Internal Revenue Bulletin 2024-45 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2024–45
November 4, 2024
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.
ADMINISTRATIVE
Rev. Proc. 2024-40, page 1100.
This revenue procedure sets forth inflation-adjusted items
for 2025 for various Code provisions as in effect on Octo-
ber 22, 2024. The inflation adjusted items for the Code
sections set forth in section 2 of this revenue procedure are
generally determined by reference to § 1(f) of the Code. To
the extent amendments to the Code are enacted for 2025
after October 22, 2024, taxpayers should consult addi-
tional guidance to determine whether these adjustments
remain applicable for 2025.
EMPLOYEE PLANS
Notice 2024-76, page 1089.
This notice sets forth updates on the corporate bond
monthly yield curve, the corresponding spot segment
rates for September 2024 used under § 417(e)(3)(D), the
24-month average segment rates applicable for October
2024, and the 30-year Treasury rates, as reflected by the
application of § 430(h)(2)(C)(iv).
Notice 2024-77, page 1093.
This notice provides guidance in the form of questions and
answers with respect to sections 414(aa) and 402(c)(12)
of the Code as added by section 301(b) of the SECURE
2.0 Act. Section 414(aa) addresses the requirements of
sections 401(a) and 403 with respect to inadvertent ben-
efit overpayments, and section 402(c)(12) addresses the
treatment of certain inadvertent benefit overpayments as
eligible rollover distributions.
T.D. 10008, page 1082.
This final regulation provides rules for determining whether
certain retirement plan and annuity distributions are subject
to income tax withholding pursuant to § 3405 and treats a
military or diplomatic post office address (such as an APO,
a DPO, or an FPO address) as an address within the United
States for purposes of the restriction on elections out of
withholding that applies to overseas payments under §
3405(e)(13).
EXEMPT ORGANIZATION, INCOME TAX
Rev. Proc. 2024-39, page 1097.
This revenue procedure grants certain applicable entities
under section 6417(d)(1)(A) of the Internal Revenue Code
an automatic six-month extension of time to file an orig-
inal or superseding Form 990-T, Exempt Organization
Business Income Tax Return (and proxy tax under section
6033(e) of the Code), with any other relevant schedules
and forms (such as Form 3800, General Business Credit,
and any relevant source credit forms), to make an elective
payment election as provided under section 6417(d)(3) and
§1.6417-2(b).
In addition to the automatic six-month extension of time
to file for certain applicable entities, this revenue proce-
dure allows certain applicable entities to make the elective
payment election on a paper-filed Form 990-T if they follow
certain procedural requirements. The document also pro-
vides a procedure allowing for assistance on processing an
elective payment election for applicable entities otherwise
eligible for relief that previously filed a return and received a
notice that their election was ineffective because the return
on which it was made was filed after the due date of the
return.
EXCISE TAX, INCOME TAX, SPECIAL
ANNOUNCEMENT
Notice 2024-74, page 1089.
Notice 2024-74 provides additional guidance to taxpayers
using the safe harbors in Notice 2024-37 with respect to
Finding Lists begin on page ii.

the sustainable aviation fuel (SAF) credit. Notice 2024-74
provides that a taxpayer using a 40BSAF-GREET 2024 safe
harbor to calculate its emissions reduction percentage
with respect to claims that relate to the sale or use of a
SAF qualified mixture after the effective date of the notice
must use the newly released October 2024 version of the
40BSAF-GREET 2024 model.
INCOME TAX
Rev. Rul. 2024-24, page 1086.
Federal rates; adjusted federal rates; adjusted federal long-
term rate, and the long-term tax exempt rate. For purposes
of sections 382, 1274, 1288, 7872 and other sections of
the Code, tables set forth the rates for November 2024.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management 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 rul-
ings 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.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation 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
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
November 4, 2024 Bulletin No. 2024–45

Part I
26 CFR 31.3405(e)-1: Questions and answers relat-
ing to withholding on pensions, annuities, and cer-
tain other deferred income
TD 10008
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 31
Withholding on Certain
Distributions under
Section 3405(a) and (b)
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulation.
SUMMARY: This document contains
a final regulation regarding income tax
withholding on certain periodic pay-
ments and nonperiodic distributions
from employer deferred compensation
plans, individual retirement plans, and
commercial annuities that are not eligi-
ble rollover distributions. The regulation
addresses a payor’s obligation to with-
hold income taxes in the circumstances
in which those payments or distributions
are made to payees outside of the United
States and affects payors and payees of
those periodic payments and nonperiodic
distributions.
DATES: Effective date. This regulation is
effective October 21, 2024.
Applicability date. This regulation applies
with respect to payments and distributions
made on or after January 1, 2026. How-
ever, taxpayers may apply it to earlier pay-
ments and distributions.
FOR FURTHER INFORMATION
CONTACT: Jeremy Lamb at (202) 317-
4575 or Isaac Stein at (202) 317-6320 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
Authority
Section 7805(a) authorizes the Secre-
tary to prescribe all needful rules and reg-
ulations for the enforcement of the Code.
Background
Section 3405(a)(1) of the Internal Rev-
enue Code of 1986 (Code) requires the
payor of any periodic payment to withhold
income tax from the payment. Under sec-
tion 3405(a)(2), an individual generally
may elect not to have section 3405(a)(1)
apply with respect to periodic payments
made to the individual. Section 3405(b)(1)
requires the payor of any nonperiodic dis-
tribution to withhold income tax from the
distribution. Under section 3405(b)(2), an
individual generally may elect not to have
section 3405(b)(1) apply with respect to
any nonperiodic distribution.
Section 3405(e)(2) defines a periodic
payment as a designated distribution that
is an annuity or similar periodic payment.
Section 3405(e)(3) defines a nonperi-
odic distribution as any designated dis-
tribution that is not a periodic payment.
A designated distribution is defined in
section 3405(e)(1) as generally any dis-
tribution or payment from or under an
employer deferred compensation plan,
an individual retirement plan (as defined
in section 7701(a)(37) of the Code), or
a commercial annuity. For this purpose,
an employer deferred compensation plan
is defined in section 3405(e)(5) as any
pension, annuity, profit sharing, or stock
bonus plan or other plan deferring the
receipt of compensation, and a commer-
cial annuity is defined in section 3405(e)
(6) as an annuity, endowment, or life
insurance contract issued by an insurance
company licensed to do business under
the laws of any State.
Section 3405(e)(1)(B) identifies certain
amounts or payments that are not a “desig-
nated distribution” for purposes of section
3405 withholding. Under section 3405(e)
(1)(B)(iii), any amount that is subject to
withholding under subchapter A of chap-
ter 3 of the Code (relating to withholding
of tax on nonresident aliens and foreign
corporations) by the person paying such
amount or which would be so subject but
for a tax treaty is not a designated distri-
bution.
Section 3405(e)(13)(A) provides gen-
erally that, in the case of any periodic pay-
ment or nonperiodic distribution that is “to
be delivered outside of the United States
and any possession of the United States,”
no election may be made under section
3405(a)(2) or (b)(2) with respect to such
payment, with the result that withholding
may not be waived. Section 3405(e)(13)
(B) provides that section 3405(e)(13)(A)
does not apply if the recipient certifies to
the payor, in such manner as the Secretary
of the Treasury may prescribe, that the
recipient is not (i) a United States citizen
or a resident alien of the United States, or
(ii) an individual to whom section 877 of
the Code applies. Section 877(h) provides
that section 877 applies to certain nonres-
ident alien individuals whose expatriation
date, as defined in section 877A(g)(3), is
before June 17, 2008.
Notice 87-7, 1987-1 CB 420, provides
guidance under section 3405(e)(13)(A) to
payors of designated distributions with
respect to their duty to withhold income
tax from such distributions. The notice
applies to designated distributions for the
following categories of payees: (1) pay-
ees who have provided the payors with
a residence address outside of the United
States;
1
(2) payees who have provided the
payors with a residence address within the
United States; and (3) payees who have
not provided the payors with a residence
address.
Notice 87-7 specifies that, if a payee
has provided the payor with a residence
address outside of the United States, the
payor is required to withhold income
tax from designated distributions to the
payee. If a payee has provided the payor
with a residence address within the United
States, the payor is required to withhold
November 4, 2024 1082 Bulletin No. 2024–45
1
For purposes of this preamble, references to the “United States” include any possession of the United States.

income tax from these distributions to
the payee unless the payee has elected
no withholding in accordance with the
applicable provisions of section 3405. If
a payee has not provided the payor with a
residence address, the payor is required to
withhold income tax from designated dis-
tributions; included within this category
is a payee who has provided the payor
with an address for the payee’s nominee,
trustee, or agent without also providing
the payee’s residence address.
On May 31, 2019, the Department of
the Treasury (Treasury Department) and
the IRS published a notice of proposed
rulemaking regarding withholding on
certain periodic payments and nonpe-
riodic distributions under section 3405
(other than eligible rollover distributions)
in the Federal Register (84 FR 25209).
No comments responsive to the notice of
proposed rulemaking were received, and
no public hearing was requested or held.
Thus, this final regulation adopts the pro-
visions of the proposed regulation with no
modifications except for the change in the
applicability date to January 1, 2026, and
other minor changes in wording that are
nonsubstantive.
Explanation of Provisions
This document contains a final reg-
ulation under section 3405(e) that pro-
vides withholding guidance for payors
of periodic payments and nonperiodic
distributions under section 3405(a) and
(b), respectively. The regulation generally
addresses a payor’s obligation to withhold
under section 3405(a) and (b) in the fol-
lowing situations: (1) payments to payees
with a military or diplomatic Post Office
address; (2) payments to payees with
a residence address located within the
United States; (3) payments to payees with
a residence address located outside of the
United States or who have not provided a
residence address; and (4) payments sub-
ject to withholding under subchapter A of
chapter 3 (sections 1441 through 1446 of
the Code).
1. Payees with a Military or Diplomatic
Post Office Address
For purposes of section 3405(e)(13)
(A), the regulation treats an Army Post
Office (APO), a Fleet Post Office (FPO), or
a Diplomatic Post Office (DPO)
2
address
as an address located within the United
States. In 1986, when this provision was
added to the Code by the Tax Reform Act
of 1986, Public Law 99-514 (TRA ‘86),
it was one of several provisions intended
to increase compliance with the internal
revenue laws by United States persons
resident abroad and green card holders.
The Senate Finance Committee Report
for TRA ‘86 indicates a concern, based
on data gathered by the General Account-
ing Office (GAO),
3
that the percentage of
taxpayers who fail to file returns is sub-
stantially higher among Americans living
abroad than it is among those resident in
the United States, and that it is often dif-
ficult for the IRS to enforce compliance
by these taxpayers. S. Rep. No. 99-313, at
390 (1986).
The GAO data referred to in the leg-
islative history does not include United
States military personnel and their fam-
ilies as taxpayers who are living abroad.
Johnny C. Finch, United States Citizens
Living in Foreign Countries and Not Fil-
ing Federal Income Tax Returns, United
States General Accounting Office, May
8, 1985. In addition, enforcement of
compliance by individuals receiving mail
at an APO, an FPO, or a DPO address
generally does not involve the same chal-
lenges as enforcing compliance by other
taxpayers living abroad. Because APO,
FPO, and DPO delivery destinations are
generally United States military or diplo-
matic facilities, taxpayers with an APO,
an FPO, or a DPO address commonly
maintain a current or former employ-
ment or contractor relationship with the
United States government. Moreover,
these addresses generally are treated as
“domestic” by the United States Postal
Service. United States Domestic Mail
Manual, 608.2.2.
For these reasons, the Treasury Depart-
ment and the IRS have determined that
treating a United States military or dip-
lomatic post office address as located
within the United States for purposes of
section 3405(e)(13)(A) is consistent with
the tax avoidance concerns underlying the
enactment of that provision. Accordingly,
the regulation provides that designated
distributions to United States military
and diplomatic personnel or their families
are not treated as delivered outside of the
United States solely because those pay-
ments or distributions are to be delivered
to an APO, an FPO, or a DPO address.
2. Payees with a Residence Address
Located Within the United States
The regulation imposes withholding
requirements on payors regarding certain
payees who have provided the payor with
a residence address located within the
United States. Under Notice 87-7, payors
are not required to withhold if a payee pro-
vides a residence address located within
the United States and the payee elects no
withholding. Notice 87-7 does not specifi-
cally address whether payors are required
to withhold when a payee provides a res-
idence address located within the United
States, but also provides payment instruc-
tions indicating that the funds are to be
delivered outside of the United States. As
explained in the Background section of
this preamble, the mandatory withhold-
ing for amounts to be delivered outside
of the United States was enacted because
Congress was concerned about noncom-
pliance. Section 3405(e)(13)(A) refers
to “any periodic payment or nonperiodic
distribution which is to be delivered out-
side of the United States.” Consistent with
the text of section 3405(e)(13)(A) and its
purpose, the regulation requires payors to
withhold in certain circumstances when
a payee provides a residence address
located within the United States but also
provides payment instructions indicating
that the funds are to be delivered outside
of the United States.
2
APO is associated with Army or Air Force installations. FPO is associated with Navy installations and ships. APO/FPO addresses are utilized by Department of Defense personnel, their
family members, and other authorized users. DPO provides global mail service to authorized personnel assigned to designated posts abroad.
3
Effective July 7, 2004, the GAO’s legal name was changed from the General Accounting Office to the Government Accountability Office.
Bulletin No. 2024–45 1083 November 4, 2024

November 4, 2024 1084 Bulletin No. 2024–45
3. Payees with a Residence Address
Located Outside of the United States
or Who Have not Provided a Residence
Address
Unless section 3405(e)(13)(B) (which
provides an exception for certain nonres-
ident aliens) applies, if the payee’s resi-
dence address that is provided to the payor
is located outside of the United States, the
payor is required to withhold income tax
under section 3405 from any designated
distribution, without regard to the deliv-
ery instructions and without regard to any
attempt to elect no withholding. Thus, for
example, withholding under section 3405
would be required even if a payee with a
foreign residence address has requested
that the distribution be deposited with a
financial institution located within the
United States. Given the ease with which
the funds deposited with a financial insti-
tution in the United States can be with-
drawn by a person located outside the
United States, the Treasury Department
and the IRS have concluded that the pay-
ee’s residence address is more likely to be
indicative of the place the distribution is
ultimately to be delivered than the loca-
tion of the financial institution. The same
requirement to withhold income tax under
section 3405 applies if a payee has not
provided a residence address to the payor.
Furthermore, a payee who has provided
the payor with an address for the payee’s
nominee, trustee, or agent without also
providing the payee’s residence address
has not provided a residence address for
purposes of this regulation.
These rules are consistent with the
approach in Notice 87-7, which uses the
residence address of the payee in order to
determine whether a taxpayer is permit-
ted to make an election not to have with-
holding apply under section 3405(a)(2) or
(b)(2). The Treasury Department and the
IRS have determined that this interpreta-
tion articulated in Notice 87-7 provides
an administrable standard that has been
relied upon for many years, is consistent
with the TRA ‘86 legislative history, and
appropriately addresses tax avoidance
concerns underlying section 3405(e)(13)
(A).
4

4. Payments Subject to Withholding
under Subchapter A of Chapter 3
In accordance with section 3405(e)
(1)(B)(iii), the regulation clarifies that a
designated distribution does not include
a distribution that is subject to withhold-
ing under subchapter A of chapter 3 (or
that would be subject but for a tax treaty).
Therefore, the withholding rules under
section 3405(a) and (b) do not apply to
such a distribution. For example, section
3405(a) or (b) withholding would not
apply to a United States-source distribu-
tion to a nonresident alien individual from
a trust described in section 401(a) of the
Code. In such a case, the withholding
rules of section 1441 (within subchapter
A of chapter 3) that apply to nonresident
aliens would apply to such a distribution.
See §1.1441-1(b)(1).
Applicability Date
This regulation applies with respect to
payments and distributions made on or
after January 1, 2026. However, taxpay-
ers may apply the regulation to earlier
payments and distributions. Notice 87-7
is obsoleted with respect to payments and
distributions made after December 31,
2025.
Statement of Availability of IRS
Documents
The IRS notice cited in this preamble is
published in the Cumulative Bulletin and
is available from the Superintendent of
Documents, U.S. Government Publishing
Office, Washington, DC 20402.
Special Analyses
I. Regulatory Planning and Review
Pursuant to the Memorandum of
Agreement, Review of Treasury Regula-
tions under Executive Order 12866 (June
9, 2023), tax regulatory actions issued by
the IRS are not subject to the requirements
of section 6 of Executive Order 12866, as
amended. Therefore, a regulatory impact
assessment is not required.
II. Paperwork Reduction Act
The collection of information related
to the withholding requirements is cap-
tured within the forms and instructions
for Forms W-4P and W-4R. Both of these
forms are approved under OMB Number
1545-0074. This regulation does not alter
any previously approved information col-
lection requirements contained within the
forms and instructions for Forms W-4P
and W-4R, and this regulation does not
create new collection requirements not
already approved by the Office of Man-
agement and Budget.
III. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility
Act (5 U.S.C. chapter 6) it is hereby cer-
tified that the collection of information
in this regulation will not have a signif-
icant economic impact on a substantial
number of small entities. The number of
small entities potentially affected by this
regulation is unknown but could be sub-
stantial because based on data and infor-
mation available to the Treasury Depart-
ment and the IRS, most defined benefit
and defined contribution retirement plans
are sponsored by small employers
(defined as employers with fewer than
100 employees), while annuities and
IRAs are typically set up by large finan-
cial institutions. Although a substantial
number of small entities is potentially
affected by this regulation, the Treasury
Department and the IRS have concluded
that this regulation will not have a sig-
nificant economic impact on a substantial
number of small entities. This is because
the main purpose and effect of this reg-
ulation is to treat military and diplo-
matic post office addresses the same as
residence addresses located within the
United States for purposes of income
tax withholding, and payors of distribu-
tions from retirement plans and annuities
are already processing distributions to
payees with residence addresses located
within the United States. Accordingly,
this regulation will not have a significant
economic impact on a substantial number
of small entities. Therefore, a regulatory
4
The Senate Finance Committee Report states that “it will be appropriate to require withholding with respect to pension payments to persons with foreign addresses absent a showing that
withholding is not required.” S. Rep. No. 99-313, at 391 (1986).

Bulletin No. 2024–45 1085 November 4, 2024
flexibility analysis under the Regulatory
Flexibility Act is not required.
Pursuant to section 7805(f) of the
Code, the notice of proposed rulemaking
preceding this regulation was submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on its impact on small business.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any Federal man-
date that may result in expenditures in any
one year by a state, local, or tribal govern-
ment, in the aggregate, or by the private
sector, of $100 million in 1995 dollars,
updated annually for inflation. This regu-
lation does not include any Federal man-
date that may result in expenditures by
state, local, or tribal governments, or by
the private sector in excess of that thresh-
old.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on state and local gov-
ernments, and is not required by statute,
or preempts state law, unless the agency
meets the consultation and funding require-
ments of section 6 of the Executive Order.
This rule does not have federalism impli-
cations and does not impose substantial
direct compliance costs on state and local
governments or preempt state law within
the meaning of the Executive Order.
VI. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs des-
ignated this rule as not a major rule, as
defined by 5 U.S.C. 804(2).
Drafting Information
The principal author of this regula-
tion is Jeremy Lamb, of the IRS Office of
Associate Chief Counsel (Employee Ben-
efits, Exempt Organizations, and Employ-
ment Taxes (EEE)). However, other per-
sonnel from the Treasury Department and
the IRS participated in the development of
the regulation.
List of Subjects in 26 CFR Part 31
Employment taxes, Income taxes,
Penalties, Pensions, Railroad retirement,
Reporting and recordkeeping require-
ments, Social security, Unemployment
compensation.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 31 is
amended as follows:
PART 31--EMPLOYMENT TAXES
AND COLLECTION OF INCOME AT
THE SOURCE
Paragraph 1. The authority citation
for part 31 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805.
* * * * *
Par. 2. Section 31.3405(e)-1 is added
to read as follows:
§31.3405(e)-1 Questions and answers
relating to withholding on pensions,
annuities, and certain other deferred
income.
(a) The following questions and
answers apply for purposes of determin-
ing whether a payor of periodic payments
or nonperiodic distributions from pen-
sions, annuities, and certain other deferred
income (other than eligible rollover distri-
butions) must withhold federal income tax
under section 3405(a) or (b) of the Code.
For purposes of this section, references to
the United States include possessions of
the United States.
(b)(1) Q-1. Is an Army Post Office
(APO), a Fleet Post Office (FPO), or a
Diplomatic Post Office (DPO) address an
address located within the United States
for purposes of section 3405(e)(13)(A)?
(2) A-1. For purposes of section
3405(e)(13)(A), an APO, an FPO, or a
DPO address is an address located within
the United States.
(c)(1) Q-2. Is the payor of a desig-
nated distribution described in section
3405(a) or (b) required to withhold
income tax from the distribution if the
payee’s residence address that is pro-
vided to the payor is located within the
United States?
(2) A-2. If the payee’s residence
address that is provided to the payor of a
designated distribution described in sec-
tion 3405(a) or (b) is located within the
United States, then the payor is required
to withhold income tax from the distri-
bution unless the payee has made a valid
election of no withholding in accor-
dance with section 3405(a)(2) or (b)(2).
Any election of no withholding with
respect to such a distribution under sec-
tion 3405(a)(2) or (b)(2) is not valid if
the payee instructs the payor to do one or
more of the following in connection with
the distribution:
(i) Send the distribution to a financial
institution or other person located outside
of the United States;
(ii) Send the distribution to a finan-
cial institution or other person located
within the United States with further
instructions (such as for further credit
to instructions) directing that the funds
be forwarded to a financial institution
or other person located outside of the
United States; or
(iii) Send the distribution to a finan-
cial institution or other person pursuant to
payment instructions (including addenda
information) that reference an Interna-
tional Automated Clearing House Trans-
action (IAT), International Bank Account
Number (IBAN), Society for Worldwide
Interbank Financial Telecommunication
(SWIFT) Business Identifier Code (BIC),
or similar identifier linked to a financial
institution or other person located outside
of the United States.
(d)(1) Q-3. Is the payor of a designated
distribution described in section 3405(a)
or (b) required to withhold income tax
from the distribution if the payee’s resi-
dence address that is provided to the payor
is located outside of the United States?
(2) A-3. Unless section 3405(e)(13)
(B) (which provides an exception for
certain nonresident aliens) applies, if the
payee’s residence address that is pro-
vided to the payor is located outside of
the United States, the payor of a desig-

November 4, 2024 1086 Bulletin No. 2024–45
nated distribution described in section
3405(a) or (b) is required to withhold
income tax from the distribution with-
out regard to the delivery instructions
and without regard to any request by the
payee to elect no withholding. Withhold-
ing would be required, in this case, even
if the payee has requested that the distri-
bution be delivered to a financial insti-
tution or other person located within the
United States.
(e)(1) Q-4. Is the payor of a designated
distribution described in section 3405(a)
or (b) required to withhold income tax
from the distribution if the payee has not
provided the payor with the payee’s resi-
dence address?
(2) A-4. If a payee has not provided
the payor of a designated distribution
described in section 3405(a) or (b) with
the payee’s residence address, the payor is
required to withhold income tax from the
distribution. Such a payee may not elect
no withholding under section 3405(a)(2)
or (b)(2), and any purported election of no
withholding by such a payee is not valid.
For purposes of this section, a payee who
has provided the payor with an address
for the payee’s nominee, trustee, or agent
without also providing the payee’s res-
idence address has not provided a resi-
dence address.
(f)(1) Q-5. Do the withholding rules
under section 3405(a) and (b) apply to a
payee who is to receive a payment or dis-
tribution that is subject to the withhold-
ing rules that apply to nonresident aliens
(or that would be so subject but for a tax
treaty)?
(2) A-5. In accordance with section
3405(e)(1)(B)(iii), a designated distri-
bution does not include a distribution of
a United States-source payment that is
subject to withholding under the rules of
sections 1441 through 1446 of the Code
(or that would be so subject but for a
tax treaty). Therefore, the withholding
rules under section 3405(a) and (b) do
not apply to such a distribution. For
example, section 3405(a) or (b) with-
holding would not apply to a pension or
other deferred compensation plan dis-
tribution to be made to a payee who is
a nonresident alien (or other individual
payee who is presumed to be a foreign
person under the presumption rules of
§1.1441-1(b)(3)). In such a case, with-
holding under the rules of section 1441,
rather than under the rules of section
3405(a) or (b), would apply to such a
distribution.
(g)(1) Q-6. What is the applicability
date of this section?
(2) A-6. This section applies with
respect to payments and distributions
made on or after January 1, 2026. How-
ever, taxpayers may apply it to earlier pay-
ments and distributions.
Douglas W. O’Donnell,
Deputy Commissioner.
Approved: September 21, 2024
Aviva R. Aron-Dine,
Deputy Assistant Secretary of the Trea-
sury (Tax Policy).
(Filed by the Office of the Federal Register October
18, 2024, 8:45 a.m., and published in the issue of the
Federal Register for October 21, 2024, 89 FR 84079)
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)
Rev. Rul. 2024-24
This revenue ruling provides various
prescribed rates for federal income tax
purposes for November 2024 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month
for purposes of section 1274(d) of the
Internal Revenue Code. Table 2 contains
the short-term, mid-term, and long-term
adjusted applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the appro-
priate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. How-
ever, under section 42(b)(2), the appli-
cable percentage for non-federally sub-
sidized new buildings placed in service
after July 30, 2008, shall not be less than
9%. Finally, Table 5 contains the federal
rate for determining the present value of
an annuity, an interest for life or for a term
of years, or a remainder or a reversionary
interest for purposes of section 7520.

Bulletin No. 2024–45 1087 November 4, 2024
REV. RUL. 2024-24 TABLE 1
Applicable Federal Rates (AFR) for November 2024
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR4.00%3.96%3.94%3.93%
110% AFR4.41%4.36%4.34%4.32%
120% AFR4.81%4.75%4.72%4.70%
130% AFR5.22%5.15%5.12%5.10%
Mid-term
AFR3.70%3.67%3.65%3.64%
110% AFR 4.08%4.04%4.02%4.01%
120% AFR4.45%4.40%4.38%4.36%
130% AFR4.83%4.77%4.74%4.72%
150% AFR5.59%5.51%5.47%5.45%
175% AFR6.52%6.42%6.37%6.34%
Long-term
AFR4.15%4.11%4.09%4.08%
110% AFR4.57%4.52%4.49%4.48%
120% AFR4.99%4.93%4.90%4.88%
130% AFR5.41%5.34%5.30%5.28%
REV. RUL. 2024-24 TABLE 2
Adjusted AFR for November 2024
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR3.03%3.01%3.00%2.99%
Mid-term adjusted AFR2.81%2.79%2.78%2.77%
Long-term adjusted AFR3.14%3.12%3.11%3.10%
REV. RUL. 2024-24 TABLE 3
Rates Under Section 382 for November 2024
Adjusted federal long-term rate for the current month3.14%
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.)
3.31%
REV. RUL. 2024-24 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for November 2024
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after
July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.91%
Appropriate percentage for the 30% present value low-income housing credit 3.39%

November 4, 2024 1088 Bulletin No. 2024–45
REV. RUL. 2024-24 TABLE 5
Rate Under Section 7520 for November 2024
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 interest
4.4%

Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
November 2024. See Rev. Rul. 2024-24, page 1086.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
November 2024. See Rev. Rul. 2024-24, page 1086.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and
Certain Built-In Losses
Following Ownership
Change
The adjusted applicable federal long-term rate
is set forth for the month of November 2024. See
Rev. Rul. 2024-24, page 1086.
Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
November 2024. See Rev. Rul. 2024-24, page 1086.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of November 2024. See Rev.
Rul. 2024-24, page 1086.
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month
of November 2024. See Rev. Rul. 2024-24, page
1086.
Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
November 2024. See Rev. Rul. 2024-24, page 1086.
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
November 2024. See Rev. Rul. 2024-24, page 1086.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of November 2024. See Rev.
Rul. 2024-24, page 1086.
Section 7872.—Treatment
of Loans With Below-
Market Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
November 2024. See Rev. Rul. 2024-24, page 1086.

Bulletin No. 2024–45 1089 November 4, 2024
Part III
Sustainable Aviation Fuel
Credit; 40BSAF-GREET
2024
Notice 2024-74
SECTION 1. PURPOSE
This notice provides additional guid-
ance regarding the sustainable aviation
fuel (SAF) credits under §§ 40B and
6426(k) of the Internal Revenue Code
(collectively, SAF credit or SAF credits).
1

Specifically, this notice instructs taxpayers
using the 40BSAF-GREET 2024 model
with respect to claims that relate to the
sale or use of a SAF qualified mixture on
or after October 18, 2024 to use the Octo-
ber 2024 version of the 40BSAF-GREET
2024 model and accompanying user man-
ual for purposes of Notice 2024-37, 2024-
21 I.R.B. 1191. The Department of the
Treasury (Treasury Department) and the
Internal Revenue Service (IRS) developed
the guidance in this notice in consultation
with the Department of Energy (DOE).
SECTION 2. BACKGROUND
Sections 40B and 6426(k) generally
allow a SAF credit for producing and then
selling or using a SAF qualified mixture.
Under § 40B(d)(1)(D), the SAF must be
certified to have a lifecycle greenhouse
gas emissions reduction percentage of at
least 50 percent. Section 40B(e) defines
the term “lifecycle greenhouse gas emis-
sions reduction percentage” to mean, with
respect to any SAF, the percentage reduc-
tion in lifecycle greenhouse gas emissions
achieved by such fuel, as compared with
petroleum-based jet fuel, as defined in
accordance with (1) the most recent Car-
bon Offsetting and Reduction Scheme
for International Aviation that has been
adopted by the International Civil Avia-
tion Organization with the agreement of
the United States or (2) any similar meth-
odology that satisfies the criteria under
§ 211(o)(1)(H) of the Clean Air Act (42
U.S.C. 7545(o)(1)(H)), as in effect on
August 16, 2022.
The Treasury Department and IRS
have issued several notices regarding the
SAF credit, including Notice 2024-37,
2

which allows a SAF producer to use the
40BSAF-GREET 2024 model, released
April 30, 2024 (April 2024 version), to
calculate the greenhouse gas emissions
reduction percentage for purposes of the
SAF credits.
The DOE has released an updated ver-
sion of the 40BSAF-GREET 2024 model
and accompanying user manual. This
updated version of the 40BSAF-GREET
2024 model, released October 18, 2024
(October 2024 version), addresses a cal-
culation issue in the April 2024 version
related to catalyst inputs for the Alcohol
to Jet (ATJ) SAF pathways. This calcu-
lation issue relates to the proportion of
catalyst used to produce certain amounts
of SAF for which the April 2024 version
does not account, resulting in inaccurate
estimates of the emissions associated with
the catalyst input. The October 2024 ver-
sion changes the calculation of the ATJ
SAF pathways by lowering the emissions
associated with the catalyst input. This
is the only change made by the October
2024 version.
All publicly available versions of the
40BSAF-GREET 2024 model, the accom-
panying user manual, additional informa-
tion including Frequently Asked Ques-
tions, and a log of changes to the model
are available at https://www.energy.gov/
eere/greet.
SECTION 3. 40BSAF-GREET 2024
SAFE HARBORS IN NOTICE 2024-
37
A taxpayer using a 40BSAF-GREET
2024 safe harbor described in sections
3.01(3) and 4.01(2) of Notice 2024-37 to
calculate its emissions reduction percent-
age with respect to claims that relate to the
sale or use of a SAF qualified mixture on
or after October 18, 2024, must use the
October 2024 version of the 40BSAF-
GREET 2024 model.
SECTION 4. EFFECTIVE DATE OF
THIS NOTICE
The guidance in this notice is effective
on October 18, 2024.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
Sections 3.01(3) and 4.01(2) of Notice
2024-37 are amplified.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice
is Camille Edwards Bennehoff of the
Office of the Associate Chief Counsel
(Passthroughs & Special Industries). For
further information regarding this notice,
please contact Ms. Edwards Bennehoff at
(202) 317-6855 (not a toll-free number).
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2024-76
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month aver-
age segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the inter-
est rate on 30-year Treasury securities
under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008 and the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to sin-
1
Unless otherwise specified, all references to “section” or “§” are references to sections of the Internal Revenue Code.
2
Notice 2023-6, 2023-2 I.R.B. 328 and Notice 2024-6, 2024-2 I.R.B. 34 also address the SAF credits.

November 4, 2024 1090 Bulletin No. 2024–45
gle-employer plans (except for CSEC
plans under § 414(y)) pursuant to § 412.
Section 430(h)(2) specifies the inter-
est rates that must be used to determine
a plan’s target normal cost and funding
target. Under this provision, present
value is generally determined using three
24-month average interest rates (“seg-
ment rates”), each of which applies to
cash flows during specified periods. To
the extent provided under § 430(h)(2)(C)
(iv), these segment rates are adjusted by
the applicable percentage of the 25-year
average segment rates for the period end-
ing September 30 of the year preceding
the calendar year in which the plan year
begins.
1
However, an election may be
made under § 430(h)(2)(D)(ii) to use the
monthly yield curve in place of the seg-
ment rates.
Section 1.430(h)(2)-1(d) provides
rules for determining the monthly cor-
porate bond yield curve,
2
and § 1.430(h)
(2)-1(c) provides rules for determining
the 24-month average corporate bond
segment rates used to compute the target
normal cost and the funding target. Con-
sistent with the methodology specified in
§ 1.430(h)(2)-1(d), the monthly corporate
bond yield curve derived from September
2024 data is in Table 2024-9 at the end
of this notice. The spot first, second, and
third segment rates for the month of Sep-
tember 2024 are, respectively, 4.17, 4.76,
and 5.25.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the appli-
cable minimum and maximum percent-
ages of the corresponding 25-year aver-
age segment rates. Those percentages are
95% and 105% for plan years beginning
in 2023, 2024 and 2025. For this purpose,
any 25-year average segment rate that is
less than 5% is deemed to be 5%. The
25-year average segment rates for plan
years beginning in 2023, 2024 and 2025
were published in Notice 2022-40, 2022-
40 I.R.B. 266, Notice 2023-66, 2023-40
I.R.B. 992, and Notice 2024-67, 2024-41
I.R.B. 726, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for October
2024 without adjustment for the 25-year
average segment rate limits are as follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second Segment Third Segment
October 2024 5.05 5.31 5.37
The adjusted 24-month average seg-
ment rates set forth in the chart below
reflect § 430(h)(2)(C)(iv) of the Code. The
24-month averages applicable for October
2024, adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average seg-
ment rates in accordance with § 430(h)(2)
(C)(iv) of the Code, are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2023October 20245.055.315.74
2024October 20245.055.315.59
2025October 20245.055.315.50
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to multi-
employer plans pursuant to § 412. Section
431(c)(6)(B) specifies a minimum amount
for the full-funding limitation described in
§ 431(c)(6)(A), based on the plan’s current
liability. Section 431(c)(6)(E)(ii)(I) pro-
vides that the interest rate used to calculate
current liability for this purpose must be
no more than 5 percent above and no more
than 10 percent below the weighted aver-
age of the rates of interest on 30-year Trea-
sury securities during the four-year period
ending on the last day before the beginning
of the plan year. Notice 88-73, 1988-2 C.B.
383, provides guidelines for determining
the weighted average interest rate. The rate
of interest on 30-year Treasury securities
for September 2024 is 4.04 percent. The
Service determined this rate as the average
of the daily determinations of yield on the
1
Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
2
For months before February 2024, the monthly corporate bond yield curve was determined in accordance with Notice 2007-81, 2007-44 I.R.B. 899. Section 1.430(h)(2)-1(d) generally adopts
the methodology for determining the monthly corporate bond yield curve under Notice 2007-81 but includes two enhancements to take into account subsequent changes in the bond market.
Those enhancements are described in the preamble to TD 9986 (89 FR 2127).

Bulletin No. 2024–45 1091 November 4, 2024
30-year Treasury bond maturing in August
2054. For plan years beginning in October
2024, the weighted average of the rates of
interest on 30-year Treasury securities and
the permissible range of rates used to cal-
culate current liability are as follows:
Treasury Weighted Average Rates
For Plan Years Beginning In30-Year Treasury Weighted AveragePermissible Range 90% to 105%
October 20243.673.30 to 3.85
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Section 1.417(e)-1(d)(3) pro-
vides guidelines for determining the min-
imum present value segment rates. Pursu-
ant to that section, the minimum present
value segment rates determined for Sep-
tember 2024 are as follows:
Minimum Present Value Segment Rates
Month First Segment Second Segment Third Segment
September 2024 4.17 4.76 5.25
DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of Associ-
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development
of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Tony Montanaro at
626-927-1475 (not toll-free number).

November 4, 2024 1092 Bulletin No. 2024–45
Table 2024-9
Monthly Yield Curve for September 2024
Derived from September 2024 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.54.6620.55.1240.55.2660.55.3380.55.37
1.04.4321.05.1341.05.2661.05.3481.05.37
1.54.2321.55.1441.55.2761.55.3481.55.37
2.04.1022.05.1442.05.2762.05.3482.05.37
2.54.0322.55.1542.55.2762.55.3482.55.37
3.04.0023.05.1543.05.2763.05.3483.05.37
3.54.0123.55.1543.55.2863.55.3483.55.37
4.04.0424.05.1644.05.2864.05.3484.05.38
4.54.0824.55.1644.55.2864.55.3484.55.38
5.04.1325.05.1645.05.2865.05.3485.05.38
5.54.1825.55.1645.55.2965.55.3585.55.38
6.04.2426.05.1646.05.2966.05.3586.05.38
6.5
4.2926.55.1746.55.2966.55.3586.55.38
7.04.3427.05.1747.05.2967.05.3587.05.38
7.54.4027.55.1747.55.2967.55.3587.55.38
8.04.4528.05.1748.05.3068.05.3588.05.38
8.54.5028.55.1748.55.3068.55.3588.55.38
9.04.5529.05.1849.05.3069.05.3589.05.38
9.54.5929.55.1849.55.3069.55.3589.55.38
10.04.6330.05.1950.05.3070.05.3590.05.38
10.54.6730.55.1950.55.3170.55.3690.55.38
11.04.7131.05.2051.05.3171.05.3691.05.38
11.54.7531.55.2051.55.3171.55.3691.55.38
12.04.7832.05.2052.05.3172.05.3692.05.38
12.54.8232.55.2152.55.3172.55.3692.55.39
13.04.8533.05.2153.0
5.3173.05.3693.05.39
13.54.8833.55.2253.55.3273.55.3693.55.39
14.04.9034.05.2254.05.3274.05.3694.05.39
14.54.9334.55.2254.55.3274.55.3694.55.39
15.04.9535.05.2355.05.3275.05.3695.05.39
15.54.9835.55.2355.55.3275.55.3695.55.39
16.05.0036.05.2356.05.3276.05.3696.05.39
16.55.0236.55.2456.55.3276.55.3696.55.39
17.05.0337.05.2457.05.3377.05.3797.05.39
17.55.0537.55.2457.55.3377.55.3797.55.39
18.05.0738.05.2558.05.3378.05.3798.05.39
18.55.0838.55.2558.55.3378.55.3798.55.39
19.05.0939.05.2559.05.3379.05.3799.05.39
19.55.1039.55.2659.55.3379.55.3799.5
5.39
20.05.1140.05.2660.05.3380.05.37100.05.39

Bulletin No. 2024–45 1093 November 4, 2024
Guidance Under Sections
414(aa) and 402(c)(12) of
the Internal Revenue Code
with Respect to Inadvertent
Benefit Overpayments
Notice 2024-77
I. PURPOSE
This notice provides guidance in the
form of questions and answers on sections
414(aa) and 402(c)(12) of the Internal
Revenue Code (Code) as added by sec-
tion 301(b) of Division T of the Consol-
idated Appropriations Act, 2023, Pub. L.
117-328, 136 Stat. 4459 (2022), known as
the SECURE 2.0 Act of 2022 (SECURE
2.0 Act).
1
Section 414(aa) of the Code
addresses the requirements of sections
401(a) and 403 with respect to inadvertent
benefit overpayments. Section 402(c)(12)
addresses the treatment of certain inadver-
tent benefit overpayments as eligible roll-
over distributions.
This notice provides guidance on the
impact of sections 414(aa) and 402(c)(12)
on the Employee Plans Compliance Res-
olution System (EPCRS), set forth in
Revenue Procedure 2021-30, 2021-31
IRB 172, including the impact on correc-
tion of inadvertent benefit overpayments.
This notice is intended to assist taxpayers
by providing interim guidance and is not
intended to provide comprehensive guid-
ance with respect to sections 414(aa) and
402(c)(12).
The Department of the Treasury (Trea-
sury Department) and the Internal Rev-
enue Service (IRS) invite comments on
the guidance in this notice and any other
aspect of sections 414(aa) and 402(c)(12),
including how those sections are affected
by the provisions of section 301(c) and (d)
of the SECURE 2.0 Act.
II. BACKGROUND
A. Rev. Proc. 2021‑30.
Rev. Proc. 2021-30 sets forth EPCRS,
a system of correction programs for cer-
tain employer-sponsored retirement plans.
Rev. Proc. 2021-30 describes correction
methods for overpayments, including a
method by which overpayments may be
corrected through corrective payments
to the plan (whether recouped from par-
ticipants or beneficiaries or paid by plan
sponsors or other third parties).
2
A partic-
ipant or beneficiary may make corrective
payments in a lump sum, in installments,
or, with regard to overpayments involving
periodic payments, through reductions
in future payments.
3
If a plan sponsor
chooses not to seek recoupment from a
participant or beneficiary (or is unsuc-
cessful in obtaining full recoupment), the
plan sponsor or another person generally
must make the corrective payments to the
extent the full overpayment amount is not
repaid to the plan.
4
In addition, under Rev.
Proc. 2021-30, if an overpayment is not
corrected by plan amendment, the plan
sponsor generally must notify the partici-
pant or beneficiary in writing that the over-
payment is not eligible for the favorable
tax treatment accorded to distributions
from an eligible retirement plan and is not
eligible for tax-free rollover.
5
For defined
benefit plans, Rev. Proc. 2021-30 provides
two additional correction methods, the
funding exception correction method and
contribution credit correction method, that
reduce the need for corrective payments.
6

Under the funding exception correction
method, if a plan subject to section 436
is sufficiently funded and satisfies other
eligibility requirements, no corrective
payments from any party are required.
Under the contribution credit correction
method, required corrective payments are
reduced, based on a specified formula, by
certain additional contributions in excess
of minimum funding requirements and by
increases in the plan’s minimum funding
requirements attributable to the overpay-
ment.
B. Section 414(aa) of the Code.
Section 301(b)(1) of the SECURE 2.0
Act added section 414(aa) to the Code.
Section 414(aa)(1) provides that, as a gen-
eral rule, a plan will not fail to be treated
as described in clause (i), (ii), (iii) or (iv)
of section 219(g)(5)(A)
7
and will not fail
to be treated as satisfying the require-
ments of section 401(a) or 403 merely
because the plan fails to obtain payment
from a participant, beneficiary, employer,
plan sponsor, fiduciary, or other party on
account of any inadvertent benefit over-
payment, or the plan sponsor amends the
plan to increase past, or decrease future,
benefit payments to affected participants
and beneficiaries in order to adjust for
prior inadvertent benefit overpayments.
Section 414(aa)(2) provides that sec-
tion 414(aa)(1) will not fail to apply to
a plan merely because, after discovering
a benefit overpayment, the plan reduces
future benefit payments to the correct
amount provided for under the terms of
the plan or seeks recovery from the person
responsible for the overpayment.
Section 414(aa)(3) provides that
nothing in section 414(aa) relieves an
employer of any obligation imposed on it
to make contributions to a plan to meet the
minimum funding standards under sec-
tions 412 and 430 or to prevent or restore
an impermissible forfeiture in accordance
with section 411.
Section 414(aa)(4) provides that, not-
withstanding section 414(aa)(1), a plan
to which section 414(aa)(1) applies must
observe any limitations imposed on it
by section 401(a)(17) or 415. The plan
may enforce these limitations using any
1
Section 301(a) of the SECURE 2.0 Act amends title I of the Employee Retirement Income Security Act of 1974, Pub. L. 93-406, 88 Stat. 829, as amended (ERISA), by adding section 206(h)
to ERISA. This notice does not address section 206(h) of ERISA.
2
Other correction methods may be available. For example, a plan sponsor may also be able to amend the plan to conform to the plan’s operations. See section 6.06(3)(a) and (4)(a) of Rev.
Proc. 2021–30.
3
See section 6.06(3)(c) and (4)(c) of Rev. Proc. 2021–30 and sections 2.04(2) and 2.05(2) of Appendix B to Rev. Proc. 2021–30.
4
See section 6.06(3)(b)(iii) and (4)(b)(iii) of Rev. Proc. 2021–30.
5
See section 6.06(3)(b)(ii) and (4)(b)(ii) of Rev. Proc. 2021–30.
6
See section 6.06(3)(d) of Rev. Proc. 2021–30 and section 2.05(3) and (4) of Appendix B to Rev. Proc. 2021–30.
7
A plan described in section 219(g)(5)(A)(i), (ii), (iii), or (iv) is (i) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), (ii) an annuity plan
described in section 403(a), (iii) a plan established for its employees by the United States, by a State or political subdivision thereof or any agency or instrumentality of any of the foregoing,
or (iv) an annuity contract described in section 403(b).

November 4, 2024 1094 Bulletin No. 2024–45
method approved by the Secretary for
recouping benefits previously paid or allo-
cations previously made in excess of the
limitations.
Section 414(aa)(5) provides that the
Secretary may issue regulations or other
guidance of general applicability specify-
ing how benefit overpayments and their
recoupment or non-recoupment from a
participant are taken into account for pur-
poses of satisfying any requirement appli-
cable to a plan to which section 414(aa)(1)
applies.
C. Section 402(c)(12) of the Code.
Section 301(b)(2) of the SECURE 2.0
Act added section 402(c)(12) to the Code.
Section 402(c)(12) applies in the case of
an inadvertent benefit overpayment from
a plan to which section 414(aa)(1) applies
that is transferred to an eligible retire-
ment plan by or on behalf of a participant
or beneficiary. Section 402(c)(12)(A)
provides that the portion of the overpay-
ment with respect to which recoupment is
not sought on behalf of the plan will be
treated as having been paid in an eligible
rollover distribution if the payment would
have been an eligible rollover distribution
but for being an overpayment. Section
402(c)(12)(B) provides that the portion
of the overpayment with respect to which
recoupment is sought on behalf of the plan
will be permitted to be returned to the
plan and, in the case of an overpayment
returned to the plan, will be treated as an
eligible rollover distribution transferred to
the plan by the participant or beneficiary
who received the overpayment (and the
plans making and receiving the transfer
are treated as permitting the transfer).
D. Sections 301(c) and (d) of the
SECURE 2.0 Act.
Section 301(c) of the SECURE 2.0
Act provides that the amendments made
by section 301 are effective as of the date
of enactment of the SECURE 2.0 Act
(December 29, 2022).
Section 301(d) provides that plans,
fiduciaries, employers, and plan sponsors
are entitled to rely on:
(1) a reasonable good faith interpreta-
tion of then existing administrative guid-
ance for inadvertent benefit overpayment
recoupments and recoveries that com-
menced before December 29, 2022, and
(2) determinations made before
December 29, 2022, by the responsible
plan fiduciary, in the exercise of its fidu-
ciary discretion, not to seek recoupment
or recovery of all or part of an inadvertent
benefit overpayment.
In the case of a benefit overpayment
that occurred before December 29, 2022,
any installment payments made by the
participant or beneficiary to the plan or
any reduction in periodic benefit payments
to the participant or beneficiary that were
made in recoupment of such overpayment,
and that commenced before December 29,
2022, may continue after that date.
Nothing in section 301(d) relieves a
fiduciary from responsibility for an over-
payment that resulted from a breach of its
fiduciary duties.
III. GUIDANCE REGARDING
SECTIONS 414(aa) AND 402(c)(12)
OF THE CODE
Q-1. How is an “inadvertent benefit
overpayment” defined for purposes of
sections 414(aa) and 402(c)(12) and this
notice?
A-1. An “inadvertent benefit overpay-
ment,” for purposes of sections 414(aa)
and 402(c)(12) and this notice, is an eligi-
ble inadvertent failure, as defined in sec-
tion 305(e) of the SECURE 2.0 Act,
8
that
occurs due to a payment made from a plan
described in section 219(g)(5)(A)(i)-(iv)
of the Code
9
that exceeded the amount
payable under the terms of the plan or a
limitation provided in the Code or regula-
tions. An inadvertent benefit overpayment
also includes a payment made before a
distribution is permitted under the Code or
under the terms of the plan. However, an
inadvertent benefit overpayment does not
include (i) a payment made to a disquali-
fied person as defined in section 4975(e)(2)
or owner-employee as defined in section
401(c), or (ii) a payment that is made
pursuant to a correction method provided
under Rev. Proc. 2021–30 for a different
qualification failure.
Q-2. Does section 414(aa)(1)(A) affect
the requirement in section 6.06 of Rev.
Proc. 2021-30
10
that an overpayment be
corrected through corrective payments?
A-2. Yes. Except as provided in section
414(aa)(4) and (5), under section 414(aa)
(1)(A), a failure to obtain payment on
account of any inadvertent benefit over-
payment does not affect a plan’s satisfac-
tion of the applicable provisions of sections
401(a) and 403. Thus, except as described
in Q&A-5 of this notice with respect to fail-
ures to observe any of the funding-based
benefit restrictions of section 436(b), (c),
(d), or (e) applicable to certain single-em-
ployer defined benefit plans (section 436
failure) and as described in Q&A-6 of this
notice with respect to failures to observe
any limitation imposed by section 401(a)
(17) or 415 (section 401(a)(17) and 415
failures), any requirement described in
section 6.06 of Rev. Proc. 2021-30 that a
corrective payment be made to a plan with
respect to an inadvertent benefit overpay-
ment no longer applies.
Although a corrective payment gen-
erally is not required for an inadvertent
benefit overpayment, other failures may
occur as the result of an inadvertent ben-
efit overpayment that could require a cor-
rective payment. For example, if a plan
participant received an inadvertent benefit
overpayment due to an incorrect alloca-
tion of a profit-sharing contribution under
a plan, another plan participant may have
received a benefit underpayment. In this
case, the benefit underpayment would be
considered an additional failure in need of
8
An “eligible inadvertent failure” is defined in section 305(e) of the SECURE 2.0 Act as a failure that (1) occurs despite the existence of established practices and procedures that, as relevant
to employer-sponsored plans, satisfy the standards set forth in section 4.04 of Rev. Proc. 2021–30, (2) is not egregious, (3) does not relate to the diversion or misuse of plan assets, and (4)
is not directly or indirectly related to an abusive tax avoidance transaction. See Notice 2023-43, 2023-24 IRB 919, for additional information and conditions with respect to expansion of
EPCRS under section 305 of the SECURE 2.0 Act.
9
See footnote 7 for the definition of a plan described in section 219(g)(5)(A)(i), (ii), (iii), or (iv).
10
Some of the correction methods described in section 6.06 of Rev. Proc. 2021-30 are also described in sections 2.04 and 2.05 of Appendix B to Rev. Proc. 2021–30. In this notice, a reference
to section 6.06 also includes parallel language in section 2.04 or 2.05 of Appendix B.

Bulletin No. 2024–45 1095 November 4, 2024
correction, which may require a corrective
payment. In addition, section 414(aa)(3)
may require an employer to make a cor-
rective payment to prevent or restore an
impermissible forfeiture in accordance
with section 411.
Q-3. Does section 414(aa)(1) prohibit
a plan sponsor from seeking recoupment
of inadvertent benefit overpayments from
overpayment recipients?
A-3. No. Section 414(aa)(1) does not
change the rule in section 6.06 of Rev.
Proc. 2021-30 that recoupment from over-
payment recipients is permitted but not
required. For example, a plan sponsor
may continue to use the overpayment cor-
rection methods in section 6.06(3)(c) and
(4)(c) and in section 2.05(2)(c) of Appen-
dix B to Rev. Proc. 2021-30. As noted in
footnote 1, this notice does not address
ERISA section 206(h), which, in part,
imposes conditions on recoupment of an
inadvertent benefit overpayment from a
participant or beneficiary.
Q-4. Under what circumstances may
an individual who rolls over an inadver-
tent benefit overpayment to an eligible
retirement plan retain the overpayment in
tax-favored status?
A-4. Under section 402(c)(12)(A), the
portion of a rolled-over inadvertent benefit
overpayment for which recoupment is not
sought is treated as an eligible rollover dis-
tribution if the payment would have been
an eligible rollover distribution but for
being an overpayment. Accordingly, sub-
ject to the exception described in Q&A-6
of this notice for a section 401(a)(17) or
415 failure, an individual who receives an
inadvertent benefit overpayment and rolls
over that overpayment pursuant to a direct
or 60-day rollover retains the tax-favored
status of the overpayment for the portion
of the overpayment for which recoupment
is not sought.
Under section 402(c)(12)(B), if an
inadvertent benefit payment is rolled
over from an originating plan to a sec-
ond plan and recoupment of all or a por-
tion of the inadvertent benefit payment
is sought, then the amount that is sought
and transferred back to the originating
plan is treated both as an eligible rollover
distribution from the originating plan and
as an eligible rollover distribution trans-
ferred back to the originating plan. Addi-
tionally, under section 402(c)(12)(B),
both the originating plan and the second
plan are treated as permitting the transfer
back to the originating plan. Thus, without
regard to plan terms, the originating plan
is treated as permitting the transfer back
of the inadvertent benefit overpayment as
an eligible rollover distribution, and the
transfer from the second plan is treated as
an eligible rollover distribution.
The portion of an inadvertent bene-
fit overpayment for which recoupment
is sought that is not returned to the orig-
inating plan is not treated as an eligible
rollover distribution. In accordance with
the requirements of section 6.06(3)(b)(ii)
or (4)(ii) of Rev. Proc. 2021-30, the plan
sponsor must notify the individual that
any unreturned portion of the inadver-
tent benefit overpayment is not eligible
for favorable tax treatment accorded to
distributions from an eligible retirement
plan, as defined in section 402(c)(8)(B)
(and, specifically, is not eligible for tax-
free rollover). The notice provided to the
participant regarding tax treatment of the
unreturned portion of the overpayment
may be combined with a plan sponsor’s
recoupment request.
Q-5. What is the treatment under sec-
tions 414(aa) and 402(c)(12) for inadver-
tent benefit overpayments resulting from a
section 436 failure?
A-5. With respect to a section 436 fail-
ure under a plan that occurs as a result
of an inadvertent benefit overpayment to
an individual, to the extent the inadver-
tent benefit overpayment is not recouped
on behalf of the plan from the individ-
ual, the plan sponsor or another person
must make a corrective payment under
the same circumstances as apply gen-
erally under Rev. Proc. 2021–30 for an
overpayment that is not an inadvertent
benefit overpayment. This requirement
is provided pursuant to the Secretary’s
authority under section 414(aa)(5) to
issue guidance specifying how benefit
overpayments and their recoupment or
non-recoupment are taken into account
for purposes of satisfying any require-
ment applicable to a plan to which sec-
tion 414(aa)(1) applies and is an excep-
tion to the rule described in Q&A-2 that
section 6.06 of Rev. Proc. 2021–30 no
longer requires a corrective payment to a
plan with respect to an inadvertent bene-
fit overpayment.
In addition, to the extent an individual
rolled over an inadvertent benefit overpay-
ment resulting from a section 436 failure,
the rules relating to rollover treatment if
an inadvertent benefit overpayment either
is or is not sought that are described in
Q&A-4 apply.
Q-6. What is the treatment under sec-
tions 414(aa) and 402(c)(12) for inadver-
tent benefit overpayments resulting from
section 401(a)(17) or 415 failures?
A-6. Under section 414(aa)(4), a plan
must observe the limitations imposed
by sections 401(a)(17) and 415 and may
enforce those limitations using any method
approved by the Secretary for recouping
benefits previously paid or allocations
previously made in excess of those lim-
itations. This requirement to comply with
sections 401(a)(17) and 415 is an excep-
tion to the rule described in Q&A-2 of this
notice that any requirement described in
section 6.06 of Rev. Proc. 2021-30 that a
corrective payment be made to a plan with
respect to an inadvertent benefit overpay-
ment no longer applies. Accordingly, with
respect to a section 401(a)(17) or 415 fail-
ure under a plan that occurs as a result of
an inadvertent benefit overpayment to an
individual, to the extent the inadvertent
benefit overpayment is not recouped on
behalf of the plan from the individual, the
plan sponsor or another person must make
a corrective payment under the same cir-
cumstances as apply under section 6.06 of
Rev. Proc. 2021–30 for an overpayment
that is not an inadvertent benefit overpay-
ment.
As described in Q&A-4 of this notice,
the portion of an inadvertent benefit over-
payment for which recoupment is sought
that is not returned to the originating plan
is not treated as an eligible rollover distri-
bution under section 402(c)(12). For pur-
poses of this rule, an inadvertent benefit
overpayment occurring as a result of a sec-
tion 401(a)(17) or 415 failure that requires
corrective payments under section 6.06 of
Rev. Proc. 2021-30 is treated as an inad-
vertent benefit overpayment for which
recoupment is sought. Accordingly, if, on
behalf of a plan, the plan sponsor does
not recoup from an individual a rolled-
over inadvertent benefit overpayment that
occurs as a result of a section 401(a)(17)
or 415 failure, the inadvertent benefit
overpayment is not treated as an eligible

November 4, 2024 1096 Bulletin No. 2024–45
rollover distribution. In accordance with
the requirements of section 6.06(3)(b)(ii)
and (4)(ii), the plan sponsor must notify
the individual that any portion of the inad-
vertent benefit overpayment not returned
to the plan is not eligible for favorable tax
treatment accorded to distributions from
an eligible retirement plan, as defined in
section 402(c)(8)(B) (and, specifically,
is not eligible for tax-free rollover). The
notice provided to the participant regard-
ing tax treatment of the unreturned por-
tion of the overpayment may be combined
with a recoupment request.
Q-7. May a plan sponsor amend a
plan to increase past benefit payments to
affected participants and beneficiaries,
in order to adjust for prior inadvertent
benefit overpayments pursuant to section
414(aa)(1)(B), in a manner that results in
a violation of section 401(a)(17), 415, or
436 for a past year?
A-7. Under section 414(aa)(4), not-
withstanding section 414(aa)(1), a plan
to which section 414(aa)(1) applies must
observe any limitations imposed on it by
sections 401(a)(17) and 415. Addition-
ally, under Q&A-1 of Notice 2023-43, a
plan sponsor may self-correct an eligible
inadvertent failure (which includes an
inadvertent benefit overpayment) only
if certain requirements are met, includ-
ing that the plan sponsor does not use
a correction method that is prohibited
under Rev. Proc. 2021-30. Under section
6.02(2)(d) of Rev. Proc. 2021-30, a cor-
rection method under Rev. Proc. 2021-30
should not violate another applicable
specific requirement of section 401(a) or
403(b), or a parallel requirement in part
2 of subtitle B of title I of ERISA (for
plans that are subject to part 2 of subti-
tle B of title I of ERISA). Therefore, an
amendment to increase past benefit pay-
ments pursuant to section 414(aa)(1)(B)
of the Code in a manner that results in a
violation of section 401(a)(17) or 415 for
a past year is not permitted.
An amendment to increase past bene-
fits pursuant to section 414(aa)(1)(B) that
results in a section 436 failure for a past
year is permitted only if contributions are
made in accordance with section 436(c)(2)
and section 6.02(4) of Rev. Proc. 2021-30.
Q-8. Are there any provisions of Rev.
Proc. 2021-30 that are modified or are no
longer applicable with respect to an inad-
vertent benefit overpayment to which sec-
tion 414(aa) or 402(c)(12) applies?
A-8. The following provisions of Rev.
Proc. 2021-30 are modified or are no lon-
ger applicable with respect to an inadver-
tent benefit overpayment to which section
414(aa) or 402(c)(12) applies:
• The definition of an overpayment
in sections 5.01(3)(c) and 5.02(4) of Rev.
Proc. 2021-30 is modified by Q&A-1 of
this notice for an overpayment that is an
inadvertent benefit overpayment.
• Any requirement in section 6.06(3)
(b)(ii) and (4)(b)(ii) of Rev. Proc. 2021-30
that a plan sponsor must notify an individ-
ual that an overpayment is not an eligible
rollover distribution no longer applies to
the portion of an inadvertent benefit over-
payment not sought for recoupment (other
than as specified in Q&A-4, Q&A-5, and
Q&A-6 of this notice with respect to the
portion of an inadvertent benefit overpay-
ment for which recoupment is sought but
is not returned to the originating plan).
• Any requirement of a corrective
payment in section 6.06 of Rev. Proc.
2021-30 no longer applies to an inadver-
tent benefit overpayment (other than as
specified in Q&A-5 of this notice with
respect to a section 436 failure and in
Q&A-6 of this notice with respect to a
section 401(a)(17) or 415 failure).
• Section 6.09(5) of Rev. Proc. 2021-
30, which provides relief from the excise
tax under section 4973, is no longer neces-
sary for any inadvertent benefit overpay-
ment that is treated as an eligible rollover
distribution under section 402(c)(12).
Accordingly, under those circumstances,
section 6.09(5) of Rev. Proc. 2021-30 no
longer applies.
• Section 6.09(6) of Rev. Proc.
2021-30, which provides relief from the 10
percent additional income tax under sec-
tion 72(t), is no longer necessary for any
inadvertent benefit overpayment that is
treated as an eligible rollover distribution
under section 402(c)(12). Accordingly,
under those circumstances, section 6.09(6)
of Rev. Proc. 2021-30 no longer applies.
IV. APPLICABILITY DATE
This notice applies with respect to sec-
tion 414(aa) on the date it is issued. For
periods before the date of issuance of this
notice, a taxpayer may rely on a good
faith, reasonable interpretation of section
414(aa).
This notice applies with respect to sec-
tion 402(c)(12) on the date it is issued.
Section 402(c)(12) applies as of Decem-
ber 29, 2022, regardless of when an inad-
vertent benefit overpayment was made.
For periods before the date of issuance of
this notice, a taxpayer may rely on a good
faith, reasonable interpretation of section
402(c)(12).
A plan sponsor that interpreted sec-
tion 414(aa) or 402(c)(12) during periods
before the date of issuance of this notice
in a manner that accords with this notice
will be treated as having applied a good
faith, reasonable interpretation of section
414(aa) or 402(c)(12).
V. REQUEST FOR COMMENTS
The Treasury Department and the IRS
invite comments on the guidance in this
notice and any other aspect of sections
414(aa) and 402(c)(12), including as those
sections are affected by the provisions of
section 301(c) and (d) of the SECURE 2.0
Act.
Comments should be submitted in
writing on or before December 16, 2024,
and should include a reference to Notice
2024-77. Comments may be submitted
electronically via the Federal eRulemak-
ing Portal at www.regulations.gov (type
“IRS Notice 2024-77” in the search field
on the Regulations.gov home page to find
this notice and submit comments). Alter-
natively, comments may be submitted by
mail to: Internal Revenue Service, Attn:
CC:PA:LPD:PR (Notice 2024-77), Room
5203, P.O. Box 7604, Ben Franklin Sta-
tion, Washington, D.C. 20044.
The Treasury Department and the IRS
will publish for public availability any
comment submitted electronically or on
paper to its public docket.
VI. PAPERWORK REDUCTION ACT
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 collection of
information mentioned in this IRS Notice
has been reviewed and approved by the
Office of Management and Budget in

Bulletin No. 2024–45 1097 November 4, 2024
accordance with the Paperwork Reduction
Act (44 U.S.C. 3507) under control num-
ber 1545-1673.
The mentioned collection of informa-
tion is a third-party disclosure requirement
listed in Q&A-4, Q&A-5, and Q&A-6.
This information is required to notify
plan participants of the tax implications
of a distribution from a plan that is not
an eligible rollover distribution. Notice
2024-77 does not alter any previously
accounted for information collection
requirements and does not create new col-
lection requirements not already approved
by the Office of Management and Budget.
VII. DRAFTING INFORMATION
The principal authors of this notice are
Christina Cerasale and Amy Moskow-
itz of the Office of the Associate Chief
Counsel (Employee Benefits, Exempt
Organizations, and Employment Taxes).
However, other personnel from the Trea-
sury Department and the IRS participated
in the development of this guidance. For
further information regarding this notice,
contact Ms. Cerasale or Ms. Moskowitz at
(202) 317-4102 (not a toll-free number).
26 CFR 1.6417-2: Rules for Making Elective Pay-
ment Election
(Also: 6417(h), 6081, 7803)
Rev. Proc. 2024-39
SECTION 1. PURPOSE
This revenue procedure grants certain
applicable entities under section 6417(d)
(1)(A) of the Internal Revenue Code
(Code)
1
an automatic six-month extension
of time to file an original or superseding
Form 990-T, Exempt Organization Busi-
ness Income Tax Return (and proxy tax
under section 6033(e) of the Code), with
any other relevant schedules and forms
(such as Form 3800, General Business
Credit, and any relevant source credit
forms), to make an elective payment elec-
tion as provided under section 6417(d)(3)
and §1.6417-2(b) (elective payment elec-
tion). This automatic six-month extension,
described in section 3 of this revenue pro-
cedure, means that certain applicable enti-
ties that did not timely file an extension
on Form 8868, Application for Extension
of Time To File an Exempt Organization
Return, will nevertheless be granted an
automatic six-month extension of time to
file a Form 990-T for purposes of making
an elective payment election. Taxpay-
ers are not required to file a Form 8868
to receive the extension provided in this
guidance.
Section 4 of this revenue procedure
allows applicable entities to make the
elective payment election on a paper-filed
Form 990-T if they follow the procedural
requirements of section 4.03 of this reve-
nue procedure. The IRS strongly encour-
ages electronic filing of returns to ensure
more efficient processing of elective pay-
ment elections.
Section 5 of this revenue procedure
provides procedures allowing for assis-
tance on processing an elective payment
election for applicable entities that are
otherwise eligible for the relief in section
3 but receive a notice from the Internal
Revenue Service (IRS) that their elective
payment election was ineffective because
the return on which it was made was filed
after the due date of the return.
This relief is being granted for certain
applicable entities making elective pay-
ment elections in the first year such elec-
tions are available because the Department
of the Treasury (Treasury Department)
and the IRS are aware that many appli-
cable entities were unfamiliar with the
filing and extension process with respect
to Form 990-T. Further, many applicable
entities have been unable to make an elec-
tive payment election on a timely, elec-
tronically-filed Form 990-T because of
limitations in electronic filing capabilities
of third-party return preparers.
SECTION 2. BACKGROUND
.01 Section 6417, which applies to
taxable years beginning on or after Jan-
uary 1, 2023, allows applicable entities
defined in section 6417(d)(1) to make an
elective payment election under section
6417 with respect to any applicable credit
determined with respect to the applicable
entity for the taxable year. If an applicable
entity makes an elective payment election,
the applicable entity is treated as making
a payment against Federal income taxes
imposed by subtitle A of the Code for the
taxable year with respect to which such
credit was determined that is equal to the
amount of such credit (elective payment
amount). An election under section 6417
must be made at such time and in such
manner as provided by the Secretary of
the Treasury or her delegate (Secretary).
.02 Section 1.6417-2(b)(1)(i) provides
an elective payment election is made
on the annual tax return, as defined in
§1.6417-1(b), in the manner prescribed
by the IRS in guidance, along with any
required completed source credit form(s)
with respect to the applicable credit
property, a completed Form 3800 (or its
successor), and any additional informa-
tion, including supporting calculations,
required in instructions. Section 1.6417-
1(b)(1) defines annual tax return for any
taxpayer normally required to file a tax
return with the IRS on an annual basis as
the required return (including the Form
990-T for organizations subject to tax
imposed by section 511 of the Code or a
proxy tax under section 6033(e) or that
are required to file a Form 990 pursuant to
section 6033(a)).
.03 Section 6417(d)(3)(A)(i) provides
rules regarding the due date for mak
-
ing an elective payment election. Under
§1.6417-2(b)(3)(i), in the case of any
taxpayer for which no Federal income
tax return is required under sections 6011
or no Federal return is required under
6033(a) of the Code (such as a State; the
District of Columbia; an Indian Tribal
government; any U.S. territory; a politi-
cal subdivision of a State, the District of
Columbia, or a U.S. territory, or a sub-
division of an Indian Tribal government;
certain agencies or instrumentalities of a
State, the District of Columbia, an Indian
Tribal government, or a U.S. territory; or a
taxpayer excluded from filing pursuant to
section 6033(a)(3)), an elective payment
election is due by the 15th day of the fifth
month after the end of such applicable
entity’s taxable year. However, subject to
1
Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR Part 1).

November 4, 2024 1098 Bulletin No. 2024–45
the issuance of guidance that specifies the
manner in which such entities can request
an extension of time to file and make the
elective payment election, an automatic
six-month extension from the 15th day of
the fifth month after the end of the taxable
year is deemed to be allowed. In the case
of an applicable entity for which a return
is required under section 6011 or 6033(a),
an elective payment election under sec-
tion 6417(a) cannot be made later than the
due date (including extensions of time)
for the tax return for the taxable year for
which the election is made, and there is no
deemed automatic extension of time from
the original due date.
.04 For example, a State government
with a taxable year ending December
31, 2023, would have an original due
date to file Form 990-T to make an elec-
tive payment election of May 15, 2024,
with an automatic six-month extension
of time to November 15, 2024. A tax-ex-
empt entity with a taxable year ending
December 31, 2023, would have an orig-
inal due date to file Form 990-T to make
an elective payment election of May 15,
2024, but, without the relief granted in
section 3.02 of this revenue procedure,
would receive a six-month extension of
time to file only if the tax-exempt entity
properly filed Form 8868 on or before
May 15, 2024.
.05 Section 6417(h) authorizes the Sec-
retary to issue such regulations or other
guidance as may be necessary to carry
out the purposes of section 6417, includ-
ing guidance to ensure that the amount
of the payment or deemed payment made
under section 6417 is commensurate with
the amount of the credit that would be
otherwise allowable (determined without
regard to section 38(c)).
.06 Section 6081(a) permits the Sec-
retary to grant a reasonable extension of
time, generally no more than six months,
for filing any return, statement, or other
required document.
.07 Section 7803(a)(2)(A) provides
that the Commissioner of Internal Rev-
enue “shall have such duties and powers
as the Secretary may prescribe, including
the power to administer, manage, con-
duct, direct, and supervise the execution
and application of the internal revenue
laws or related statutes and tax conven-
tions to which the United States is a
party.”
.08 As previously described in section
1 of this revenue procedure, the Treasury
Department and the IRS are aware that
many applicable entities that had oth-
erwise intended to timely and properly
make an elective payment election on
an electronically-filed Form 990-T were
nevertheless unable to do so. For exam-
ple, some applicable entities that did not
previously have an obligation to file Form
990-T timely filed the required Form
990, Return of Organization Exempt from
Income Tax, but failed to file a Form 990-
T, which is required to make an elective
payment election. Other applicable enti-
ties have been unable to engage third-
party return preparers to electronically file
the Form 990-T with any other relevant
schedules and forms due to service lim-
itations.
SECTION 3. AUTOMATIC
SIX-MONTH EXTENSION OF
TIME GRANTED TO CERTAIN
APPLICABLE ENTITIES
.01 Scope. An applicable entity
defined in section 6417(d)(1)(A) and
§1.6417-1(c) is eligible for the relief
provided in section 3.02 of this revenue
procedure if the applicable entity (1) had
a filing obligation under sections 6011 or
6033(a); (2) did not otherwise receive an
extension of time to file a return
2
; (3) is
filing a Form 990-T to make an elective
payment election for a taxable year end-
ing on any day between, and including,
December 31, 2023 through November
30, 2024, regardless of whether the appli-
cable entity previously filed a return for
that taxable year; and (4) meets all other
requirements for making an elective pay-
ment election, including pre-filing reg-
istration as required by §1.6417-2(b)(2)
and described in §1.6417-5.
.02 Extension Relief.
(1) An applicable entity described in
section 3.01 of this revenue procedure is
granted an automatic six-month exten-
sion of time to file an original or super-
seding Form 990-T (with any other rel-
evant schedules and source credit forms
necessary to make an elective payment
election) electronically or on paper.
This relief does not require the filing of
a Form 8868 for the Form 990-T. See
section 5.02 of this revenue procedure
if the applicable entity’s elective pay-
ment election made during the exten-
sion period is rejected and the applicable
entity receives a letter (for example, a
CP131, CP131A, CP132 or CP133) from
the IRS. If the applicable entity’s origi-
nal due date has not passed, however, the
applicable entity may also choose to file
Form 8868, which should prevent any
erroneous rejection described in section
5 of this revenue procedure. Form 8868
may be filed on paper or electronically,
but the IRS recommends electronic filing
whenever possible.
(2) This automatic six-month extension
of time to file an original or superseding
Form 990-T means that, for example, an
applicable entity with a taxable year end-
ing on December 31, 2023, which meets
the other requirements of section 3.01,
may timely file a Form 990-T to make
an elective payment election on or before
November 15, 2024. Similarly, an appli-
cable entity with a taxable year ending
on November 30, 2024, which meets the
other requirements of section 3.01, may
timely file a Form 990-T to make an elec-
tive payment election on or before Octo-
ber 15, 2025.
SECTION 4. ELECTIVE PAYMENT
ELECTION MAY BE MADE ON A
PAPER-FILED FORM 990-T
.01 Scope. An applicable entity
defined in section 6417(d)(1)(A) and
§1.6417-1(c) is eligible for the relief
provided in section 4.02 of this revenue
procedure if the applicable entity (1) is
eligible to file a Form 990-T to make an
elective payment election; (2) is filing
a Form 990-T to make an elective pay-
ment election for a taxable year end-
ing on any day between, and including,
2
An applicable entity that already received an extension of time to file a Form 990-T from an original due date will continue to have that 6-month extended due date, and therefore does not
need the relief provided in this section 3. Such applicable entity, however, may be eligible to paper file its Form 990-T as described in section 4 of this revenue procedure.

Bulletin No. 2024–45 1099 November 4, 2024
December 31, 2023 through November
30, 2024; and (3) meets all other require-
ments for making an elective payment
election, including pre-filing registra-
tion as required by §1.6417-2(b)(2) and
described in §1.6417-5.
.02 Paper-Filing Relief. An applicable
entity described in section 4.01 of this
revenue procedure may make an elective
payment election on a paper-filed Form
990-T (along with any other relevant
schedules and source credit forms neces-
sary to make an elective payment elec-
tion) if it complies with the procedures
described in section 4.03 of this revenue
procedure.
.03 Procedure for paper-filing Form
990-T. An applicable entity using the
relief provided by section 4.02 of this rev-
enue procedure must mail the paper Form
990-T (along with any other relevant
schedules and forms) to Department of the
Treasury, Internal Revenue Service Cen-
ter, Ogden, UT 84201-0027 and notate
“Paper Filed under Revenue Procedure
2024-39” at the top of the return.
SECTION 5. PROCEDURE FOR
APPLICABLE ENTITIES THAT HAVE
RECEIVED A NOTICE THAT THEIR
ELECTIVE PAYMENT ELECTION IS
INEFFECTIVE
.01 Scope. When an applicable entity
files an ineffective elective payment elec-
tion because the election is late, the IRS
generally will issue a letter (for example, a
CP131, CP131A, CP132 or CP133) to that
applicable entity. If an applicable entity
described in section 3.01 of this revenue
procedure makes an elective payment
election on a Form 990-T filed from a
date after the original due date through the
extended due date, and receives a letter
that the elective payment election is inef-
fective because the return was late filed,
then the applicable entity should follow
the procedures in section 5.02 to ensure
their elective payment election is properly
processed.
.02 Procedure for responding to a let-
ter stating the elective payment election
is ineffective. An applicable entity that
is described in section 5.01 (meaning an
applicable entity that has filed Form 990-T
for an elective payment election within
the extended filing period but received
a notice indicating the elective payment
election is ineffective due to a late filed
return) can obtain assistance by calling
IRS Tax Exempt and Government Entities
Customer Account Services at 877-829-
5500 (toll-free number) and referencing
that the applicable entity is entitled to an
automatic extension of time to file under
Rev. Proc. 2024-39.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Waheed Olayan of the Office
of Associate Chief Counsel (Passthroughs
& Special Industries). For further infor-
mation regarding this revenue procedure
contact Mr. Olayan at (202) 317-6239 (not
a toll-free number).

November 4, 2024 1100 Bulletin No. 2024–45
26 CFR 601.602:

Tax forms and instructions.
(Also Part I, §§ 1, 23, 24, 32, 36B, 42, 45R, 55, 59, 62, 63, 125, 132(f), 135, 137, 146, 147, 148, 152, 179, 179D, 199A, 213, 220, 221, 448, 461, 512, 513, 642, 831,
877, 877A, 911, 1274A, 2010, 2032A, 2503, 2523, 4161, 4261, 4611, 6033, 6039F, 6323, 6334, 6601, 6651, 6652, 6695, 6698, 6699, 6721, 6722, 7345, 7430, 7702B,
9831; 1.148-5.)
Rev. Proc. 2024-40
TABLE OF CONTENTS
Code Section
1
SECTION 1. PURPOSE
SECTION 2. 2025 ADJUSTED ITEMS
.01 Tax Rate Tables ........................................................................1(j)(2) (A)-(E)
.02 Unearned Income of Minor Children Subject to the “Kiddie Tax” ........................................1(g)
.03 Maximum Capital Gains Rate ....................................................................1(h)
.04 Adoption Credit .................................................................................23
.05 Child Tax Credit .................................................................................24
.06 Earned Income Credit .............................................................................32
.07 Refundable Credit for Coverage Under a Qualified Health Plan ...................................36B(f)(2)(B)
.08 Rehabilitation Expenditures Treated as Separate New Building .........................................42(e)
.09 Low-Income Housing Credit ....................................................................42(h)
.10 Employee Health Insurance Expense of Small Employers ..............................................45R
.11 Exemption Amounts for Alternative Minimum Tax ......................................................55
.12 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax” ..............................59(j)
.13 Certain Expenses of Elementary and Secondary School Teachers ...................................62(a)(2)(D)
.14 Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation Rules for
Payments to Employees Under Accountable Plans ...................................................62(c)
.15 Standard Deduction ..............................................................................63
.16 Cafeteria Plans .................................................................................125
.17 Qualified Transportation Fringe Benefit ............................................................132(f)
.18 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education Expenses .........135
.19 Adoption Assistance Programs .....................................................................137
.20 Private Activity Bonds Volume Cap ..............................................................146(d)
.21 Loan Limits on Agricultural Bonds ............................................................147(c)(2)
.22 General Arbitrage Rebate Rules ..................................................................148(f)
.23 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts or Investments
Purchased for a Yield Restricted Defeasance Escrow ...................................................148
.24 Gross Income Limitation for a Qualifying Relative .............................................152(d)(1)(B)
.25 Election to Expense Certain Depreciable Assets .......................................................179
.26 Energy Efficient Commercial Buildings Deduction ...................................................179D
.27 Qualified Business Income ......................................................................199A
.28 Eligible Long-Term Care Premiums ...........................................................213(d)(10)
.29 Medical Savings Accounts ........................................................................220
.30 Interest on Education Loans .......................................................................221
.31 Limitation on Use of Cash Method of Accounting .....................................................448
.32 Threshold for Excess Business Loss ............................................................461(l)
.33 Treatment of Dues Paid to Agricultural or Horticultural Organizations ..................................512(d)
.34 Insubstantial Benefit Limitations for Contributions Associated With Charitable Fund-Raising Campaigns. . . . . . . 513(h)
.35 Special Rules for Credits and Deductions ............................................................642
.36 Tax on Insurance Companies Other than Life Insurance Companies .......................................831
.37 Expatriation to Avoid Tax .........................................................................877
.38 Tax Responsibilities of Expatriation ...............................................................877A
.39 Foreign Earned Income Exclusion ..................................................................911
1
Unless otherwise specified, all references to “section” or “§” are to provisions of the Internal Revenue Code (Code).

Bulletin No. 2024–45 1101 November 4, 2024
.40 Debt Instruments Arising Out of Sales or Exchanges ................................................1274A
.41 Unified Credit Against Estate Tax .................................................................2010
.42 Valuation of Qualified Real Property in Decedent’s Gross Estate .......................................2032A
.43 Annual Exclusion for Gifts ..................................................................2503; 2523
.44 Tax on Arrow Shafts ............................................................................4161
.45 Passenger Air Transportation Excise Tax ............................................................4261
.46 Tax on Certain Uses of Crude Oil and Petroleum Products ..............................................4611
.47 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying Expenditures .......6033(e)(3)
.48 Notice of Large Gifts Received from Foreign Persons ................................................6039F
.49 Persons Against Whom a Federal Tax Lien Is Not Valid ................................................6323
.50 Property Exempt from Levy ...................................................................6334(a)
.51 Exempt Amount of Wages, Salary, or Other Income ................................................6334(d)
.52 Interest on a Certain Portion of the Estate Tax Payable in Installments ...................................6601(j)
.53 Failure to File Tax Return ........................................................................6651
.54 Failure to File Certain Information Returns, Registration Statements, etc. ..................................6652
.55 Other Assessable Penalties With Respect to the Preparation of Tax Returns for Other Persons ..................6695
.56 Failure to File Partnership Return .................................................................6698
.57 Failure to File S Corporation Return ...............................................................6699
.58 Failure to File Correct Information Returns ..........................................................6721
.59 Failure to Furnish Correct Payee Statements .........................................................6722
.60 Revocation or Denial of Passport in Case of Certain Tax Delinquencies ...................................7345
.61 Attorney Fee Awards ...........................................................................7430
.62 Periodic Payments Received Under Qualified Long-Term Care Insurance Contracts or Under Certain
Life Insurance Contracts .....................................................................7702B(d)
.63 Qualified Small Employer Health Reimbursement Arrangement .........................................9831
SECTION 3. EFFECTIVE DATE
SECTION 4. DRAFTING INFORMATION
SECTION 1. PURPOSE
This revenue procedure sets forth infla-
tion-adjusted items for 2025 for various
Code provisions as in effect on October
22, 2024. The inflation adjusted items for
the Code sections set forth in section 2 of
this revenue procedure are generally deter-
mined by reference to § 1(f). If amend-
ments to the Code are enacted for 2025
after October 22, 2024, taxpayers should
consult additional guidance to determine
whether these adjustments remain appli-
cable for 2025.
SECTION 2. 2025 ADJUSTED ITEMS
.01 Tax Rate Tables. For taxable years
beginning in 2025, the tax rate tables
under § 1 are as follows:
TABLE 1 - Section 1(j)(2)(A) – Married Individuals Filing Joint Returns and Surviving Spouses
If Taxable Income Is:The Tax Is:
Not over $23,850 10% of the taxable income
Over $23,850 but
not over $96,950
$2,385 plus 12% of
the excess over $23,850
Over $96,950 but
not over $206,700
$11,157 plus 22% of
the excess over $96,950
Over $206,700 but
not over $394,600
$35,302 plus 24% of
the excess over $206,700
Over $394,600 but
not over $501,050
$80,398 plus 32% of
the excess over $394,600
Over $501,050
but not over $751,600
$114,462 plus 35% of
the excess over $501,050
Over $751,600 $202,154.50 plus 37% of
the excess over $751,600

November 4, 2024 1102 Bulletin No. 2024–45
TABLE 2 - Section 1(j)(2)(B) – Heads of Households
If Taxable Income Is:The Tax Is:
Not over $17,000 10% of the taxable income
Over $17,000 but
not over $64,850
$1,700 plus 12% of
the excess over $17,000
Over $64,850 but
not over $103,350
$7,442 plus 22% of
the excess over $64,850
Over $103,350 but
not over $197,300
$15,912 plus 24% of
the excess over $103,350
Over $197,300 but
not over $250,500
$38,460 plus 32% of
the excess over $197,300
Over $250,500 but
not over $626,350
$55,484 plus 35% of
the excess over $250,500
Over $626,350 $187,031.50 plus 37% of
the excess over $626,350
TABLE 3 - Section 1(j)(2)(C) – Unmarried Individuals (other than Surviving Spouses and Heads of Households)
If Taxable Income Is:The Tax Is:
Not over $11,92510% of the taxable income
Over $11,925 but
not over $48,475
$1,192.50 plus 12% of
the excess over $11,925
Over $48,475 but
not over $103,350
$5,578.50 plus 22% of
the excess over $48,475
Over $103,350 but
not over $197,300
$17,651 plus 24% of
the excess over $103,350
Over $197,300 but
not over $250,525
$40,199 plus 32% of
the excess over $197,300
Over $250,525 but
not over $626,350
$57,231 plus 35% of
the excess over $250,525
Over $626,350$188,769.75 plus 37% of
the excess over $626,350
TABLE 4 - Section 1(j)(2)(D) – Married Individuals Filing Separate Returns
If Taxable Income Is:The Tax Is:
Not over $11,92510% of the taxable income
Over $11,925 but
not over $48,475
$1,192.50 plus 12% of
the excess over $11,925
Over $48,475 but
not over $103,350
$ 5,578.50 plus 22% of
the excess over $48,475
Over $103,350 but
not over $197,300
$17,651 plus 24% of
the excess over $103,350
Over $197,300 but
not over $250,525
$40,199 plus 32% of
the excess over $197,300
Over $250,525 but
not over $375,800
$57,231 plus 35% of
the excess over $250,525
Over $375,800$101,077.25 plus 37% of
the excess over $375,800

Bulletin No. 2024–45 1103 November 4, 2024
TABLE 5 - Section 1(j)(2)(E) – Estates and Trusts
If Taxable Income Is:The Tax Is:
Not over $3,15010% of the taxable income
Over $3,150 but
not over $11,450
$315 plus 24% of
the excess over $3,150
Over $11,450 but
not over $15,650
$2,307 plus 35% of
the excess over $11,450
Over $15,650$3,777 plus 37% of
the excess over $15,650
.02 Unearned Income of Minor Chil-
dren Subject to the “Kiddie Tax”. For tax-
able years beginning in 2025, the amount
in § 1(g)(4)(A)(ii)(I), which is used to
reduce the net unearned income reported
on the child’s return that is subject to
the “kiddie tax,” is $1,350. This $1,350
amount is the same as the amount provided
in § 63(c)(5)(A), as adjusted for inflation.
The same $1,350 amount is used for pur-
poses of § 1(g)(7) to determine whether a
parent may elect to include a child’s gross
income in the parent’s gross income and
to calculate the “kiddie tax.” For example,
one of the requirements for the parental
election is that a child’s gross income is
more than the amount referenced in § 1(g)
(4)(A)(ii)(I) but less than 10 times that
amount; thus, a child’s gross income for
2025 must be more than $1,350 but less
than $13,500.
.03 Maximum Capital Gains Rate (§
1(h), § 1(j)(5)). For taxable years begin-
ning in 2025, the maximum zero rate
amounts and maximum 15 percent rate
amounts under § 1(j)(5)(B), as adjusted
for inflation, are as follows:
Filing StatusMaximum Zero
Rate Amount
Maximum15%
Rate Amount
Married Individuals Filing Joint Returns and Surviving Spouse$96,700 $600,050
Married Individuals Filing Separate Returns$48,350$300,000
Heads of Household$64,750$566,700
All Other Individuals$48,350$533,400
Estates and Trusts$3,250$15,900
.04 Adoption Credit. For taxable years
beginning in 2025, under § 23(a)(3) the
credit allowed for an adoption of a child
with special needs is $17,280. For taxable
years beginning in 2025, under § 23(b)
(1) the maximum credit allowed for other
adoptions is the amount of qualified adop-
tion expenses up to $17,280. The avail-
able adoption credit begins to phase out
under § 23(b)(2)(A) for taxpayers with
modified adjusted gross income in excess
of $259,190 and is completely phased out
for taxpayers with modified adjusted gross
income of $299,190 or more. See section
2.19 of this revenue procedure for the
adjusted items relating to adoption assis-
tance programs.
.05 Child Tax Credit. For taxable years
beginning in 2025, the amount used in
§ 24(d)(1)(A) to determine the amount of
credit under § 24 that may be refundable
is $1,700.
.06 Earned Income Credit.
(1) In general. For taxable years begin-
ning in 2025, the following amounts are
used to determine the earned income
credit under § 32(b). The “earned income
amount” is the amount of earned income
at or above which the maximum amount
of the earned income credit is allowed.
The “threshold phaseout amount” is the
amount of adjusted gross income (or, if
greater, earned income) above which the
maximum amount of the credit begins
to phase out. The “completed phaseout
amount” is the amount of adjusted gross
income (or, if greater, earned income) at
or above which no credit is allowed. The
threshold phaseout amounts and the com-
pleted phaseout amounts shown in the
table below for married taxpayers filing a
joint return include the increase provided
in § 32(b)(2)(B), as adjusted for inflation
for taxable years beginning in 2025. The
threshold phaseout amounts and the com-
pleted phaseout amounts shown in the
table below for taxpayers with all other
filing statuses also apply to married tax-
payers who are not filing a joint return
and satisfy the special rules for separated
spouses in § 32(d).

November 4, 2024 1104 Bulletin No. 2024–45
Number of Qualifying Children
ItemOneTwoThree or MoreNone
Earned Income Amount$12,730 $17,880 $17,880$8,490
Maximum Amount of Credit$4,328$7,152$8,046$649
Threshold Phaseout Amount (Married Filing Jointly)$30,470$30,470$30,470$17,730
Completed Phaseout Amount (Married Filing Jointly)$57,554$64,430$68,675$26,214
Threshold Phaseout Amount (All other filing statuses)$23,350 $23,350$23,350$10,620
Completed Phaseout Amount (All other filing statuses)$50,434$57,310 $61,555$19,104
The instructions for the Form 1040
series provide tables showing the amount
of the earned income credit for each type
of taxpayer.
(2) Excessive Investment Income.
For taxable years beginning in 2025, the
earned income tax credit is not allowed
under § 32(i) if the aggregate amount
of certain investment income exceeds
$11,950.
.07 Refundable Credit for Coverage
Under a Qualified Health Plan. For tax-
able years beginning in 2025, the limita-
tion on tax imposed under § 36B(f)(2)
(B) for excess advance credit payments
is determined using the following table:
If the household income (expressed as a
percent of poverty line) is:
The limitation amount for unmarried individuals
(other than surviving spouses and heads of household) is:
The limitation amount
for all other taxpayers is:
Less than 200%$375$750
At least 200% but less than 300%$975$1,950
At least 300% but less than 400%$1,625$3,250
.08 Rehabilitation Expenditures
Treated as Separate New Building. For
calendar year 2025, the per low-income
unit qualified basis amount under § 42(e)
(3)(A)(ii)(II) is $8,500.
.09 Low-Income Housing Credit. For
calendar year 2025, the amount used under
§ 42(h)(3)(C)(ii) to calculate the State hous-
ing credit ceiling for the low-income housing
credit is the greater of (1) $3.00 multiplied
by the State population, or (2) $3,455,000.
.10 Employee Health Insurance
Expense of Small Employers. For taxable
years beginning in 2025, the dollar amount
in effect under § 45R(d)(3)(B) is $33,300.
This amount is used under § 45R(c) for
limiting the small employer health insur-
ance credit and under § 45R(d)(1)(B)
for determining who is an eligible small
employer for purposes of the credit.
.11 Exemption Amounts for Alternative
Minimum Tax. For taxable years begin-
ning in 2025, the exemption amounts
under § 55(d)(1) are:
Joint Returns or Surviving Spouses$137,000
Unmarried Individuals (other than Surviving Spouses)$88,100
Married Individuals Filing Separate Returns$68,500
Estates and Trusts$30,700
For taxable years beginning in 2025,
under § 55(b)(1), the excess taxable
income above which the 28 percent tax
rate applies is:
Married Individuals Filing Separate Returns$119,550
All Other Taxpayers$239,100
For taxable years beginning in 2025,
the amounts used under § 55(d)(2) to
determine the phaseout of the exemption
amounts are:
Threshold Phaseout AmountComplete Phaseout Amount
Joint Returns or Surviving Spouses$1,252,700 $1,800,700
Unmarried Individuals (other than Surviving Spouses)$626,350 $978,750
Married Individuals Filing Separate Returns$626,350$900,350
Estates and Trusts$102,500 $225,300

Bulletin No. 2024–45 1105 November 4, 2024
.12 Alternative Minimum Tax Exemption
for a Child Subject to the “Kiddie Tax.” For
taxable years beginning in 2025, for a child
to whom the § 1(g) “kiddie tax” applies,
the exemption amount under §§ 55(d) and
59(j) for purposes of the alternative mini-
mum tax under § 55 may not exceed the
sum of (1) the child’s earned income for the
taxable year, plus (2) $9,550.
.13 Certain Expenses of Elementary
and Secondary School Teachers. For
taxable years beginning in 2025, under
§ 62(a)(2)(D) the amount of the deduc-
tion allowed under § 162 that consists of
expenses paid or incurred by an eligible
educator in connection with books, sup-
plies (other than nonathletic supplies for
courses of instruction in health or phys-
ical education), computer equipment
(including related software and services)
and other equipment, and supplementary
materials used by the eligible educator in
the classroom is $300.
.14 Transportation Mainline Pipeline
Construction Industry Optional Expense
Substantiation Rules for Payments to
Employees Under Accountable Plans. For
calendar year 2025, an eligible employer
may pay certain welders and heavy equip-
ment mechanics an amount up to $22
per hour for rig-related expenses that are
deemed substantiated under an account-
able plan if paid in accordance with Rev.
Proc. 2002-41, 2002-1 C.B. 1098. If the
employer provides fuel or otherwise reim-
burses fuel expenses, an amount up to $14
per hour is deemed substantiated if paid
under Rev. Proc. 2002-41.
.15 Standard Deduction.
(1) In general. For taxable years begin-
ning in 2025, the standard deduction
amounts under § 63(c)(2) are as follows:
Filing StatusStandard Deduction
Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(j)(2)(A))$30,000
Heads of Households (§ 1(j)(2)(B))$22,500
Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(j)(2)(C))$15,000
Married Individuals Filing Separate Returns (§ 1(j)(2)(D))$15,000
(2) Dependent. For taxable years
beginning in 2025, the standard deduction
amount under § 63(c)(5) for an individ-
ual who may be claimed as a dependent
by another taxpayer cannot exceed the
greater of (1) $1,350, or (2) the sum of
$450 and the individual’s earned income.
(3) Aged or blind. For taxable years
beginning in 2025, the additional standard
deduction amount under § 63(f) for the
aged or the blind is $1,600. The additional
standard deduction amount is increased to
$2,000 if the individual is also unmarried
and not a surviving spouse.
.16 Cafeteria Plans. For taxable years
beginning in 2025, the dollar limitation
under § 125(i) on voluntary employee sal-
ary reductions for contributions to health
flexible spending arrangements is $3,300.
If the cafeteria plan permits the carryover
of unused amounts, the maximum carry-
over amount is $660.
.17 Qualified Transportation Fringe
Benefit. For taxable years beginning in
2025, the monthly limitation under §
132(f)(2)(A) regarding the aggregate
fringe benefit exclusion amount for trans-
portation in a commuter highway vehicle
and any transit pass is $325. The monthly
limitation under § 132(f)(2)(B) regarding
the fringe benefit exclusion amount for
qualified parking is $325.
.18 Income from United States Savings
Bonds for Taxpayers Who Pay Qualified
Higher Education Expenses. For tax-
able years beginning in 2025, the exclu-
sion under § 135, regarding income from
United States savings bonds for taxpay-
ers who pay qualified higher education
expenses, begins to phase out for modified
adjusted gross income above $149,250
for joint returns and $99,500 for all other
returns. The exclusion is completely
phased out for modified adjusted gross
income of $179,250 or more for joint
returns and $114,500 or more for all other
returns.
.19 Adoption Assistance Programs.
For taxable years beginning in 2025,
under § 137(a)(2), the amount that can
be excluded from an employee’s gross
income for the adoption of a child with
special needs is $17,280. For taxable years
beginning in 2025, under § 137(b)(1) the
maximum amount that can be excluded
from an employee’s gross income for the
amounts paid or expenses incurred by an
employer for qualified adoption expenses
furnished pursuant to an adoption assis-
tance program for adoptions by the
employee is $17,280. The amount exclud-
able from an employee’s gross income
begins to phase out under § 137(b)(2)
(A) for taxpayers with modified adjusted
gross income in excess of $259,190 and
is completely phased out for taxpayers
with modified adjusted gross income of
$299,190 or more. (See section 2.04 of
this revenue procedure for the adjusted
items relating to the adoption credit.)
.20 Private Activity Bonds Volume
Cap. For calendar year 2025, the amounts
used under § 146(d) to calculate the State
ceiling for the volume cap for private
activity bonds is the greater of (1) $130
multiplied by the State population, or (2)
$388,780,000.
.21 Loan Limits on Agricultural
Bonds. For calendar year 2025, the loan
limit amount on agricultural bonds under
§ 147(c)(2)(A) for first-time farmers is
$667,500.
.22 General Arbitrage Rebate Rules.
For bond years ending in 2025, the amount
of the computation credit determined
under § 1.148-3(d)(4) of the Income Tax
Regulations is $2,120.
.23 Safe Harbor Rules for Broker
Commissions on Guaranteed Investment
Contracts or Investments Purchased for a
Yield Restricted Defeasance Escrow. For
calendar year 2025, under § 1.148-5(e)(2)
(iii)(B)(1) of the Income Tax Regulations,
a broker’s commission or similar fee for
the acquisition of a guaranteed investment
contract or investments purchased for a
yield restricted defeasance escrow is rea-
sonable if (1) the amount of the fee that
the issuer treats as a qualified adminis-
trative cost does not exceed the lesser of
(A) $50,000, and (B) 0.2 percent of the
computational base (as defined in § 1.148-

November 4, 2024 1106 Bulletin No. 2024–45
5(e)(2)(iii)(B)(2)) or, if more, $5,000; and
(2) for any issue, the issuer does not treat
more than $141,000 in brokers’ commis-
sions or similar fees as qualified admin-
istrative costs for all guaranteed invest-
ment contracts and investments for yield
restricted defeasance escrows purchased
with gross proceeds of the issue.
.24 Gross Income Limitation for a
Qualifying Relative. For taxable years
beginning in 2025, the exemption amount
referenced in § 152(d)(1)(B) is $5,200.
.25 Election to Expense Certain Depre-
ciable Assets. For taxable years beginning
in 2025, under § 179(b)(1), the aggregate
cost of any § 179 property that a taxpayer
elects to treat as an expense cannot exceed
$1,250,000 and under § 179(b)(5)(A), the
cost of any sport utility vehicle that may
be taken into account under § 179 can-
not exceed $31,300. Under § 179(b)(2),
the $1,250,000 limitation under § 179(b)
(1) is reduced (but not below zero) by the
amount by which the cost of § 179 prop-
erty placed in service during the 2025 tax-
able year exceeds $3,130,000.
.26 Energy Efficient Commercial
Buildings Deduction. For taxable years
beginning in 2025, the applicable dol-
lar value used to determine the maxi-
mum allowance of the deduction under
§ 179D(b)(2) is $0.58 increased (but
not above $1.16) by $0.02 for each per-
centage point by which the total annual
energy and power costs for the buildings
are certified to be reduced by a percent-
age greater than 25 percent. For taxable
years beginning in 2025, the applica-
ble dollar value used to determine the
increased deduction amount for certain
property under § 179D(b)(3) is $2.90
increased (but not above $5.81) by $0.12
for each percentage point by which the
total annual energy and power costs for
the building are certified to be reduced by
a percentage greater than 25 percent.
.27 Qualified Business Income. For tax-
able years beginning in 2025, the threshold
amounts under § 199A(e)(2) and phase-in
range amounts under § 199A(b)(3)(B) and
§ 199A(d)(3)(A) are:
Filing StatusThreshold amountPhase-in range amount
Married Individuals Filing Joint Returns$394,600 $494,600
Married Individuals Filing Separate Returns$197,300 $247,300
All Other Returns$197,300 $247,300
.28 Eligible Long-Term Care Premi-
ums. For taxable years beginning in 2025,
the limitations under § 213(d)(10), regard-
ing eligible long-term care premiums
includible in the term “medical care”, as
adjusted for inflation, are as follows:
Attained Age Before the Close of the Taxable YearLimitation on Premiums
40 or less$480
More than 40 but not more than 50$900
More than 50 but not more than 60$1,800
More than 60 but not more than 70$4,810
More than 70$6,020
.29 Medical Savings Accounts.
(1) Self-only coverage. For taxable
years beginning in 2025, the term “high
deductible health plan” as defined in
§ 220(c)(2)(A) means, for self-only cov-
erage, a health plan that has an annual
deductible that is not less than $2,850
and not more than $4,300, and under
which the annual out-of-pocket expenses
required to be paid (other than for premi-
ums) for covered benefits do not exceed
$5,700.
(2) Family coverage. For taxable
years beginning in 2025, the term “high
deductible health plan” means, for family
coverage, a health plan that has an annual
deductible that is not less than $5,700
and not more than $8,550, and under
which the annual out-of-pocket expenses
required to be paid (other than for premi-
ums) for covered benefits do not exceed
$10,500.
.30 Interest on Education Loans. For
taxable years beginning in 2025, the
$2,500 maximum deduction for interest
paid on qualified education loans under
§ 221 begins to phase out under § 221(b)
(2)(B), as adjusted for inflation, for taxpay-
ers with modified adjusted gross income
in excess of $85,000 ($170,000 for joint
returns), and is completely phased out for
taxpayers with modified adjusted gross
income of $100,000 or more ($200,000 or
more for joint returns).
.31 Limitation on Use of Cash
Method of Accounting. For taxable
years beginning in 2025, a corporation
or partnership meets the gross receipts
test of § 448(c) for any taxable year if
the average annual gross receipts of
such entity for the 3-taxable-year period
ending with the taxable year which pre-
cedes such taxable year does not exceed
$31,000,000.
.32 Threshold for Excess Business
Loss. For taxable years beginning in 2025,
in determining a taxpayer’s excess busi-
ness loss, the amount under § 461(l)(3)
(A)(ii)(II) is $313,000 ($626,000 for joint
returns).
.33 Treatment of Dues Paid to Agri-
cultural or Horticultural Organizations.
For taxable years beginning in 2025, the
limitation under § 512(d)(1), regarding
the exemption of annual dues required to
be paid by a member to an agricultural or
horticultural organization, is $207.

Bulletin No. 2024–45 1107 November 4, 2024
.34 Insubstantial Benefit Limitations
for Contributions Associated with Chari-
table Fund-Raising Campaigns.
(1) Low cost article. For taxable years
beginning in 2025, for purposes of defin-
ing the term “unrelated trade or business”
for certain exempt organizations under
§ 513(h)(2), “low cost articles” are articles
costing $13.60 or less.
(2) Other insubstantial benefits. For
taxable years beginning in 2025, under
§ 170, the $5, $25, and $50 guidelines in
section 3 of Rev. Proc. 90-12, 1990-1 C.B.
471 (as amplified by Rev. Proc. 92-49,
1992-1 C.B. 987, and modified by Rev.
Proc. 92-102, 1992-2 C.B. 579), for the
value of insubstantial benefits that may be
received by a donor in return for a con-
tribution, without causing the contribution
to fail to be fully deductible, are $13.60,
$68.00 and $136.00, respectively.
.35 Special Rules for Credits and
Deductions. For taxable years beginning
in 2025, the amount of the deduction
under § 642(b)(2)(C)(i) is $5,100.
.36 Tax on Insurance Companies Other
than Life Insurance Companies. For
taxable years beginning in 2025, under
§ 831(b)(2)(A)(i) the amount of the limit
on net written premiums or direct writ-
ten premiums (whichever is greater) is
$2,850,000 to elect the alternative tax for
certain small companies under § 831(b)
(1) to be taxed only on taxable investment
income.
.37 Expatriation to Avoid Tax. For
calendar year 2025, under § 877A(g)(1)
(A), unless an exception under § 877A(g)
(1)(B) applies, an individual is a covered
expatriate if the individual’s “average
annual net income tax” under § 877(a)
(2)(A) for the five taxable years ending
before the expatriation date is more than
$206,000.
.38 Tax Responsibilities of Expatria-
tion. For taxable years beginning in 2025,
the amount that would be includible in
the gross income of a covered expatriate
by reason of § 877A(a)(1) is reduced (but
not below zero) by $890,000 pursuant to §
877A(a)(3).
.39 Foreign Earned Income Exclusion.
For taxable years beginning in 2025, the
foreign earned income exclusion amount
under § 911(b)(2)(D)(i) is $130,000.
.40 Debt Instruments Arising Out of
Sales or Exchanges. For calendar year
2025, a qualified debt instrument under
§ 1274A(b) has stated principal that does
not exceed $7,296,700, and a cash method
debt instrument under § 1274A(c)(2)
has stated principal that does not exceed
$5,211,900.
.41 Unified Credit Against Estate Tax.
For an estate of any decedent dying in
calendar year 2025, the basic exclusion
amount is $13,990,000 for determining
the amount of the unified credit against
estate tax under § 2010.
.42 Valuation of Qualified Real Prop-
erty in Decedent’s Gross Estate. For an
estate of a decedent dying in calendar
year 2025, if the executor elects to use
the special use valuation method under
§ 2032A for qualified real property, the
aggregate decrease in the value of quali-
fied real property resulting from electing
to use § 2032A for purposes of the estate
tax cannot exceed $1,420,000.
.43 Annual Exclusion for Gifts.
(1) For calendar year 2025, the first
$19,000 of gifts to any person (other than
gifts of future interests in property) are
not included in the total amount of taxable
gifts under § 2503 made during that year.
(2) For calendar year 2025, the first
$190,000 of gifts to a spouse who is not
a citizen of the United States (other than
gifts of future interests in property) are
not included in the total amount of taxable
gifts under §§ 2503 and 2523(i)(2) made
during that year.
.44 Tax on Arrow Shafts. For calen-
dar year 2025, the tax imposed under
§ 4161(b)(2)(A) on the first sale by the
manufacturer, producer, or importer of
any shaft of a type used in the manufac-
ture of certain arrows is $0.63 per shaft.
.45 Passenger Air Transportation
Excise Tax. For calendar year 2025, the
tax under § 4261(b)(1) on the amount paid
for each domestic segment of taxable air
transportation is $5.20. For calendar year
2025, the tax under § 4261(c)(1) on any
amount paid (whether within or without
the United States) for any international air
transportation, if the transportation begins
or ends in the United States, generally is
$22.90. Under § 4261(c)(3), however, a
lower rate of tax applies under § 4261(c)
(1) to a domestic segment beginning or
ending in Alaska or Hawaii, and the tax
applies only to departures. For calendar
year 2025, the rate of tax is $11.40.
.46 Tax on Certain Uses of Crude Oil
and Petroleum Products. For calendar year
2025, the tax imposed under § 4611(a) on
crude oil received at a United States refin-
ery and petroleum products entered into
the United States for consumption, use, or
warehousing is $0.26 cents per barrel.
.47 Reporting Exception for Certain
Exempt Organizations with Nondeduct-
ible Lobbying Expenditures. For taxable
years beginning in 2025, the annual per
person, family, or entity dues limitation to
qualify for the reporting exception under
§ 6033(e)(3) (and section 5.05 of Rev.
Proc. 98-19, 1998-1 C.B. 547), regard-
ing certain exempt organizations with
nondeductible lobbying expenditures, is
$143.00 or less.
.48 Notice of Large Gifts Received
from Foreign Persons. For taxable years
beginning in 2025, § 6039F authorizes the
Secretary of the Treasury or her delegate
to require recipients of gifts from certain
foreign persons to report these gifts if the
aggregate value of gifts received in the
taxable year exceeds $20,116.
.49 Persons Against Whom a Fed-
eral Tax Lien Is Not Valid. For calendar
year 2025, a federal tax lien is not valid
against (1) certain purchasers under
§ 6323(b)(4) who purchased personal
property in a casual sale for less than
$1,960, or (2) a mechanic’s lienor under
§ 6323(b)(7) who repaired or improved
certain residential property if the con-
tract price with the owner is not more
than $9,790.
.50 Property Exempt from Levy. For
calendar year 2025, the value of property
exempt from levy under § 6334(a)(2) (fuel,
provisions, furniture, and other household
personal effects, as well as arms for per-
sonal use, livestock, and poultry) cannot
exceed $11,710. The value of property
exempt from levy under § 6334(a)(3)
(books and tools necessary for the trade,
business, or profession of the taxpayer)
cannot exceed $5,860.
.51 Exempt Amount of Wages, Salary,
or Other Income. For taxable years begin-
ning in 2025, the dollar amount used to
calculate the amount determined under
§ 6334(d)(4)(B) is $5,100.
.52 Interest on a Certain Portion of the
Estate Tax Payable in Installments. For an
estate of a decedent dying in calendar year
2025, the dollar amount used to determine

November 4, 2024 1108 Bulletin No. 2024–45
the “2-percent portion” (for purposes of
calculating interest under § 6601(j)) of the
estate tax extended as provided in § 6166
is $1,900,000.
.53 Failure to File Tax Return. In the
case of any return required to be filed
in 2026, the amount of the addition to
tax under § 6651(a) for failure to file an
income tax return within 60 days of the
due date of such return (determined with
regard to any extensions of time for filing)
will not be less than the lesser of $525 or
100 percent of the amount required to be
shown as tax on such return.
.54 Failure to File Certain Information
Returns, Registration Statements, etc. For
returns required to be filed in 2026, the
penalty amounts under § 6652(c) are:
(1) for failure to file a return required
under § 6033(a)(1) (relating to returns
by exempt organization) or § 6012(a)(6)
(relating to returns by political organiza-
tions):
ScenarioDaily Penalty Maximum Penalty
Organization (§ 6652(c)(1)(A))$25 Lesser of $13,000 or 5% of gross
receipts of the organization for
the year.
Organization with gross receipts exceeding $1,309,500 (§ 6652(c)(1)(A))$130 $65,000
Managers (§ 6652(c)(1)(B))$10 $6,500
Public inspection of annual returns and reports (§ 6652(c)(1)(C))$25 $13,000
Public inspection of applications for exemption and notice of status
(§ 6652(c)(1)(D))
$25 No Limit
(2) for failure to file a return required
under § 6034 (relating to returns by cer-
tain trust) or § 6043(b) (relating to termi-
nations, etc., of exempt organizations):
ScenarioDaily Penalty Maximum Penalty
Organization or trust (§ 6652(c)(2)(A))$10 $6,500
Managers (§ 6652(c)(2)(B))$10 $6,500
Split-Interest Trust (§ 6652(c)(2)(C)(ii))$25 $13,000
Any trust with gross income exceeding $327,000 (§ 6652(c)(2)(C)(ii))$130 $65,000
(3) for failure to file a disclosure required under § 6033(a)(2):
ScenarioDaily Penalty Maximum Penalty
Tax–exempt entity (§ 6652(c)(3)(A))$130 $65,000
Failure to comply with written demand (§ 6652(c)(3)(B)(ii))$130 $13,000
.55 Other Assessable Penalties With
Respect to the Preparation of Tax Returns
for Other Persons. In the case of any fail-
ure relating to a return or claim for refund
filed in 2026, the penalty amounts under
§ 6695 are:
ScenarioPer Return or Claim for
Refund
Maximum Penalty
Failure to furnish copy to taxpayer (§ 6695(a))$65 $32,500
Failure to sign return (§ 6695(b))$65 $32,500
Failure to furnish identifying number (§ 6695(c))$65 $32,500
Failure to retain copy or list (§ 6695(d))$65 $32,500
Failure to file correct information returns (§ 6695(e))$65 per return and item in
return
$32,500
Negotiation of check (§ 6695(f))$650 per checkNo limit
Failure to be diligent in determining eligibility for head of household
filing status, child tax credit, American Opportunity tax credit, and
earned income credit (§ 6695(g))
$650 per failureNo limit

Bulletin No. 2024–45 1109 November 4, 2024
ScenarioPenalty Per Return Calendar Year Maximum
General Rule (§ 6721(a)(1))$340$4,098,500
Corrected on or before 30 days after required filing date (§ 6721(b)(1))$60$683,000
Corrected after 30
th
day but on or before August 1, 2026 (§ 6721(b)(2))$130$2,049,000
.56 Failure to File Partnership Return.
In the case of any return required to be
filed in 2026, the dollar amount used to
determine the amount of the penalty under
§ 6698(b)(1) is $255.
.57 Failure to File S Corporation
Return. In the case of any return required
to be filed in 2026, the dollar amount used
to determine the amount of the penalty
under § 6699(b)(1) is $255.
.58 Failure to File Correct Information
Returns. In the case of any failure relating
to a return required to be filed in 2026, the
penalty amounts under § 6721 are:
(1) for persons with average annual
gross receipts for the most recent three
taxable years of more than $5,000,000,
for failure to file correct information
returns:
(2) for persons with average annual
gross receipts for the most recent three
taxable years of $5,000,000 or less, for
failure to file correct information returns:
ScenarioPenalty Per Return Calendar Year Maximum
General Rule (§ 6721(d)(1)(A))$340$1,366,000
Corrected on or before 30 days after required filing date (§ 6721(d)(1)(B))$60$239,000
Corrected after 30
th
day but on or before August 1, 2026 (§ 6721(d)(1)(C))$130$683,000
(3) for failure to file correct informa-
tion returns due to intentional disregard
of the filing requirement (or the correct
information reporting requirement):
ScenarioPenalty Per Return Calendar Year
Maximum
Return other than a return required to be filed under
§ 6045(a), 6041A(b), 6050H, 6050I, 6050J, 6050K,
or 6050L (§ 6721(e)(2)(A))
Greater of (i) $680, or (ii) 10% of aggregate amount of
items required to be reported correctly
No limit
Return required to be filed under § 6045(a), 6050K,
or 6050L (§ 6721(e)(2)(B))
Greater of (i) $680, or (ii) 5% of aggregate amount of
items required to be reported correctly
No limit
Return required to be filed under § 6050I(a)
(§ 6721(e)(2)(C))
Greater of (i) $34,150, or (ii) amount of cash received
up to $136,500
No limit
Return required to be filed under § 6050V (§ 6721(e)
(2)(D))
Greater of (i) $680, or (ii) 10% of the value of the ben-
efit of any contract with respect to which information is
required to be included on the return
No limit
.59 Failure to Furnish Correct Payee
Statements. In the case of any failure
relating to a statement required to be fur-
nished in 2026, the penalty amounts under
§ 6722 are:
(1) for persons with average annual
gross receipts for the most recent three
taxable years of more than $5,000,000,
for failure to furnish correct payee state-
ments:
ScenarioPenalty Per StatementCalendar Year Maximum
General Rule (§ 6722(a)(1))$340$4,098,500
Corrected on or before 30 days after required furnishing date (§ 6722(b)(1))$60$683,000
Corrected after 30th day but on or before August 1, 2026 (§ 6722(b)(2))$130$2,049,000

November 4, 2024 1110 Bulletin No. 2024–45
(2) for persons with average annual
gross receipts for the most recent 3 taxable
years of $5,000,000 or less, for failure to
furnish correct payee statements:
ScenarioPenalty Per StatementCalendar Year Maximum
General Rule (§ 6722(d)(1)(A))$340 $1,366,000
Corrected on or before 30 days after required furnishing date (§ 6722(d)(1)(B))$60 $239,000
Corrected after 30
th
day but on or before August 1, 2026 (§ 6722(d)(1)(C))$130 $683,000
(3) for failure to furnish correct payee
statements due to intentional disregard of
the requirement to furnish a payee state-
ment (or the correct information reporting
requirement):
ScenarioPenalty Per StatementCalendar Year
Maximum
Payee statement other than a statement required under
§ 6045(b), 6041A(e) (in respect of a return required under
§ 6041A(b)), 6050H(d), 6050J(e), 6050K(b), or 6050L(c)
(§ 6722(e)(2)(A))
Greater of (i) $680, or (ii) 10% of aggregate
amount of items required to be reported
correctly
No limit
Payee statement required under § 6045(b), 6050K(b), or
6050L(c) (§ 6722(e)(2)(B))
Greater of (i) $680, or (ii) 5% of aggregate
amount of items required to be reported
correctly
No limit
.60 Revocation or Denial of Passport
in Case of Certain Tax Delinquencies.
For calendar year 2025, the amount of a
serious delinquent tax debt under § 7345
is $64,000.
.61 Attorney Fee Awards. For fees
incurred in calendar year 2025, the attor-
ney fee award limitation under § 7430(c)
(1)(B)(iii) is $250 per hour.
.62 Periodic Payments Received Under
Qualified Long-Term Care Insurance
Contracts or Under Certain Life Insur-
ance Contracts. For calendar year 2025,
the stated dollar amount of the per diem
limitation under § 7702B(d)(4), regarding
periodic payments received under a qual-
ified long-term care insurance contract or
periodic payments received under a life
insurance contract that are treated as paid
by reason of the death of a chronically ill
individual, is $420.
.63 Qualified Small Employer Health
Reimbursement Arrangement. For tax-
able years beginning in 2025, to qualify
as a qualified small employer health reim-
bursement arrangement under § 9831(d),
the arrangement must provide that the
total amount of payments and reimburse-
ments for any year cannot exceed $6,350
($12,800 for family coverage).
SECTION 3. EFFECTIVE DATE
.01 General Rule. Except as provided
in section 3.02 of this revenue procedure,
this revenue procedure applies to taxable
years beginning in 2025.
.02 Calendar Year Rule. This reve-
nue procedure applies to transactions or
events occurring in calendar year 2025 for
purposes of sections 2.08 (rehabilitation
expenditures treated as separate new build-
ing), 2.09 (low-income housing credit),
2.14 (transportation mainline pipeline con-
struction industry optional expense sub-
stantiation rules for payments to employ-
ees under accountable plans), 2.20 (private
activity bonds volume cap), 2.21 (loan
limits on agricultural bonds), 2.22 (general
arbitrage rebate rules), 2.23 (safe harbor
rules for broker commissions on guaran-
teed investment contracts or investments
purchased for a yield restricted defeasance
escrow), 2.37 (expatriation to avoid taxes),
2.40 (debt instruments arising out of sales
or exchanges), 2.41 (unified credit against
estate tax), 2.42 (valuation of qualified real
property in decedent’s gross estate), 2.43
(annual exclusion for gifts), 2.44 (tax on
arrow shafts), 2.45 (passenger air transpor-
tation excise tax), 2.46 (tax on certain uses
of crude oil and petroleum products), 2.49
(persons against whom a federal tax lien
is not valid), 2.50 (property exempt from
levy), 2.52 (interest on a certain portion of
the estate tax payable in installments), 2.60
(revocation or denial of passport in case of
certain tax delinquencies), 2.61 (attorney
fee awards), and 2.62 (periodic payments
received under qualified long-term care
insurance contracts or under certain life
insurance contracts) of this revenue proce-
dure.
SECTION 4. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Kyle Walker of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue procedure, contact
Mr. Walker at (202) 317-4718 (not a toll-
free number).

Bulletin No. 2024–45 i November 4, 2024
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.
—Court Decision.
CY—County.
D—Decedent.
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—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

November 4, 2024 ii Bulletin No. 2024–45
Numerical Finding List
1
Bulletin 2024–45
Announcements:
2024-26, 2024-27 I.R.B. 14
2024-27, 2024-27 I.R.B. 14
2024-28, 2024-28 I.R.B. 39
2024-29, 2024-29 I.R.B. 71
2024-31, 2024-34 I.R.B. 533
2024-32, 2024-35 I.R.B. 535
2024-30, 2024-36 I.R.B. 581
2024-39, 2024-39 I.R.B. 639
2024-34, 2024-41 I.R.B. 758
2024-35, 2024-43 I.R.B. 1013
2024-36, 2024-44 I.R.B. 1073
Notices:
2024-47, 2024-27 I.R.B. 1
2024-52, 2024-27 I.R.B. 2
2024-53, 2024-27 I.R.B. 4
2024-54, 2024-28 I.R.B. 24
2024-55, 2024-28 I.R.B. 31
2024-56, 2024-29 I.R.B. 64
2024-57, 2024-29 I.R.B. 67
2024-58, 2024-30 I.R.B. 120
2024-59, 2024-32 I.R.B. 348
2024-60, 2024-34 I.R.B. 515
2024-61, 2024-34 I.R.B. 520
2024-62, 2024-36 I.R.B. 570
2024-63, 2024-36 I.R.B. 573
2024-64, 2024-39 I.R.B. 632
2024-65, 2024-39 I.R.B. 633
2024-66, 2024-40 I.R.B. 682
2024-67, 2024-41 I.R.B. 726
2024-68, 2024-41 I.R.B. 729
2024-69, 2024-41 I.R.B. 733
2024-70, 2024-43 I.R.B. 1001
2024-72, 2024-43 I.R.B. 1005
2024-73, 2024-43 I.R.B. 1007
2024-71, 2024-44 I.R.B. 1026
2024-75, 2024-44 I.R.B. 1026
2024-74, 2024-45 I.R.B. 1089
2024-76, 2024-45 I.R.B. 1089
2024-77, 2024-45 I.R.B. 1093
Proposed Regulations:
REG-124593-23, 2024-28 I.R.B. 40
REG-109032-23, 2024-31 I.R.B. 332
REG-120137-19, 2024-31 I.R.B. 336
REG-119283-23, 2024-32 I.R.B. 351
REG-102161-23 2024-33 I.R.B. 502
REG-103529-23, 2024-33 I.R.B. 512
REG-105128-23, 2024-35 I.R.B. 536
REG-108920-24, 2024-38 I.R.B. 607
REG-111629-23, 2024-39 I.R.B. 640
Proposed Regulations:—Continued
REG-106851-21, 2024-40 I.R.B. 684
REG-116787-23, 2024-40 I.R.B. 709
REG-119683-22, 2024-40 I.R.B. 716
REG-118269-23, 2024-41 I.R.B. 761
REG-112129-23, 2024-42 I.R.B. 787
REG-113628-21, 2024-44 I.R.B. 1074
Revenue Procedures:
2024-26, 2024-27 I.R.B. 7
2024-29, 2024-30 I.R.B. 121
2024-30, 2024-30 I.R.B. 183
2024-27, 2024-31 I.R.B. 300
2024-28, 2024-31 I.R.B. 326
2024-32, 2024-34 I.R.B. 523
2024-34, 2024-38 I.R.B. 604
2024-35, 2024-39 I.R.B. 638
2024-36, 2024-41 I.R.B. 737
2024-37, 2024-41 I.R.B. 755
2024-38, 2024-43 I.R.B. 1010
2024-33, 2024-44 I.R.B. 1030
2024-39, 2024-45 I.R.B. 1097
2024-40, 2024-45 I.R.B. 1100
Revenue Rulings:
2024-13, 2024-28 I.R.B. 18
2024-14, 2024-28 I.R.B. 18
2024-15, 2024-32 I.R.B. 340
2024-16, 2024-35 I.R.B. 534
2024-17, 2024-36 I.R.B. 568
2024-18, 2024-37 I.R.B. 584
2024-20, 2024-40 I.R.B. 646
2024-21, 2024-41 I.R.B. 724
2024-22, 2024-43 I.R.B. 980
2024-23, 2024-43 I.R.B. 981
2024-24, 2024-45 I.R.B. 1086
Treasury Decisions:
10002, 2024-29 I.R.B. 56
9999, 2024-30 I.R.B. 72
10000, 2024-31 I.R.B. 185
10003, 2024-32 I.R.B. 342
10001, 2024-33 I.R.B. 412
10004, 2024-33 I.R.B. 489
9998, 2024-34 I.R.B. 412
10005, 2024-34 I.R.B. 510
9991, 2024-40 I.R.B. 646
10007, 2024-43 I.R.B. 981
9994, 2024-44 I.R.B. 1014
10008, 2024-45 I.R.B. 1082
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2024–27 through 2024–52 is in Internal Revenue Bulletin
2024–52, dated December 30, 2024.

Bulletin No. 2024–45 iii November 4, 2024
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2024–45
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2024–27 through 2024–52 is in Internal Revenue Bulletin
2024–52, dated December 30, 2024.

Internal Revenue Service
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