Internal Revenue Bulletin 2013-2 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 201
3-2
January 7, 2013
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2013–1, page 252.
Federal rates; adjusted federal rates; adjusted federal
long-termrateandthelong-termexemptrate.For pur-
poses of sections 382, 642, 1274, 1288, and other sections
of the Code, tables set forth the rates for January 2013.
Rev. Proc. 2013–11, page 269.
This procedure provides exceptions under section 6011 of the
Code to the loss transaction filter, which is a reportable trans-
action under Regulations section 1.6011–4(b)(5). Rev. Proc.
2004–66 modified and superseded.
Announcement 2013–2, page 271.
Announcement of results of the 2011–2012 allocation
round of the Qualifying Advanced Coal Project Program.
This announcement discloses the results of the 2011–12 allo-
cation round, which is the final allocation round under the sec-
ond phase of the qualifying advanced coal project program of
section 48A of the Code.
EXEMPT ORGANIZATIONS
Rev. Proc. 2013–9, page 255.
Determination letters and rulings.This document sets forth
procedures for issuing determination letters and rulings on the
exempt status of organizations under sections 501 and 521
oftheCode. Theproceduresalsoapplytotherevocation
and modification of determination letters or rulings, and pro-
vide guidance on the exhaustion of administrative remedies for
purposes of declaratory judgment under section 7428 of the
Code. Rev. Proc. 2012–9 superseded.
Rev. Proc. 2013–10, page 267.
This document sets forth procedures for issuing determination
letters and rulings on private foundation status under section
509(a) of the Code, operating foundation status under section
4942(j)(3), and exempt operating foundation status under sec-
tion 4940(d)(2), of organizations exempt from Federal income
tax under section 501(c)(3). This revenue procedure also ap-
plies to the issuance of determination letters on the foundation
status under section 509(a)(3) of nonexempt charitable trusts
described in section 4947(a)(1). Rev. Proc. 2012–10 super-
seded.
ADMINISTRATIVE
Announcement 2013–3, page 271.
Corrections and Clarifications to Publication 1220.This
announcement provides updated information for items in Pub-
lication 1220, Specifications for Filing Forms 1097, 1098,
1099, 3921, 3922, 5498, 8935, and W–2G Electronically, Re-
vised August 13, 2012. Rev. Proc. 2012–30 corrected and
clarified.
Finding Lists begin on page ii.

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.
January 7, 20132013–2 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 42.—L
ow-Income
Housing Credi
t
The adjusted a
pplicable federal short-term, mid-
term, and long
-term rates are set forth for the month
of January 201
3. See Rev. Rul. 2013-1, page 252.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term rates
are set forth for the month of January 2013. See Rev.
Rul. 2013-1, page 252.
Section 382.—Limitation
on Net Operating Loss
Carryforwa
rds and Certain
Built-in Losses Following
Ownership Change
The adjusted applicable federal long-term rate is
set forth for the month of January 2013. See Rev.
Rul. 2013-1, page 252.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
Section 468.—Special
Rules for Mining and Solid
Waste
Reclamation and
Closi
ng Costs
The ad
justed applicable federal short-term, mid-
term,
and long-term rates are set forth for the month
of Jan
uary 2013. See Rev. Rul. 2013-1, page 252.
Section 482.—
Allocation
of Income and D
eductions
Among Taxpaye
rs
Federal short
-term, mid-term, and long-term rates
are set forth f
or the month of January 2013. See Rev.
Rul. 2013-1,
page 252.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
Section 642.—Special
Rules for Credits and
Deductions
Federal short-term, mid-term, and long-term rates
are set forth for the month of January 2013. See Rev.
Rul. 2013-1, page 252.
Section 807.—Rules for
Certain Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
Section 1274.—Determi-
nation of Issue Price in the
Case of Certain Debt Instru-
ments Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal rates;
adjusted federal long-term rate and the
long-term exempt rate.For purposes of
sections 382,
642, 1274, 1288, and other
sections of th
e Code, tables set forth the
rates for Janu
ary 2013.
Rev. Rul. 2013
–1
This revenue
ruling provides various
prescribed r
ates for federal income tax
purposes for
January 2013 (the current
month). Tabl
e 1 contains the short-term,
mid-term, an
d long-term applicable fed-
eral rates (
AFR) for the current month
for purpose
s of section 1274(d) of the
Internal Re
venue Code. Table 2 contains
the short-t
erm, mid-term, and long-term
adjusted a
pplicable federal rates (ad-
justed AFR
) for the current month for
purposes o
f section 1288(b). Table 3 sets
forth the a
djusted federal long-term rate
and the lo
ng-term tax-exempt rate de-
scribed i
n section 382(f). Table 4 contains
the appro
priate percentages for deter-
mining th
e low-income housing credit
describe
d in section 42(b)(1) for build-
ings pla
ced in service during the current
month. H
owever, under section 42(b)(2),
the appl
icable percentage for non-feder-
ally sub
sidized new buildings placed in
service
after July 30, 2008, and before
Decemb
er 31, 2013, shall not be less than
9%. Tab
le 5 contains the federal rate
for det
ermining the present value of an
annuit
y, an interest for life or for a term
of year
s, or a remainder or a reversionary
inter
est for purposes of section 7520.
Final
ly, Table 6 contains the deemed
rate o
f return for transfers made during
calen
dar year 2013 to pooled income funds
descr
ibed in § 642(c)(5) that have been
in ex
istence for less than 3 taxable years
imme
diately preceding the taxable year in
whic
h the transfer was made.
2013–2 I.R.B.252January 7, 2013

REV. RUL. 2013–1 TABLE 1
Applicable Federal Rates (AFR) for January 2013
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR.21%.21%.21%.21%
110% AFR.23%.23%.23%.23%
120% AFR
.25%.25%.25%.25%
130% AFR.27%.27%.27%.27%
Mid-term
AFR.87%.87%.87%.87%
110% AFR.96%.96%.96%.96%
120% AFR1.04%1.04%1.04%1.04%
130% AFR1.13%1.13%1.13%1.13%
150% AFR
1.31%1.31%1.31%1.31%
175% AFR1.53%1.52%1.52%1.52%
Long-term
AFR2.31%2.30%2.29%2.29%
110% AFR
2.55%2.53%2.52%2.52%
120% AFR2.78%2.76%
2.75%
2.74%
130% AFR3.01%2.99%2.98%2.97%
REV. RUL. 2013–1 TABLE 2
Adjusted AFR for January 2013
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted
AFR
.25%.25%.25%.25%
Mid-term adjusted AFR.94%.94%.94%.94%
Long-term adjusted
AFR
2.66%2.64%2.63%2.63%
REV. RUL. 2013–1 TABLE 3
Rates Under Section 382 for January 2013
Adjusted federal long-term rate for the current month2.66%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted
federal long-term rates for the current month and the prior two months.)2.84%
REV. RUL. 2013–1 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for January 2013
Note: Under Section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July
30, 2008, and before December 31, 2013, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.36%
Appropriate percentage for the 30% present value low-income housing credit3.16%
January 7, 20132532013–2 I.R.B.

REV. RUL. 2013–1 TABLE 5
Rate Under Section 7520 for January 2013
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest1.0%
REV. RUL. 2013–1 TABLE 6
Deemed Rate for Transfers to New Pooled Income Funds During 2013
Deemed rate of return for transfers during 2013 to pooled income funds that have been in existence for
less than 3 taxable years1.8%
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
Section 7872.—Treatment
of Loans With Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of January 2013. See Rev. Rul. 2013-1, page 252.
2013–2 I.R.B.254January 7, 2013

Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.201: Rulings and determination letters.
Rev. Proc. 2013–9
TABLE OF CONTENTS
SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?
.............................................. 256
.01Descriptionoftermsusedinthisrevenueprocedure.............................................................. 256
.02Updatedannually............................................................................................ 257
SECTION 2. NATURE OF CHANGES AND RELATED REVENUE PROCEDURES......................................... 257
.01Rev.Proc.2012–9issuperseded.............................................................................. 257
.02Relatedrevenueprocedures................................................................................... 257
.03WhatchangeshavebeenmadetoRev.Proc.2012–9?............................................................ 257
SECTION 3. WHAT ARE THE PROCEDURES FOR REQUESTING RECOGNITION OF EXEMPT
STATUS?
............................................................................................. 258
.01Ingeneral................................................................................................... 258
.02Userfee.................................................................................................... 258
.03Form1023application....................................................................................... 258
.04Form1024application....................................................................................... 258
.05Letterapplication............................................................................................ 258
.06Form1028application....................................................................................... 258
.07Form8871noticeforpoliticalorganizations.................................................................... 258
.08Requirementsforasubstantiallycompletedapplication .......................................................... 258
.09Terroristorganizationsnoteligibletoapplyforrecognitionofexemption........................................... 259
SECTION 4. WHAT ARE THE STANDARDS FOR ISSUING A DETERMINATION LETTER OR RULING
ON EXEMPT STATUS?
................................................................................. 259
.01Exemptstatusmustbeestablishedinapplicationandsupportingdocuments ........................................ 259
.02Determinationletterorrulingbasedsolelyonadministrativerecord................................................ 259
.03Exemptstatusmayberecognizedinadvanceofactualoperations ................................................. 260
.04NoletterifexemptstatusissueinlitigationorunderconsiderationwithintheService................................ 260
.05Incompleteapplication....................................................................................... 260
.06Evenifapplicationiscomplete,additionalinformationmayberequired............................................ 260
.07Expeditedhandling.......................................................................................... 260
.08Maydeclinetoissuegroupexemption ......................................................................... 261
SECTION 5. WHAT OFFICES ISSUE AN EXEMPT STATUS DETERMINATION LETTER OR RULING?.................... 261
.01EODeterminationsissuesadeterminationletterinmostcases .................................................... 261
.02CertainapplicationsreferredtoEOTechnical................................................................... 261
.03Technicaladvicemayberequestedincertaincases .............................................................. 261
.04Technicaladvicemustberequestedincertaincases.............................................................. 261
SECTION 6. WITHDRAWAL OF AN APPLICATION................................................................... 261
.01Applicationmaybewithdrawnpriortoissuanceofadeterminationletterorruling .................................. 261
.02§7428implicationsofwithdrawalofapplicationunder§501(c)(3)................................................ 261
SECTION 7. WHAT ARE THE PROCEDURES WHEN EXEMPT STATUS IS DENIED?..................................... 262
.01Proposedadversedeterminationletterorruling ................................................................. 262
.02AppealofaproposedadversedeterminationletterissuedbyEODeterminations .................................... 262
.03ProtestofaproposedadverserulingissuedbyEOTechnical...................................................... 262
.04Finaladversedeterminationletterorrulingwherenoappealorprotestissubmitted.................................. 262
.05HowEODeterminationshandlesanappealofaproposedadversedeterminationletter .............................. 262
.06ConsiderationbytheAppealsOffice........................................................................... 262
.07IfaprotestofaproposedadverserulingissubmittedtoEOTechnical.............................................. 262
.08Anappealorprotestmaybewithdrawn ........................................................................ 263
January 7, 20132552013–2 I.R.B.

.09Appealorprotestandconferencerightsnotapplicableincertainsituations ......................................... 263
SECTION 8. DISCLOSURE OF APPLICATIONS AND DETERMINATION LETTERS AND RULINGS....................... 263
.01Disclosureofapplications,supportingdocuments,andfavorabledeterminationlettersandrulings..................... 263
.02Disclosureofadversedeterminationlettersorrulings............................................................ 263
.03DisclosuretoStateofficialswhentheServicerefusestorecognizeexemptionunder§501(c)(3)....................... 263
.04DisclosuretoStateofficialsofinformationabout§501(c)(3)applicants............................................ 263
SECTION 9. REVIEW OF DETERMINATION LETTERS BY EO TECHNICAL........................................... 264
.01DeterminationlettersmaybereviewedbyEOTechnicaltoassureuniformity....................................... 264
.02ProceduresforcaseswhereEOTechnicaltakesexceptiontoadeterminationletter .................................. 264
SECTION 10. DECLARATORY JUDGMENT PROVISIONS OF § 7428................................................... 264
.01Actualcontroversyinvolvingcertainissues..................................................................... 264
.02Exhaustionofadministrativeremedies......................................................................... 264
.03Notearlierthan270daysafterseekingdetermination............................................................ 264
.04Servicemusthavereasonabletimetoactonanappealorprotest .................................................. 264
.05Finaldeterminationtowhich§7428applies.................................................................... 264
SECTION 11. EFFECT OF DETERMINATIONLETTER OR RULING RECOGNIZING EXEMPTION....................... 265
.01Effectivedateofexemption................................................................................... 265
.02Relianceondeterminationletterorruling....................................................................... 265
SECTION 12. REVOCATION OR MODIFICATION OF DETERMINATION LETTER OR RULING
RECOGNIZING EXEMPTION
.......................................................................... 265
.01Revocationormodificationofadeterminationletterorrulingmayberetroactive.................................... 265
.02Appealandconferenceproceduresinthecaseofrevocationormodificationofexemptstatusletter.................... 266
SECTION 13. EFFECT ON OTHER REVENUE PROCEDURES......................................................... 266
SECTION 14. EFFECTIVE DATE.................................................................................... 266
SECTION 15. PAPERWORK REDUCTION ACT....................................................................... 266
DRAFTING INFORMATION........................................................................................ 267
SECTION 1. WHAT IS THE
PURPOSE OF THIS REVENUE
PROCEDURE?
This revenue procedure sets forth proceduresfor issuing determination letters and rulings
on the exempt status of organizations under §§ 501 and 521 of the Internal Revenue Code other
than those subject to Rev. Proc. 2013–6, last bulletin (relating to pension, profit-sharing, stock
bonus, annuity, and employee stock ownership plans). Generally, the Service issues these de-
termination letters and rulings in response to applications for recognition of exemption from
Federal income tax. These procedures also apply to revocation or modification of determi-
nation letters or rulings. This revenue procedure also provides guidance on the exhaustion of
administrative remedies for purposes of declaratory judgment under § 7428.
Description of terms used in this
revenue procedure
.01 For purposes of this revenue procedure —
(1) The term “Service” means the Internal Revenue Service.
(2) The term “application” means the appropriate form or letter that an organization must
file or submit to the Service for recognition ofexemption from Federal income tax under the
applicable section of the Internal Revenue Code.Seesection 3 for information on specific
forms.
(3) The term “EO Determinations” means the office of the Service that is primarily respon-
sible for processing initial applications for tax-exempt status. It includes the main EO Deter-
minations office located in Cincinnati, Ohio, and other field offices thatare under the direction
and control of the Manager, EO Determinations. Applications are generally processed in the
centralized EO Determinations office in Cincinnati, Ohio. However, some applications may
be processed in other EO Determinations offices or referred to EO Technical.
2013–2 I.R.B.256January 7, 2013

(4) The term “EO Technical” means the office of the Service that is primarily responsible for
issuing letter rulings to taxpayers on exempt organization matters, and for providing technical
advice or technical assistance to other officesof the Service on exempt organization matters.
The EO Technical office is located in Washington, DC. For purposes of this Revenue Procedure
the term “EO Technical” includes EO Guidance. (EO Guidance is the office of the Service that
is responsible for working with the Department of the Treasury and the Office of Chief Counsel
to issue formal guidance items, and also reviews letter rulings, technical advice, and technical
assistance, among other things.)
(5) The term “Appeals Office” means any officeunder the direction and control of the Chief,
Appeals. The purpose of the Appeals Office is to resolve tax controversies, without litigation,
on a fair and impartial basis. The Appeals Office is independent of EO Determinations and EO
Technical.
(6) The term “determination letter” means a written statement issuedby EO Determinations
or an Appeals Office in response to an application for recognition of exemption from Federal
income tax under §§ 501 and 521. This includes a written statement issued by EO Determina-
tions or an Appeals Office on the basis of advice secured from EO Technical pursuant to the
procedures prescribed herein and in Rev. Proc. 2013–5.
(7) The term “ruling” means a written statement issued by EO Technical in response to an
application for recognition of exemption from Federal income tax under §§ 501 and 521.
(8) The term “Code” means the Internal Revenue Code.
Updated annually.02 This revenue procedure is updated annually, but may be modified or amplified during
the year.
SECTION 2. NATURE OF
CHANGES AND RELATED
REVENUE PROCEDURES
Rev. Proc. 2012–9 is superseded.01 This revenue procedure is a general update of Rev. Proc. 2012–9, 2011–2 I.R.B. 261,
which is hereby superseded.
Related revenue procedures.02 This revenue procedure supplements Rev. Proc. 2013–10, this Bulletin, with respect
to the effects of § 7428 on the classification of organizations under §§ 509(a) and 4942(j)(3).
Rev. Proc. 80–27, 1980–1 C.B. 677, sets forth procedures under which exemption may be
recognized on a group basis for subordinate organizations affiliated with and under the general
supervision and control of a central organization. Rev. Proc. 72–5, 1972–1 C.B. 709, pro-
vides information for religious and apostolic organizations seeking recognition of exemption
under § 501(d). General procedures for requests for a determination letter or ruling are pro-
vided in Rev. Proc. 2013–4. User fees for requests for a determination letter or ruling are set
forth in Rev. Proc. 2013–8. Information regarding procedures for organizations described in
§ 501(c)(29) can be found in Rev. Proc. 2012–11, 2012–7 I.R.B. 368.
What changes have been made to
Rev. Proc. 2012–9?
.03 Notable changes to Rev. Proc. 2012–9 that appear in this year’s update include —
(1) The definition of “EO Technical” found in section 1.01 is amended to include reference
to EO Guidance for the purposes of this document.
(2) Section 7.05 is amended to refer to the document submitted by an organization for Ap-
peals office consideration as a “protest.”
(3) Section 9.02 is amended to clarify the particular provisions in Rev. Proc. 2013–5 that
are applicable when EO Technical takes exception to a determination letter.
(4) The provisions in section 11.01 regarding the effect of determination letters or rulings
recognizing exempt status of organizations described in § 501(c), other than §§ 501(c)(3), (9),
(17), and (29), have been revised. Prior to this year, and back to 1962, when such organizations
applied for recognition, the IRS would usuallyrecognize such organizations as tax-exempt
January 7, 20132572013–2 I.R.B.

from the date of formation, no matter how long the interval between the date of formation and
the date of application. In addition to the practicaldifficulties of ascertaining an organization’s
purposes and activities for this period, such recognition is now potentially inconsistent with
the provisions of § 6033(j), which automaticallyrevokes the exempt status of an organization
that fails to file required Form 990 series returns or notices for three consecutive years. The
new procedure adopts a practice similar to the rule for § 501(c)(3) organizations for these orga-
nizations, generally permitting recognition from the date of formation if the organization has
always met the requirements for exemption, has applied within 27 months from the end of the
month in which it was organized, and has not failed to file required Form 990 series returns or
notices for three consecutive years.
(5) Section 12.02 is clarified to indicate that a revocation under § 6033(j) is by operation of
law and therefore an organization will not have an opportunity for appeals consideration.
(6) Reference to Form 4653 isremoved from section 12.02.
SECTION 3. WHAT ARE
THE PROCEDURES FOR
REQUESTING RECOGNITION
OF EXEMPT STATUS?
In general.01 An organization seeking recognition of exempt status under § 501 or § 521 is required
to submit the appropriate application. In the case of a numbered application form, the current
version of the form must be submitted. A central organization that has previously received
recognition of its own exemption can request a group exemption letter by submitting a letter
application along with Form 8718,User Fee for Exempt Organization Determination Letter
Request. SeeRev. Proc. 80–27. Form 8718 is not a determination letter application. Attach
this form to the determination letter application.
User fee.02 An application must be submitted with the correct user fee, as set forth in Rev. Proc.
2013–8.
Form 1023 application.03 An organization seeking recognition of exemption under § 501(c)(3) and § 501(e), (f),
(k), (n), (q), or (r) must submit a completed Form 1023,Application for Recognition of Ex-
emption Under Section 501(c)(3) of the Internal Revenue Code. In the case of an organization
that provides credit counseling services, see § 501(q). In the case of an organization that is a
hospital and is seeking exemption under § 501(c)(3), see § 501(r).
Form 1024 application.04 An organization seeking recognition of exemption under § 501(c)(2), (4), (5), (6), (7),
(8), (9), (10), (12), (13), (15), (17), (19), or (25) must submit a completed Form 1024,Appli-
cation for Recognition of Exemption Under Section 501(a), along with Form 8718. In the case
of an organization that provides credit counseling services and seeks recognition of exemption
under § 501(c)(4), see § 501(q).
Letter application.05 An organization seeking recognition of exemption under § 501(c)(11), (14), (16), (18),
(21), (22), (23), (26), (27), (28), or (29), or under § 501(d), must submit a letter application
along with Form 8718.
Form 1028 application.06 An organization seeking recognition of exemption under § 521 must submit a completed
Form 1028,Application for Recognition of Exemption Under Section 521 of the Internal Rev-
enue Code,along with Form 8718.
Form 8871 notice for political
organizations
.07 A political party, a campaign committee for a candidate for federal, state or local office,
and a political action committee are all political organizations subject to tax under § 527. To be
tax-exempt, a political organization may be required to notify the Service that it is to be treated
as a § 527 organization by electronically filing Form 8871,Political Organization Notice of
Section 527 Status. For details, go to the IRS website atwww.irs.gov/polorgs.
Requirements for a substantially
completed application
.08 A substantially completed application,including a letter application, is one that:
(1) is signed by an authorized individual;
2013–2 I.R.B.258January 7, 2013

(2) includes an Employer Identification Number (EIN);
(3) for organizations other than those described in § 501(c)(3), includes a statement of re-
ceipts and expenditures and a balance sheet for the current year and the three preceding years
(or the years the organization was in existence, ifless than four years), and if the organization
has not yet commenced operations or has not completed one accounting period, a proposed
budget for two full accounting periods and a current statement of assets and liabilities; for or-
ganizations described in § 501(c)(3), see Form 1023 and Notice 1382;
(4) includes a detailed narrative statement of proposed activities, including each of the
fundraising activities of a § 501(c)(3) organization, and a narrative description of anticipated
receipts and contemplated expenditures;
(5) includes a copy of the organizing or enabling document that is signed by a principal
officer or is accompanied by a written declaration signed by an authorized individual certify-
ing that the document is a complete and accuratecopy of the original or otherwise meets the
requirements of a “conformed copy” as outlined in Rev. Proc. 68–14, 1968–1 C.B. 768;
(6) if the organizing or enabling document is in the form of articles of incorporation, includes
evidence that it was filed with and approved by an appropriate state official (e.g., stamped
“Filed” and dated by the Secretary of State); alternatively, a copy of the articles of incorporation
may be submitted if accompanied by a written declaration signed by an authorized individual
that the copy is a complete and accurate copy ofthe original copy that was filed with and
approved by the state; if a copy is submitted, the written declaration must include the date the
articles were filed with the state;
(7) if the organization has adopted by-laws or similar governing rules, includes a current
copy; the by-laws need not be signed if submittedas an attachment to the application for recog-
nition of exemption; otherwise, the by-laws must be verified as current by an authorized indi-
vidual; and
(8) is accompanied by the correct userfee and Form 8718, when applicable.
Terrorist organizations not
eligible to apply for recognition of
exemption
.09 An organization that is identified or designated as a terrorist organization within the
meaning of § 501(p)(2) is not eligible to apply for recognition of exemption.
SECTION 4. WHAT ARE THE
STANDARDS FOR ISSUING A
DETERMINATION LETTER OR
RULING ON EXEMPT STATUS?
Exempt status must be established
in application and supporting
documents
.01 A favorable determination letter or ruling will be issued to an organization only if its
application and supporting documents establish that it meets the particular requirements of the
section under which exemption from Federal income tax is claimed.
Determination letter or ruling
basedsolelyonadministrative
record
.02 A determination letter or ruling on exempt status is issued based solely upon the facts
and representationscontained in the administrative record.
(1) The applicant is responsible for the accuracy of any factual representations contained in
the application.
(2) Any oral representation of additional facts or modification of facts as represented or
alleged in the application must be reduced to writing over the signature of an officer or director
of the taxpayer under a penalties of perjury statement.
(3) The failure to disclose a material fact or misrepresentation of a material fact on the ap-
plication may adversely affect the reliance that would otherwise be obtained through issuance
by the Service of a favorable determination letter or ruling.
January 7, 20132592013–2 I.R.B.

Exempt status may be recognized
in advance of actual operations
.03 Exempt status may be recognized in advance of the organization’s operations if the pro-
posed activities are described in sufficient detail to permit a conclusion that the organization
will clearly meet the particular requirements for exemption pursuant to the section of the Code
under which exemption is claimed.
(1) A mere restatement of exempt purposes or a statement that proposed activities will be
in furtherance of such purposes will not satisfy this requirement.
(2) The organization must fully describe all of the activities in which it expects to engage,
including the standards, criteria, procedures, or other means adopted or planned for carrying out
the activities, the anticipatedsources of receipts, and the natureof contemplated expenditures.
(3) Where the organization cannot demonstrate to the satisfaction of the Service that it qual-
ifies for exemption pursuant to the section of the Code under which exemption is claimed, the
Service will generally issue a proposedadverse determination letter or ruling.See alsosection
7 of this revenue procedure.
No letter if exempt status issue in
litigation or under consideration
within the Service
.04 A determination letter or ruling on exempt status ordinarily will not be issued if an issue
involving the organization’s exempt status under § 501 or § 521 is pending in litigation, is under
consideration within the Service, or if issuanceof a determination letter or ruling is not in the
interest of sound tax administration. If the Service declines to issue a determination or ruling
to an organization seeking exempt status under§ 501(c)(3), the organization may be able to
pursue a declaratory judgment under § 7428, provided that it has exhausted its administrative
remedies.
Incomplete application.05Ifanapplicationdoesnotcontainallofthe items set out in section 3.08 of this revenue
procedure, the Service may return it to the applicant for completion.
(1) In lieu of returning an incomplete app
lication, the Service may retain the application and
request additional information needed
for a substantially completed application.
(2) In the case of an application under § 501(c)(3) that is returned incomplete, the 270-day
period referred to in § 7428(b)(2) will not be considered as starting untilthe date a substantially
completed Form 1023 is refiled with or remailed to the Service. If the application is mailed
to the Service and a postmark is not evident, the 270-day period will start to run on the date
the Service actually receives the substantially completed Form 1023. The same rules apply for
purposes of the notice requirement of § 508.
(3) Generally, the user fee will not be refunded if an incomplete application is filed.See
Rev. Proc. 2013–8, section 10.
Even if application is complete,
additional information may be
required
.06 Even though an application is substantially complete, the Service may request additional
information before issuing a determination letter or ruling.
(1) If the application involves an issue where contrary authorities exist,an applicant’s failure
to disclose and distinguish contrary authorities may result in requests for additional informa-
tion, which could delay final action on the application.
(2) In the case of an application under § 501(c)(3), the period of time beginning on the date
the Service requests additional information until the date the information is submitted to the
Service will not be counted for purposes of the 270-day period referred to in § 7428(b)(2).
Expedited handling.07 Applications are normally processed in the order of receipt by the Service. However,
expedited handling of an application may be approved where a request is made in writing and
contains a compelling reason for processing the application ahead of others. Upon approval
of a request for expedited handling, an application will be considered out of its normal order.
This does not mean the application will be immediately approved or denied. Circumstances
generally warranting expedited processing include:
(1) a grant to the applicant is pending and the failure to secure the grant may have an adverse
impact on the organization’s ability to continue to operate;
2013–2 I.R.B.260January 7, 2013

(2) the purpose of the newly created organization is to provide disaster relief to victims of
emergencies such as flood and hurricane; and
(3) there have been undue delays in issuing a determination letter or ruling caused by a
Service error.
Maydeclinetoissuegroup
exemption
.08 The Service may decline to issue a group exemption letter when appropriate in the in-
terest of sound tax administration.
SECTION 5. WHAT OFFICES
ISSUEANEXEMPTSTATUS
DETERMINATION LETTER
OR RULING?
EO Determinations issues a
determination letter in most cases
.01 Under the general procedures outlinedin Rev. Proc. 2013–4, EO Determinations is
authorized to issue determination letters on applications for exempt status under §§ 501 and
521.
Certain applications referred to
EO Technical
.02 EO Determinations will refer to EO Technical those applications that present issues
which are not specifically covered by statute or regulations, or by a ruling, opinion, or court
decision published in the Internal Revenue Bulletin. In addition, EO Determinations will refer
those applications that have been specifically reserved by revenue procedure or by other official
Service instructions for handling by EO Technical for purposes of establishing uniformity or
centralized control of designated categories of cases. EO Technical will notify the applicant
organization upon receipt of a referred application, and will consider each such application and
issue a ruling directly to the organization.
Technical advice may be requested
in certain cases
.03 If at any time during the course of consideration of an exemption application by EO
Determinations the organization believes that its case involves an issue on which there is no
published precedent, or there has been non-uniformity in the Service’s handling of similar
cases, the organization may request that EO Determinations either refer the application to EO
Technical or seek technical advice from EO Technical.SeeRev. Proc. 2013–5, sections 4.04
and 4.05.
Technical advice must be
requested in certain cases
.04 If EO Determinations proposes to recognize the exemption of an organization to which
EO Technical had issued a previous contrary ruling or technical advice, EO Determinations
must seek technical advice from EO Technical before issuing a determination letter. This does
not apply where EO Technical issued an adverse ruling and the organization subsequently made
changes to its purposes, activities, or operations to remove the basis for which exempt status
was denied.
SECTION 6. WITHDRAWAL OF
AN APPLICATION
Application may be withdrawn
prior to issuance of a
determination letter or ruling
.01 An application may only be withdrawn uponthe written request of an authorized indi-
vidual prior to the issuance of a determination letter or ruling. The issuance of a determination
letter or ruling includes the issuance of a proposed adverse determination letter or ruling.
(1) When an application is withdrawn, the Service will retain the application and all sup-
porting documents. The Service may consider the information submitted in connection with
the withdrawn request in a subsequent examination of the organization.
(2) Generally, the user fee will not be refunded if an application is withdrawn.SeeRev.
Proc. 2013–8, section 10.
§ 7428 implications of withdrawal
of application under § 501(c)(3)
.02 The Service will not consider the withdrawal of an application under § 501(c)(3) as
either a failure to make a determination within the meaning of § 7428(a)(2) or as an exhaustion
of administrative remedies within the meaning of § 7428(b)(2).
January 7, 20132612013–2 I.R.B.

SECTION 7. WHAT ARE
THE PROCEDURES WHEN
EXEMPT STATUS IS DENIED?
Proposed adverse determination
letter or ruling
.01 If EO Determinations or EO Technical reaches the conclusion that the organization does
not satisfy the requirements for exempt status pursuant to the section of the Code under which
exemption is claimed, the Service generally will issue a proposed adverse determination letter
or ruling, which will:
(1) include a detailed discussion of the Service’s rationale for the denial of tax-exempt sta-
tus; and
(2) advise the organization of its opportunity to appeal or protest the decision and request a
conference.
Appeal of a proposed adverse
determination letter issued by EO
Determinations
.02 A proposed adverse determination letterissued by EO Determinations will advise the
organization of its opportunity to appeal the determination by requesting Appeals Office con-
sideration. To do this, the organization must submit a statement of the facts, law and arguments
in support of its position within 30 days from the date of the adverse determination letter. The
organization must also state whether it wishes an Appeals Office conference. Any determina-
tion letter issued on the basis of technical advice from EO Technical may not be appealed to
the Appeals Office on issues that were the subject of the technical advice.
Protest of a proposed adverse
ruling issued by EO Technical
.03 A proposed adverse ruling issued by EO Technical will advise the organization of its
opportunity to file a protest statement within30 days and to request a conference. If a confer-
ence is requested, the conference procedures outlined in Rev. Proc. 2013–4, section 12, are
applicable.
Final adverse determination letter
or ruling where no appeal or
protest is submitted
.04 If an organization does not submit a timely appeal of a proposed adverse determination
letter issued by EO Determinations, or a timely protest of a proposed adverse ruling issued by
EO Technical, a final adverse determination letter or ruling will be issued to the organization.
The final adverse letter or ruling will provideinformation about the filing of tax returns and
the disclosure of the proposed and final adverse letters or rulings.
How EO Determinations handles
an appeal of a proposed adverse
determination letter
.05 If an organization submits a protest of the proposed adverse determination letter, EO
Determinations will first review the protest, and,if it determines that the organization qualifies
for tax-exempt status, issue a favorable exempt status determination letter. If EO Determina-
tions maintains its adverse position after reviewing the protest, it will forward the protest and
the exemption application case file to the Appeals Office.
Consideration by the Appeals
Office
.06 The Appeals Office will consider the organization’s appeal. If the Appeals Office agrees
with the proposed adverse determination, it will either issue a final adverse determination or,
if a conference was requested, contact the organization to schedule a conference. At the end
of the conference process, which may involve the submission of additional information, the
Appeals Office will either issue a final adversedetermination letter or a favorable determina-
tion letter. If the Appeals Office believes that an exemption or private foundation status issue
is not covered by published precedent or that there is non-uniformity, the Appeals Office must
request technical advice from EO Technical inaccordance with Rev. Proc. 2013–5, sections
4.04 and 4.05.
If a protest of a proposed
adverse ruling is submitted to EO
Technical
.07Ifanorganizationsubmitsaprotestofaproposed adverse exempt status ruling, EO
Technical will review the protest statement.If the protest convinces EO Technical that the
organization qualifies for tax-exempt status, afavorable ruling will be issued. If EO Technical
maintains its adverse position after reviewing the protest, it will either issue a final adverse
ruling or, if a conference was requested, contact the organization to schedule a conference. At
the end of the conference process, which may involve the submission of additional information,
EO Technical will either issue a final adverse ruling or a favorable exempt status ruling.
2013–2 I.R.B.262January 7, 2013

An appeal or protest may be
withdrawn
.08 An organization may withdraw its appealor protest before the Service issues a final
adverse determination letter or ruling. Upon receipt of the withdrawal request, the Service will
complete the processing of the case in the same manner as if no appeal or protest was received.
Appeal or protest and conference
rights not applicable in certain
situations
.09 The opportunity to appeal or protest a proposed adverse determination letter or ruling
and the conference rights described above are not applicable to matters where delay would be
prejudicial to the interests of the Service (such as in cases involving fraud, jeopardy, the immi-
nence of the expiration of the statute of limitations, or where immediate action is necessary to
protect the interestsof the Government).
SECTION 8. DISCLOSURE
OF APPLICATIONS AND
DETERMINATION LETTERS
AND RULINGS
Sections 6104 and 6110 provide rules for the disclosure of applications, including support-
ing documents, and determination letters and rulings.
Disclosure of applications,
supporting documents, and
favorable determination letters or
rulings
.01 The applications, any supporting documents, and the favorable determination letter or
ruling issued, are available for public inspection under § 6104(a)(1). However, there are certain
limited disclosure exceptions for a trade secret, patent, process, style of work, or apparatus, if
the Service determines that the disclosure of theinformation would adversely affect the organ-
ization.
(1) The Service is required to make the applications, supporting documents, and favorable
determination letters or rulings available upon request. The public can request this information
by submitting Form 4506–A,Request for Public Inspection or Copy of Exempt or Political Or-
ganization IRS Form.Organizations should ensure that applications and supporting documents
do not include unnecessary personal identifying information (suchas bank account numbers
or social security numbers) that could result inidentity theft or otheradverse consequences if
publicly disclosed.
(2) The exempt organization is required to make its exemption application, supporting doc-
uments, and determination letter or ruling available for public inspection without charge. For
more information about the exempt organization’s disclosure obligations, see Publication 557,
Tax-Exempt Status for Your Organization.
Disclosure of adverse
determination letters or rulings
.02 The Service is required to make adverse determination letters and rulings available for
public inspection under § 6110. Upon issuanceof the final adverse determination letter or
ruling to an organization, both the proposed adverse determination letter or ruling and the final
adverse determination letter or ruling will be released pursuant to § 6110.
(1) These documents are made available to the public after the deletion of names, addresses,
and any other information that might identify the taxpayer.See§ 6110(c) for other specific
disclosure exemptions.
(2) The final adverse determination letter or ruling will enclose Notice 437,Notice of Inten-
tion to Disclose,and redacted copies of the final and proposed adverse determination letters
or rulings. Notice 437 provides instructions ifthe organization disagrees with the deletions
proposed by the Service.
Disclosure to State officials when
the Service refuses to recognize
exemption under § 501(c)(3)
.03 The Service may notify the appropriate Stateofficials of a refusal to recognize an organ-
ization as tax-exempt under § 501(c)(3).See§ 6104(c). The notice to the State officials may
include a copy of a proposed or final adverse determination letter or ruling the Service issued
to the organization. In addition, upon request by the appropriate State official, the Service may
make available for inspection and copying the exemption application and other information
relating to the Service’s determination on exempt status.
Disclosure to State officials of
information about § 501(c)(3)
applicants
.04 The Service may disclose to State officialsthe name, address, and identification number
of any organization that has applied for recognition of exemption under § 501(c)(3).
January 7, 20132632013–2 I.R.B.

SECTION 9. REVIEW OF
DETERMINATION LETTERS
BY EO TECHNICAL
Determination letters may be
reviewed by EO Technical to
assure uniformity
.01 Determination letters issued by EO Determinations may be reviewed by EO Technical,
ortheOfficeoftheAssociateChiefCounsel(Passthroughs and Special Industries) (for cases
under § 521), to assure uniform application of the statutes or regulations, or rulings, court
opinions, or decisions published in the Internal Revenue Bulletin.
Procedures for cases where EO
Technical takes exception to a
determination letter
.02 If EO Technical takes exception to a determination letter issued by EO Determinations,
the manager of EO Determinations will be advised. If EO Determinations notifies the organi-
zation of the exception taken, and the organization disagrees withthe exception, the file will be
returned to EO Technical. The referral to EO Technical will be treated as a request for technical
advice, and the procedures in sections 14, 15,and 16 of Rev. Proc. 2013–5 will be followed.
SECTION 10. DECLARATORY
JUDGMENT PROVISIONS OF
§7428
Actual controversy involving
certain issues
.01 Generally, a declaratory judgment proceeding under § 7428 can be filed in the United
States Tax Court, the United States Court of Federal Claims, or the district court of the United
States for the District of Columbia with respect to an actual controversy involving a determina-
tion by the Service or a failureof the Service to make a determination with respect to the initial
or continuing qualification or classification of an organization under § 501(c)(3) (charitable,
educational, etc.); § 170(c)(2) (deductibilityof contributions); § 509(a) (private foundation
status); § 4942(j)(3) (operating foundationstatus); or § 521 (farmers cooperatives).
Exhaustion of administrative
remedies
.02 Before filing a declaratory judgment action, an organization must exhaust its adminis-
trative remedies by taking, in a timely manner,all reasonable steps to secure a determination
from the Service. These include:
(1) the filing of a substantially completed application Form 1023 under § 501(c)(3) pursuant
to section 3.08 of this revenue procedure, or the request for a determination of foundation status
pursuant to Rev. Proc. 2013–10, this Bulletin, or its successor;
(2) in appropriate cases, requesting relief pursuant to Treas. Reg. § 301.9100–1 of the Pro-
cedure and Administration Regulations regarding the extension of time for making an election
or application for relief from tax;
(3) the timely submission of all additional information requested by the Service to perfect
an exemption application or request for determination of private foundation status; and
(4) exhaustion of all administrative appeals available within the Service pursuant to section
7 of this revenue procedure.
Not earlier than 270 days after
seeking determination
.03 An organization will in no event be deemed to have exhausted its administrative reme-
dies prior to the earlier of:
(1) the completion of the steps in section 10.02, and the sendi
ng by the Service by certified
or registered mail of a final determination letter or ruling
;or
(2) the expiration of the 270-day period described in § 7428(b)(2) in a case where the Service
has not issued a final determination letter or ruling, and the organization has taken, in a timely
manner, all reasonable steps to secure a determination letter or ruling.
Service must have reasonable time
toactonanappealorprotest
.04 The steps described in section 10.02 willnot be considered completed until the Service
has had a reasonable time to act upon an appeal or protest, as the case may be.
Final determination to which
§7428applies
.05 A final determination to which § 7428 applies is a determination letter or ruling, sent by
certified or registered mail, which holds that the organization is not described in § 501(c)(3) or
§ 170(c)(2), is a public charity described in a part of § 509 or § 170(b)(1)(A) other than the part
2013–2 I.R.B.264January 7, 2013

under which the organization requested classification, is not a private foundation as defined in
§ 4942(j)(3), or is a private foundation and not a public charity described in a part of § 509 or
§ 170(b)(1)(A).
SECTION 11. EFFECT OF
DETERMINATION LETTER
OR RULING RECOGNIZING
EXEMPTION
Effectivedateofexemption.01 A determination letter or ruling recognizing exemption of an organization described in
§ 501(c), other than § 501(c)(29), is usually effective as of the date of formation of an or-
ganization if: (1) its purposes and activities prior to the date of the determination letter or
ruling have been consistent with the requirements for exemption; (2) it has not failed to file
required Form 990 series returns or notices for three consecutive years; and (3) it has filed
an application for recognition of exemptionwithin 27 months from the end of the month in
which it was organized. Special rules may apply to an organization applying for exemption
under §§ 501(c)(3), (9) or (17). See §§ 505 and 508, and Treas. Reg. §§ 1.508–1(a)(2),
1.508–1(b)(7), and 301.9100–2(a)(2)(iii)–(iv). In addition, special rules apply with respect to
organizations described in § 501(c)(29). See Rev. Proc. 2012–11, 2012–7 I.R.B. 368.
(1) If the Service requires the organization to alter its activities or make substantive amend-
ments to its enabling instrument, the exemption will be effective as of the date specified in a
determination letter or ruling.
(2) If the Service requires the organization to make a nonsubstantive amendment, exemp-
tion will ordinarily be recognized as of the date of formation. Examples of nonsubstantive
amendments include correction of a clerical error in the enabling instrument or the addition of
a dissolution clause where the activities of the organization prior to the determination letter or
ruling are consistent with the requirementsfor exemption.
(3) An organization that otherwise meets therequirements for tax-exempt status and the
issuance of a determination letter or ruling that does not meet the requirements for recognition
from date of formation will generally be recognized from the postmark date of its application.
(4) Organizations that c
laim exempt status under § 501(c) generally must file annual Form
990 series returns or not
ices, even if they have not yet received their determination letter or
ruling recognizing exe
mption. If an organization fails to file required Form 990 series returns
or notices for three con
secutive years, its exemption will be automatically revoked by operation
of § 6033(j). Such an org
anization may apply for reinstatement of its exempt status, and such
recognition may be gran
ted retroactively, only in accordance with the procedure described in
Notice 2011–44, 2011–2
5 I.R.B. 883.
Reliance on determination letter
or ruling
.02 A determination letter or ruling recognizing exemption may not be relied upon if there is
a material change, inconsistent with exemption, in the character, the purpose, or the method of
operation of the organization, or a change in the applicable law. Also, a determination letter or
ruling may not be relied upon if it was based on any inaccurate material factual representations.
Seesection 12.01.
SECTION 12. REVOCATION
OR MODIFICATION OF
DETERMINATION LETTER
OR RULING RECOGNIZING
EXEMPTION
A determination letter or ruling recognizing exemption may be revoked or modified: (1) by
a notice to the taxpayer to whom the determination letter or ruling was issued; (2) by enactment
of legislation or ratification of a tax treaty;(3) by a decision of the Supreme Court of the United
States; (4) by the issuance of temporary or final regulations; (5) by the issuance of a revenue
ruling, revenue procedure, or other statement published in the Internal Revenue Bulletin; or
(6) automatically, pursuant to § 6033(j), for failure to file a required annual return or notice for
three consecutive years.
Revocation or modification of a
determination letter or ruling may
be retroactive
.01 The revocation or modification of a determination letter or ruling recognizing exemp-
tion may be retroactive if there has been a change in the applicable law, the organization omit-
ted or misstated a material fact, operated in a manner materially different from that originally
represented, or, in the case of organizations to which § 503 applies, engaged in a prohibited
January 7, 20132652013–2 I.R.B.

transaction with the purpose of diverting corpus or income of the organization from its ex-
empt purpose and such transaction involved a substantial part of the corpus or income of such
organization. In certain cases an organization may seek relief from retroactive revocation or
modification of a determination letter or ruling under § 7805(b). Requests for § 7805(b) relief
are subject to the procedures set forth in Rev. Proc. 2013–4.
(1) Where there is a material change, inconsistent with exemption, in the character, the pur-
pose, or the method of operation of an organization, revocation or modification will ordinarily
take effect as of the date of such material change.
(2) In the case where a determination letter or ruling is issued in error or is no longer in
accord with the Service’s positionand § 7805(b) relief is granted (seesections 13 and 14 of
Rev. Proc. 2013–4), ordinarily, the revocation or modification will be effective not earlier than
the date when the Service modifies or revokesthe original determination letter or ruling.
Appeal and conference procedures
in the case of revocation or
modification of exempt status
letter
.02 In the case of a revocation or modification of a determination letter or ruling
, the appeal
and conference procedures are generallythe same as set out in section 7 of this r
evenue proce-
dure, including the right of the organization to request that EO Determination
s or the Appeals
Office seek technical advice from EO Technical. However, appeal and conferenc
erightsare
not applicable to matters where delay would be prejudicial to the interests of t
he Service (such
as in cases involving fraud, jeopardy, the imminence of the expiration of the st
atute of lim-
itations, or where immediate action is necessary to protect the interests of t
he Government).
Organizations revoked under § 6033(j) will not have an opportunity for Appeal
consideration.
(1) If the case involves an exempt status issue on which EO Technical had issued a previous
contrary ruling or technical advice, EO Determinations generally must seek technical advice
from EO Technical.
(2) EO Determinations does not have to seek technical advice if the prior ruling or technical
advice has been revoked by subsequent contrary published precedent or if the proposed revo-
cation involves a subordinate unit of an organization that holds a group exemption letter issued
by EO Technical, the EO Technical ruling or technical advice was issued under the Internal
Revenue Code of 1939 or prior revenue acts.
SECTION 13. EFFECT
ON OTHER REVENUE
PROCEDURES
Rev. Proc. 2012–9 is superseded.
SECTION 14. EFECTIVE DATEThis revenue procedure is effective January 7, 2013.
SECTION 15. PAPERWORK
REDUCTION ACT
The collection of information for a letter application under section 3.05 of this revenue pro-
cedure has been reviewed and approved by the Office of Management and Budget (OMB)
in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control number
1545–2080. All other collections of information under this revenue procedure have been ap-
proved under separate OMB control numbers.
An agency may not conduct or sponsor, and a person is not required to respond to, a collec-
tion of information unless the collection of information displays a valid OMB control number.
The collection of this information is required if an organization wants to be recognized as
tax-exempt by the Service. We need the information to determine whether the organization
meets the legal requirements for tax-exempt status. In addition, this information will be used
to help the Service delete certain information from the text of an adverse determination letter
or ruling before it is made available for public inspection, as required by § 6110.
The time needed to complete and file a letter application will vary depending on individual
circumstances. The estimated average time is 10 hours.
Books and records relating to the collection of information must be retained as long as their
contents may become material inthe administration of any internal revenue law. The rules
governing the confidentiality of letter applications are covered in § 6104.
2013–2 I.R.B.266January 7, 2013

DRAFTING INFORMATIONThe principal author of this revenue procedure is Mr. Jonathan Carter of the Exempt Orga-
nizations, 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), or send an e-mail totege.eo@irs.govand include “Question about Rev. Proc.
2013–9” in the subject line.
Rev. Proc. 2013–10
SECTION
1. PURPOSE AND SCOPE
The purpose of this revenue procedure
is to set forth updated procedures of the
Internal Revenue Service (the “Service”)
with respect to issuing rulings and deter-
mination letters on private foundation sta-
tus under § 509(a) of the Internal Revenue
Code, operating foundation status under
§ 4942(j)(3), and exempt operating foun-
dation status under § 4940(d)(2), of orga-
nizations exempt from Federal income tax
under § 501(c)(3). This revenue procedure
also applies to the issuance of determina-
tion letters on the foundation status under
§ 509(a)(3) of nonexempt charitable trusts
describedin§4947(a)(1).
SEC
TION 2. WHAT CHANGES
HAV
E BEEN MADE TO REV. PROC.
201
2–10?
.01 This revenue procedure is a general
update of Rev. Proc. 2012–10, 2012–2
I.R.B. 273.
.02 Section 7.01 is amended to clarify
that subordinate organizations included in
a group exemption letter wishing to change
public charity status must do so by filing
Form 8940.
S
ECTION 3. BACKGROUND
.01 All § 501(c)(3) organizations are
classified as private foundations under
§ 509(a) unless they qualify as a public
charity under § 509(a)(1) (which cross-ref-
erences § 170(b)(1)(A)(i)–(vi)), (2), (3),
or (4).SeeTreas. Reg. §§ 1.170A–9,
1.509(a)–1 through 1.509(a)–7. The Ser-
vice determines an organization’s private
foundation or public charity status when
the organization files its Form 1023. This
status will be included in the organiza-
tion’s determination letter.
.02 In its Form 990,Return of Or-
ganization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1)
of the Internal Revenue Code (except
black lung benefit trust or private founda-
tion), a public charity indicates the para-
graph of § 509(a), and subparagraph of
§ 170(b)(1)(A), if applicable, under which
it qualifies as a public charity. Because of
changes in its activities or operations, this
may differ from the public charity status
listed in its original determination letter.
Although an organization is not required to
obtain a determination letter to qualify for
the new public charity status, in order for
Service records to recognize any change in
public charity status, an organization must
obtain a new determination of foundation
status pursuant to this revenue procedure.
.03Ifapubliccharitynolonger
qualifies as a public charity under
§ 509(a)(1)–(4), thenit becomes a private
foundation, and as such, it must file Form
990–PF,Return of Private Foundation or
Section 4947(a)(1) Nonexempt Charitable
Trust Treated as a Private Foundation.It
is not necessary for the organization to
obtain a determination letter on its new
private foundation status (although it is
permitted to do so pursuant to this revenue
procedure). The organization indicates
this change in foundation status by filing
its Form 990–PF return and following
any procedures specified in the form, in-
structions, or other published guidance.
Thereafter, the organization may termi-
nate its private foundation status, such
as by giving notice and qualifying as a
public charity again under § 509(a)(1)–(3)
during a 60-month termination period
in accordance with the procedures un-
der § 507(b)(1)(B) and Treas. Reg.
§ 1.507–2(b).
.04 This revenue procedure applies to
organizations that may have erroneously
determined that the organization was a
private foundation and wish to correct the
error. For example, an organization may
have erroneously classified an item or
items in its calculation of public support,
causing the organization to classify itself
as a private foundation and to file Forms
990–PF. Pursuant to this revenue proce-
dure, the organization can request to be
classified as a public charity by showing
that it continuously met the public support
tests during the relevant periods.Seesec-
tion7below.
.05 A private foundation may qualify as
an operating foundation under § 4942(j)(3)
without a determination letter from the
Service, but the Service will not recog-
nize such status in its records without a
determination letter from the Service. An
organizationclaimingtobeanexempt
operating foundation under § 4940(d)(2)
must obtain a determination letter from
the Service recognizing such status to be
exempt from the § 4940 tax on net invest-
ment income.
SEC
TION 4. DETERMINATIONS OF
FOU
NDATION STATUS
.01 EO Determinations will issue deter-
mination letters on foundation status, in-
cluding whether an organization is:
(1) a private foundation;
(2) a public charity described in
§§ 509(a)(1) and 170(b)(1)(A) (other than
clauses (v), (vii), and (viii));
(3) a public charity described in
§509(a)(2)or(4);
(4) a public charity described in
§ 509(a)(3), whether such organization
is described in § 509(a)(3)(B)(i), (ii), or
(iii) (“supporting organization type”), and
whether or not a Type III supporting or-
ganization is functionally integrated;
(5) a private operating foundation de-
scribedin§4942(j)(3);or
(6) an exempt operating foundation de-
scribed in § 4940(d)(2).
.02 EO Determinations will also is-
sue determination letters on whether a
nonexempt charitable trust described in
§ 4947(a)(1) is described in § 509(a)(3).
.03 EO Determinations will issue such
determinations in response to applications
for recognition of exempt status under
§ 501(c)(3), submitted by organizations
pursuant to § 508(b). EO Determinations
will also issue such determinations in
response to separate requests for deter-
mination of foundation status submitted
on Form 8940,Request for Miscellaneous
January 7, 20132672013–2 I.R.B.

Determination, pursuant to this revenue
procedure or its successor revenue proce-
dures.
SECTION 5. APPLICABILITY OF
ANNUAL REVENUE PROCEDURES
.01 Rev. Proc. 2013–9 (updated annu-
ally) provides procedures of the Service in
processing applications for recognition of
exemption from Federal income tax under
§ 501(c)(3). Rev. Proc. 2013–4 (updated
annually) governs requests for rulings and
determination letters. Rev. Proc. 2013–8
(updated annually) prescribes user fees for
applications, rulings, and other determina-
tions. Except as specifically noted herein,
those revenue procedures and their annual
successors also apply to requests for deter-
minations of foundation status.
.02 The provisions of Rev. Proc.
2013–9 and any successor revenue proce-
dure regarding § 7428, protest, conference,
and appeal rights also apply to all deter-
minations of foundation status described
in section 4.01 (except section 4.01(6)
relating to exempt operating foundation
status) and section 4.02, whether or not
the request for determination is made in
connection with an application for recog-
nition of tax-exempt status.
.03 Where the issue of exemption un-
der § 501(c)(3) is referred to EO Technical
for decision under the procedures of Rev.
Proc. 2013–9, the foundation status issue
will be referred along with it.
SECTION 6. GENERALLY NO NEW
DETERMINATION LETTER IF
SAME STATUS IS SOUGHT
The Service generally will not issue a
new determination letter to a taxpayer that
seeks a determination of private founda-
tion status that is identical to its current
foundation status as determined by the
Service. For example, an organization
that is already recognized as described
in §§509(a)(1) and 170(b)(1)(A)(ii) as a
school generally will not receive a new
determination letter that it is still described
in §§ 509(a)(1) and 170(b)(1)(A)(ii) un-
der the currently extant facts. However,
the organization in such case could re-
quest a letter ruling, pursuant to Rev.
Proc. 2013–4, that a given change of
facts and circumstances will not adversely
affect its status under §§ 509(a)(1) and
170(b)(1)(A)(ii).
SECTION 7. FORMAT OF REQUEST
.01 Organizations that are seeking to
change their foundation status, including
requests from public charities for private
foundation status and requests from public
charities to change from one public char-
ity classification to another public char-
ity classification, or seeking a determina-
tion or a change as to supporting organiza-
tion type or functionally integrated status,
or seeking operating foundation or exempt
operating foundation status, or subordinate
organizations included in a group exemp-
tion letter seeking a change in public char-
ity status, must submit Form 8940,Request
Miscellaneous Determination Under Sec-
tion 507, 509(a), 4940, 4942, 4945, and
6033 of the Internal Revenue Code,along
with all information, documentation, and
other materials required by Form 8940 and
the instructions thereto, as well as the ap-
propriate user fee pursuant to Rev. Proc.
2013–8 or its successor revenue proce-
dures.
.02 For complete information about
filing requirements and the submission
process, refer to Form 8940 and the In-
structions for Form 8940.
SECTION 8. REQUESTS BY
NONEXEMPT CHARITABLE
TRUSTS
.01 A nonexempt charitable trust de-
scribed in § 4947(a)(1) seeking a determi-
nation that it is described in § 509(a)(3)
should submit a written request for a deter-
mination pursuant to Rev. Proc. 2013–4 or
its successor revenue procedure.
.02 The request for determination must
include the following information items,
from the date that the organization became
described in § 4947(a)(1) (but not before
October 9, 1969) to the present:
(1) A subject line or other indica-
tor on the first page of the request in
bold, underlined, or all capitals font in-
dicating “NONEXEMPT CHARITABLE
TRUST REQUEST FOR DETERMI-
NATION THAT IT IS DESCRIBED IN
§ 509(a)(3)”;
(2) The name, address, and Employer
Identification Number of the beneficiary
organizations, together with a statement
whether each such beneficiary organiza-
tion is described in § 509(a)(1) or (2);
(3) A list of all of the trustees that have
served, together with a statement stating
whether such trustees were disqualified
persons within themeaning of § 4946(a)
(other than as foundation managers);
(4) A copy of the original trust instru-
ment and all subsequently adopted amend-
ments to that instrument;
(5) Sufficient information to other-
wise establish that the trust has met the
requirements of § 509(a)(3) as provided
for in Treas. Reg. § 1.509(a)–4 (other
than § 1.509(a)–4(i)(4)); If the trust did
not qualify under § 509(a)(3) in one or
more prior years (after October 9, 1969)
in which it was described in § 4947(a)(1),
then it cannot be issued a § 509(a)(3) deter-
mination letter except in accordance with
the procedures for termination of private
foundation status under § 507(b)(1)(B);
and
(6) Such other information as is re-
quired for a determination under Rev.
Proc. 2013–4 or any successor revenue
procedure.
SECTION 9. DETERMINATIONS
OPEN TO PUBLIC INSPECTION
Determinations and rulings as to foun-
dation status are open to public inspection
pursuant to § 6104(a).
SECTION 10. NOT APPLICABLE
TO PRIVATE FOUNDATION
TERMINATIONS UNDER § 507 OR
CHANGES OF STATUS PURSUANT
TO EXAMINATION
These procedures do not apply to a pri-
vate foundation seeking to terminate its
status under § 507. These procedures also
do not apply to the examination of an or-
ganization which results in changes to its
foundation status.
SECTION 11. EFFECT ON OTHER
REVENUE PROCEDURES
Rev. Proc. 2012–10 is superseded.
SECTION 12. EFFECTIVE DATE
This revenue procedure is effective Jan-
uary 7, 2013.
2013–2 I.R.B.268January 7, 2013

SECTION 13. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Office
of Management and Budget in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. § 3507) under control number
1545–1520.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
revenue procedure are in sections 7.02 and
8.02. This information is required to eval-
uate and process the request for a letter
ruling or determination letter. The collec-
tions of information are required to obtain
a letter ruling or determination letter. The
likely respondents are tax-exempt organi-
zations.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Mr. Dave Rifkin of the
Exempt Organizations, Tax Exempt and
Government Entities Division. For further
information about this revenue proce-
dure, contact Customer Account Services
at 877–829–5500 (a toll-free number).
Dave Rifkin can be reached by e-mail at
tege.eo@irs.gov. Please include “Ques-
tion about Rev. Proc. 2013–10” in the
subject line.
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of
correct tax liability.
(Also: Part I, §§ 6011, 6111, 6112; 1.6011–4,
301.6111–3, 301.6112–1.)
Rev. Proc. 2013–11
SECTION 1. PURPOSE
This revenue procedure provides that
certain losses are not taken into account
in determining whether a transaction is a
reportable transaction for purposes of the
disclosure rules under § 1.6011–4(b)(5) of
the Income Tax Regulations. However,
these transactions may be reportable trans-
actions for purposes of the disclosure rules
under § 1.6011–4(b)(2), (b)(3), (b)(4),
(b)(6), or (b)(7).
SECTION 2. BACKGROUND
.01 Section 1.6011–4 requires a tax-
payer that participates in a reportable
transaction to disclose the transaction in
accordance with the procedures provided
in § 1.6011–4. Under § 1.6011–4(b),
there are five categories of reportable
transactions. One category of reportable
transaction is a loss transaction. A loss
transaction is definedin § 1.6011–4(b)(5).
Generally, a loss transaction is any trans-
action resulting in the taxpayer claiming a
loss under § 165 of the Internal Revenue
Code of (i) at least $10 million in a single
taxable year or $20 million in any com-
bination of taxable years for corporations
or partnerships with only corporations as
partners (looking through any partners
that are themselves partnerships), whether
or not any losses flow through to one or
more partners; (ii) at least $2 million in
any single taxable year or $4 million in
any combination of taxable years for all
other partnerships, individuals, S corpora-
tions, and trusts, whether or not any losses
flow through to one or more partners,
shareholders, or beneficiaries; or (iii) at
least $50,000 in any single taxable year
forindividualsortrusts,whetherornotthe
loss flows through from an S corporation
or partnership, if the loss is attributable to
a § 988 transaction.
.02 Section 1.6011–4(b)(8)(i) provides
that a transaction will not be considered a
reportable transaction, or will be excluded
from any individual category of reportable
transaction, if the Commissioner makes a
determination by published guidance that
the transaction is not subject to the report-
ing requirements of § 1.6011–4.
SECTION 3. SCOPE
This revenue procedure applies to tax-
payers that may be required to disclose
reportable transactions under § 1.6011–4,
material advisors that may be required
to disclose reportable transactions under
§ 6111, and material advisors that may be
required to maintain lists under § 6112.
SECTION 4. APPLICATION
.01In general.Losses from the sale
or exchange of an asset with a qualify-
ing basis under section 4.02 of this rev-
enue procedure or losses described in sec-
tion 4.03 of this revenue procedure are not
taken into account in determining whether
a transaction is a reportable transaction un-
der § 1.6011–4(b)(5).
.02Sale or exchange of an asset with a
qualifying basis.
(1)General rule.A loss under § 165
from the sale or exchange of an asset is not
taken into account in determining whether
a transaction is a loss transaction under
§ 1.6011–4(b)(5) if —
(a) the basis of the asset (for purposes of
determining the loss) is a qualifying basis;
(b) the asset is not an interest in a
passthrough entity (within the meaning of
§ 1260(c)(2), other than regular interests
inaREMICasdefinedin§860G(a)(1));
(c) the loss from the sale or exchange
of the asset is not treated as ordinary under
§ 988, except in the case of a loss that is
recognized by a bank described in § 581
or § 582(c)(2)(A)(i) (concerning foreign
banks as limited by § 582(c)(2)(C));
(d) the asset has not been separated
from any portion of the income it gener-
ates; and
(e) the asset is not, and has never been,
part of a straddle within the meaning of
§ 1092(c), excluding a mixed straddle un-
der § 1.1092(b)–4T.
(2)Qualifying basis.For purposes of
section 4 of this revenue procedure, a tax-
payer’s basis in an asset (less adjustments
for any allowable depreciation, amortiza-
tion, or casualty loss) is a qualifying basis
if —
(a) the basis of the asset is equal to, and
is determined solely by reference to, the
amount (including any option premium)
paid in cash by the taxpayer for the asset
and for any improvements to the asset;
(b) the basis of the asset is determined
under § 358 by reason of it being received
in an exchange to which §§ 354, 355, or
361 applies, and the taxpayer’s basis in the
property exchanged in the transaction was
described in this section 4.02(2);
(c) the basis of the asset is determined
under § 1014;
(d) the basis of the asset is determined
under § 1015, and the donor’s basis in the
asset was described in this section 4.02(2);
(e) the basis of the asset is determined
under § 1031(d), the taxpayer’s basis in the
property that was exchanged for the asset
in the § 1031 transaction was described in
January 7, 20132692013–2 I.R.B.

this section 4.02(2), and any debt instru-
ment issued or assumed by the taxpayer in
connection with the § 1031 transaction is
treated as a payment in cash under section
4.02(4) of this revenue procedure;
(f) the basis of the asset is adjusted un-
der § 961 or § 1.1502–32, and the tax-
payer’s basis in the asset immediately prior
to the adjustment was described in this sec-
tion 4.02(2); or
(g) the basis of the asset is adjusted un-
der § 1272(d)(2) or § 1278(b)(4), and the
taxpayer’s basis in the asset immediately
prior to the adjustment was described in
this section 4.02(2).
(3)Section 83 income.For purposes of
section 4.02(2)(a) of this revenue proce-
dure, an amount included as compensation
income under § 83 by the taxpayer will be
treated as an amount paid in cash by the
taxpayer for an asset if the amount is in-
cluded in the taxpayer’s basis in the asset.
(4)Debt instruments.Except as pro-
vided below, an amount paid in cash will
not be disregarded for purposes of section
4.02(2) of this revenue procedure merely
because the taxpayer issued a debt instru-
ment to obtain the cash. However, if the
taxpayer has issued a debt instrument to
the person (or a related party as described
in § 267(b) or § 707(b)) who sold or trans-
ferred the asset to the taxpayer, assumed a
debt instrument (or took an asset subject to
a debt instrument) issued by the person (or
a related party as described in § 267(b) or
§ 707(b)) who sold or transferred the as-
set to the taxpayer, or issued a debt instru-
ment in exchange for improvements to an
asset, the taxpayer will be treated as hav-
ing paid cash for the asset or the improve-
ment only if the debt instrument is secured
by the asset and all amounts due under the
debt instrument have been paid in cash no
later than the time of the sale or exchange
of the asset (except in the case of stock or
securities traded on an established securi-
ties market, the settlement date) for which
the loss is claimed.
.03Other losses.The following losses
under § 165 are not taken into account in
determining whether a transaction is a loss
transaction under § 1.6011–4(b)(5):
(1) A loss from fire, storm, ship-
wreck, or other casualty, or from theft, as
those terms are defined for purposes of
§ 165(c)(3);
(2) A loss from a compulsory or in-
voluntary conversion as described in
§ 1231(a)(3)(A)(ii) and (a)(4)(B);
(3) A loss to which § 475(a) or
§ 1256(a) applies;
(4) A loss arising from any mark-
to-market treatment of an item un-
der §§ 475(f), 1296(a), 1.446–4(e),
1.988–5(a)(6), or 1.1275–6(d)(2), and any
loss from a sale or disposition of an item
to which one of the foregoing provisions
applied, provided that the taxpayer com-
putes its loss by using a qualifying basis
(as defined in section 4.02(2) of this rev-
enue procedure) or a basis resulting from
previously marking the item to market, or
computes its loss by making appropriate
adjustments for previously determined
mark-to-market gain or loss;
(5) A loss arising from a hedging trans-
action described in § 1221(b), if the tax-
payer properly identifies the transaction as
a hedging transaction, or from a mixed
straddle account under § 1.1092(b)–4T;
(6) A loss attributable to basis increases
under § 860C(d)(1) during the period of
the taxpayer’s ownership;
(7) A loss attributable to the abandon-
ment of depreciable tangible property that
was used by the taxpayer in a trade or busi-
ness and that has a qualifying basis under
section 4.02(2) of this revenue procedure;
(8) A loss arising from the bulk sale of
inventory if the basis of the inventory is
determined under § 263A;
(9) A loss that is equal to, and is deter-
mined solely by reference to, a payment of
cash by the taxpayer (for example, a cash
payment by a guarantor that results in a
loss or a cash payment that is treated as a
loss from the sale of a capital asset under
§ 1234A or § 1234B);
(10) A loss from the sale to a person
other than a related party (within the mean-
ing of § 267(b) or § 707(b)) of property de-
scribed in § 1221(a)(4) in a factoring trans-
action in the ordinary course of business;
or
(11) A loss arising from the disposi-
tion of an asset to the extent that the tax-
payer’s basis in the asset is determined un-
der § 338(b).
SECTION 5. EFFECT ON OTHER
DOCUMENTS
This document modifies and supersedes
Rev. Proc. 2004–66, 2004–2 C.B. 966.
SECTION 6. EFFECTIVE DATE
This revenue procedure is effective
December 6, 2012, the date this revenue
procedure was released to the public. This
revenue procedure, except for section
4.02(1)(c) as applied to losses recognized
by certain banks with respect to section
988 transactions, applies to transactions
that are entered into on or after January 1,
2003. Section 4.02(1)(c) as applied
to losses recognized by certain banks
with respect to section 988 transactions
applies to losses recognized on or after
December 6, 2012.
SECTION 7. DRAFTING
INFORMATION
The principal authors of this rev-
enue procedure are Charles D. Wien and
Caroline E. Hay of the Office of Associate
Chief Counsel (Passthroughs & Special
Industries). For further information
regarding disclosures under this revenue
procedure, contact Mr. Wien or Ms. Hay
at (202) 622–3070 (not a toll-free call).
For further information regarding § 988
transactions under this revenue procedure,
contact Mark Erwin or Raymond Stahl at
(202) 622–3870 (not a toll-free call).
2013–2 I.R.B.270January 7, 2013

Part IV. Items o
fGeneralInterest
Announcement
of the Results
of the 2011–20
12 Allocation
Round of the Qu
alifying
Advanced Coa
lProject
Program
Announceme
nt 2013–2
This announ
cement discloses the re-
sults of the
2011–12 allocation round
under the qu
alifying advanced coal project
program of §
48A of the Internal Revenue
Code.
QUALIFYIN
G ADVANCED COAL
PROJECT PR
OGRAM
Section 48
A provides a qualifying ad-
vanced coa
l project credit in an amount
equal to (
1) 20 percent of the qualified in-
vestment
(as defined in § 48A(b)) for that
taxable y
ear in qualifying advanced coal
projects
(as defined in § 48A(c)(1) and
(e)) desc
ribed in § 48A(d)(3)(B)(i), (2) 15
percent o
f the qualified investment for that
taxable
year in qualified advanced coal
project
s described in § 48A(d)(3)(B)(ii),
and (3) 30 perc
ent of the qualified in-
vestment for t
hat taxable year in qualify-
ing advanced c
oal projects described in
§ 48A(d)(3)(B
)(iii).
Section 48A(d
)(5) provides that the
Secretary sha
ll, upon making a certifica-
tion under § 48
A(d) or § 48B(d), publicly
disclose the
identity of the applicant and
the amount of
the credit certified with
respect to su
ch applicant.
On April 20, 2
009, the Internal Rev-
enue Service
(“Service”) issued Notice
2009–24, 200
9–16 I.R.B 817, to announce
an initial a
llocation round for the qual-
ifying adva
nced coal projects described
in § 48A(d)(
3)(B)(iii) (“the Phase II ad-
vanced coal
program”). The Service will
certify $1
.25 billion of credits to qualify-
ing projec
ts under the Phase II advanced
coal progr
am during the application period
from March
13, 2009 to March 13, 2012,
as provid
ed by § 48A(d)(2)(A)(ii).
Section 10
.01 of Notice 2009–24 pro-
vides tha
t the Service intends to publish
the resul
ts of the allocation process, and
disclose
the following information in the
event a qu
alifying advanced coal project
credit u
nder § 48A is allocated to the tax-
payer’s proje
ct: (a) the name of the tax-
payer and (b) t
he amount of the qualify-
ing advanced c
oal project credit allocated
to the project
.
On September 2
7, 2010, the Service
issued Announ
cement 2010–56, 2010–39
I.R.B. 398, se
tting forth the results of the
initial allo
cation round, and notifying ap-
plicants of a
second allocation round in
2010–11.
On October 3,
2011, the Service issued
Announcemen
t 2011–62, 2011–40 I.R.B.
483, announc
ing that the second allocation
round in 201
0–11 did not result in any al-
location of
the qualifying advanced coal
project cre
dit, and notifying applicants of
the Service
’s intention to conduct a third
allocatio
n round in 2011–12 in the man-
ner and und
er the procedures provided by
Notice 200
9–24, as modified by Notice
2011–24, 2
011–14 I.R.B. 603.
1
As pro-
vided by N
otice 2009–24, the application
period fo
r the 2011–12 allocation round
beganonM
arch 2, 2011, and ended on
March 1, 2
012.
Accordin
gly, the results of the third al-
location
round in 2011–12 under the Phase
II advan
ced coal program is as follows:
ProgramTaxpayerAmount of Credit AwardedTotal Credit Awarded
§48A
Hydrogen Energy California
LLC
$103,564
,000
$103,564
,000
The third allocation round in 2011–12 is
the final allocation round under the Phase
II advanced coal program.
DRAFTING INFORMATION
The principal author of this announce-
ment is Jennifer Bernardini of the Office
of Associate Chief Counsel (Passthroughs
& Special Industries). For further informa-
tion regarding this announcement, contact
Jennifer Bernardini at (202) 622–3110 (not
a toll-free call).
Announcement 2013–3
The following announcement provides
updated information for items in Publica-
tion 1220,Specifications for Filing Forms
1097, 1098, 1099, 3921, 3922, 5498,
8935, and W–2G Electronically, Revised
August 13, 2012.
Form 1099–B, Proceeds From Broker
and Barter Exchange Transactions
Form 1099–B has been added to the
Combined Federal/State Filing program
(CF/SF). Programming should be as fol-
lows:
Payer “A” Record (page 39):
•Position 6 Combined Federal/State
Filer:Required for the Com-
bined Federal/State Filing Program
(CF/SF):Enter “1” (one) if approved
and submitting information as part of
the CF/SF program or if submitting a
test file in order to obtain approval for
the CF/SF program;otherwise, enter
a blank.
Payer “B” Record (page 88):
•A separate “B” record must be created
for each state.
•The amount for each state must be al-
located and reported to each state.
1
Notice 2011–24 updated the rules relating to the annual measurement of separated and sequestered carbon dioxide and applies the recapture rules of § 50(a) in the event that a taxpayer fails
to attain or maintain the carbon dioxide separation and sequestration requirements of § 48A or § 48B.
January 7, 20132712013–2 I.R.B.

•Positions 663–722 “Special Data En-
tries Field” – This portion of the “B”
Record may be used to record informa-
tion for state or local government re-
porting or for the filer’s own purposes.
Payers should contact the state or lo-
cal revenue departments for filing re-
quirements. If this field is not used,
enter blanks. Report the Corporation’s
Name, Address, City, State, and ZIP in
the Special Data Entry field.
•Positions 723–734 “State Income Tax
Withheld” – State income tax withheld
is for the convenience of the filers.
This information does not need to be
reported to IRS. The payment amount
must be right-justified and unused po-
sitions must be zero-filled. If not re-
porting state tax withheld, this field
may be used as a continuation of the
Special Data Entries Field.
•Positions 735–746 “Local Income Tax
Withheld” – Local income tax with-
held is for the convenience of the filers.
This information does not need to be
reported to IRS. The payment amount
must be right-justified and unused po-
sitions must be zero-filled. If not re-
porting local tax withheld, this field
may be used as a continuation of the
Special Data Entries field.
•Position 747–748: Enter a the State
Code from Table 3 in this field if the
payee record is to be forwarded to a
state agency as part of the CF/SF Pro-
gram
Payer “K” Record” (page 139):
•A separate “K” record is required for
each state.
•Each “K” record reports the total num-
ber of “B” records coded for that par-
ticipating state.
2013–2 I.R.B.272January 7, 2013

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
January 7, 2013i2013–2 I.R.B.

Numerical Finding List
1
Bulletins 2013–1 through 2013–2
Announcements:
2013-1, 2013-1 I.R.B.251
2013-2, 2013-2 I.R.B.271
2013-3, 2013-2 I.R.B.271
Revenue Procedures:
2013-1, 2013-1 I.R.B.1
2013-2, 2013-1 I.R.B.92
2013-3, 2013-1 I.R.B.113
2013-4, 2013-1 I.R.B.126
2013-5, 2013-1 I.R.B.170
2013-6, 2013-1 I.R.B.198
2013-7, 2013-1 I.R.B.233
2013-8, 2013-1 I.R.B.237
2013-9, 2013-2 I.R.B.255
2013-10, 2013-2 I.R.B.267
2013-11, 2013-2 I.R.B.269
Revenue Rulings:
2013-1, 2013-2 I.R.B.252
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin
2012–52, dated December 27, 2012.
2013–2 I.R.B.iiJanuary 7, 2013

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–1 through 2013–2
Revenue Procedures:
2004-66
Modified and supersended by
Rev. Proc. 2013-11, 2013-2 I.R.B.269
2011-49
Modified by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2012-1
Superseded by
Rev. Proc. 2013-1, 2013-1 I.R.B.1
2012-2
Superseded by
Rev. Proc. 2013-2, 2013-1 I.R.B.92
2012-3
Superseded by
Rev. Proc. 2013-3, 2013-1 I.R.B.113
2012-4
Superseded by
Rev. Proc. 2013-4, 2013-1 I.R.B.126
2012-5
Superseded by
Rev. Proc. 2013-5, 2013-1 I.R.B.170
2012-6
Superseded by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2012-7
Superseded by
Rev. Proc. 2013-7, 2013-1 I.R.B.233
2012-8
Superseded by
Rev. Proc. 2013-8, 2013-1 I.R.B.237
2012-9
Superseded by
Rev. Proc. 2013-9, 2013-2 I.R.B.255
2012-10
Superseded by
Rev. Proc. 2013-10, 2013-2 I.R.B.267
2012-30
Corrected and carified by
Ann. 2013-3, 2013-2 I.R.B.271
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin 2012–52, dated December 27,
2012.
January 7, 2013iii2013–2 I.R.B.

Internal Revenue Service
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ashington,DC20224
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