterly
interest rates to be used for overpayments
and underpayments of tax under section
6621, the Internal Revenue Service will
use the federal short-term rate based on
daily compounding because that rate is
most consistent with section 6621 which,
pursuant to section 6622, is subject to
daily compounding.

The federal short-term rate determined
in accordance with section 1274(d) during
April 2016 is the rate published in Reve-
nue Ruling 2016-11, 2016-19 IRB 717
to take effect beginning May 1, 2016. The
federal short-term rate, rounded to the
nearest full percent, based on daily com-
pounding determined during the month of
April 2016 is 1 percent. Accordingly, an
overpayment rate of 4 percent (3 percent
in the case of a corporation) and an un-
derpayment rate of 4 percent are estab-
lished for the calendar quarter beginning
July 1, 2016. The overpayment rate for the
portion of a corporate overpayment ex-
ceeding $10,000 for the calendar quarter
beginning July 1, 2016 is 1.5 percent. The
underpayment rate for large corporate un-
derpayments for the calendar quarter be-

ginning July 1, 2016, is 6 percent. These
rates apply to amounts bearing interest
during that calendar quarter.

Pursuant to section 6654(a)(1), the 4
percent rate also applies to estimated tax
underpayments for the third calendar
quarter in 2016. In addition, pursuant to
section 6603(d)(4), the rate of interest on
section 6603 deposits is 1 percent for the
third calendar quarter in 2016.

Interest factors for daily compound in-
terest for annual rates of 1.5 percent, 3
percent, 4 percent and 6 percent are pub-
lished in Tables 56, 59, 61 and 65 of Rev.
Proc. 95-17, 1995-1 C.B. 610, 613, 615
and 619.

Annual interest rates to be com-
pounded daily pursuant to section 6622
that apply for prior periods are set forth in
the tables accompanying this revenue
ruling.

## DRAFTING INFORMATION

The principal author of this revenue
ruling is Deborah Colbert-James of the
Office of Associate Chief Counsel (Proce-
dure & Administration). For further infor-
mation regarding this revenue ruling, con-
tact Ms. Colbert-James at (202) 317-3400
(not a toll-free number).

APPENDIX A

365 Day Year 0.5% Compound Rate 184 Days Days Factor Days Factor Days Factor

0.000013699

0.000863380

125

0.001713784

0.000027397

0.000877091

126

0.001727506

0.000041096

0.000890801

127

0.001741228

0.000054796

0.000904512

128

0.001754951

0.000068495

0.000918223

129

0.001768673

0.000082195

0.000931934

130

0.001782396

0.000095894

0.000945646

131

0.001796119

0.000109594

0.000959357

132

0.001809843

0.000123294

0.000973069

133

0.001823566

0.000136995

0.000986781

134

0.001837290

0.000150695

0.001000493

135

0.001851013

0.000164396

0.001014206

136

0.001864737

0.000178097

0.001027918

137

0.001878462

0.000191798

0.001041631

138

0.001892186

0.000205499

0.001055344

139

0.001905910

365 Day Year 0.5% Compound Rate 184 Days Days Factor Days Factor Days Factor

0.000219201

0.001069057

140

0.001919635

0.000232902

0.001082770

141

0.001933360

0.000246604

0.001096484

142

0.001947085

0.000260306

0.001110197

143

0.001960811

0.000274008

0.001123911

144

0.001974536

0.000287711

0.001137625

145

0.001988262

0.000301413

0.001151339

146

0.002001988

0.000315116

0.001165054

147

0.002015714

0.000328819

0.001178768

148

0.002029440

0.000342522

0.001192483

149

0.002043166

0.000356225

0.001206198

150

0.002056893

0.000369929

0.001219913

151

0.002070620

0.000383633

0.001233629

152

0.002084347

0.000397336

0.001247344

153

0.002098074

0.000411041

0.001261060

154

0.002111801

0.000424745

0.001274776

155

0.002125529

0.000438449

0.001288492

156

0.002139257

0.000452154

0.001302208

157

0.002152985

0.000465859

0.001315925

158

0.002166713

0.000479564

0.001329641

159

0.002180441

0.000493269

0.001343358

160

0.002194169

0.000506974

0.001357075

161

0.002207898

0.000520680

100

0.001370792

162

0.002221627

0.000534386

101

0.001384510

163

0.002235356

0.000548092

102

0.001398227

164

0.002249085

0.000561798

103

0.001411945

165

0.002262815

0.000575504

104

0.001425663

166

0.002276544

0.000589211

105

0.001439381

167

0.002290274

0.000602917

106

0.001453100

168

0.002304004

0.000616624

107

0.001466818

169

0.002317734

0.000630331

108

0.001480537

170

0.002331465

0.000644039

109

0.001494256

171

0.002345195

0.000657746

110

0.001507975

172

0.002358926

0.000671454

111

0.001521694

173

0.002372657

0.000685161

112

0.001535414

174

0.002386388

0.000698869

113

0.001549133

175

0.002400120

0.000712578

114

0.001562853

176

0.002413851

0.000726286

115

0.001576573

177

0.002427583

0.000739995

116

0.001590293

178

0.002441315

0.000753703

117

0.001604014

179

0.002455047

0.000767412

118

0.001617734

180

0.002468779

0.000781121

119

0.001631455

181

0.002482511

0.000794831

120

0.001645176

182

0.002496244

0.000808540

121

0.001658897

183

0.002509977

0.000822250

122

0.001672619

184

0.002523710

365 Day Year 0.5% Compound Rate 184 Days Days Factor Days Factor Days Factor

0.000835960

123

0.001686340

0.000849670

124

0.001700062

366 Day Year 0.5% Compound Rate 184 Days Days Factor Days Factor Days Factor

0.000013661

0.000861020

125

0.001709097

0.000027323

0.000874693

126

0.001722782

0.000040984

0.000888366

127

0.001736467

0.000054646

0.000902040

128

0.001750152

0.000068308

0.000915713

129

0.001763837

0.000081970

0.000929387

130

0.001777522

0.000095632

0.000943061

131

0.001791208

0.000109295

0.000956735

132

0.001804893

0.000122958

0.000970409

133

0.001818579

0.000136620

0.000984084

134

0.001832265

0.000150283

0.000997758

135

0.001845951

0.000163947

0.001011433

136

0.001859638

0.000177610

0.001025108

137

0.001873324

0.000191274

0.001038783

138

0.001887011

0.000204938

0.001052459

139

0.001900698

0.000218602

0.001066134

140

0.001914385

0.000232266

0.001079810

141

0.001928073

0.000245930

0.001093486

142

0.001941760

0.000259595

0.001107162

143

0.001955448

0.000273260

0.001120839

144

0.001969136

0.000286924

0.001134515

145

0.001982824

0.000300590

0.001148192

146

0.001996512

0.000314255

0.001161869

147

0.002010201

0.000327920

0.001175546

148

0.002023889

0.000341586

0.001189223

149

0.002037578

0.000355252

0.001202900

150

0.002051267

0.000368918

0.001216578

151

0.002064957

0.000382584

0.001230256

152

0.002078646

0.000396251

0.001243934

153

0.002092336

0.000409917

0.001257612

154

0.002106025

0.000423584

0.001271291

155

0.002119715

0.000437251

0.001284969

156

0.002133405

0.000450918

0.001298648

157

0.002147096

0.000464586

0.001312327

158

0.002160786

0.000478253

0.001326006

159

0.002174477

0.000491921

0.001339685

160

0.002188168

0.000505589

0.001353365

161

0.002201859

0.000519257

100

0.001367044

162

0.002215550

0.000532925

101

0.001380724

163

0.002229242

TABLE OF INTEREST RATES PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986 OVERPAYMENTS AND UNDERPAYMENTS

366 Day Year 0.5% Compound Rate 184 Days Days Factor Days Factor Days Factor

0.000546594

102

0.001394404

164

0.002242933

0.000560262

103

0.001408085

165

0.002256625

0.000573931

104

0.001421765

166

0.002270317

0.000587600

105

0.001435446

167

0.002284010

0.000601269

106

0.001449127

168

0.002297702

0.000614939

107

0.001462808

169

0.002311395

0.000628608

108

0.001476489

170

0.002325087

0.000642278

109

0.001490170

171

0.002338780

0.000655948

110

0.001503852

172

0.002352473

0.000669618

111

0.001517533

173

0.002366167

0.000683289

112

0.001531215

174

0.002379860

0.000696959

113

0.001544897

175

0.002393554

0.000710630

114

0.001558580

176

0.002407248

0.000724301

115

0.001572262

177

0.002420942

0.000737972

116

0.001585945

178

0.002434636

0.000751643

117

0.001599628

179

0.002448331

0.000765315

118

0.001613311

180

0.002462025

0.000778986

119

0.001626994

181

0.002475720

0.000792658

120

0.001640678

182

0.002489415

0.000806330

121

0.001654361

183

0.002503110

0.000820003

122

0.001668045

184

0.002516806

0.000833675

123

0.001681729

0.000847348

124

0.001695413

PERIOD

RATE

In 1995-1 C.B. DAILY RATE TABLE

Before Jul. 1, 1975

Table 2, pg. 557

Jul. 1, 1975-Jan. 31, 1976

Table 4, pg. 559

Feb. 1, 1976-Jan. 31, 1978

Table 3, pg. 558

Feb. 1, 1978-Jan. 31, 1980

Table 2, pg. 557

Feb. 1, 1980-Jan. 31, 1982

12%

Table 5, pg. 560

Feb. 1, 1982-Dec. 31, 1982

20%

Table 6, pg. 560

Jan. 1, 1983-Jun. 30, 1983

16%

Table 37, pg. 591

Jul. 1, 1983-Dec. 31, 1983

11%

Table 27, pg. 581

Jan. 1, 1984-Jun. 30, 1984

11%

Table 75, pg. 629

Jul. 1, 1984-Dec. 31, 1984

11%

Table 75, pg. 629

Jan. 1, 1985-Jun. 30, 1985

13%

Table 31, pg. 585

Jul. 1, 1985-Dec. 31, 1985

11%

Table 27, pg. 581

Jan. 1, 1986-Jun. 30, 1986

10%

Table 25, pg. 579

Jul. 1, 1986-Dec. 31, 1986

Table 23, pg. 577

TABLE OF INTEREST RATES FROM JAN. 1, 1987 - DEC. 31, 1998

OVERPAYMENTS

UNDERPAYMENTS

RATE

1995-1 C.B. TABLE

RATE

1995-1 C.B. TABLE

Jan. 1, 1987-Mar. 31, 1987

575

577

Apr. 1, 1987-Jun. 30, 1987

575

577

Jul. 1, 1987-Sep. 30, 1987

575

577

Oct. 1, 1987-Dec. 31, 1987

577

10%

579

Jan. 1, 1988-Mar. 31, 1988

10%

627

11%

629

Apr. 1, 1988-Jun. 30, 1988

625

10%

627

Jul. 1, 1988-Sep. 30, 1988

625

10%

627

Oct. 1, 1988-Dec. 31, 1988

10%

627

11%

629

Jan. 1, 1989-Mar. 31, 1989

10%

579

11%

581

Apr. 1, 1989-Jun. 30, 1989

11%

581

12%

583

Jul. 1, 1989-Sep. 30, 1989

11%

581

12%

583

Oct. 1, 1989-Dec. 31, 1989

10%

579

11%

581

Jan. 1, 1990-Mar. 31, 1990

10%

579

11%

581

Apr. 1, 1990-Jun. 30, 1990

10%

579

11%

581

Jul. 1, 1990-Sep. 30, 1990

10%

579

11%

581

Oct. 1, 1990-Dec. 31, 1990

10%

579

11%

581

Jan. 1, 1991-Mar. 31, 1991

10%

579

11%

581

Apr. 1, 1991-Jun. 30, 1991

577

10%

579

Jul. 1, 1991-Sep. 30, 1991

577

10%

579

Oct. 1, 1991-Dec. 31, 1991

577

10%

579

Jan. 1, 1992-Mar. 31, 1992

623

625

Apr. 1, 1992-Jun. 30, 1992

621

623

Jul. 1, 1992-Sep. 30, 1992

621

623

Oct. 1, 1992-Dec. 31, 1992

619

621

Jan. 1, 1993-Mar. 31, 1993

571

573

Apr. 1, 1993-Jun. 30, 1993

571

573

Jul. 1, 1993-Sep. 30, 1993

571

573

Oct. 1, 1993-Dec. 31, 1993

571

573

Jan. 1, 1994-Mar. 31, 1994

571

573

Apr. 1, 1994-Jun. 30, 1994

571

573

Jul. 1, 1994-Sep. 30, 1994

573

575

Oct. 1, 1994-Dec. 31, 1994

575

577

Jan. 1, 1995-Mar. 31, 1995

575

577

Apr. 1, 1995-Jun. 30, 1995

577

10%

579

Jul. 1, 1995-Sep. 30, 1995

575

577

Oct. 1, 1995-Dec. 31, 1995

575

577

Jan. 1, 1996-Mar. 31, 1996

623

625

Apr. 1, 1996-Jun. 30, 1996

621

623

Jul. 1, 1996-Sep. 30, 1996

623

625

Oct. 1, 1996-Dec. 31, 1996

623

625

Jan. 1, 1997-Mar. 31, 1997

575

577

Apr. 1, 1997-Jun. 30, 1997

575

577

TABLE OF INTEREST RATES FROM JANUARY 1, 1999 - PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

TABLE OF INTEREST RATES FROM JAN. 1, 1987 - DEC. 31, 1998 OVERPAYMENTS UNDERPAYMENTS 1995-1 C.B. 1995-1 C.B. RATE TABLE PG RATE TABLE PG

Jul. 1, 1997-Sep. 30, 1997

575

577

Oct. 1, 1997-Dec. 31, 1997

575

577

Jan. 1, 1998-Mar. 31, 1998

575

577

Apr. 1, 1998-Jun. 30, 1998

573

575

Jul. 1, 1998-Sep. 30, 1998

573

575

Oct. 1, 1998-Dec. 31, 1998

573

575

RATE

1995-1 C.B. TABLE

PAGE

Jan. 1, 1999-Mar. 31, 1999

573

Apr. 1, 1999-Jun. 30, 1999

575

Jul. 1, 1999-Sep. 30, 1999

575

Oct. 1, 1999-Dec. 31, 1999

575

Jan. 1, 2000-Mar. 31, 2000

623

Apr. 1, 2000-Jun. 30, 2000

625

Jul. 1, 2000-Sep. 30, 2000

625

Oct. 1, 2000-Dec. 31, 2000

625

Jan. 1, 2001-Mar. 31, 2001

577

Apr. 1, 2001-Jun. 30, 2001

575

Jul. 1, 2001-Sep. 30, 2001

573

Oct. 1, 2001-Dec. 31, 2001

573

Jan. 1, 2002-Mar. 31, 2002

571

Apr. 1, 2002-Jun. 30, 2002

571

Jul. 1, 2002-Sep. 30, 2002

571

Oct. 1, 2002-Dec. 31, 2002

571

Jan. 1, 2003-Mar. 31, 2003

569

Apr. 1, 2003-Jun. 30, 2003

569

Jul. 1, 2003-Sep. 30, 2003

569

Oct. 1, 2003-Dec. 31, 2003

567

Jan. 1, 2004-Mar. 31, 2004

615

Apr. 1, 2004-Jun. 30, 2004

617

Jul. 1, 2004-Sep. 30, 2004

615

Oct. 1, 2004-Dec. 31, 2004

617

Jan. 1, 2005-Mar. 31, 2005

569

Apr. 1, 2005-Jun. 30, 2005

571

Jul. 1, 2005-Sep. 30, 2005

571

Oct. 1, 2005-Dec. 31, 2005

573

Jan. 1, 2006-Mar. 31, 2006

573

Apr. 1, 2006-Jun. 30, 2006

573

# TABLE OF INTEREST RATES FROM JANUARY 1, 1999 - PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

RATE

1995-1 C.B. TABLE

PAGE

Jul. 1, 2006-Sep. 30, 2006

575

Oct. 1, 2006-Dec. 31, 2006

575

Jan. 1, 2007-Mar. 31, 2007

575

Apr. 1, 2007-Jun. 30, 2007

575

Jul. 1, 2007-Sep. 30, 2007

575

Oct. 1, 2007-Dec. 31, 2007

575

Jan. 1, 2008-Mar. 31, 2008

621

Apr. 1, 2008-Jun. 30, 2008

619

Jul. 1, 2008-Sep. 30, 2008

617

Oct. 1, 2008-Dec. 31, 2008

619

Jan. 1, 2009-Mar. 31, 2009

569

Apr. 1, 2009-Jun. 30, 2009

567

Jul. 1, 2009-Sep. 30, 2009

567

Oct. 1, 2009-Dec. 31, 2009

567

Jan. 1, 2010-Mar. 31, 2010

567

Apr. 1, 2010-Jun. 30, 2010

567

Jul. 1, 2010-Sep. 30, 2010

567

Oct. 1, 2010-Dec. 31, 2010

567

Jan. 1, 2011-Mar. 31, 2011

565

Apr. 1, 2011-Jun. 30, 2011

567

Jul. 1, 2011 ;- Sep. 30, 2011

567

Oct. 1, 2011-Dec. 31, 2011

565

Jan. 1, 2012-Mar. 31, 2012

613

Apr. 1, 2012-Jun. 30, 2012

613

Jul. 1, 2012-Sep. 30, 2012

613

Oct. 1, 2012-Dec. 31, 2012

613

Jan. 1, 2013-Mar. 31, 2013

565

Apr. 1, 2013-Jun. 30, 2013

565

Jul. 1, 2013-Sep. 30, 2013

565

Oct. 1, 2013-Dec. 31, 2013

565

Jan. 1, 2014-Mar. 31, 2014

565

Apr. 1, 2014-Jun. 30, 2014

565

Jul. 1, 2014-Sep. 30, 2014

565

Oct. 1, 2014-Dec. 31, 2014

565

Jan. 1, 2015-Mar. 31, 2015

565

Apr. 1, 2015-Jun. 30, 2015

565

Jul. 1, 2015-Sep. 30, 2015

565

Oct. 1. 2015 -_ Dec. 31, 2015

565

Jan. 1, 2016-Mar. 31, 2016

613

Apr. 1, 2016-Jun. 30, 2016

615

Jul. 1, 2016-Sep. 30, 2016

615

# TABLE OF INTEREST RATES FROM JANUARY 1, 1999 - PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS

UNDERPAYMENTS

RATE

1995-1 C.B. TABLE

RATE

1995-1 C.B. TABLE

Jan. 1, 1999-Mar. 31, 1999

571

573

Apr. 1, 1999-Jun. 30, 1999

573

575

Jul. 1, 1999-Sep. 30, 1999

573

575

Oct. 1, 1999-Dec. 31, 1999

573

575

Jan. 1, 2000-Mar. 31, 2000

621

623

Apr. 1, 2000-Jun. 30, 2000

623

625

Jul. 1, 2000-Sep. 30, 2000

623

625

Oct. 1, 2000-Dec. 31, 2000

623

625

Jan. 1, 2001-Mar. 31, 2001

575

577

Apr. 1, 2001-Jun. 30, 2001

573

575

Jul. 1, 2001-Sep. 30, 2001

571

573

Oct. 1, 2001-Dec. 31, 2001

571

573

Jan. 1, 2002-Mar. 31, 2002

569

571

Apr. 1, 2002-Jun. 30, 2002

569

571

Jul. 1, 2002-Sep. 30, 2002

569

571

Oct. 1, 2002-Dec. 31, 2002

569

571

Jan. 1, 2003-Mar. 31, 2003

567

569

Apr. 1, 2003-Jun. 30, 2003

567

569

Jul. 1, 2003-Sep. 30, 2003

567

569

Oct. 1, 2003-Dec. 31, 2003

565

567

Jan. 1, 2004-Mar. 31, 2004

613

615

Apr. 1, 2004-Jun. 30, 2004

615

617

Jul. 1, 2004-Sep. 30, 2004

613

615

Oct. 1, 2004-Dec. 31, 2004

615

617

Jan. 1, 2005-Mar. 31, 2005

567

569

Apr. 1, 2005-Jun. 30, 2005

569

571

Jul. 1, 2005-Sep. 30, 2005

569

571

Oct. 1, 2005-Dec. 31, 2005

571

573

Jan. 1, 2006-Mar. 31, 2006

571

573

Apr. 1, 2006-Jun. 30, 2006

571

573

Jul. 1, 2006-Sep. 30, 2006

573

575

Oct. 1, 2006-Dec. 31, 2006

573

575

Jan. 1, 2007-Mar. 31, 2007

573

575

Apr. 1, 2007-Jun. 30, 2007

573

575

Jul. 1, 2007-Sep. 30, 2007

573

575

Oct. 1, 2007-Dec. 31, 2007

573

575

Jan. 1, 2008-Mar. 31, 2008

619

621

Apr. 1, 2008-Jun. 30, 2008

617

619

Jul. 1, 2008-Sep. 30, 2008

615

617

Oct. 1, 2008-Dec. 31, 2008

617

619

Jan. 1, 2009-Mar. 31, 2009

567

569

## TABLE OF INTEREST RATES FROM JANUARY 1, 1999 - PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS

UNDERPAYMENTS

RATE

1995-1 C.B. TABLE

RATE

1995-1 C.B. TABLE

Apr. 1, 2009-Jun. 30, 2009

565

567

Jul. 1, 2009-Sep. 30, 2009

565

567

Oct. 1, 2009-Dec. 31, 2009

565

567

Jan. 1, 2010-Mar. 31, 2010

565

567

Apr. 1, 2010-Jun. 30, 2010

565

567

Jul. 1, 2010-Sep. 30, 2010

565

567

Oct. 1, 2010-Dec. 31, 2010

565

567

Jan. 1, 2011-Mar. 31, 2011

563

565

Apr. 1, 2011-Jun. 30, 2011

565

567

Jul. 1, 2011-Sep. 30, 2011

565

567

Oct. 1, 2011-Dec. 31, 2011

563

565

Jan. 1, 2012 -- Mar. 31, 2012

611

613

Apr. 1, 2012-Jun. 30, 2012

611

613

Jul. 1, 2012-Sep. 30, 2012

611

613

Oct. 1, 2012-Dec. 31, 2012

611

613

Jan. 1, 2013 -- Mar. 31, 2013

563

565

Apr. 1, 2013-Jun. 30, 2013

563

565

Jul. 1, 2013-Sep. 30, 2013

563

565

Oct. 1, 2013-Dec. 31, 2013

563

565

Jan. 1, 2014-Mar. 31, 2014

563

565

Apr. 1, 2014-Jun. 30, 2014

563

565

Jul. 1, 2014-Sep. 30, 2014

563

565

Oct. 1, 2014-Dec. 31, 2014

563

565

Jan. 1, 2015 -- Mar. 31, 2015

563

565

Apr. 1, 2015-Jun. 30, 2015

563

565

Jul. 1. 2015-Sep. 30, 2015

563

565

Oct. 1, 2015-Dec. 31, 2015

563

565

Jan. 1, 2016 -- Mar. 31, 2016

611

613

Apr. 1, 2016-Jun. 30, 2016

613

615

Jul. 1, 2016-Sep. 30, 2016

613

615

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 - PRESENT

RATE

1995-1 C.B.

TABLE

Jan. 1, 1991-Mar. 31, 1991

13%

585

Apr. 1, 1991-Jun. 30, 1991

12%

583

Jul. 1, 1991-Sep. 30, 1991

12%

583

Oct. 1, 1991-Dec. 31, 1991

12%

583

## TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 - PRESENT

RATE

1995-1 C.B. TABLE

Jan. 1, 1992-Mar. 31, 1992

11%

629

Apr. 1, 1992-Jun. 30, 1992

10%

627

Jul. 1, 1992-Sep. 30, 1992

10%

627

Oct. 1, 1992-Dec. 31, 1992

625

Jan. 1, 1993-Mar. 31, 1993

577

Apr. 1, 1993-Jun. 30, 1993

577

Jul. 1, 1993-Sep. 30, 1993

577

Oct. 1, 1993-Dec. 31, 1993

577

Jan. 1, 1994-Mar. 31, 1994

577

Apr. 1, 1994-Jun. 30, 1994

577

Jul. 1, 1994-Sep. 30, 1994

10%

579

Oct. 1, 1994-Dec. 31, 1994

11%

581

Jan. 1, 1995-Mar. 31, 1995

11%

581

Apr. 1, 1995-Jun. 30, 1995

12%

583

Jul. 1, 1995-Sep. 30, 1995

11%

581

Oct. 1, 1995-Dec. 31, 1995

11%

581

Jan. 1, 1996-Mar. 31, 1996

11%

629

Apr. 1, 1996-Jun. 30, 1996

10%

627

Jul. 1, 1996-Sep. 30, 1996

11%

629

Oct. 1, 1996-Dec. 31, 1996

11%

629

Jan. 1, 1997-Mar. 31, 1997

11%

581

Apr. 1, 1997-Jun. 30, 1997

11%

581

Jul. 1, 1997-Sep. 30, 1997

11%

581

Oct. 1, 1997-Dec. 31, 1997

11%

581

Jan. 1, 1998-Mar. 31, 1998

11%

581

Apr. 1, 1998-Jun. 30, 1998

10%

579

Jul. 1, 1998-Sep. 30, 1998

10%

579

Oct. 1, 1998-Dec. 31, 1998

10%

579

Jan. 1, 1999-Mar. 31, 1999

577

Apr. 1, 1999-Jun. 30, 1999

10%

579

Jul. 1, 1999-Sep. 30, 1999

10%

579

Oct. 1, 1999-Dec. 31, 1999

10%

579

Jan. 1, 2000-Mar. 31, 2000

10%

627

Apr. 1, 2000-Jun. 30, 2000

11%

629

Jul. 1, 2000-Sep. 30, 2000

11%

629

Oct. 1, 2000-Dec. 31, 2000

11%

629

Jan. 1, 2001-Mar. 31, 2001

11%

581

Apr. 1, 2001-Jun. 30, 2001

10%

579

Jul. 1, 2001-Sep. 30, 2001

577

Oct. 1, 2001-Dec. 31, 2001

577

Jan. 1, 2002-Mar. 31, 2002

575

Apr. 1, 2002-Jun. 30, 2002

575

Jul. 1, 2002-Sep. 30, 2002

575

# TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 - PRESENT

RATE

1995-1 C.B. TABLE

Oct. 1, 2002-Dec. 31, 2002

575

Jan. 1, 2003-Mar. 31, 2003

573

Apr. 1, 2003-Jun. 30, 2003

573

Jul. 1, 2003-Sep. 30, 2003

573

Oct. 1, 2003-Dec. 31, 2003

571

Jan. 1, 2004-Mar. 31, 2004

619

Apr. 1, 2004-Jun. 30, 2004

621

Jul. 1, 2004-Sep. 30, 2004

619

Oct. 1, 2004-Dec. 31, 2004

621

Jan. 1, 2005-Mar. 31, 2005

573

Apr. 1, 2005-Jun. 30, 2005

575

Jul. 1, 2005-Sep. 30, 2005

575

Oct. 1, 2005-Dec. 31, 2005

577

Jan. 1, 2006-Mar. 31, 2006

577

Apr. 1, 2006-Jun. 30, 2006

577

Jul. 1, 2006-Sep. 30, 2006

10%

579

Oct. 1, 2006-Dec. 31, 2006

10%

579

Jan. 1, 2007-Mar. 31, 2007

10%

579

Apr. 1, 2007-Jun. 30, 2007

10%

579

Jul. 1, 2007-Sep. 30, 2007

10%

579

Oct. 1, 2007-Dec. 31, 2007

10%

579

Jan. 1, 2008-Mar. 31, 2008

625

Apr. 1, 2008-Jun. 30, 2008

623

Jul. 1, 2008-Sep. 30, 2008

621

Oct. 1, 2008-Dec. 31, 2008

623

Jan. 1, 2009-Mar. 31, 2009

573

Apr. 1, 2009-Jun. 30, 2009

571

Jul. 1, 2009-Sep. 30, 2009

571

Oct. 1, 2009-Dec. 31, 2009

571

Jan. 1, 2010-Mar. 31, 2010

571

Apr. 1, 2010-Jun. 30, 2010

571

Jul. 1, 2010-Sep. 30, 2010

571

Oct. 1, 2010-Dec. 31, 2010

571

Jan. 1, 2011-Mar. 31, 2011

569

Apr. 1, 2011-Jun. 30, 2011

571

Jul. 1, 2011-Sep. 30, 2011

571

Oct. 1, 2011-Dec. 31, 2011

569

Jan. 1, 2012-Mar. 31, 2012

617

Apr. 1, 2012-Jun. 30, 2012

617

Jul. 1, 2012-Sep. 30, 2012

617

Oct. 1, 2012-Dec. 31, 2012

617

Jan. 1, 2013-Mar. 31, 2013

569

Apr. 1, 2013-Jun. 30, 2013

569

## TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 - PRESENT

RATE

1995-1 C.B. TABLE

Jul. 1, 2013-Sep. 30, 2013

569

Oct. 1, 2013-Dec. 31, 2013

569

Jan. 1, 2014-Mar. 31, 2014

569

Apr. 1, 2014-Jun. 30, 2014

569

Jul. 1, 2014-Sep. 30, 2014

569

Oct. 1, 2014-Dec. 31, 2014

569

Jan. 1, 2015-Mar. 31, 2015

569

Apr. 1, 2015-Jun. 30, 2015

569

Jul. 1, 2015-Sep. 30, 2015

569

Oct. 1, 2015-Dec. 31, 2015

569

Jan. 1, 2016-Mar. 31, 2016

617

Apr. 1, 2016 -- Jun. 30, 2016

619

Jul. 1, 2016-Sep. 30, 2016

619

TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 - PRESENT

RATE

1995-1 C.B. TABLE

Jan. 1, 1995-Mar. 31, 1995

6.5%

572

Apr. 1, 1995-Jun. 30, 1995

7.5%

574

Jul. 1, 1995-Sep. 30, 1995

6.5%

572

Oct. 1, 1995-Dec. 31, 1995

6.5%

572

Jan. 1, 1996-Mar. 31, 1996

6.5%

620

Apr. 1, 1996-Jun. 30, 1996

5.5%

618

Jul. 1, 1996-Sep. 30, 1996

6.5%

620

Oct. 1, 1996-Dec. 31, 1996

6.5%

620

Jan. 1, 1997-Mar. 31, 1997

6.5%

572

Apr. 1, 1997-Jun. 30, 1997

6.5%

572

Jul. 1, 1997-Sep. 30, 1997

6.5%

572

Oct. 1, 1997-Dec. 31, 1997

6.5%

572

Jan. 1, 1998-Mar. 31, 1998

6.5%

572

Apr. 1, 1998-Jun. 30, 1998

5.5%

570

Jul. 1. 1998-Sep. 30, 1998

5.5%

570

Oct. 1, 1998-Dec. 31, 1998

5.5%

570

Jan. 1, 1999-Mar. 31, 1999

4.5%

568

Apr. 1, 1999-Jun. 30, 1999

5.5%

570

Jul. 1, 1999-Sep. 30, 1999

5.5%

570

Oct. 1, 1999-Dec. 31, 1999

5.5%

570

Jan. 1, 2000-Mar. 31, 2000

5.5%

618

Apr. 1, 2000-Jun. 30, 2000

6.5%

620

Jul. 1, 2000-Sep. 30, 2000

6.5%

620

## TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 - PRESENT

RATE

1995-1 C.B. TABLE

Oct. 1, 2000-Dec. 31, 2000

6.5%

620

Jan. 1, 2001-Mar. 31, 2001

6.5%

572

Apr. 1, 2001-Jun. 30, 2001

5.5%

570

Jul. 1, 2001-Sep. 30, 2001

4.5%

568

Oct. 1, 2001-Dec. 31, 2001

4.5%

568

Jan. 1, 2002-Mar. 31, 2002

3.5%

566

Apr. 1, 2002-Jun. 30, 2002

3.5%

566

Jul. 1, 2002-Sep. 30, 2002

3.5%

566

Oct. 1, 2002-Dec. 31, 2002

3.5%

566

Jan. 1, 2003-Mar. 31, 2003

2.5%

564

Apr. 1, 2003-Jun. 30, 2003

2.5%

564

Jul. 1, 2003-Sep. 30, 2003

2.5%

564

Oct. 1, 2003-Dec. 31, 2003

1.5%

562

Jan. 1, 2004-Mar. 31, 2004

1.5%

610

Apr. 1, 2004-Jun. 30, 2004

2.5%

612

Jul. 1, 2004-Sep. 30, 2004

1.5%

610

Oct. 1, 2004-Dec. 31, 2004

2.5%

612

Jan. 1, 2005-Mar. 31, 2005

2.5%

564

Apr. 1, 2005-Jun. 30, 2005

3.5%

566

Jul. 1, 2005-Sep. 30, 2005

3.5%

566

Oct. 1, 2005-Dec. 31, 2005

4.5%

568

Jan. 1, 2006-Mar. 31, 2006

4.5%

568

Apr. 1, 2006-Jun. 30, 2006

4.5%

568

Jul. 1, 2006-Sep. 30, 2006

5.5%

570

Oct. 1, 2006-Dec. 31, 2006

5.5%

570

Jan. 1, 2007-Mar. 31, 2007

5.5%

570

Apr. 1, 2007-Jun. 30, 2007

5.5%

570

Jul. 1, 2007-Sep. 30, 2007

5.5%

570

Oct. 1, 2007-Dec. 31, 2007

5.5%

570

Jan. 1, 2008-Mar. 31, 2008

4.5%

616

Apr. 1, 2008-Jun. 30, 2008

3.5%

614

Jul. 1, 2008-Sep. 30, 2008

2.5%

612

Oct. 1, 2008-Dec. 31, 2008

3.5%

614

Jan. 1, 2009-Mar. 31, 2009

2.5%

564

Apr. 1, 2009-Jun. 30, 2009

1.5%

562

Jul. 1, 2009-Sep. 30, 2009

1.5%

562

Oct. 1, 2009-Dec. 31, 2009

1.5%

562

Jan. 1, 2010-Mar. 31, 2010

1.5%

562

Apr. 1, 2010-Jun. 30, 2010

1.5%

562

Jul. 1, 2010-Sep. 30, 2010

1.5%

562

Oct. 1, 2010-Dec. 31, 2010

1.5%

562

Jan. 1, 2011-Mar. 31, 2011

0.5%*

Apr. 1, 2011-Jun. 30, 2011

1.5%

562

TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 - PRESENT

RATE

1995-1 C.B. TABLE

Jul. 1, 2011 -- Sep. 30, 2011

1.5%

562

Oct. 1, 2011-Dec. 31, 2011

0.5%*

Jan. 1, 2012-Mar. 31, 2012

0.5%*

Apr. 1, 2012-Jun. 30, 2012

0.5%*

Jul. 1, 2012-Sep. 30, 2012

0.5%*

Oct. 1, 2012-Dec. 31, 2012

0.5%*

Jan. 1, 2013-Mar. 31, 2013

0.5%*

Apr. 1, 2013-Jun. 30, 2013

0.5%*

Jul. 1, 2013-Sep. 30, 2013

0.5%*

Oct. 1, 2013-Dec. 31, 2013

0.5%*

Jan. 1, 2014-Mar. 31, 2014

0.5%*

Apr. 1, 2014-Jun. 30, 2014

0.5%*

Jul. 1, 2014-Sep. 30, 2014

0.5%*

Oct. 1, 2014-Dec. 31, 2014

0.5%*

Jan. 1, 2015-Mar. 31, 2015

0.5%*

Apr. 1, 2015-Jun. 30, 2015

0.5%*

Jul. 1, 2015-Sep. 30, 2015

0.5%*

Oct. 1, 2015-Dec. 31, 2015

0.5%*

Jan. 1, 2016-Mar. 31, 2016

0.5%*

Apr. 1, 2016-Jun. 30, 2016

1.5%

610

Jul. 1, 2016-Sep. 30, 2016

1.5%

610

\* The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent are published in
Appendix A of this Revenue Ruling.

# Section 108 .- Income from Discharge of Indebtedness

## Rev. Rul. 2016-15

### ISSUES

(1) Is real property that a taxpayer de-
velops and holds for lease in its leasing
business "real property used in a trade or
business" for purposes of § 108(c)(3)(A)
of the Internal Revenue Code?

(2) Is real property that a taxpayer de-
velops and holds primarily for sale to cus-
tomers in the ordinary course of business
"real property used in a trade or business"
for purposes of § 108(c)(3)(A)?

# FACTS

Situation 1-Real property developed
and held for lease. C is a sole proprietor
engaged in the business of developing and
leasing real property. In 2016, C obtains a
loan of $10,000,000 from a bank and uses
the entire loan proceeds to construct an
apartment building for use in C's leasing
business. C secures the loan with the apart-
ment building. C leases units in the apart-
ment building through C's leasing business.

Before the loan's maturity date, C re-
duces the principal of the loan to
$8,000,000. On the loan's maturity date,
C is unable to repay the full $8,000,000 of
principal that C owes to the bank because
C has only $5,500,000 in cash. The fair
market value of the apartment building is
$5,000,000 and C's adjusted basis is
$9,400,000. After negotiations, the bank

agrees to cancel the loan on the apartment
building in exchange for $5,250,000 in
cash. At the time of the loan cancellation,
C is neither under the jurisdiction of a
bankruptcy court nor insolvent.

For the taxable year in which the bank
cancels the loan, C elects to exclude under
§ 108(a)(1)(D) the $2,750,000 ($8,000,000 -
$5,250,000) of cancellation of debt (COD)
income arising from the cancellation of
the loan.

Situation 2-Real property developed
and held for sale. The facts are the same
as those in Situation 1, except in Situation
2, instead of constructing and leasing units
in an apartment building, C is engaged in
the business of developing and holding
real property for sale. C obtains the
$10,000,000 loan from a bank to construct
a residential community and subdivides

the residential community into lots and holds
the lots primarily for sale. C secures the loan
with the residential community real property.

## LAW

Section 108(a)(1)(D) provides that a
taxpayer that is not a C corporation may
exclude COD income from gross income
if the cancelled debt is "qualified real
property business indebtedness" (QR-
PBI). Section 108(c)(3) defines QRPBI as
indebtedness which (A) is incurred or as-
sumed by the taxpayer in connection with
real property used in a trade or business and
is secured by such real property, and (B)
was incurred or assumed before January 1,
1993, or, if incurred or assumed on or after
that date, is qualified acquisition indebted-
ness, and (C) with respect to which the
taxpayer makes an election to exclude from
gross income. Section 108(c)(4) generally
defines "qualified acquisition indebtedness"
as indebtedness incurred or assumed to ac-
quire, construct, reconstruct, or substantially
improve the real property.

Section 108(c)(1) provides that if a tax-
payer excludes COD income under
§ 108(a)(1)(D), the taxpayer must reduce
basis in depreciable real property by the
same amount in accordance with § 1017.
See also § 1017(b)(3)(F)(i) (basis reduc-
tions under § 108(c)(1) apply only to de-
preciable real property). In some circum-
stances, § 1017(b)(3)(E)(i) allows a
taxpayer to elect to treat real property
described in § 1221(a)(1) as depreciable
property for purposes of § 1017, even
though such property is not usually treated
as depreciable property. See § 1.167-2 of
the Income Tax Regulations. Section
1221(a)(1) pertains to stock in trade or
other property included in inventory or
held by a taxpayer primarily for sale to
customers in the ordinary course of its trade
or business. However, § 1017(b)(3)(F)(ii)
provides that the election to treat such prop-
erty as depreciable property does not apply
in the case of any amount applied to reduce
basis under § 108(c)(1) (relating to QRPBI).

Under § 108(c)(2)(A) the amount of
COD income that a taxpayer may exclude
is limited to the excess of the outstanding
principal amount of the QRPBI immedi-
ately before the cancellation over the fair
market value of the real property securing
the debt, as reduced by the outstanding
principal amount of other QRPBI secured

by the property. Further, the amount of
COD income that a taxpayer may exclude
under § 108(a)(1)(D) may not exceed the
aggregate adjusted bases (after basis re-
duction under §§ 108(b) and (g)) of depre-
ciable real property held by the taxpayer
immediately before the cancellation. See
§ 108(c)(2)(B).

Section 1.1017-1(c)(1) provides that, for
basis reduction under § 108(c)(1), a tax-
payer must reduce the adjusted basis of the
qualifying real property to the extent of the
discharged QRPBI before reducing the ad-
justed bases of other depreciable real prop-
erty. For this purpose, "qualifying real prop-
erty" means real property with respect to
which the indebtedness is QRPBI.

Section 167(a) allows as a depreciation
deduction, a reasonable allowance for the
exhaustion, wear and tear, and obsolescence
of property used in the taxpayer's trade or
business or held by the taxpayer for the
production of income. Residential rental
property is depreciable property. See
§ 168(e)(2)(A). However, § 1.167(a)-2 pro-
vides that no depreciation deduction is al-
lowed for inventories, stock in trade, or land
separate from the physical improvements
made to the land.

# ANALYSIS

Sections 108 and 1017 operate together
to allow a taxpayer that is not a C corpo-
ration to elect to defer the recognition of
COD income resulting from the cancella-
tion of QRPBI by excluding COD income
under § 108 and making a corresponding
basis reduction under § 1017. The legis-
lative history underlying these QRPBI
provisions is instructive:

The [House Budget] [C]ommittee understands
that real property has declined in value in some
areas of the nation, in some cases to such a degree
that the property can no longer support the debt
with which it is encumbered. The committee be-
lieves that where an individual has discharge of
indebtedness that results from a decline in value of
business real property securing that indebtedness, it
is appropriate to provide for deferral, rather than
current inclusion, of the resulting income. Gener-
ally, that deferral should not extend beyond the
period that the taxpayer owns the property.

H.R. Rep. No. 103-111, at 622-623
(1993).

The Code and the regulations further
Congress' intent to provide only for a

deferral of income that generally corre-
sponds to the period the taxpayer holds
the property securing the debt. The Code
and the regulations also indicate that debt
secured by § 1221(a)(1) property is out-
side the scope of the QRPBI provisions.

Sections 108(c)(1) and 1017(b)(3) pro-
vide that a taxpayer that excludes COD
income under § 108(a)(1)(D) must make
an offsetting basis reduction in deprecia-
ble real property. Under § 167 and the
associated regulations, residential rental
property is depreciable real property, but
inventories or stock in trade is not depre-
ciable property. Although § 1017(b)(3)(E)
generally permits a taxpayer to elect to
treat § 1221(a)(1) real property as depre-
ciable property, § 1017(b)(3)(F)(ii) specif-
ically precludes a taxpayer from making
this election in the case of QRPBI. Regu-
lations under § 1017 provide ordering
rules that further Congressional intent that
the deferral period generally should cor-
respond to the period that the taxpayer
holds the property securing the cancelled
debt. Specifically, § 1.1017-1(c)(1) pro-
vides that a taxpayer must reduce basis
first in the property securing the cancelled
debt, and then in similar depreciable real
property. If debt associated with
§ 1221(a)(1) property were treated as QR-
PBI, a taxpayer would be unable to reduce
the basis of the property securing the debt,
much less reduce the basis of that property
prior to reducing the bases of depreciable
real property used in the taxpayer's trade
or business. This result would be incon-
sistent with Congressional intent and
§ 1.1017-1(c)(1). Moreover, the inability
to reduce the basis of the § 1221(a)(1)
property securing the debt would create
deferrals of COD income that extend well
beyond the period the taxpayer holds the
§ 1221(a)(1) property because the tax-
payer would need to reduce the basis of
depreciable real property unrelated to the
indebtedness, and typically a taxpayer
holds depreciable business property sub-
stantially longer than it holds § 1221(a)(1)
property. Accordingly, debt incurred in
connection with, and secured by,
§ 1221(a)(1) real property cannot be
treated as QRPBI.

This revenue ruling obsoletes Rev. Rul.
76-86, 1976-1 C.B. 37, which relied on
prior law under §§ 108 and 1017 in con-
cluding that an individual taxpayer could

exclude income arising from the discharge
of indebtedness incurred in purchasing mer-
chandise for resale. The current versions of
§§ 108 and 1017 are materially different
from §§ 108 and 1017 as in effect when
Rev. Rul. 76-86 was issued; thus, Rev. Rul.
76-86 no longer reflects current law.

Based on the foregoing, C must account for
the discharge of indebtedness as follows:

Situation 1. C holds the apartment
building for use in C's business and is
allowed to depreciate the apartment build-
ing in accordance with the Code and reg-
ulations. Accordingly, the debt C incurred
to construct the apartment building is QR-
PBI. C may elect to defer the $2,750,000
of COD income under § 108(a)(1)(D) in
the taxable year of discharge by excluding
this amount from gross income and reduc-
ing C's basis in the apartment building by
the same amount.

Situation 2. Because C holds the resi-
dential community lots primarily for sale
to customers in C's business, C is not
allowed to depreciate the lots in accor-
dance with the Code and regulations. Ac-
cordingly, the debt C incurred to construct
the residential community may not be
treated as QRPBI. C may not elect to
exclude the $2,750,000 of COD income
under § 108(a)(1)(D).

# HOLDINGS

(1) Real property developed and held
by a taxpayer for lease in its leasing busi-
ness is "real property used in a trade or
business" for purposes of § 108(c)(3)(A).

(2) Real property developed and held
by a taxpayer primarily for sale to custom-
ers in the ordinary course of business is
not "real property used in a trade or busi-
ness" for purposes of § 108(c)(3)(A).

# EFFECT ON OTHER REVENUE RULING

Rev. Rul. 76-86 is obsoleted.
DRAFTING INFORMATION

The principal author of this revenue
ruling is Sue-Jean Kim of the Office of
Associate Chief Counsel (Income Tax &
Accounting). For further information re-
garding this revenue ruling, contact Ms.
Kim at (202) 317-7007 (not a toll-free
number).

# Section 274-Disallowance of Certain Entertainment, Etc., Expenses

26 CFR 1.274-1: Disallowance of certain entertain-
ment, gift and travel expenses

# Rev. Rul. 2016-16 ISSUE

Section 274(h) of the Internal Revenue
Code (the "Code") limits deductions for
expenses incurred in connection with a
convention, seminar, or similar meeting
(collectively, a "convention") held outside
the "North American area." This revenue
ruling contains an updated list of all geo-
graphical areas currently included in the
North American area for purposes of sec-
tion 274(h).

# LAW AND ANALYSIS

Section 274(h)(1) disallows deductions
under section 162 for expenses allocable
to attendance of an individual at a conven-
tion held outside the North American area
unless the taxpayer demonstrates that the
meeting is directly related to the active
conduct of his or her trade or business and
the location of the convention satisfies
specified standards of reasonableness.

A geographical area may be included
in the North American area for purposes
of section 274(h) under one of the four
provisions described in the paragraphs
that follow.

Section 274(h)(3)(A)

Section 274(h)(3)(A) defines the term
"North American area" as the United
States, its possessions, the Trust Territory
of the Pacific Islands, Canada, and Mex-
ico. Under section 7701(a)(9), the United
States consists of the fifty states and the
District of Columbia. The Internal Reve-
nue Service treats the following as the
possessions of the United States for this
purpose: American Samoa, Baker Island,
the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana
Islands, Guam, Howland Island, Jarvis Is-
land, Johnston Island, Kingman Reef, the
Midway Islands, Palmyra Atoll, the
United States Virgin Islands, Wake Is-
land, and other United States islands,
cays, and reefs not part of the fifty states

or the District of Columbia. The jurisdic-
tions that formerly constituted the Trust
Territory of the Pacific Islands - the Re-
public of the Marshall Islands, the Feder-
ated States of Micronesia, and the Repub-
lic of Palau - are now covered by the
compacts with the United States as de-
scribed in the following two paragraphs.

The Compact of Free Association Act of
1985

The Compact of Free Association Act
of 1985, Pub. L. No. 99-239, 99 Stat.
1770 (1986), went into effect on October
21, 1986, with respect to the Republic of
the Marshall Islands, and on November 3,
1986, with respect to the Federated States
of Micronesia. Section 405 of Title IV of
the Compact provides that, for purposes of
section 274(h)(3)(A) of the Code, the Re-
public of the Marshall Islands and the
Federated States of Micronesia are in-
cluded in the North American area.

The Compact of Free Association
between the United States and the
Republic of Palau

The Compact of Free Association be-
tween the United States and the Republic
of Palau, Pub. L. No. 99-658, 100 Stat.
3672 (1986), went into effect on October
1, 1994. Section 255(d) of Title II of the
Compact with Palau provides that for pur-
poses of section 274(h)(3)(A) of the Code,
Palau is included in the North American
area.

Section 274(h)(6)

Section 274(h)(6)(A) provides that the
term "North American area" includes any
beneficiary country if, as of the time a
convention begins: (i) there is in effect an
agreement described in section
274(h)(6)(C) providing for the exchange
of information between the United States
and the beneficiary country; and (ii) there
is not in effect a finding by the Secretary
of the Treasury that the tax laws of the
beneficiary country discriminate against
conventions held in the United States.

"Beneficiary country" for this purpose
means, under section 274(h)(6)(B), a ben-
eficiary country as defined in section
212(a)(1)(A) of the Caribbean Basin Eco-
nomic Recovery Act, Pub. L. No. 98-67,
97 Stat. 384 (1983), and Bermuda.

An agreement is described in section
274(h)(6)(C) only if it provides for the
exchange of information between the
United States and the beneficiary country
(not limited to information concerning na-
tionals or residents of the United States or
the beneficiary country) as may be neces-
sary or appropriate to carry out and en-
force the tax laws of the United States and
the beneficiary country (whether criminal
or civil proceedings), including informa-
tion that may otherwise be subject to non-
disclosure provisions of the local law of
the beneficiary country, such as provisions
respecting bank secrecy and bearer shares.
The agreement must also be terminable by
either country on reasonable notice and must
contain certain disclosure and use restrictions
with respect to the information exchanged.

Thus, for a country to be included in
the North American area under section
274(h)(6), each of the following condi-
tions must be met:

(1) The country must be a "beneficiary
country" as defined in section
274(h)(6)(B).

(2) An agreement providing for the
exchange of information must be
in effect between the country and
the United States.

(3) Such agreement must provide for ex-
change of information of the breadth,
and subject to the provisions, set
forth in section 274(h)(6)(C).

(4) There is not in effect a finding by
the Secretary of the Treasury that
the tax laws of the beneficiary
country discriminate against con-
ventions held in the United States.

Rev. Rul. 2011-26, 2011-48 I.R.B.
803, identified each of the following ju-
risdictions as a beneficiary country for
which these conditions were met: Antigua
and Barbuda, Aruba, Bahamas, Barbados,
Bermuda, Costa Rica, Dominica, Domin-
ican Republic, Grenada, Guyana, Hondu-
ras, Jamaica, Netherlands Antilles, Pan-
ama, and Trinidad and Tobago.

The paragraphs that follow address
special considerations with respect to cer-
tain jurisdictions, including changes in
status since Rev. Rul. 2011-26.

## The Netherlands Antilles

The Netherlands Antilles ceased to ex-
ist as part of the Kingdom of the Nether-
lands on October 10, 2010. Curaçao and

Sint Maarten became autonomous territo-
ries within the Kingdom of the Netherlands,
while the other islands of the Netherlands
Antilles - Bonaire, Sint Eustatius, and
Saba - became the Caribbean part of the
Netherlands. The Agreement between the
Government of the United States of Amer-
ica and the Government of the Kingdom of
the Netherlands in Respect of the Nether-
lands Antilles for the Exchange of Informa-
tion with Respect to Taxes, signed on April
17, 2002, continues to apply to Curaçao,
Sint Maarten, and the Caribbean part of the
Netherlands.

Curaçao was designated as a benefi-
ciary country for purposes of the Carib-
bean Basin Economic Recovery Act on
December 23, 2013, Presidential Procla-
mation No. 9072, 78 Fed. Reg. 80,417
(December 23, 2013), and therefore is a
beneficiary country within the meaning of
section 274(h)(6)(B). A tax information
exchange agreement continues in force
between the United States and Curaçao
and is an agreement described in section
274(h)(6)(C). There is no finding in effect
by the Secretary of the Treasury that the
tax laws of Curaçao discriminate against
conventions held in the United States.
Therefore, Curaçao is included in the
North American area under section
274(h)(6) as of December 23, 2013.

Recognizing that this revenue ruling is
the first published guidance on the status
of Curaçao under section 274(h)(6) fol-
lowing the dissolution of the Netherlands
Antilles, the Treasury Department and the
IRS have determined that administrative
transition relief is appropriate. The IRS
will not assert as a basis for disallowing
deductions that Curaçao was not included
in the North American area under section
274(h)(6) during the period from the dis-
solution of the Netherlands Antilles on
October 10, 2010, through December 22,
2013.

Sint Maarten and the Caribbean part of
the Netherlands have not been designated
as beneficiary countries under section
212(a)(1)(A) of the Caribbean Basin Eco-
nomic Recovery Act and therefore are not
beneficiary countries within the meaning
of section 274(h)(6)(B). Accordingly, fol-
lowing the dissolution of the Netherlands
Antilles, Sint Maarten and the Caribbean
part of the Netherlands are outside the

North American area under section
274(h)(6).

Recognizing that this revenue ruling is
the first published guidance on the status
of Sint Maarten and the Caribbean part of
the Netherlands under section 274(h)(6)
following the dissolution of the Nether-
lands Antilles, the Treasury Department
and the IRS have determined that admin-
istrative transition relief is appropriate.
The IRS will not assert that Sint Maarten
or the Caribbean part of the Netherlands
was outside the North American area un-
der section 274(h)(6) as a basis for disal-
lowing deductions for expenses incurred
in attending a convention in Sint Maarten
or the Caribbean part of the Netherlands
during the period (or with respect to
which the taxpayer demonstrates that a
nonrefundable contractual obligation ex-
isted during the period) from October 10,
2010, through June 27, 2016.

Saint Lucia

Since publication of Rev. Rul. 2011-
26, Saint Lucia has enacted implementing
legislation regarding the Agreement Be-
tween the Government of the United
States and Saint Lucia for Tax Coopera-
tion and the Exchange of Information with
Respect to Taxes. International Tax Co-
operation Act, No. 6 (2012); International
Tax Cooperation (Amendment of Sched-
ule) (No. 2) Order, No. 44 (May 5, 2014).
With the passage of this implementing
legislation, the agreement now is in effect
within the meaning of section
274(h)(6)(A)(i) and is an agreement de-
scribed in section 274(h)(6)(C). Saint Lu-
cia is a beneficiary country within the
meaning of section 274(h)(6)(B), and no
finding is in effect by the Secretary of the
Treasury that the tax laws of Saint Lucia
discriminate against conventions held in
the United States. Therefore, Saint Lucia
is included in the North American area
under section 274(h)(6) as of May 5,
2014.

## Cayman Islands

Also since the publication of Rev. Rul.
2011-26, the Agreement between the
Government of the United States of
America and the Government of the Cay-
man Islands for the Exchange of Informa-
tion Relating to Taxes entered into force

on April 14, 2014. U.S. Department of
State, Treaties and Other International
Acts Series 14-414, available at http://
www.state.gov/documents/organization/
227185.pdf. This new agreement is an
agreement described in section
274(h)(6)(C). However, the Cayman Islands
has not been designated as a beneficiary
country for purposes of the Caribbean Basin
Economic Recovery Act, and therefore, it is
not a beneficiary country within the mean-
ing of section 274(h)(6)(B). Accordingly,

the Cayman Islands remains outside the
North American area under section
274(h)(6).

### British Virgin Islands

The British Virgin Islands is a benefi-
ciary country and has a tax information
exchange agreement in effect with the
United States, but the agreement is not of
the type described in section 274(h)(6)(C)
because of certain limitations in scope.
Accordingly, the British Virgin Islands is

outside the North American area under
section 274(h)(6).

# HOLDING

For purposes of determining whether
deductions are allowed for expenses in-
curred in connection with a convention,
the following areas are included in the
North American area as of the effective
date of section 274(h) except as otherwise
indicated:

1\. The fifty states of the United States and the District of Columbia;

2\. The possessions of the United States, which for this purpose are American Samoa, Baker Island, the Commonwealth
of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, Howland Island, Jarvis Island, Johnston
Island, Kingman Reef, the Midway Islands, Palmyra Atoll, the United States Virgin Islands, Wake Island, and other
United States islands, cays, and reefs not part of the fifty states or the District of Columbia;

3\. Canada;

4\. Mexico;

5\. The Republic of the Marshall Islands;

6\. The Federated States of Micronesia;

7\. The Republic of Palau;

For expenses incurred in attending a convention that began on or after:

8. Antigua and Barbuda

February 10, 2003

9. Aruba

September 13, 2004

10. Bahamas

January 1, 2006

11. Barbados

November 3, 1984

12. Bermuda

December 2, 1988

13. Costa Rica

February 12, 1991

14. Curaçao

December 23, 2013*

15. Dominica

May 9, 1988

16. Dominican Republic

October 12, 1989

17. Grenada

July 13, 1987

18. Guyana

August 27, 1992

19. Honduras

October 10, 1991

20. Jamaica

December 18, 1986

21. Panama

April 18, 2011

22. Saint Lucia

May 5, 2014

23. Trinidad and Tobago

February 9, 1990

* For conventions in Curaçao during the period from October 10, 2010, through December 22, 2013, see the transition relief described in this revenue ruling.

For conventions in Sint Maarten, Bo-
naire, Sint Eustatius, or Saba during the
period (or with respect to which the tax-
payer demonstrates a nonrefundable con-
tractual obligation existed during the pe-
riod) from October 10, 2010, through June
27, 2016, see the transition relief de-
scribed in this revenue ruling.

This revenue ruling will be updated as
future developments result in the inclu-
sion of other areas in, or the exclusion of
areas from, the North American area.

# EFFECT ON OTHER DOCUMENTS

Rev. Rul. 2011-26 is modified and su-
perseded.

# DRAFTING INFORMATION

The principal author of this revenue ruling
is Nathaniel B. Parker of the Office of Asso-
ciate Chief Counsel (International), Branch 7.
For further information regarding this revenue
ruling, contact the principal author at (202)
317-6941 (not a toll-free number).

# Part III. Administrative, Procedural, and Miscellaneous

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

## Notice 2016-38

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

## YIELD CURVE AND SEGMENT RATES

Generally, except for certain plans un-
der sections 104 and 105 of the Pension
Protection Act of 2006 and CSEC plans
under § 414(y), § 430 of the Code speci-

fies the minimum funding requirements
that apply to single-employer plans pursu-
ant to § 412. Section 430(h)(2) specifies
the interest rates that must be used to
determine a plan's target normal cost and
funding target. Under this provision, pres-
ent value is generally determined using
three 24-month average interest rates
("segment rates"), each of which applies
to cash flows during specified periods. To the
extent provided under § 430(h)(2)(C)(iv),
these segment rates are adjusted by the appli-
cable percentage of the 25-year average seg-
ment rates for the period ending September 30
of the year preceding the calendar year in
which the plan year begins.1 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, 2007-44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond seg-
ment rates used to compute the target nor-
mal cost and the funding target. Consis-
tent with the methodology specified in
Notice 2007-81, the monthly corporate
bond yield curve derived from May 2016

data is in Table I at the end of this notice.
The spot first, second, and third segment
rates for the month of May 2016 are,
respectively, 1.50, 3.60, and 4.62.

The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the appli-
cable minimum and maximum percent-
ages of the corresponding 25-year average
segment rates. For plan years beginning
before 2018, the applicable minimum per-
centage is 90% and the applicable maxi-
mum percentage is 110%. The 25-year
average segment rates for plan years be-
ginning in 2014, 2015, and 2016 were
published in Notice 2013-58, 2013-40
I.R.B. 294, Notice 2014-50, 2014-40
I.R.B. 590, and Notice 2015-61, 2015-39
I.R.B. 408, respectively.

## 24-MONTH AVERAGE CORPORATE BOND SEGMENT RATES

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

Applicable Month

First Segment

Second Segment

Third Segment

June 2016

1.50

3.88

4.89

Based on § 430(h)(2)(C)(iv), the 24-
month averages applicable for June 2016

adjusted to be within the applicable min-
imum and maximum percentages of the

corresponding 25-year average segment
rates, are as follows:

For Plan Years Beginning In

Adjusted 24-Month Average Segment Rates

Applicable Month

First Segment

Second Segment

Third Segment

2015

June

2016

4.72

6.11

6.81

2016

June

2016

4.43

5.91

6.65

### 30-YEAR TREASURY SECURITIES INTEREST RATES

Generally for plan years beginning af-
ter 2007, § 431 specifies the minimum
funding requirements that apply to mul-
tiemployer plans pursuant to § 412. Sec-

tion 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation de-
scribed in § 431(c)(6)(A), based on the plan's
current liability. Section 431(c)(6)(E)(ii)(I)
provides that the interest rate used to cal-
culate 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 during the
four-year period ending on the last day
before the beginning of the plan year.
Notice 88-73, 1988-2 C.B. 383, provides
guidelines for determining the weighted

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

average interest rate. The rate of interest
on 30-year Treasury securities for May
2016 is 2.63 percent. The Service deter-
mined this rate as the average of the daily
determinations of yield on the 30-year
Treasury bond maturing in February 2046

determined each day through May 11,
2016 and the yield on the 30-year Trea-
sury bond maturing in May 2046 deter-
mined each day for the balance of the
month. For plan years beginning in the
month shown below, the weighted aver-

age of the rates of interest on 30-year
Treasury securities and the permissible
range of rate used to calculate current
liability are as follows:

For Plan Years Beginning in

30-Year Treasury Weighted Average

Permissible Range

Month

Year

90%

105%

June

2016

3.05

2.74

3.20

### MINIMUM PRESENT VALUE SEGMENT RATES

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

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

ment rates determined for May 2016 are
as follows:

First Segment

Second Segment

Third Segment

1.50

3.60

4.62

#### DRAFTING INFORMATION

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

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

Maturity

Yield

Maturity

Yield

Maturity

Yield

Maturity

Yield

Maturity

Yield

0.5

0.70

20.5

4.34

40.5

4.65

60.5

4.76

80.5

4.82

1.0

0.98

21.0

4.35

41.0

4.65

61.0

4.76

81.0

4.82

1.5

1.22

21.5

4.37

41.5

4.66

61.5

4.77

81.5

4.82

2.0

1.41

22.0

4.38

42.0

4.66

62.0

4.77

82.0

4.82

2.5

1.55

22.5

4.39

42.5

4.67

62.5

4.77

82.5

4.82

3.0

1.65

23.0

4.40

43.0

4.67

63.0

4.77

83.0

4.82

3.5

1.74

23.5

4.41

43.5

4.67

63.5

4.77

83.5

4.82

4.0

1.82

24.0

4.42

44.0

4.68

64.0

4.77

84.0

4.83

4.5

1.92

24.5

4.43

44.5

4.68

64.5

4.78

84.5

4.83

5.0

2.03

25.0

4.44

45.0

4.68

65.0

4.78

85.0

4.83

5.5

2.15

25.5

4.45

45.5

4.69

65.5

4.78

85.5

4.83

6.0

2.28

26.0

4.46

46.0

4.69

66.0

4.78

86.0

4.83

6.5

2.42

26.5

4.47

46.5

4.69

66.5

4.78

86.5

4.83

7.0

2.56

27.0

4.48

47.0

4.70

67.0

4.78

87.0

4.83

7.5

2.70

27.5

4.49

47.5

4.70

67.5

4.79

87.5

4.83

8.0

2.84

28.0

4.50

48.0

4.70

68.0

4.79

88.0

4.83

8.5

2.98

28.5

4.51

48.5

4.71

68.5

4.79

88.5

4.83

9.0

3.11

29.0

4.52

49.0

4.71

69.0

4.79

89.0

4.83

9.5

3.23

29.5

4.52

49.5

4.71

69.5

4.79

89.5

4.84

10.0

3.35

30.0

4.53

50.0

4.71

70.0

4.79

90.0

4.84

10.5

3.45

30.5

4.54

50.5

4.72

70.5

4.79

90.5

4.84

11.0

3.55

31.0

4.55

51.0

4.72

71.0

4.80

91.0

4.84

11.5

3.64

31.5

4.55

51.5

4.72

71.5

4.80

91.5

4.84

12.0

3.73

32.0

4.56

52.0

4.72

72.0

4.80

92.0

4.84

12.5

3.80

32.5

4.57

52.5

4.73

72.5

4.80

92.5

4.84

13.0

3.87

33.0

4.57

53.0

4.73

73.0

4.80

93.0

4.84

13.5

3.93

33.5

4.58

53.5

4.73

73.5

4.80

93.5

4.84

14.0

3.98

34.0

4.58

54.0

4.73

74.0

4.80

94.0

4.84

14.5

4.03

34.5

4.59

54.5

4.74

74.5

4.80

94.5

4.84

15.0

4.07

35.0

4.60

55.0

4.74

75.0

4.81

95.0

4.84

15.5

4.11

35.5

4.60

55.5

4.74

75.5

4.81

95.5

4.85

16.0

4.15

36.0

4.61

56.0

4.74

76.0

4.81

96.0

4.85

16.5

4.18

36.5

4.61

56.5

4.75

76.5

4.81

96.5

4.85

17.0

4.20

37.0

4.62

57.0

4.75

77.0

4.81

97.0

4.85

17.5

4.23

37.5

4.62

57.5

4.75

77.5

4.81

97.5

4.85

18.0

4.25

38.0

4.63

58.0

4.75

78.0

4.81

98.0

4.85

18.5

4.27

38.5

4.63

58.5

4.75

78.5

4.81

98.5

4.85

19.0

4.29

39.0

4.64

59.0

4.76

79.0

4.82

99.0

4.85

19.5

4.31

39.5

4.64

59.5

4.76

79.5

4.82

99.5

4.85

20.0

4.32

40.0

4.65

60.0

4.76

80.0

4.82

100.0

4.85

Recovery of Investment in
the Contract from
Payments Received from a
Qualified Defined Benefit
Plan by an Employee
During Phased Retirement

Notice 2016-39

## I. PURPOSE

This notice provides guidance in re-
sponse to inquiries as to whether pay-
ments received by an employee from a
qualified defined benefit plan1 during
phased retirement are amounts received
as an annuity under § 72 of the Internal
Revenue Code. For purposes of this no-
tice, phased retirement is an arrange-
ment under which a participant in a
qualified defined benefit plan com-
mences the distribution of a portion of
his or her retirement benefits from the
plan while continuing to work on a part-
time basis.

This notice also provides guidance re-
garding the appropriate present value fac-
tors to be used for purposes of determin-
ing the basis recovery fraction of each
payment received during phased retire-
ment, and provides guidance regarding the
time for determining the basis recovery
fraction for these phased retirement pay-
ments.

This notice does not apply to amounts
received from non-qualified contracts.
Rev. Proc. 2016-36, 2016-26 I.R.B.
1160, provides guidance regarding the ap-
plication of Treas. Reg. §§ 1.72-2(b)(2)
and 1.72-4(b)(1) to non-qualified con-
tracts.

## II. BACKGROUND

Section 402(a) provides that any
amount actually distributed to any distrib-
utee by any trust described in § 401(a) is
taxable to the distributee in the taxable
year in which distributed under § 72.

Section 72(a) provides that, in general,
gross income includes any amount re-
ceived as an annuity under an annuity,
endowment, or life insurance contract.

Section 72(b)(1) provides that gross
income does not include that part of any
amount received under an annuity con-
tract which bears the same ratio to that
amount as the investment in the contract
(as of the annuity starting date) bears to
the expected return under the contract.

Section 72(c)(1) provides that, for pur-
poses of § 72(b), the investment in the
contract as of the annuity starting date is
(A) the aggregate amount of premiums
or other consideration paid for the con-
tract, minus (B) the aggregate amount
received under the contract before the
annuity starting date to the extent that
the amount was excludible from gross
income. Section 72(c)(4) provides that,
for purposes of § 72, the annuity starting
date in the case of any contract is the
first day of the first period for which an
amount is received as an annuity under
the contract.

Section 72(d) provides that, in the case
of any amount received as an annuity un-
der a qualified employer retirement plan
described in § 72(d)(1)(G) (which in-
cludes a plan described in § 401(a)), the
investment in the contract is recovered
under the simplified method of
§ 72(d)(1). Under this method, gross
income excludes the portion of a
monthly annuity that does not exceed
the amount obtained by dividing (1) the
investment in the contract (as of the
annuity starting date) by (2) the number of
anticipated payments determined under the
table in § 72(d)(1)(B)(iii).

Section 72(e), which was amended as
part of the Tax Reform Act of 1986, P.L.
99-514 ("TRA '86"), provides rules that
apply to any amount which is received
under an annuity, endowment, or life in-
surance contract and is not received as an
annuity. Section 72(e)(2)(B) provides that
if an amount to which § 72(e) applies is
received before the annuity starting date,
then it is included in gross income to the
extent allocable to income on the contract
and is excluded from gross income to the
extent allocable to the investment in the
contract.

Section 72(e)(8) provides special rules
for amounts not received as an annuity
from a trust or contract described in

§ 72(e)(5)(D) (which includes a qualified
retirement plan described in § 401(a)).
Under § 72(e)(8)(B) and (C), the amount
allocated to the investment in the contract
is the portion of the distribution which
bears the same ratio to the amount of the
distribution as the investment in the con-
tract bears to the vested account balance.
Section 72(e)(8)(B) provides that this de-
termination is made at the time of the
distribution or at a time prescribed by the
Secretary.

The Report of the Senate Finance Com-
mittee for TRA '86 (S. Rep. No. 99-313,
99th Cong., 2d Sess. 610 (1986)) describing
the amendment to § 72(e)(8) states:

The bill modifies the basis recovery rules for
pre-annuity starting date distributions to pro-
vide for the pro rata recovery of employee
contributions. Thus, with respect to a pre-
annuity starting date distribution, a partici-
pant is entitled to exclude that portion of the
payment that bears the same ratio to the total
payment as the participant's after-tax em-
ployee contributions (and amounts treated as
after-tax employee contributions) bears to
the total value of the participant's accrued
benefit (or account balance) under the plan as
of the date of distribution or as of such other
time as the Secretary may prescribe. The
Secretary is authorized to prescribe appropri-
ate rules for estimating the amounts referred
to in the prior sentence if precise calculations
would be unjustifiably burdensome.

The Conference Committee Report for
TRA '86 states that, with respect to the
basis recovery rules for pre-annuity start-
ing date distributions, the "conference
agreement generally follows the Senate
amendment." H.R. Rep. No. 99-84
(Conf. Report), 99th Cong. 2d Sess. II-
462 (1986).

Section 401(a)(11)(A) provides, in
general, that in the case of any plan to
which the paragraph applies, a trust form-
ing part of such plan shall not constitute a
qualified trust unless (i) in the case of a
vested participant who does not die before
the annuity starting date, the accrued ben-
efit payable to such participant is provided
in the form of a qualified joint and survi-
vor annuity, and (ii) in the case of a vested
participant who dies before the annuity
starting date and who has a surviving
spouse, a qualified preretirement annuity

1For purposes of this notice, the Civil Service Retirement System in chapter 83 of title 5, United States Code, and the Basic Benefit Plan of the Federal Employees' Retirement System,
in subchapters I, II, and VI of chapter 84 of title 5, United States Code, are treated as qualified defined benefit plans.

is provided to the surviving spouse of
such participant.

The flush language following
§ 401(a)(37) provides, however, that
§ 401(a)(11) applies only in the case of a
plan to which § 411 applies. Section
411(e) provides that § 411 generally does
not apply to certain plans, including gov-
ernmental and church plans.

Section 1.72-2(b)(2) provides in gen-
eral that amounts subject to § 72 are
considered "amounts received as an an-
nuity" only if (i) the amounts are re-
ceived on or after the annuity starting
date,2 as defined in § 1.72-4(b), (ii) the
amounts are payable in periodic install-
ments at regular intervals over a period
of more than one full year from the
annuity starting date, and (iii) subject to
certain exceptions, the total of the
amounts payable are determinable at the
annuity starting date either directly from
the terms of the contract or indirectly by
the use of either mortality tables or com-
pound interest computations, or both, in
conjunction with the terms of the con-
tract and in accordance with sound ac-
tuarial theory.

Section 1.72-4(b)(1) provides that the
term "annuity starting date" is generally
the first day of the first period for which
the first periodic payment is made under
an annuity contract, provided that obliga-
tions under the contract have been fixed as
of that date.

Q&A-11 of Notice 87-13, 1987-1
C.B. 432, provides that, with respect to
distributions from a defined benefit plan
before the annuity starting date, the pres-
ent value of the vested portion of the total
accrued benefit of a participant under the
plan (calculated using the plan's factors if
the plan provides for a total distribution in
the form of a lump sum, and, in other
cases, using the factors specified under
§ 20.2031-7) is to be treated as the value
of the vested portion of the account bal-
ance for purposes of § 72(e)(8)(B).

Section 7520, added to the Code by the
Technical and Miscellaneous Revenue
Act of 1988, P.L. 100-647, provides that
the value of an annuity shall be deter-

mined under tables prescribed by the Sec-
retary and by using an interest rate equal
to 120 percent of the Federal midterm
rate. While the tables under § 20.2031-7
have been revised to take into account the
enactment of § 7520, § 7520(b) provides
that § 7520 does not apply for purposes of
part I of subchapter D of chapter 1 (in-
cluding § 402). Further, § 1.7520-3(a)
provides that § 7520 does not apply to
§ 72 unless otherwise provided in the reg-
ulations under § 72.

### III. TREATMENT OF PHASED RETIREMENT PAYMENTS UNDER SECTION 72

A. When payments received by phased
retiree during phased retirement are
treated as amounts not received as an
annuity

Depending on a qualified plan's terms,
the plan's obligations to an employee re-
ceiving phased retirement payments might
not be fixed within the meaning of § 1.72-
4(b)(1) during the employee's continued
part-time employment. For example, if the
terms of the phased retirement program do
not fix the employee's date of full retire-
ment, the plan will not, during the period
of part-time employment, be able to de-
termine its total retirement obligations to
the employee. An employee's date of full
retirement is not fixed if the date can
change, for example, due to a unilateral
decision of the employee to commence
full retirement sooner or pursuant to an
agreement between the employer and em-
ployee to change the full retirement date.
Also, an employee might accrue addi-
tional plan benefits during the period of
phased retirement that affect the amounts
payable to the employee at full retirement.
Further, the plan might allow an employee
to elect a distribution option at the time of
full retirement that could also alter the
plan's obligations to the employee. Lastly,
a qualified retirement plan might be
amended to modify the benefit formula
with respect to benefits that are not yet
accrued during the period of part-time em-
ployment.

Accordingly, payments received by an
employee from a qualified retirement plan
during phased retirement are not received
as an annuity for purposes of § 72 if all the
following conditions apply:

1\. The employee begins to receive a por-
tion of his or her retirement benefits
when he or she enters phased retire-
ment and begins part-time employ-
ment, and will not begin receiving his
or her entire plan benefits until he or
she ceases employment and com-
mences full retirement at an indetermi-
nate future time (for this purpose, even
if a full retirement date is agreed upon
at commencement of phased retire-
ment, the employee's date of full re-
tirement is indeterminate as long as it
is possible that date could change);

2\. The plan's obligations to the employee
are based in part on the employee's
continued part-time employment
(which affects both the duration of the
payment of phased retirement benefits
and the amount of additional retire-
ment benefits the employee accrues
during that period of part-time employ-
ment); and

3\. Under the plan terms, the employee
does not have an election as to the form
of the phased retirement benefit to be
paid during phased retirement, but
elects a distribution option at full re-
tirement that applies to the employee's
entire retirement benefit, including the
portion that commenced as phased re-
tirement benefits.

B. Present value factors for purposes of
calculating phased retiree's accrued
benefit under § 72(e)(8)

To the extent the phased retirement
payments received from a qualified de-
fined benefit plan during the period of
part-time employment are amounts not re-
ceived as an annuity, the rules of
§ 72(e)(8) apply. Under these rules, the
amount excludible from an employee's
gross income is a portion of each pay-
ment, determined by multiplying the
amount of the payment by the ratio of the
employee's investment in the contract

2Flush language in § 1.72-2(b)(2) provides that this provision of § 1.72-2(b)(2) is disregarded for purposes of determining whether amounts subject to § 72(d) and § 1.72-13 are amounts
received as an annuity, but this regulation was not modified to reflect an amendment to the Code that was made after the regulation was issued. The flush language was included in the
regulation when it was issued in 1956. T.D. 6211, 21 FR 8853. At that time, § 72(d) (and § 1.72-13) applied a special three year rule for the recovery of basis from amounts received
as an annuity by an employee. This special rule was repealed by TRA '86, and the § 72(d) subsection was later used for a new rule by the Small Business Job Protection Act of 1996, P.L.
104-188. Accordingly, the flush language of § 1.72-2(b)(2) no longer reflects the current statute.

(that is, the employee's basis) to the total
value of the employee's accrued benefit
(this ratio is referred to in this notice as
the basis recovery fraction). If a plan has
present value factors that are used for pur-
poses of calculating lump sum distribu-
tions (including partial lump sum distribu-
tions), those factors (rather than the
factors specified in § 20.2031-7) are to be
used in calculating the value of the ac-
crued benefit for purposes of determining
the excludible portion of a payment.

C. Time for determining basis recovery
fraction under § 72(e)(8)

In order to determine the amount allo-
cated to basis under § 72(e)(8) and ex-
cludible from each phased retirement ben-
efit payment, the basis recovery fraction
determined in accordance with Section
III.B. of this notice must be applied to
each payment. Generally, the basis recov-
ery fraction is determined as of the date of
the payment to which it is applied, but the
incremental changes to the basis recovery
fraction resulting from any after-tax con-
tributions made during the period of con-
tinued part-time employment and changes
in the present value of accrued benefits
during this period typically would have no
more than a minimal effect on the amount
excludible from the employee's phased
retirement payments. Therefore, the Trea-
sury Department and the Internal Revenue
Service have determined that requiring the
repeated recalculation of the basis recov-
ery fraction for each such payment would
be unjustifiably burdensome.

Pursuant to the authority provided by
§ 72(e)(8)(B), the basis recovery fraction
with respect to a phased retirement pay-
ment need not be redetermined as the em-
ployee makes additional after-tax contri-
butions and the present value of the
accrued benefit changes during the period
of part-time employment. Instead, the ba-
sis recovery fraction applicable to a series
of phased retirement payments is permit-
ted to be fixed at the time those payments
commence. When an employee com-
mences full retirement, the employee's in-
vestment in the contract as of the annuity
starting date will take into account the
investment in the contract recovered dur-
ing the period of part-time employment
and any additional employee contribu-
tions made during that period.

### IV. EXAMPLE OF BASIS RECOVERY CALCULATIONS FOR PHASED RETIREMENT AND FULL RETIREMENT PAYMENTS

Employer X maintains Plan A, a de-
fined benefit plan providing for after-tax
employee contributions that is qualified
under § 401(a). Plan A is a qualified gov-
ernmental plan under § 414(d), and ac-
cordingly, is not subject to the rules of
§ 401(a)(11).

Employer X maintains a phased retire-
ment program under Plan A. Under this
program, an employee of Employer X
who participates in Plan A and is eligible
for immediate retirement under that plan
may elect to continue employment with
Employer X on a part-time basis, while
beginning to receive a portion of his or her
retirement benefits. An employee who en-
ters phased retirement under this program
continues to earn additional retirement
benefits and make after-tax contributions
based upon the employee's continuing
part-time employment.

Under the phased retirement program,
Employer X and an employee participat-
ing in the program may agree that the
employee's part-time employment will
continue for a specified period of time.
However, Employer X and the employee
may agree at any time to change that
period of part-time employment.

The Plan A benefit payments paid to an
employee, who is a phased retiree under
the phased retirement program, during the
period of part-time employment (the
"phased retirement benefit") will be the
product of (a) the amount that would have
been paid to the employee if he or she had
fully retired at the time part-time employ-
ment and phased retirement commenced
and elected a single life annuity, and (b)
the employee's phased retirement percent-
age. An employee's phased retirement
percentage is the percentage of his or her
full-time schedule the employee is not
scheduled to work during this phased re-
tirement period. Plan A requires that the
phased retirement benefit be paid in the
form of a single life annuity with no elec-
tion to receive the benefit in any other
form (which is permitted because Plan A
is a governmental plan that is not subject
to § 401(a)(11)).

When a part-time employee who has
elected phased retirement terminates em-
ployment and fully retires, the phased re-
tirement benefits cease, and the employee
begins to receive a total retirement annu-
ity. This total retirement annuity is equal
to the monthly benefit paid during the
phased retirement period of part-time em-
ployment, increased by any applicable
cost-of-living adjustments, plus an addi-
tional amount. The additional amount is
equal to the product of (a) the monthly
amount that would have been payable un-
der Plan A at the time of full retirement if
the employee had not elected phased re-
tirement (that is, as if the employee had
continued to be employed under his or her
full-time schedule), and (b) the employ-
ee's working percentage (which is, one
minus the employee's phased retirement
percentage). The employee may elect to
receive the total retirement annuity in the
form of a joint and survivor annuity.

Employee M participates in Plan A and
is fully vested in his benefits. In Year 1
Employee M elected to begin part-time
employment and phased retirement under
Employer X's phased retirement program
and to work 40 percent of his full-time
schedule. Accordingly, Employee M had
a working percentage of 40 percent and a
phased retirement percentage of 60 per-
cent. If Employee M had fully retired at
the time he began part-time employment,
he would have been entitled to a single
life annuity under Plan A of $2,000 per
month. Employee M received his first
monthly payment under the phased retire-
ment program in April of Year 1, at age
63. During his part-time employment in
Year 1, Employee M received payments
from Plan A of $1,200 per month ($2,000
X 60 percent). These payments were an-
nually increased with a cost-of-living ad-
justment, resulting in a monthly payment
of $1,225 in Year 2 and a monthly pay-
ment of $1,250 in Year 3 until Employee
M fully retires with payments of his total
retirement annuity beginning in April of
Year 3. Employee M receives his final
monthly payment from Plan A under the
phased retirement program in March of
Year 3.

At the time of his full retirement at age
65, Employee M would have been entitled
to a single life annuity from Plan A of
$2,400 per month if he had not elected

phased retirement. At full retirement, Em-
ployee M's total retirement annuity pay-
able from Plan A as a single life annuity is
$2,210 per month, equal to the sum of
$1,250 and $960 ($2,400 X 40 percent).
At the time of full retirement, Employee
M elects a joint and survivor benefit based
on the total retirement annuity of $2,210
per month. The survivor annuity is pay-
able to Employee M's spouse, who is age
60 at the time of Employee M's full re-
tirement.

At the time Employee M elected to
commence phased retirement and to begin
part-time employment under Employer
X's phased retirement program, he had
made after-tax contributions to Plan A of
$50,000. During the period of part-time
employment, Employee M made an addi-
tional $5,000 in after-tax contributions to
Plan A.

Plan A does not pay total distributions
in the form of a lump sum, but pays partial
lump sum distributions to participants in
certain circumstances. At the time Em-
ployee M commenced part-time employ-
ment in order to commence receiving ben-
efits under the phased retirement program,
the present value factor used under Plan A
to determine a single sum equivalent of an
immediate annuity for an employee at age
63 was $180 for each dollar of monthly
annuity.

Based on the present value factors un-
der Plan A, the present value of Employee
M's benefit as of the time phased retire-
ment benefits commenced under the plan
and Employee M began part-time employ-
ment equaled $360,000 ($2,000 X 180).
Accordingly, Employee M's basis recov-
ery fraction is 13.9 percent, determined by
dividing $50,000 (the total of after-tax
contributions as of that time) by $360,000
(the present value of Employee M's ac-
crued benefit). This basis recovery frac-

tion is applied to the first distribution to
determine the amount includible in gross
income.

In accordance with Section III.C of this
Notice, at the time phased retirement ben-
efits begin, the plan administrator of Plan
A fixes an employee's basis recovery frac-
tion that applies to all of the employee's
phased retirement payments during the
period of part-time employment. This
means that 13.9 percent of each phased
retirement payment is allocable to Em-
ployee M's investment in the contract and
is therefore not includible in gross in-
come.

Because Employee M commenced
phased retirement in April of Year 1 and
fully retires in April of Year 3, under the
phased retirement program Employee M
receives nine monthly payments of $1,200
in Year 1, 12 monthly payments of $1,225
in Year 2, and three monthly payments of
$1,250 in Year 3. Employee M therefore
recovers basis under the phased retirement
program of $1,501.20 in Year 1 (13.9
percent X 9 X $1,200), $2,043.36 in Year
2 (13.9 percent X 12 X $1,225), and
$521.25 in Year 3 (13.9 percent X 3 X
$1,250) for a total recovered basis from
the phased retirement payments of
$4,065.81.

Under § 72(c)(1), with respect to pay-
ments at full retirement, Employee M's
investment in the contract as of the annu-
ity starting date takes into account the
investment in the contract recovered dur-
ing the period of part-time employment
and any additional employee contribu-
tions made during that period. At the an-
nuity starting date, Employee M has an
investment in the contract of $50,934.19
($50,000 plus $5,000 in additional contri-
butions minus $4,065.81 in recovered ba-
sis). Because Employee M is receiving a
joint and survivor annuity, the number of

anticipated payments is determined under
the table applicable to annuities payable
over the lives of more than one person set
forth in § 72(d)(1)(B)(iv). Further, be-
cause the combined age of Employee M
and the survivor annuitant is 125, the
number of anticipated payments set forth
in that section is 310. Accordingly, the
portion of each monthly annuity payment
allocable to investment in the contract is
$164.30 ($50,934.19 divided by 310).
This portion of each monthly payment to
Employee M (or his beneficiary) during
full retirement is excludible from income
until the investment in the contract
($50,934.19) is recovered.

# V. EFFECT ON OTHER DOCUMENTS

Notice 87-13 is modified.

# VI. EFFECTIVE DATE

This notice applies to taxable years be-
ginning on or after January 1, 2016. Tax-
payers may, however, elect to apply the
notice to taxable years beginning before
that date. This notice does not apply to
amounts received from non-qualified con-
tracts.

# VII. DRAFTING INFORMATION

The principal author of this notice is
Robert M. Walsh of the Office of the
Associate Chief Counsel (Tax Exempt
and Government Entities). However,
other personnel from the Treasury Depart-
ment and the IRS participated in the de-
velopment of this guidance. For further
information regarding this notice, you
may contact Mr. Walsh at 202-317-4102
(not a toll-free number).

Note. This revenue procedure will be reproduced as the next revision of IRS Publication 1167, General Rules and Specifications for
Substitute Forms and Schedules.

# Rev. Proc. 2016-34 TABLE OF CONTENTS

## Part 1 - INTRODUCTION TO SUBSTITUTE FORMS

Section 1.1 - Overview of Revenue Procedure 2016-34

1073

Section 1.2 - IRS Contacts

1074

Section 1.3 - What's New

1075

Section 1.4 - Definitions

1075

Section 1.5 - Agreement

1076

Part 2 - GENERAL GUIDELINES FOR SUBMISSIONS AND APPROVALS

Section 2.1 - General Specifications for Approval

1077

Section 2.2 - Highlights of Permitted Changes and Requirements

1078

Section 2.3 - Vouchers

1079

Section 2.4 - Restrictions on Changes

1081

Section 2.5 - Guidelines for Obtaining IRS Approval

1081

Section 2.6 - Office of Management and Budget (OMB) Requirements for All Substitute Forms

1084

Part 3 - PHYSICAL ASPECTS AND REQUIREMENTS

Section 3.1 - General Guidelines for Substitute Forms

1085

Section 3.2 - Paper

1086

Section 3.3 - Printing

1087

Section 3.4 - Margins

1088

Section 3.5 - Examples of Approved Formats

1088

Section 3.6 - Miscellaneous Information for Substitute Forms

1089

Part 4 - ADDITIONAL RESOURCES

Section 4.1 - Guidance From Other Revenue Procedures

1089

Section 4.2 - Electronic Tax Products

1090

Section 4.2 - System Requirements and Ordering Forms and Instructions

1090

Part 5 - REQUIREMENTS FOR SPECIFIC TAX RETURNS

Section 5.1 - Tax Returns (Forms 1040, 1040A, 1120, etc.)

1090

Section 5.2 - Changes Permitted to Graphics (Forms 1040A and 1040)

1091

Section 5.3 - Changes Permitted to Form 1040A Graphics

1092

Section 5.4 - Changes Permitted to Form 1040 Graphics

1092

Part 6 - FORMAT AND CONTENT OF SUBSTITUTE RETURNS

Section 6.1 - Acceptable Formats for Substitute Forms and Schedules

1093

Section 6.2 - Additional Instructions for All Forms

1094

Part 7 - MISCELLANEOUS FORMS AND PROGRAMS

Section 7.1 - Specifications for Substitute Schedules K-1

1096

Section 7.2 - Guidelines for Substitute Forms 8655

1100

Part 8 - ADDITIONAL INFORMATION

Section 8.1 - Forms for Electronically Filed Returns

1101

Section 8.2 - Effect on Other Documents

1102

Section 8.3 - Exhibits.

1102

# Part 1 Introduction to Substitute Forms

## Section 1.1 - Overview of Revenue Procedure 2016-34

### 1.1.1 Purpose

The purpose of this revenue procedure is to provide guidelines and general requirements for the
development, printing, and approval of substitute tax forms. Approval will be based on these
guidelines. After review and approval, submitted forms will be accepted as substitutes for official
IRS forms.

### 1.1.2 Unique Forms

Certain unique specialized forms require the use of other additional publications to supplement
this publication. See Part 4.

### 1.1.3 Scope

The IRS accepts quality substitute tax forms that are consistent with the official forms and
have no adverse impact on our processing. The IRS Substitute Forms Unit administers the
formal acceptance and processing of these forms nationwide. While this program deals with
paper documents, it also reviews for approval other processing and filing forms such as those
used in electronic filing.

Only those substitute forms that comply fully with these requirements are acceptable. This
revenue procedure is updated as required to reflect pertinent tax year form changes and to meet
processing and/or legislative requirements.

### 1.1.4 Forms Covered by This Revenue Procedure

The following types of forms are covered by this revenue procedure:

· IRS tax forms and their related schedules,

· Worksheets as they appear in instruction packages,

· Applications for permission to file returns electronically and forms used as required documenta-
tion for electronically filed returns,

· Powers of Attorney,

· Over-the-counter estimated tax payment vouchers, and

· Forms and schedules relating to partnerships, exempt organizations, and employee plans.

### 1.1.5 Forms Not Covered by This Revenue Procedure

The following types of forms are not covered by this revenue procedure.

· W-2 and W-3 (see Pub. 1141 for information on these forms).

· W-2c and W-3c (see Pub. 1223 for information on these forms).

· 941, Schedule B (Form 941), Schedule D (Form 941), and Schedule R (Form 941) (see Pub. 4436
for information on these forms).

· 1096, 1097-BTC, 1098 series, 1099 series, 3921, 3922, 5498 series, W-2G, 1042-S (see Pub.
1179 for information on these forms).

· 1095-A, 1094-B, 1095-B, 1094-C, and 1095-C (see Pub. 5223 for information on these forms).

· 8027 (see Pub. 1239 for information on this form).

· Forms 1040-ES (OCR) and 1041-ES (OCR), which may not be reproduced.

· Forms 5500 (for more information on these forms, see the Department of Labor website at
www.efast.dol.gov).

· Forms 5300, 5307, 8717, and 8905, bar-coded forms requiring separate approval.

· Forms used internally by the IRS.

· State tax forms.

· Forms developed outside the IRS.

#### 1.1.6 Other Information Not Covered by This Revenue Procedure

The following information is not covered by this revenue procedure.

· Requests for information or documentation initiated by the IRS.

· General Instructions and Specific Instructions (these are not reviewed by the Substitute Forms
Program Unit).

## Section 1.2 - IRS Contacts

### 1.2.1 Where To Send Substitute Forms

Send your substitute forms for approval to the following offices (do not send forms with taxpayer
data):

Form

Office and Address

5500

Check EFAST2 information at the Department of La- bor's website at www.efast.dol.gov

5300, 5307, 8717, and 8905

Sandra.K.Barnes&amp;commat; irs. gov

Software developer vouchers (see Sections 2.3.7 - 2.3.9)

Internal Revenue Service Attn: Doris Bethea 5000 Ellin Road, C5-226

Lanham, MD 20706

Doris.E.Bethea&amp;commat; irs. gov

Software developers and form producers must mail Forms 1094-B, 1095-B, 1094-C, and 1095-C for testing (for more informa- tion, see Pub. 5223)

scrips@irs.gov

All others covered by this publication (see section 1.1.4, earlier).

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

For questions about:

· Forms W-2 and W-3, refer to Pub. 1141, General Rules and Specifications for Substitute Forms
W-2 and W-3.

· Forms W-2c and W-3c, refer to Pub. 1223, General Rules and Specifications for Substitute Forms
W-2c and W-3c.

· Form 941 and Schedules B, D, and R, refer to Pub. 4436, General Rules and Specifications for
Substitute Form 941, Schedule B (Form 941), Schedule D (Form 941), and Schedule R (Form 941).

· Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S, refer to Pub. 1179,
General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other
Information Returns.

· For Forms 1095-A, 1094-B, 1095-B, 1094-C, and 1095-C, refer to Pub. 5223, General
Rules & Specifications for Affordable Care Act Substitute Forms 1095-A, 1094-B, 1095-B,
1094-C, and 1095-C.

· Form 8027, refer to Pub. 1239, Specifications for Filing Form 8027, Employer's Annual Infor-
mation Return of Tip Income and Allocated Tips, Electronically.

Section 1.3 - What's New

1.3.1 What's New

The following changes have been made to this year's revenue procedure. . . 01 Editorial Changes. We made editorial changes throughout and redundancies were eliminated as much as possible.

Section 1.4 - Definitions

1.4.1 Substitute Form

A tax form (or related schedule) that differs in any way from the official version and is intended to replace the form that is printed and distributed by the IRS. This term also covers those approved substitute forms exhibited in this revenue procedure.

1.4.2 Printed/ Preprinted Form

A form produced using conventional printing processes, or a printed form which has been reproduced by photocopying or a similar process.

1.4.3 Preprinted Pin- Fed Form

A printed form that has marginal perforations for use with automated and high-speed printing equipment.

1.4.4 Computer Prepared Substitute Form

A preprinted form in which the taxpayer's tax entry information has been inserted by a computer, computer printer, or other computer-type equipment.

1.4.5

A tax return or form that is entirely designed and printed using a computer printer on plain white paper. This return or form must conform to the physical layout of the corresponding IRS form, although the typeface may differ. The text should match the text on the officially printed form as closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis. Exception. All jurats (perjury statements) must be reproduced verbatim.

Computer Generated Substitute Tax Return or Form

1.4.6 Manually Prepared Form

A preprinted reproduced form in which the taxpayer's tax entry information is entered by an individual using a pen, pencil, typewriter, or other non-automated equipment.

1.4.7 Graphics

Parts of a printed tax form that are not tax amount entries or required text. Examples of graphics are line numbers, captions, shadings, special indicators, borders, rules, and strokes created by typesetting, photographics, photocomposition, etc.

1.4.8 Acceptable Reproduced Form

A legible photocopy or an exact replica of an original form.

1.4.9

A document providing detailed information to support a line entry on an official or approved substitute form and filed with (attached to) a tax return.

Supporting Statement

(Supplemental Schedule)

Note. A supporting statement is not a tax form and does not take the place of an official form.

1.4.10

The following specific terms are used throughout this revenue procedure in reference to all substitute forms: format, sequence, line reference, item caption, and data entry field.

Specific Form Terms

1.4.11 Format

The overall physical arrangement and general layout of a substitute form.

1.4.12 Sequence

Sequence is an integral part of the total format requirement. The substitute form should show the same numeric and logical placement order of data, as shown on the official form.

1.4.13 Line Reference

The line numbers, letters, or alphanumerics used to identify each captioned line on an official form. These line references are printed to the immediate left of each caption and/or data entry field.

1.4.14 Item Caption

The text on each line of a form, which identifies the data required.

1.4.15 Data Entry Field

Designated areas for the entry of data such as dollar amounts, quantities, responses, and checkboxes.

1.4.16 Advance Draft

A draft version of a new or revised form may be posted to the IRS website (www.irs.gov/ap/ picklist/list/draftTaxForms.html) for information purposes. Substitute forms may be submitted based on these advance drafts, but any submitter that receives forms approval based on these early drafts is responsible for monitoring and revising forms to mirror any revisions in the final forms provided by the IRS.

1.4.17 Approval

Generally, approval could be in writing or assumed after 20 business days from our receipt for forms that have not been substantially changed by the IRS. This does not apply to newly created or substantially revised IRS forms. However, the Substitute Forms Unit reserves the right to notify vendors of any inaccuracies even after 20 business days have lapsed.

Section 1.5 - Agreement

1.5.1 Important Stipulation of This Revenue Procedure

Any person or company who uses substitute forms and makes all or part of the changes specified in this revenue procedure agrees to the following stipulations.

· The IRS presumes that any required changes are made in accordance with these procedures and will not be disruptive to the processing of the tax return. · Should any of the changes be disruptive to the IRS's processing of the tax return, the person or company agrees to accept the determination of the IRS as to whether the form may continue to be filed. · The person or company agrees to work with the IRS in correcting noted deficiencies. Notification of deficiencies may be made by any combination of letter, email, or phone contact and may include the request for the re-submission of unacceptable forms.

1.5.2 Response Policy and Stipulations

The Substitute Forms Unit (the Unit) will email confirmation of receipt of your forms submission, if possible. Even if you do not receive emailed confirmation of receipt, you will receive an emailed "submission receipt," which will provide feedback on your submission. If the Unit anticipates problems in completing the review of your submission within the 20 business day period, the Unit will send an interim email notifying you of the extended period for review. Once the substitute forms have been approved by the Substitute Forms Unit, you can release them after the final versions of the forms have been issued by the IRS. Before releasing the forms, you are responsible for updating forms approved as draft and for making form changes we requested.

The policy has the following stipulations.

· This 20-day policy applies to electronic submissions only. It does not apply to substitute
submissions mailed to the unit.

· The policy applies to submissions of 15 (optimal) or fewer items and submissions containing 75
pages or less. Submissions of more than 15 items may require additional review time.

· If you send a large number of submissions within a short period of time, processing may be
delayed.

· Delays in processing could occur if the Unit finds significant errors in your submission or has
experienced an increase in submissions. The Unit will send you an interim email in this case.

· Any anticipated problems in processing your submission within the 20-day period will generate
an interim email on or about the 15th business day.

· If any significant inaccuracies are discovered after the 20-day period, the Unit reserves the right
to inform you and will require that changes be made to correct the inaccuracies.

· The policy does not apply to substantially revised forms or to new forms created by the IRS for
which you have already made an initial submission.

## Part 2 General Guidelines for Submissions and Approvals

### Section 2.1 - General Specifications for Approval

#### 2.1.1 Overview

If you produce any substitute tax forms that fully comply or follow the changes specifically
outlined by the Substitute Forms Unit, then you can generate your own substitute forms without
further approval. If your changes are more extensive, you must get IRS approval before using
substitute forms. More extensive changes include the use of a different typeface, font size, data
entry font size and type layout, and the condensing of line item descriptions to save space.

Note. The 20-day turnaround policy may not apply to extensive changes.

#### 2.1.2 Email Submissions

The Substitute Forms Program accepts submissions of substitute forms for review and approval
via email. The email address is substituteforms@irs.gov. Please include the term "PDF Submis-
sions" on the subject line.

Follow these guidelines.

· Your submission should include all the forms you wish to submit in one attached PDF file. Do not
email each form individually. Do not attach each individual form to an email.

· The emailed submission should include a maximum of 3 PDFs to include: a check sheet, a cover
letter or accompanying statement, and a single PDF that includes all of the forms listed on your
check sheet, cover letter, or accompanying statement.

· A submission should contain a maximum of 15 forms.

· An approval check sheet listing the forms you are submitting should always be included in the
PDF file along with the forms. Excluding the check sheet can slow the reviewing process down,
which can result in a delayed response to your submission. See a sample check sheet in Exhibit
F.

· Optimize PDF files before submitting.

· The maximum allowable email attachment is 2.5 megabytes. The Substitute Forms Unit accepts
zip files.

· To alleviate delays during the peak time of September through December, submit advance draft
forms as early as possible.

If the guidelines are not followed, you may need to resubmit.

Emailing PDF submissions will not expedite review and approval. Submitting your substitute
forms package via email is the preferred and suggested method for submitting forms for review.
If, for some reason, you are not able to email your submission(s), you can mail your submission(s)
to:

Internal Revenue Service

Attn: Substitute Forms Program

SE:W:CAR:MP:P:TP

5000 Ellin Road, C6-440

Lanham, MD 20706

2.1.3
Expediting the Process

Follow these basic guidelines for expediting the process:

· Always include a check sheet for the Substitute Forms Unit's response.

· Include an accompanying statement identifying most, if not all, of the deviations your substitute
forms may include which the official IRS version of the form does not.

· Follow the guidance in this publication for general substitute form guidelines. Follow the guidance
in specialized publications produced by the Substitute Forms Unit for other specific forms.

· To spread out the workload, send in draft versions of substitute forms when they are posted. Note.
Be sure to make any changes to approved drafts before releasing final versions.

### 2.1.4 Schedules

Schedules are considered to be an integral part of a complete tax return. A schedule may be
included as part of a form or printed separately.

### 2.1.5 Examples of Schedules That Must Be Submitted with the Return

Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is an example of
this situation. Its Schedules A through U have pages numbered as part of the basic return. For
Form 706 to be considered for approval, the entire form, including Schedules A through U, as
well as Schedule PC, must be submitted.

2.1.6
Examples of Schedules
That Can Be Submitted
Separately

However, Schedules C, D, and E for Form 1040 are examples of schedules that can be submitted
separately. Although printed by the IRS as a supplement to Form 1040, none of these schedules
are required to be filed with Form 1040. These schedules may be separated from Form 1040 and
submitted as substitute forms.

2.1.7
Use and Distribution of
Unapproved Forms

The IRS is continuing a program to identify and contact tax return preparers, forms developers,
and software publishers who use or distribute unapproved forms that do not conform to this
revenue procedure. The use of unapproved forms hinders the processing of the returns.

## Section 2.2 - Highlights of Permitted Changes and Requirements

2.2.1
Methods of Reproducing
Internal Revenue Service
Forms

There are methods of reproducing IRS printed tax forms suitable for use as substitutes without
prior approval:

. You can photocopy most tax forms and use them instead of the official ones. The entire substitute
form, including entries, must be legible.

· You can reproduce any current tax form as cut sheets, snap sets, and marginally punched, pin-fed
forms as long as you use an official IRS version as the master copy.

. You can reproduce a form that requires a signature as a valid substitute form. Many tax forms
(including returns) have a taxpayer signature requirement as part of the form layout. The
jurat/perjury statement/signature line areas must be retained and worded exactly as on the official

form. The requirement for a signature, by itself, does not prohibit a tax form from being properly
computer generated.

## Section 2.3 - Vouchers

### 2.3.1 Overview

All payment vouchers (Forms 940-V, 941-V, 943-V, 945-V, 1040-ES,1040-V, 1041-V, and
2290-V) must be reproduced in conjunction with their forms. Substitute vouchers must be the
same size as the officially printed vouchers. Vouchers that are prepared for printing on a laser
printer may include a scan line.

### 2.3.2 Scan Line Specifications

Item:

NNNNNNNNN AA XXXX

N NNNNNN NN

ABCDEF

Social Security Number/Employer Identification Number (SSN/EIN) has 9 numeric (N) spaces. ☒

Check Digits have 2 alpha (A) spaces.

Name Control has 4 alphanumeric (X) spaces. ☒

Master File Tax (MFT) Code has 2 numeric (N) spaces (see below).

Taxpayer Identification Number (TIN) Type has 1 numeric (N) space (see below).

Tax Period has 6 numeric (N) spaces in year/month format (YYYYMM).

Transaction Code has 3 numeric (N) spaces.

#### 2.3.3 MFT Code

Code Number for Forms:

· 1040 (family) - 30,

· 940 - 10,

· 941 - 01,

· 943 - 11,

· 944 - 14,

· 945 - 16,

· 1041-V - 05,

· 2290 - 60, and

· 4868 - 30.

## 2.3.4 TIN Type

Type Number for:

· Form 1040 (family), 4868 - 0, and

· Forms 940, 941, 943, 944, 945, 1041-V, and 2290 - 2.

## 2.3.5 Voucher Size

The voucher size must be exactly 8.0" x 3.25" (Forms 1040-ES and 1041-ES must be 7.625" X
3.0"). The document scan line must be vertically positioned 0.25 inches from the bottom of the
scan line to the bottom of the voucher. The last character on the right of the scan line must be
placed 3.5 inches from the right leading edge of the document. The minimum required horizontal
clear space between characters is .014 inches. The line to be scanned must have a clear band 0.25
inches in height from top to bottom of the scan line, and from border to border of the document.
"Clear band" means no printing except for dropout ink.

### 2.3.6 Print and Paper Weight

Vouchers must be imaged in black ink using OCR A, OCR B, or Courier 10. These fonts may not
be mixed in the scan line. The horizontal character pitch is 10 CPI. The preferred paper weight
is 20 to 24 pound OCR bond.

### 2.3.7 Specifications for Software Developers

Certain vouchers may be reproduced for use in the IRS lockbox system. These include the
1040-V, 1040-ES, 1041-V, the 940 family, and 2290 vouchers. Software developers must
follow these specific guidelines to produce scannable vouchers strictly for lockbox purposes. Also
see Exhibit E:

· The total depth must be 3.25 inches.

· The scan line must be .5 inches from the bottom edge and 1.75 inches from the left edge of the
voucher and left-justified.

· Software developers vouchers must be 8.5 inches wide (instead of 8 inches with a cut line).
Therefore, no vertical cut line is required. Scan line positioning must be exact.

· Do not use the over-the-counter format voucher and add the scan line to it.

· All scanned data must be in 12-point OCR A font.

· The 4-digit NACTP ID code or source should be placed under the payment indicator arrow.

· Windowed envelopes must not display the scan line in order to avoid disclosure and privacy
issues.

Note. All software developers must ensure that their software uses OCR A font so taxpayers will
be able to print the vouchers in the correct font.

## 2.3.8 Specific Line Positions

Follow these line specifications for entering taxpayer data in the lockbox vouchers.

Start Row

Start Column

Width

End Column

Line Specification for Taxpayer Data:

Taxpayer Name

Taxpayer Address, Apt.

Taxpayer City, State, ZIP

Foreign Country Name

Foreign Province/ Country

Foreign Postal Code

Line Specifications for Mail To

Data:

Mail Name

Mail Address

Mail City, State, ZIP

Line Specifications for:

Scan Line

n/a

2.3.9
How to Get Approval

To receive approval, please send in 25 voucher samples yearly for each form type or scenarios,
by December 9, 2017, for testing to the following address.

Internal Revenue Service
Attn: Doris Bethea, C5-226
5000 Ellin Road
Lanham, MD 20706

For further information, contact Doris Bethea, Doris.E.Bethea@irs.gov, at 240-613-5922.

## Section 2.4 - Restrictions on Changes

### 2.4.1 What You Cannot Do to Forms Suitable for Substitute Tax Forms

You cannot, without prior IRS approval, change any IRS tax form or use your own (non-
approved) versions including graphics, unless specifically permitted by this revenue procedure.
See Sections 2.5.7 to 2.5.11.

You cannot adjust any of the graphics on Forms 1040, 1040A, and 1040EZ (except in those areas
specified in Part 5 of this revenue procedure) without prior approval from the IRS Substitute
Forms Unit.

You cannot re-arrange or re-distribute data entry fields, and/or allow data entry fields to flow from
one page onto the next (i.e., each page of a substitute form must contain the exact number of data
entry fields as there are on the official IRS form). The order and flow of information on the
substitute form must be identical to the IRS version of the form. Some reproduced substitute
recipient statements can be in different formation, provided that the information required by the
regulations is supplied to the recipient. Publications for specific substitute forms will state these
allowances.

Note. The 20-day turnaround policy may not apply to extensive changes.

## Section 2.5 - Guidelines for Obtaining IRS Approval

2.5.1 Basic Requirements

Preparers who submit substitute privately designed, privately printed, computer-generated, or computer-prepared tax forms must develop these substitutes using the guidelines established in this part. These forms, unless there is an exception outlined by the revenue procedure, must be approved by the IRS before being filed.

2.5.2 Conditional Approval Based on Advanced Drafts

The IRS cannot grant final approval of your substitute form until the official form has been published. However, the IRS posts advance draft forms on its website at: www.irs.gov/app/ picklist/list/draftTaxForms.html.

We encourage submission of proposed substitutes of these advance draft forms and will grant conditional approval based solely on these early drafts. These advance drafts are subject to significant change before forms are finalized. If these advance drafts are used as the basis for your substitute forms, you will be responsible for subsequently updating your final forms to agree with the final official version. These revisions need not be resubmitted for further approval. Note. Approval of forms based on advance drafts will not be granted after the final version of an official form is published.

2.5.3

Follow these general guidelines when submitting substitute forms for approval.

Submission Procedures

· Any alteration of forms must be within the limits acceptable to the IRS. It is possible that, from one filing period to another, a change in law or a change in internal need (processing, audit, compliance, etc.) may change the allowable limits for the alteration of the official form. · When approval of any substitute form (other than those exceptions specified in Part 1, Section 1.2 - IRS Contacts) is requested, a sample of the proposed substitute form should be emailed for consideration to the Substitute Forms Unit at the address shown in Section 1.2.1.

· Schedules and forms (for example, Forms 3468, 4136, etc.) that can be used with more than one
type of return (for example, 1040, 1041, 1120, etc.) should be submitted only once for approval,
without regard to the number of different tax returns with which they may be associated. Also, all
pages of multi-page forms or returns should be submitted in the same package.

2.5.4 Approving Offices

Because only the Substitute Forms Unit is authorized to approve substitute forms, unnecessary delays may occur if forms are sent to the wrong office. You may receive an interim letter about the delay. The Substitute Forms Unit may then coordinate the response with the originator responsible for revising that particular form. Such coordination may include allowing the originator to officially approve the form. No IRS office is authorized to allow deviations from this revenue procedure.

2.5.5 IRS Review of Software Programs, etc.

The IRS does not review or approve the logic of specific software programs, nor does the IRS confirm the calculations on the forms produced by these programs. The accuracy of the program remains the responsibility of the software package developer, distributor, or user.

The Substitute Forms Unit is primarily concerned with the pre-filing quality review of the final forms that are expected to be processed by IRS field offices. For this purpose, you should submit forms without including any taxpayer information such as names, addresses, monetary amounts, etc.

If the software used is programmed to produce copies with populated fields only, then you must use dummy information . This will allow the Unit to review and provide feedback or approval. Vendors should use "0" for all number values and "X" for any information that requires alpha characters.

2.5.6 When To Send Proposed Substitutes

Proposed substitutes, which are required to be submitted per this revenue procedure, should be sent as much in advance of the filing period as possible. This is to allow adequate time for analysis and response.

2.5.7 Accompanying Statement

When submitting sample substitutes, you should include an accompanying statement that lists each form number and its changes from the official form (position, arrangement, appearance, line numbers, additions, deletions, etc.). With each of the items you should include a detailed reason for the change.

When requesting approval, please include a check sheet. Check sheets expedite the approval process. The check sheet may look like the example in Exhibit F displayed in the back of this procedure or may be one of your own design. Please include your email address on the check sheet. If the Unit will need to fax the check sheet, the number will be requested at that time.

2.5.8 Approval/Non- Approval Notice

The Substitute Forms Unit will email the check sheet or an approval letter to the originator, unless:

· The requester has asked for a faxed response or for a formal letter, or · Significant corrections to the submitted forms are required.

Notice of approval may impose qualifications before using the substitutes. Notices of unapproved forms may specify the changes required for approval and require re-submission of the form(s) in question. When appropriate, you will be contacted by telephone.

2.5.9 Duration of Approval

Most signature tax returns and many of their schedules and related forms have the tax (liability) year printed in the upper right corner. Approvals for these annual forms are usually good for one calendar year (January through December of the year of filing). Quarterly tax forms in the 94X series and Form 720 require approval for any quarter in which the form has been revised.

Because changes are usually made to an annual form every year, each new filing season generally requires a new submission of a substitute form. Very rarely is updating the preprinted year the only change made to an annual form. However, if no significant content, formatting, or layout changes were made to a tax form, then review and approval received for the prior tax year can be carried over into the current tax year.

2.5.10 Limited Continued Use of an Approved Change

Limited changes approved for one tax year may be allowed for the same form in the following tax year. Examples are the use of abbreviated words, revised form spacing, compressed text lines, and shortened captions, etc., which do not change the integrity of lines or text on the official forms.

If substantial changes are made to the form, new substitutes must be submitted for approval. If only minor editorial changes are made to the form, it is not subject to review. It is the responsibility of each vendor who has been granted permission to use substitute forms to monitor and revise forms to mirror any revisions to official forms made by the Service. If there are any questions, please contact the Substitute Forms Unit.

2.5.11 When Approval Is Not Required

If you received approval for a specific change on a form last year, you may make the same change this year if the item is still present on the official form: · The new substitute form does not have to be submitted to the IRS and approval based on that change is not required. · However, the new substitute form must conform to the official current year IRS form in other respects: date, Office of Management and Budget (OMB) approval number, attachment sequence number, Paperwork Reduction Act Notice statement, arrangement, item caption, line number, line reference, data sequence, etc. · The new substitute form must also comply with changes to the guidelines in this revenue procedure. The procedure may have eliminated, added to, or otherwise changed the guideline(s) that affected the change approved in the prior year. · An approved change is authorized only for the period from a prior tax year substitute form to a current tax year substitute form.

Exception. Forms with temporary, limited, or interim approvals (or with approvals that state a change is not allowed in any other tax year) are subject to review in subsequent years.

2.5.12 Continuous-Use Forms

Forms without preprinted tax years are called "continuous-use" forms. Continuous-use forms are revised when a legislative change affects the form or a change will facilitate processing. These forms frequently have revision dates that are valid for longer than one year.

2.5.13 Required Copies

Generally, you must send us one copy of each form being submitted for approval. However, if you are producing forms for different computer systems (for example, Microsoft compatible vs. Apple) or different types of printers and these forms differ significantly in appearance, submit one copy for each type of system or printer.

### 2.5.14 Requestor's Responsibility

Following receipt of an initial approval for a substitute forms package or a software output
program to print substitute forms, it is the responsibility of the originator (designer or distributor)
to provide client firms or individuals with forms that meet the IRS's requirements for continuing
acceptability. Examples of this responsibility include:

· Using the prescribed print paper, font size, legibility, state tax data deletion, etc., and

· Informing all users of substitute forms of the legal requirements of the Paperwork Reduction Act
Notice, which is generally found in the instructions for the official IRS forms.

### 2.5.15 Source Code

The Substitute Forms Unit will assign a unique source code to each firm that submits substitute
paper forms for approval. This source code will be a permanent identifier that must be used on
every submission by a particular firm.

The source code consists of three alpha characters and should generally be printed under or to the
left of the "Paperwork Reduction Act" statement. Vendors must ensure that the source code is not
printed too close to or within the left or bottom 1/2 inch margin to avoid the source code from
being cut off during printing.

## Section 2.6 - Office of Management and Budget (OMB) Requirements for All Substitute Forms

2.6.1

There are legal requirements of the Paperwork Reduction Act of 1995 (the Act). Public Law

OMB Requirements for All

104-13 requires the following.

Substitute Forms

· OMB approves all IRS tax forms that are subject to the Act. · Each IRS form contains (in the upper right corner) the OMB number, if assigned. · Each IRS form (or its instructions) states why the IRS needs the information, how it will be used, and whether or not the information is required to be furnished to the IRS.

This information must be provided to every user of official or substitute IRS forms or instructions.

2.6.2

On forms that have been assigned OMB numbers:

Application of the Paperwork Reduction Act

· All substitute forms must contain in the upper right corner the OMB number that is on the official form, and · The required format is: OMB No. 1545-XXXX (Preferred) or OMB # 1545-XXXX (Acceptable).

2.6.3

You must inform the users of your substitute forms of the IRS use and collection requirements stated in the instructions for official IRS forms. · If you provide your users or customers with the official IRS instructions, each form must retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice), or a reference to it as the IRS does on the official forms (usually in the lower left corner of the forms). · This notice reads, in part, "We ask for tax return information to carry out the tax laws of the United States .... " Note. If no IRS instructions are provided to users of your forms, the exact text of the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice) must be furnished separately or on the form.

Required Explanation to Users

2.6.4

The OMB number and the Paperwork Reduction Act Notice, or references to it, may be found

Finding the OMB Number and Paperwork Reduction Act Notice

printed on an official form (or its instructions). The number and the notice are included on the official paper format and in other formats produced by the IRS.

# Part 3 Physical Aspects and Requirements

## Section 3.1 - General Guidelines for Substitute Forms

3.1.4 Vertical Alignment of Amount Fields

3.1.1 General Information

The official form is the standard. Because a substitute form is a variation from the official form, you should know the requirements of the official form for the year of use before you modify it to meet your needs. To obtain the most frequently used tax forms, visit www.irs.gov/orderforms.

3.1.2 Design

Each form must follow the design of the official form as to format arrangement, item caption, line numbers, line references, and sequence.

3.1.3

Generally, state tax information must not appear on the federal tax return, associated form, or

State Tax Information Prohibited

schedule that is filed with the IRS. Exceptions occur when amounts are claimed on, or required by, the federal return (for example, state and local income taxes, on Schedule A of Form 1040).

IF a form is to be. . .

THEN. ..

Manually prepared

1. The entry column must have a vertical line or some type of indicator in the amount field to separate dollars from cents.

2. The cents column must be at least 3/10" wide.

Computer generated

1. Vertically align the amount entry fields where possible. 2. Use one of the following amount formats: a) 0,000,000, or b) 0,000,000.00.

Computer prepared

1. You may remove the vertical line in the amount field that separates dollars from cents. 2. Use one of the following amount formats: a) 0,000,000, or b) 0,000,000.00.

3.1.5 Attachment Sequence Number

Many individual income tax forms have a required "attachment sequence number" located just below the year designation in the upper right corner of the form. The IRS uses this number to indicate the order in which forms are to be attached to the tax return for processing. Some of the attachment sequence numbers may change from year to year.

The following applies to computer-prepared forms. · The sequence number may be printed in no less than 12-point boldface type and centered below the form's year designation. · The sequence number may also be placed following the year designation for the tax form and separated with an asterisk. · The actual number may be printed without labeling it the "Attachment Sequence Number."

3.1.6

When developing software or forms for use by others, please inform your customers/clients that the order in which the forms are arranged may affect the processing of the package. A return must be arranged in the order indicated below.

Assembly of Forms

IF the form is ...

THEN the sequence is. . .

1040

· Form 1040, and . Schedules and forms in attachment sequence number order.

Any other tax re- turn (Form 1120, 1120S, 1065, 1041, etc.)

· The tax returns, . Directly associated schedules (Schedule D, etc.), . Directly associated forms, . Additional schedules in alpha- betical order, and . Additional forms in numerical order.

Supporting statements should then follow in the same sequence as the forms they support.
Additional information required should be attached last.

In this way, the forms are received in the order in which they must be processed. If you do not
send returns to the IRS in order, processing may be delayed.

On Forms 1040EZ, 1040A, 1040, and 1120, etc., the "Paid Preparer Use Only" area may not be
rearranged or relocated. You may, however, add three extra lines to the paid preparer's address
area without prior approval. This applies to other tax forms as well.

## 3.1.7 Paid Preparer's Information and Signature Area

## 3.1.8 Some Common Reasons for Requiring Changes to Substitute Forms

Some reasons that substitute form submissions may require changes include the following.

· Failing to preprint certain amounts in entry spaces.

· Shading areas incorrectly.

· Failing to include a reference to the location of the Paperwork Reduction Act Notice.

· Not including parentheses for losses.

· Not including "Attach Statement" when appropriate.

· Including line references or entry spaces that do not match the official form.

· Printing text that is different from the official form.

· Altering the jurat (perjury statement).

## Section 3.2 - Paper

### 3.2.1 Paper Content

The paper must be:

· Chemical wood writing paper that is equal to or better than the quality used for the official form,

· At least 18 pound (17" x 22", 500 sheets), or

· At least 50 pound offset book (25" x 38", 500 sheets).

### 3.2.2 Paper with Chemical Transfer Properties

There are several kinds of paper prohibited for substitute forms. These are:

1\. Carbon-bonded paper, and

2\. Chemical transfer paper except when the following specifications are met:

a. Each ply within the chemical transfer set of forms must be labeled, and

b. Only the top ply (ply one and white in color), the one that contains chemical on the back
only (coated back), may be filed with the IRS.

### 3.2.3 Example

A set containing three plies would be constructed as follows: ply one (coated back), "Federal
Return, File with IRS"; ply two (coated front and back), "Taxpayer's copy"; and ply three (coated
front), "Preparer's copy."

The file designation, "Federal Return, File with IRS" for ply one, must be printed in the bottom
right margin (just below the last line of the form) in 12-point boldface type.

It is not mandatory, but recommended, that the file designation "Federal Return, File with IRS" be printed in a contrasting ink for visual emphasis.

3.2.4 Paper and Ink Color

It is preferred that the color and opacity of paper substantially duplicates that of the original form. This means that your substitute must be printed in black ink and may be on white or on the colored paper the IRS form is printed on. Forms 1040A and 1040 substitute reproductions may be in black ink without the colored shading. The only exception to this rule is Form 1041-ES, which should be printed with a PMS 100 yellow shading in the color screened area. This is necessary to assist us in expeditiously separating this form from the very similar Form 1040-ES.

3.2.5 Page Size

Substitute or reproduced forms and computer-prepared/-generated substitutes may be the same size as the official form or they may be the standard commercial size (8 1/2" x 11"). The thickness of the stock cannot be less than .003 inches.

Section 3.3 - Printing

3.3.1 Printing Medium

The private printing of all substitute tax forms must be by conventional printing processes, photocopying, computer graphics, or similar reproduction processes.

3.3.2 Legibility

All forms must have a high standard of legibility as to printing, reproduction, and fill-in matter. Entries of taxpayer data may be no smaller than eight points. The IRS reserves the right to reject those with poor legibility. The ink and printing method used must ensure that no part of a form (including text, graphics, data entries, etc.) develops "smears" or similar quality deterioration. This standard must be followed for any subsequent copies or reproductions made from an approved master substitute form, either during preparation or during IRS processing.

3.3.3 Type Font

Many federal tax forms are printed using "Helvetica" as the basic type font. It is preferred that you use this type font when composing substitute forms.

3.3.4 Print Spacing

Substitute forms should be printed using a 6 lines/inch vertical print option. They should also be printed horizontally in 10 pitch pica (that is, 10 print characters per inch) or 12 pitch elite (that is, 12 print positions per inch).

3.3.5 Image Size

The image size of a printed substitute form should be as close as possible to that of the official form. You may omit any text on both computer-prepared and computer-generated forms that is solely instructional.

3.3.6 Title Area Changes

To allow a large top margin for marginal printing and more lines per page, the title line(s) for all substitute forms (not including the form's year designation and sequence number, when present), may be photographically reduced by 40 percent or reset as one line of type. When reset as one line, the type size may be no smaller than 14-point. You may omit "Department of the Treasury-Internal Revenue Service" and all reference to instructions in the form's title area.

3.3.7 Remove Government Printing Office Symbol and IRS Catalog Number

When privately printing substitute tax forms, the Government Printing Office (GPO) symbol and/or jacket number must be removed. In the same place using the same type size, print the Employer Identification Number (EIN) of the printer or designer or the IRS assigned source code. (We prefer this last number be printed in the lower left area of the first page of each form.) Also,

remove the IRS Catalog Number (Cat. No.) and the recycle symbol if the substitute is not produced on recycled paper.

3.3.8 Printing on One Side of Paper

Even though the IRS uses both sides of the paper for printing official paper forms or schedules, the IRS will accept your forms if only one side of the paper is used.

3.3.9 Photocopy Equipment

The IRS does not undertake to approve or disapprove the specific equipment or process used in reproducing official forms. Photocopies of forms must be entirely legible and satisfy the conditions stated in this and other revenue procedures.

3.3.10 Reproductions

Reproductions of official forms and substitute forms that do not meet the requirements of this revenue procedure may not be filed instead of the official forms. Illegible photocopies are subject to being returned to the filer for re-submission of legible copies.

3.3.11 Removal of Instructions

Generally, you may remove references to instructions. No prior approval is needed. However, in some instances, you may be requested to include references to instructions.

Section 3.4 - Margins

Exception. The words "For Paperwork Reduction Act Notice, see instructions" must be retained, or a similar statement indicating the location of the Notice, must be provided on each form.

3.4.1 Margin Size

The format of a reproduced tax form when printed on the page must have margins on all sides at least as large as the margins on the official form. This allows room for IRS employees to make necessary entries on the form during processing. · A 1/2-inch to 1/4-inch margin must be maintained across the top, bottom, and both sides of all substitute forms. · The marginal, perforated strips containing pin-fed holes must be removed from all forms prior to filing with the IRS.

3.4.2 Marginal Printing

Prior approval is not required for the marginal printing allowed when printed on an official form or on a photocopy of an official form. · With the exception of the actual tax return forms (for example, Forms 1040, 1040A, 1040EZ, 1120, 940, 941, etc.), you may print in the left vertical margin and in the left half of the bottom margin. · Printing is never allowed in the top right margin of the tax return form (for example, Forms 1040, 1040A, 1040EZ, 1120, 940, 941, etc.). The Service uses this area to imprint a Document Locator Number for each return. There are no exceptions to this requirement.

Section 3.5 - Examples of Approved Formats

3.5.1 Examples of Approved Formats From the Exhibits

Exhibits A-D, at the end of this revenue procedure, are examples of how these guidelines may be used. Vertical spacing is six (6) lines to the inch. A combination of upper-case and lower-case print font is acceptable in producing substitute forms.

The same logic may be applied to any IRS form that is normally reproducible as a substitute form, with the exception of the tax return forms as discussed elsewhere.

## Section 3.6 - Miscellaneous Information for Substitute Forms

### 3.6.1 Filing Substitute Forms

To be acceptable for filing, a substitute form must print out in a format that will allow the filer
to follow the same instructions that accompany official forms. The form must be legible, must be
on the appropriately sized paper, and must include a jurat (perjury statement) where one appears
on the published form.

### 3.6.2 Caution to Software Publishers

The IRS has received returns produced by software packages with approved output where either
the form heading was altered or the lines were spaced irregularly. This produces an illegible or
unrecognizable return or a return with the wrong number of pages. We realize that many of these
problems are caused by individual printer differences but they may delay input of return data and,
in some cases, generate correspondence to the taxpayer. Therefore, in the instructions to the
purchasers of your product, both individual and professional, please stress that their returns will
be processed more efficiently if they are properly formatted. This includes:

· Having the correct form numbers, six-digit form identifying numbers, and titles at the top of the
return, and

· Submitting the same number of pages as if the form were an official IRS form with the line items
on the proper pages.

### 3.6.3 Caution to Producers of Software Packages

If you are producing a software package that generates name and address data onto the tax return,
do not under any circumstances program either the IRS preprinted check digits or a practitioner
derived name control to appear on any return prepared and filed with the IRS.

### 3.6.4 Programming Print Forms

Whenever applicable:

· Use only the following label information format for single filers: JOHN Q. DOE 000 OAK
DRIVE HOMETOWN, STATE 00000

· Use only the following information for joint filers: JOHN Q. DOE MARY Q. DOE 000 OAK
DRIVE HOMETOWN, STATE 00000

#### Part 4 Additional Resources

##### Section 4.1 - Guidance From Other Revenue Procedures

###### 4.1.1 General

The IRS publications listed below provide guidance for substitute tax forms not covered in this
revenue procedure. These publications are available on the IRS website. Identify the requested
document by the IRS publication number.

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

· Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and
Certain Other Information Returns.

· Pub. 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.

· Pub. 4436, General Rules and Specifications for Substitute Form 941, Schedule B (Form 941),
Schedule D (Form 941), and Schedule R (Form 941).

· Pub. 5223, General Rules and Specifications for Affordable Care Act Substitute Forms 1095-A,
1094-B, 1095-B, 1094-C, and 1095-C.

##### Section 4.2 - Electronic Tax Products

###### 4.2.1 The IRS Website

Copies of tax forms, their instructions, publications, fillable forms, and prior year forms and
publications, may be found on the IRS website at www.irs,gov/ formspubs.

Draft forms and instructions may be found at www.irs.gov/draftforms.

Other tax-related information may be found at www.irs.gov.

##### 4.3 System Requirements and Ordering Forms and Instructions

For system requirements, contact the National Technical Information Service (NTIS) at www.
ntis.gov. Prices are subject to change.

You can order IRS forms and other tax material at IRS.gov. Click on the Forms and Pubs link
and then the Order Forms and Pubs link.

Part 5
Requirements for Specific Tax Returns

###### Section 5.1 - Tax Returns (Forms 1040, 1040A, 1120, etc.)

###### 5.1.1 Acceptable Forms

Tax return forms (such as Forms 1040, 1040A, and 1120) require a signature and establish tax
liability. Computer-generated versions are acceptable under the following conditions.

· These substitute forms must be printed on plain white paper.

· Substitute forms must conform to the physical layout of the corresponding IRS form although the
typeface may differ. The text should match the text on the officially published form as closely as
possible. Condensed text and abbreviations will be considered on a case-by-case basis. Caution.
All jurats (perjury statements) must be reproduced verbatim. No text can be added, deleted, or
changed in meaning.

· Various computer graphic print media such as laser printing, inkjet printing, etc., may be used to
produce the substitute forms.

· The substitute form must be the same number of pages and contain the same line text as the
official form.

· All substitute forms must be submitted for approval prior to their original use. You do not need
approval for a substitute form if its only change is the preprinted year and you had received a prior
year approval letter.

Exception. If the approval letter specifies a one-time exception for your form, the next year's
form must be approved.

### 5.1.2 Prohibited Forms

The following are prohibited.

· Computer-generated tax forms (for example, Form 1040, etc.) on lined or color barred paper.

. Tax forms that differ from the official IRS forms in a manner that makes them non-standard or
unable to process.

### 5.1.3 Changes Permitted to Forms 1040 and 1040A

Certain changes (listed in Sections 5.2 through 5.4) are permitted to the graphics of the form
without prior approval, but these changes apply to only acceptable preprinted forms. Changes not
requiring prior approval are good only for the annual filing period, which is the current tax year.
Such changes are valid in subsequent years only if the official form does not change.

5.1.4
Other Changes Not Listed

All changes not listed in Sections 5.2 through 5.4 require approval from the IRS before the form
can be filed.

## Section 5.2 - Changes Permitted to Graphics (Forms 1040A and 1040)

### 5.2.1 Adjustments

You may make minor vertical and horizontal spacing adjustments to allow for computer or word
processing printing. This includes widening the amount columns or tax entry areas if the
adjustments comply with other provisions stated in revenue procedures. No prior approval is
needed for these changes.

5.2.2
Name and Address Area

The horizontal rules and instructions within the name and address area may be removed and the
entire area left blank. No line or instruction can remain in the area. The heavy ruled border (when
present) that outlines the name, address area, and social security number must not be removed,
relocated, expanded, or contracted.

5.2.3
Required Format

When the name and address area is left blank, the following format must be used when printing
the taxpayer's name and address.

· 1st name line (35 characters maximum).

· 2nd name line (35 characters maximum).

· In-care-of name line (35 characters maximum).

· City, state (25 characters maximum), one blank character, and ZIP code.

5.2.4
Conventional Name and
Address Data

When there is no in-care-of name line, the name and address will consist of only three lines
(single filer) or four lines (joint filer). Name and address (joint filer) with no in-care-of name line:

JOHN Q. DOE
MARY Q. DOE
000 ANYWHERE ST., APT. 000
ANYTOWN, STATE 00000

5.2.5
Example of In-Care-Of
Name Line

Name and address (single filer) with in-care-of name line:

JOHN Q. DOE
C/O JOHN R. DOE
0000 SOMEWHERE AVE.
SAMETOWN, STATE 00000

5.2.6

SSN and Employer

Identification Number

(EIN) Area

The broken vertical lines separating the format arrangement of the SSN/EIN may be removed.
When the vertical lines are removed, the SSN and EIN formats must be 000-00-0000 or
00-0000000, respectively.

5.2.7

. You may remove the vertical rule that separates the dollars from the cents.

Cents Column

. All entries in the amount column should have a decimal point following the whole dollar amounts whether or not the vertical line that separates the dollars from the cents is present. . You may omit printing the cents, but all amounts entered on the form must follow a consistent format. You are strongly urged to round off the figures to whole dollar amounts, following the official form instructions. · When several amounts are summed together, the total should be rounded off after addition (that is, individual amounts should not be rounded off for computation purposes). · When printing money amounts, you must use one of the following formats: (a) 0,000,000 .; (b) 0,000,000.00. · When there is no entry for a line, leave the line blank. When there is no entry for a line, leave the line blank.

5.2.8 "Paid Preparer's Use Only" Area

On all forms, the paid preparer's information area may not be rearranged or relocated. You may add three lines and remove the horizontal rules in the preparer's address area.

## Section 5.3 - Changes Permitted to Form 1040A Graphics

5.3.1 General

No prior approval is needed for the following changes (for use with computer-prepared forms only).

5.3.2 Line 4 of Form 1040A

This line may be compressed horizontally (to allow for same line entry for the name of the qualifying child) by using the following caption: "Head of household; child's name" (name field).

5.3.3 Other Lines

Any line with text that takes up two or more vertical lines may be compressed to one line by using contractions, etc., and by removing instructional references.

5.3.4 Page 2 of Form 1040A

All lines must be present and numbered in the order shown on the official form. These lines may also be compressed.

5.3.5 Color Screening

It is not necessary to duplicate the color screening used on the official form. A substitute Form 1040A may be printed in black and white only with no color screening.

5.3.6 Other Changes Prohibited

No other changes to the Form 1040A graphics are allowed without prior approval except for the removal of instructions and references to instructions.

## Section 5.4 - Changes Permitted to Form 1040 Graphics

### 5.4.1 General

No prior approval is needed for the following changes (for use with computer-prepared forms
only). Specific line numbers in the following headings may have changed due to tax law changes.

5.4.2 Line 4 of Form 1040

This line may be compressed horizontally (to allow for a larger entry area for the name of the qualifying child) by using the following caption: "Head of household; child's name" (name field).

5.4.3 Line 6c of Form 1040

The vertical lines separating columns (1) through (4) may be removed. The captions may be shortened to allow a one-line caption for each column.

5.4.4 Other Lines

Any other line with text that takes up two or more vertical lines may be compressed to one line by using contractions, etc., and by removing instructional references.

5.4.5 Line 21 - Other Income

The fill-in portion of this line may be expanded vertically to three lines. The amount entry box must remain a single entry.

5.4.6 Line 44 of Form 1040 - Tax

You may change the line caption to read "Tax" and computer print the words "Total includes tax from" and either "Form(s) 8814" or "Form 4972" or "962 election." If both forms are used, print both form numbers. This specific line number may have changed.

5.4.7

You may change the caption to read: "Other credits from Form" and computer print only the form(s) that apply.

Line 54 of Form 1040 - Other Credits

5.4.8

It is not necessary to duplicate the color screening used on the official form. A substitute Form 1040 may be printed in black and white only with no color screening.

Color Screening

5.4.9

No other changes to the Form 1040 graphics are permitted without prior approval except for the removal of instructions and references to instructions.

Other Changes Prohibited

Part 6 Format and Content of Substitute Returns

## Section 6.1 - Acceptable Formats for Substitute Forms and Schedules

### 6.1.1 Exhibits and Use of Accept- able Formats

Exhibits of acceptable formats for Schedule A, usually attached to the Form 1040, and Form
2106-EZ are shown in the exhibits section of this revenue procedure.

· If your computer-generated forms appear exactly like the exhibits, no prior authorization is
needed.

. You may computer-generate forms not shown here, but you must design them by following the
manner and style of those in the exhibits section.

· Take care to observe other requirements and conditions in this revenue procedure. The IRS
encourages the submission of all proposed forms covered by this revenue procedure.

### 6.1.2 Instructions

The format of each substitute form or schedule must follow the format of the official form or
schedule as to item captions, line references, line numbers, sequence, form arrangement and
format, etc. Basically, try to make the form look like the official one, with readability and
consistency being primary factors. You may use periods and/or other similar special characters to
separate the various parts and sections of the form. Do not use alpha or numeric characters for
these purposes. All line numbers and items must be printed even though an amount is not entered
on the line.

#### 6.1.3 Line Numbers

When a line on an official form is designated by a number or a letter, that designation (reference
code) must be used on a substitute form. The reference code must be printed to the left of the text
of each line and immediately preceding the data entry field, even if no reference code precedes
the data entry field on the official form. If an entry field contains multiple lines and shows the line
references once on the left and right side of the form, use the same number of line references on
the substitute form.

In addition, the reference code that is immediately before the data field must either be followed
by a period or enclosed in parentheses. There also must be at least two blank spaces between the
period or the right parenthesis and the first digit of the data field. (See Section 6.1.4.)

#### 6.1.4 Decimal Points

A decimal point (that is, a period) should be used for each money amount regardless of whether
the amount is reported in dollars and cents or in whole dollars, or whether or not the vertical line
that separates the dollars from the cents is present. The decimal points must be vertically aligned
when possible.

Example:

STATE &amp; LOCAL INC. TAXES

000.00

REAL ESTATE TAXES

PERSONAL PROPERTY TAXES

000.00

STATE &amp; LOCAL INC. TAXES

(5)

000.00

REAL ESTATE TAXES

(6)

PERSONAL PROPERTY TAXES

(7)

000.00

When submitting a multi-page form, send all its pages in the same package.

#### 6.1.5 Multi-Page Forms

Exception. If you will not be producing certain pages, please note that in your cover letter.

## Section 6.2 - Additional Instructions for All Forms

### 6.2.1 Use of Your Own Internal Control Numbers and Iden- tifying Symbols

You may show the computer-prepared internal control numbers and identifying symbols on the
substitute if using such numbers or symbols is acceptable to the taxpayer and the taxpayer's
representative. Such information must not be printed in the top 1/2-inch clear area of any form or
schedule requiring a signature. Except for the actual tax return form (Forms 1040, 11ID Number
on 20, 940, 941, etc.), you may print in the left vertical and bottom left margins. The bottom left
margin you may use extends 31/2 inches from the left edge of the form. You may print internal
control numbers in place of the removed IRS catalog number.

6.2.2
Required Software ID
Number (Source Code) on
Computer- Prepared
Substitutes

In the February 2009 Government Accountability Office (GAO) report, "Many Taxpayers Rely
on Tax Software and IRS Needs to Assess Associated Risks" (GAO-09-297), GAO recom-
mended that IRS require a software identification number on all individual returns to specifically
identify the software package used to prepare each tax return. IRS already has this capability for
all e-filed returns. In addition, many tax preparation software firms already print an IRS-issued
3-letter Source Code on paper returns that are generated by their individual tax software. This
Source Code was assigned when the firms were seeking substitute forms approval under this
current publication.

In order to respond properly to this GAO recommendation, the IRS will require all tax preparation
software firms to include the 3-letter Source Code on all paper tax returns created by their
individual tax preparation software. The many firms that currently have and display their Source
Code on paper returns generated from their software should continue to do so, and no change is
necessary.

We have reviewed all software companies that passed PATS testing last filing season and have
determined that some firms do not currently have a Source Code. To save you the burden of
contacting us and for your convenience, we have assigned Source Codes to those firms.

You should program your Source Code to be placed in the bottom left-hand corner of page one
of each paper form that will be generated by your individual tax return package. You do not need
to apply for a new Source Code annually.

If you already use a 3-letter Source Code and we have issued you one in error, you are unsure if
you were ever issued one, or have other questions or concerns, you may contact Tax Forms and
Publications Special Services Section at substituteforms@irs.gov.

### 6.2.3 Descriptions for Captions, Lines, etc.

Descriptions for captions, lines, etc., appearing on the substitute forms may be limited to one print
line by using abbreviations and contractions, and by omitting articles, prepositions, etc. However,
sufficient key words must be retained to permit ready identification of the caption, line, or item.

### 6.2.4 Determining Final Totals

Explanatory detail and/or intermediate calculations for determining final line totals may be
included on the substitute. We prefer that such calculations be submitted in the form of a
supporting statement. If intermediate calculations are included on the substitute, the line on which
they appear may not be numbered or lettered. Intermediate calculations may not be printed in the
right column. This column is reserved only for official numbered and lettered lines that corre-
spond to the ones on the official form. Generally, you may choose the format for intermediate
calculations or subtotals on supporting statements to be submitted.

### 6.2.5 Instructional Text on the Official Form

Text on the official form, which is solely instructional (for example, "See instructions." etc.), may
generally be omitted from the substitute form.

6.2.6
Mixing Forms on the Same
Page Prohibited

You may not show more than one form or schedule on the same printout page. Both sides of the
paper may be printed for multi-page official forms, but it is unacceptable to intermix single page
schedules of forms.

For instance, Schedule E can be printed on both sides of the paper because the official form is
multi-page, with page 2 continued on the back. However, do not print Schedule E on the front
page and Schedule SE on the back, or Schedule A on the front and Form 8615 on the back, etc.
Both pages of a substitute form must match the official form. The back page may be left blank
if the back page of the official form contains only the instructions.

### 6.2.7 Identifying Substitutes

Identify all computer-prepared substitutes clearly. Print the form designation 1/2 inch from the top
margin and 11/2 inches from the left margin. Print the title centered on the first line of print. Print
the taxable year and, where applicable, the sequence number on the same line 1/2 inch to 1 inch
from the right margin. Include the taxpayer's name and SSN on all forms and attachments. Also,
print the OMB number as reflected on the official form.

#### 6.2.8 Negative Amounts

Negative (or loss) amount entries should be enclosed in brackets or parentheses or include a
minus sign. This assists in accurate computation and input of form data. The IRS pre-prints
parentheses in negative data fields on many official forms. These parentheses should be retained
or inserted on printouts of affected substitute forms.

# Part 7 Miscellaneous Forms and Programs

## Section 7.1 - Specifications for Substitute Schedules K-1

### 7.1.1 Requirements for Schedules K-1 That Accompany Forms 1041, 1065, 1065-B, and 1120S

Because of significant changes to improve processing, prior approval is now required for
substitute Schedules K-1 that accompany Form 1041 (for estates and trusts), Form 1065 (for
partnerships), Form 1065-B (for electing large partnerships), or Form 1120S (for S corporations).
Substitute Schedules K-1 should be as close as possible to exact replicas of copies of the official
IRS schedules and follow the same process for submitting other substitute forms and schedules.
Before releasing their substitute forms, software vendors are responsible for making any subse-
quent changes that have been made to the final official IRS forms after the draft forms have been
posted.

Submit substitute Schedule K-1 forms, in PDF format, to scrips@irs.gov for scannability
acceptance. You must include information on the substitute that can be tested. This information
should be dummy information. Use an "X" for alpha character and "0" for numbers. IRS will
review and provide feedback of any changes needed so that your forms can be recognized
correctly.

Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and
1120S. Please allow at least 1/4 inch of white space around the 6-digit code.

. 661113 for Form 1041,

· 651113 for Form 1065, and

· 671113 for Form 1120S.

Schedules K-1 that accompany Forms 1041, 1065, 1065-B, or 1120S must meet all specifications.
The specifications include, but are not limited to, the following requirements.

. You will no longer be able to produce Schedules K-1 that contain only those lines or boxes that
taxpayers are required to use. All lines must be included.

· The words "*See attached statement for additional information." must be preprinted in the lower
right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120S.

· All K-1s that are filed with the IRS should be printed on standard 8.5" x 11" paper (the international
standard (A4) of 8.27" x 11.69" may be substituted).

· Each recipient's information must be on a separate sheet of paper. Therefore, you must separate all
continuously printed substitutes, by recipient, before filing with the IRS.

· No carbon copies or pressure-sensitive copies will be accepted.

· The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity (estate, trust,
partnership, or S corporation) and the recipient (beneficiary, partner, or shareholder).

· The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the
related form number (1041, 1065, 1065-B, or 1120S), and the official schedule name in substan-
tially the same position and format as shown on the official IRS schedule.

· The Schedule K-1 must contain all the line items as shown on the official form, except for the
instructions, if any are printed on the back of the official Schedule K-1.

. The line items or boxes must be in the same order and arrangement as those on the official form.

· The amount of each recipient's share of each item must be shown. A partial percent should be
reflected as a decimal (example: 50 1/2% should be 50.5%). Furnishing a total amount of each item
and a percentage (or decimal equivalent) to be applied to such total amount by the recipient does
not satisfy the law and the specifications of this revenue procedure.

· State or local tax-related information may not be included on the Schedules K-1 filed with the IRS.

· The entity may have to pay a penalty if substitute Schedules K-1 are filed that do not conform to
specifications.

. Additionally, the IRS may consider the Schedules K-1 that do not conform to specifications as not
being able to be processed and may return Forms 1041, 1065, 1065-B, or 1120S to the filer to be
filed correctly.

Schedules K-1 that are 2-D bar-coded will continue to require prior approval from the IRS (see
Sections 7.1.3 through 7.1.5).

7.1.2
Special Requirements for
Recipient Copies of
Schedules K-1

Standardization for reporting information is required for recipient copies of substitute Schedules
K-1 of Forms 1041, 1065, 1065-B, and 1120S. Uniform visual standards are provided to increase
compliance by allowing recipients and practitioners to more easily recognize a substitute Sched-
ule K-1. The entity must furnish to each recipient a copy of Schedule K-1 that meets the following
requirements.

· Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and
1120S. Please allow white space around the 6-digit code.

· 661113 for Form 1041,

· 651113 for Form 1065, and

· 671113 for Form 1120S.

. You will no longer be able to produce Schedules K-1 that contain only those lines or boxes that
taxpayers are required to use. All lines must be included.

· The words "*See attached statement for additional information." must be preprinted in the lower
right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120S.

· The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity and recipient.

· All applicable amounts and information required to be reported must be titled and numbered in the
same manner as shown on the official IRS schedule. The line items or boxes must be in the same
order and arrangement and must be numbered like those on the official IRS schedule.

· The Schedule K-1 must contain all items required for use by the recipient. The instructions to the
schedule must identify the line or box number and code, if any, for each item as shown in the
official IRS schedule.

· The amount of each recipient's share of each item must be shown. A partial percent should be
reflected as a decimal (example 50 1/2% should be 50.5%). Furnishing a total amount of each line
item and a percentage (or decimal equivalent) to be applied to such total amount by the recipient
does not satisfy the law and the specifications of this revenue procedure.

· Instructions to the recipient that are substantially similar to those on or accompanying the official
IRS schedule must be provided to aid in the proper reporting of the items on the recipient's income
tax return. Where items are not reported to a recipient because they do not apply, the related
instructions may be omitted.

· The quality of the ink or other material used to generate recipients' schedules must produce clearly
legible documents. In general, black chemical transfer inks are preferred.

· In order to assure uniformity of substitute Schedules K-1, the paper size should be standard 8.5" x
11" (the international standard (A4) of 8.27" x 11.69" may be substituted.)

· The paper weight, paper color, font type, font size, font color, and page layout must be such that
the average recipient can easily decipher the information on each page. The preferred font is
"Helvetica" and a minimal of 10pt. font.

· State or local tax-related information may be included on recipient copies of substitute Schedules
K-1. All non-tax-related information should be separated from the tax information on the substitute
schedule to avoid confusion for the recipient.

· The legend "Important Tax Return Document Enclosed" must appear in a bold and conspicuous
manner on the outside of the envelope that contains the substitute recipient copy of Schedule K-1.

· The entity may have to pay a penalty if a substitute Schedule K-1 furnished to any recipient does
not conform to the specifications of this revenue procedure and results in impeding processing.

7.1.3
Requirements for
Schedules K-1 with Two-
Dimensional (2- D) Bar
Codes

Electronic filing is now and will continue to be the preferred method of filing;

however, 2-D bar code is the best alternative method for paper processing.

In an effort to improve efficiency and at the same time increase data accuracy, the IRS partnered
with the tax software development community on a two-dimensional bar code project in 2003.
Certain tax software packages have been modified to generate 2-D bar codes on Schedules K-1.
As a result, when K-1s are printed using these programs, a bar code will print on the page.

Rather than manually transcribe information from the Schedule K-1, the IRS will scan the bar
code and electronically upload the information from the K-1. The results will be more efficient
operation within the IRS and fewer transcription errors for your clients.

Note. If software vendors do not want to produce bar-coded Schedules K-1, they may produce
the official IRS Schedules K-1 but cannot use the expedited process for approving bar-coded
K-1s and their parent returns as outlined in Section 7.1.6.

In addition to the requirements in Sections 7.1.1 and 7.1.2, the bar-coded Schedules K-1 must
meet the following specifications.

· The bar code should print in the space labeled "For IRS Use Only" on each Schedule K-1. The
entire bar code must print within the "For IRS Use Only" box surrounded by a white space of at
least 1/4 inch.

· Bar codes must print in PDF 417 format.

· The bar codes must always be in the specified format with every field represented by at least a field
delimiter (carriage return). Leaving out a field in a bar code will cause every subsequent field to be
misread.

. Be sure to include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041,
1065, and 1120S. Please allow white space around the 6-digit code.

· 661113 for Form 1041,

· 651113 for Form 1065, and

· 671113 for Form 1120S.

7.1.4
2-D Bar Code
Specifications for Schedules
K-1

Follow these general specifications for preparing all 2-D bar-coded Schedules K-1:

· Numeric fields -

· Do not include leading zeros (except Taxpayer Identification Numbers, Zip Codes, and percent-
ages).

· If negative value, the minus sign "-" must be present immediately to the left of the number and
part of the 12 position field.

. Do not use non-numeric characters except that the literal "STMT" can be put in money fields.

· All money fields should be rounded to the nearest whole dollar amount - if a money amount
ends in 00 to 49 cents, drop the cents; if it ends in 50 to 99 cents, truncate the cents and increment
the dollar amount by one. Use the same rounding technique for the bar-coded and the printed
K-1s.

· All numeric-only fields are right justified (except Taxpayer Identification Numbers and Zip
Codes).

. All field lengths are expressed as maximum lengths. If the value in the field has fewer positions or
the software program does not support that many positions, put in the bar code only those positions
actually used.

· Alpha fields -

· Do not include leading blanks (left justified).

· Do not include trailing blanks.

· Use uppercase alpha characters only.

· Variable fields -

· Do not include leading blanks (left justified).

· Do not include trailing blanks.

· Use uppercase alpha characters, numerics, and special characters as defined in each field.

· Delimit each field with a carriage return.

· Express percentages as 6-digit numbers without the percent sign. Left justify with leading zero(s)
(for percentages less than 100%) and no decimal point (decimal point is assumed between 3rd and
4th positions). Examples: 25.32% expressed as "025320"; 105% expressed as "105000";
8.275% expressed as "008275"; 10.24674% expressed as "01024 ".

. It is vital that the print routine reinitialize the bar code prior to printing each succeeding K-1. Failure
to do this will result in each K-1 for a parent return having the same bar code as the document
before it.

### 7.1.5 Approval Process for Bar- Coded Schedules K-1

Prior to releasing commercially available tax software that creates bar-coded Schedules K-1, the
printed schedule and the bar code must both be tested. If your company is creating bar-coded
Schedules K-1, you must receive certification for both the printed K-1, as well as the bar code
before offering your product for sale. Bar-code testing must be done using the final official IRS
Schedule K-1. Bar-code approval requests must be resubmitted for any subsequent changes to the
official IRS form that would affect the bar code. Below are instructions and a sequence of events
that will comprise the testing process.

· The IRS has released the final Schedule K-1 bar-code specifications by publishing them on the
IRS.gov website (see www.irs.gov/uac/Schedule- K-1,-Two-Dimensional-Bar-Code-Specifications-
and-Certification- Process).

· The IRS will publish a set of test documents that will be used to test the ability of tax preparation
software to create bar codes in the correct format.

· Software developers will submit two identical copies of the test documents - one to the IRS and
one to a contracted testing vendor. The IRS will use one set to ensure the printed schedules comply
with standard substitute forms specifications.

. If the printed forms fail to meet the substitute form criteria, the IRS will inform the software
developer of the reason for noncompliance.

· The software developer must resubmit the Schedule(s) K-1 until they pass the substitute forms
criteria.

· The testing vendor will review the bar codes to ensure they meet the published bar-code specifi-
cations.

. If the bar code(s) does not meet published specifications, the testing vendor will contact the
software developer directly informing them of the reason for noncompliance.

· Software developers must submit new bar-coded schedules until they pass the bar-code test.

· When the bar code passes, the testing vendor will inform the IRS that the developer has passed the
bar-code test and the IRS will issue an overall approval for both the substitute form and the bar
code.

. After receiving this consolidated response, the software vendor is free to release software for tax
preparation as long as any subsequent revisions to the schedules do not change the fields.

. Find the mailing address for the testing vendor below. Separate and simultaneous mailings to the
IRS and the vendor will reduce testing time.

7.1.6
Procedures for Reducing
Testing Time

In order to help provide incentives to the software development community to participate in the
Schedule K-1 2-D project, the IRS has committed to expediting the testing of bar-coded
Schedules K-1 and their associated parent returns. To receive this expedited service, follow the
instructions below.

· Mail the parent returns (Forms 1065, 1120S, 1041) and associated bar-coded Schedule(s) K-1 to the
appropriate address below in a separate package from all other approval requests.
Internal Revenue Service
Attn: Bar-Coded K-1
SE:W:CAR:MP:T:M:S, IR 6526
1111 Constitution Avenue,
NW Washington, DC 20224

. Mail one copy of the parent form(s) and Schedule(s) K-1 to the IRS and another copy to the testing
vendor at the address below.

Northrop Grumman Information Systems
Attn: Twanna Wiley
7555 Colshire Drive
McLean, VA 22102
Phone: 703-483-5678

· Include multiple email and phone contact points in the packages.

· While the IRS can expedite bar-coded Schedules K-1 and their associated parent returns, it
cannot expedite the approval of non-associated tax returns.

· Vendors should comply with all NACTP guidelines especially in regards to mil size and
error-correction level.

· Submissions should include vendor ID code printed and in the bar code.

· If a change is made to the bar code after approval, be sure to increment the version number.

## Section 7.2 - Guidelines for Substitute Forms 8655

### 7.2.1 Increased Standardization for Forms 8655

### 7.2.2 Requirements for Substitute Forms 8655

Increased standardization for reporting information on substitute Forms 8655 is now required to
aid in processing and for compliance purposes. Please follow the guidelines in Section 7.2.2.

Please follow these specific requirements when producing substitute Forms 8655.

· The first line of the title must be "Reporting Agent Authorization."

. If you want to include a reference to "State Limited Power of Attorney," it can be in parentheses
under the title. "State" must be the first word within the parentheses.

. You must include "Form 8655" on the form.

· While the line numbers do not have to match the official form, the sequence of the information must
be in the same order.

· The size of any variable data must be printed in a font no smaller than 10-point.

· For adequate disclosure checks, the following must be included for each taxpayer:

· Name,

· EIN, and

· Address.

. At this time, Form 944 will not be required if Form 941 is checked. Only those forms that the
reporting agent company supports need to be listed.

· The jurat (perjury statement) must be identical with the exception of references to line numbers.
A contact name and number for the reporting agent is not required.

. You must include line 17, or the equivalent line, and it must include two checkboxes.

. Any state information included should be contained in a separate section of the substitute form.

. Preferably this information will be in the same area as line 19 of the official form.

. All substitute Forms 8655 must be approved by the Substitute Forms Unit as outlined in the
Form 8655 specifications in this current publication.

· If you have not already been assigned a 3-letter Source Code, you will be given one when your
substitute form is submitted for approval. This Source Code should be included in the lower left
corner of the form.

· The 20-day assumed approval policy does not apply to Form 8655 approvals.

# Part 8 Additional Information

## Section 8.1 - Forms for Electronically Filed Returns

8.1.1 Electronic Filing Program

Electronic filing is a method by which authorized providers transmit tax return information to an IRS Service Center in the format of the official IRS forms. The IRS accepts both refund and balance due forms that are filed electronically.

8.1.2 Applying to Participate in IRS e-file

Anyone wishing to participate in IRS e-file of tax returns must submit an e-file application. The application can be completed and submitted electronically on the IRS website at IRS.gov after first registering for e-services on the website.

8.1.3 Obtaining the Taxpayer Signature/ Submission of Required Paper Documents

Taxpayers choosing to electronically prepare and file their return will be required to use the Self-Select PIN method as their signature. Electronic Return Originators (EROs) can e-file individual income tax returns only if the returns are signed electronically using either the Self-Select or Practitioner PIN method.

Taxpayers must use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, to send supporting documents that are required to be submitted to the IRS.

For specific information about electronic filing, refer to Pub. 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.

8.1.4 Guidelines for Preparing Substitute Forms in the Electronic Filing Program

A participant in the electronic filing program who wants to develop a substitute form should follow the guidelines throughout this publication and send a sample form for approval to the Substitute Forms Unit at the address in Part 1. If you do not prepare Substitute Form 8453 using a font in which all IRS wording fits on a single page, the form will not be accepted. Note. Use of unapproved forms could result in suspension of the participant from the electronic filing program.

## Section 8.2 - Effect on Other Documents

8.2.1

This revenue procedure supersedes Revenue Procedure 2015-18, 2015-8, I.R.B. 620.

Effect on Other Documents

Section 8.3 - Exhibits

Exhibit A - Form 1040 Schedule A 2015 (Preferred format)

Exhibit B - Form 1040 Schedule A 2015 (Acceptable format)

Exhibit C - Form 2106-EZ 2015 (Preferred format)

Exhibit D - Form 2106-EZ 2015 (Acceptable format)

Exhibit E - Form 1041-ES Voucher 2016

Exhibit F - Substitute Form Check Sheet

# Schedule A (Preferred Format)

## Exhibit A

### SCHEDULE A

OMB No. 1545-0074

For Paperwork Reduction Act Notice, see Form 1040 instructions.

Cat. No. 17145C

Schedule A (Form 1040) 2016

(Form 1040)

Itemized Deductions

2016 Attachment

Department of the

Treasury

Information about Schedule A and its separate instructions is at Attach to Form 1040.

www.irs.gov/schedulea.

Internal Revenue

Service

(99)

Sequence No. 07

Name(s) shown on Form 1040

Your social security number

Caution: Do not include expenses reimbursed or paid by others.

Medical

Medical and dental expenses (see instructions)

and

Enter amount from Form 1040, line 38 2

Dental

Multiply line 2 by 10% (0.10). But if either you or your spouse was

Expenses

born

before January 2, 1952, multiply line 2 by 7.5% (0.075) instead

Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-

Taxes You

State and local (check only one box):

Paid

☐ Income taxes, or

☐ General sales taxes

Real estate taxes (see instructions)

Personal property taxes

Other taxes. List type and amount

Add

lines 5 through 8

Interest

Home mortgage interest and points reported to you on Form 1098

You Paid

Home mortgage interest not reported to you on Form 1098. If paid

the person from whom you bought the home, see instructions

Note:

and

show that person's name, identifying no., and address @

Your mortgage interest

deduction may

be limited (see instructions).

Points not reported to you on Form 1098. See instructions for special rules

Mortgage insurance premiums (see instructions)

Investment interest. Attach Form 4952 if required. (See instructions.)

Add

lines 10 through 14

Gifts to

Gifts by cash or check. If you made any gift of $250 or more,

Charity

see

instructions

If you made a

Other than by cash or check. If any gift of $250 or more, see

gift and got a

instructions. You must attach Form 8283 if over $500

beneft for it,

Carryover from prior year

see instructions.

Add

lines 16 through 18

Casualty and

Theft Losses

Casualty or theft loss(es). Attach Form 4684. (See instructions.)

Job Expenses

Unreimbursed employee expenses-job travel, union dues,

and Certain

job

education, etc. Attach Form 2106 or 2106-EZ if required.

Miscellaneous

(See

instructions.)

Deductions

Tax

preparation fees

Other expenses-investment, safe deposit box, etc. List type

and amount

Add

lines 21 through 23

Enter amount from Form 1040, line 38 25

Multiply line 25 by 2% (0.02)

Subtract line 26 from line 24. If line 26 is more than line 24, enter

-0-

Other

Other-from list in instructions. List type and amount

Miscellaneous Deductions

Total

Is Form 1040, line 38, over $155,650?

Itemized

☐

No. Your deduction is not limited. Add the amounts in the far right

column

Deductions

for lines 4 through 28. Also, enter this amount on Form 1040,

line

40.

☐ Yes. Your deduction may be limited. See the Itemized Deductions

Worksheet in the instructions to fgure the amount to enter.

you elect to itemize deductions even though they are less

than your

standard

deduction, check here

☐

# Schedule A (Acceptable Format)

## Exhibit B

Acceptable format
Form 1040 Schedule A

SCHEDULE

Itemized Deductions

OMB No. 1545-0074

(Form 1040)

Information about Schedule A and its separate instructions is at www.irs.gov/schedulea. Attach to Form 1040.

2015

Department of the

Treasury

Attachment

Internal Revenue

Service

(99)

Sequence No. 07

Name(s) shown on

Form

1040

Your

social security number

Caution. Do not include expenses reimbursed or paid by others.

Medical

Medical and dental expenses (see instructions)

and

Enter amount from Form 1040, line 38 2

Dental

Multiply line 2 by 10% (.10). But if either you or your spouse was

Expenses

born before January 2, 1951, multiply line 2 by 7.5% (.075) instead

Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-

Taxes You

State and local

Paid

☐ Income taxes

b ☐ Reserved

Real estate taxes (see instructions)

Personal property taxes

Other taxes. List type and amount

Add lines 5 through 8

Interest

Home mortgage interest and points reported to you on Form 1098

You Paid

Home mortgage interest not reported to you on Form 1098. If paid the person from whom you bought the home, see instructions

Note.

and

show that person's name, identifying no., and address @

Your mortgage interest

deduction may

be limited (see instructions).

Points not reported to you on Form 1098. See instructions for special rules

Reserved

Investment interest. Attach Form 4952 if required. (See instructions.)

Add

lines 10 through 14

Gifts to Charity

see

Gifts by cash or check. If you made any gift of $250 or more, instructions

If you made a

Other than by cash or check. If any gift of $250 or more, see

gift and got a

instructions. You must attach Form 8283 if over $500

beneft for it,

Carryover from prior year

see instructions.

Add lines 16 through 18

Casualty and

Theft Losses

Casualty or theft loss(es). Attach Form 4684. (See instructions.)

Job Expenses and Certain

job

Unreimbursed employee expenses-job travel, union dues, education, etc. Attach Form 2106 or 2106-EZ if required.

Miscellaneous

(See instructions.)

Deductions

Tax

preparation fees

Other expenses-investment, safe deposit box, etc. List type

and

amount

Add lines 21 through 23

Enter amount from Form 1040, line 38 25

Multiply line 25 by 2% (.02)

Subtract line 26 from line 24. If line 26 is more than line 24, enter

-0-

Other

Other-from list in instructions. List type and amount

Miscellaneous Deductions

Total

Is Form 1040, line 38, over $154,950?

Itemized

☐ No. Your deduction is not limited. Add the amounts in the far

right

column

Deductions

for lines 4 through 28. Also, enter this amount on Form 1040,

line

40.

☐ Yes. Your deduction may be limited. See the Itemized Deductions

Worksheet in the instructions to fgure the amount to enter.

If you elect to itemize deductions even though they are less

than

your standard

deduction, check here

☐

For Paperwork

Reduction

Act Notice, see Form 1040 instructions. Cat.

No.

17145C

Schedule A (Form 1040) 2015

# Form 2106-EZ (Preferred Format)

# Exhibit C

Form
2106-EZ

Department of the Treasury
Internal Revenue Service
(99)

Unreimbursed Employee Business Expenses
Attach to Form 1040 or Form 1040NR.
Information about Form 2106 and its separate instructions is available at www.irs.gov/form2106.

OMB No. 1545-0074

2015
Attachment
Sequence No.
129A

Your name

Occupation in which you incurred expenses

Social security number

You Can Use This Form Only if All of the Following Apply.

· You are an employee deducting ordinary and necessary expenses attributable to your job. An ordinary expense is one that is
common and accepted in your feld of trade, business, or profession. A necessary expense is one that is helpful and appropriate for
your business. An expense does not have to be required to be considered necessary.

· You do not get reimbursed by your employer for any expenses (amounts your employer included in box 1 of your Form W-2 are not
considered reimbursements for this purpose).

. If you are claiming vehicle expense, you are using the standard mileage rate for 2015.

Caution: You can use the standard mileage rate for 2015 only if: (a) you owned the vehicle and used the standard mileage rate for the first year
you placed the vehicle in service, or (b) you leased the vehicle and used the standard mileage rate for the portion of the lease period after 1997.

## Part I Figure Your Expenses

1 Complete Part II. Multiply line 8a by 57.5¢ (.575). Enter the result here

2 Parking fees, tolls, and transportation, including train, bus, etc., that did not involve overnight travel or commuting to and from work

3 Travel expense while away from home overnight, including lodging, airplane, car rental, etc. Do not include meals and entertainment

4 Business expenses not included on lines 1 through 3. Do not include meals and entertainment

5 Meals and entertainment expenses: $ × 50% (.50). (Employees subject to Department of Transportation (DOT) hours of service limits: Multiply meal expenses incurred while away from home on business by 80% (.80) instead of 50%. For details, see instructions.)

6 Total expenses. Add lines 1 through 5. Enter here and on Schedule A (Form 1040), line 21 (or on Schedule A (Form 1040NR), line 7). (Armed Forces reservists, fee-basis state or local government offcials, qualifed performing artists, and individuals with disabilities: See the instructions for special rules on where to enter this amount.)

## Part II Information on Your Vehicle. Complete this part only if you are claiming vehicle expense on line 1.

7 When did you place your vehicle in service for business use? (month, day, year)
1

8 Of the total number of miles you drove your vehicle during 2015, enter the number of miles you used your vehicle for:

a Business
b Commuting (see instructions)
c Other

9 Was your vehicle available for personal use during off-duty hours?
☐
Yes
☐
No

10 Do you (or your spouse) have another vehicle available for personal use?
☐
Yes
☐
No

11a Do you have evidence to support your deduction?
☐
Yes
☐
No

b If "Yes," is the evidence written?
☐
Yes
☐
No

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 20604Q
Form 2106-EZ

(2015)

# Form 2106-EZ (Acceptable Format)

## Exhibit D

Acceptable format Form 2106-EZ

Part I Figure Your Expenses

Complete Part II. Multiply line 8a by 57.5¢ (.575). Enter the result here

Parking fees, tolls, and transportation, including train, bus, etc., that did not involve overnight travel or commuting to and from work

Travel expense while away from home overnight, including lodging, airplane, car rental, etc. Do not include meals and entertainment .

Business expenses not included on lines 1 through 3. Do not include meals and entertainment

Meals and entertainment expenses: $ × 50% (.50). (Employees subject to Department of Transportation (DOT) hours of service limits: Multiply meal expenses incurred while away from home on business by 80% (.80) instead of 50%. For details, see instructions.)

Total expenses. Add lines 1 through 5. Enter here and on Schedule A (Form 1040), line 21 (or on Schedule A (Form 1040NR), line 7). (Armed Forces reservists, fee-basis state or local government offcials, qualifed performing artists, and individuals with disabilities: See the instructions for special rules on where to enter this amount.)

Form
2106-EZ

Unreimbursed Employee Business Expenses
Attach to Form 1040 or Form 1040NR.

OMB No. 1545-0074

2015
Attachment
Sequence No.
129A

Department of the Treasury
Internal Revenue Service (99)

Information about Form 2106 and its separate instructions is available at www.irs.gov/form2106.

Your name

Occupation in which you incurred expenses

Social security number

You Can Use This Form Only if All of the Following Apply.

· You do not get reimbursed by your employer for any expenses (amounts your employer included in box 1 of your Form W-2 are not
considered reimbursements for this purpose).

. If you are claiming vehicle expense, you are using the standard mileage rate for 2015.

## Part II Information on Your Vehicle. Complete this part only if you are claiming vehicle expense on line 1.

7 When did you place your vehicle in service for business use? (month, day, year)
1
/

8 Of the total number of miles you drove your vehicle during 2015, enter the number of miles you used your vehicle for:

a Business

b Commuting (see instructions)
c Other

9 Was your vehicle available for personal use during off-duty hours?
☐
Yes
☐
No

10 Do you (or your spouse) have another vehicle available for personal use?
☐
Yes
☐
No

11a Do you have evidence to support your deduction?
☐
Yes
☐
No

b If "Yes," is the evidence written?
☐
Yes
☐
No

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 20604Q

Form 2106-EZ (2015)

# Software Developers Voucher

Exhibit E

Form 1040-ES (OCR)
Department of the Treasury
Internal Revenue Service

2016
OMB No. 1545-0074

Estimated Tax

Payment
Voucher

Calendar year-
Due April 18, 2016

Make your check or money order payable to "United States Treasury."
\+ Enter your SSN and "2016 Form 1040-ES" on your payment.
If your name, address, or SSN is incorrect, see instructions.

Amount of estimated tax you are
Dollars
paying by check or money order.
0,000

Cents

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

John Q. Doe
000 Someplace Somewhere Blvd.
City, ST 00000

PO Box 00000
City, ST 00000 - 0000

000000000 XX DOE 00 0 201612 000

# IRS Check Sheet Exhibit F

## Substitute Forms Check Sheet

Check Sheet of IRS Substitute Forms
20 :
Submitted on

Company:

Contact:

Phone:
Fax:

Source Code:

Authorized Name:

Title:

Reviewer's Name:

Telephone:

Date:

Form Number

Approved

Approved With Corrections

Comments

Note. This revenue procedure will be reproduced as the next revision of IRS Publication 1179, General Rules and Specifications for
Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns.

26 CFR 601.602:

Forms and instructions. (Also Part 1, Sections 170, 220, 401(a), 403(a), 403(b), 408, 408A, 457(b), 529, 529A, 530, 853A, 1441, 6041A, 6042, 6043, 6044, 60645,
6047, 6049, 6050A, 6050B, 6050D, 6050E, 6050H, 6050J, 6050N, 6050P, 6050Q, 6050R, 6050S, 6050W, 1.401(a)(9), 1.408-5, 1.408-7, 1.408A-7, 1.529A-7,
1.1441-1 through 1.1441-5, 1.6041-1, 7.6041-1, 1.6042-2, 1.6042-4, 1.6044-2, 1.6044-5, 1.6045-1, 1.6045-2, 1.6045-4, 1.6047-1, 1.6047-2, 1.6049-4,
1.6049-6, 1.6049-7, 1.6050A-1, 1.6050B-1, 1.6050D-1, 1.6050E-1, 1.6050H-1, 1.6050H-2, 1.6050J-1T, 1.60850N-1, 1.6050P-1, 1.6050W-1, 1.6050W-2)

### Rev. Proc. 2016-35

#### TABLE OF CONTENTS

##### Part 1 - GENERAL INFORMATION 1109

Section 1.1 - Overview of Revenue Procedure 2016-35/What's New
1109

Section 1.2 - Definitions
1078

Section 1.3 - General Requirements for Acceptable Substitute Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922,
5498, W-2G, and 1042-S
1113

Part 2 - SPECIFICATIONS FOR SUBSTITUTE FORMS 1096 AND COPIES A OF FORMS 1097-BTC, 1098, 1099,
3921, 3922, AND 5498 (ALL FILED WITH THE IRS)
1116

Section 2.1 - Specifications
1116

Section 2.2 - Instructions for Preparing Paper Forms That Will Be Filed With the IRS
1119

##### Part 3 - SPECIFICATIONS FOR SUBSTITUTE FORM W-2G (FILED WITH THE IRS)

Section 3.1 - General
1121

Section 3.2 - Specifications for Copy A of Form W-2G.
1121

##### Part 4 - SUBSTITUTE STATEMENTS TO FORM RECIPIENTS AND FORM RECIPIENT COPIES

1122

Section 4.1 - Specifications

1122

Section 4.2 - Composite Statements
1125

Section 4.3 - Additional Information for Substitute and Composite Forms 1099-B

1127

Section 4.4 - Required Legends

1127

Section 4.5 - Miscellaneous Instructions for Copies B, C, D, E, 1, and 2
1128

Section 4.6 - Electronic Delivery of Recipient Statements
1130

Part 5 - ADDITIONAL INSTRUCTIONS FOR SUBSTITUTE FORMS 1098, 1097-BTC, 1099, 5498, W-2G, AND 1042-S
1131

Section 5.1 - Paper Substitutes for Form 1042-S
1131

Section 5.2 - OMB Requirements for All Forms in This Revenue Procedure.
1133

Section 5.3 - Ordering Forms and Instructions
1133

Section 5.4 - Effect on Other Revenue Procedures
1134

##### Part 6 - EXHIBITS 1134

Section 6.1 - Exhibits of Forms in the Revenue Procedure

1134

#### Part 1 General Information

##### Section 1.1 - Overview of Revenue Procedure 2016-35/What's New

###### 1.1.1 Purpose

The purpose of this revenue procedure to set forth the 2016 requirements for:

· Using official Internal Revenue Service (IRS) forms to file information returns with the IRS,

· Preparing acceptable substitutes of the official IRS forms to file information returns with the IRS,
and

· Using official or acceptable substitute forms to furnish information to recipients.

1.1.2
Which Forms Are
Covered?

This revenue procedure contains specifications for these information returns:

Form

Title

1096

Annual Summary and Transmittal of U.S. Information Returns

1097-BTC

Bond Tax Credit

1098

Mortgage Interest Statement

1098-C

Contributions of Motor Vehicles, Boats, and Airplanes

1098-E

Student Loan Interest Statement

1098-MA

Mortgage Assistance Payments

1098-Q

Qualifying Longevity Annuity Contract Information

1098-T

Tuition Statement

1099-A

Acquisition or Abandonment of Secured Property

1099-B

Proceeds From Broker and Barter Exchange Transactions

1099-C

Cancellation of Debt

1099-CAP

Changes in Corporate Control and Capital Structure

1099-DIV

Dividends and Distributions

1099-G

Certain Government Payments

1099-INT

Interest Income

1099-K

Payment Card and Third Party Network Transactions

1099-LTC

Long-Term Care and Accelerated Death Benefits

1099-MISC

Miscellaneous Income

1099-OID

Original Issue Discount

1099-PATR

Taxable Distributions Received From Cooperatives

1099-Q

Payments From Qualified Education Programs (Under Sections 529 and 530)

1099-QA

Distributions from ABLE Accounts

1099-R

Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

1099-S

Proceeds From Real Estate Transactions

1099-SA

Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

3921

Exercise of an Incentive Stock Option Under Section 422(b)

3922

Transfer of Stock Acquired Through An Employee Stock Purchase Plan Under Section 423(c)

5498

IRA Contribution Information

5498-ESA

Coverdell ESA Contribution Information

5498-QA

ABLE Account Contribution Information

5498-SA

HSA, Archer MSA, or Medicare Advantage MSA Information

W-2G

Certain Gambling Winnings

1042-S

Foreign Person's U.S. Source Income Subject to Withholding

1.1.3
Scope

For purposes of this revenue procedure, a substitute form or statement is one that is not published
by the IRS. For a substitute form or statement to be acceptable to the IRS, it must conform to the
official form or the specifications outlined in this revenue procedure. Do not submit any substitute
forms or statements listed above to the IRS for approval. Privately published forms may not state,
"This is an IRS approved form."

Filers making payments to certain recipients during a calendar year are required by the Internal
Revenue Code (the Code) to file information returns with the IRS for these payments. These filers
must also provide this information to their recipients. In some cases, this also applies to payments
received. See Part 4 for specifications that apply to recipient statements (generally Copy B).

In general, section 6011 of the Code contains requirements for filers of information returns. A filer
must file information returns electronically or on paper. A filer who is required to file 250 or more
information returns of any one type during a calendar year must file those returns electronically.

Caution: Financial institutions that are required to report payments made under chapters 3 or 4
must file Forms 1042-S electronically, regardless of the number of forms to file.

Note. If you file electronically, do not file the same returns on paper.

Although not required, small volume filers (fewer than 250 returns during a calendar year) may
file the forms electronically. See the requirements for filing information returns (and providing a
copy to a payee) in the 2016 General Instructions for Certain Information Returns and the 2016
Instructions for Form 1042-S. In addition, see the current revision of Publication 1220, Speci-
fications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, for
electronic filing through the IRS FIRE system.

##### 1.1.4 For More Information

The IRS prints and provides the forms on which various payments must be reported. See Section
5.3, later, for ordering forms and instructions. Alternatively, filers may prepare substitute copies
of these IRS forms and use such forms to report payments to the IRS.

· The Internal Revenue Service/Information Returns Branch (IRS/IRB) maintains a centralized
customer service call site to answer questions related to information returns (Forms W-2, W-3,
W-2c, W-3c, 1099 series, 1096, etc.). You can reach the call site at 1-866-455-7438 (toll-free) or
outside the U. S. 304-263-8700 (not a toll-free number). Persons with a hearing or speech disability
with access to TTY/TDD equipment can call 304-579-4827 (not a toll-free number). You may also
send questions to the call site via the Internet at mccirp@irs.gov. Note. IRS/IRB does not process
information returns which are filed on paper forms. See Publication 1220 for information on
waivers and extensions of time.

· For other tax information related to business returns or accounts, call 1-800-829-4933. Persons with
hearing or speech disabilities with access to TTY/TDD equipment can call 1-800-829-4059 to ask
tax account questions or to order forms and publications.

Note. Further information impacting Publication 1179, such as issues arising after its final release,
will be posted on IRS.gov at www.irs.gov/pub1179.

### 1.1.5 What's New

The following changes have been made to this year's revenue procedure.

Online fillable forms. Due to the very low volume of paper Forms 1099-CAP, 1099-LTC,
1099-SA, 3922, 5498-ESA, and 5498-SA received and processed by the IRS each year, these
forms have been converted to online fillable formats. We are removing these forms (Copy A)
from the Exhibits in Part 6. We have added a new section in Part 2 titled Online fillable forms
specifically regarding these and the 2 other new online fillable forms, Forms 1099-QA and
5498-QA. The instructions for substitute Form 1042-S, also an online fillable form, are found in
Part 5.

New Forms 1099-QA and 5498-QA. Public Law 113-295, Division B, the Stephen Beck, Jr.,
Achieving a Better Life Experience (ABLE) Act of 2014, allows individuals and families to save
for the purpose of supporting individuals with disabilities to maintain health, independence, and
quality of life by establishing an ABLE savings account. Form 1099-QA, Distributions from
ABLE Accounts, and Form 5498-QA, ABLE Account Contribution Information, and their
separate instructions will provide the necessary information for reporting distributions from and
contributions to ABLE accounts.

Form 1098. Form 1098 has increased in size from 3-to-a-page to 2-to-a-page due to increased
reporting requirements.

Form 1099-B. A new checkbox was added to this form to identify an FFI or U.S. payer filng this
form to satisfy its chapter 4 reporting requirement. An additional checkbox was added to box 2
for situations in which some of a taxpayer's gain or loss may be ordinary rather than capital.
Reporting requirements for wash sales, accrued market discount, and collectibles have been
changed.

Forms 1099-INT and 1099-OID. New boxes were added to these forms for reporting bond
premium.

Form 1099-MISC. This form must be filed on or before January 31, 2017, when reporting
nonemployee compensation payments in box 7. Otherwise, file by February 28, 2017, if filing on
paper, or by March 31, 2017, if filing electronically.

Form 1099-R. A new checkbox was added to this form to identify an FFI or U.S. payer filing
this form to satisfy its chapter 4 reporting requirement.

Form 1042-S, Withholding agent's status codes and payer status code. Beginning in 2016,
withholding agents must enter both a chapter 3 and chapter 4 status code regardless of the type
of payment being made. A payer must include its chapter 3 and chapter 4 status codes in boxes
16d and 16e.

Electronic filing requirement for financial institutions. Beginning January 1, 2014, financial
institutions that are required to report payments made under chapter 3 or 4 must electronically file
Forms 1042-S (regardless of the number of forms to file).

See the 2016 Instructions for Form 1042-S for more information.

Exhibits. All of the exhibits in this publication were updated to include all of the 2016 revisions
of those forms that have been revised. All of the exhibits in this publication were updated to
include all of the 2016 revisions of those forms that have been revised.

Editorial changes. We made editorial changes throughout, including updated references. Re-
dundancies were eliminated as much as possible.

### Section 1.2 - Definitions

#### 1.2.1 Form Recipient

Form recipient means the person to whom you are required by law to furnish a copy of the official
form or information statement. The form recipient may be referred to by different names on
various Forms 1099 and related forms ("beneficiary," "borrower," "debtor," "donor," "em-
ployee," "homeowner," "insured," "participant," "payee," "payer/borrower," "policyholder,"
"shareholder," "student," "transferor," or, in the case of Form W-2G, the "winner"). See Section
1.3.4.

1.2.2
Filer

Filer means the person or organization required by law to file with the IRS a form listed in Section
1.1.2 with the IRS. A filer may be a payer, creditor, payment settlement entity, recipient of
mortgage or student loan interest payments, educational institution, broker, barter exchange,
person reporting real estate transactions; a trustee or issuer of any educational or ABLE Act
savings account, individual retirement arrangement, or medical savings account; a lender who
acquires an interest in secured property or who has reason to know that the property has been
abandoned; a corporation reporting a change in control and capital structure or transfer of stock
to an employee; or certain donees of motor vehicles, boats, and airplanes.

#### 1.2.3 Substitute Form

Substitute form means a paper substitute of Copy A of an official form listed in Section 1.1.2 that
completely conforms to the provisions in this revenue procedure.

## 1.2.4 Substitute Form Recipient Statement (recipient statement)

## 1.2.5 Composite Substitute Statement

Substitute form recipient statement means a paper or electronic statement of the information
reported on a form listed in Section 1.1.2. From hereon, we will refer to this as a recipient
statement. This statement must be furnished to a person (form recipient), as defined under the
applicable provisions of the Code and the applicable regulations.

Composite substitute statement means one in which two or more required statements (for
example, Forms 1099-INT and 1099-DIV) are furnished to the recipient on one document.
However, each statement must be designated separately and must contain all the requisite Form
1099 information except as provided under Section 4.2. A composite statement may not be filed
with the IRS.

### Section 1.3 - General Requirements for Acceptable Substitute Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S

#### 1.3.1 Introduction

Paper substitutes for Form 1096 and Copy A of Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498,
W-2G, and 1042-S that completely conform to the specifications listed in this revenue procedure
may be privately printed and filed as returns with the IRS. The reference to the Department of the
Treasury- Internal Revenue Service should be included on all such forms.

If you are uncertain of any specification and want it clarified, you may submit a letter citing the
specification, stating your understanding and interpretation of the specification, and enclosing an
example of the form (if appropriate) to:

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

Note. Allow at least 30 days for the IRS to respond.

You may also contact the Substitute Forms Program via e-mail at substituteforms@irs.gov. Please
enter "Substitute Forms" on the Subject Line.

Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S are subject to annual
review and possible change. Therefore, filers are cautioned against overstocking supplies of
privately printed substitutes.

#### 1.3.2 Logos, Slogans, and Advertisements

Some Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S that include logos,
slogans, and advertisements may not be recognized as important tax documents. A payee may not
recognize the importance of the payee copy for tax reporting purposes due to the use of logos,
slogans, and advertisements. Thus, the IRS has determined that logos, slogans, and advertising
will not be allowed on the payee copies of the above forms, on Copy A filed with the IRS, or on
Form 1096, with the following exceptions:

· The exact name of the payer, broker, or agent, primary trade name, trademark, service mark, or
symbol of the payer, broker, or agent, an embossment or watermark on the information return and
payee copies that is a representation of the name, a primary trade name, trademark, service mark,
or symbol of the payer, broker, or agent,

· Presented in any typeface, font, stylized fashion, or print color normally used by the payer, broker,
or agent, and used in a non-intrusive manner, and

. As long as these items do not materially interfere with the ability of the recipient to recognize,
understand, and use the tax information on the payee copies.

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

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

Logos and slogans, may be used on permissible enclosures, such as a check or account statement,
other than information returns and payee copies.

As indicated in Sections 1.3.1 and 5.1.2, of this revenue procedure, Forms 1096, 1097-BTC,
1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S are subject to annual review and possible
change. If you have comments about the restrictions on including logos, slogans, and advertising
on information returns and payee copies, send or email your comments to:

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

or substituteforms@irs.gov.

## 1.3.3 Copy A Specifications

Proposed substitutes of Copy A must be exact replicas of the official IRS form with respect to
layout and content. Proposed substitutes for Copy A that do not conform to the specifications in
this revenue procedure are not acceptable. Further, if you file such forms with the IRS, you may
be subject to a penalty for failure to file a correct information return under section 6721 of the
Code. The amount of the penalty is based on when you file the correct information return. The
amount of the penalty is shown next.

· $50 per information return if you correctly file within 30 days (by March 30 if the due date is
February 28); maximum penalty $532,000 per year ($186,000 for small businesses).

· $100 per information return if you correctly file more than 30 days after the due date but by August
1; maximum penalty $1,596,500 per year ($532,000 for small businesses).

· $260 per information return if you file after August 1 or you do not file required information
returns; maximum penalty $3,193,000 per year ($1,064,000 for small businesses).

### 1.3.4 Copy B and Copy C Specifications

Copy B and Copy C of the following forms must contain the information in Part 4 to be
considered a "statement" or "official form" under the applicable provisions of the Code. The
format of this information is at the discretion of the filer with the exception of the location of the
tax year, form number, form name, and the information for composite Form 1099 statements as
outlined under Section 4.2.

Copy B, of the forms below, are for the following recipients.

Form

Recipient

1098

For Payer/Borrower

1098-C

For Donor

1098-E; 1099-A

For Borrower

1098-MA

For Homeowner

1098-Q

For Participant

1098-T

For Student

1099-C

For Debtor

1099-CAP

For Shareholder

Form

Recipient

1099-K

For Payee

1099-LTC

For Policyholder

1099-R; W-2G

Indicates that these forms may require Copy B to be at- tached to the fed- eral income tax return.

1099-S

For Transferor

All remaining Forms 1099; 1097-BTC;

For Recipient

1042-S;

3921; 3922

For Employee

5498; 5498-SA

For Participant

5498-QA;

For Beneficiary

5498-ESA

1097-BTC

For Payer

1098

For Recipient/ Lender

1098-C

For Donor's Re- cords

1098-E; 1042-S

For Recipient

1098-MA;

For Filer

1098-T; 1099-K

1098-Q

For Issuer

1099-CAP;

For Corporation

3921; 3922

1099-LTC

For Insured

1099-QA

For Payer

1099-R

For Recipient's Records

All other Forms

See Section 4.5.2

1099

5498

For Trustee or In- surer

5498-ESA,

For Trustee

5498-SA

5498-QA

For Issuer

W-2G

For Winner's Re- cords

Note. On Copy C, Form 1099-LTC, you may reverse the locations of the policyholder's and the
insured's name, street address, city, state, and ZIP code for easier mailing.

# Part 2 Specifications for Substitute Forms 1096 and Copies A of Forms 1097-BTC, 1098, 1099, 3921, 3922, and5498 (All Filed With the IRS)

Section 2.1 - Specifications

2.1.1 Online Fillable Forms

Due to the very low volume of paper Forms 1099-CAP, 1099-LTC, 1099-SA, 3922, 5498- ESA, and 5498-SA received and processed by the IRS each year, these forms have been converted to an online fillable format. New Forms 1099-QA and 5498-QA are also in an online fillable format. Note. The instructions for substitute Forms 1042-S, also an online fillable format, are found separately in Part 5.

The Copy A of the Forms 1099-CAP, 1099-LTC, 1099-SA, 3922, 5498-ESA, and 5498-SA has been removed from the Exhibits in Part 6. These forms in their fillable format, as well as Forms 1099-QA, 5498-QA and 1042-S, can be found at www.irs.gov under the Forms and Pubs tab.

All the instructions regarding the substitute forms found in Part I, sections 2.1.2, 2.1.7, 2.1.9, and 2.1.10, and the remainder of this publication, unless specified differently immediately below, remain in effect if you are going to produce the online fillable forms as paper or online substitute forms.

· Copy A of privately printed substitutes of the forms listed above must be exact replicas of the official forms with respect to layout and content. Use the official form, found on IRS.gov, printed actual size on an 81/2" by 11" sheet of paper. The forms will print one to a page. · All printing must be in high quality non-gloss black ink. · Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound (basis 17 x 22-500), plus or minus 5 percent; or offset book paper, 50 pound (basis 25 x 38-500). No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleached chemical wood pulp or recycled printed paper. It also must be suitably sized to accept ink without feathering.

2.1.2 General Requirements

Form identifying numbers (for example, 9191 for Form 1099-DIV) must be printed in nonre- flective black carbon-based ink in print positions 15 through 19 using an optical character recognition (OCR) A font. The check boxes to the right of the form identifying numbers must be 10-point boxes. The "VOID" checkbox is in print position 25 (1.9" from left vertical line of the form). The "CORRECTED" check box is in print position 33 (2.7" from left vertical line of the form). Measurements are generally from the left edge of the paper, not including the perforated strip.

The substitute form Copy A must be an exact replica of the official IRS form with respect to layout and content. To determine the correct form measurements, see Exhibits A through Y at the end of this publication.

Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply.

Use of chemical transfer paper for Copy A is acceptable.

The Government Printing Office (GPO) symbol must be deleted.

2.1.3 Color and Paper Quality

Color and paper quality for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP Code 0-25, dated November 29, 1978, must be white 100% bleached chemical wood, OCR bond produced in accordance with the following specifications.

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

Acidity: Ph value, average, not less than

4.5

Basis Weight: 17 x 22-500 cut sheets

18-20

Metric equivalent-g/m2

A tolerance of ±5 pct. is allowed.

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

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

Opacity: Average, not less than-percent

Thickness: Average-inch

0.0038

Metric equivalent-mm

0.097

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

Porosity: Average, not less than-seconds

Finish (smoothness): Average, each side-seconds

20-55

For information only, the Sheffield equivalent-units

170-100

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

## 2.1.4 Chemical Transfer Paper

Chemical transfer paper is permitted for Copy A only if the following standards are met.

· Only chemically backed paper is acceptable for Copy A. Front and back chemically treated paper
cannot be processed properly by machine.

· Carbon-coated forms are not permitted.

· Chemically transferred images must be black.

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

## 2.1.5 Printing

All print on Copy A of Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498, and the print on Form
1096 above the statements, "Return this entire page to the Internal Revenue Service. Photocopies
are not acceptable." must be in Flint J-6983 red OCR dropout ink or an exact match. However,
the four-digit form identifying number must be in nonreflective carbon-based black ink in OCR
A font.

The shaded areas of any substitute form should generally correspond to the format of the official
form.

The printing for the Form 1096 statement and the following text may be in any shade or tone of
black ink. Black ink should only appear on the lower part of the reverse side of Form 1096, where
it will not bleed through and interfere with scanning.

Note. The instructions on the front and back of Form 1096, which include filing addresses, must
be printed.

## 2.1.6 OCR Specifications

Separation between fields must be 0.1 inch.

Other printing requirements are discussed in Sections 2.1.5 through 2.1.9.

You must initiate or have a quality control program to assure OCR ink density. Readings will be
made when printed on approved 20 lb. white OCR bond with a reflectance of not less than 80%.
Black ink must not have a reflectance greater than 15%. These readings are based on requirements
of the"Scan-Optics Series 9000" Optical Scanner using Flint J-6983 red OCR dropout ink or an
exact match.

The following testers and ranges are acceptable:

Important information: The forms produced under these specifications must be guaranteed to
function properly when processed through High Speed Scan-Optics 9000 mm scanners. Forms
require precision spacing, printing, and trimming.

Density readings on the solid J-6983 (red) must be between the ranges of 0.95 to 0.90. The
optimal scanning range is 0.93. Density readings on the solid black must be between the ranges
of 112 to 108. The optimal scanning range is 110.

Note. The readings are taken using an Ex-Rite 500 series densitometer, in Status T with Obsolute
or - paper setting under an Illuminate 5000 Kelvin Watt Light. You must maintain print contrast
specification of ink and densitometer reflectivity reading throughout entire production run.

· MacBeth PCM-II. The tested Print Contrast Signal (PCS) values when using the MacBeth PCM-II
tester on the "C" scale must range from .01 minimum to .06 maximum.

· Kidder 082A. The tested PCS values when using the Kidder 082A tester on the Infra Red (IR) scale
must range from .12 minimum to .21 maximum. White calibration disc must be 100%. Sensitivity
must be set at one (1).

· Alternative testers must be approved by the IRS to establish tested PCS values. You may obtain
approval by writing to the following address:

Commissioner of Internal Revenue
Attn: SE:W:CAR:MP:P:TP
Business Publishing - Tax Products
5000 Ellin Road
Lanham, MD 20706

2.1.7 Typography

Type must be substantially identical in size and shape to the official form. All rules are either 1/2-point or 3/4-point. Rules must be identical to those on the official IRS form. Note. The form identifying number must be nonreflective carbon-based black ink in OCR A font.

2.1.8 Dimensions

Generally, three Copies A of Forms 1098, 1099, 3921, and 3922 are contained on a single page, 8 inches wide (without any snap-stubs and/or pinfeed holes) by 11 inches deep. Exceptions. Forms 1097-BTC, 1098, 1098-Q, 1099-B, 1099-DIV, 1099-INT, 1099-K, 1099- MISC, 1099-OID, 1099-R, and 5498, contain two documents per page. Forms 1098-C and 1042-S are a single page documents.

There is a .33 inch top margin from the top of the corrected box, and a .2 to .25 inch right margin, with a +/- 1/20 (0.05) inch tolerance for the right margin. If the right and top margins are properly aligned, the left margin for all forms will be correct. All margins must be free of print. See Exhibits A through Y in this revenue procedure for correct form measurements.

These measurements are constant for certain Forms 1098, 1099, and 5498. These measurements are shown only once in this publication, on Form 1098-E (Exhibit E). Exceptions to these measurements and form-specific measurements are shown on the rest of the exhibits.

The depth of the individual trim size of each form on a page must be 32/3 inches, the same depth as the official form, or otherwise indicated.

Exceptions. The depth of Forms 1097-BTC, 1098, 1098-Q, 1099-B, 1099-DIV, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-R, and 5498 is 5-1/2 inches.

2.1.9 Perforation

Copy A (three per page and two per page) of privately printed continuous substitute forms must be perforated at each 11" page depth. No perforations are allowed between forms on the Copy A page. Exception. Copy A of Form W-2G may be perforated.

The words "Do Not Cut or Separate Forms on This Page" must be printed in red dropout ink (as
required by form specifications) between the three or two forms per page. This statement should
not be included after the last form on the page.

Separations are required between all the other individual copies (Copies B and C, and Copies 1
and 2 of Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID,
1099-R, and Copy D for Forms 1099-LTC, 1099-R, and 1042-S) in the set. Any recipient
copies printed on a single sheet of paper must be easily separated. The best method of separation
is to provide perforations between the individual copies. Each copy should be easily distinguished
whatever method of separation is used.

Note. Perforation does not apply to printouts of copies that are furnished electronically to
recipients (as described in Regulations section 31.6051-1(k)).

However, these recipients should be cautioned to carefully separate any copies. See Section 4.6.1,
later, for information on electronically furnishing statements to recipients.

You must include the OMB Number on Copies A and Form 1096 in the same location as on the
official form.

## 2.1.10 Required Inclusions/ Exclusions

The following Privacy Act and Paperwork Reduction Act Notice phrases must be printed on Copy
A of the forms as follows. It also must be printed on the Copy C, D, or E of the form retained
by the filer.

· "For Privacy Act and Paperwork Reduction Act Notice, see the current version of the General
Instructions for Certain Information Returns" on Forms 3921 and 3922.

. "For more information and the Privacy Act and Paperwork Reduction Act Notice, see the 2016
General Instructions for Certain Information Returns" on Form 1096.

· "For Privacy Act and Paperwork Reduction Act Notice, see instructions" on Form 1042-S.

· "For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for
Certain Information Returns" must be printed on all other forms listed in Section 1.1.2.

A postal indicia may be used if it meets the following criteria.

. It is printed in the OCR ink color prescribed for the form.

· No part of the indicia is within one print position of the scannable area.

The printer's symbol (GPO) must not be printed on substitute Copy A. Instead, the employer
identification number (EIN) of the form's printer must be entered in the bottom margin on the face
of each individual form of Copy A, or on the bottom margin on the back of each Form 1096.

The Catalog Number (Cat. No.) shown on the forms is used for IRS distribution purposes and
should not be printed on any substitute forms.

The form must not contain the statement "IRS approved" or any similar statement.

## Section 2.2 - Instructions for Preparing Paper Forms That Will Be Filed With the IRS

### 2.2.1 Recipient Information

The form recipient's name, street address, city, state, ZIP code, and telephone number (if
required) should be typed or machine printed in black ink in the same format as shown on the
official IRS form. The city, state, and ZIP code must be on the same line.

The following rules apply to the form recipient's name(s).

. The name of the appropriate form recipient must be shown on the first or second name line in the
area provided for the form recipient's name.

· No descriptive information or other name may precede the form recipient's name.

. Only one form recipient's name may appear on the first name line of the form.

. If multiple recipients' names are required on the form, enter on the first name line the recipient
name that corresponds to the recipient taxpayer identification number (TIN) shown on the form.
Place the other form recipients' names on the second name line (only 2 name lines are allowable).

Because certain states require that trust accounts be provided in a different format, filers generally
should provide information returns reflecting payments to trust accounts with the:

· Trust's employer identification number (EIN) in the recipient's TIN area,

· Trust's name on the recipient's first name line, and

· Name of the trustee on the recipient's second name line.

Although handwritten forms will be accepted, the IRS prefers that filers type or machine print data
entries. Also, filers should insert data as directed by shading, or in the middle of blocks, well
separated from other printing and guidelines, and take measures to guarantee clear, dark black,
sharp images. Photocopies are not acceptable.

Truncating payee identification number on payee statements. Where permitted, filers may
truncate a payee's identification number (social security number (SSN), individual taxpayer
identification number (ITIN), adoption taxpayer identification number (ATIN), or employer
identification number (EIN)) on the payee statement (including substitute and composite substi-
tute statements) furnished to the payee in paper form or electronically. Generally, the payee
statement is that copy of an information return designated "Copy B" on the form. To truncate
where allowed, replace the first 5 digits of the 9-digit number with asterisks (*) or Xs (for
example, an SSN xxx-xx-xxxx would appear on the paper payee statement as \*\**_\*\*- xxxx or
XXX-XX-xxxx). See Treasury Decision 9675, 2014-31 I.R.B. 242, available at www.irs.gov/irb/
2014-31_IRB/ ar07.html.

### 2.2.2 Account Number Box

Caution: Recipient TINs must not be truncated on Copy A filed with the IRS.

Use the account number box on all Forms 1098, 1099, 3921, 3922, 5498, and W-2G for an
account number designation when required by the official IRS form. The account number is
required if you have multiple accounts for a recipient for whom you are filing more than one
information return of the same type. Additionally, the IRS encourages you to include the
recipients' account numbers on paper forms if your system of records uses the account number
rather than the name or TIN for identification purposes. Also, the IRS will include the account
number in future notices to you about backup withholding. If you are using window envelopes to
mail statements to recipients and using reduced rate mail, be sure the account number does not
appear in the window. The Postal Service may not accept these for reduced rate mail.

#### 2.2.3 Specifications and Restrictions

Exception. Form 1098-T can have third-party provider information.

· Machine-printed forms should be printed using a 6 lines/inch option, and should be printed in 10
pitch pica (10 print positions per inch) or 12 pitch elite (12 print positions per inch). Proportional
spaced fonts are unacceptable.

· Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the
size specified for a single sheet before they are filed with the IRS. The size specified does not
include pin feed holes. Pin feed holes must not be present on forms filed with the IRS.

. Do not use a felt tip marker. The machine used to "read" paper forms generally cannot read this
ink type.

· Do not use dollar signs ($), ampersands (&), asterisks (*), commas (,), or other special characters
in the numbered money boxes. Exception. Use decimal points to indicate dollars and cents (for
example, 2000.00 is acceptable).

· Do not use apostrophes ('), asterisks (*), or other special characters on the payee name line.

. Do not fold Forms 1097-BTC, 1098, 1099, 3921, 3922, or 5498 mailed to the IRS. Mail these
forms flat in an appropriately sized envelope or box. Folded documents cannot be readily moved
through the machine used in IRS processing.

. Do not staple Forms 1096 to the transmitted returns. Any staple holes near the return code number
may impair the IRS's ability to machine scan the type of documents.

. Do not type other information on Copy A.

. Do not cut or separate the individual forms on the sheet of forms of Copy A (except Forms W-2G).

#### 2.2.4 Where To File

Mail completed paper forms to the IRS service center shown in the Instructions for Form 1096
and in the 2016 General Instructions for Certain Information Returns. Specific information needed
to complete the forms mentioned in this revenue procedure are given in the specific form
instructions. A chart showing which form must be filed to report a particular payment is included
in the 2016 General Instructions for Certain Information Returns.

# Part 3 Specifications for Substitute Form W-2G (Filed With the IRS)

## Section 3.1 - General

## 3.1.1 Purpose

The following specifications give the format requirements for substitute Form W-2G (Copy A
only), which is filed with the IRS.

A filer may use a substitute Form W-2G to file with the IRS (referred to as "substitute Copy A").
The substitute form must be an exact replica of the official form with respect to layout and
content.

# Section 3.2 - Specifications for Copy A of Form W-2G

## 3.2.1 Substitute Form W-2G (Copy A)

You must follow these specifications when printing substitute Copy A of the Form W-2G.

Caution: The payee's TIN (SSN, ITIN, ATIN, or EIN) must not be truncated on Form W2-G.

Item

Substitute Form W-2G (Copy A)

Paper Color and Quality

Paper for Copy A must be white chemical wood bond, or equiv- alent, 20 pound (basis 17 x 22-500), plus or minus 5 percent. The paper must consist substantially of bleached chemical wood pulp. It must be free from unbleached or ground wood pulp or post-consumer recycled paper. It also must be suitably sized to accept ink without feathering.

Ink Color and Quality

All printing must be in a high quality non gloss black ink.

Typography Dimensions

The type must be substantially identical in size and shape to the official form. All rules on the document are either 1/2 point (.007 inch), 1 point (0.015 inch), or 3 point (0.045). Vertical rules must be parallel to the left edge of the document, horizontal rules to the top edge.

The official form is 8 inches wide x 51/2 inches deep, exclusive of a snap stub. Any substitute Copy A can be between 8 inches and 81/2 inches wide by 5 inches deep. The snap feature is not required on substitutes. All margins must be free of print. There is a .33 inch top margin from the top of the corrected box, and a 1/2 inch left margin. If the top and left margins are properly aligned, the right margin for all forms will be correct. If the substitute forms are in continuous or strip form, they must be burst and stripped to con- form to the size specified for a single form.

Item

Substitute Form W-2G (Copy A)

Hot Wax and Cold Carbon Spots

Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply.

Printer's Symbol

The Government Printing Office (GPO) symbol must not be printed on substitute Forms W-2G. Instead, the employer identi- fication number (EIN) of the forms printer must be printed in the bottom margin on the face of each individual Copy A on a sheet. The form must not contain the statement "IRS approved" or any similar statement.

Catalog Number

The Catalog Number (Cat. No.) shown on Form W-2G is used for IRS distribution purposes and should not be printed on any substitute forms.

# Part 4 Substitute Statements to Form Recipients and Form Recipient Copies

## Section 4.1 - Specifications

### 4.1.1 Introduction

If you do not use the official IRS form to furnish statements to recipients, you must furnish an
acceptable substitute statement. Information presented in substitute statements should be in a
point size large enough to be easily read by recipients. To be acceptable, your substitute statement
must comply with the rules in this Part. If you are furnishing a substitute form, see Regulations
sections 1.6042-4, 1.6044-5, 1.6049-6, and 1.6050N-1 to determine how the following state-
ments must be provided to recipients for most Forms 1099-DIV and 1099-INT, all Forms
1099-OID and 1099-PATR, and Form 1099-MISC or 1099-S for royalties. Generally, infor-
mation returns may be furnished electronically with the consent of the recipient. See Section
4.6.1.

Note. A trustee of a grantor-type trust may choose to file Forms 1099 and furnish a statement to
the grantor under Regulations sections 1.671-4(b)(2)(iii) and (b)(3)(ii). The statement required by
those regulations is not subject to the requirements outlined in this section.

4.1.2
Substitute Statements to
Recipients for Certain
Forms 1099-B, 1099- DIV,
1099-INT, 1099-OID, and
1099-PATR

The rules in this section apply to Form 1099-B, 1099-DIV (except for section 404(k) dividends),
1099-INT (except for interest reportable under section 6041), 1099-OID, and 1099-PATR only.
You may furnish form recipients with Copy B of the official Form 1099 or a substitute Form 1099
(recipient statement) if it contains the same information as the official IRS form (such as
aggregate amounts paid to the form recipient, any backup withholding, the name, address, and
TIN of the person making the return, and any other information required by the official form).
Information not required by the official form should not be included on the substitute form except
for state income tax withholding information.

Note. Many of the information returns now include boxes for providing state withholding
information as part of the official form, with additional copies for convenience. Payers may,
however, provide the state withholding information separately (such as on a separate page or
section) in order to assist the payee with completing a state income tax return that requires the
attachment of any information return that includes state withholding amounts and payer numbers.

Exception for supplementary information. The substitute form may include supplementary
information that will assist the payee with completing his or her tax return. Such information
could include expense and cost basis factors related to the reporting for widely held fixed
investment trusts (WHFITs), as required under Regulation section 1.671-5. The substitute
statement should disclose to the payee that such supplementary information is not furnished to the

IRS. See Section 4.3 for additional requirements when providing supplemental information with
the Form 1099-B that is not furnished to the IRS.

Form 1099-B. For transactions reportable on Form 8949, brokers that use substitute statements
should segregate dispositions of noncovered securities from covered securities, and further
segregate long-term and short-term dispositions of covered securities. They may also segregate
long-term from short-term dispositions of noncovered securities, to the extent that date acquired
is known. For 2016 dispositions, the substitute Forms 1099-B may have up to five separate
sections, each with a heading identifying which securities are included in the list, and each
separately totaled. Each section, after totaling or within the heading for the section, should
indicate how to report the transactions on Form 8949, as indicated.

1\. Short-term transactions for which basis is reported to the IRS -- Report on Form 8949, Part I, with
Box A checked.

2\. Short-term transactions for which basis is not reported to the IRS- - Report on Form 8949, Part
I, with Box B checked.

3\. Long-term transactions for which basis is reported to the IRS- - Report on Form 8949, Part II,
with Box D checked.

4\. Long-term transactions for which basis is not reported to the IRS- - Report on Form 8949, Part
II, with Box E checked.

5\. Transactions for which basis is not reported to the IRS and for which short-term or long-term
determination is unknown (to Broker). You must determine short-term or long-term based on your
records and report on Form 8949, Part I, with Box B checked, or on Form 8949, Part II, with Box
E checked, as appropriate.

For each section, each transaction may include information not reported to the IRS, such as basis,
date acquired, and gain or loss. Therefore, for short-term dispositions where basis was not
reported to the IRS, basis and date acquired may be shown just as it would be shown for
short-term dispositions where basis was reported to the IRS.

For 2016 dispositions, each of the applicable sections must have Sales Price and Cost or Other
Basis (if known) separately totaled. Net gain or loss, if included for any of the sections, may also
be totaled.

Brokers may also use substitute Form 1099-B for transactions that are not directly reported on
Form 8949. Examples include transactions involving regulated futures contracts, foreign currency
contracts, and section 1256 option contracts. Any additional sections created for this purpose
should be segregated from those transactions directly reportable on Form 8949.

The substitute form requirements in the following paragraphs also apply to Form 1099-B.

Forms 1099-INT, DIV, OID, and PATR. A substitute recipient statement for Form 1099-INT,
1099-DIV, 1099-OID, or 1099-PATR must comply with the following requirements.

· Box captions and numbers that are applicable must be clearly identified, using the same wording
and numbering as on the official form.

· The recipient statement (Copy B) must contain all applicable recipient instructions as provided on
the front and back of the official IRS form. You may provide those instructions on a separate sheet
of paper.

· The box caption "Federal income tax withheld" must be in boldface type or otherwise highlighted
on the recipient statement.

· The recipient statement must contain the Office of Management and Budget (OMB) number as
shown on the official IRS form. See Section 5.2.

· The recipient statement must contain the tax year (for example, 2016), form number (for example,
Form 1099-INT), and form name (for example, Interest Income) of the official IRS Form 1099.
This information must be displayed prominently together in one area of the statement. For example,
the tax year, form number, and form name could be shown in the upper right part of the statement.
Each copy must be appropriately labeled (such as Copy B, For Recipient). See Section 4.5.2 for

applicable labels and arrangement of assembly of forms. Note. Do not include the words "Sub-
stitute for" or "In lieu of" on the recipient statement.

· Layout and format of the statement is at the discretion of the filer. However, the IRS encourages
the use of boxes so that the statement has the appearance of a form and can be easily distinguished
from othernon-tax statements.

. Each recipient statement of Forms 1099-B, 1099-DIV, 1099-INT, 1099-OID, and 1099-PATR
must include the direct access telephone number of an individual who can answer questions about
the statement. Include that telephone number conspicuously anywhere on the recipient statement.

A mutual fund family may furnish one statement (for example, one piece of paper) on which it
reports the dividend income earned by a recipient from multiple funds within the family of mutual
funds, as required by Form 1099-DIV. However, each fund and its earnings must be stated
separately. The statement must contain an instruction to the recipient that each fund's dividends
and name, not the name of the mutual fund family, must be reported on the recipient's tax return.
The statement cannot contain an aggregate total of all funds. In addition, a mutual fund family
may furnish a single statement (as a single filer) for Forms 1099-INT, 1099-DIV, and 1099-OID
information (see Section 4.2.1, later). Each fund and its earnings must be stated separately. The
statement must contain an instruction to the recipient that each fund's earnings and name, not the
name of the mutual fund family, must be reported on the recipient's tax return. The statement
cannot contain an aggregate total of all funds.

You may enter a total of the individual accounts listed on the statement only if they have been
paid by the same payer. For example, if you are listing interest paid on several accounts by one
financial institution on Form 1099-INT, you may also enter the total interest amount. You may
also enter a date next to the corrected box if that box is checked.

4.1.3
Substitute Statements to
Recipients for Certain
Forms 1098, 1099, 5498,
and W-2G

Statements to form recipients for Forms 1097-BTC, 1098, 1098-C, 1098-E, 1098-MA,
1098-Q, 1098-T, 1099-A, 1099-C, 1099-CAP, 1099-G, 1099-K, 1099-LTC, 1099-MISC,
1099-Q, 1099-QA, 1099-R, 1099-S, 1099-SA, 3921, 3922, 5498, 5498-ESA, 5498-QA,
5498-SA, W-2G, 1099-DIV (only for section 404(k) dividends reportable under section 6047),
and 1099-INT (only for interest of $600 or more made in the course of a trade or business
reportable under section 6041) can be copies of the official forms or an acceptable substitute.

Caution: The IRS does not require a donee to use Form 1098-C as the written acknowledgment
for contributions of motor vehicles, boats, and airplanes. However, if you choose to use copies of
Form 1098-C or an acceptable substitute as the written acknowledgment, then you must follow
the requirements of this section.

To be acceptable, a substitute recipient statement must meet the following requirements.

· The tax year, form number, and form name must be the same as the official form and must be
displayed prominently together in one area on the statement. For example, they may be shown in
the upper right part of the statement.

· The statement must contain the same information as the official IRS form, such as aggregate
amounts paid to the form recipient, any backup withholding, the name, address, and TIN of the filer
and of the recipient, and any other information required by the official form.

· Each substitute recipient statement for Forms W-2G, 1097-BTC, 1098, 1098-C, 1098-E,
1098-T, 1099-A, 1099-C, 1099-CAP, 1099-DIV, 1099-G (excluding state and local income tax
refunds), 1099-K, 1099-INT, 1099-LTC, 1099-MISC (excluding fishing boat proceeds),
1099-Q, 1099-R (for qualified long-term care insurance contracts under combined arrangements
only), 1099-S, 1099-SA, and 5498-SA must include the direct access telephone number of an
individual who can answer questions about the statement.

· Include the telephone number conspicuously anywhere on the recipient statement. Although not
required, payers reporting on 1099-QA, Forms 1099-R (payments other than qualified long-term
care insurance contracts under combined arrangements), 3921, 3922, 5498, 5498-ESA, and
5498-QA are encouraged to furnish telephone numbers at which recipients of the forms(s) can
reach a person familiar with information reported.

· All applicable money amounts and information, including box numbers required to be reported to
the form recipient must be titled on the recipient statement in substantially the same manner as those
on the official IRS form. The box caption "Federal income tax withheld" must be in boldface type
on the recipient statement.

Exception. If you are reporting a payment as "Other income" in box 3 of Form 1099-MISC, you
may substitute appropriate language for the box title. For example, for payments of accrued wages
and leave to a beneficiary of a deceased employee, you might change the title of box 3 to
"Beneficiary payments" or something similar.

Note. You cannot make this change on Copy A.

. If federal income tax is withheld and shown on Form 1099-R or W-2G, Copy B and Copy C must
be furnished to the recipient. If federal income tax is not withheld, only Copy C of Form 1099-R
and W-2G must be furnished. However, for Form 1099-R, instructions similar to those onthe back
of the official Copy B and Copy C of Form 1099-R must be furnished to the recipient. For
convenience, you may choose to provide both Copies B and C of Form 1099-R to the recipient.

· You must provide appropriate instructions to the form recipient similar to those on the official IRS
form, to aid in the proper reporting on the form recipient's income tax return. For payments reported on
Forms 1099-B, and 1099-CAP, the requirement to include instructions substantially similar to those on
the official IRS form may be satisfied by providing form recipients with a single set of instructions for
all Forms 1099-B and 1099-CAP statements required to be furnished in a calendar year.

· If you use carbonless sets to produce recip. statements, the quality of each copy in the set must meet
the following standards.

1\. All copies must be clearly legible.

2\. All copies must be able to be photocopied.

3\. Fading must not diminish legibility and the ability to photocopy.

· In general, black chemical transfer inks are preferred, but other colors are permitted if the above
standards are met. Hot wax and cold carbon spots are not permitted on any of the internal form
plies. The back of a mailer top envelope ply may contain these spots.

. You may use a Settlement Statement (under the Real Estate Settlement Procedures Act of 1974
(RESPA)) for Form 1099-S. The Settlement Statement is acceptable as the written statement to the
transferor if you include the legend for Form 1099-S found in Section 4.4.2 and indicate which
information on the Settlement Statement is being reported to the IRS on Form 1099-S.

· For reporting state income tax withholding and state payments, you may add an additional box(es)
to recipient copies as appropriate. In addition, the state withholding information may be provided
separate and apart from the other information in the event the recipient must attach a copy to the
recipient's tax return. Note. You cannot make this change on Copy A.

· On Copy C of Form 1099-LTC, you may reverse the location of the policyholder's and the
insured's name, street address, city, state, and ZIP code for easier mailing.

· If an institution insurer uses a third party service provider to file Form 1098-T, then in addition to
the institution or insurers name, address, and telephone number, the same information may be
included for the third party service provider in the space provided on the form.

· Forms 1099-A and 1099-C transactions, if related, may be combined on Form 1099-C.

## Section 4.2 - Composite Statements

4.2.1
Composite Substitute
Statements for Certain
Forms 1099-B, 1099- DIV,
1099-INT, 1099-MISC,
1099-OID, 1099- PATR
and 1099-S

A composite recipient statement is permitted for reportable payments consisting of the proceeds
of brokerage and barter transactions, dividends, interest, original issue discount, patronage
dividends, and royalties. The following forms may be included on a composite substitute
statement, when one payer is reporting more than one of these payments during a calendar year
to the same form recipient.

· Form 1099-B.

· Form 1099-DIV (except for section 404(k) dividends).

· Form 1099-INT (except for interest reportable under section 6041).

· Form 1099-MISC (only for royalties or substitute payments in lieu of dividends and interest).

· Form 1099-OID.

· Form 1099-PATR.

· Form 1099-S (only for royalties).

Generally, do not include any other Form 1099 information (for example, 1099-A or 1099-C)
on a composite statement with the information required on the forms listed in the preceding
sentence.

Although the composite recipient statement may be on one sheet, the format of the composite
recipient statement must satisfy the following requirements in addition to the requirements listed
earlier in Section 4.1.2, 4.3 and 4.4, as applicable.

· All information pertaining to a particular type of payment must be located and blocked together on
the form and separate from any information covering other types of payments included on the form.
For example, if you are reporting interest and dividends, the Form 1099-INT information must be
presented separately from the Form 1099-DIV information.

· The composite recipient statement must prominently display the form number and form name of
the official IRS form together in one area at the beginning of each appropriate block of information.
The tax year must only be placed on each block of information if it is not prominently displayed
elsewhere on the page on which the information appears.

· Any information required by the official IRS forms that would otherwise be repeated in each
information block is required to be listed only once in the first information block on the composite
form. For example, there is no requirement to report the name of the filer in each information block.
This rule does not apply to any money amounts (for example, federal income tax withheld) or to
any other information that applies to money amounts.

· A composite statement is an acceptable substitute only if the type of payment and the recipient's
tax obligation with respect to the payment are as clear as if each required statement were furnished
separately on an official form.

4.2.2
Composite Substitute
Statements to Recipients
for Forms Specified in
Section 4.1.3

A composite recipient statement for the forms specified in Section 4.1.3 is permitted when one
filer is reporting more than one type of payment during a calendar year to the same form recipient.
A composite statement is not allowed for a combination of forms listed in Section 4.1.3 and forms
listed in Section 4.1.2.

### Exceptions:

· Substitute payments in lieu of dividends or interest reported in Box 8 of Form 1099-MISC may
be reported on a composite substitute statement with Form 1099-DIV.

· Form 1099-B information may be reported on a composite form with the forms specified in Section
4.1.2 as described in Section 4.2.1.

· Royalties reported on Form 1099-MISC or 1099-S may be reported on a composite form only
with the forms specified in Section 4.1.2.

Although the composite recipient statement may be on one sheet, the format of the composite
recipient statement must satisfy the requirements listed in Section 4.2.1 as well as the require-
ments in Section 4.1.3. A composite statement of Forms 1098 and 1099-INT (for interest
reportable under section 6049) is not allowed.

## Section 4.3 - Additional Information for Substitute and Composite Forms 1099-B

### 4.3.1 General Requirements for Presenting Additional 1099- B Information

A filer may include Form 1099-B information on a composite form with the forms listed in
Section 4.1.2. Therefore, supporting, explanatory, or comparable relevant information for covered
and noncovered lots on the 1099-B portion of the composite statement can be included. This
information includes display on the payee statement of data elements such as basis for noncovered
lots, explanatory remarks on permissible basis adjustments for covered lots descriptions of the
type of transaction (merger, buy to close, redemption, etc.), identification of contingent payment
debt obligations, and lot relief methods.

If you wish to provide additional information to the investor on the same substitute recipient Form
1099-B, the form must follow the rules set forth in this Section 4.3 and should clearly delineate
how the information is presented. Any information presented should make reference to its
corresponding number on the official form as appropriate. You should clearly categorize each
type of information you are reporting.

### 4.3.2 Added Legend for Providing Additional 1099- B Information

An additional separate legend is required that explains exactly which pieces of information are
and which are not reported to the IRS to the extent, if any, the information is not already identified
as not being reported to the IRS as described in Section 4.1.2. It should clearly explain how the
information is presented. You may present this legend in a way that is consistent with your design
as long as it clearly indicates which information is being provided to the IRS. Additionally, a
reminder to taxpayers that they are ultimately responsible for the accuracy of their tax returns is
also required.

## Section 4.4 - Required Legends

4.4.1
Required Legends for
Forms 1098

Form 1098 recipient statements (Copy B) must contain the following legends:

· Form 1098

1\. "The information in boxes 1 through 9 is important tax information and is being furnished to the
Internal Revenue Service. If you are required to file a return, a negligence penalty or other
sanction may be imposed on you if the IRS determines that an underpayment of tax results
because you overstated a deduction for the mortgage interest or for these points, reported in
boxes 1 and 6; or because you did not report the refund of interest (box 4); or because you
claimed a non-deductible item."

2\. Caution: "The amount shown may not be fully deductible by you. Limits based on the loan
amount and the cost and value of the secured property may apply. Also, you may only deduct
interest to the extent it was incurred by you, actually paid by you, and not reimbursed by another
person."

· Form 1098-C -: Copy B - "In order to take a deduction of more than $500 for this contribution, you
must attach this copy to your federal tax return. Unless box 5a or 5b is checked, your deduction
cannot exceed the amount in box 4c. "Copy C - "This information is being furnished to the
Internal Revenue Service unless box 7 is checked."

· Form 1098-E - "This is important tax information and is being furnished to the Internal Revenue
Service. If you are required to file a return, a negligence penalty or other sanction may be imposed
on you if the IRS determines that an underpayment of tax results because you overstated a
deduction for student loan interest."

· Form 1098-MA - "This is important tax information and is being furnished to the Internal Revenue
Service."

· Form 1098-Q - "This information is being furnished to the Internal Revenue Service."

· Form 1098-T - "This is important tax information and is being furnished to the Internal Revenue
Service. This form must be used to complete Form 8863 to claim education credits. Give it to the
tax preparer or use it to prepare the tax return."

4.4.2
Required Legends for
Forms 1099 and W-2G

· Forms 1099-A, 1099-C, and 1099-CAP: Copy B - "This is important tax information and is being
furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty
or other sanction may be imposed on you if taxable income results from this transaction and the IRS
determines that it has not been reported."

· Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-
PATR, 1099-Q and 1099-QA: Copy B- "This is important tax information and is being furnished
to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other
sanction may be imposed on you if this income is taxable and the IRS determines that it has not
been reported."

· Form 1099-LTC: Copy B - "This is important tax information and is being furnished to the Internal
Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be
imposed on you if this item is required to be reported and the IRS determines that it has not been
reported." Copy C - "Copy C is provided to you for information only. Only the policyholder is
required to report this information on a tax return."

· Form 1099-R: Copy B - "Report this income on your federal tax return. If this form shows
federal income tax withheld in box 4, attach this copy to your return." Copy C - "This
information is being furnished to the Internal Revenue Service."

· Form 1099-S: Copy B - "This is important tax information and is being furnished to the Internal
Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be
imposed on you if this item is required to be reported and the IRS determines that it has not been
reported."

· Form 1099-SA: Copy B - "This information is being furnished to the Internal Revenue Service."

· Form W-2G: Copy B - "This information is being furnished to the Internal Revenue Service.
Report this income on your federal tax return. If this form shows federal income tax withheld
in box 4, attach this copy to your return." Copy C - "This is important tax information and is
being furnished to the Internal Revenue Service. If you are required to file a return, a negligence
penalty or other sanction may be imposed on you if this income is taxable and the IRS determines
that it has not been reported."

4.4.3
Required Legends for
Forms 1097-BTC, 3921,
3922, and 5498

· Form 1097-BTC: Copy B - "This is important tax information and is being furnished to the Internal
Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be
imposed on you if an amount of tax credit exceeding the amount reported on this form is claimed
on your income tax return."

· Form 3921: Copy B - "This is important tax information and is being furnished to the Internal
Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be
imposed on you if this item is required to be reported and the IRS determines that it has not been
reported." Copy C - "This copy should be retained by the corporation whose stock has been
transferred under Section 422(b)."

· Form 3922: Copy B - "This is important tax information and is being furnished to the Internal
Revenue Service." Copy C - "This copy should be retained by the corporation."

· Form 5498: Copy B - "This information is being provided to the Internal Revenue Service." Note.
If you do not provide another statement to the participant because no contributions were made for
the year, the statement of the fair market value and any required minimum distribution, of the
account must contain this legend and a designation of which information is being provided to the
IRS.

· Forms 5498-ESA, 5498-QA and 5498-SA: Copy B - "This information is being furnished to the
Internal Revenue Service."

## Section 4.5 - Miscellaneous Instructions for Copies B, C, D, E, 1, and 2

4.5.1
Copies

Copies B, C, and in some cases, D, E, 1 and 2 are included in the official assembly for the
convenience of the filer. You are not legally required to include all these copies with the privately

### 4.5.2 Arrangement of Assembly

printed substitute forms. Furnishing Copies B and, in some cases C will satisfy the legal
requirement to provide statements of information to form recipients.

Note. If an amount of federal income tax withheld is shown on Form 1099-R or W-2G, Copy
B (to be attached to the tax return) and Copy C must be furnished to the recipient. Copy D (Forms
1099-R and W-2G) may be used for payer records. Only Copy A should be filed with the IRS.

Copy A ("For Internal Revenue Service Center") of all forms must be on top. The rest of the
assembly must be arranged, from top to bottom, as follows. For:

Form

Title

1098

Copy B "For Payer/Borrower"; Copy C "For Recipient/ Lender."

1098-C

Copy B "For Donor"; Copy C "For Donor's Records"; Copy D "For Donee."

1098-E

Copy B "For Borrower"; Copy C "For Recipient."

1098-MA

Copy B "For Homeowner"; Copy C "For Filer."

1098-Q

Copy B "For Participant"; Copy C "For Issuer"

1098-T

Copy B "For Student"; Copy C "For Filer."

1099-A

Copy B "For Borrower"; Copy C "For Lender."

1097-BTC, 1099- PATR, 1099-Q and

Copy B "For Recipient"; Copy C "For Payer."

1099-QA

1099-C

Copy B "For Debtor"; Copy C "For Creditor."

1099-CAP

Copy B "For Shareholder"; Copy C "For Corporation."

1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC and 1099- OID

Copy 1 "For State Tax Department"; Copy B "For Recipi- ent"; Copy 2 "To be filed with recipient's state income tax return, when required"; and Copy C "For Payer."

1099-K

Copy 1 "For State Tax Department"; Copy B "For Payee"; Copy 2 "To be filed with the recipient's state income tax return, when required"; Copy C "For Filer."

1099-LTC

Copy B "For Policyholder"; Copy C "For Insured"; and Copy D "For Payer."

1099-R

Copy 1 "For State, City, or Local Tax Department"; Copy B "Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return"; Copy C "For Recipient's Re- cords"; Copy 2 "File this copy with your state, city, or local income tax return, when required"; Copy D "For Payer."

1099-S

Copy B "For Transferor"; Copy C "For Filer."

1099-SA

Copy B "For Recipient"; Copy C "For Trustee/Payer."

3921

Copy B "For Employee"; Copy C "For Corporation"; Copy D "For Transferor."

3922

Copy B "For Employee"; Copy C "For Corporation."

5498

Copy B "For Participant"; Copy C "For Trustee or Issuer."

5498-ESA

Copy B "For Beneficiary"; Copy C "For Trustee."

5498-QA

Copy B "For Beneficiary" and Copy C "For Issuer."

5498-SA

Copy B "For Participant"; Copy C "For Trustee."

Form

Title

W-2G 1042-S

Copy 1 "For State, City, or Local Tax Department"; Copy B "Report this income on your federal tax return. If this form shows federal income tax withheld in box 2, attach this copy to your return"; Copy C "For Winner's Re- cords"; Copy 2 "Attach this copy to your state, city, or local income tax return, if required"; Copy D "For Payer." Copy B "For Recipient"; Copies C and D "For Recipient" and "Attach to any federal tax return you file"; Copy E "For Withholding Agent."

Instructions for perforation of forms can be found in Section 2.1.8, earlier.

### 4.5.3 Perforations

## Section 4.6 - Electronic Delivery of Recipient Statements

### 4.6.1 Electronic Recipient Statements

If you are required to furnish a written statement (Copy B or an acceptable substitute) to a
recipient, then you may furnish the statement electronically instead of on paper. This includes
furnishing the statement to recipients of Forms 1098, 1098-E, 1098-MA, 1098-Q, 1098-T,
1099-A, 1099-B, 1099-C, 1099-CAP, 1099-DIV, 1099-G, 1099-H, 1099-INT, 1099-K,
1099-LTC, 1099-MISC, 1099- OID, 1099-PATR, 1099-Q, 1099-QA, 1099-R, 1099-S,
1099-SA, 3921, 3922, 5498, 5498-ESA, 5498-QA, and 5498-SA. It also includes Form W-2G
(except for horse and dog racing, jai alai, sweepstakes, wagering pools, and lotteries).

Note. Until further guidance is issued, you cannot furnish Form 1098-C electronically. Perfo-
ration (see Section 2.1.8, earlier) does not apply to printouts of copies of forms that are furnished
electronically to recipients. However, recipients should be cautioned to carefully separate the
copies.

If you meet the requirements listed in Sections 4.6.2 and 4.6.3, you are treated as furnishing the
statement timely.

### 4.6.2 Consent

The recipient must consent in the affirmative and not have withdrawn the consent before the
statement is furnished. The consent by the recipient must be made electronically in a way that
shows that he or she can access the statement in the electronic format in which it will be furnished.
You must notify the recipient of any hardware or software changes prior to furnishing the
statement. A new consent to receive the statement electronically is required after the new
hardware or software is put into service. Prior to furnishing the statements electronically, you
must provide the recipient a statement with the following statements prominently displayed.

. If the recipient does not consent to receive the statement electronically, a paper copy will be
provided.

· The scope and duration of the consent. For example, whether the consent applies to every year the
statement is furnished or only for the January 31 (February 15 for Forms 1099-B, 1099-S, and
1099-MISC with payments reported in boxes 8 or 14) immediately following the date of the
consent.

· How to obtain a paper copy after giving consent.

· How to withdraw the consent. The consent may be withdrawn at any time by furnishing the
withdrawal in writing (electronically or on paper) to the person whose name appears on the
statement. Confirmation of the withdrawal also will be in writing (electronically or on paper).

· Notice of termination. The notice must state under what conditions the statements will no longer
be furnished to the recipient.

· Procedures to update the recipient's information.

· A description of the hardware and software required to access, print and retain a statement, and a
date the statement will no longer be available on the website.

#### 4.6.3 Format, Posting, and Notification

Additionally, you must:

· Ensure the electronic format contains all the required information and complies with the guidelines
in this document,

. Post, on or before the January 31 (February 15 for Forms 1099-B, 1099-S, and 1099-MISC with
payments reported in boxes 8 or 14) due date, the applicable statement on a website accessible to
the recipient through October 15 of that year, and

. Inform the recipient, electronically or by mail, of the posting and how to access and print the
statement.

For more information, see Regulations section 31.6051-1. For electronic furnishing of Forms
1098-E and 1098-T, see Regulations sections 1.6050S-2 and 1.6050S-4. For electronic fur-
nishing of Forms 1099-K, see Regulations section 1.6050W-2. For electronic furnishing of
Forms 1099-QA, and 5498-QA, see Prop. Regulations section 1.529A-7 (taxpayers may rely on
the provisions of the proposed regulations). For electronic furnishing of Forms 1099-R, 1099-
SA, 1099-Q, 5498, 5498-ESA, and 5498-SA, see Notice 2004-10, 2004-1 C.B. 433.

## Part 5 Additional Instructions for Substitute Forms 1098, 1097-BTC, 1099, 5498, W-2G, and 1042-S

### Section 5.1 - Paper Substitutes for Form 1042-S

#### 5.1.1 Paper Substitutes

Paper substitutes of Copies A, B, C, and D must be identical to the Form 1042-S, Foreign
Person's U.S. Source Income Subject to Withholding, and may be privately printed without prior
approval from the Internal Revenue Service.

Note. Copies A, B, C, and D of Form 1042-S may not contain multiple income types for the same
recipient, that is, multiple rows of the top boxes 1-11 of the form. Only Copy E, retained by the
withholding agent, can contain multiple income types.

#### 5.1.2 Revisions

Form 1042-S is subject to annual review and possible change. Withholding agents and form
suppliers are cautioned against overstocking supplies of the privately printed substitutes.

##### 5.1.3 Obtaining Copies

Copies of the official form for the reporting year may be obtained from most Service offices. The
Service provides only cut sheets of these forms. Continuous fan-fold/pin-fed forms are not
provided.

5.1.4
Instructions For
Withholding Agents

· Only originals forms may be filed with the Service. Photocopies are not acceptable.

· The term "Recipient's U.S. TIN" for an individual means the social security number (SSN), IRS
individual taxpayer identification number (ITIN), or IRS adoption taxpayer identification number
(ATIN), consisting of nine digits separated by hyphens as follows: 000-00-0000. For all other
recipients, the term means employer identification number (EIN) or qualified intermediary em-
ployer identification number (QI-EIN). The QI-EIN designation includes a withholding foreign
partnership employer identification number (WP-EIN) and a withholding foreign trust employer
identification number (WT-EIN). The EIN and QI-EIN consist of nine digits separated by a hyphen
as follows: 00-0000000. The taxpayer identification number (TIN) must be in one of these formats.
Note. Digits must be separated by hyphens on paper statements in the formats listed.

· The term "Recipient's GIIN" means the global intermediary identification number assigned to a
recipient that is a participating FFI (including a reporting Model 2 FFI), registered deemed-
compliant FFI (including a reporting Model 1 FFI), or other entity for chapter 4 purposes. Note. A
GIIN consists of nineteen characters as follows: XXXXXXXXXXXXXXXX (6 characters
followed by a period, 5 characters followed by a period, 2 characters followed by a period, and 3
final characters).

· Withholding agents are requested to type or machine print whenever possible, provide quality data
entries on the forms (that is, use black ink and insert data in the middle of blocks well separated

from other printing and guidelines), and take other measures to guarantee a clear, sharp image.
Withholding agents are not required, however, to acquire special equipment solely for the purpose
of preparing these forms.

· The "AMENDED" and "PRO-RATA BASIS REPORTING" boxes must be printed at the top
center of the form under the title and checked, if applicable.

· Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the
size specified for a single form before they are filed with the Service. The dimensions are found in
Section 5.1.5, following. Computer cards are acceptable provided they meet all requirements
regarding layout, content, and size.

###### 5.1.5 Substitute Form 1042-S Format Requirements

Property

Substitute Form 1042-S Format Requirements

Printing

Privately printed substitute Forms 1042-S must be exact replicas of the official forms with respect to layout and content. The Government Printing Office (GPO) symbol must be deleted. The exact dimensions are found below.

Box Entries

Only one type of income may be represented on Copies A, B, C, and D submitted to the IRS or furnished to recipients. Multiple income types may be shown on Copy E retained by withholding agents. All boxes on Copy A file with the IRS, and Copies B, C, and D furnished to recipients on the substitute form must conform to the official IRS form.

Color and Quality of Ink

All printing must be in high quality non-gloss black ink.

Typography

Type must be substantially identical in size and shape to corresponding type on the official form. All rules on the document are either 1 point (0.015“) or 3 point (0.045"). Vertical rules must be parallel to the left edge of the document; horizontal rules must be parallel to the top edge.

Assembly

If all five parts are present, the parts of the assembly shall be arranged from top to bottom as follows: Copy A (Original) "for Internal Revenue Service," Copies B, C, and D "for Recipient," and Copy E "for Withholding Agent."

Color Quality of Paper

Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound (basis 17 x 22-500), plus or minus 5 percent; or offset book paper, 50 pound (basis 25 x 38- 500). No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleached chemical wood pulp or recycled printed paper. It also must be suitably sized to accept ink without feathering.

Dimensions

· The dimensions for substitute Copies A, B, C, and D must match the IRS Form 1042-S in size and format. · The official form is 8 inches wide x 11 inches deep, exclusive of a 1/2 inch snap stub on the left side of the form. The snap feature is not required on substitutes. · Copies A, B, C, and D must conform to the official IRS form. No size variations are permitted.

Other Copies

Copies B, C, and D must be furnished for the convenience of payees who must send a copy of the form with other federal and state returns they file. Copy E may be used as a withholding agent's record/copy.

### Section 5.2 - OMB Requirements for All Forms in This Revenue Procedure

#### 5.2.1 OMB Requirements

The Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires that:

· OMB approves all IRS tax forms that are subject to the Act. Each IRS form contains (in or near
the upper right corner) the OMB approval number, if any. (The official OMB numbers may be
found on the official IRS printed forms and are also shown on the forms in the exhibits in Part 6.),

· Each IRS form (or its instructions) states:

1\. Why the IRS needs the information,

2\. How it will be used, and

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

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

#### 5.2.2 Substitute FormRequirements

The OMB requirements for substitute IRS forms are:

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

. For Copy A, the OMB number must appear exactly as shown on the official IRS form,

. For any copy other than Copy A, the OMB number must use one of the following formats.

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

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

Caution: These requirements do not apply to substitute Forms 1042-S. See Section 5.1.4, earlier.

All substitute forms must state the Privacy Act and Paperwork Reduction Act Notice as listed in
Section 2.1.9, earlier.

#### 5.2.3 Required Explanation to Users

If no instructions are provided to users of your forms, you must furnish them with the exact text
of the Privacy Act and Paperwork Reduction Act Notice.

##### Section 5.3 - Ordering Forms and Instructions

You can order official IRS Forms (Forms 1096, 1098, 1099, W-2G, 1042S, and most other forms
mentioned in this publication), instructions, and information copies of federal tax material by
going to www.irs.gov/Forms- &- Pubs/Order-Products.

Note. Some forms on the internet are intended as information only and may not be submitted as
an official IRS form (for example, most Forms 1099, W-2, and W-3). Unless otherwise
instructed, Form 1096 and Copy A of 1098 series, 1099 series, 5498 series, and Forms 3921 and
3922 cannot be used for filing with the IRS when printed from a conventional printer. These forms
contain drop-out ink requirements as described in Part 2 of this publication.

Exception. Forms 1098-MA, 1099-CAP, 1099-LTC, 1099-QA, 1099-SA, 3922, 5498-ESA,
5498-QA, 5498-SA. and 1042-S can be printed in black ink as specified in Sections 2.1.1. and
5.1.5, earlier.

# Section 5.4 - Effect on Other Revenue Procedures

## 5.4.1 Other Revenue Procedures

Revenue Procedure 2015-35, 2015-26, I.R.B. 1142, dated June 29, 2015, is superseded by this
revenue procedure.

# Part 6 Exhibits

## Section 6.1 - Exhibits of Forms in the Revenue Procedure

6.1.1 Purpose

Exhibits A through Y illustrate some of the specifications that were discussed earlier in this revenue procedure. The dimensions apply to the actual size forms, but the exhibits have been reduced in size.

Generally, th forms. For example, Exhibit E shows 11.00“ from the top edge to the bottom edge of Form 1098-E and .85" between the bottom rule of the top form and the top rule of the second form on the page. These dimensions apply to all forms that are printed three to a page.

Exhibit B contains the general measurements for forms printed 2-to-a-page. All 2-to-1-page forms, except Form 1099-B, are 4.5" in height within the border lines. Form 1099-B, is 4.67 " in height within the border lines. Exhibit E contains the general measurements for forms printed 3-to-a-page. All 3-to-a- page forms are 2.83" in height within the border lines. The printed area of all forms is 7.3" wide.

All of the exhibits in this publication were updated to include all of the 2016 revisions for those forms that have been revised.

6.1.2 Guidelines

Keep in mind the following guidelines when printing substitute forms.

· Closely follow the specifications to avoid delays in processing the forms.

· Always use the specifications as outlined in this revenue procedure and illustrated in the exhibits.

. Do not add the text line "Do Not Cut or Separate Forms on This Page" to the bottom form. This will be inconsistent with the specifications.

6.2 Exhibits

The following exhibits provide specifications for the forms listed in the

Section 1.1.2. Exhibits A, B, and E contain the general measurements for all of the forms. The remaining exhibits represent the images and may contain unique measurements as required by the form.

1096 Form Annual Summary U.S. Information Department of the Treasury Internal Revenue Service

and Transmittal of Returns

OMB No. 1545-0108 2016

FILER'S name Street address (including room or suite number)

1.33 in

2.14 in

City or town, state or province, country, and ZIP or foreign postal code

7.30 in

For Official

Use Only

Name of person to contact

Telephone number

Email address

Fax number

1 Employer identification number

2 Social security number

3 Total number of fo

rms

4 Federal income tax withheld

5 Total amount reported with this Form 1096

1.40 in

1.20 in

$ 1.40 in

$ 1.90 in

W-2G 32

1097-BTC 50

1098 81

1098-C 78

1098-E 84

1098-Q 74

1098-T 83

1099 80

1099-B 79

1099-C 85

1099-CAP 73

1099-DIV 91

1099-G 86

1099-INT 92

1099-K 10

☐

1099-LTC 93

1099-MISC 95

1099-OID 96

1099-PATR 97

1099-Q 31

1099-QA 1A

1099-R 98

1099 75

1099-SA 94

3921 25

3922 26

5498 28

5498-ESA 72

5498-QA 2A

5498-SA 27

☐

.50 in

Do Not Staple
6969

4.50 in

6 Enter an "X" in only one box below to indicate the type of form being filed.

7 Form 1099-MISC with NEC in box 7, check

☐

.25 in

Return this entire page to the Internal Revenue Service. Photocopies are not acceptable.

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

11.0 in

8.00 in

Signature

Title

Date

Instructions

When to file. File Form 1096 as follows.

Future developments. For the latest information about developments
related to Form 1096, such as legislation enacted after it was
published, go to www.irs.gov/form1096.

· With Forms 1097, 1098, 1099, 3921, 3922, or W-2G, file by
February 28, 2017.

Reminder. The only acceptable method of filing the information
returns listed on this form in box 6 electronically with the Internal
Revenue Service is through the FIRE system. See Pub. 1220.

Caution: File Form 1099-MISC by January 31. 2017. if you are
reporting nonemployee compensation in box 7. Also, check box 7
above

· With Forms 5498, file by May 31, 2017.

Purpose of form. Use this form to transmit paper Forms 1097, 1098.
1099, 3921, 3922, 5498, and W-2G to the Internal Revenue Service.

Where To File

Caution: If you are required to file 250 or more information returns of
any one type, you must file electronically. If you are required to file
electronically but fail to do so, and you do not have an approved
waiver, you may be subject to a penalty. For more information, see
part F in the 2016 General Instructions for Certain Information Returns.
Forms 1099-QA and 5498-QA can be filed on paper only,
regardless of the number of returns.

Send all information returns filed on paper with Form 1096 to the
following.

If your principal business, office
or agency, or legal residence in
the case of an individual, is
located in

Use the following
three-line address

Who must file. The name, address, and TIN of the filer on this form
must be the same as those you enter in the upper left area of Forms
1097, 1098, 1099, 3921, 3922, 5498, or W-2G. A filer is any person or
entity who files any of the forms shown in line 6 above.

Alabama, Arizona, Arkansas,
Connecticut, Delaware, Florida, Georgia,
Kentucky, Louisiana, Maine,
Massachusetts, Mississippi, New
Hampshire, New Jersey, New Mexico,
New York, North Carolina, Ohio,
Pennsylvania, Rhode Island, Texas,
Vermont, Virginia, West Virginia

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301

Enter the filer's name, address (including room, suite, or other unit
number), and TIN in the spaces provided on the form.

For more information and the Privacy Act and Paperwork Reduction Act Notice,
see the 2016 General Instructions for Certain Information Returns.

Cat. No. 144000

Form 1096 (2016)

# Exhibit B

50504 ☐ VOID ☐ CORREOTED 6.25in

FORM 1097-BTC province, country

ISSUER'S ame, ZIP or foreign postal

street address, city or town, state or code, and telephone no.

1 Total

OMB No. 1545-2197

4.50 in 1.33 in

2016

2a Code

Bond Tax

Form 1097-BTC

Credit

2b Unique Identifier

.15 in

FORM 1097-BTC

ISSUER'S federal

RECIPIENT'S federal identification

2.80 in

identification

number

3 Bond type

1.40 in

Copy A

RECIPIENT'S nar

5a January

5b February

For Internal Revenue

3.40 in

5c March

5d April

Service Center

Street address

(including apt. no.)

File with Form 1096.

5e May

5f June

7.30 in

City or town, state

or province, country, and ZIP or foreign postal code

5g July

5h August

For Privacy Act

and Paperwork

5i September

5j October

Reduction Act Notice, see the 2016 General

Form 1097-BTC i

suer is (check one):

- ☐ Issuer of Form 1097

bend or its agent filing 2016 BTC for credit being reported 1 in

5k November

51 December

Instructions for Certain Information Returns.

22 in

6 Comments

☐ An entity of

a person that received or should have received n 1097-BTC and is distributing part or all of that offers

.18 in

a 2016 For

credit to

Form 1097-BTC Cat. No. 54293T www.irs.gov/form1097btc Department of the Treasury - Internal Revenue Service

Do Not Cut

or Separate

Forms on This Page

- Do Not Cut

or Separate Forms on This Page 1 in

5050

☐ VOID ☐ CORRECTED

FORM 1097-BTC province, country,

ISSUER'S name, street address, city or town, state or ZIP or foreign postal code, and telephone no.

1 Total

OMB No. 1545-2197

2016

Bond

2a Code

Form 1097-BTC

Tax Credit

2b Unique Identifier

FORM 1097-BTC

ISSUER'S federal

RECIPIENT'S federal identification

identification number

number

3 Bond type

Copy A

RECIPIENT'S name

5a January

5b February

For

Internal Revenue

5c March

5d April

Service Center

Street address

(including apt. no.)

File with Form 1096.

5e May

5f June

City or town, state

or province, country, and ZIP or foreign postal code

5g July

5h August

For Privacy Act and Paperwork

5i September

5j October

Reduction Act Notice, see the 2016 General

Form 1097-BTC

issuer is (check one):

☐ Issuer of bond or its agent filing 2016 Form 1097-BTC for credit being reported ☐ An entity or a person that received or should have received a 2016 Form 1097-BTC and is distributing part or all of that credit to others

5k November

51 December

Instructions for Certain Information

6 Comments

Returns.

Form 1097-BTC
Cat. No. 54293T

www.irs.gov/form1097btc

Department of the Treasury - Internal Revenue Service

## Exhibit C

RECIPIENT'S/LENDER'S federal identification number

PAYER'S/BORROWER'S taxpayer identification no.

2 Outstanding mortgage principal as of 1/1/2016 $

3 Mortgage origination date

4 Refund of overpaid interest $

5 Mortgage insurance premiums $

8181
☐
VOID
☐
CORRECTED

RECIPIENT'S/LENDER'S name, street address, city or town, state or
province, country, ZIP or foreign postal code, and telephone no.

OMB No. 1545-0901
2016

Mortgage
Interest
Statement

Form 1098

1 Mortgage interest received from payer(s)/borrower(s)
$

Copy A
For
Internal Revenue
Service Center

File with Form 1096.

PAYER'S/BORROWER'S name

6 Points paid on purchase of principal residence
$

Street address (including apt. no.)

7 Is address of property securing mortgage same as
PAYER'S/BORROWER'S address?

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain
Information
Returns.

If Yes, check box
If No, enter address of property securing mortgage below

☒

1.2 in

City or town, state or province, country, and ZIP or foreign postal code

8 Address of property securing mortgage (see instructions)

10 Other

9 If property securing mortgage has no address, provide
description of the property (see instructions)

Account number (see instructions)

Form 1098
Cat. No. 14402K
Do Not Cut or Separate Forms on This Page

www.irs.gov/form1098
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page

8181
☐
VOID
☐
CORRECTED

RECIPIENT'S/LENDER'S name, street address, city or town, state or
province, country, ZIP or foreign postal code, and telephone no.

OMB No. 1545-0901
2016

Mortgage
Interest
Statement

Form 1098

1 Mortgage interest received from payer(s)/borrower(s)
$

Copy A
For
Internal Revenue
Service Center

File with Form 1096.

PAYER'S/BORROWER'S name

6 Points paid on purchase of principal residence
$

Street address (including apt. no.)

7 Is address of property securing mortgage same as
PAYER'S/BORROWER'S address?
If Yes, check box
If No, enter address of property securing mortgage below

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain
Information
Returns.

☐

City or town, state or province, country, and ZIP or foreign postal code

8 Address of property securing mortgage (see instructions)

10 Other

9 If property securing mortgage has no address, provide
description of the property (see instructions)

Account number (see instructions)

Form 1098

Cat. No. 14402K

Department of the Treasury - Internal Revenue Service

RECIPIENT'S/LENDER'S federal identification number

PAYER'S/BORROWER'S taxpayer identification no.

2 Outstanding mortgage principal as of 1/1/2016 $

3 Mortgage origination date

4 Refund of overpaid interest $

5 Mortgage insurance premiums $

# Exhibit D

7878
☐
VOID
☐
CORRECTED

DONEE'S name, street or foreign postal code,

address, city or town, state or province, country, ZIP and telephone no. 7.16 in

1 Date of contribution

OMB No. 1545-1959 2016 Form 1098-C

Contributions of Motor Vehicles, Boats, and Airplanes

2a Odometer mileage

2b Year

2c Make

2d Model

DONEE'S federal ider number

tification

DONOR'S identification number

3 Vehicle or other identification number

2.80 in

DONOR'S name

4a ☐ Conree certifies that vehicle was sold in arm's length transaction to unrelated party

2.45 in

3.40 in

Street address (including

apt. no.)

4b Date of sale

Copy A For

City or town, state or

province, country, and ZIP or foreign postal code

4c Gross proceeds from sale (see instructions) $

5a ☐ Donee certifies improvement:

that vehicle will not be transferred for money, other or significant intervening use

property, or services before completion of material

Internal Revenue Service Center

5b ☐ Donee certifies donee's chari

that vehicle is to be transferred to a needy individual able purpose

for significantly below fair market value in furtherance of

File with Form 1096.

For Privacy Act

5c Donee certifies the

following detailed description of material improvements or significant intervening use and duration of use

and Paperwork Reduction Act

7.30 in

Notice, see the 2016 General Instructions for Certain Information Returns.

6a Did you provide

goods or services in exchange for the vehicle?

Yes ☐ 4No ☒ .55 in

6b Value of goods and $

services provided in exchange for the vehicle

6c Describe the goods consisted solely

and services, if any, that were provided. If this box is checked, donee certifies that the goods and services ofintangible religious benefits ☒

4 -. 05 in

7 Under the law, the

donor may not claim a deduction of more than $500 for this vehicle if this box is checked

☐

Form 1098-C

Cat. No. 39732R

www.irs.gov/form1098c Department of the Treasury

- Internal Revenue Service

8484

33 in .50 in ☐ VOID ☐ CORRECTED

.45 in

province,

RECIPIENT'S/LENDER'S name, country, ZIP or foreigh 3.33 in

street address, city or town, state or postal code, and telephone number 1 in

OMB No. 1545-1576 2016 Form 1098-E

Student Loan Interest Statement

RECIPIEN

T'S federal identificat

on no. BORROWER'S social security number

Studen

oan interest received by lender

Copy A

1.70 in

2.80 in

.25 For

BORROW

ER'S name

2.83 in

in Internal Revenue Service Center File with Form 1096.

3.40 in

Street

address (including apt.

no.)

For Privacy Act and

7.30 in

Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information 1.17 ☐ Returns.

City or

town, state or province

country, and ZIP or foreign postal code

Account

number (see instructions)

2 Check i and/or before

box 1 does not include loan origination fees capitalized interest, and the loan was made eptember 1, 2004

Form 1098-E

Cat. No. 25088U

www.irs.gov/form1098e
Department of the Treasury - Internal Revenue Service 5
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8.00 in

8484

.85 in
☐
VOID
☐
CORRECTED

4.75 in

RECIPIENT'S/LENDER'S name, province, country, ZIP or foreigh

street address, city or town, state or postal code, and telephone number 11.0 in

OMB No. 1545-1576 2016 Form 1098-E

Student Loan Interest Statement

RECIPIENT'S federal identification

no.

BORROWER'S social security number

1 Student loan interest received by lender $

Copy A For

BORROWER'S name

Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

Street address (including apt.

r.o.)

City or town, state or province,

country, and ZIP or foreign postal code

Account number (see instructions)

2 Check if box 1 does not include loan origination fees and/or capitalized interest, and the loan was made before September 1, 2004 ☐

Form 1098-E

Cat. No. 25088U

www.irs.gov/form1098e
Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8484

☐
VOID
☐
CORRECTED

RECIPIENT'S/LENDER'S name, province, country, ZIP or foreigh

street postal

address, city or town, state or code, and telephone number

OMB No. 1545-1576 2016 Form 1098-E

Student Loan Interest Statement

RECIPIENT'S federal identification

no.

BORROWER'S social security number

1 Student loan interest received by lender $

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

BORROWER'S name

Street address (including apt.

r.o.)

City or town, state or province,

country, and ZIP or foreign postal code

Account number (see instructions)

2 Check if box 1 does not include loan origination fees and/or capitalized interest, and the loan was made before September 1, 2004 ☐

Form 1098-E

Cat. No. 25088U

www.irs.gov/form1098e Department of the Treasury - Internal Revenue Service

☐
VOID
☐
CORRECTED

FILER'S name, street address, city, state, ZIP code, and telephone no.

OMB No. 1545-2221

2016 Form 1098-MA

FILER'S federal identification no.

HOMEOWNER'S federal identification no.

1. Total State HFA and homeowner mortgage payments $

HOMEOWNER'S name

2. State HFA mortgage assistance payments $

Street address (including apt. no.) (optional)

3. Homeowner mortgage payments $

City, state, and ZIP code (optional)

Account number (optional)

Mortgage
Assistance
Payments

Copy A
For

Internal Revenue
Service Center
For Privacy Act
and Paperwork
Reduction Act
Notice, see
the 2016 General
Instructions for
Certain Information
Returns.

Form 1098-MA
Cat. No. 58017D

www.irs.gov/form1098ma

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page

☐
VOID
☐
CORRECTED

FILER'S name, street address, city, state, ZIP code, and telephone no.

OMB No. 1545-2221

2016 Form 1098-MA

FILER'S federal identification no.

HOMEOWNER'S federal identification no.

1. Total State HFA and homeowner mortgage payments $

HOMEOWNER'S name

2. State HFA mortgage assistance payments $

Street address (including apt. no.) (optional)

3. Homeowner mortgage payments $

City, state, and ZIP code (optional)

Account number (optional)

Mortgage
Assistance
Payments

Copy A
For
Internal Revenue
Service Center
For Privacy Act
and Paperwork
Reduction Act
Notice, see
the 2016 General
Instructions for
Certain Information
Returns.

Form 1098-MA
Cat. No. 58017D
www.irs.gov/form1098ma
☐
Do Not Cut or Separate Forms on This Page

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page

☐
VOID
☐
CORRECTED

FILER'S name, street address, city, state, ZIP code, and telephone no.

OMB No. 1545-2221

2016 Form 1098-MA

FILER'S federal identification no.

HOMEOWNER'S federal identification no.

1. Total State HFA and homeowner mortgage payments $

HOMEOWNER'S name

2. State HFA mortgage assistance payments $

Street address (including apt. no.) (optional)

3. Homeowner mortgage payments $

City, state, and ZIP code (optional)

Account number (optional)

Mortgage
Assistance
Payments

Copy A
For

Internal Revenue
Service Center

For Privacy Act
and Paperwork
Reduction Act
Notice, see
the 2016 General
Instructions for
Certain Information
Returns.

Form 1098-MA

Cat. No. 58017D

www.irs.gov/form1098ma

Department of the Treasury - Internal Revenue Service

## Exhibit G

7474

☐
VOID
☐
CORRECTED

ISSUER'S name, street address, city or tow
or foreign postal code, and telephone no.

state or province, country, ZIP

ISSUER'S federal identification no

OMB No. 1545-2234
2016

PARTICIPANT'S
identification no.

payer
.50 in

Qualifying
Longevity Annuity
Contract
Information

1.5 in

1a Annuity amount on start date
$

Form 1098-Q

1b Annuity start date

2 Check if
accelerated
☐

art date may be
0.4 in

Copy A
For
Internal Revenue
Service Center

0.6 in

3 Total premiums
$

Ì
0.4 in

4 FMV of QLAC
$

PARTICIPANT'S name

File with Form 1096.

0.5 in

For Privacy Act
and Paperwork
Reduction Act Notice,
see the
2016 General
Instructions for
Certain Information
Returns.

Street address (including apt. no.)

0.6 in

City or town, state or province, country, and ZIP or foreign postal co

[0.3 in

Account number (see instructions)

Plan no.

0.5 in

Name of plan

Plan sponsor's employer
identification no.

0.5 in

Form 1098-Q
Do Not Cut or Separate

Cat. No. 67073Z
Forms on This Page

www.irs.gov/form1098q
Do Not Cut

Department of the Treasury - Internal Revenue Service
or Separate Forms on This Page

5a January $

5b Februar $ 0.34 in

5c March

5d April

5e May $

5f June $

5g July $

5h August $

5i September $

5j October $

5. k November

ddr

51 December

$ 1.0 in

0.4 in

7474
☐
VOID
☐
CORRECTED

ISSUER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

PARTICIPANT'S taxpayer
identification no.

1a Annuity amount on start date
$

1b Annuity start date

2 Check if start date may be
accelerated
☐

4 FMV of QLAC
$

Copy A
For
Internal Revenue
Service Center

File with Form 1096.

For Privacy Act
and Paperwork
Reduction Act Notice,
see the
2016 General
Instructions for
Certain Information
Returns.

Account number (see instructions)

Plan no.

Name of plan

Plan sponsor's employer
identification no.

Form 1098-Q

Cat. No. 67073Z

Department of the Treasury - Internal Revenue Service

ISSUER'S federal identification no

OMB No. 1545-2234
2016

Form 1098-Q

Qualifying
Longevity Annuity
Contract
Information

3 Total premiums
$

PARTICIPANT'S name

Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

5a January $

5b February $

5c March $

5d April

5e May $

5f June $

5g July $

5h August $

i September $

5j October $

5k November $

51 December $

Exhibit H

Form 1098-T

FILER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number

1 Payments received for qualified tuition and related expenses $

OMB No. 1545-1574 2016

Tuition Statement

2 Amounts billed for qualified tuition and related expenses $

Form 1098-T

FILER'S federal identification no.

STUDENT'S taxpayer identification no. ☐

3 Check if you have changed your reporting method for 2016 ☐

Copy A For

STUDENT'S name

4 Adjustments made for a prior year $

5 Scholarships or grants $

Internal Revenue Service Center File with Form 1096.

Street address (including apt. no.)

6 Adjustments to scholarships or grants

7 Check this box if the amount in box 1 or 2 includes amounts for an academic period beginning January - March 2017 ☐

For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

for a prior year $

Service Provider/Acct. No. (see instr.)

8 Check if at least half-time student ☐

9 Check if a graduate student ☐

10 Ins. contract reimb /refund $

8383
☐
VOID
☐
CORRECTED

Fom 1098-T
Cat. No. 25087J

Do Not Cut or Separate Forms on This Page

Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page

www.irs.gov/form1098t

8383
☐
VOID
☐
CORRECTED

Form 1098-T
Cat. No. 25087J
www.irs.gov/form1098t

Do Not Cut or Separate Forms on This Page

Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page

8383
☐
VOID
☐
CORRECTED

Form 1098-T

Cat. No. 25087J

www.irs.gov/form1098t

Department of the Treasury - Internal Revenue Service

FILER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number

1 Payments received for qualified tuition and related expenses $

OMB No. 1545-1574 2016 Tuition Statement Form 1098-T

2 Amounts billed for qualified tuition and related expenses $

FILER'S federal identification no.

STUDENT'S taxpayer identification no. ☐

3 Check if you have changed reporting method for 2016

your ☐

Copy A For

STUDENT'S name

4 Adjustments made for a prior year $

5 Scholarships or grants $

Internal Revenue Service Center File with Form 1096.

Street address (including apt. no.)

6 Adjustments to scholarships or grants for a prior year $

7 Check this box if the amount in box 1 or 2 includes amounts for an academic period beginning January - March 2017 ☐

For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

Service Provider/Acct. No. (see instr.)

8 Check if at least half-time student ☐

9 Check if a graduate student ☐

10 Ins. contract reimb /refund $

FILER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number

1 Payments received for qualified tuition and related expenses $

OMB No. 1545-1574 2016

Tuition Statement

2 Amounts billed for qualified tuition and related expenses $

Form 1098-T

FILER'S federal identification no.

STUDENT'S taxpayer identification no. ☐

3 Check if you have changed your reporting method for 2016 ☐

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

STUDENT'S name

4 Adjustments made for a prior year $

5 Scholarships or grants $

Street address (including apt. no.)

6 Adjustments to scholarships or grants for a prior year $

7 Check this box if the amount in box 1 or 2 includes amounts for an academic period beginning January - March 2017 ☐

City or town, state or province, country, and ZIP or foreign postal code

Service Provider/Acct. No. (see instr.)

8 Check if at least half-time student ☐

9 Check if a graduate student ☐

10 Ins. contract reimb /refund $

## Exhibit I

8080
☐
VOID
☐
CORRECTED

LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

OMB No. 1545-0877 2016 Acquisition or Abandonment of Secured Property Form 1099-A 2 Balance of principal Copy A outstanding $ For Internal Revenue 4 Fair market value of property Service Center File with Form 1096. $ For Privacy Act

1 Date of lender's acquisition or knowledge of abandonment

LENDER'S federal identification number

BORROWER'S identification number

BORROWER'S name

Street address (including apt. no.)

5 If checked, the borrower was personally liable for repayment of the debt ☒

and Paperwork 1.30 Reduction Act Notice, see the

City or town, state or province, country, and ZIP or foreign postal code

6 Description of property

in 2016 General Instructions for Certain Information Returns.

Account number (see instructions)

Form 1099-A
Cat. No. 14412G
www.irs.gov/form1099a
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8080
☐
VOID
☐
CORRECTED

LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

OMB No. 1545-0877 2016 Acquisition or Abandonment of Secured Property Form 1099-A

1 Date of lender's acquisition or knowledge of abandonment

2 Balance of principal outstanding $

Copy A For Internal Revenue

LENDER'S federal identification number

BORROWER'S identification number

BORROWER'S name

4 Fair market value of property $

Service Center File with Form 1096. For Privacy Act

Street address (including apt. no.)

5 If checked, the borrower was personally liable for repayment of the debt ☐

and Paperwork Reduction Act Notice, see the

City or town, state or province, country, and ZIP or foreign postal code

6 Description of property

2016 General Instructions for

Account number (see instructions)

Certain Information Returns.

Form 1099-A

Cat. No. 14412G
www.irs.gov/form1099a
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8080
☐
VOID
☐
CORRECTED

LENDER'S name, street address, city or town, state or province, country, ZIP or
foreign postal code, and telephone no.

OMB No. 1545-0877
2016

Acquisition or
Abandonment of
Secured Property

Form 1099-A

LENDER'S federal identification number

BORROWER'S identification number

BORROWER'S name

1 Date of lender's acquisition or knowledge of abandonment

2 Balance of principal outstanding $

4 Fair market value of property $

Street address (including apt. no.)

5 If checked, the borrower was personally liable for repayment
of the debt
☐

City or town, state or province, country, and ZIP or foreign postal code

6 Description of property

Copy A
For
Internal Revenue
Service Center
File with Form 1096.
For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for

Account number (see instructions)

Certain
Information
Returns.

Form 1099-A
Cat. No. 14412G

www.irs.gov/form1099a

Department of the Treasury - Internal Revenue Service

## Exhibit J

7979
☐
VOID
☐
CORRECTED

PAYER'S name, street address, oity or town, state or province, country, ZIP or foreign postal code, and telephone no.

Applicable check box on Form

8949

OMB No. 1545-0715 2016 Form 1099-B

Proceeds From Broker and Barter Exchange Transactions

1a Description of property (Example 100 sh. XYZ Co.)

1b Date acquired

1c Date sold or disposed

Copy A For Internal Revenue Service Center File with Form 1096.

PAYER'S federal identification number

RECIPIENT'S identification number

1d Proceeds

1e Cost or other basis $

if Accrued market discount $

1g Wash sale loss disallowed $

RECIPIENT'S name

2 Short-term gain or loss ☐ Long-term gain or loss ☐ Ordinary ☐

3 Check if basis reported to IRS ☒

Street address (including apt. no.)

4 Federal income tax withheld $

5 Check if noncovered security ☐

1.27 in For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for

6 Reported to IRS:

7 Check if loss is not allowed based on amount in 1d 2.60 in

City or town, state or province, country, and ZIP or foreign postal code 0.60 in

Gross proceeds ☐ Net proceeds ☒

☒

8 Profit or (loss) realized in 2016 on closed contracts

9 Unrealized profit or (loss) on open contracts - 12/31/2015 4.20 in

Account number (see instructions) 2nd TIN not. ☐

Ourtakt Information Returns.

CUSIP number FATCA filing requirement ☐

10 Unrealized profit or (loss) on open contracts-12/31/2016 $

11 Aggregate profit or (loss) on contracts

14 State name

15 State identification no 16 State tax withheld

12 Check if proceeds from

13 Bartering $ 1.56 in

collectibles ☐

Form 1099-B
Cat. No. 14411V

www.irs.gov/form1099b
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

7979
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

Applicable check box on Form 8949

OMB No. 1545-0715
2016
Form 1099-B

Proceeds From
Broker and
Barter Exchange
Transactions

1a Description of property (Example 100 sh. XYZ Co.)

PAYER'S federal identification number

RECIPIENT'S identification number

RECIPIENT'S name

Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

Account number (see instructions)

CUSIP number

2nd TIN not.
☐
FATCA filing
requirement
☐

14 State name

15 State identification no

16 State tax withheld

1b Date acquired

1c Date sold or disposed

1d Proceeds $

1e Cost or other basis $

If Accrued market discount $

1g Wash sale loss disallowed $

2 Short-term gain or loss ☐ Long-term gain or loss ☐ Ordinary ☐

3 Check if basis reported to IRS ☐

4 Federal income tax withheld $

5 Check if noncovered security ☐

6 Reported to IRS: Gross proceeds ☐ Net proceeds ☐

7 Check if loss is not allowed based on amount in 1d ☐

8 Profit or (loss) realized in 2016 on closed contracts $

9 Unrealized profit or (loss) on open contracts - 12/31/2015 $

10 Unrealized profit or (loss) on open contracts-12/31/2016 $

11 Aggregate profit or (loss) on contracts $

12 Check if proceeds from collectibles ☐

13 Bartering $

Copy A
For
Internal Revenue
Service Center
File with Form 1096.

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for

Certain
Information
Returns.

Form 1099-B

Cat. No. 14411V

www.irs.gov/form1099b

Department of the Treasury - Internal Revenue Service

## Exhibit K

CREDITOR'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Date of identifiable event

OMB No. 1545-1424

Cancellation of Debt

2 Amount of debt discharged $

2016 Form 1099-C

3 Interest if included in box 2 $

CREDITOR'S federal identification number

DEBTOR'S identification number

4 Debt description

Copy A For Internal Revenue Service Center File with Form 1096.

DEBTOR'S name

Street address (including apt. no.)

5 Check here if the debtor was personally liable for repayment of the debt ☒

1.3 For Privacy Act and Paperwork Reduction

City or town, state or province, country, and ZIP or foreign postal code

in Act Notice, see the 2016 General Instructions for

Account number (see instructions)

6 Identifiable event code

7 Fair market value of property $

Certain Information Returns.

CREDITOR'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Date of identifiable event

OMB No. 1545-1424

Cancellation of Debt

2 Amount of debt discharged $

2016 Form 1099-C

3 Interest if included in box 2 $

CREDITOR'S federal identification number

DEBTOR'S identification number

4 Debt description

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

DEBTOR'S name

Street address (including apt. no.)

5 Check here if the debtor was personally liable for repayment of the debt ☐

City or town, state or province, country, and ZIP or foreign postal code

Account number (see instructions)

6 Identifiable event code

7 Fair market value of property $

8585
☐
VOID
☐
CORRECTED

Form 1099-C
Cat. No. 26280W

www.irs.gov/form1099c

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8585

☐
VOID
☐
CORRECTED

Form 1099-C
Cat. No. 26280W
www.irs.gov/form1099c
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8585
☐
VOID
☐
CORRECTED

CREDITOR'S name, street address, city or town, state or province, country,
ZIP or foreign postal code, and telephone no.

1 Date of identifiable event

OMB No. 1545-1424
2016

2 Amount of debt discharged
$

Cancellation
of Debt

3 Interest if included in box 2
$

Form 1099-C

CREDITOR'S federal identification number

DEBTOR'S identification number

4 Debt description

Copy A
For
Internal Revenue
Service Center

DEBTOR'S name

5 Check here if the debtor was personally liable for
repayment of the debt
☐

File with Form 1096.
For Privacy Act and
Paperwork Reduction
Act Notice, see the
2016 General
Instructions for
Certain Information
Returns.

Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

Account number (see instructions)

6 Identifiable event code

7 Fair market value of property
$

Form 1099-C

Cat. No. 26280W

www.irs.gov/form1099c

Department of the Treasury - Internal Revenue Service

## Exhibit L

9191
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1a Total ordinary dividends

OMB No. 1545-0110

2016

Dividends and Distributions

1b Qualified dividends

Form 1099-DIV

a Total capital gain distr. $

2b Unrecap. Sec. 1250 gain $

Copy A For

PAYER'S federal identification number

RECIPIENT'S identification number

2c Section 1202 gain $

2d Collectibles (28%) gain $

Internal Revenue Service Center File with Form 1096.

RECIPIENT'S name

3 Nondividend distributions $

4 Federal income tax withheld $

For Privacy Act and Paperwork Reduction Act Notice, see the

5 Investment expenses $

Street address (including apt. no.)

6 Foreign tax paid

7 Foreign country or U.S. possession

2016 General

City or town, state or province, country, and ZIP or foreign postal code

Instructions for Certain

8 Cash liquidation distributions $

9 Noncash liquidation distributions $

Information Returns.

FATCA filing requirement ☐

10 Exempt-interest dividends $

11 Specified private activity bond interest dividends $

Account number (sée instructions)

2nd TIN not ☐

12 State 13 State identification no

14 State tax withheld $

Form 1099-DIV

www.irs.gov/form1099div

Cat. No. 14415N
Do Not Cut or Separate Forms on This Page

Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page

9191
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1a Total ordinary dividends

OMB No. 1545-0110

2016

Dividends and Distributions

1b Qualified dividends

Form 1099-DIV

2a Total capital gain distr. $

2b Unrecap. Sec. 1250 gain $

Copy A For

PAYER'S federal identification number

RECIPIENT'S identification number

2c Section 1202 gain $

2d Collectibles (28%) gain $

Internal Revenue Service Center File with Form 1096.

RECIPIENT'S name

3 Nondividend distributions $

4 Federal income tax withheld $

For Privacy Act and Paperwork Reduction Act Notice, see the

5 Investment expenses $

Street address (including apt. no.)

6 Foreign tax paid

7 Foreign country or U.S. possession

2016 General Instructions for

City or town, state or province, country, and ZIP or foreign postal code

Certain Information Returns.

8 Cash liquidation distributions $

9 Noncash liquidation distributions $

FATCA filing requirement ☐

10 Exempt-interest dividends $

11 Specified private activity bond interest dividends $

Account number (see instructions)

2nd TIN not. ☐

12 State

13 State identification no

14 State tax withheld

Form 1099-DIV

Cat. No. 14415N

www.irs.gov/form1099div

Department of the Treasury - Internal Revenue Service

Exhibit M

8686
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Unemployment compensation

OMB No. 1545-0120

2016 Form 1099-G

Certain Government Payments

2 State or local income tax refunds, credits, or offsets $

PAYER'S federal identification number

RECIPIENT'S identification number

3 Box 2 amount is for tax year

4 Federal income tax withheld $

Copy A

For

RECIPIENT'S name

5 RTAA payments $

6 Taxable grants $

Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information

7 Agriculture payments

8 Check if box 2 is

Street address (including apt. no.)

trade or business income ☐

9 Market gain $

City or town, state or province, country, and ZIP or foreign postal code

10a State 10b State identification

no.

11 State income tax withheld

Account number (see instructions)

Returns.

Form 1099-G
Cat. No. 14438M
www.irs.gov/form1099g
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8686
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Unemployment compensation

OMB No. 1545-0120

Certain 2016 Government Payments Form 1099-G

2 State or local income tax refunds, credits, or offsets $

PAYER'S federal identification number

RECIPIENT'S identification number

3 Box 2 amount is for tax year

4 Federal income tax withheld $

Copy A For

RECIPIENT'S name

5 RTAA payments $

6 Taxable grants $

Internal Revenue Service Center

7 Agriculture payments

8 Check if box 2 is trade or business income ☐

File with Form 1096.

Street address (including apt. no.)

For Privacy Act

9 Market gain

and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

10a State

10b State identification

no.

11 State income tax withheld

Account number (see instructions)

Form 1099-G
Cat. No. 14438M

www.irs.gov/form1099g
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

8686
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Unemployment compensation

OMB No. 1545-0120

Certain 2016 Government Payments Form 1099-G

2 State or local income tax refunds, credits, or offsets $

PAYER'S federal identification number

RECIPIENT'S identification number

3 Box 2 amount is for tax year

4 Federal income tax withheld $

Copy A For

RECIPIENT'S name

5 RTAA payments $

6 Taxable grants $

Internal Revenue Service Center

7 Agriculture payments

8 Check if box 2 is trade or business income ☐

File with Form 1096.

Street address (including apt. no.)

For Privacy Act

9 Market gain $

and Paperwork Reduction Act

City or town, state or province, country, and ZIP or foreign postal code

Notice, see the 2016 General Instructions for Certain Information

10a State

10b State identification

no.

11 State income tax withheld

Account number (see instructions)

Returns.

Form 1099-G

Cat. No. 14438M

www.irs.gov/form1099g

Department of the Treasury - Internal Revenue Service

Form 1099-INT

9292
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

Payer's RTN (optional)

OMB No. 1545-0112 2016 Form 1099-INT

Interest Income

1 Interest income

2 Early withdrawal penalty

Copy A

PAYER'S federal identification number

RECIPIENT'S identification number

For Internal Revenue Service Center

3 Interest on U.S. Savings Bonds and Treas. obligations

RECIPIENT'S name Street address (including apt. no.)

4 Federal income tax withheld $

5 Investment expenses $

File with Form 1096.

6 Foreign tax paid $

7 Foreign country or U.S. possession

For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

8 Tax-exempt interest

9 Specified private activity bond interest $

City or town, state or province, country, and ZIP or foreign postal code

10 Market discount

11 Bond premium

FATCA filing requirement ☐

12 Bond premium on Treasury obligations $

13 Bond premium on tax-exempt bond $

Account number (see instructions)

2nd TIN not. ☐

14 Tax-exempt and tax credit

15 State

16 State identification no.

17 State tax withheld

bond CUSIP no.

Fom 1099-INT

www.irs.gov/form1099int

Cat. No. 14410K
Do Not Cut or Separate Forms on This Page

Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page

9292

☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

Payer's RTN (optional)

OMB No. 1545-0112

Interest Income

2016

1 Interest income $

Form 1099-INT

2 Early withdrawal penalty

PAYER'S federal identification number

RECIPIENT'S identification number

3 Interest on U.S. Savings Bonds and Treas. obligations
$

RECIPIENT'S name

4 Federal income tax withheld
$

5 Investment expenses
$

6 Foreign tax paid

7 Foreign country or U.S. possession

Street address (including apt. no.)

8 Tax-exempt interest

9 Specified private activity bond
interest
$

City or town, state or province, country, and ZIP or foreign postal code

10 Market discount

11 Bond premium
$

13 Bond premium on tax-exempt bond
$

15 State

16 State identification no.

17 State tax withheld
$
$

Form 1099-INT

Cat. No. 14410K

www.irs.gov/form1099int

Department of the Treasury - Internal Revenue Service

Copy A
For
Internal Revenue
Service Center

File with Form 1096.

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain
Information
Returns.

FATCA filing requirement ☐

Account number (see instructions)

2nd TIN not. ☐

12 Bond premium on Treasury obligations
$

14 Tax-exempt and tax credit
bond CUSIP no.

## Exhibit 0

1010
☐
VOID
☐
CORRECTED

FILER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

FILER'S fe
ral identification no.
0.33 in

OMB No. 1545-2205
2016

Payment Card and
Third Party
Network
Transactions

PAYEE'S taxpayer identification no.

1.40 in

1a Gross amount

payment
card/third party network
transactions

0.50 in

2 Mercha
Form 1099-K

Check to indicate if FILER is a (an):
Payment settlement entity (PSE)
☐
Payment card
1.56 in
0.09 in

category code
0.42 in

Check to indicate transactions
reported are:

I
+
3

1b Card Not Present
transactions
$

Copy A
For
Internal Revenue
Service Center

nent
0.42 in

Electronic Payment Facilitator

(EPF)Other third party
☐
mira party newwork
N
E
1

3
Number of pay
transactions

4 Federal income tax
withheld
$

PAYEE'S name

5a January
$

5b February
$

File with Form 1096.

5c March
$

5d April
$

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain Information
Returns.

Street address (including apt. no.)

0.33 in

5e May
$

5f June
$

5g July
$

5h August
$

City or town, state or province, country, and ZIP or foreign postal code

5i
i September
$

5j
October
$

PSE'S name and telephone number

5k November
$

December
$

Account number (see instructions)

2nd TIN not.
☐

6 State

7
State identification no.

8
State income tax withheld
$
$

Form 1099-K

Cat. No. 54118B
Do Not Cut or Separate Forms on This Page
\-

Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page

www.irs.gov/form1099k

1010
☐
VOID
☐
CORRECTED

Form 1099-K

Cat. No. 54118B

www.irs.gov/form1099k

Department of the Treasury - Internal Revenue Service

FILER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

FILER'S federal identification no.

OMB No. 1545-2205

Payment Card and Third Party

PAYEE'S taxpayer identification no.

2016 Form 1099-K

1a Gross amount of payment card/third party network transactions $

Network Transactions

1b Card Not Present transactions

2 Merchant category code

Copy A

Check to indicate if FILER is a (an):

Check to indicate transactions reported are:

For

Payment settlement entity (PSE) ☐

Payment card ☐ Third party network ☐

3 Number of payment transactions

4 Federal income tax withheld $

Internal Revenue Service Center

Electronic Payment Facilitator (EPF)Other third party ☐

PAYEE'S name

5a January $

5b February $

File with Form 1096.

5c March

5d April $

For Privacy Act and Paperwork Reduction Act

Street address (including apt. no.)

5e May

5f June $

Notice, see the 2016 General Instructions for

5g July

5h August $

Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

5i September

5j October $

PSE'S name and telephone number

5k November $

51 December $

Account number (see instructions)

2nd TIN not ☐

6 State

7 State identification no.

8 State income tax withheld

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Rents

OMB No. 1545-0115

2016

Miscellaneous

2 Royalties

Income Form 1099-MISC

3 Other income $

4 Federal income tax withheld $

Copy A

For

PAYER'S federal identification number

RECIPIENT'S identification number

5 Fishing boat proceeds

6 Medical and health care payments

Internal Revenue Service Center

File with Form 1096.

RECIPIENT'S name

7 Nonemployee compensation

8 Substitute payments in lieu of dividends or interest

For Privacy Act and Paperwork Reduction Act

Street address (including apt. no.)

Notice, see the

50 in City or town, state or province, country, and ZIP or foreign postal code

9 Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale ☐

10 Crop insurance proceeds $

2016 General Instructions for Certain

Information Returns.

Account number (see instructions)

FATCA filing requirement ☐

2nd TIN not. ☐

13 Excess golden parachute payments $

14 Gross proceeds paid to an attomey $

15a Section 409A deferrals

15b Section 409A income

16 State tax withheld

17 State/Payer's state no.

18 State income

9595

☐
VOID
☐
CORRECTED

45 in

Form 1099-MISC
Cat. No. 14425J

www.irs.gov/form1 099misc
Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

1.00 in

9595
☐
VOID
☐
CORRECTED

Form 1099-MISC

Cat. No. 14425J

www.irs.gov/form1099misc

Department of the Treasury - Internal Revenue Service

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Rents

OMB No. 1545-0115

2016

Miscellaneous

2 Royalties

Income Form 1099-MISC

3 Other income $

4 Federal income tax withheld $

Copy A

For

PAYER'S federal identification number

RECIPIENT'S identification number

5 Fishing boat proceeds

6 Medical and health care payments

Internal Revenue

Service Center

File with Form 1096.

RECIPIENT'S name

7 Nonemployee compensation

8 Substitute payments in lieu of dividends or interest

For Privacy Act and Paperwork Reduction Act

Street address (including apt. no.)

Notice, see the

City or town, state or province, country, and ZIP or foreign postal code

9 Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale&gt; ☐

10 Crop insurance proceeds $

2016 General Instructions for Certain

Information Returns.

Account number (see instructions)

FATCA filing requirement ☐

2nd TIN not ☐

13 Excess golden parachute payments $

14 Gross proceeds paid to an attomey $

15a Section 409A deferrals

15b Section 409A income

16 State tax withheld $

17 State/Payer's state no.

18 State income

## Exhibit Q

9696
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Original issue discount for 2016

OMB No. 1545-0117 2016

Original Issue Discount

2 Other periodic interest

Form 1099-OID

3 Early withdrawal penalty

4 Federal income tax withheld

PAYER'S federal identification number

RECIPIENT'S identification number

Copy A

For Internal Revenue Service Center

5 Market discount

6 Acquisition premium

RECIPIENT'S name

7 Description

File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

8 Original issue discount on U.S. Treasury obligations $

FATCA filing

9 Investment expenses

10 Bond premium

requirement ☐

Account number (see instructions)

2nd TIN not. ☐

11 State

12 State identification

no. 13 State tax withheld $

Form 1099-OID
Cat. No. 14421R

www.irs.gov/form1099oid
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

9696
☐
VOID
☐
CORRECTED

PAYER'S federal identification number

RECIPIENT'S identification number

3 Early withdrawal penalty

4 Federal income tax withheld

5 Market discount

6 Acquisition premium

PAYER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

1 Original issue discount for
2016

OMB No. 1545-0117

Original Issue
Discount

2 Other periodic interest

2016

Form 1099-OID

Copy A

For
Internal Revenue
Service Center

RECIPIENT'S name

7 Description

File with Form 1096.

Street address (including apt. no.)

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain
Information
Returns.

City or town, state or province, country, and ZIP or foreign postal code

FATCA filing
requirement
☐

Account number (see instructions)

2nd TIN not.

☐

Form 1099-OID

Cat. No. 14421R

www.irs.gov/form1099oid

Department of the Treasury - Internal Revenue Service

8 Original issue discount on U.S. Treasury obligations $

9 Investment expenses

10 Bond premium

11 State

12 State identification no.

13 State tax withheld

Exhibit R

Form 1099-PATR

9797
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Patronage dividends $

OMB No. 1545-0118 2016 orm 1099-PATR

Taxable Distributions Received From Cooperatives

2 Nonpatronage distributions $

3 Per-unit retain allocations $

PAYER'S federal identification number

RECIPIENT'S identification number

4 Federal income tax withheld $

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

RECIPIENT'S name

5 Redemption of nonqualified notices and retain allocations $

6 Domestic production activities deduction $

Street address (including apt. no.)

7 Investment credit $

City or town, state or province, country, and ZIP or foreign postal code

8 Work opportunity credit $

9 Patron's AMT adjustment $

Account number (see instructions)

2nd TIN not. ☐

10 Other credits and deductions $

Form 1099-PATR
Cat. No. 14435F

www.irs.gov/form1099patr
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

9797
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Patronage dividends $

OMB No. 1545-0118 2016 Form 1099-PATR

Taxable Distributions Received From Cooperatives

2 Nonpatronage distributions $

3 Per-unit retain allocations $

PAYER'S federal identification number

RECIPIENT'S identification number

4 Federal income tax withheld $

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

RECIPIENT'S name

5 Redemption of nonqualified notices and retain allocations $

6 Domestic production activities deduction $

Street address (including apt. no.)

7 Investment credit $

City or town, state or province, country, and ZIP or foreign postal code

8 Work opportunity credit $

9 Patron's AMT adjustment $

Account number (see instructions)

2nd TIN not. ☐

10 Other credits and deductions $

Form 1099-PATR
Cat. No. 14435F

www.irs.gov/form1099patr
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

9797
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Patronage dividends $

OMB No. 1545-0118 Taxable 2016 Distributions Received From Cooperatives Form 1099-PATR

2 Nonpatronage distributions $

3 Per-unit retain allocations $

PAYER'S federal identification number RECIPIENT'S identification number

4 Federal income tax withheld $

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

RECIPIENT'S name

5 Redemption of nonqualified notices and retain allocations $

6 Domestic production activities deduction $

Street address (including apt. no.)

7 Investment credit $

City or town, state or province, country, and ZIP or foreign postal code

8 Work opportunity credit $

9 Patron's AMT adjustment $

Account number (see instructions)

2nd TIN not. ☐

10 Other credits and deductions $

Form 1099-PATR

Cat. No. 14435F

www.irs.gov/form1099patr

Department of the Treasury - Internal Revenue Service

## Exhibit S

3131

☐
VOID
☐
CORRECTED

PAYER'S/TRUSTEE'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

1 Gross distribution

OMB No. 1545-1760

Payments From Qualified

2016

Education

2 Earnings $

Form 1099-Q

Programs (Under Sections 529 and 530)

PAYER'S/TRUSTEE'S federal identification no.

RECIPIENT'S taxpayer identification no

3 Basis $

4 Trustee-to-trustee transfer ☒

Copy A 1.17 in

RECIPIENT'S name

5 Check one: + Qualified tuition program - Private ☒ or state ☒

6 Check if the recipient is not the designated beneficiary 3.30 in ☐

Internal Revenue Service Center File with Form 100%.

Street address (including apt. no.)

· Coverdell ESA ☐

2.55 in

For Privacy Ast and Paperwork

City or town, state or province, country, and ZIP or foreign postal code

Reduction Act Notice, see the 2016 General

Account number (see instructions)

Instructions for Certain Information Returns.

Form 1099-Q

Cat. No. 32223J
www.irs.gov/form1099q
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

3131
☐
VOID
☐
CORRECTED

PAYER'S/TRUSTEE'S name, street address, city or town, state or province, country,
ZIP or foreign postal code, and telephone no.

2 Earnings

Form 1099-Q

PAYER'S/TRUSTEE'S federal identification no.

RECIPIENT'S taxpayer identification no

3 Basis
$

4 Trustee-to-trustee
transfer
☐

RECIPIENT'S name

5 Check one:

\+ Qualified tuition program -
☐
Private

6 Check if the recipient is
not the designated
beneficiary
☐

☐

City or town, state or province, country, and ZIP or foreign postal code

Account number (see instructions)

Copy A
For
Internal Revenue
Service Center
File with Form 1096.
For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain Information
Returns.

Form 1099-Q

Cat. No. 32223J
www.irs.gov/form1099q
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

3131
☐
VOID
☐
CORRECTED

PAYER'S/TRUSTEE'S name, street address, city or town, state or province, country,
ZIP or foreign postal code, and telephone no.

1 Gross distribution

2 Earnings

Form 1099-Q

Payments From
Qualified
Education
Programs
(Under Sections
529 and 530)

PAYER'S/TRUSTEE'S federal identification no.

RECIPIENT'S taxpayer identification no

3 Basis
$

4 Trustee-to-trustee
transfer
☐

RECIPIENT'S name

5 Check one:

\+ Qualified tuition program -
☐
Private
☐
or State
· Coverdell ESA
☐

6 Check if the recipient is
not the designated
beneficiary
☐

Street address (including apt. no.)

City or town, state or province, country, and ZIP or foreign postal code

Account number (see instructions)

Copy A
For
Internal Revenue
Service Center
File with Form 1096.
For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2016 General
Instructions for
Certain Information
Returns.

Form 1099-Q

Cat. No. 32223J

www.irs.gov/form1099q

Department of the Treasury - Internal Revenue Service

1 Gross distribution

OMB No. 1545-1760
2016

Payments From
Qualified
Education
Programs
(Under Sections
529 and 530)

Street address (including apt. no.)

· Coverdell ESA

or State
☐

OMB No. 1545-1760
2016

Exhibit T

Form 1099-R

9898

☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, and ZIP or foreign postal code

1 Gross distribution

OMB No. 1545-0119

Pensions, Annuities, Distributions From

2016

Retirement or

2a Taxable amount

Form 1099-R

Profit-Sharing Plans, IRAS, Insurance

Contracts, etc.

2b Taxable amount Total not determined ☐ distribution ☐

Copy A For

PAYER'S federal identification

RECIPIENT'S identification

3 Capital gain (included

4 Federal income tax withheld

Internal Revenue Service Center

number

in box 2a)

File with Form 1096.

RECIPIENT'S name

5 Employee contributions /Designated Roth contributions or insurance premiums $

6 Net unrealized appreciation in employer's securities $

For Privacy Act and Paperwork Reduction Act Notice, see the

Street address (including apt. no.)

7 Distribution code(s)

IRA/ SEP/ SIMPLE ☐

8 Other $

2016 General Instructions for Certain Information

City or town, state or province, country, and ZIP or foreign postal code

9a Your percentage of total distribution %

9b Total employee contributions $

Returns.

10 Amount allocable to IRR within 5 years

11 1st year of desig. Roth contrib.

FATCA filing requirement

12 State tax withheld $

13 State/Payer's state no.

14 State distribution $

☐

Account number (see instructions)

15 Local tax withheld $

16 Name of locality

17 Local distribution

Form 1099-R
Cat. No. 14436Q
www.irs.gov/form1099r

Do Not Cut or Separate Forms on This Page

Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page

9898
☐
VOID
☐
CORRECTED

PAYER'S name, street address, city or town, state or province, country, and ZIP or foreign postal code

1 Gross distribution

OMB No. 1545-0119 2016 Form 1099-R

Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance

2a Taxable amount

Contracts, etc.

2b Taxable amount Total not determined ☐ distribution ☐

Copy A For

PAYER'S federal identification

RECIPIENT'S identification

3 Capital gain (included

4 Federal income tax withheld

Internal Revenue Service Center

number

in box 2a)

File with Form 1096.

RECIPIENT'S name

5 Employee contributions /Designated Roth contributions or insurance premiums $

6 Net unrealized appreciation in employer's securities $

For Privacy Act and Paperwork Reduction Act Notice, see the

Street address (including apt. no.)

7 Distribution code(s)

IRA/ SEP/ SIMPLE ☐

8 Other $ %

2016 General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

9a Your percentage of total distribution %

9b Total employee contributions $

10 Amount allocable to IRR within 5 years

11 1st year of desig. Roth contrib.

FATCA filing requirement

12 State tax withheld $

13 State/Payer's state no.

14 State distribution $

☐

Account number (see instructions)

15 Local tax withheld $

16 Name of locality

17 Local distribution $

Form 1099-R
Cat. No. 14436Q

www.irs.gov/form1099r

Department of the Treasury - Internal Revenue Service

## Exhibit U

7575

☐
VOID
☐
CORRECTED

FILER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone number

OMB No. 1545-0997
2016

Proceeds From Real
Estate Transactions

Form 1099-S

Cat. No. 64292E
www.irs.gov/form1 099s
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

7575
☐
VOID
☐
CORRECTED

FILER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone number

1 Date of closing

OMB No. 1545-0997
2016

Proceeds From Real
Estate Transactions

2 Gross proceeds

Form 1099-S

Cat. No. 64292E
www.irs.gov/form10998
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

7575
☐
VOID
☐
CORRECTED

FILER'S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone number

1 Date of closing

OMB No. 1545-0997
2016

Proceeds From Real
Estate Transactions

2 Gross proceeds

Form 1099-S

Cat. No. 64292E

www.irs.gov/form1099

Department of the Treasury - Internal Revenue Service

1 Date of closing

2 Gross proceeds

FILER'S federal identification number

TRANSFEROR'S identification number

3 Address or legal description (including city, state, and ZIP code)

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act

TRANSFEROR'S name

Street address (including apt. no.)

and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

4 Check here if the transferor received or will receive property or services as part of the consideration ☐

Account or escrow number (see instructions)

5 Buyer's part of real estate tax $

FILER'S federal identification number

TRANSFEROR'S identification number

3 Address or legal description (including city, state, and ZIP code)

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act

TRANSFEROR'S name

Street address (including apt. no.)

and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

4 Check here if the transferor received or will receive property or services as part of the consideration ☐

Account or escrow number (see instructions)

5 Buyer's part of real estate tax $

FILER'S federal identification number

TRANSFEROR'S identification number

3 Address or legal description (including city, state, and ZIP code)

Copy A For Internal Revenue Service Center File with Form 1096. For Privacy Act

TRANSFEROR'S name

Street address (including apt. no.)

and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

4 Check here if the transferor received or will receive property or services as part of the consideration ☐

Account or escrow number (see instructions)

5 Buyer's part of real estate tax $

## Exhibit V

Form 3921

2525
☐
VOID
☐
CORRECTED

TRANSFEROR'S name, street address, city or town, state or province, country, and ZIP or foreign postal code

1 Date option granted

OMB No. 1545-2129 Form 3921 (Rev. August 2013)

Exercise of an Incentive Stock Option Under Section 422(b)

2 Date option exercised

TRANSFEROR'S federal identification number

EMPLOYEE'S identification number

3 Exercise price per share

4 Fair market value per share on exercise date

Copy A For Internal Revenue Service Center File with Form 1096.

EMPLOYEE'S name

5 No. of shares transferred

Street address (including apt. no.)

6 If other than TRANSFEROR, corporation whose stock is

name, address, and EIN of being transferred

For Privacy Act and Paperwork Reduction Act

City or town, state or province, country, and ZIP or foreign postal code

Notice, see the current version of the General Instructions for Certain Information Returns.

Account number (see instructions)

Form 3921 (Rev. August 2013)

Cat. No. 411790
www.irs.gov/form3921

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

2525
☐
VOID
☐
CORRECTED

TRANSFEROR'S name, street address, city or town, state or province, country, and ZIP or foreign postal code

1 Date option granted

OMB No. 1545-2129 Form 3921 (Rev. August 2013)

Exercise of an Incentive Stock Option Under Section 422(b)

2 Date option exercised

TRANSFEROR'S federal identification number

EMPLOYEE'S identification number

3 Exercise price per share $

4 Fair market value per share on exercise date $

Copy A For Internal Revenue Service Center File with Form 1096.

EMPLOYEE'S name

5 No. of shares transferred

Street address (including apt. no.)

6 If other than TRANSFEROR, name, address, and EIN of corporation whose stock is being transferred

For Privacy Act and Paperwork Reduction Act Notice, see the current version of the General Instructions for Certain Information Returns.

City or town, state or province, country, and ZIP or foreign postal code

Account number (see instructions)

Form 3921 (Rev. August 2013)

Cat. No. 411790

www.irs.gov/form3921

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

2525
☐
VOID
☐
CORRECTED

TRANSFEROR'S name, street address, city or town, state or province, country, and
ZIP or foreign postal code

1 Date option granted

OMB No. 1545-2129

Form 3921 (Rev. August 2013)

2 Date option exercised

3 Exercise price per share $

4 Fair market value per share on exercise date $

5 No. of shares transferred

Exercise of an
Incentive Stock
Option Under
Section 422(b)

TRANSFEROR'S federal identification number

EMPLOYEE'S identification number

EMPLOYEE'S name

Street address (including apt. no.)

6 If other than TRANSFEROR, name, address, and EIN of
corporation whose stock is being transferred

Copy A
For
Internal Revenue
Service Center
File with Form 1096.
For Privacy Act and
Paperwork
Reduction Act
Notice, see the
current version of
the General
Instructions for
Certain Information
Returns.

City or town, state or province, country, and ZIP or foreign postal code

Account number (see instructions)

Form 3921 (Rev. August 2013)

Cat. No. 411790

www.irs.gov/form3921

Department of the Treasury - Internal Revenue Service

Exhibit W

2828
☐
VOID
☐
CORRECTED

TRUSTEE'S or ISSUER'S name, street address, city or town, state or province, country, and ZIP or foreign postal code

1 IRA contributions (other than amounts in boxes 2-4, 8-10, 13a, and 14a) $

OMB No. 1545-0747 2016 Form 5498

IRA Contribution Information

2 Rollover contributions

3 Roth IRA conversion amount

4 Recharacterized contributions $

50 in

Copy A For Internal Revenue Service Center File with Form 1096.

TRUST identification

E'S or ISSUER'S federal no. .66 in

PARTICIPANT'S social security

number

5 Fair market value of account

6 Life insurance cost included in box 1 $

1.70 in

PARTICIPANT'S name

7 IRA ☐ SEP ☐ SIMPLE ☐ Roth IRA ☐

For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

8 SEP contributions $

9 SIMPLE contributie IS $ .33 in

Street address (including apt. no.)

[ 50 in

10 Roth IRA contributions $

11 Check if RMD for 2017 ☐

12a RMD date

12b RMD amount $

City or town, state or province, country, and ZIP or foreign postal code

13a Postponed contribution $

13b Year

13c Code

14a Repayments $

14b Code

Account number (see instructions)

15a FMV of certain specified assets

15b Code(s)

Form 5498
Cat. No. 50010C

www.irs.gov/form5498
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

TRUSTEE'S or ISSUER'S name, street address, city or town, state or province, country, and ZIP or foreign postal code

1 IRA contributions (other than amounts in boxes

OMB No. 1545-0747 2016 IRA Contribution Information Form 5498

2-4, 8-10, 13a, and 14a) $

2 Rollover contributions

3 Roth IRA conversion amount

4 Recharacterized contributions

Copy A

TRUSTEE'S or ISSUER'S federal identification no.

PARTICIPANT'S social security

For Internal Revenue Service Center File with Form 1096.

number

5 Fair market value of account

6 Life insurance cost included in box 1 $

PARTICIPANT'S name

7 IRA ☐ SEP ☐ SIMPLE ☐ Roth IRA ☐

For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

8 SEP contributions $

9 SIMPLE contributions $

Street address (including apt. no.)

10 Roth IRA contributions $

11 Check if RMD for 2017 ☐

12a RMD date

12b RMD amount $

City or town, state or province, country, and ZIP or foreign postal code

13a Postponed contribution $

13b Year

13c Code

14a Repayments

14b Code

Account number (see instructions)

15a FMV of certain specified assets

15b Code(s)

2828
☐
VOID
☐
CORRECTED

Form 5498

Cat. No. 50010C

www.irs.gov/form5498

Department of the Treasury - Internal Revenue Service

PAYER'S name, street address, city or town, province or state, country, and ZIP or foreign postal code

1 Gross winnings $

I 0.50 in

2 Date won

OMB No. 1545-0238 2016

3 Type of wager

4 Federal income tax withheld $

Form W-2G Certain Gambling Winnings

5 Transaction

6 Race 1 0.33 in

7 Winnings from identical wagers $

8 Cashier

PAYER'S federal identification number

PAYER'S telephone n. mber 0.67 in

For Privacy Act and Paperwork Reduction Act

9 Winner's taxpayer identification no.

10 Window

WINNER'S name

1 11 FirstI.D.

0.50 in

12 Second I.D.

Notice, see the 2016 General Instructions for Certain Information Returns.

Street address (including apt. no.)

13 State/Payer's state identification no.

14 State winnings $

City or town, province or state, country, and ZIP or foreign postal code

15 State income tax withheld $

16 Local winnings

File with Form 1096

17 Local income tax withheld $

18 Name of locality

Copy A For Internal Revenue Service Center

3232
☐
VOID
☐
CORRECTED

Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished
correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments.

Signature

Date

Form W-2G

Cat. No. 10138V
www.irs.gov/w2g
Department of the Treasury - Internal Revenue Service
Do Not Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

3232
☐
VOID
☐
CORRECTED

Signature

Date

Form W-2G

Cat. No. 10138V

www.irs.gov/w2g

Department of the Treasury - Internal Revenue Service

PAYER'S name, street address, city or town, province or state, country, and ZIP or foreign postal code

1 Gross winnings $

2 Date won

OMB No. 1545-0238 2016

3 Type of wager

4 Federal income tax withheld $

Form W-2G Certain Gambling

5 Transaction

6 Race

7 Winnings from identical wagers $

8 Cashier

Winnings

PAYER'S federal identification number PAYER'S telephone number

For Privacy Act and Paperwork Reduction Act Notice, see the 2016 General Instructions for Certain Information Returns.

9 Winner's taxpayer identification no.

10 Window

WINNER'S name

11 FirstI.D.

12 Second I.D.

Street address (including apt. no.)

13 State/Payer's state identification no,

14 State winnings $

City or town, province or state, country, and ZIP or foreign postal code

15 State income tax withheld $

16 Local winnings $

File with Form 1096

17 Local income tax withheld $

18 Name of locality

Copy A For Internal Revenue Service Center

Form
1042-S
Forelgn Person's U.S. Source Income Subject to Withholding
Information about Form 1042-S and its separate instructions is at www.irs.gov/form1042s.

2016

OMB No. 1545-0096

Department of the Treasury
Internal Revenue Service
☐
AMENDED

PRO-RATA BASIS REPORTING

Copy A for
Internal Revenue Service

13e Recipient's U.S. TIN, if any

13f Ch. 3 status code

13g Ch. 4 status code

13h Recipient's GIIN

13i Recipient's foreign tax identification
number, if any

13j LOB code

13k Recipient's account number

13| Recipient's date of birth

14a Primary Withholding Agent's Name (if applicable)

14b Primary Withholding Agent's EIN

15a Intermediary or flow-through entity's EIN, if any

15b Ch. 3 status code

15c Ch. 4 status code

0.35 in

15d Intermediary or flow-through entity's name

15e Intermediary or flow-through entity's GIIN

15f Country code

15g Foreign tax identification number, if any

15h Address (number and street)

15i City or town, state or province, country, ZIP or foreign postal code

0.35 in

16a Payer's name

16b Payer's TIN

16c Payer's GIIN

16d Ch. 3 status
code

16e Ch. 4 status
code

7.30 in

13d City or town, state or province,

country, ZIP or foreign postal code

17a State income tax withheld

17b Payer's state tax no.

17c Name of state

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

Cat. No. 11386R

Form 1042-S (2016)

1 Income code

2 Gross income

3 Chapter indicator. Enter "3" or "4"

3a Exemption code 4a Exemption code

3b Tax rate

. 4b Tax rate .

5 Withholding allowance

6 Net income

7b Check if tax not deposited with

7a Federal tax withheld

IRS pursuant to escrow procedure ☐

8 Tax withheld by other agents

9 Tax paid by withholding agent

10 Total withholding credit

11 Amount repaid to recipient

12a Withholding agent's EIN

12b Ch. 3 status code

12c Ch. 4 status code

12d Withholding agent's name

12e Withholding agent's Global Intermediary

Identification Number (GIIN)

12f Country code

12g Foreign

axpayer identification number, if any 4.17 in

12h Address (number and street)

12i City or town, state or province,

country, ZIP or foreign postal code

13a Recipient's name

13b Recipient's country code

13c Address (number and street)

26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of
correct tax liability.
(Also Part I, Sections 72; 1.72-2, 1.72-4.)

### Rev. Proc. 2016-36

#### SECTION 1. PURPOSE

This revenue procedure provides guid-
ance regarding the application of §§ 1.72-
2(b)(2) and 1.72-4(b)(1) of the Income
Tax Regulations to amounts to which § 72
of the Internal Revenue Code applies that
are received from a non-qualified contract.
This revenue procedure does not apply to
amounts to which § 72 applies that are
received under a qualified plan as de-
scribed in § 72(e)(5)(D). See Notice
2016-39, 2016-26 I.R.B. 1068.

#### SECTION 2. BACKGROUND

.01 In general, § 72 provides that dis-
tributions from an annuity, endowment, or
life insurance contract are includible in
gross income except to the extent the dis-
tribution is a non-taxable return of invest-
ment. For purposes of determining the
extent to which a distribution is a non-
taxable return of investment, § 72 distin-
guishes between an "amount received as
an annuity" and an "amount not received
as an annuity."

.02 Notice 2016-39 concludes that pe-
riodic phased retirement benefits under a
qualified defined benefit plan do not qual-
ify as "amounts received as an annuity"
for purposes of § 72 if all the following
conditions apply:

(1) The employee begins to receive a
portion of his or her retirement benefits
when he or she enters phased retirement
and begins part-time employment, and
will not begin receiving his or her entire
plan benefits until he or she ceases em-
ployment and commences full retirement
at an indeterminate future time (for this
purpose, even if a full retirement date is
agreed upon at commencement of phased
retirement, the employee's date of full
retirement is indeterminate as long as it is
possible that date could change);

(2) The plan's obligations to the em-
ployee are based in part on the employee's
continued part-time employment (which

affects both the duration of the payment of
phased retirement benefits and the amount
of additional retirement benefits the em-
ployee accrues during that period of part-
time employment); and

(3) Under the plan terms, the employee
does not have an election as to the form of
the phased retirement benefit to be paid
during phased retirement, but elects a dis-
tribution option at full retirement that ap-
plies to the employee's entire retirement
benefit, including the portion that com-
menced as phased retirement benefits.

.03 Notice 2016-39 provides that be-
cause the benefits are amounts not re-
ceived as an annuity that are paid under a
qualified defined benefit plan, the em-
ployee recovers investment in the contract
under the rules in § 72(e)(8).

#### SECTION 3. APPLICATION

.01 Section 72 differentiates between
amounts received from qualified plans and
amounts received from non-qualified con-
tracts. In particular, the treatment of
amounts that are not received as an annu-
ity differs substantially depending on
whether the amount is received from a
qualified plan or a non-qualified contract.

.02 Section 72(b)(1) provides that
gross income does not include that part of
any amount received as an annuity under
an annuity, endowment, or life insurance
contract that bears the same ratio to that
amount as the investment in the contract
(as of the annuity starting date) bears to
the expected return under the contract. For
purposes of § 72(b), the investment in the
contract as of the annuity starting date is
(1) the aggregate amount of premiums or
other consideration paid for the contract,
minus (2) the aggregate amount received
under the contract before such date, to the
extent that such amount was excludable
from gross income. Section 72(c).

.03 Section 72(b), however, does not
apply in the case of any amount received
as an annuity under a qualified employer
retirement plan described in § 72(d)(1)(G)
(which includes a qualified defined benefit
plan described in § 401(a)). Instead, the
investment in the contract is recovered
under the simplified method of § 72(d)(1).
Under this method, gross income excludes

the portion of a monthly annuity that does
not exceed the amount obtained by divid-
ing (1) the investment in the contract by
(2) the number of anticipated payments
determined under the table in
§ 72(d)(1)(B)(iii).

.04 Section 72(e) applies to any
amount that is received under an annuity,
endowment, or life insurance contract and
is not received as an annuity. Section
72(e)(2)(B) provides that if an amount to
which § 72(e) applies is received before
the annuity starting date, it is included in
gross income to the extent allocable to
income on the contract and is excluded
from gross income to the extent allocable
to the investment in the contract. Section
72(e)(3)(A) provides that for purposes of
section 72(e)(2)(B) an amount is treated
as allocable to income on the contract to
the extent such amount does not exceed
the excess (if any) of the cash value of the
contract (determined without regard to
any surrender charge) immediately before
the amount is received over the invest-
ment in the contract at such time.

.05 Section 72(e)(8), however, pro-
vides special rules for amounts not re-
ceived as an annuity from a trust or con-
tract described in § 72(e)(5)(D) (which
includes a qualified defined benefit plan
described in § 401(a)). Under
§ 72(e)(8)(B) and (C), the amount allo-
cated to the investment in the contract is
the portion of the distribution that bears
the same ratio to the amount of the distri-
bution as the investment in the contract
bears to the vested account balance. Sec-
tion 72(e)(8)(B) provides that this deter-
mination is made at the time of the distri-
bution or at a time prescribed by the
Secretary.

.06 The Internal Revenue Service will
not apply Notice 2016-39 to amounts re-
ceived from a non-qualified contract. Ac-
cordingly, in applying §§ 1.72-2(b)(2)
and 1.72-4(b)(1) to a non-qualified con-
tract, the possibility of further contribu-
tions to the contract or a subsequent elec-
tion under the contract to receive the
benefit payable under the contract in a
different manner generally will not affect
the determination of whether payments
are amounts received as an annuity.

# SECTION 4. EFFECTIVE DATE

This revenue procedure applies to tax-
able years beginning on or after January 1,
2016. Taxpayers, however, may apply this
revenue procedure to taxable years begin-
ning before that date. This revenue proce-
dure does not apply to amounts to which
§ 72 applies that are received under a

qualified plan as described in
§ 72(e)(5)(D). See Notice 2016-39.

## SECTION 5. DRAFTING INFORMATION

The principal author of this revenue
procedure is Alexis A. MacIvor of the

Office of Assistant Chief Counsel (Finan-
cial Institutions and Products). For further
information regarding this revenue proce-
dure, contact Ms. MacIvor at 202-317-
6995 (not a toll-free number).

# Part IV. Items of General Interest

Certain Transfers of
Property to Regulated
Investment Companies
[RICs] and Real Estate
Investment Trusts [REITs]
REG-126452-15

AGENCY: Internal Revenue Service
(IRS), Treasury.

ACTION: Notice of proposed rulemaking
and notice of proposed rulemaking by
cross-reference to temporary regulations.

SUMMARY: In the Rules and Regula-
tions section of this issue of the Federal
Register, the IRS is issuing temporary
regulations effecting the repeal of the
General Utilities doctrine by the Tax Re-
form Act of 1986. The text of those reg-
ulations also serves as part of the text of
these proposed regulations. These pro-
posed regulations would impose corporate
level tax on certain transactions in which
property of a C corporation becomes the
property of a REIT. The proposed regula-
tions also make an amendment not ad-
dressed in the temporary regulations. The
proposed regulations affect RICs, REITs,
C corporations the property of which be-
comes the property of a RIC or a REIT,
and their shareholders.

DATES: Comments and requests for a
public hearing must be received by Au-
gust 8, 2016.

ADDRESSES: Send submissions to: CC:
PA:LPD:PR (REG-126452-15), room
5203, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand-
delivered Monday through Friday be-
tween the hours of 8 a.m. and 4 p.m. to
CC:PA:LPD:PR (REG-126452-15),
Courier's Desk, Internal Revenue Service,
1111 Constitution Avenue, N.W., Wash-
ington, DC, 20224 or sent electronically
via the Federal eRulemaking Portal at
http://www.regulations.gov/ (IRS
REG-126452-15).

FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Austin M. Diamond-Jones,

(202) 317-5085; concerning the submis-
sion of comments or to request a public
hearing, Regina Johnson, (202) 317-6901
(not toll-free numbers).

## SUPPLEMENTARY INFORMATION:

### Background and Explanation of Provisions

Temporary regulations in the Rules
and Regulations section of this issue of
the Bulletin amend the Income Tax Reg-
ulations (26 CFR part 1) relating to sec-
tion 337(d). The temporary regulations
impose corporate level tax on certain
transactions in which property of a C cor-
poration becomes the property of a REIT.
The text of those regulations also serves
as the text of these proposed regulations.
The preamble to the temporary regula-
tions explains the amendments.

The proposed regulations also include
a modification to the definition of con-
verted property that is not addressed in the
temporary regulations. This modification
treats as converted property any property
the basis of which is determined, directly
or indirectly, in whole or in part, by ref-
erence to the basis of property owned by a
C corporation that becomes the property
of a RIC or a REIT. The Treasury Depart-
ment and the IRS believe that such prop-
erty presents similar concerns with regard
to the purposes of General Utilities repeal
as other property of a C corporation that
becomes the property of a RIC or REIT.

### Special Analyses

Certain IRS regulations, including this
one, are exempt from the requirements of
Executive Order 12866, as supplemented
and reaffirmed by Executive Order 13653.
Therefore, a regulatory impact assessment
is not required. Pursuant to the Regulatory
Flexibility Act (5 U.S.C. chapter 6), it is
hereby certified that these proposed regu-
lations would not have a significant eco-
nomic impact on a substantial number of
small entities. This certification is based
on the fact that these proposed regulations
would primarily affect large corporations
with a substantial number of shareholders.
Therefore, a regulatory flexibility analysis
is not required. Pursuant to section

7805(f) of the Code, this regulation has
been submitted to the Chief Counsel for
Advocacy of the Small Business Admin-
istration for comment on its impact on
small business.

### Comments and Requests for Public Hearing

Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are
submitted timely to the IRS as prescribed
in this preamble under the "Addresses"
heading. The Treasury Department and
the IRS request comments on all aspects
of the proposed regulations. In particular,
comments are requested regarding the
scope of the terms predecessors and suc-
cessors. In addition, although related sec-
tion 355 distributions occurring before or
after conversion transactions involving
RICs do not present the same degree of
concern regarding the purposes of Gen-
eral Utilities repeal, comments are re-
quested as to whether the proposed regu-
lations regarding related section 355
distributions should, like the rules of
§ 1.337(d)-7 generally, apply to both con-
version transactions involving RICs and
conversion transactions involving REITs.
All comments will be available at www-
.regulations.gov or upon request. A public
hearing will be scheduled if requested in
writing by any person that timely submits
written comments. If a public hearing is
scheduled, notice of the date, time, and
place of the public hearing will be pub-
lished in the Federal Register.

### Drafting Information

The principal author of these regula-
tions is Austin M. Diamond-Jones of the
Office of Associate Chief Counsel (Cor-
porate). Other personnel from the Trea-
sury Department and the IRS participated
in their development.

* * * * *

### Proposed Amendments to the Regulations

Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:

# PART 1-INCOME TAXES

Paragraph 1. The authority citation for
part 1 is amended by revising the entry for
§ 1.337(d)-7 to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
*****

Section 1.337(d)-7 also issued under
26 U.S.C. 337(d) and 355(h).
*****

Par. 2. Section 1.337(d)-7 is amended
by:

1\. Revising paragraph (a)(1) and add-
ing paragraphs (a)(2)(vi) and (vii).

2\. Revising paragraph (b)(2)(iii).

3\. Adding paragraph (b)(4).

4\. Revising paragraph (c)(1).

5\. Adding paragraph (c)(6).

6\. Adding paragraph (f).

7\. Revising paragraphs (g)(2)(ii) and
(iii).

8\. Adding paragraph (g)(2)(iv).

The additions and revisions read as fol-
lows:

§ 1.337(d)-7 Tax on property owned by
a C corporation that becomes property
of a RIC or REIT.

(a) General rule. (1) [The text of the
proposed amendment to § 1.337(d)-
7(a)(1) is the same as the text of
§ 1.337(d)-7T(a)(1) published elsewhere
in this issue of the Bulletin].

(2) * * *

(vi) [The text of the proposed amend-
ment to § 1.337(d)-7(a)(2)(vi) is the same
as the text of § 1.337(d)-7T(a)(2)(vi) pub-

lished elsewhere in this issue of the Bul-
letin].

(vii) Converted property. The term
converted property means property owned
by a C corporation that becomes the prop-
erty of a RIC or a REIT and any other
property the basis of which is determined,
directly or indirectly, in whole or in part,
by reference to the basis of the property
owned by a C corporation that becomes
the property of a RIC or a REIT.

(b) * * *

(2) * * *

(iii) [The text of the proposed amend-
ment to § 1.337(d)-7(b)(2)(iii) is the same
as the text of § 1.337(d)-7T(b)(2)(iii) pub-
lished elsewhere in this issue of the Bul-
letin].

* * * * *

(4) [The text of the proposed amend-
ment to § 1.337(d)-7(b)(4) is the same as
the text of § 1.337(d)-7T(b)(4) published
elsewhere in this issue of the Bulletin].

* * * * *

(c) Election of deemed sale treatment.
(1) [The text of the proposed amendment
to § 1.337(d)-7(c)(1) is the same as the
text of § 1.337(d)-7T(c)(1) published
elsewhere in this issue of the Bulletin].

* * * * *

(6) [The text of the proposed amend-
ment to § 1.337(d)-7(c)(6) is the same as
the text of § 1.337(d)-7T(c)(6) published
elsewhere in this issue of the Bulletin].
* * * * *

(f) [The text of the proposed amend-
ment to § 1.337(d)-7(f) is the same as the

text of § 1.337(d)-7T(f) published else-
where in this issue of the Bulletin].

(g) * * *

(2) * * *

(ii) Conversion transactions occurring
on or after June 7, 2016. Paragraphs
(a)(1), (a)(2)(vi), (b)(4), (c)(1), (c)(6), and
(f) of this section will apply to conversion
transactions occurring on or after June 7,
2016 and to conversion transactions and
related section 355 distributions for which
the conversion transaction occurs before,
and the related section 355 distribution
occurs on or after, June 7, 2016. For con-
version transactions that occurred on or
after January 2, 2002 and before June 7,
2016, see § 1.337(d)-7 as contained in 26
CFR part 1 in effect on April 1, 2016.

(iii) [The text of the proposed amend-
ment to § 1.337(d)-7(g)(2)(iii) is the same
as the text of § 1.337(d)-7T(g)(2)(iii) pub-
lished elsewhere in this issue of the Bul-
letin].

(iv) Converted property. Paragraph
(a)(2)(vii) of this section applies to con-
version transactions that occur on or after
the date these regulations are published in
the Federal Register as final regulations.

John Dalrymple,
Deputy Commissioner
for Services and Enforcement.

(Filed by the Office of the Federal Register on June 7, 2016,
8:45 a.m., and published in the issue of the Federal Register
for June 8, 2016, 81 F.R. 36816)

# Definition of Terms

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

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

Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.

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

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

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

Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.

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

Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-

stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.

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

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

# Abbreviations

The following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.

A-Individual.

Acq .- Acquiescence.

B-Individual.

BE-Beneficiary.

F.R .- Federal Register.

FUTA-Federal Unemployment Tax Act.

FX-Foreign corporation.

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

GE-Grantee.

GP-General Partner.

GR-Grantor.

COOP-Cooperative.

IC-Insurance Company.

Ct.D .- Court Decision.

I.R.B .- Internal Revenue Bulletin.

CY-County.

LE-Lessee.

D-Decedent.

LP-Limited Partner.

LR-Lessor.

M-Minor.

Nonacq .- Nonacquiescence.

O Organization.

P-Parent Corporation.

PHC-Personal Holding Company.

PO-Possession of the U.S.

PR-Partner.

PRS-Partnership.

PTE-Prohibited Transaction Exemption.
Pub. L .- Public Law.

REIT-Real Estate Investment Trust.

Rev. Proc .- Revenue Procedure.

Rev. Rul .- Revenue Ruling.

S-Subsidiary.

S.P.R .- Statement of Procedural Rules.

Stat .- Statutes at Large.

T-Target Corporation.

T.C .- Tax Court.

T.D .- Treasury Decision.

TFE-Transferee.

TFR-Transferor.

T.I.R .- Technical Information Release.

TP-Taxpayer.
TR-Trust.

TT-Trustee.

U.S.C .- United States Code.

DE-Donee.

Del. Order-Delegation Order.

DISC-Domestic International Sales Corporation.
DR-Donor.

E-Estate.

EE-Employee.

E.O .- Executive Order.

ER-Employer.

ERISA-Employee Retirement Income Security Act.
EX-Executor.

F-Fiduciary.

FC-Foreign Country.

FICA-Federal Insurance Contributions Act.

FISC-Foreign International Sales Company.

FPH-Foreign Personal Holding Company.

BK-Bank.

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

C-Individual.

C.B .- Cumulative Bulletin.

CFR-Code of Federal Regulations.

CI-City.

DC-Dummy Corporation.

X-Corporation.

Y-Corporation.

Z-Corporation.

Numerical Finding List1

Notices :- Continued

Revenue Procedures :- Continued

Bulletins 2016-1 through 2016-26

2016-31, 2016-23 I.R.B. 1025

2016-28, 2016-20 I.R.B. 853

2016-32, 2016-21 I.R.B. 878

2016-29, 2016-21 I.R.B. 880

2016-33, 2016-22 I.R.B. 1013

2016-30, 2016-21 I.R.B. 981

Announcements:

2016-34, 2016-22 I.R.B. 1016

2016-31, 2016-21 I.R.B. 988

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

2016-36, 2016-25 I.R.B. 1029

2016-32, 2016-22 I.R.B. 1019

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

2016-38, 2016-26 I.R.B. 1065

2016-33, 2016-25 I.R.B. 1034

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

2016-39, 2016-26 I.R.B. 1068

2016-34, 2016-26 I.R.B. 1072

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

2016-35, 2016-26 I.R.B. 1109

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

Proposed Regulations:

2016-36, 2016-26 I.R.B. 1160

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

REG-103380-05, 2016-16 I.R.B. 614

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

REG-118867-10, 2016-10 I.R.B. 411

Revenue Rulings:

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

REG-147310-12, 2016-7 I.R.B. 336

2016-1, 2016-2 I.R.B. 262

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

REG-150349-12, 2016-11 I.R.B. 440

2016-2, 2016-4 I.R.B. 284

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

REG-138344-13, 2016-4 I.R.B. 294

2016-3, 2016-3 I.R.B. 282

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

REG-123867-14, 2016-12 I.R.B. 484

2016-4, 2016-6 I.R.B. 299

2016-12, 2016-16 I.R.B. 589

REG-125761-14, 2016-7 I.R.B. 322

2016-5, 2016-8 I.R.B. 344

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

REG-135734-14, 2016-18 I.R.B. 712

2016-6, 2016-14 I.R.B. 519

2016-14, 2016-14 I.R.B. 535

REG-135734-14, 2016-20 I.R.B. 854

2016-7, 2016-10 I.R.B. 391

2016-15, 2016-17 I.R.B. 636

REG-100861-15, 2016-8 I.R.B. 356

2016-8, 2016-11 I.R.B. 426

2016-16, 2016-18 I.R.B. 697

REG-108060-15, 2016-17 I.R.B. 636

2016-9, 2016-14 I.R.B. 530

2016-17, 2016-20 I.R.B. 854

REG-109822-15, 2016-14 I.R.B. 535

2016-10, 2016-15 I.R.B. 545

2016-18, 2016-19 I.R.B. 741

REG-114307-15, 2016-21 I.R.B. 1006

2016-11, 2016-19 I.R.B. 717

2016-19, 2016-19 I.R.B. 741

REG-126452-15, 2016-26 I.R.B. 1162

2016-12, 2016-26 I.R.B. 1046

2016-20, 2016-21 I.R.B. 991

REG-127199-15, 2016-21 I.R.B. 1007

2016-13, 2016-23 I.R.B. 1022

2016-22, 2016-24 I.R.B. 1028

REG-127561-15, 2016-21 I.R.B. 991

2016-15, 2016-26 I.R.B. 1060

REG-127923-15, 2016-12 I.R.B. 473

2016-16, 2016-26 I.R.B. 1062

Notices:

REG-129067-15, 2016-10 I.R.B. 421

2016-1, 2016-2 I.R.B. 265

REG-133673-15, 2016-18 I.R.B. 697

Treasury Decisions:

2016-2, 2016-2 I.R.B. 265

REG-134122-15, 2016-7 I.R.B. 334

2016-3, 2016-3 I.R.B. 278

REG-101701-16, 2016-9 I.R.B. 368

9745, 2016-2 I.R.B. 256 9746, 2016-14 I.R.B. 515

2016-4, 2016-3 I.R.B. 279

Revenue Procedures:

9748, 2016-8 I.R.B. 347

2016-5, 2016-6 I.R.B. 302

9749, 2016-10 I.R.B. 373

2016-6, 2016-4 I.R.B. 287

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

9750, 2016-10 I.R.B. 374

2016-7, 2016-5 I.R.B. 296

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

9751, 2016-10 I.R.B. 379

2016-8, 2016-6 I.R.B. 304

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

9752, 2016-10 I.R.B. 385

2016-9, 2016-6 I.R.B. 306

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

9753, 2016-11 I.R.B. 426

2016-10, 2016-6 I.R.B. 307

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

9754, 2016-11 I.R.B. 432

2016-11, 2016-6 I.R.B. 312

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

9755, 2016-12 I.R.B. 442

2016-12, 2016-6 I.R.B. 312

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

9756, 2016-12 I.R.B. 450

2016-13, 2016-7 I.R.B. 314

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

9757, 2016-12 I.R.B. 462

2016-14, 2016-7 I.R.B. 315

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

9759, 2016-15 I.R.B. 545

2016-15, 2016-13 I.R.B. 486

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

9760, 2016-15 I.R.B. 564

2016-16, 2016-7 I.R.B. 318

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

9761, 2016-20 I.R.B. 743

2016-17, 2016-9 I.R.B. 358

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

9762, 2016-19 I.R.B. 718

2016-18, 2016-9 I.R.B. 359

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

9763, 2016-20 I.R.B. 800

2016-19, 2016-9 I.R.B. 362

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

9764, 2016-20 I.R.B. 803

2016-20, 2016-9 I.R.B. 362

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

9765, 2016-20 I.R.B. 814

2016-21, 2016-12 I.R.B. 465

2016-18, 2016-17 I.R.B. 635

9766, 2016-21 I.R.B. 855

2016-22, 2016-13 I.R.B. 488

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

9767, 2016-21 I.R.B. 857

2016-23, 2016-13 I.R.B. 490

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

9768, 2016-21 I.R.B. 862

2016-24, 2016-13 I.R.B. 492

2016-21, 2016-14 I.R.B. 533

9769, 2016-23 I.R.B. 1020

2016-25, 2016-13 I.R.B. 493

2016-22, 2016-15 I.R.B. 577

9770, 2016-26 I.R.B. 1041

2016-26, 2016-14 I.R.B. 533

2016-23, 2016-16 I.R.B. 581

2016-27, 2016-15 I.R.B. 576

2016-24, 2016-18 I.R.B. 677

2016-28, 2016-15 I.R.B. 576

2016-25, 2016-18 I.R.B. 678

2016-29, 2016-18 I.R.B. 673

2016-26, 2016-22 I.R.B. 1018

2016-30, 2016-18 I.R.B. 676

2016-27, 2016-19 I.R.B. 725

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

Finding List of Current Actions on Previously Published Items1

Notices :- Continued

Revenue Procedures :- Continued

2016-60

2015-10

Bulletins 2016-1 through 2016-26

Modified by

Superseded by

Notice 2016-31, 2016-23 I.R.B. 1025

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

Announcements:

2015-14

Revenue Procedures:

Amplified by

2007-21

Rev. Proc. 2016-29, 2016-21 I.R.B. 880

Modified by

1987-24

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

Superseded by

2015-14

Rev. Proc. 2016-22, 2016-15 I.R.B. 577

Modified by

Notices:

Rev. Proc. 2016-29, 2016-21 I.R.B. 880

2003-36

2001-82

Superseded by

2015-19

Modified by

Rev. Proc. 2016-19, 2016-13 I.R.B. 497

Amplified by

Notice 2016-36, 2016-25 I.R.B. 1029

Rev. Proc. 2016-23, 2016-16 I.R.B. 581

2009-14

2001-82

Modified by

2015-19

Superseded by

Rev. Proc. 2016-30, 2016-21 I.R.B. 981

Modified by

Notice 2016-36, 2016-25 I.R.B. 1029

Rev. Proc. 2016-23, 2016-16 I.R.B. 581

2009-14

2005-50

Superseded by

2015-22

Modified by

Rev. Proc. 2016-30, 2016-21 I.R.B. 981

Superseded by

Notice 2016-2, 2016-2 I.R.B. 265

Rev. Proc. 2016-8, 2016-01 I.R.B. 243

2014-56

2007-59

Superseded by

2015-34

Revoked by

Rev. Proc. 2016-20, 2016-13 I.R.B. 499

Modified by

Notice 2016-16, 2016-7 I.R.B. 318

Rev. Proc. 2016-27, 2016-19 I.R.B. 725

2014-64

2013-29

Supplemented by

2015-34

Clarified by

Rev. Proc. 2016-18, 2016-17 I.R.B. 635

Supplemented by Rev. Proc. 2016-27, 2016-19 I.R.B. 725

Notice 2016-31, 2016-23 I.R.B. 1025

2015-1

2015-50

2013-46

Superseded by

Supplemented by

Clarified by

Rev. Proc. 2016-2, 2016-1 I.R.B. 1

Rev. Proc. 2016-18, 2016-17 I.R.B. 635

Notice 2016-31, 2016-23 I.R.B. 1025

2015-2

2015-53

2013-54

Superseded by

Modified by

Supplemented by

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

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

Notice 2016-17, 2016-9 I.R.B. 358

2015-3

2016-1

2014-79

Superseded by

Modified by

Superseded by

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

Rev. Proc. 2016-30, 2016-21 I.R.B. 981

Notice 2016-1, 2016-2 I.R.B. 265

2015-5

Revenue Rulings:

2015-25

Superseded by

Modified by

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

2005-3

Notice 2016-31, 2016-23 I.R.B. 1025

2015-7

Modified by

Rev. Rul. 2016-8, 2016-11 I.R.B. 426

2015-52

Superseded by

Supplemented by

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

2008-15

Notice 2016-17, 2016-9 I.R.B. 358

2015-8

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

2015-87

Superseded by

Supplemented by

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

Notice 2016-17, 2016-9 I.R.B. 358

2015-9

2016-29

Superseded by

Modified by

Rev. Proc. 2016-5, 2016-1 I.R.B. 239

Notice 2016-36, 2016-25 I.R.B. 1029

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

# Internal Revenue Service Washington, DC 20224

Official Business
Penalty for Private Use, $300

# INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.

## We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
(www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.

Internal Revenue Bulletin 2016-26 (PDF rendition): IRS Notices

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