Internal Revenue Bulletin 2011-25 (PDF rendition): IRS Revenue Procedures

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

Bulletin No. 201
1-25
June 20, 2011
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Notice 2011–45, page 886.
This notice informs tax practitioners that until all of the condi-
tions for becoming a registered tax return preparer are able to
be satisfied, no individual may represent that he or she is a reg-
istered tax return preparer. This notice also informs tax practi-
tioners that registered tax return preparers will be required to
add a specified statement to all mediums of paid advertising
and broadcasting.
Rev. Proc. 2011–35, page 890.
This procedure provides survey guidelines and estimation pro-
cedures to be used for determining basis in stock acquired in
transferred basis transactions. This procedure updates and
expands Rev. Proc. 81–70, while at the same time it obso-
letes Rev. Proc. 81–70 and Notice 2009–4 with respect to
transferred basis transactions completed on or after June 20,
2011. Rev. Proc. 81–70 and Notice 2009–4 obsoleted in
part.
EXEMPT ORGANIZATIONS
Rev. Proc. 2011–33, page 887.
This procedure provides the extent to which grantors and con-
tributors (including donors) may rely on the listing of an organ-
ization in Publication 78,Cumulative List of Organizations De-
scribed in Section 170(c) of the Internal Revenue Code,oron
the IRS Business Master File (“BMF”) extract, for purposes of
deducting contributions under section 170 of the Code and
making grants under sections 4942, 4945, and 4966. In addi-
tion, this revenue procedure clarifies that the Internal Revenue
Service (“IRS”) may give notice of revocation, including revo-
cations under section 6033(j), through an appropriate public
announcement, such as publication in the Internal Revenue Bul-
letinorontheIRS’swebsiteatIRS.gov. Finally, this revenue
procedure advises that the IRS will no longer publish a paper
version of Publication 78. Rev. Proc. 82–39 and 2009–32
modified and superseded.
Announcement 2011–35, page 916.
The Internal Revenue Service willpublish a list of organizations
that have had their federal tax-exempt status automatically re-
voked for failing to file an annual return or notice for three con-
secutive years onIRS.gov.
EMPLOYMENT TAX
Notice 2011–35, page 879.
The Affordable Care Act added new sections 4375, 4376,
4377, and 9511 to the Code. This notice requests public com-
ments on the implementation of these new sections, which im-
pose fees to be paid by issuers of health insurance policies and
self-insured health plan sponsors. Comments are requested by
September 6, 2011.
EXCISE TAX
Notice 2011–35, page 879.
The Affordable Care Act added new sections 4375, 4376,
4377, and 9511 to the Code. This notice requests public com-
ments on the implementation of these new sections, which im-
pose fees to be paid by issuers of health insurance policies and
self-insured health plan sponsors. Comments are requested by
September 6, 2011.
(Continued on the next page)
Finding Lists begin on page ii.

Notice 2011–46, page 887.
This notice defers the date to June 10, 2011, by which a cov-
ered entity must submit an error report and defers the date to
August 24, 2011, by which the IRS will send covered entities
their 2011 final fee calculation and, if applicable, notification
of the final determination with respect to error reports. Notice
2011–9 and Rev. Proc. 2011–24 modified.
ADMINISTRATIVE
Notice 2011–43, page 882.
This notice provides transitional relief for certain small orga-
nizations that have lost their tax-exempt status because they
failed to file an annual electronic notice for taxable years be-
ginning in 2007, 2008 and 2009. This notice describes what
criteria a small organization must satisfy to qualify for the transi-
tional relief and explains how qualifying organizations can apply
for reinstatement of tax-exempt status and request retroactive
reinstatement.
Notice 2011–44, page 883.
This notice provides guidance with respect to applying for re-
instatement of tax-exempt status and requesting retroactive
reinstatement and establishing reasonable cause under sec-
tion 6033(j)(2) and (3) of the Code for an organization that has
had its tax-exempt status automatically revoked under section
6033(j)(1).
Notice 2011–45, page 886.
This notice informs tax practitioners that until all of the condi-
tions for becoming a registered tax return preparer are able to
be satisfied, no individual may represent that he or she is a reg-
istered tax return preparer. This notice also informs tax practi-
tioners that registered tax return preparers will be required to
add a specified statement to all mediums of paid advertising
and broadcasting.
Rev. Proc. 2011–36, page 915.
This procedure provides a reduced user fee for applications
for reinstatement of tax-exempt status filed by small organiza-
tion that lost their tax-exempt status under section 6033(j) and
qualify for the transitional relief described in Notice 2011–43.
Rev. Proc. 2011–8 modified.
June 20, 20112011–25 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2011–25 I.R.B.June 20, 2011

June 20, 20112011–25 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 351.—
Transfer
to Corporatio
nControlled
by Transferor
26 CFR 1.351–3: Basis to transferee corporations.
This revenue procedure provides rules for satisfy-
ing the reporting requirements of § 1.351–3 for tax-
payers acquiring stock in transferred basis transac-
tions. See Rev. Proc. 2011-35, page 890, Section
5.
Section 358.— Basis to
Distributees
26 CFR 1.358–6: Stock basis in certain triangular
reorganizations.
This revenue procedure provides survey guide-
lines and estimation procedures to be used for
determining basis in stock acquired in certain trian-
gular reorganizations. See Rev. Proc. 2011-35, page
890.
Section 362.—
Basis to
Corporations
26 CFR 1.362–1
: Basis to corporations.
This revenue p
rocedure provides survey guide-
lines and esti
mation procedures to be used for
determining
basis in stock acquired in transferred
basis transa
ctions. See Rev. Proc. 2011-35, page
890.
Section 368.—Definitions
Relating to Corporate
Reorganizations
26 CFR 1.368–3: Basis to transferee corporations.
This revenue procedure provides rules for satisfy-
ing the reporting requirements of § 1.368–3 for tax-
payers acquiring stock in transferred basis transac-
tions. See Rev. Proc. 2011-35, page 890, Section
5.
Section 4376.—Self-
Insured Health Plans
The Affordable Care Act added new sections 4375,
4376, 4377, and 9511 to the Code. This notice re-
quests public
comments on the implementation of
these new sect
ions, which impose fees to be paid by
issuers of hea
lth insurance policies and self-insured
health plan sp
onsors. See Notice 2011-35, page 879.
Section 4377.—Definitions
and Special Rules
The Affordable Care Act added new sections 4375,
4376, 4377, and 9511 to the Code. This notice re-
quests public comments on the implementation of
these new sections, which impose fees to be paid by
issuers of health insurance policies and self-insured
health plans sponsors. See Notice 2011-35, page 879.
Section 9511.—Patient-
Centered Outcomes
Research Trust Fund
The Affordable Care Act added new sections 4375,
4376, 4377, and 9511 to the Code. This notice re-
quests public comments on the implementation of
these new sections, which impose fees to be paid by
issuers of health insurance policies and self-insured
health plans sponsors. See Notice 2011-35, page 879.
2011–25 I.R.B.878June 20, 2011

Part III. Administrative, Procedural, and Miscellaneous
Request for Comments on
Funding of Patient-Centered
Outcomes Research Through
Fees Payable by Issuers of
Health Insurance Policies
and Self-Insured Health Plan
Sponsors
Notice 2011–35
Section 1. PURPOSE
This notice requests public comments
on the implementation of provisions of
the Patient Protection and Affordable Care
Act, P.L. 111–148, (Affordable Care Act)
to fund comparative clinical effectiveness
research relating to patient-centered out-
comes. The Affordable Care Act includes
provisions that promote research to eval-
uate and compare health outcomes and the
clinical effectiveness,risks, and benefits of
medical treatments, services, procedures,
drugs, and other strategies or items that
treat, manage, diagnose, or prevent illness
or injury.
As required by the Affordable Care
Act, a nonprofit corporation — the Pa-
tient-Centered Outcomes Research In-
stitute (Institute) — was established to
assist patients, clinicians, purchasers, and
policy-makers in making informed health
decisions by advancingcomparative clini-
cal effectiveness research. The Affordable
Care Act provides that the Institute will
not be an agency or establishment of the
United States Government, and will be
funded by a Patient-Centered Outcomes
Research Trust Fund (Trust Fund). The
Trust Fund, in turn, is to be funded in part
by fees to be paid by issuers of health
insurance policies and sponsors of self-in-
sured health plans.
The Department of the Treasury (Trea-
sury) and the Internal Revenue Service
(Service) intend to publish proposed regu-
lations implementing and providing guid-
ance on the statutory requirements appli-
cable to issuers and plan sponsors that pay
those fees. To inform the development of
the proposed regulations, this notice in-
vites comments on how the fees should be
determined and paid, including comments
on several possible rules, safe harbors, and
issues outlined below. Accordingly, while
this notice does not provide guidance, it
describes potential guidance that Treasury
and the Service expect to propose to imple-
ment the new fees and seeks comments on
this potential guidance.
Section 2. BACKGROUND
.01 Section 6301 of the Affordable
CareActaddednew§9511totheIn-
ternal Revenue Code (Code) to establish
the Patient-Centered Outcomes Research
Trust Fund as a funding source for the
Patient-Centered Outcomes Research In-
stitute. The Trust Fund, in turn, will be
funded in part through fees payable by
issuers of health insurance policies and
sponsors of self-insured health plans. Sec-
tion 6301 of the Affordable Care Act also
added new §§ 4375, 4376, and 4377 to
the Code to impose those fees on what the
statute refers to as “specified health insur-
ance policies” and “applicable self-insured
health plans” based on the average number
of lives covered under the policy or plan.
The fees are effective for policy and plan
years ending after September 30, 2012.
Fees on Specified Health Insurance
Policies Under § 4375
.02 Section 4375(a) imposes a fee
on each specified health insurance pol-
icy for each policy year ending after
September 30, 2012. Therefore, the first
policy year to which the fee on a specified
health insurance policy applies would
be a policy year that ends on October 1,
2012. The fee does not apply to policy
years ending after September 30, 2019.
Accordingly, if the policy year were the
calendar year, the fee would apply to
calendar policy years 2012 through 2018.
.03 The fee under § 4375 is equal to
two dollars (one dollar in the case of policy
years ending before October 1, 2013) mul-
tiplied by the average number of lives cov-
ered under the policy. Under § 4375(b), the
feemustbepaidbytheissuerofthepolicy.
.04 Section 4375(c) defines “specified
health insurance policy” as any accident or
health insurance policy (including a policy
under a group health plan) issued with re-
spect to individuals residing in the United
States. The term also includes an arrange-
ment under which fixed payments or pre-
miums are received as consideration for a
person’s agreement to provide or arrange
for the provision of accident or health cov-
erage to residents of the United States, re-
gardless of how such coverage is provided
or arranged to be provided. In such a case,
the person agreeing to provide or arrange
for the provision of coverage is treated as
the issuer. “Specified health insurance pol-
icy” does not include any insurance if sub-
stantially all of its coverage is of excepted
benefits described in § 9832(c).
.05 Section 4375(d) provides that, for
any policy year ending in any fiscal year
beginning after September 30, 2014, the
dollar amount in effect under § 4375(a) is
equal to the sum of (1) the dollar amount
for policy years ending in the previous
fiscal year, plus (2) the amount equal to
the product of (A) the dollar amount for
policy years ending in the previous fiscal
year, and (B) the percentage increase in the
projectedper capitaamount of National
Health Expenditures,as most recently pub-
lished by the Secretary before the begin-
ning of the fiscal year. For purposes of
§ 4375, the term “fiscal year” means the
Federal government’s fiscal year, which
runs from October 1 to September 30. Be-
cause Treasury does not publish the Na-
tional Health Expenditures, Treasury and
the Service intend that the proposed regu-
lations will refer to the National Health Ex-
penditures published by the Department of
Health and Human Services.
Fees on Applicable Self-Insured Health
Plans Under § 4376
.06 Section 4376(a) imposes a fee on
any applicable self-insured health plan for
each plan year ending after September 30,
2012. Therefore, the first plan year to
which the fee on an applicable self-insured
health plan applies would be a plan year
that ends on October 1, 2012. The fee
does not apply to plan years ending after
September 30, 2019. Accordingly, if the
plan year were the calendar year, the fee
would apply to calendar plan years 2012
through 2018. The fee is equal to two dol-
lars (one dollar in the case of plan years
ending before October 1, 2013) multiplied
by the average number of lives covered un-
der the plan.
June 20, 20118792011–25 I.R.B.

.07 Under § 4376(b)(1), the fee must
be paid by the plan sponsor. Section
4376(b)(2) defines “plan sponsor” as the
employer in the case of a plan established
or maintained by a single employer or the
employee organization in the case of a plan
established or maintained by an employee
organization. Section 4376(b)(2) provides
that, in the case of (1) a plan established
or maintained by two or more employers
or jointly by one or more employers and
one or more employee organizations, (2)
a multiple employer welfare arrangement,
or (3) a voluntary employees’ beneficiary
association described in § 501(c)(9), the
“plan sponsor” is the association, commit-
tee, joint board of trustees, or other similar
group of representatives of the parties that
establish or maintain the plan, and, in the
case of a plan established or maintained
by a cooperative or association described
in § 4376(c)(2)(F), the “plan sponsor” is
the cooperative or association.
.08 Section 4376(c) defines “applicable
self-insured health plan” as any plan for
providing accident orhealth coverage if
any portion of the coverage is provided
other than through an insurance policy, and
the plan is established or maintained (1) by
one or more employers for the benefit of
their employees or former employees, (2)
by one or more employee organizations
for the benefit of their members or for-
mer members, (3) jointly by one or more
employers and one or more employee or-
ganizations for the benefit of employees or
former employees, (4) by a voluntary em-
ployees’ beneficiary association described
in § 501(c)(9), (5) byany organization
described in § 501(c)(6), or (6) in the case
of a plan not previously described, by a
multiple employer welfare arrangement
(as defined in § 3(40) of the Employee
Retirement Income Security Act of 1974
(ERISA)), a rural electric cooperative (as
defined in § 3(40)(B)(iv) of ERISA), or
a rural telephone cooperative association
(as defined in § 3(40)(B)(v) of ERISA).
.09 Section 4376(d) provides that, for
any plan year ending in any fiscal year
beginning after September 30, 2014, the
dollar amount in effect under § 4376(a) is
equal to the sum of (1) that dollar amount
for plan years ending in the previous fiscal
year, plus (2) an amount equal to (A) that
dollar amount for plan years ending in the
previous fiscal year, multiplied by (B) the
percentage increase in the projectedper
capitaamount of National Health Expen-
ditures, as most recently published by the
Secretary before the beginning of the fiscal
year. For purposes of § 4376, the term “fis-
cal year” means the Federal government’s
fiscal year, which, as noted, runs from Oc-
tober 1 to September 30. As noted, be-
cause Treasury does not publish National
Health Expenditures, Treasury and the Ser-
vice intend that the proposed regulations
will refer to the National Health Expen-
ditures published by the Department of
Health and Human Services.
Definitions and Special Rules Under
§ 4377 for the Fees Imposed Under
§§ 4375 and 4376
.10 Section 4377(a)(1) defines “acci-
dent and health coverage” for purposes of
§§ 4375 and 4376 as any coverage that,
if provided by an insurance policy, would
cause the policy to be aspecified health in-
surance policy (as defined in § 4375(c)).
.11 Section 4377(a)(2) defines “insur-
ance policy” as any policy or other instru-
ment whereby a contract of insurance is is-
sued, renewed, or extended.
.12 Section 4377(a)(3) defines “United
States” to include any possession of the
United States. Section 4377(d) pro-
vides that no amount collected under
§§ 4375–4377 is to be covered over to any
possession of the United States.
.13 Governmental entities that are is-
suers of specified health insurance policies
or plan sponsors of applicable self-insured
plans are generally subject to the fees im-
posed under §§ 4375 and 4376. However,
§ 4377(b) provides that no such fee will
be imposed on any covered life under an
“exempt governmental program.” Section
4377(b) defines “exempt governmental
program” as (A) any insurance program
established under title XVIII of the So-
cial Security Act (42 U.S.C. 1395et seq.)
(Medicare), (B) the medical assistance
program established by title XIX of the
Social Security Act (42 U.S.C. 1396et
seq.) (Medicaid) or title XXI of the Social
Security Act (42 U.S.C. 1397aaet seq.)
(Children’s Health Insurance Program),
(C) any program established by Federal
law for providing medical care (other than
through insurance policies) to individuals
(or their spouses and dependents) by rea-
son of the individuals being members of
the Armed Forces of the United States or
veterans, and (D) any program established
by Federal law for providing medical care
(other than through insurance policies) to
members of Indian tribes (as defined in
§ 4(d) of the Indian Health Care Improve-
ment Act, 25 U.S.C. 1603).
.14 Section 4377(c) provides that, for
purposes of subtitle F of the Code, the fees
imposed by §§ 4375 and 4376 are treated
as if they were taxes.
Data Reported on the NAIC Supplemental
Health Care Exhibit
.15 State insurance departments cur-
rently require issuers operating in their
jurisdictions to provide a primary financial
report referred to as an Annual Statement.
The format of the Annual Statement and
the rules to be followed in preparing it are
established by the National Association of
Insurance Commissioners (NAIC). After
the Affordable Care Act was enacted, the
NAIC developed a Supplemental Health
Care Exhibit (Exhibit) for the purpose of
collecting comprehensive major medical
data by company, state, and market. Infor-
mation collected on the Exhibit includes
the number of individual policies (for
individual and association business) or
certificates issued toindividuals covered
under a group policy in force as of the
end of the reporting period and the total
number of lives insured, including depen-
dents, under individual policies and group
certificates as of the end of the reporting
period. Many issuers of specified health
insurance policies are required by one or
more state insurance commissioners to file
the Exhibit.
Section 3. REQUEST FOR COMMENTS
Treasury and the Service anticipate
proposing regulations under §§ 4375 and
4376. To inform the development of the
proposed regulations, Treasury and the
Service request comments on the follow-
ing topics:
Average Number of Lives Covered Under
the Policy Under § 4375
.01 The fee imposed by § 4375(a) on
specified health insurance policies is based
on the “average number of lives covered
under the policy.” Treasury and the Ser-
vice invite comments on reasonable meth-
ods an issuer may use to determine the av-
2011–25 I.R.B.880June 20, 2011

erage number of lives covered under the
policy for purposes of § 4375. Under
any such method other than the safe har-
bor described below, it is contemplated
that issuers that are required to file the
NAIC Supplemental Health Care Exhibit
would be expected to be able to account for
any differences between the numbers com-
puted under the alternative method and the
data reported on the Exhibit.
.02 Treasury and the Service also invite
comments on whether guidance should
provide a safe harbor for issuers that are
required to report the number of lives cov-
ered on the NAIC Supplemental Health
Care Exhibit. For example, a safe harbor
might provide that the Service will not
challenge an issuer’s calculation of the fee
based on the number of lives reported on
the most recently filed Exhibit, or based
on the average of the number of lives re-
ported on the most recently filed Exhibit
and the Exhibit filed one year before the
most recently filed Exhibit. Comments
are requested on the scope and operation
of a safe harbor rule, including comments
on the circumstances, if any, under which
amounts so determined may be too unrep-
resentative to form a sufficiently reliable
basis for calculating the fee.
Applicable Self-Insured Health Plan
Under § 4376
.03 Under § 4376(c), an applicable
self-insured health plan is a plan that
provides “accident and health coverage”
any portion of which is provided other
than through an insurance policy and that
meets certain other conditions. Section
4377(a)(1) defines “accident and health
coverage” as any coverage that, if pro-
vided by an insurance policy, would cause
the policy to be a specified health insur-
ance policy (as defined in § 4375(c)).
Section 4375(c)(2) provides that a spec-
ified health insurance policy does not
include any insurance if substantially all
of its coverage is of excepted benefits
described in § 9832(c). Benefits pro-
vided under a health flexible spending
arrangement (health FSA), as described
in § 106(c)(2), are excepted benefits for
purposes of § 9832(c) if:
1. Other group health plan coverage, not
limited to excepted benefits, is made
available to the eligible class of par-
ticipants; and
2. The arrangement is structured so that
the maximum benefit payable to any
eligible participant cannot exceed two
times the participant’s salary reduc-
tion election (or, if greater, $500 plus
the amount of the salary reduction
election).
See § 54.9831–1(c)(3)(v) of the regu-
lations relating to group health plans.
Because coverage under a health FSA
that satisfies these requirements is treated
as excepted benefits for purposes of
§ 9832(c), such coverage would not, if
provided by an insurance policy, cause the
policy to be a “specified insurance policy,”
as defined in § 4375(c). Accordingly, the
coverage under a health FSA that satisfies
these requirements is not “accident and
health coverage” within the meaning of
§ 4377(a)(1), and such a health FSA is not
an “applicable self-insured health plan”
within the meaning of § 4376(c).
With respect to health FSAs that do not
satisfy the requirements to be treated as an
excepted benefit, comments are invited on
the variations that exist and which types
would be excluded from the definition of
an applicable self-insured health plan un-
der § 4376 because they provide a type
of coverage that, if provided by an insur-
ance policy, would not be treated as a spec-
ified health insurance policy (as defined in
§ 4375(c)).
.04 Treasury and the Service in-
vite comments on the type or types
of health reimbursement arrange-
ments (HRAs), as described in Notice
2002–45, 2002–2 C.B. 93, that would be
excluded from the definition of applicable
self-insured health plan under § 4376
because they provide a type of coverage
that, if provided by an insurance policy,
would not cause the policy to be treated
as a specified health insurance policy (as
defined in § 4375(c)). If so, what would be
the basis for reaching such a conclusion?
For example, to what extent does a
limitation on annual contributions, or the
availability of other employer-sponsored
health coverage affect the determination
as to whether an HRA provides coverage
that, if provided by an insurance policy,
would not cause the policy to be treated
as a specified health insurance policy?
Comments are also invited on whether
there are types of HRAs that should be
treated as applicable self-insured health
plans under § 4376.
Average Number of Lives Covered Per
Applicable Self-Insured Health Plan
Under § 4376
.05 The fee imposed by § 4376(a) on
applicable self-insured health plans is
based on the “average number of lives
covered under the plan.” Treasury and the
Service invite comments on how future
guidance could reduce administrative bur-
den by providing for reasonable methods
to determine the average number of lives
covered under an applicable self-insured
plan; on whether guidance should provide
a safe harbor that would permit sponsors
of applicable self-insured health plans to
compute the average number of lives cov-
ered using a formula based on the number
of participants and one or more additional
factors that account for the number of
dependents without requiring that actual
dependents covered under the plan be
counted; and on formulas and factors that
could be used to determine the number
of dependents for applicable self-insured
health plans.
Administration of the Fees
.06 Under § 4377(c), the fees im-
posed by §§ 4375 and 4376 are treated
as taxes for purposes of subtitle F of the
Code (§§ 6001–7874). Thus, references
in subtitle F to “taxes imposed by this
title,” “internal revenue tax,” and simi-
lar references are also references to the
fees imposed by §§ 4375 and 4376. For
example, the fees imposed by §§ 4375
and 4376 are assessed (§ 6201), collected
(§ 6301), enforced (§ 7602), and subject to
confidentiality rules (§ 6103), in the same
manner as taxes imposed by other sections
of the Code.
.07 The deficiency procedures of
§§ 6211–6216 apply only to income, es-
tate, and gift taxes imposed by subtitles A
and B and excise taxes imposed by chap-
ters 41, 42, 43, and 44. The fees imposed
by §§ 4375 and 4376 are imposed by
chapter 34 and, therefore, the deficiency
procedures of §§ 6211–6216 do not apply
to those fees.
.08 Future proposed regulations could
require each issuer and plan sponsor to re-
port and pay the §§ 4375 and 4376 fees an-
nually as opposed to quarterly. Proposed
June 20, 20118812011–25 I.R.B.

regulations might also require the report-
ing and payment to occur on the same cal-
endar date regardless of the “policy year”
or “plan year” of any individual issuer or
plan sponsor. Comments are invited on
this approach and possible alternatives.
Other Issues That Should be Addressed
in Guidance
.09 In addition to comments on the top-
ics described above, comments are invited
on the following specific issues:
1. What transition rules, if any, would
be appropriate for the first “policy
year” or first “plan year” ending after
September 30, 2012? For example,
would any of the information neces-
sary to determine the average number
of lives covered be unavailable for
the first year for which the fee is in
effect?
2. Is guidance needed concerning the
definition of “policy year” or “plan
year” for purposes of §§ 4375 and
4376? If so, how should these terms
be defined?
3. Are there circumstances under which
an issuer or plan sponsor might not
know whether a covered individual
resides in the United States? If so,
how should those circumstances be
addressed? Is guidance needed on the
application of §§ 4375 and 4376 to
plans that cover expatriates?
4. Should future guidance permit all em-
ployers treated as a single employer
under § 414 to be treated as a single
employer for purposes of § 4376(b)?
If so, under what conditions?
5. In the case of the fee imposed on self-
insured health plans, what guidance
is needed concerning the ability of a
third-party administrator to act on be-
half of a plan sponsor in complying
with the § 4376 fee requirements?
.10 Comments will be considered if
submitted in writing by September 6,
2011. All comments will be available for
public inspection and copying. Comments
may be submitted in one of three ways:
1. By mail to CC:PA:LPD:PR (Notice
2011–35), Room 5203, Internal Rev-
enue Service, P.O. Box 7604, Ben
Franklin Station, Washington, DC
20044.
2. Electronically toNotice.Com-
ments@irscounsel.treas.gov.Please
include “Notice 2011–35” in the sub-
ject line of any electronic communi-
cations.
3. By hand-delivery Monday through
Friday between the hours of 8 a.m.
and 4 p.m. to CC:PA:LPD:PR (Notice
2011–35), Courier’s Desk, Internal
Revenue Service, 1111 Constitution
Ave., NW, Washington, DC 20224.
DRAFTING INFORMATION
The principal author of this notice is
Rebecca L. Baxter of the Office of Asso-
ciate Chief Counsel (Financial Institutions
& Products). For further information re-
garding this notice, contact Ms. Baxter at
(202) 622–7117 (not a toll-free call).
Transitional Relief Under
Internal Revenue Code
§ 6033(j) for Small
Organizations
Notice 2011–43
This notice provides transitional relief
for certain small organizations that have
lost their tax-exempt status because they
failed to file a required annual electronic
notice (Form 990–N e-Postcard) for tax-
able years beginning in 2007, 2008 and
2009. A small organization — that is, one
that normally has annual gross receipts of
not more than $50,000 in its most recently
completed taxable year — that qualifies
for the transitional relief under this notice
and applies for reinstatement of tax-ex-
empt status by December 31, 2012, will
be treated by the Internal Revenue Service
(“IRS”) as having established reasonable
cause for its filing failures and its tax-ex-
empt status will be reinstated retroactive to
the date it was automatically revoked.
Organizations not described in this no-
tice should consult Notice 2011–44, in this
Bulletin, for guidance on how to apply for
reinstatement of tax-exempt status and re-
quest retroactive reinstatement.
BACKGROUND
The Pension Protection Act of 2006,
Pub. L. No. 109–280, 120 Stat. 780,
§ 1223 (2006), added sections 6033(i) and
(j) to the Internal Revenue Code (“Code”),
both of which became effective for tax-
able years beginning after 2006. Section
6033(i) requires tax-exempt organizations
excepted from filing annual information
returns because they normally have annual
gross receipts of not more than $25,000
(increased to normally not more than
$50,000 for taxable years beginning on or
after January 1, 2010) to annually file a
Form 990–N e-Postcard. Section 6033(j)
automatically revokes the tax-exempt sta-
tus of any organization that fails to file
a required annual return or Form 990–N
e-Postcard for three consecutive years.
In order to obtain reinstatement of its
tax-exempt status, an organization that has
had its tax-exempt status automatically re-
voked under section 6033(j) must apply
for reinstatement with the IRS, even if it
was not originally required to submit such
an application. I.R.C. § 6033(j)(2). If
an organization applying for reinstatement
of tax-exempt status can show reasonable
cause for its consecutive filing failures, the
organization’s tax-exempt status may, in
the discretion of the Secretary, be rein-
stated retroactive to the date of the auto-
matic revocation. I.R.C. § 6033(j)(3).
ELIGIBILITY FOR TRANSITIONAL
RELIEF
The IRS recognizes that many small
organizations that have lost their tax-ex-
empt status because they failed to file a
Form 990–N e-Postcard for their 2007,
2008, and 2009 taxable years were never
required to file an annual return or notice
prior to their 2007 taxable year. The IRS
also recognizes that many small organiza-
tions are operated by volunteers and may
face unique challenges in meeting federal
tax obligations. Accordingly, the IRS will
treat a small organization (one that nor-
mally has annual gross receipts of not more
than $50,000 in its most recently com-
pleted taxable year) as having established
reasonable cause for failing to file a Form
990–N e-Postcard or an annual return for
its taxable years beginning in 2007, 2008,
and 2009 if it meets each of the following
criteria:
•The organization was not required to
file annual information returns (such
as Form 990,Return of Organiza-
tion Exempt from Income Taxor Form
2011–25 I.R.B.882June 20, 2011

990–EZ,Short Form Return of Organ-
ization Exempt from Income Tax)for
taxable years beginning before 2007.
•The organization was eligible in each
of its taxable years beginning in 2007,
2008, and 2009 to file a Form 990–N
e-Postcard (rather than an annual in-
formation return). Generally organi-
zations (other than private foundations
and most section 509(a)(3) support-
ing organizations) with annual gross
receipts that were normally not more
than $25,000 in such taxable years
would have been eligible to file a Form
990–N e-Postcard.
•On or before December 31, 2012, the
organization submits to the IRS a prop-
erly completed and executed applica-
tion for reinstatement of tax-exempt
status.
An organization’s annual gross receipts
are “normally not more than” $25,000 or
$50,000 in a taxable year if its average an-
nual gross receipts for that taxable year
and the two taxable years immediately pre-
ceding it are not more than $25,000 or
$50,000, respectively.SeeRev. Proc.
2011–15, 2011–3 I.R.B. 322, section 4.
The IRS will reinstate the tax-exempt
status of a small organization that meets
the above criteria retroactive to the date it
was revoked.
APPLICATION FOR REINSTATEMENT
OF TAX-EXEMPT STATUS
An organization seeking reinstate-
ment of tax-exempt status under section
6033(j)(2) must use the same forms that
are filed by all other applicants for tax-ex-
emption. Thus, an organization seeking
reinstatement of tax-exempt status under
section 501(c)(3) must submit Form 1023,
Application for Recognition of Exemption
Under Section 501(c)(3) of the Internal
Revenue Code. Most other organizations
seeking reinstatement of tax-exempt sta-
tus must submitForm 1024, Application
for Recognition of Exemption Under Sec-
tion 501(a). Any organization that seeks
reinstatement of tax-exempt status must
submit the appropriate application re-
gardless of whether the organization was
originally required to apply with the IRS
for recognition of tax-exemption.
A small organization seeking the tran-
sitional relief described in this notice must
write “Notice 2011–43” on the top of the
form it uses to apply for reinstatement of
tax-exempt status and on the envelope.
A small organization seeking the tran-
sitional relief described in this notice must
also attach to its application for reinstate-
ment of tax-exempt status the following
statement:
[Name of Organization] was not re-
quired to file annual information re-
turns for taxable years beginning before
2007; was eligible in each of its tax-
able years beginning in 2007, 2008 and
2009 to file a Form 990–N e-Postcard;
and had annual gross receipts of nor-
mally not more than $25,000 in each
of its taxable years beginning in 2007,
2008 and 2009.
Small organizations that are eligible for
the transitional relief described in this no-
tice are also eligible for a reduced user
fee of $100 for the application of rein-
statement of tax-exempt status.SeeRev.
Proc. 2011–36, this Bulletin,modifying
Rev. Proc. 2011–8, 2011–1 I.R.B. 237,
section 6.07. For information on where
to mail the application for reinstatement of
tax-exempt status, see the Instructions for
Form 1023 or Form 1024 (whichever is ap-
plicable).
SUBSEQUENT AUTOMATIC
REVOCATIONS
An organization whose tax-exempt sta-
tus has been automatically revoked and re-
instated may have its tax-exempt status au-
tomatically revoked a second time under
section 6033(j)(1) only if it fails to file re-
turns or notices for another three consecu-
tive taxable years, beginning with the tax-
able year the IRS approves its application
for reinstatement of tax-exempt status. For
example, if an organization reporting on
a calendar year basis has its tax-exempt
status automatically revoked for failing to
file required returns or notices for 2007,
2008, and 2009 and receives a determina-
tion letter recognizing the reinstatement of
its tax-exempt status dated September 1,
2011, the organization’s tax-exempt status
will not be automatically revoked a second
time for failing to timely file a return or no-
tice for 2008, 2009, and 2010. However,
the organization’s tax-exempt status will
be automatically revoked a second time if
the organization fails to timely file a return
or notice for 2011, 2012, and 2013.
DRAFTING INFORMATION
The principal authors of this no-
tice are Monice Rosenbaum and
Preston Quesenberry of the Office
of Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities) and Matthew Giuliano of the Tax
Exempt and Government Entities Division
of the IRS. However, other personnel
from the IRS and Treasury Department
participated in developing this notice.
For further information regarding this
notice, contact Ms. Rosenbaum at (202)
622–6070, Mr. Quesenberry at (202)
622–1124, or Mr. Giuliano at (202)
283–8917 (not toll-free numbers).
Application for Reinstatement
and Retroactive
Reinstatement for Reasonable
Cause Under Internal Revenue
Code § 6033(j)
Notice 2011–44
SECTION 1. PURPOSE
This notice provides guidance with
respect to applying for reinstatement
of tax-exempt status and requesting
retroactive reinstatement under sections
6033(j)(2) and (3) of the Internal Revenue
Code (“Code”) for an organization that has
had its tax-exempt status automatically
revoked under section 6033(j)(1) of the
Code. The Treasury Department (“Trea-
sury”) and the Internal Revenue Service
(“IRS”) intend to issue regulations under
section 6033(j) that will prescribe rules
relating to the application for reinstate-
ment of tax-exempt status under section
6033(j)(2) and the request for retroactive
reinstatement under section 6033(j)(3). To
assist in the drafting of these regulations,
Treasury and the IRS solicit comments on
the issues addressed in this notice.
In this Bulletin, the IRS has also pub-
lished Notice 2011–43, which provides
transitional relief for certain small organi-
zations (those that normally have annual
gross receipts of not more than $50,000
in their most recently completed taxable
year) that have lost their tax-exempt status
because they failed to file an annual elec-
tronic notice for taxable years beginning
June 20, 20118832011–25 I.R.B.

in 2007, 2008, and 2009. Notice 2011–43
sets forth the criteria for qualifying for
the transitional relief and instructions on
how qualifying organizations can apply
for reinstatement of tax-exempt status
retroactive to the date such status was au-
tomatically revoked.
SECTION 2. BACKGROUND
In general, section 6033(a)(1) requires
an organization exempt from taxation
under section 501(a) to file an annual
information return, such as a Form 990,
Return of Organization Exempt from In-
come Tax, a Form 990–EZ,Short Form
Return of Organization Exempt from In-
come Tax, or a Form 990–PF,Return of
Private Foundation or Section 4947(a)(1)
Nonexempt Charitable Trust Treated as a
Private Foundation. Several categories of
tax-exempt organizations, including most
organizations (other than private foun-
dations or section 509(a)(3) supporting
organizations) whose annual gross re-
ceipts are normally not more than $50,000
($25,000 for taxable years beginning be-
fore January 1, 2010), are not required
to file an annual information return.See
I.R.C. § 6033(a)(3); Rev. Proc. 2011–15,
2011–3 I.R.B. 322.
The Pension Protection Act of 2006,
Pub. L. No.109–280, 120 Stat. 780,
§ 1223 (2006) (“PPA”), added sections
6033(i) and (j) to the Code, both of which
became effective for taxable years begin-
ning after 2006. Section 6033(i) added
an annual notification requirement for
tax-exempt organizations that, pursuant
to section 6033(a)(3)(A)(ii) or (a)(3)(B),
are not required to file an annual infor-
mation return under section 6033(a)(1)
because their gross receipts fall below
certain thresholds. An organization sat-
isfies the annual notification requirement
under section 6033(i) by filing an annual
electronic notice, also known as a Form
990–N e-Postcard. The annual notifica-
tion requirement is also deemed satisfied
if an organization files a complete Form
990 or Form 990–EZ.SeeTreas. Reg.
§ 1.6033–6(c)(4).
Section 6033(j)(1) automatically re-
vokes the tax-exempt status of any organ-
ization described insection 6033(a)(1)
that fails to file a required annual return
for three consecutive years or any organ-
ization described in section 6033(i) that
fails to file an annual return or notice for
three consecutive years. Revocation under
section 6033(j)(1) is effective on and after
the date set by the Secretary for the filing
of the third annual return or notice.
Section 6033(j)(1) also requires the
Secretary to publishand maintain a list
of all organizations that have had their
tax-exempt statuses revoked under section
6033(j)(1) (“revocation list”). The IRS is
publishing such a revocation list on the
IRS website (http://www.irs.gov), which it
will update monthly. The IRS is also mail-
ing a letter to the last known address of
each organization on the revocation list to
notify the organization that its tax-exempt
status has been revoked under section
6033(j)(1) (“IRS revocation letter”).
Section 7428(b)(4), as added by the
PPA, provides that an organization may
not bring a declaratory judgment action
challenging automatic revocation under
section 6033(j)(1).
Section 6033(j)(2) provides that any or-
ganization that has had its tax-exempt sta-
tus automatically revoked under section
6033(j)(1) must apply with the IRS in or-
der to obtain reinstatement of its tax-ex-
empt status, regardless of whether the or-
ganization was originally required to ap-
ply for recognition of its tax exemption. If
the application for reinstatement of tax-ex-
empt status is approved, the effective date
of the organization’s reinstated tax-exempt
status generally will be the date the organ-
ization filed its application for reinstate-
ment. However, section 6033(j)(3) pro-
vides that if, upon application for reinstate-
ment, an organization “can show to the sat-
isfaction of the Secretary evidence of rea-
sonable cause for the failure described in
[section 6033(j)(1)], the organization’s ex-
empt status may, in the discretion of the
Secretary, be reinstated effective from the
date of the revocation.”
SECTION 3. EFFECTIVE DATE OF
AUTOMATIC REVOCATION
For taxable years beginning after De-
cember 31, 2006, the tax-exempt status of
any organization that fails to file an annual
information return required under section
6033(a)(1) or an electronic notice required
under section 6033(i) for three consecu-
tive years is automatically revoked pur-
suant to section 6033(j)(1) on and after the
date set by regulation for the filing of the
third annual return or notice, without re-
gard to any extension of time for filing.
Sections 1.6033–2(e) and 1.6033–6(f) of
the Treasury Regulations generally require
annual returns and notices, respectively, to
be filed on or before the 15th day of the
fifth month following the close of the pe-
riod for which the return or notice is re-
quired to be filed. When the filing dead-
line falls on a Saturday, Sunday, or legal
holiday the deadline may be timely satis-
fied if the filing is made on the next busi-
ness day that is not a Saturday, Sunday, or
a legal holiday.SeeI.R.C. § 7503. Thus,
for example, in the case of an organization
reporting on a calendar-year basis that did
not file a required annual return or notice
for 2007, 2008, or 2009, the revocation un-
der section 6033(j)(1) would be effective
as of May 17, 2010, given that May 15,
2010 fell on a Saturday.
SECTION 4. APPLICATION FOR
REINSTATEMENT OF TAX-EXEMPT
STATUS
An organization seeking reinstatement
of its tax-exempt status under section
6033(j)(2) must apply using the same
forms that are filed by all other applicants
for tax exemption. Thus, an organization
seeking reinstatement of its tax-exempt
status under section 501(c)(3) must submit
Form 1023,Application for Recognition
of Exemption Under Section 501(c)(3) of
the Internal Revenue Code.Most other
organizations seeking reinstatement of
tax-exempt status must submit Form 1024,
Application for Recognition of Exemption
Under Section 501(a).Any organization
that seeks reinstatement of its tax-exempt
status must submit the appropriate applica-
tion regardless of whether the organization
was originally required to apply with the
IRS for recognition of tax exemption. For
example, if the tax-exempt status of a sub-
ordinate organization included in a group
exemption letter is automatically revoked
under section 6033(j)(1), the subordinate
organization must submit an application
for reinstatement of its tax-exempt sta-
tus on its own behalf. In addition, all
organizations seeking reinstatement of
tax-exempt statusmust pay the appro-
priate user fee.SeeRev. Proc. 2011–8,
2011–1 I.R.B. 237, section 6.07 or its suc-
cessor. (Small tax-exempt organizations
described in Notice 2011–43 are eligible
2011–25 I.R.B.884June 20, 2011

for a reduced user fee described in Rev.
Proc. 2011–36, this Bulletin.)
To facilitate processing of applications
for reinstatement of tax-exempt status,
organizations should write “automatically
revoked” on the top of the application
form and on the envelope. For informa-
tion on where to mail the application for
reinstatement of tax-exempt status, see the
Instructions for Form 1023 or Form 1024
(whichever is applicable).
SECTION 5. RETROACTIVE
REINSTATEMENT
.01 Request for Retroactive Reinstate-
ment
An organization (other than a small
organization that qualifies for the transi-
tional relief described in Notice 2011–43)
seeking to have its tax-exempt status rein-
stated effective from the date of automatic
revocation pursuant to section 6033(j)(3)
must submit a request for retroactive
reinstatement with its application for re-
instatement of tax-exempt status. The
request for retroactive reinstatement must
include the following:
(1) A written statement setting forth all
of the facts that support its claim for rea-
sonable cause for failing to file a required
return or notice in each of the three consec-
utive years and over the entire consecutive
three-year period, including a detailed de-
scription of all the facts and circumstances
that led to each failure and the continuous
failure, the discovery of the failures, and
the steps taken to avoid or mitigate the fail-
ures;
(2) A written statement describing the
safeguards the organization has put into
place to ensure that the organization will
not fail to file returns or notices in the fu-
ture;
(3) Evidence to substantiate all material
aspects of the written statements described
in paragraphs (1) and (2) of this section;
(4) Properly completed and executed
paper annual information returns (Forms
990, Forms 990–EZ, or Forms 990–PF,
whichever is applicable) for all taxable
years during and after the consecutive
three-year period that the organization
was required, but failed, to file an annual
information return;
(5) Properly completed and executed
Forms 990–EZ for all taxable years during
and after the consecutive three-year period
that the organization was eligible to file a
Form 990–N e-Postcard but failed to file
either a Form 990–N e-Postcard or an an-
nual information return; and
(6) An original declaration, dated and
signed under penalties of perjury by an of-
ficer, director, trustee, or other official who
is authorized to sign for the organization in
the following form:
I,
(Name),
(Title) declare, under penalties of per-
jury, that I am authorized to sign this
request for retroactive reinstatement on
behalf of [Name of Organization], and
I further declare that I have examined
this request for retroactive reinstate-
ment, including the written explanation
of all the facts and information pertain-
ing to the claim for reasonable cause
and the evidence to substantiate the
claim for reasonable cause, and to the
best of my knowledge and belief, this
request is true, correct, and complete.
.02 Reasonable Cause Standard
Because the failure described in section
6033(j)(1) involvesa repeated and contin-
uous failure to file annual returns or no-
tices for a consecutive three-year period,
an organization seeking retroactive rein-
statement under section 6033(j)(3) must
demonstrate that it had reasonable cause
forfailingtofileareturnornoticenotonly
for each of the three years but also over the
entire three-year period. Thus, for exam-
ple, showing reasonable cause for failing
to file a required return or notice for the
first of the three years by the date it was
due would be insufficient; an organization
also would have to show reasonable cause
for not filing that return or notice at any
later time during the three-year period and
for not filing required returns or notices for
the second and third years of the three-year
period.
In order to establish reasonable cause
under section 6033(j)(3), an organization
requesting retroactive reinstatement must
provide evidence that it exercised ordinary
business care and prudence in determining
and attempting to comply with its report-
ing requirements under section 6033 for
each of the three years and over the en-
tire three-year period, but was neverthe-
less unable to file the required returns or
notices for three consecutive years. In de-
termining whether the organization estab-
lishes reasonable cause, the IRS will take
into account all pertinent facts and circum-
stances, including, but not limited to, the
following factors that weigh in favor of
finding reasonable cause (with no single
factor being either necessary or determina-
tive):
(1) The organization’s failure was due
to its reasonable, good faith reliance on er-
roneous written information from the IRS,
stating that the organization was not re-
quired to file a return or notice under sec-
tion 6033, provided the IRS was made
aware of all relevant facts.
(2) The failure to file the returns or no-
tices arose from events beyond the organi-
zation’s control (“impediment”) that made
it impossible for the organization to file re-
turns or notices foreach of the three years
at issue and over the entire three-year pe-
riod.
(3) The organization acted in a respon-
sible manner by undertaking significant
steps to avoid or mitigate the failure to file
the required returns or notices and to pre-
vent similar failures in the future, includ-
ing, but not limited to—
(a) Attempting to prevent an impedi-
ment or a failure, if it was foreseeable;
(b)Actingaspromptlyaspossibletore-
move an impediment or the cause of the
reporting failure, once the failure was dis-
covered; and
(c) After the failure was discovered, im-
plementing sufficient safeguards to ensure
future compliance with the reporting re-
quirements under section 6033.
(4) Aside from the three consecutive
years in which the organization failed to
file returns or notices, the organization has
an established history of complying with
its reporting requirements (if any) under
section 6033 and/or any other applicable
reporting or other requirements under the
Code.
In determining whether reasonable
cause exists, the IRS will only consider a
factor on the above list or any other factor
(such as the fact that substantially all of
an organization’s activities are performed
by volunteers) if the organization shows
to the satisfaction of the IRS evidence to
substantiate the factor.
.03 Timing of Request for Retroactive
Reinstatement
Except for small organizations that
qualify for the transitional relief described
in Notice 2011–43, the IRS will, in exer-
cising the discretion granted under section
6033(j)(3), consider an organization’s re-
June 20, 20118852011–25 I.R.B.

quest for retroactive reinstatement only if
it submits such a request, together with a
properly completed and executed appli-
cation for reinstatement of its tax-exempt
status, within 15 months of the later of
the date of the IRS revocation letter or
thedateonwhichtheIRSpoststhename
of the organization on the revocation list
available on the IRS website (or otherwise
provides notice of the revocation to the
public).
SECTION 6. SUBSEQUENT
AUTOMATIC REVOCATIONS
An organization whose tax-exempt sta-
tus has been automatically revoked and re-
instated may have its tax-exempt status au-
tomatically revoked a second time under
section 6033(j)(1) only if it fails to file re-
turns or notices for another three consecu-
tive taxable years, beginning with the tax-
able year the IRS approves its application
for reinstatement of tax-exempt status. For
example, if an organization reporting on
a calendar year basis has its tax-exempt
status automatically revoked for failing to
file required returns or notices for 2007,
2008, and 2009 and receives a determina-
tion letter recognizing the reinstatement of
its tax-exempt status dated September 1,
2011, the organization’s tax-exempt status
will not be automatically revoked a second
time for failing to timely file a return or no-
tice for 2008, 2009, and 2010. However,
the organization’s tax-exempt status will
be automatically revoked a second time if
the organization fails to timely file a return
or notice for 2011, 2012, and 2013.
SECTION 7. PAPERWORK
REDUCTION ACT
The collection of information contained
in this notice has been submitted to the Of-
fice of Management and Budget in accor-
dance with the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507(d)) and approved
under OMB control number 1545–2206.
The collection of information in this no-
tice is in section 5. In order to have its
tax-exempt status retroactively reinstated
under section 6033(j)(3), an organization
must show to the satisfaction of the IRS
evidence that it exercised ordinary busi-
ness care and prudence in determining and
attempting to comply with its reporting
obligations under section 6033 for each of
the three years (and over the entire three-
year period) that it failed to meet such re-
quirements. This information is necessary
for inspection by the IRS in determining
whether reasonable cause exists. The col-
lection of information is required to meet
the reasonable causestandard under sec-
tion 6033(j)(3). The likely respondents
providing the information required in sec-
tion 5 of this notice are tax-exempt organi-
zations that have had their tax-exempt sta-
tuses automatically revoked under section
6033(j)(1), have applied for reinstatement
of such status under section 6033(j)(2),
and are seeking that such reinstatement be
made retroactive to the date of revocation
under section 6033(j)(3).
Estimated total annual reporting bur-
den: 2,917 hours.
Estimated average annual burden per
respondent: 1 hour.
Estimated number of respondents over
the next three years: 8,750.
Additional collection of information is
proposed in section 4 of the notice, which
will be reported and approved through
Forms 1023 and 1024 (OMB approval
numbers 1545–0056 and 1545–0057, re-
spectively).
An agency may not conduct or sponsor,
and a person is not required to respond to, a
collection of information unless it displays
a valid control number assigned by the Of-
fice of Management and Budget.
SECTION 8. REQUEST FOR
COMMENTS
Treasury and the IRS request comments
regarding this notice and suggestions for
future guidance regarding the provisions
of section 6033(j). Comments should be
submitted on or before August 19, 2011.
Please include “Notice 2011–44” on the
cover page. Comments should be sent to
the following address:
Internal Revenue Service
CC:PA:LPD:PR (Notice 2011–44),
Room 5203
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20224.
Submissions may be hand delivered
Monday through Friday between the hours
of 8 a.m. and 4 p.m. to:
Internal Revenue Service
Courier’s Desk,
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Attn: CC:PA:LPD:PR
(Notice 2011–44)
Submissions may also be sent electron-
ically to the following e-mail address:
Notice.Comments@irscounsel.treas.gov.
Please include “Notice 2011–44” in the
subject line.
All comments will be available for pub-
lic inspection and copying.
SECTION 9. DRAFTING
INFORMATION
The principal authors of this no-
tice are Monice Rosenbaum and
Preston Quesenberry of the Office
of Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities) and Matthew Giuliano of the Tax
Exempt and Government Entities Division
of the IRS. However, other personnel
from the IRS and Treasury Department
participated in developing this notice.
For further information regarding this
notice, contact Ms. Rosenbaum at (202)
622–6070, Mr. Quesenberry at (202)
622–1124, or Mr. Giuliano at (202)
283–8917 (not toll-free numbers).
Restrictions on Use of the
Term Registered Tax Return
Preparer
Notice 2011–45
The Department of the Treasury and the
IRS are implementing the recommenda-
tions contained in Publication 4832, “Re-
turn Preparer Review.” As part of this im-
plementation, the Department of the Trea-
sury and the IRS have issued final regu-
lations (T.D. 9527) that include registered
tax return preparers as practitioners under
31 CFR Part 10 (reprinted as Treasury De-
partment Circular 230).
The Department of the Treasury and the
IRS have also published final regulations
under I.R.C. § 6109 (75 FR 60309) pro-
viding that attorneys, certified public ac-
countants, enrolled agents, and registered
2011–25 I.R.B.886June 20, 2011

tax return preparers who prepare all or sub-
stantially all of a tax return must obtain a
preparer tax identification number (PTIN).
In Notice 2011–6, 2011–3 I.R.B. 315, the
IRS identified two additional groups of
individuals who are eligible to obtain a
PTIN: (1) specified individuals who are
supervised by the attorney, certified public
accountant, enrolled agent, enrolled retire-
ment plan agent, or enrolled actuary who
signs the tax return or claim for refund pre-
pared by the individual, and (2) individu-
als who certify they do not prepare or assist
in the preparation of all or substantially all
of any tax return or claim for refund cov-
ered by a competency examination. No-
tice 2011–6 further provided that individ-
uals who are not attorneys, certified pub-
lic accountants, enrolled agents, or regis-
tered tax return preparers may obtain a pro-
visional PTIN before the date that the reg-
istered tax return preparer competency ex-
amination is first offered. After the com-
petency examination is offered, only at-
torneys, certified public accountants, en-
rolled agents, registered tax return prepar-
ers, or the additional groups of individuals
identified above will be eligible to obtain a
PTIN. The IRS began issuing PTINs at the
end of September 2010.
To become a registered tax return pre-
parer, an applicant must pass a competency
examination and tax compliance and suit-
ability checks. The IRS has selected a ven-
dor to develop and administer the compe-
tency examination, but the examination is
not yet available. Additionally, the IRS is
currently in the process of developing the
suitability check. Because the conditions
for becoming a registered tax return pre-
parer are not yet able to be satisfied by
any individual, no individual may repre-
sent that he is a registered tax return pre-
parer. An individual with a provisional
PTIN may not represent that he is a reg-
istered tax return preparer or has passed
the competency examination. Once the
competency examination is available, only
an individual who has met all of the con-
ditions to becoming a registered tax re-
turn preparer, including passing the com-
petency examination and the tax compli-
ance and suitability checks, may represent
that he is a registered tax return preparer.
An individual who becomes a regis-
tered tax return preparer must comply
with the applicable rules in Circular 230,
including section 10.30 regarding practi-
tioner advertising and solicitation. Section
10.30 will be amended to require a reg-
istered tax return preparer using any paid
advertising involving print, television or
radio, in which the individual represents
himself or herself to be a registered tax
return preparer to display or broadcast
the following statement: “The IRS does
not endorse any particular individual tax
return preparer. For more information on
tax return preparers go toIRS.gov.”
The principal author of this notice is
Emily M. Lesniak of the Office of Asso-
ciate Chief Counsel (Procedure & Admin-
istration). For further information regard-
ing this notice, contact Emily M. Lesniak
at (202) 622–4570 (not a toll-free call).
Deferral of Dates Related
to the 2011 Branded
Prescription Drug Fee
Notice 2011–46
Purpose
This notice defers two dates by which
certain actions are to be taken for purposes
of the branded prescription drug fee.
Background
An annual fee on covered entities en-
gaged in the business of manufacturing
or importing branded prescription drugs
was enacted by section 9008 of the Pa-
tient Protection and Affordable Care Act
(ACA), Public Law 111–148 (124 Stat.
119 (2010)), as amended by section 1404
of the Health Care and Education Rec-
onciliation Act of 2010 (HCERA), Public
Law 111–152 (124 Stat. 1029 (2010)).
Notice 2011–9, 2011–6 I.R.B. 459,
provides guidance for implementing this
fee in 2011. Among other things, Notice
2011–9 states that the IRS will provide
each covered entity with a preliminary fee
calculation by May 16, 2011, and a final
fee calculation by August 15, 2011.
Rev. Proc. 2011–24, 2011–20 I.R.B.
787, provides a dispute resolution process
by which a covered entity may dispute
its preliminary fee calculation before the
IRS sends it a final fee calculation. Sec-
tion 4.01 of the Rev. Proc. provides that
a covered entity must provide a written
error report to the IRS, postmarked by
June 1, 2011, in order for a correction
to any claimed error to be considered
by the IRS. Section 5.02(1) of the Rev.
Proc. provides that the IRS will notify
the covered entity in writing of the final
determination with respect to error reports
when the IRS sends the covered entity
the final fee calculation no later than
August 15, 2011.
Reason for change and deferral of dates
The IRS has been told that certain cov-
ered entities may have difficulty meeting
the June 1 deadline for submitting these er-
ror reports because of the volume of data
they need to review. Accordingly, this no-
tice defers until June 10, 2011, the date
by which error reports under Rev. Proc.
2011–24 must be postmarked in order to
receive IRS consideration.
To preserve the time needed to give ap-
propriate consideration to the error reports,
the IRS will send covered entities their
2011 final fee calculation and, if applica-
ble, notification of the final determination
with respect to error reports by August 24,
2011, instead of August 15, 2011.
Effect on Other Documents
Notice 2011–9 and Rev. Proc. 2011–24
are modified.
Drafting Information
The principal author of this notice is
Celia Gabrysh of the Office of Associate
Chief Counsel (Passthroughs & Special In-
dustries). For furtherinformation regard-
ing this notice, contact Celia Gabrysh at
(202) 622–3130 (not a toll-free call).
Updated Reliance Rules for
Contributors
Rev. Proc. 2011–33
SECTION 1. PURPOSE
This revenue procedure modifies and
supersedes Revenue Procedure 82–39,
1982–2 C.B. 759, and Revenue Proce-
dure 2009–32, 2009–28 I.R.B. 142, and
provides the extent to which grantors
and contributors (including donors) may
rely on the listing of an organization in
June 20, 20118872011–25 I.R.B.

Publication 78,Cumulative List of Or-
ganizations described in § 170(c) of the
Internal Revenue Code,orontheIRS
Business Master File (“BMF”) extract, for
purposes of deducting contributions under
§ 170 and making grants under §§ 4942,
4945, and 4966. In addition, this revenue
procedure clarifies that the Internal Rev-
enue Service (“IRS”) may give notice of
revocation, including revocations under
§6033(j), through an appropriate public
announcement, such as publication in the
Internal Revenue Bulletin or on the IRS’s
website atwww.irs.gov.
SECTION 2. BACKGROUND
.01 Section 170, with certain limita-
tions, allows deductions for federal in-
come tax purposes of contributions or gifts
made to or for the use of an organization
that qualifies as an organization described
in § 170(c). In order for contributions
to be deductible, the organization must
qualify at the time of the contribution.
Thus, it is the responsibility of an organ-
ization receiving contributions to ensure
that its character, purposes, activities, and
method of operation satisfy the qualifi-
cation requirements of § 170(c) in order
for grantors and contributors to have the
assurance that their contributions at the
time made are deductible.
.02 Treas. Reg. § 1.509(a)–7(a) sets
forth general rules regarding reliance by
grantors and contributors to organizations
describedin§§509(a)(1),(2),and(3).
This regulation provides that once an or-
ganization has received a ruling or deter-
mination letter classifying it as an organi-
zation described in § 509(a)(1), (2), or (3),
the treatment of contributions and grants,
and the status of grantors and contribu-
tors to such organization under §§ 170,
507, 545(b)(2), 642(c), 4942, 4945, 2055,
2106(a)(2), and 2522, will not be affected
by reason of a subsequent revocation by
the IRS of the organization’s classification
as described in § 509(a)(1), (2), or (3) until
thedateonwhichnoticeofchangeofsta-
tusismadetothepublic.
.03 Generally, Publication 78 lists orga-
nizations that have received a ruling or de-
termination letter from the IRS stating that
contributions by grantors or contributors to
the listed organization (or to the listed cen-
tral (or parent) organization and those local
(or subordinate) units covered by the group
exemption letter) are deductible as pro-
vided in § 170. (Note that Publication 78
does not include separate listings for local
organizations included in a group ruling.)
Each ruling or determination letter is based
on a factual showing by the listed organiza-
tion that its character, purposes, activities,
and method of operation satisfy the statu-
tory requirements for qualification at the
time the ruling or determination letter is is-
sued. If there is a material change in the
character, purposes,activities, or method
of operation of an organization from those
on which the ruling or determination let-
ter was based and the change is such that
the organization ceases, as a matter of law,
to qualify under § 170(c), the ruling or de-
termination letter also immediately ceases
to be applicable (see also Sec. 11.02 of
Rev. Proc. 2011–9, 2011–2 I.R.B. 283).
Where this circumstance occurs, except for
the validation provision of § 7428(c) (see
Sec. 5.02), it is only by exercise of the
authority under § 7805(b) that grantors or
contributors to the organization may be al-
lowed a deduction for grants or contribu-
tions made after the organization ceases to
qualify under § 170(c).
.04 Through the use of a “deductibil-
ity code,” Publication 78 generally indi-
cates the foundation classification under
§ 509(a) of the listed organizations. This
classification determines the appropriate
limitations for deductibility purposes and
whether private foundations and sponsor-
ing organizations of donor-advised funds
making grants to particular organizations
would be required to exercise expenditure
responsibility. The coding system in Pub-
lication 78 does not indicate specifically
whether an organization is described in
§ 509(a)(1), (2), or (3), or a particular sub-
paragraph of § 170(b)(1)(A).
.05 The IRS no longer publishes a paper
version of Publication 78. Grantors and
contributors can no longer rely on the pa-
per version of Publication 78 or any paper
supplements for current information after
the date of publication of this revenue pro-
cedure. Publication 78 now appears solely
in electronic format on the IRS website
athttp://www.irs.gov/app/pub–78. Elec-
tronic Publication 78 and its electronic ad-
denda are generally updated at least quar-
terly.
.06 The IRS also makes an extract of
certain information on exempt organiza-
tions from the BMF available to the public
through the Tax Statistics section of the
IRS website. The extract of the BMF con-
tains more information, in a slightly differ-
ent format, than Publication 78. Among
the data fields provided are an organiza-
tion’s name and Employer Identification
Number (“EIN”), address, subsection
code (the paragraph under § 501(c) under
which it is recognizedas exempt), ruling
date, affiliation code (status as an inde-
pendent, central, or local organization),
deductibility code, foundation code (indi-
cating whether an organization is a private
foundation, private operating foundation,
or public charity described in § 509(a)(1),
(2), or (3)), and, if applicable, the appro-
priate subparagraph of § 170(b)(1)(A)),
and other data fields. The IRS plans to
modify the foundation codes in early 2011
to indicate whether a § 509(a)(3) organ-
ization is a Type I, Type II, Type III, or
Type III functionally integrated support-
ing organization. Unlike Publication 78,
the BMF extract contains information on
all organizations that have been recog-
nized by the IRS as tax-exempt, including
organizations not eligible to receive tax
deductible contributions. References to
listing in or reliance on the BMF extract
in this revenue procedure only pertain to
organizations contributions to which have
been determined to be deductible under
§170, as reflected in the deductibility code
in Publication 78 or the BMF extract.
.07 Due to its large size, the BMF ex-
tract is available as compressed ASCII
Text or Excel spreadsheet files. These files
must be downloaded and uncompressed
before viewing. The BMF extract and its
corresponding instructions are available
for download directly from the IRS web-
site athttp://www.irs.gov/taxstats/char-
itablestats/article/0,,id=97186,00.html.
Generally, the BMF information is ex-
tracted and updated on a monthly basis.
.08TemporaryRegulations
§§1.170A–9T(f)(5)(ii)and
1.509(a)–3T(e)(2), 73 Fed. Reg. 52,528
(Sept. 9, 2008), state generally that
grantors and contributors may rely on an
organization’s ruling that the organization
is described in §§ 170(b)(1)(A)(vi) and
509(a)(1) or in § 509(a)(2) until the IRS
publishes notice of a change of status (for
example, in the Internal Revenue Bulletin
or Publication 78), unless the grantor or
contributor was responsible for, or aware
of, the act or failure to act that results in
2011–25 I.R.B.888June 20, 2011

the organization’s loss of public charity
status.
.09 Section 6033(j) was added to the In-
ternal Revenue Code as part of the Pension
Protection Act of 2006, and is effective for
returns and notices for tax years beginning
after December 31, 2006. Section 6033(j)
provides that an organization exempt from
tax under § 501(a) that fails to file an an-
nual return or submit an electronic notice
for 3 consecutive years will lose its Fed-
eral tax exempt status. Section 6033(j) fur-
ther provides that the IRS shall publish and
maintain a list of any organization that is so
revoked.
SECTION 3. RELIANCE ON
PUBLICATION 78 AND THE BMF
.01 Revocations. Where an organiza-
tion listed in or covered by Publication 78
or the BMF extract ceases to qualify as an
organization contributions to which are de-
ductible under § 170:
(1) and the IRS subsequently revokes
a ruling or a determination letter pre-
viously issued to such organization,
grants and contributions made to the or-
ganization by persons unaware of such
change in status of the organization
generally will be considered allowable
if made on or before the date of an ap-
propriate public announcement stating
that the organization ceases to qual-
ifyasanorganizationcontributionsto
which are deductible under § 170.
(2) as a result of loss of exempt sta-
tus pursuant to § 6033(j), grants and
contributions made to the organization
by persons unaware of the change in
the status of the organization generally
will be considered allowable if made on
or before the date of publication of the
list of revoked organizations required
by § 6033(j).
Publication in either case may be ef-
fected in the Internal Revenue Bulletin or
on the IRS’s website at http://www.irs.gov
or by such other means designed to put the
public on notice of the change in the organ-
ization’s status.
Under certain circumstances, such as
where a legally enforceable obligation un-
der local law has been made to the organi-
zation prior to the date of publication, and
the satisfaction of such obligation is on or
after the date, the allowance period may
be extended upon specific exercise of au-
thority under § 7805(b). See, for example,
Rev. Rul. 78–129, 1978–1 C.B. 67. How-
ever, the IRS is not precluded from dis-
allowing a deduction for any contribution
made after an organization ceases to qual-
ify under § 170, where grantor or contrib-
utor (1) had knowledge of the revocation
of the ruling or determination letter prior
to publication of the revocation, (2) was
aware that such revocation was imminent,
or (3) was in part responsible for, or was
aware of, the activities or deficiencies on
the part of the organization that gave rise
to the loss of qualification.
.02 Foundation status. With regard to
an organization’s public charity status un-
der § 509(a)(1), (2), or (3), grantors and
contributors may rely on the classification
of an organization listed in or covered by
Publication 78 or the BMF extract for such
purpose to the same extent as provided for
§ 170 purposes in paragraph .01 above. To
the extent included in Publication 78 or
the BMF extract, this includes whether a
§ 509(a)(3) organization is a Type I, Type
II, Type III, or Type III functionally in-
tegrated supporting organization. Private
foundations and sponsoring organizations
of donor-advised funds may rely on an or-
ganization’s foundation status (or support-
ing organization type) set forth in Publica-
tion 78 or the BMF extract for grant mak-
ing purposes under §§ 4942, 4945, and
4966, except where the grantor (1) had
knowledge of the revocation of the ruling
or determination letter classifying the or-
ganization as one described in § 509(a)(1),
(2), or (3) (or specifying its supporting or-
ganization type) prior to the publication of
the revocation; or (2) was in part responsi-
ble for, or was aware of, the act or the fail-
ure to act that gave rise to the revocation
of the ruling or determination letter clas-
sifying the organization as one described
in § 509(a)(1), (2), or (3) (or specifying its
supporting organization type).
.03 The advance assurance of de-
ductibility and foundation status provided
by paragraphs .01 and .02 above, respec-
tively, applies only to grants or contribu-
tions made to an organization listed in or
covered by Publication 78 or the BMF ex-
tract in the organization’s official name, its
recognized popular name, or a contraction
of either of these names that is reason-
ably identifiable or widely known. The
advance assurance of deductibility and
foundation status provided by paragraphs
.01 and .02 does not apply to contributions
or grants made nominally to an organi-
zation listed in or covered by Publication
78 or the BMF extract but with the un-
derstanding or on a condition that they
be made available to or for the use of an
organization not listed in or covered by
Publication 78 or the BMF extract.
.04 The provisions of paragraphs .01
and .02 above do not apply to an organiza-
tion that is not listed in or covered by Pub-
lication78ortheBMFextract. Insucha
case the effect of a ruling or determination
letter concerning the deductibility of con-
tributions to the organization or its foun-
dation status is determined in the manner
described in Rev. Proc. 2011–4, 2011–1
I.R.B. 123.
.05 The advance assurance of de-
ductibility and foundation status provided
by paragraphs .01 and .02 above do not
apply to local organizations included in
a group ruling regardless of whether the
local organization appears in the BMF
extract. For further reliance information,
follow the procedures listed in Publication
4573,Group Exemptions, and contact the
tax-exempt central organization.
SECTION 4. RELIANCE ON BMF
INFORMATION FROM OTHER
SOURCES
A grantor or contributor may rely on in-
formation about an organization from the
BMF extract that is obtained from a third
party, so long as the following require-
ments are met:
(1) The third party provides a report to
the grantor or contributor that includes:
(A) the organization’s name, EIN, foun-
dation status under § 509(a)(1), (2), or
(3) (including supporting organization
type, if applicable), and whether con-
tributions to such organization are de-
ductible; (B) a statement that the infor-
mation is from the most current update
of the BMF extract and the BMF ex-
tract revision date; and (C) the date and
time the information was provided to
the grantor or contributor; and
(2)Thegrantororcontributorretains
a copy of the report in hard copy or
electronically.
June 20, 20118892011–25 I.R.B.

SECTION 5. RELATIONSHIP WITH
§ 7428
.01 Section 7428 creates a remedy un-
der declaratory judgment procedures, in
part, for cases involving a determination
by the IRS with respect to the continuing
qualification of an organization as one de-
scribed in § 170(c)(2) or § 501(c)(3), or
to the continuing classification of an or-
ganization under § 509(a). The remedy
is available in these cases if the IRS de-
termines that revocation of exemption un-
der § 501(c)(3), deductibility status un-
der §170(c)(2), or foundation status under
§ 509(a) is appropriate, the organization
has exhausted its administrative remedies,
and the IRS has issued a final adverse de-
termination letter to the organization. Un-
der § 7428(b)(4), no action may be brought
under § 7428 with respect to any revoca-
tion of status described in § 6033(j)(1).
.02 However, § 7428(c) provides for the
“validation of certaincontributions” made
during the pendency of a proceeding for
declaratory judgment involving the revo-
cation of a determination that the organi-
zation is described in § 170(c)(2). Under
this provision, the organization continues
to be treated as an eligible organization de-
scribed in § 170(c)(2) with respect to con-
tributions from individuals (up to a max-
imum of $1,000 in the aggregate during
the pendency of the proceeding) and from
other charitable organizations described in
§ 170(c)(2). Statutory protection for such
contributions, if declaratory judgment is
sought on the revocation action, would be-
gin on the date of publication of the re-
vocationandendonthedateonwhicha
decision in the Tax Court becomes final
or a judgment of the District Court of the
United States for the District of Colum-
bia or the Court of Federal Claims is en-
tered that the organization is not described
in § 170(c)(2). This reliance, however, is
not extended to any individual who was re-
sponsible, in whole or in part, for the ac-
tivities (or failures to act) on the part of the
organization that were the basis for the re-
vocation.
SECTION 6. ERRORS OR OMISSIONS
Any errors or omissions in Publica-
tion 78 or the BMF extract should be
reported by the tax-exempt organization
to the toll-free IRS customer service line
at 1–877–829–5500.
SECTION 7. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 82–39, 1982–1 C.B. 759,
is modified and superseded. Rev. Proc.
2009–32, 2009–28 I.R.B. 142 is modified
and superseded.
SECTION 8. EFFECTIVE DATE
Thisrevenueprocedureiseffectiveim-
mediately upon publication in the Internal
Revenue Bulletin.
SECTION 9. DRAFTING
INFORMATION
The principal author of this Revenue
Procedure is Melinda Williams of the Ex-
empt Organizations, Tax Exempt and Gov-
ernment Entities Division. For further in-
formation regarding this notice, contact
Ms. Williams at 202–283–9467 (not a
toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of
correct tax liability.
(Also: Part I §§ 362, 1.362–1, 351, 1.351–3,
1.358–6.)
Basis In Stock Acquired
In Transferred Basis
Transactions
Rev. Proc. 2011–35
SECTION 1. PURPOSE
This revenue procedure provides proce-
dures that a corporation (Acquiring) may
use to establish its basis in stock of another
corporation (Target) when it acquires the
Target stock in a transferred basis transac-
tion.
SECTION 2. BACKGROUND
The Internal Revenue Service has long
held that the optimal method for establish-
ing basis in stock acquired in a reorganiza-
tion described in § 368(a)(1)(B) of the In-
ternal Revenue Code (B reorganizations) is
a survey of the surrendering Target share-
holders. The Service has also long recog-
nized that it will not be practical to sur-
vey all surrendering Target shareholders
in all such cases, particularly where Tar-
get stock is publicly traded. To mitigate
this concern, the Service published Rev.
Proc. 81–70, 1981–2 C.B. 729, which pro-
vides survey procedures, as well as proce-
dures for the use of statistical sampling and
estimation of basis, for establishing basis
in stock acquired in a B reorganization if
a survey of all surrendering shareholders
would not be practical or feasible.
Since the publication of Rev. Proc.
81–70, however, the operation of the se-
curities market has changed significantly.
Foremost among the changes has been the
pervasive shift to the holding of stock in
street name, that is, the holding of stock
by nominees, typically clearinghouses or
other financial institutions, on behalf of
their members or customers. Because
these nominee holders are subject to confi-
dentiality and other restrictions, it is often
difficult, if not impossible, for corpora-
tions acquiring stock in a B reorganization
to obtain the information necessary to
establish basis in acquired stock using
the procedures prescribed by Rev. Proc.
81–70. Furthermore, the difficulties as-
sociated with determining basis in stock
acquired in a B reorganization can also be
present when determining basis in stock
acquired in any transferred basis transac-
tion.
In 2004, the Service undertook a study
of the need for revised and further guid-
ance in the determination of basis of shares
acquired in transferred basis transactions.
See Notice 2004–44, 2004–2 C.B. 32. The
comments received in response to Notice
2004–44 were reflected in Notice 2009–4,
2009–2 I.R.B. 251, which affirmed the in-
tent to revise the general provisions of
Rev. Proc. 81–70, described three ba-
sis-determination safe harbors under con-
sideration, and requested comments. The
basis-determination safe harbors in Notice
2009–4 were: a survey-based methodol-
ogy for shares surrendered by or on behalf
of reporting shareholders, an estimation
model based on stock registry and trading
data for shares surrendered by registered,
nonreporting shareholders, and an estima-
tion model based on public trading data for
shares surrendered by nominee sharehold-
ers. Comments were received affirming
2011–25 I.R.B.890June 20, 2011

the need for such guidance and suggest-
ing various modifications to the safe har-
bor models.
This revenue procedure adopts the sur-
veying and statistical sampling guidelines
in Rev. Proc. 81–70, but updates and
revises them to take current market prac-
tices into account. This revenue proce-
dure also adopts the safe harbor method-
ologies described in Notice 2009–4, but
modifies them to reflect the comments re-
ceived, particularly regarding the need for
a model that uses data more readily ac-
cessible to acquiring corporations. Finally,
this revenue procedure expands the appli-
cability of these provisions by permitting
their use in any transferred basis transac-
tion.
SECTION 3. OVERVIEW,
GENERALLY APPLICABLE
PROVISIONS
.01In General. Section 4.0 of this rev-
enue procedure sets forth procedures for
four methodologies that taxpayers may use
to determine basis in stock acquired in a
transferred basis transaction. Section 4.01
provides procedures for surveying all sur-
rendering Target shareholders to determine
actual basis in surrendered shares. Sec-
tion 4.02 provides procedures for the use
of statistical sampling when a full survey
is not feasible. Sections 4.03 and 4.04
provide estimation techniques that may be
used in lieu of a full survey or statistical
sampling when specified criteria are satis-
fied. Taxpayers may use one or more of
these methodologies in any combination.
If a taxpayer cannot or does not use the
methodologies prescribed in this revenue
procedure, basis in acquired Target shares
may be established by such other method-
ologies as agreed by the Service and Ac-
quiring.
Notwithstanding any provision of this
revenue procedure, if Acquiring or the
Service has or acquires (including by
survey and by examining Target’s books
and records) knowledge of a surrendering
shareholder’s actual basis in a surrendered
share, Acquiring’s basis in the share is
the surrendering shareholder’s actual ba-
sis. For example, in many cases, if Target
issued shares to employee plans or with
respect to options, convertible stock, or
convertible debt, the basis of the shares
can be determined using Target’s books
and records. In thosecases, Acquiring’s
basis in the shares will be the actual basis
as determined using Target’s books and
records. However, the Service will not
undertake its own survey of shareholders
(other than, perhaps, reporting sharehold-
ers) for the purpose of obtaining actual
knowledge of their basis.
In the absence of actual knowledge, the
Service will not assertan alternative basis,
or an alternative method for determining
basis, to the extent a taxpayer determines
basis in Target stock in compliance with
this revenue procedure.
The Appendix to this revenue proce-
dure sets forth an illustration of the appli-
cation of the estimation and modeling pro-
visionsinSection4.
.02Definitions. For purposes of this
revenue procedure, the following defini-
tions apply:
(1)Registered shareholder.Theterm
“registered shareholder” means any Target
shareholder that surrendered Target shares
held in certificated form at the time of the
transferred basis transaction.
(2)Nominee shareholder.Theterm
“nominee shareholder” means any surren-
dering Target shareholder (whether surren-
dering shares it held on its own account or
on behalf of a customer, member, or other
beneficial owner) that, at the time of the
transferred basis transaction, was either—
(a) A participant or member of the
Depository Trust Company (DTC), or such
other clearinghouse determined by the Ser-
vice to be substantially similar to the DTC,
that holds securities positions on its own
behalf or on behalf of its clients, partici-
pants, members, or other persons, or
(b) A person required to file an
SEC Form 13F or such other reporting
form determined by the Service to be sub-
stantially similar to the SEC Form 13F.
(3)Reporting shareholder.Theterm
“reporting shareholder” means any surren-
dering Target shareholder that, immedi-
ately before the transferred basis transac-
tion, was either—
(a) The registered or nominee
shareholder of publicly traded Target
shares representing at least five percent
of the vote or the value of all outstanding
Target shares (or, in the case of shares that
were not publicly traded, one percent of
the vote or value of all outstanding Tar-
get shares), or, if identified in a nominee
survey or otherwise known to Acquiring,
the beneficial owner of such amount of
shares, or
(b) An officer or director of Tar-
get, or a plan that acquired Target stock for
or on behalf of Target employees (such as
an employee stock option or pension plan).
(4)Security Position Report (SPR).
The term “Security Position Report”
(SPR) means the securities position list-
ings issued by the DTC and reporting the
closing positions for securities held by
DTC members. The term also includes
similar publications of other clearing-
houses, whether domestic or foreign, if it
is established to the satisfaction of the Ser-
vice that the publication is substantially
similar to the DTC-issued SPR and the
clearinghouse is substantially similar to
the DTC.
(5)SEC Form 13F.Theterm“SEC
Form 13F” means the reporting form filed
by institutional investment managers pur-
suant to Section 13(f) of the Securities Ex-
change Act of 1934. The term also in-
cludes such other reporting forms required
to be filed by a foreign jurisdiction if it is
established to the satisfaction of the Ser-
vice that such filing is substantially similar
to the SEC Form 13F.
(6)Master Securityholder File.The
term “Master Securityholder File” means
the official listing of individual securi-
tyholder accounts holding certificated
shares, see 17 C.F.R. § 240.17Ad–9
(1983).
(7)Transferred basis transaction.The
term “transferred basis transaction” means
any transaction in which Acquiring’s ba-
sis in Target stock acquired in the trans-
action is determined by reference to the
surrendering Target shareholders’ bases in
their surrendered shares. Transferred ba-
sis transactions include B reorganizations,
§ 351 exchanges, and certain triangular re-
organizations (see § 1.358–6(c)(2)(ii) of
the Income Tax Regulations).
(8)Adjusted closing price.Theterm
“adjusted closing price” means the price
at which a share of stock closed on an es-
tablished securities market on a specified
date, adjusted to take stock splits into ac-
count.
SECTION 4. PROCEDURES
.01Surveying. This Section 4.01 pro-
vides procedures for surveying surrender-
ing Target shareholders to establish basis
June 20, 20118912011–25 I.R.B.

in the shares surrendered by or on behalf of
such shareholders. The procedures of this
Section 4.01 apply to all surveys, whether
done with respect to all acquired shares,
with respect to a sample of acquired shares
under the statistical sampling procedures
described in Section 4.02, or with respect
to shares that are surrendered by or on be-
half of reporting shareholders when basis
is estimated under Section 4.03 or Section
4.04.
(1)Timeliness requirement.Allsur-
veys under this Section 4.01 must be done
timely. A survey will generally be con-
sidered to have been done timely if it is
substantially completed within two years
of the transferred basis transaction. How-
ever, see Section 7 of this revenue proce-
dure for the application of this requirement
to transferred basis transactions completed
prior to June 20, 2011.
(2)Survey procedure. All surveys done
pursuant to this Section 4.01 are to be done
in accordance withthe following—
(a)Identifying the Target sharehold-
ers to be surveyed. Acquiring first identi-
fies the surrendering shareholders that will
be included in the survey. For this pur-
pose, Acquiring may use Target’s books
and records, or such other information as
is appropriate and available, including, for
example, the Master Securityholder Files
maintained by the stock transfer agent, or
Securities ExchangeCommission (SEC)
filings, including Schedule 13 series and
SPR data.
In general, Acquiring must survey all
registered and nominee shareholders that
surrendered Target stock in the transferred
basis transaction. In addition, Acquiring
must survey all other reporting share-
holders identified by survey or otherwise.
However, Acquiring need not survey—
(i) Any shareholder that is not a
member of the survey sample and that sur-
rendered Target stock the basis of which is
to be determined under the statistical sam-
pling method described in Section 4.02,
(ii) Any registered shareholder
that is not a reporting shareholder and
that surrendered Target stock the basis of
which is to be determined under the esti-
mation methodology described in Section
4.03, or
(iii) Any nominee shareholder that
is not a reporting shareholder and that sur-
rendered Target stock the basis of which
is to be determined under the estimation
methodology described in Section 4.04.
(b)Conducting the survey. Once the
survey subjects are identified, Acquiring
begins the survey process by sending a
letter to the last known address of each
such shareholder, asking the shareholder
to disclose the number of Target com-
mon and preferred shares surrendered, the
shareholder’s aggregate basis (by class)
of those shares, and whether the share-
holder held the shares as the beneficial or
nominee owner. The letter must state the
purpose for requesting the information,
explain how basis is determined, and ex-
plain the importance of responding timely
and accurately. In addition, the letter must
request that—
(i) Any surrendering shareholder
that was a beneficial owner provide the
identity and contact information of any
nominee holder of its surrendered share or
shares; and
(ii) Any surrendering shareholder
that was a nominee owner either:
(A) Provide the identity and
contact information of the beneficial
owner or owners of the shares it surren-
dered;
(B) Provide the aggregate
number of common and preferred shares
that it surrendered and the aggregate basis
(byclass)ofthoseshares;or
(C) Forward the request for
information (in a form provided by Ac-
quiring) to the beneficial owners of its
surrendered shares, requesting that such
owners provide the basis information
either directly to Acquiring or to the
nominee (who would then provide the
information to Acquiring).
After 30 days, Acquiring must make
at least two additional attempts to contact
all shareholders that failed to respond to
the initial survey letter. This follow-up
contact may be made by telephone, email,
and/or such other means as appropriate and
available.
(3)Allowable basis. The basis reported
by surveyed shareholders will be deemed
to be the surrendering shareholder’s actual
basis, and Acquiring’s basis will therefore
be the basis reported by such shareholders,
unless the reported basis—
(i) Differs from the actual basis
known by Acquiring or the Service, in
which case Acquiring’s basis will be such
actual basis, or
(ii) Is inaccurate on its face and dif-
fers significantly from the trading prices
of the shares at any time within a week of
the date they were acquired in a cost-basis
transaction. In such a case, the shareholder
is considered to have failed to respond to
the survey.
If a shareholder surveyed in accordance
with this Section 4.01 fails to respond to
Acquiring’s request for basis information
within 30 days of Acquiring’s second fol-
low-up attempt, Acquiring may determine
its basis in a share or shares surrendered by
or on behalf of the shareholder using such
other procedures in this revenue procedure
as are applicable.
.02Statistical Sampling. This Section
4.02 provides procedures for the use of
standard statisticalsampling techniques
to establish basis in Section 4.02 Eligi-
ble Shares (as defined in Section 4.02(1))
when the administrative cost of surveying
all surrendering shareholders is unreason-
ably high. Factors that determine whether
administrative cost is unreasonably high
include the time, burden, and financial
cost of conducting a full survey. The
administrative cost of surveying every sur-
rendering Target shareholder is presumed
unreasonably high if, immediately before
the transaction, Target stock was traded on
an established securities market (within
the meaning of § 1.7704–1(b) of the Pro-
cedure and Administration Regulations).
Under this Section 4.02, Acquiring’s ba-
sis in each Section 4.02 Eligible Share is
determined in accordance with the follow-
ing—
(1)Section 4.02 Eligible Share.The
term “Section 4.02 Eligible Share” means
any Target share—
(a) The actual basis of which is not
known, and
(b) That is not surrendered by or on
behalf of a reporting shareholder.
(2)Statistical sampling procedure.To
satisfy the requirements of this Section
4.02—
(a) Statistical sampling is done sepa-
rately for common and preferred shares.
(b) No reporting shareholders may be
included in a sample to be surveyed.
(c) All shareholders in the sample must
be surveyed under procedures described in
Section 4.01, and
(d) The statistical sampling procedures
used must comply with standard statistical
sampling procedures recognized by the
2011–25 I.R.B.892June 20, 2011

Service. The use of statistical sampling
has been provided for in several items of
published guidance. See, for example,
Rev. Proc. 2004–29, 2004–1 C.B. 918
(statistical sampling methodology for use
in establishing the amount of substantiated
meal and entertainment expenses that are
excepted from the 50% deduction disal-
lowance under section 274(n)(1)); Rev.
Proc. 2007–35, 2007–1 C.B. 1349 (ad-
dressing when statistical sampling may
be used for purposes of section 199 of
the Code (income attributable to domes-
tic production activities)); Rev. Proc.
2002–55, 2002–2 C.B. 435 (permitting
external auditors of qualified intermedi-
aries to use statistical sampling); and Rev.
Proc. 72–36, 1972–2 C.B. 771 (setting
forth statistical sampling guidelines for
determining the redemption rate of trading
stamps).
If the Service determines that Acquir-
ing’s sampling procedure fails to comply
with accepted statistical sampling proce-
dures, Acquiring will have an opportunity
to recompute the estimate (Sample Basis
Estimate), expand the sample, or make
such other adjustments to the basis calcula-
tion as necessary to comply with standard
statistical sampling procedures. Alterna-
tively, Acquiring may determine its basis
in Target stock using such other procedures
in this revenue procedure as are applicable.
(3)Allowable basis. Acquiring’s al-
lowable basis in each Section 4.02 Eligi-
ble Share will be a valid estimate (Sam-
ple Basis Estimate) computed at the least
advantageous 95% one-sided confidence
limit. The “least advantageous” confi-
dence limit is either the upper or lower
limit that results in the least benefit to Ac-
quiring. If the relative precision, as de-
scribed in Section 4.02(4) of this revenue
procedure, does not exceed 10%, the Sam-
ple Basis Estimate may be used as the basis
for each Section 4.02 Eligible Share. For
purposes of determining basis under this
revenue procedure, where the relative pre-
cision is less than 15% and greater than
10%, Allowable Basis is an amount be-
tween the least advantageous 95% one-
sided confidence limit and the Sample Ba-
sis Estimate, determined as follows:
Sample Basis Estimate - (Relative Pre-
cision - .10) / .05 × (Sample Basis Es-
timate - Least Advantageous 95% One-
Sided Confidence Limit)
(4)Calculating the relative precision
for each estimator. The relative preci-
sion for each estimator is commonly cal-
culated by dividing the relative precision at
the 95% one-sided confidence limit (some-
times referred to as the sampling error) of
the Sample Basis Estimate by the estima-
tor. Where a Sample Basis Estimate may
be calculated using either a corrected value
or difference perspective, as in the case of
Ratio and Regression methods or solely a
corrected value perspective as in the case
of a Mean method, the test will be applied
on the basis of a difference perspective. In
such cases the numerator of the calcula-
tion is the sampling error of the adjustment
and the denominator the Sample Basis Es-
timate of the adjustment.
.03Estimation Procedure for shares
surrendered by registered shareholders
and certain reporting shareholders.This
Section 4.03 provides procedures for de-
termining basis of Section 4.03 Eligible
Shares (as defined in Section 4.03(1)) us-
ing data from the Master Securityholder
Files. Under this Section 4.03, Acquir-
ing’s basis in each Section 4.03 Eligible
Share is determined in accordance with
the following—
(1)Section 4.03 Eligible Share.The
term “Section 4.03 Eligible Share” means
any Target share—
(a) The actual basis of which is not
known, and
(b) That was surrendered by a regis-
tered shareholder—
(i) That is not a reporting share-
holder, or
(ii) That is a reporting shareholder
that was surveyed and that failed to re-
spond to the survey.
(2)Estimation procedure.Underthis
Section 4.03, Acquiring’s basis in each
Section 4.03 Eligible Share is determined
in accordance withthe following—
(a)Establishing initial estimated basis
of each Section 4.03 Eligible Share.The
initial estimated basis of each Section 4.03
Eligible Share is determined by treating
the shareholder who surrendered the share
as acquiring the share by purchase for the
adjusted closing price on the date that the
shareholder was issued its stock certificate.
However, any amount so determined must
be adjusted or revised to take into account
any extraordinary issuance event. For this
purpose, an extraordinary issuance event
is any transaction or event that could have
caused the basis of a share to be materially
different from the adjusted closing price on
its issuance date, including but not limited
to the following—
(i) On or about the date a stock
certificate was issued to a surrendering
Target shareholder, another certificate held
by the same shareholder was cancelled. In
such case, to the extent that the number of
shares issued is less than or equal to the
number of shares cancelled, the adjusted
closing price for such newly issued shares
will not be the adjusted closing price on
the date the new certificate was issued, but,
instead, the adjusted closing price on the
date the earlier certificate was issued. If a
cancelled certificate was originally issued
concurrently with the cancellation of an-
other certificate, the adjusted closing price
is that on the date of the earlier (or earliest)
issuance.
(ii) A share was acquired in a tax-
free stock split or as a stock dividend by the
shareholder who surrendered the share. In
such case, the share will be assigned a pro-
portionate amount of the basis of the orig-
inal share determined under the applicable
provisions of the Code and regulations. Or,
(iii) A share was acquired in a
prior tax-free exchange by the shareholder
who surrendered the share. In such case,
the share will be assigned a basis deter-
mined under the applicable provisions of
the Code and regulations (including the
provisions of this revenue procedure).
(b)Adjusting initial estimated basis.
The initial estimated basis of each Section
4.03 Eligible Share determined under Sec-
tion 4.03(2)(a) must be adjusted for all sub-
sequent transactions and events that would
require an adjustment to basis under the
Code (for example, to take into account
distributions under § 301(c)(2)).
(3)Allowable basis. Acquiring’s ba-
sis in each Section 4.03 Eligible Share is
the initial estimated basis for the share de-
termined under Section 4.03(2)(a) and ad-
justed as required bySection 4.03(2)(b).
.04Estimation procedure for shares
surrendered by nominees. This Section
4.04 provides procedures for determining
the basis of Section 4.04 Eligible Shares
(as defined in Section 4.04(1)(a)) using
data from Target Security Position Reports
(SPRs) or from SEC Form 13F filings
(but not both). Under this Section 4.04,
Acquiring’s basis in each Section 4.04 El-
June 20, 20118932011–25 I.R.B.

igible Share is determined in accordance
with the following—
(1)Definitions. For purposes of this
Section 4.04, the following definitions ap-
ply—
(a)Section 4.04 Eligible Share.The
term “Section 4.04 Eligible Share” means
any Target share—
(i) The actual basis of which is
not known, and
(ii) That was surrendered by a
nominee shareholder—
(A) That is not a reporting
shareholder, or
(B) That is a reporting share-
holder that was surveyed and failed to re-
spond to the survey.
(b)Data Collection Period. The “Data
Collection Period” is the period of time—
(i) Beginning on the later of—
(A) The first day of Target’s
first taxable year, and
(B) Either—
(1)thelaterofthefirst
date that the shares to be modeled are pub-
licly traded and the date that is seven years
before the date of the transferred basis
transaction if Acquiring is estimating ba-
sis using Target’s SPR data, or
(2) the date that is ten
years before the date of the transferred ba-
sis transaction if Acquiring is estimating
basis using SEC Form 13F data, and
(ii) Ending on the date of the
transferred basis transaction.
(c)Measuring Date. The term “Mea-
suring Date” means any date with respect
to which data is to be collected. The Mea-
suring Dates are:
(i) IfSPRdataisbeingusedtoes-
timate basis, each Friday in the Data Col-
lection Period on which SPR data was pub-
lished or, if SPR data is not published on
a Friday in a particular week, then the last
date prior to that Friday on which SPR data
was published, provided that such data is
available from the DTC as of the date of
the transferred basis transaction, and
(ii) If SEC Form 13F data is be-
ing used to estimate basis, each date in
the Data Collection Period on which SEC
Forms 13F are filed.
(2)Estimation procedure.Theestima-
tion of basis under this Section 4.04 is
done separately for common and preferred
shares, and estimations are made as fol-
lows—
(a)Identifying modeled shareholders.
Acquiring first identifies the surrendering
shareholders to be included in the esti-
mation model (the modeled shareholders),
and each such shareholder’s first and last
Measuring Date. For this purpose—
(i)If SPR data is being used to
estimate basis, the modeled shareholders
are all surrendering shareholders identified
on an SPR published at any time during
the Data Collection Period (SPR modeled
shareholder). With respect to each SPR
modeled shareholder—
(A) The shareholder’s first
Measuring Date is the first date on which
the shareholder is continuously identified
on Target SPRs, and
(B) The shareholder’s last
Measuring Date is the last date for which
Target SPR data is available.
(ii)If SEC Form 13F data is being
used to estimate basis, the modeled share-
holders are all surrendering shareholders
that filed an SEC Form 13F at any time
during the Data Collection Period (SEC
modeled shareholders). With respect to
each SEC modeled shareholder—
(A) The shareholder’s first
Measuring Date is the first date on which
the shareholder is identified in the SEC
Form 13F data as holding Target shares,
and
(B) The shareholder’s last
Measuring Date is the last date on which
the shareholder filed an SEC Form 13F.
(b)Establishing each modeled share-
holder’s aggregate initial estimated basis.
Each modeled shareholder is treated as
purchasing the shares it is identified as
holding on its first Measuring Date for an
amount equal to the volume-weighted av-
erage adjusted closing prices for the pe-
riod—
(i) Beginning on the later of the
date that is three months prior to the share-
holder’s first Measuring Date and the date
that is Target’s first day of its first taxable
year, and
(ii) Ending on the modeled share-
holder’s first Measuring Date. This is the
modeled shareholder’s aggregate initial es-
timated basis.
(c)Adjusting each modeled share-
holder’s initial estimated basis. Each
modeled shareholder’s initial estimated
basisisadjustedbytreatingtheshare-
holder as having purchased shares to the
extent of any increase, and having sold
shares to the extent of any decrease, in the
number of Target shares that the share-
holder holds on the next Measuring Date
for which data is available (the next date
for which Acquiring has a Target SPR in
the case of an SPR modeled shareholder,
and the next date that the shareholder
made an SEC Form 13F filing in the case
of an SEC modeled shareholder). All
deemed purchases are treated as having
been made for an amount equal to the
volume-weighted average of the adjusted
closing prices for the period between
the modeled shareholder’s immediately
preceding Measuring Date and the next
Measuring Date for which data is avail-
able; all deemed sales are treated as having
been made on the average cost method.
The process is repeated for every Measur-
ing Date until the shareholder’s aggregate
adjusted estimated basis is determined as
of its last Measuring Date.
Each modeled shareholder’s aggregate
adjusted basis on its last Measuring Date is
divided by the total number of shares held
by the shareholder on that date to deter-
mine the shareholder’s per share final es-
timated basis.
For purposes of the model, each Tar-
get share actually surrendered by a mod-
eled shareholder is deemed to have a basis
equal to the surrendering shareholder’s per
share final estimated basis.
(d)Section 4.04 per share modeled ba-
sis. The deemed bases of all shares actu-
ally surrendered by modeled shareholders
are combined and the total is divided by
the number of shares actually surrendered
by those shareholders. The result is the per
share modeled basis.
(3)Allowable basis
. Acquiring’s basis
in each Section 4.04 Eligible Share is de-
termined in accordance with the follow-
ing—
(i)If SPR data is usedto compute
the Section 4.04 per share modeled basis,
Acquiring’s basis in each Section 4.04 El-
igible Share is equal to the Section 4.04
per share modeled basis multiplied by the
percentage of Measuring Dates in the Data
Collection Period for which SPR data is
obtained. Thus, if there are 60 Measur-
ing Dates in the Data Collection Period and
Acquiring obtained SPR data for only 54
of those Measuring Dates, Acquiring’s ba-
sis in each Section 4.04 Eligible Share is an
amount equal to 90 percent (54/60) of the
Section 4.04 per share modeled basis. Fur-
2011–25 I.R.B.894June 20, 2011

ther, appropriate adjustments will be made
if the Service determines that SPRs not in-
cluded in the determination represent ma-
terial omissions.
(ii)If SEC Form 13F data is usedto
compute the Section 4.04 per share mod-
eled basis, Acquiring’s basis in each Sec-
tion 4.04 Eligible Share is equal to the Sec-
tion 4.04 per share modeled basis multi-
pliedby75percent.
SECTION 5. REPORTING
REQUIREMENTS
Taxpayers acquiring stock in trans-
ferred basis transactions described in this
revenue procedure are deemed to satisfy
the reporting requirements of §§ 1.351–3
and 1.368–3 if they include a statement
on or with the timely filed original re-
turn for the taxable year of the transferred
basis transaction that identifies the trans-
ferred basis transaction and states that a
basis study is pending with respect to the
acquired stock. However, to satisfy the
requirements of those sections in such
cases, the taxpayer must include complete
statements as required under those reg-
ulations, with basis amounts determined
pursuant to the study or otherwise under
this revenue procedure, on or with a timely
filed original return for a tax year that is
no later than the tax year that includes the
date that is two years after the date of the
transferred basis transaction. See Section
7 of this revenue procedure for the appli-
cation of this requirement to transferred
basis transactions prior to June 20, 2011.
This Section 5 applies to all transferred ba-
sis transactions without regard to whether
basis is determined under Section 4 of this
revenue procedure.
SECTION 6. PRE-FILING
AGREEMENTS
The determination of whether a basis
study is done in compliance with one of the
procedures described in Section 4 of this
revenue procedure may be the subject of a
pre-filing agreement.
SECTION 7. EFFECTIVE DATE,
EFFECT ON OTHER DOCUMENTS
This revenue procedure is effective
with respect to transferred basis trans-
actions completed on or after June 20,
2011. However, taxpayers may use this
revenue procedure with respect to trans-
ferred basis transactions completed prior
to June 20, 2011; in such cases, surveys
will be considered timely if substantially
completed, and reporting requirements
will be considered satisfied if filed, on or
before June 20, 2013.
Rev. Proc. 81–70 and Notice 2009–4
are obsoleted with respect to transferred
basis transactions completed on or after
June 20, 2011.
June 20, 20118952011–25 I.R.B.

APPENDIX
EXAMPLE, PART 1
D
ETERMINATIONOFBASISUSING
STOCKREGISTRY,CORPORATEBOOKSANDRECORDS,
MARKETTRADINGDATA,AND
SECFORM13FFILINGDATA
On January 1, Year 1, Target was formed. On February 2, Year 3,
Acquiring acquired all 1000 outstanding shares of Target publicly
traded common stock and all 100 outstanding shares of Targe
t nonvoting preferred stock in a transferred basis transaction. The non-
voting preferred stock is not publicly traded and, at the ti
me of the transferred basis transaction, represents 2 percent of the value of
Target. Immediately after the transaction, Acquiring col
lected information to establish its basisin the acquired shares. Acquiring will
use the survey and estimation methods provided in this reve
nue procedure. Note that, to simplify computations, all numbers (other
than those related to individual shares) are rounded to w
hole numbers; individual shares are rounded to the second place.
D
ATACOLLECTION:
1. From the stock registry, publicly available records (trading prices), and its own books and records, Acquiring collected the
following information:
ShareholderIssue dateIssue priceShares issued and surren
dered
Preferred shares
Officer1/1/Y1No amount
recorded20
Employee Plan14/1/Y1
$10/share
30
Employee Plan24/1/Y2
$36/share
50
Total preferred shares surrendered by registered shareholders100
ShareholderIssue dateAdjusted
closing price
on issue date
High/Low trading price within
one week of issue date
Shares issued and surrendered
Common shares
Individual A1/1/ Y1
$ 9/share$7–12/share
10
Individual B1/1/ Y1
$ 9/share$7–12/share
10
Individual C1/1/ Y2
$12/share$8–13/share
50
Individual D1/1/ Y2
$12/share$8–13/share
50
Individual E1/1/ Y2
$12/share$8–13/share
50
Director A1/1/ Y2
$12/share$8–13/share
30
Private Placement1/1/ Y2
$12/share$8–13/share
50
Total common shares s
urrendered by registered shareholders
250
Target’s books and records also indicate:
a. There was a $5 distribution declared on each preferred share outstanding on 4/15/Y1. The distributions were made to Officer
($100) and to Employee Plan1 ($150) on 5/1/Y1. For the yearof the distribution, Target had no earnings and profits.
b. On or about 1/1/Y2, the date that a certificate was issued to Individual C for 50 shares, a certificate issued on 1/1/Y1 to Individual
C for 25 shares was cancelled.
2. From SEC Form 13F Filings, publicly available trading information, and its own books and records, Acquiring collected the
following information regarding the ownership of its common shares held by nominees:
2011–25 I.R.B.896June 20, 2011

Nominee shareholderSEC Form 13F Filing
date
Shares
reported
Vol Wtd
Avg
adjusted
closing
price*
High/low trading
price in quarter
Shares surrendered
Y1: 1
st
quarter308
$5–14/share
Y1: 2
nd
quarter
45
10
$5–14/Share
Y1: 3
rd
quarter12011
$5–14/Share
Y1: 4
th
quarter16012
$5–14/share
Y2: 1
st
quarter20010
$6–15/share
Y2: 2
nd
quarter
150
12
$6–15/share
Y2: 3
rd
quarter20014
$6–15/share
Nominee1
Y2: 4
th
quarter20016
$6–18/share250
Y1: 1
st
quarterNo
Form13F
filed
8
$5–14/share
Y1: 2
nd
quarter
250
10
$5–14/Share
Y1: 3
rd
quarter
250
11
$5–14/Share
Y1: 4
th
quarter20012
$5–14/share
Y2: 1
st
quarter20010
$6–15/share
Y2: 2
nd
quarter30012
$6–15/share
Y2: 3
rd
quarter30014
$6–15/share
Nominee2
Y2: 4
th
quarter
150
16
$6–18/share175
Y1: 1
st
quarterNo
Form13F
filed
8
$5–14/share
Y1: 2
nd
quarterNo
Form13F
filed
10
$5–14/Share
Y1: 3
rd
quarter
75
11
$5–14/Share
Y1: 4
th
quarter
75
12
$5–14/share
Y2: 1
st
quarterNo
Form13F
filed
10
$6–15/share
Y2: 2
nd
quarter10012
$6–15/share
Y2: 3
rd
quarter
135
14
$6–15/share
Nominee3
Y2: 4
th
quarter
150
16
$6–18/share100
June 20, 20118972011–25 I.R.B.

Y1: 1
st
quarter
50
8
$5–14/share
Y1: 2
nd
quarter
50
10
$5–14/Share
Y1: 3
rd
quarter10011
$5–14/Share
Y1: 4
th
quarterNo
Form13F
filed
12
$5–14/share
Y2: 1
st
quarter10010
$6–15/share
Y2: 2
nd
quarter
150
12
$6–15/share
Y2: 3
rd
quarter20014
$6–15/share
Nominee4
Y2: 4
th
quarterNo
Form13F
filed
16
$6–18/share
100
Y1: 1
st
quarterNo
Form13F
filed
8
$5–14/share
Y1: 2
nd
quarterNo
Form13F
filed
10
$5–14/Share
Y1: 3
rd
quarterNo
Form13F
filed
11
$5–14/Share
Y1: 4
th
quarter
50
12
$5–14/share
Y2: 1
st
quarter
50
10
$6–15/share
Y2: 2
nd
quarterNo
Form13F
filed
12
$6–15/share
Y2: 3
rd
quarter20014
$6–15/share
Nominee5
Y2: 4
th
quarter
250
16
$6–18/share125
* the volume weighted average adjusted closing price applicablewith respect to the first Measuring Date is determined for the
period beginning on the later of Target’s first day of its first tax year and the day that is three months prior to the first Measuring
Date; the volume weighted average adjusted closing price applicable to all subsequent Measuring Dates is determined for the period
between Measuring Dates.
D
ATAANALYSIS:
IDENTIFYINGAPPLICABLEBASISDETERMINATIONMETHODS
ShareholderReporting shareholder statusSurvey
required
Eligible procedure(s)
Preferred shares (not publicly traded, one percent standard applies):
OfficerReporting shareholder (<1% vote and value, but specified
relationship); issue price not recorded
Yes4.01
Employee Plan1 Reporting shareholder (<1% vote and value, but specified
relationship); issue price recorded
NoNone, actual basis known
Employee Plan2 Reporting shareholder (1% of value and specified relationship);
issue price recorded
NoNone, actual basis known
2011–25 I.R.B.898June 20, 2011

Common shares (publicly traded, five percent standard applies):
Individual A
Not reporting shareholder (<5% vote and value, no specified
relationship)
No4.01 or 4.03
Individual B
Not reporting shareholder (<5% vote and value, no specified
relationship)
No4.01 or 4.03
Individual C
Reporting shareholder (5% vote)
Yes4.01; 4.03 if surveyed and no
response
Individual D
Reporting shareholder (5% vote)
Yes4.01; 4.03 if surveyed and no
response
Individual E
Reporting shareholder (5% vote)
Yes4.01; 4.03 if surveyed and no
response
Director A
Reporting shareholder (<5% vote and value but specified
relationship)
Yes4.01; 4.03 if surveyed and no
response
Private
Placement
Reporting shareholder (5% vote)
Yes4.01; 4.03 if surveyed and no
response
Nominee1
Reporting shareholder (5% vote and value)
Yes4.01; 4.04 if surveyed and no
response
Nominee2
Reporting shareholder (5% vote and value)
Yes4.01; 4.04 if surveyed and no
response
Nominee3
Reporting shareholder (5% vote and value)
Yes4.01; 4.04 if surveyed and no
response
Nominee4
Reporting shareholder (5% vote and value)
Yes4.01; 4.04 if surveyed and no
response
Nominee5Reporting shareholder (5% vote and value)
Yes4.01; 4.04 if surveyed and no
response
BASISDETERMINATIONSUNDERSECTION4.01(SURVEYMETHOD)
Acquiring conducted a survey of the following shareholders. The survey complied with the procedures of Section 4.01(2)(b). The
following summarizes the results of the survey:
Shareholder surveyedShareholder’s response/basis Allowable basis from survey Eligible for other procedure?
Preferred shares:
OfficerNo responseNoneNo, insufficient data for
models
Employee Plan1
$4.50/share for 30 preferred
shares; in addition, Employee
Plan1 reported it owned 50
common shares surrendered
by Nominee1 ($12/share)
None for preferred (actual
=$10-5=$5);asreported
($12/share) for common
No
June 20, 20118992011–25 I.R.B.

Common shares:
Individual A
$13/shareAs reported ($13/share)
No
Individual CNo responseNoneYes, Section 4.03
Individual E
$40/share (nonresponsive, $40
inaccurate on its face)
NoneYes, Section 4.03
Director A
$1/share (nonresponsive, $1
inaccurate on its face)
NoneYes, Section 4.03
Private PlacementNo responseNoneYes, Section 4.03
Nominee1No responseNoneYes, Section 4.04
Nominee2
$65/share
(nonresponsive, $65
inaccurate on its face)
NoneYes, Section 4.04
Nominee4No responseNoneYes, Section 4.04
Nominee5
No responseNoneYes, Section 4.04
Notes:
Officer. Although Acquiring surveyed Officer and received no response, Acquiring cannot determine basis in the shares surren-
dered by Officer by the methods described in Section 4.03 and Section 4.04 because the requisite market information is not available.
Employee Plans. Because Acquiring had knowledge of actual basis (issue price was recorded inthe register), Acquiring’s basis is
the actual basis of the shares ($10, reduced by the $5/share “section 301(c)(2)” distribution, or $5), notwithstanding that Employee
Plan1 reported a basis of $4.50in the shares. Although Acquiring was not required to survey Employee Plan1, because it did and
Employee Plan1 reported that, in addition to the preferred shares,it also beneficially owned 50 of the shares of common stock held
by Nominee1, the basis of each of those 50 common shares is the $12/share basis reported by Employee Plan1 (even though all of
Nominee1’s trading activity, including with respect to the 50 shares held on behalf of Employee Plan1, will be taken into account in
modeling basis in Section 4.04).
Individual A. Although Acquiring was not required to survey Individual A in order to use the estimation method in Section 4.03,
Acquiring did survey Individual A and Individual A responded to the survey. Accordingly, the basis in the shares surrendered by
Individual A is Individual A’s reported basis of $13 per share, notwithstanding that the basis determined under Section 4.03 would
only be $9/share for those shares.
Individual B. Acquiring does not have an actual basis for Individual B and was not required to survey Individual B in order to use
the estimation method in Section 4.03. Accordingly, Acquiring may determine the basis of Individual B’s shares using the estimation
method in Section 4.03.
Individual C. Individual C, a reporting shareholder, was surveyed but did not respond. Accordingly, Acquiring may determine the
basis of Individual C’s shares using the estimation method in Section 4.03.
Individual D. Individual D, a reporting shareholder, was not surveyed. As a result, Acquiring has not satisfied the requirements
for using the estimation procedures in this revenue procedure and, thus, cannot establish the bases of those shares under this revenue
procedure. However, Acquiring may establish its bases in those shares under such other method as agreed to by the Service.
Individual E and Director A. Individual E and Director A, both reporting shareholders, were surveyed and responded. However,
the survey responses given by Individual E ($40/share) and Director A ($1/share) areinaccurate on their faces because they differ
significantly from the high/low trading prices within a week of theiracquisition by the surrendering shareholders ($8-$13/share), and
thus Individual E and Director A are considered to have not responded to the survey and the reported bases are disregarded. Acquiring
may therefore establish its bases in those shares using the procedures in Section 4.03.
Nominee shareholders. All five of the nominee shareholders are reporting shareholders and must therefore be surveyed in order to
determine the bases of their surrendered shares under the modeling procedure of Section 4.04. Acquiring surveyed all the nominee
shareholders except Nominee3. Nominee1, Nominee4, and Nominee5 failed to respond. Further, although Nominee2 responded, its
response was inaccurate on its face ($65/share) and so Nominee2 isconsidered also to have not responded. As a result, Acquiring
has generally satisfied the requirements to determine its bases in the shares surrendered by Nominee1, Nominee2, Nominee4, and
Nominee5 under Section 4.04. However, with respect to Nominee1, Acquiring received survey information on the basis of 50 common
shares it held and surrendered on behalf of Employee Plan1, and so 50 of the shares surrendered by Nominee1 will have a basis equal
to the reported basis. Because Nominee3 was not surveyed, Acquiring has not satisfied the requirements for using the estimation
2011–25 I.R.B.900June 20, 2011

procedures in this revenue procedure and socannot use these procedures to determine thebases of those shares. However, Acquiring
may establish its bases in the shares surrendered by Nominee3 under such other method as agreed to bythe Service. Notethat, although
the bases of 50 shares surrendered by Nominee1 and all the shares surrendered by Nominee3 are not determined under Section 4.04,
all the trading information collected with respect to Nominee1 and Nominee3 is included in the modeling computations.
B
ASISDETERMINATIONSUNDERSECTION4.03
Even though Individual C, Individual E, Director A, and Private Placement were reporting shareholders, Acquiring surveyed them,
they failed to respond, and Acquiring has knowledge of the issue date of shares issued to such shareholders. Thus, the shares they
surrendered are Section 4.03 Eligible Shares. The bases in the Section 4.03 Eligible Shares are computed as follows (rounding numbers
other than “per share” numbers):
Surrendering shareholderAdjusted closing
price on issue
date
Number of shares
surrendered
Allowable basis
Common shares:
Individual B
$9
10
$90
$9
25
$225
Individual C
$12
25
$300
Individual E
$12
50
$600
Director A
$12
30
$360
Private Placement
$12
50
$600
Note: In determining the basis of IndividualC’s 50 shares, Acquiring must take intoaccount the cancellation of a certificate for
25 shares (issued to Individual C on 1/1/Y1) on the same day that the certificate for 50 shares was issued to Individual C. Individual
C is treated as surrendering 25 shares with a basis equal to the closing price on 1/1/Y1 and 25 shares with a basis equal to the closing
price on 1/1/Y2.
B
ASISDETERMINATIONSUNDERSECTION4.04(FORM13FDATA)
Acquiring’s bases in Section 4.04 Eligible Shares are computed as follows:
June 20, 20119012011–25 I.R.B.

Surrendering
shareholder
Filing date Shares
reported
Vol wtd
avg adj
closing
price for
period
Modeled basis
(Initial estimated basis adjusted each
measuring date for increases and
decreases in reported holdings)
Deemed basis in
surrendered shares
Y1: 1
st
quarter
308I
nitialestimatedbasis:
30 shares reported
x $8 vol wtd avg closing price
per share = $2
40
Y1: 2
nd
quarter
45
10
Reported shares increased (30 to 45):
15 shs @$10/sh = $150
A
djustedestimatedbasis:
$240+$150 = $3
90
Y1: 3
rd
quarter
12011Reported shares increased
(45to120):
75 shs @$11/sh = $825
A
djustedestimatedbasis:
$390+825 = $1
215
Y1: 4
th
quarter
16012Reported shares increased
(120 to 160):
40 shs @$12/sh = $480
A
djustedestimatedbasis:
$1215+480 = $1
695
Y2: 1
st
quarter
20010Reported shares increased
(160 to 200):
40 shs @$10/sh = $400
A
djustedestimatedbasis:
$1695+400 = $2
095
Y2: 2
nd
quarter
150
12Reported shares decreased
(200 to 150):
Average cost of shares:
$2095/200 = $10.48/sh;
50 shs @$10.48/sh = $524
A
djustedestimatedbasis:
$2095–524 = $1571
Y2: 3
rd
quarter
20014Reported shares increased
(150 to 200):
+50 shs @$14/sh = $700
Adjusted estimated basis
$1571+700 = $2
271
Nominee1
Y2: 4
th
quarter
20016No change in holdings
$2271 aggregate adjusted estimated basis / 200 shares =
$11.36 per share final estimated basis
250 shares surrendered x $11.36 per share final estimated basis =
$2840 deemed basis in surrendered shares$2840
2011–25 I.R.B.902June 20, 2011

Y1: 1
st
quarter
No 13F
filed
8
Y1: 2
nd
quarter
250
10I
nitialestimatedbasis:
250 shares reported
x $10 vol wtd avg closing price
per share = $2500
Y1: 3
rd
quarter
250
11No change in holdings
Y1: 4
th
quarter
20012Reported shares decreased
(250 to 200):
Average cost of shares:
$2500/250 = $10;
50 shs @$10/sh = $500
A
djustedestimatedbasis:
$2500–500 = $2000
Y2: 1
st
quarter
20010No change in holdings
Y2: 2
nd
quarter
30012Reported shares increased
(200 to 300):
+100 shs @$12/sh = $1200
A
djustedestimatedbasis:
$2000+1200 = $3200
Y2: 3
rd
quarter
30014No change in holdings
Nominee2
Y2: 4
th
quarter
150
16Reported shares decreased
(300 to 150):
Average cost of shares:
$3200/300 = $10.67;
150 shs @$10.67/sh = $1601
A
djustedestimatedbasis:
$3200–1601 = $1599
$1600 aggregate adjusted estimated basis / 150 shares = $10.67 per share final estimated basis
175 shares surrendered x $10.66 per share final estimated basis =
$1867 deemed basis in surrendered shares$1867
June 20, 20119032011–25 I.R.B.

Y1: 1
st
quarter
No 13F
filed
8
Y1: 2
nd
quarter
No 13F
filed
10
Y1: 3
rd
quarter
75
11I
nitialestimatedbasis:
75 shares reported
x $11 vol wtd avg closing price
per share = $8
25
Y1: 4
th
quarter
75
12No change in holdings
Y2: 1
st
quarter
No 13F
filed
10No change in holdings
Y2: 2
nd
quarter
10012Reported shares increased
(75to100):
+25 shs @$12/sh = $300
A
djustedestimatedbasis:
$825+300 = $1
125
Y2: 3
rd
quarter
135
14Reported shares increased
(100 to 135):
+35 shs @$14/sh = $490
A
djustedestimatedbasis:
$1125+490 = 1
615
Nominee3
Y2: 4
th
quarter
150
16Reported shares increased
(135 to 150):
+15 shs @$16/sh = $240
A
djustedestimatedbasis:
$1615+240 = 1
855
$1855 aggregate adjusted estimated basis / 150 shares = $12.37 per share final estimated basis
100 shares surrendered x $12.37 per share final estimated basis =
$1237 deemed basis in surrendered shares$1237
2011–25 I.R.B.904June 20, 2011

Y1: 1
st
quarter
50
8I
nitialestimatedbasis:
50 shares reported
x $8 vol wtd avg closing price
per share = $4
00
Y1: 2
nd
quarter
50
10No change in holdings
Y1: 3
rd
quarter
10011Reported shares increased
(50to100):
+50 shs @$11/sh = $550
A
djustedestimatedbasis:
$400+550 = $9
50
Y1: 4
th
quarter
No 13F
filed
12No change in holdings
Y2: 1
st
quarter
10010No change in holdings
Y2: 2
nd
quarter
150
12Reported shares increased
(100 to 150):
+50 shs @$12/sh = $600
A
djustedestimatedbasis:
$950+600 = $1
550
Y2: 3
rd
quarter
20014Reported shares increased
(150 to 200):
+50 shs @$14/sh = $700
A
djustedestimatedbasis:
$1550+700 = $2
250
Nominee4
Y2: 4
th
quarter
No 13F
filed
16No change in holdings
$2250 aggregate adjusted estimated basis / 200 shares = $11.25 per share final estimated basis
100 shares surrendered x $11.25 per share final estimated basis =
$1125 deemed basis in surrendered shares$1125
June 20, 20119052011–25 I.R.B.

Y1: 1
st
quarter
No 13F
filed
$8
Y1: 2
nd
quarter
No 13F
filed
$10
Y1: 3
rd
quarter
No 13F
filed
$11
Y1: 4
th
quarter
50
$12
I
nitialestimatedbasis:
50 shares reported
x $12 vol wtd avg closing price
per share = $600
Y2: 1
st
quarter
50
$10
No change in holdings
Y2: 2
nd
quarter
No 13F
filed
$12
No change in holdings
Y2: 3
rd
quarter
200
$14
Reported shares increased
(50to200):
+150 shs @ $14/sh = $2100
A
djustedestimatedbasis:
$600 + 2100 = $2700
Nominee5
Y2: 4
th
quarter
250
$16
Reported shares increased
(200 to 250):
+50 shs @ $16/sh = $800
A
djustedestimatedbasis:
$2700 + 800 = $3500
$3500 aggregate adjusted estimated basis / 250 shares = $14 per share final estimated basis
125 shares surrendered x $14 per share final estimated basis = $1750 deemed basis in surrendered shares$1750
Computation of Section 4.04 per share modeled basis (common shares):
Nominee shareholderPer share final estimated basisSurrendered sharesDeemed basis in surrendered shares
Nominee111.36
250
$2840
Nominee210.67
175
$1867
Nominee312.37100
$1237
Nominee4
11.25
100
$1125
Nominee5
14.00
125
$1750
Total deemed basis in surrendered shares
$8819
Total number of surrendered shares
750
Section 4.04 per share modeled basis
$11.76
Section 4.04 per share modeled basis x 75% =
Allowable basis for each Section 4.04 Eligible Share$8.82
2011–25 I.R.B.906June 20, 2011

ALLOCATIONOFALLOWABLEBASIS
TOSECTION4.04ELIGIBLESHARES
Surrendering
shareholder
Allowable basis
per share
Surrendered Section
4.04 Eligible Shares
Total allowable
basis
Nominee1
$8.82
200
$1764
Nominee2
$8.82
175
$1544
Nominee3
$8.82
00
Nominee4
$8.82
100
$882
Nominee5
$8.82
125
$1103
Notes:
Nominee1. As noted above, the basis of 50 of the 250 shares surrendered by Nominee1 was reported by Employee Plan1 and so
was not determined under the Section 4.04 model.
Nominee3. As noted above, Acquiring did not satisfy the requirements to determine its basis in the shares surrendered by Nominee3
under this revenue procedure. Thus, there is no basis allowable under the model; however, Acquiring may establish its bases in those
shares under such other method as agreed to by the Service.
S
UMMARY
BASISDETERMINEDUNDERREVENUEPROCEDURE
(SECFORM13FFILINGDATA)
Surrendering shareholderApplicable
method
Allowable basisShares
surrendered
Total allowable basis under
revenue procedure
Preferred shares (100 outstanding):
OfficerCannot be
established under
this revenue
procedure
TBD under procedures
as agreed to by Service
20
$0
Employee Plan1Actual, as
determined by
Target’s records
$5/share ($10 issue
price, less $5 §301(c)(2)
distribution)
30
$150
Employee Plan2Actual, as
determined by
Target’s records
$36/share
50
$1800
Total basis in preferred shares
$1950
Common shares (1000 outstanding):
Employee Plan1As reported in
survey, 4.01
$12/share
50
$600
Individual AAs reported in
survey, 4.01
$13/share
10
$130
Individual B4.03
$9/share
10
$90
June 20, 20119072011–25 I.R.B.

Individual C4.03
$9/share
$12/share
25
25
$525
Individual DCannot be
established under
this revenue
procedure
TBD under procedures
as agreed to by Service
50
$0
Individual E4.03
$12/share
50
$600
Director A4.03
$12/share
30
$360
Private Placement4.03
$12/share
50
$600
Nominee14.04
$8.82/share
200
$1764
Nominee24.04
$8.82/share
175
$1544
Nominee3Cannot be
established under
this revenue
procedure
TBD under procedures
as agreed to by Service
100
$0
Nominee44.04
$8.82/share
100
$882
Nominee5
4.04
$8.82/share
125
$1103
Total basis in common shares
$8,198
Total number of shares (preferred plus common) surrendered1100
Total basis in all shares
$10,148
EXAMPLE, PART 2:
D
ETERMINATIONOFBASISUSING
STOCKREGISTRY,BOOKSANDRECORDS,
ANDSPRDATA
Assume that the facts are the same as inExample 1, except that Acquiring uses data fromTarget’s SPRs instead of the SEC Form
13F filings. Further, Acquiring obtains 100 of the 109 SPRs thatwere published during the data collection period and that were
available from the DTC as of the date of the transaction (the missing SPRs are not a material omission); the first SPR obtained by
Acquiring that shows Target stock ownership was published in Week 4; the only other SPRs that show movement in Target holdings
were published in Weeks 21, 34, 48, 60, 72, 80, and 104. (Note that, tosimplify the illustration, the SPR dates correspond to the SEC
Form 13F filing dates in Part 1 of this example; thus, the numbers of shares reported (and their volume weighted average adjusted
closing price) on the first SEC Form 13F filing correspond to those on the Week 4 SPR, the second SEC Form 13F filing numbers
(and prices) to those in SPR Week 21, and so forth; where no SEC Form 13F was filed, the shares reported are zero; the number of
shares surrendered are unchanged.) Thedetermination of the Section 4.04 modeled basis using SPR data is done as follows:
2011–25 I.R.B.908June 20, 2011

Surrendering
shareholder
Date of
SPR
Shares
listed on
SPR
Vol wtd
avg
closing
price for
period*
Modeled basis (Initial estimated basis
adjusted each measuring date for
increases and decreases in reported
holdings)
Deemed basis in
surrendered shares
Week 4308Initialestimatedbasis:
30 shares reported
x $8 vol wtd avg closing price
per share = $2
40
Week21
45
10Reported shares increased
(30 to 45):
15 shs @$10/sh = $150
A
djustedestimatedbasis:
$240+$150 = $3
90
Week3412011Reported shares increased
(45to120):
75 shs @$11/sh = $825
A
djustedestimatedbasis:
$390+825 = $1
215
Week4816012Reported shares increased
(120 to 160):
40 shs @$12/sh = $480
A
djustedestimatedbasis:
$1215+480 = $1
695
Week6020010Reported shares increased
(160 to 200):
40 shs @$10/sh = $400
A
djustedestimatedbasis:
$1695+400 = $2
095
Week72
150
12Reported shares decreased
(200 to 150):
Average cost of shares:
$2095/200 = $10.48/sh;
50 shs @$10.48/sh = $524
A
djustedestimatedbasis:
$2095–524 = $1571
Week8020014Reported shares increased
(150 to 200):
+50 shs @$14/sh = $700
Adjusted estimated basis
$1571+700 = $2
271
Nominee1
Week10420016No change in holdings
$2271 aggregate adjusted estimated basis / 200 shares =
$11.36 per share final estimated basis
250 shares surrendered x $11.36 per share final estimated basis =
$2840 deemed basis in surrendered shares$2840
June 20, 20119092011–25 I.R.B.

Week4Not listed
on SPR
8
Week21
250
10Initialestimatedbasis:
250 shares reported
x $10 vol wtd avg closing price
per share = $2500
Week34
250
11No change in holdings
Week4820012Reported shares decreased
(250 to 200):
Average cost of shares:
$2500/250 = $10;
50 shs @$10/sh = $500
A
djustedestimatedbasis:
$2500–500 = $2000
Week6020010No change in holdings
Week7230012Reported shares increased
(200 to 300):
+100 shs @$12/sh = $1200
A
djustedestimatedbasis:
$2000+1200 = $3200
Week8030014No change in holdings
Nominee2
Week104
150
16Reported shares decreased
(300 to 150):
Average cost of shares:
$3200/300 = $10.67;
150 shs @$10.67/sh = $1600
A
djustedestimatedbasis:
$3200–1601 = $1600
$1600 aggregate adjusted estimated basis / 150 shares =
$10.67 per share final estimated basis
175 shares surrendered x $10.67 per share final estimated basis =
$1866 deemed basis in surrendered shares$1867
2011–25 I.R.B.910June 20, 2011

Week4Not listed
on SPR
8
Week21Not listed
on SPR
10
Week34
75
11This is not Nominee3’s first
measuring date because Nominee3
does not appear on Target SPRs
continuously to last measuring date
Week48
75
12
Week60Not listed
on SPR
10
Week7210012Initialestimatedbasis:
100 shares reported
x $12 vol wtd avg closing price
per share = $1200
Week80
135
14Reported shares increased
(100 to 135):
+35 shs @$14/sh = $490
A
djustedestimatedbasis:
$1200+490 = 1690
Nominee3
Week104
150
16Reported shares increased
(135 to 150):
+15 shs @$16/sh = $240
A
djustedestimatedbasis:
$1690+240 = 1930
$1930 aggregate adjusted estimated basis / 150 shares =
$12.87 per share final estimated basis
100 shares surrendered x $12.87 per share final estimated basis =
$1287 deemed basis in surrendered shares$1287
June 20, 20119112011–25 I.R.B.

Week4
50
8
Week21
50
10
Week3410011
Week48Not listed
on SPR
12
Week6010010
Week72
150
12
Week8020014
Nominee4
Week104 Not listed
on SPR
16No initial estimated basis can be
determined (Nominee4 holds no
shares on the SPR immediately
preceding the transaction date)
$0 aggregate adjusted estimated basis / 0 shares =
$0 per share final estimated basis
100 shares surrendered x $0 per share final estimated basis =
$0 deemed basis in surrendered shares$0
Week4Not listed
on SPR
$8
Week21Not listed
on SPR
$10
Week34Not listed
on SPR
$11
Week48
50
$12
Week60
50
$10
Week72Not listed
on SPR
$12
Week80200
$14
Initialestimatedbasis:
200 shares reported
x $14 vol wtd avg closing price
per share
= $2800
Nominee5
Week104
250
$16
Reported shares increased
(200 to 250):
+50 shs @$16/sh = $800
A
djustedestimatedbasis:
$2800 + 800 = $3600
$3600 aggregate adjusted estimated basis / 250 shares =
$14.40 per share final estimated basis
125 shares surrendered x $14.40 per share final estimated basis =
$1800 deemed basis in surrendered shares$1800
2011–25 I.R.B.912June 20, 2011

ComputationofSection4.04persharemodeledbasis(commonshares):
Nominee shareholderPer share final estimated basisSurrendered sharesDeemed basis in surrendered shares
Nominee111.36
250
$2840
Nominee210.67
175
$1867
Nominee312.87100
$1287
Nominee40100
$0
Nominee5
14.40
125
$1800
Total deemed basis in surrendered shares
$7794
Total number of surrendered shares
750
Section 4.04 per share modeled basis
$10.39
Section 4.04 per share modeled basis
x 92% (100/109, the SPR ratio) =
Allowable basis for each Section 4.04 Eligible Share$9.56
ALLOCATIONOFALLOWABLEBASISTOSECTION4.04ELIGIBLESHARES
Surrendering
shareholder
Allowable basis
per share
Surrendered Section
4.04 Eligible Shares
Aggregate
allowable basis
Nominee1
$9.56
200
$1912
Nominee2
$9.56
175
$1673
Nominee3
$9.56
0
$0
Nominee4
$9.56
100
$956
Nominee5
$9.56
125
$1195
Notes:
Nominee1. As noted above, the basis of 50 of the 250 shares surrendered by Nominee1 was reported by Employee Plan1 and so
was not determined under the Section 4.04 model.
Nominee3. As noted above, Acquiring did not satisfy the requirements to determine its basis in the shares surrendered by Nominee3
under this revenue procedure. Thus, there is no basis allowable under the model; however, Acquiring may establish its bases in those
shares under such other method as agreed to by the Service.
June 20, 20119132011–25 I.R.B.

SUMMARY
BASISDETERMINEDUNDERREVENUEPROCEDURE
(SPRDATA)
Surrendering shareholderApplicable
method
Allowable basisShares
surrendered
Total allowable basis under
revenue procedure
Preferred shares (100 outstanding):
OfficerCannot be
established under
this revenue
procedure
TBD under procedures
as agreed to by Service
20
$0
Employee Plan1Actual, as
determined by
Target’s records
$5/share ($10 issue
price reduced by $5
§301(c)(2) distribution)
30
$150
Employee Plan2Actual, as
determined by
Target’s records
$36/share
50
$1800
Total basis in preferred shares
$1950
Common shares (1000 outstanding):
Employee Plan1As reported in
survey, 4.01
$12/share
50
$600
Individual AAs reported in
survey, 4.01
$13/share
10
$130
Individual B4.03
$9/share
10
$90
Individual C4.03
$9/share
$12/share
25
25
$525
Individual DCannot be
established under
this revenue
procedure
TBD under procedures
as agreed to by Service
50
$0
Individual E4.03
$12/share
50
$600
Director A4.03
$12/share
30
$360
Private Placement4.03
$12/share
50
$600
Nominee14.04
$9.56/share
200
$1912
Nominee24.04
$9.56/share
175
$1673
Nominee3Cannot be
established under
this revenue
procedure
TBD under procedures
as agreed to by Service
100
$0
Nominee44.04
$9.56/share
100
$956
Nominee5
4.04
$9.56/share
125
$1195
Total basis in common shares
$8,641
2011–25 I.R.B.914June 20, 2011

Total number of shares (preferred plus common) surrendered1100
Total basis in all shares
$10,591
26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2011–36
SECTION 1. PURPOSE AND SCOPE
.01 This revenue procedure modifies
section 6.07 of Rev. Proc. 2011–8, 2011–1
I.R.B. 237, to provide for a reduced user
fee for applications for reinstatement of
tax-exempt status filed by certain small
organizations following automatic revoca-
tion of their tax-exempt status under sec-
tion 6033(j) of the Internal Revenue Code.
.02 This revenue procedure is effective
as of the date stated in section 5 and shall
be effective only for applications made by
certain small organizations that are post-
marked no later than December 31, 2012.
.03 The reduced user fee described in
section 3 of this revenue procedure shall
apply only to small organizations that nor-
mally have annual gross receipts of not
more than $50,000 in their most recently
completed taxable year and that are other-
wise eligible for the transitional relief de-
scribed in Notice 2011–43, this Bulletin.
.04 All organizations not eligible for
the transitional relief described in Notice
2011–43 must refer to the user fee sched-
ule in section 6.07 of Rev. Proc. 2011–8
or its successor.
SECTION 2. BACKGROUND
The tax-exempt status of an organiza-
tionthatisdescribedinsection6033(a)(1)
or section 6033(i) of the Code and fails
to file a required annual return or notice
for three consecutive years is automati-
cally revoked as of the date set for the
filing of the third annual return or no-
tice. I.R.C. § 6033(j)(1). An organiza-
tion that has had its tax-exempt status au-
tomatically revoked and wishes to have
itstax-exemptstatusreinstatedisrequired
to apply for reinstatement of tax-exempt
status, even if it was not originally re-
quired to make such an application. I.R.C.
§ 6033(j)(2). Notice 2011–43 provides
transitional relief for certain small organi-
zations that have lost their tax-exempt sta-
tus for failing to file required annual no-
tices for taxable years beginning in 2007,
2008, and 2009. For more information
about how to apply for transitional relief
and reinstatement of tax-exempt status, see
Notice 2011–43, this Bulletin.
SECTION 3. USER FEE
The amount of the user fee payable with
respect to an application for reinstatement
of tax-exempt status postmarked no later
than December 31, 2012 by an organiza-
tion eligible for the transitional relief de-
scribed in Notice 2011–43 is $100.
SECTION 4. EFFECT ON OTHER
REVENUE PROCEDURES
Section 6.07 of Rev. Proc. 2011–8 is
modified only with respect to applications
for reinstatement of tax-exempt status filed
by organizations that qualify for the transi-
tional relief described in Notice 2011–43.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective
June 9, 2011.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Matthew Giuliano of the
Exempt Organizations, Tax Exempt
and Government Entities Division.
For further information regarding this
revenue procedure, please contact the
TE/GE Customer Service office at (877)
829–5500 (a toll-free call).
June 20, 20119152011–25 I.R.B.

Part IV. Items o
fGeneralInterest
Publication o
fthe
Auto-Revocat
ion List
Announcement
2011–35
The Internal
Revenue Service is re-
quired to pub
lish and maintain a list of
organization
s that have had their federal
tax-exempt st
atus automatically revoked
for failing to
file an annual return or notice
for three cons
ecutive years pursuant to
section 6033(
j) of the Internal Revenue
Code of 1986.
As provided in Revenue
Procedure 20
11–33, the Internal Revenue
Service will p
ublish this auto-revocation
list on its web
site atwww.irs.gov.The
auto-revocat
ion list will not appear in the
Internal Reve
nue Bulletin.
2011–25 I.R.B.916June 20, 2011

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
June 20, 2011i2011–25 I.R.B.

Numerical Finding List
1
Bulletin 2011–1 through 2011–25
Announcements:
2011-1, 2011-2 I.R.B.304
2011-2, 2011-3 I.R.B.324
2011-3, 2011-3 I.R.B.324
2011-4, 2011-4 I.R.B.424
2011-5, 2011-4 I.R.B.430
2011-6, 2011-4 I.R.B.433
2011-7, 2011-5 I.R.B.446
2011-8, 2011-5 I.R.B.446
2011-9, 2011-7 I.R.B.499
2011-10, 2011-7 I.R.B.499
2011-11, 2011-7 I.R.B.500
2011-12, 2011-9 I.R.B.532
2011-13, 2011-8 I.R.B.525
2011-14, 2011-9 I.R.B.532
2011-15, 2011-8 I.R.B.526
2011-16, 2011-7 I.R.B.500
2011-17, 2011-9 I.R.B.532
2011-18, 2011-12 I.R.B.567
2011-19, 2011-11 I.R.B.553
2011-20, 2011-10 I.R.B.542
2011-21, 2011-12 I.R.B.567
2011-22, 2011-16 I.R.B.672
2011-23, 2011-12 I.R.B.568
2011-24, 2011-12 I.R.B.569
2011-25, 2011-14 I.R.B.608
2011-26, 2011-14 I.R.B.608
2011-27, 2011-15 I.R.B.651
2011-28, 2011-18 I.R.B.748
2011-29, 2011-18 I.R.B.748
2011-30, 2011-20 I.R.B.791
2011-31, 2011-22 I.R.B.836
2011-32, 2011-22 I.R.B.836
2011-34, 2011-24 I.R.B.877
2011-35, 2011-25 I.R.B.916
Notices:
2011-1, 2011-2 I.R.B.259
2011-2, 2011-2 I.R.B.260
2011-3, 2011-2 I.R.B.263
2011-4, 2011-2 I.R.B.282
2011-5, 2011-3 I.R.B.314
2011-6, 2011-3 I.R.B.315
2011-7, 2011-5 I.R.B.437
2011-8, 2011-8 I.R.B.503
2011-9, 2011-6 I.R.B.459
2011-10, 2011-6 I.R.B.463
2011-11, 2011-7 I.R.B.497
2011-12, 2011-8 I.R.B.514
2011-13, 2011-9 I.R.B.529
2011-14, 2011-11 I.R.B.544
2011-15, 2011-10 I.R.B.539
Notices— Continued:
2011-16, 2011-17 I.R.B.720
2011-17, 2011-10 I.R.B.540
2011-18, 2011-11 I.R.B.549
2011-19, 2011-11 I.R.B.550
2011-20, 2011-16 I.R.B.652
2011-21, 2011-19 I.R.B.761
2011-22, 2011-12 I.R.B.557
2011-23, 2011-13 I.R.B.588
2011-24, 2011-14 I.R.B.603
2011-25, 2011-14 I.R.B.604
2011-26, 2011-17 I.R.B.720
2011-27, 2011-17 I.R.B.723
2011-28, 2011-16 I.R.B.656
2011-29, 2011-16 I.R.B.663
2011-30, 2011-17 I.R.B.724
2011-31, 2011-17 I.R.B.724
2011-32, 2011-18 I.R.B.737
2011-33, 2011-19 I.R.B.761
2011-34, 2011-19 I.R.B.765
2011-35, 2011-25 I.R.B.879
2011-36, 2011-21 I.R.B.792
2011-37, 2011-20 I.R.B.785
2011-38, 2011-20 I.R.B.785
2011-39, 2011-20 I.R.B.786
2011-40, 2011-22 I.R.B.806
2011-41, 2011-21 I.R.B.798
2011-42, 2011-23 I.R.B.866
2011-43, 2011-25 I.R.B.882
2011-44, 2011-25 I.R.B.883
2011-45, 2011-25 I.R.B.886
2011-46, 2011-25 I.R.B.887
Proposed Regulations:
REG-140108-08, 2011-13 I.R.B.591
REG-149335-08, 2011-6 I.R.B.468
REG-118761-09, 2011-21 I.R.B.803
REG-146097-09, 2011-8 I.R.B.516
REG-153338-09, 2011-14 I.R.B.606
REG-154159-09, 2011-19 I.R.B.777
REG-124018-10, 2011-2 I.R.B.301
REG-131151-10, 2011-8 I.R.B.519
REG-131947-10, 2011-8 I.R.B.521
REG-132724-10, 2011-7 I.R.B.498
REG-151687-10, 2011-23 I.R.B.867
Revenue Procedures:
2011-1, 2011-1 I.R.B.1
2011-2, 2011-1 I.R.B.90
2011-3, 2011-1 I.R.B.111
2011-4, 2011-1 I.R.B.123
2011-5, 2011-1 I.R.B.167
2011-6, 2011-1 I.R.B.195
2011-7, 2011-1 I.R.B.233
2011-8, 2011-1 I.R.B.237
2011-9, 2011-2 I.R.B.283
Revenue Procedures— Continued:
2011-10, 2011-2 I.R.B.294
2011-11, 2011-4 I.R.B.329
2011-12, 2011-2 I.R.B.297
2011-13, 2011-3 I.R.B.318
2011-14, 2011-4 I.R.B.330
2011-15, 2011-3 I.R.B.322
2011-16, 2011-5 I.R.B.440
2011-17, 2011-5 I.R.B.441
2011-18, 2011-5 I.R.B.443
2011-19, 2011-6 I.R.B.465
2011-20, 2011-11 I.R.B.551
2011-21, 2011-12 I.R.B.560
2011-22, 2011-18 I.R.B.737
2011-23, 2011-15 I.R.B.626
2011-24, 2011-20 I.R.B.787
2011-25, 2011-17 I.R.B.725
2011-26, 2011-16 I.R.B.664
2011-27, 2011-18 I.R.B.740
2011-28, 2011-18 I.R.B.743
2011-29, 2011-18 I.R.B.746
2011-30, 2011-21 I.R.B.802
2011-31, 2011-22 I.R.B.808
2011-32, 2010-22 I.R.B.835
2011-33, 2011-25 I.R.B.887
2011-34, 2011-24 I.R.B.875
2011-35, 2011-25 I.R.B.890
2011-36, 2011-25 I.R.B.915
Revenue Rulings:
2011-1, 2011-2 I.R.B.251
2011-2, 2011-2 I.R.B.256
2011-3, 2011-4 I.R.B.326
2011-4, 2011-6 I.R.B.448
2011-5, 2011-13 I.R.B.577
2011-6, 2011-10 I.R.B.537
2011-7, 2011-10 I.R.B.534
2011-8, 2011-12 I.R.B.554
2011-9, 2011-12 I.R.B.554
2011-10, 2011-14 I.R.B.597
2011-11, 2011-19 I.R.B.758
2011-13, 2011-23 I.R.B.841
Treasury Decisions:
9507, 2011-3 I.R.B.305
9508, 2011-7 I.R.B.495
9509, 2011-6 I.R.B.450
9510, 2011-6 I.R.B.453
9511, 2011-6 I.R.B.455
9512, 2011-7 I.R.B.473
9513, 2011-8 I.R.B.501
9514, 2011-9 I.R.B.527
9515, 2011-14 I.R.B.599
9516, 2011-13 I.R.B.575
9517, 2011-15 I.R.B.610
9518, 2011-17 I.R.B.710
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin
2010–52, dated December 27, 2010.
2011–25 I.R.B.iiJune 20, 2011

Treasury Decisions— Continued:
9519, 2011-18 I.R.B.734
9520, 2011-18 I.R.B.730
9521, 2011-19 I.R.B.750
9522, 2011-20 I.R.B.780
9523, 2011-20 I.R.B.781
9524, 2011-23 I.R.B.843
9525, 2011-23 I.R.B.837
9526, 2011-24 I.R.B.869
June 20, 2011iii2011–25 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2011–1 through 2011–25
Announcements:
85-88
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
2008-11
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2009-62
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
Notices:
2006-87
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-25
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-77
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2008-107
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2009-4
Obsoleted by
Rev. Proc. 2011-35, 2011-25 I.R.B.890
2009-23
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-24
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-83
Modified by
Notice 2011-25, 2011-14 I.R.B.604
2009-93
Modified by
Notice 2011-38, 2011-20 I.R.B.785
2010-27
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2010-32
Modified and superseded by
Notice 2011-37, 2011-20 I.R.B.785
Notices— Continued:
2010-59
Modified by
Notice 2011-5, 2011-3 I.R.B.314
2010-60
Supplemented and superseded by
Notice 2011-34, 2011-19 I.R.B.765
2010-71
Modified and superseded by
Notice 2011-9, 2011-6 I.R.B.459
2010-79
Clarified and modified by
Notice 2011-4, 2011-2 I.R.B.282
2011-9
Modified by
Notice 2011-46, 2011-25 I.R.B.887
Proposed Regulations:
REG-132554-08
Corrected by
Ann. 2011-11, 2011-7 I.R.B.500
REG-149335-08
Hearing scheduled by
Ann. 2011-26, 2011-14 I.R.B.608
REG-146097-09
Hearing rescheduled by
Ann. 2011-30, 2011-20 I.R.B.791
Revenue Procedures:
72-50
Modified and superseded by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
76-34
Modified and superseded by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
81-70
Obsoleted by
Rev. Proc. 2011-35, 2011-25 I.R.B.890
82-39
Modified and superseded by
Rev. Proc. 2011-33, 2011-25 I.R.B.887
83-23
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
94-17
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
97-27
Clarified and modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Revenue Procedures— Continued:
2001-10
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2002-28
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2003-21
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
2004-34
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Modified and clarified by
Rev. Proc. 2011-18, 2011-5 I.R.B.443
2006-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2006-56
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2008-52
Modified by
Notice 2011-4, 2011-2 I.R.B.282
Rev. Proc. 2011-17, 2011-5 I.R.B.441
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-32
Modified and superseded by
Rev. Proc. 2011-33, 2011-25 I.R.B.887
2009-39
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2010-1
Superseded by
Rev. Proc. 2011-1, 2011-1 I.R.B.1
2010-2
Superseded by
Rev. Proc. 2011-2, 2011-1 I.R.B.90
2010-3
Superseded by
Rev. Proc. 2011-3, 2011-1 I.R.B.111
2010-4
Superseded by
Rev. Proc. 2011-4, 2011-1 I.R.B.123
2010-5
Superseded by
Rev. Proc. 2011-5, 2011-1 I.R.B.167
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin 2010–52, dated December 27,
2010.
2011–25 I.R.B.ivJune 20, 2011

Revenue Procedures— Continued:
2010-6
Superseded by
Rev. Proc. 2011-6, 2011-1 I.R.B.195
2010-7
Superseded by
Rev. Proc. 2011-7, 2011-1 I.R.B.233
2010-8
Superseded by
Rev. Proc. 2011-8, 2011-1 I.R.B.237
2010-9
Superseded by
Rev. Proc. 2011-9, 2011-2 I.R.B.283
2010-15
Updated by
Rev. Proc. 2011-13, 2011-3 I.R.B.318
2010-18
Amplified and modified by
Rev. Proc. 2011-21, 2011-12 I.R.B.560
2010-25
Obsoleted in part by
Rev. Proc. 2011-23, 2011-15 I.R.B.626
2011-1
Corrected by
Ann. 2011-7, 2011-5 I.R.B.446
2011-8
Corrected by
Ann. 2011-8, 2011-5 I.R.B.446
Modified by
Rev. Proc. 2011-36, 2011-25 I.R.B.915
2011-11
Corrected by
Ann. 2011-9, 2011-7 I.R.B.499
2011-14
Modified by
Rev. Proc. 2011-27, 2011-18 I.R.B.740
Rev. Proc. 2011-28, 2011-18 I.R.B.743
Modified and amplified by
Rev. Proc. 2011-22, 2011-18 I.R.B.737
2011-21
Amplified by
Rev. Proc. 2011-26, 2011-16 I.R.B.664
2011-24
Modified by
Notice 2011-46, 2011-25 I.R.B.887
Revenue Rulings:
81-100
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2004-67
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
Revenue Rulings— Continued:
2008-40
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2011-3
Corrected by
Ann. 2011-16, 2011-7 I.R.B.500
Treasury Decisions:
9391
Corrected by
Ann. 2011-12, 2011-9 I.R.B.532
9505
Corrected by
Ann. 2011-10, 2011-7 I.R.B.499
June 20, 2011v2011–25 I.R.B.

2011–25 I.R.B.June 20, 2011

June 20, 20112011–25 I.R.B.

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