Internal Revenue Bulletin 2012-35 (PDF rendition): IRS Announcements

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Bulletin No. 201
2-35
August 27, 2012
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
REG–136491–09, page 321.
Proposed regulations under section 42 of the Code update the
utility allowance regulations to clarify that utility costs paid by
a tenant based on actual consumption in a submetered rent-re-
stricted unit are treated as paid by the tenant directly to the util-
ity company. A public hearing is scheduled for November 27,
2012.
EMPLOYEE PLANS
Notice 2012–53, page 317.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted
average interest rate for plan years beginning in August 2012;
the 24-month average segment rates; the funding transitional
segment rates applicable for August 2012; and the minimum
present value transitional rates for July 2012. However, the
notice does not reflect changes to segment rates required
under the Moving Ahead for Progress in the 21st Century Act
(MAP-21).
EXEMPT ORGANIZATIONS
Announcement 2012–32, page 325.
The IRS has revoked its determination that Christian Credit
Outreach, Inc., of Carlsbad, CA; ECM-1, Inc., of Sulphur, LA;
Friends of Fiji of Danville, CA; Headwaters Ministries, Inc., of
Fort Mill, SC; Kids Educational Development Scholarship, Inc.,
of Los Gatos, CA; South Plains Volunteer Services, Inc., of Lub-
bock, TX; United States Navy Veteran Association Minnesota
Chapter of St. Paul, MN; United States Navy Veteran Associ-
ation Georgia Chapter of Tampa, FL; United States Navy Vet-
eran Association Kansas Chapter of Washington, DC; United
States Navy Veteran Association New Hampshire Chapter of
Washington, DC; United StatesNavy Veteran Association New
Mexico Chapter of Washington, DC; United States Navy Veteran
Association Rhode Island Chapter of Washington, DC; United
States Navy Veteran Association of Washington, DC; United
States Navy Veteran Association Arkansas Chapter of Washing-
ton, DC; W.E.B. Dubois Community Development Corporation
of Wake Forest, NC; and Women of Distinction of Dallas, TX,
qualify as organizations described in sections 501(c)(3) and
170(c)(2) of the Code.
ADMINISTRATIVE
Notice 2012–52, page 317.
This notice advises taxpayers that, if all other requirements of
section 170 of the Code are met, the Service will treat a con-
tribution to a U.S. disregarded single member limited liability
company that is wholly owned and controlled by a U.S. charity
as a charitable contribution to a branch or division of the U.S.
charity.
Announcements of Disbarments and Suspensions begin on page 325.
Fi
nding Lists begin on page ii.
Index for July through August begins on page iv.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
August 27, 20122012–35 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Charitable Contributions to
Domestic Disregarded Entities
Notice 2012–52
PURPOSE
This notice provides guidance on the
deductibility of contributions to domestic
single-member limited liability companies
that are wholly owned and controlled by
organizations described in § 170(c)(2) of
the Internal Revenue Code (U.S. char-
ities) and for federal tax purposes are
disregarded as entities separate from their
owners under § 301.7701–2(c)(2)(i) of
the Procedure and Administration Regula-
tions (SMLLCs).
BACKGROUND
Section 170(a) allows as a deduction
any charitable contribution, as defined in
§ 170(c). Section 170(c)(2) in part defines
the term “charitable contribution” as a con-
tribution or gift to or for the use of a cor-
poration, trust, or community chest, fund,
or foundation—
(A) Created or organized in the United
States or in any possession thereof, or un-
der the law of the United States, any State,
the District of Columbia, or any possession
of the United States;
(B) Organized and operated exclu-
sively for specified purposes, including
religious, charitable, scientific, literary or
educational purposes;
(C) No part of the net earnings of which
inures to the benefit of any private share-
holder or individual; and
(D) Which is not disqualified for tax ex-
emption under § 501(c)(3) by reason of at-
tempting to influence legislation or partic-
ipating in a political campaign.
Section 170(b) prescribes limitations on
the maximum amount deductible as a char-
itable contribution.
Generally, a business entity that has
a single owner and is not a corporation
under § 301.7701–2(b) is disregarded
for federal tax purposes as an entity sep-
arate from its owner (disregarded en-
tity). See § 301.7701–2(c)(2)(i). Section
301.7701–2(a) provides that “if the entity
is disregarded, its activities are treated
in the same manner as a sole proprietor-
ship, branch, or division of the owner.” A
business entity (including a disregarded
entity) is domestic if it is created or orga-
nized within the United States, or under
the law of the United States or of any
state. See § 301.7701–5(a). A U.S. char-
ity that wholly owns a disregarded entity
must treat the operations and finances of
the disregarded entity as its own for tax
and information reporting purposes. See
Ann. 99–102, 1999–2 C.B. 545. How-
ever, for employment and certain excise
tax purposes, an entity that is disregarded
as separate from its owner for any pur-
pose under § 301.7701–2 is treated as
an entity separate from its owner. See
§ 301.7701–2(c)(2)(iv) and (v).
CONTRIBUTIONS TO DOMESTIC
SMLLCs
If all other requirements of § 170
are met, the Internal Revenue Service
will treat a contribution to a disregarded
SMLLC that was created or organized
in or under the law of the United States,
a United States possession, a state, or
the District of Columbia, and is wholly
owned and controlled by a U.S. charity,
as a charitable contribution to a branch
or division of the U.S. charity. The
U.S. charity is the donee organization
for purposes of the substantiation and
disclosure required by §§ 170(f) and
6115. To avoid unnecessary inquiries
by the Service, the charity is encouraged
to disclose, in the acknowledgment or
another statement, that the SMLLC is
wholly owned by the U.S. charity and
treated by the U.S. charity as a disregarded
entity. The limitations of § 170(b) apply
as though the gift were made to the U.S.
charity.
EFFECTIVE DATE
This notice is effective for charitable
contributions made on or after July 31,
2012. However, taxpayers may rely on this
notice prior to its effective date for taxable
years for which the period of limitation on
refund or credit under § 6511 has not ex-
pired.
DRAFTING INFORMATION
The principal author of this notice
is Susan J. Kassell of the Office of
the Associate Chief Counsel (Income
Tax & Accounting).For further
information concerning this notice, contact
Ms. Kassell at (202) 622–5020 (not a
toll-free call).
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2012–53
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under §412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in ef-
fect for plan years beginning before 2008.
It also provides guidance on the cor-
porate bond monthly yield curve (and
the corresponding spot segment rates),
and the 24-month average segment rates
under § 430(h)(2). In addition, this no-
tice provides guidance as to the interest
rate on 30-year Treasury securities un-
der § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the min-
imum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007. These rates do
not reflect any changes implemented by
the Moving Ahead for Progress in the
21st Century Act, Public Law 112–141
(MAP–21). MAP–21 provides that for
purposes of section 430(h)(2), the seg-
ment rates are limited by the applicable
maximum percentage or the applicable
minimum percentage based on the average
of segment rates over a 25 year period.
Guidance related to the new legislation
will be issued in the future.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections412(b)(5)(B)(ii)and
412(l)(7)(C)(i) provide that the interest
rates used to calculate current liability
2012–35 I.R.B.317August 27, 2012

and to determine the required contribution
under § 412(l) for plan years beginning
in 2004 through 2007 must be within a
permissible range based on the weighted
average of the rates of interest on amounts
invested conservatively in long term in-
vestment grade corporate bonds during the
4-year period ending on the last day before
the beginning of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
July 2012 is 3.97 percent. Pursuant to No-
tice 2004–34, the Service has determined
this rate as the average of the monthly
yields for the included corporate bond in-
dices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
August2012
5.31
4.78
5.31
YIELD CURVE AND SEGMENT
RATES
Generally, except for certain plans un-
der sections 104 and 105 of the Pension
Protection Act of 2006 (PPA), § 430 of
the Code specifies the minimum funding
requirements that apply to single em-
ployer plans pursuant to § 412. Section
430(h)(2) specifies the interest rates that
must be used to determine a plan’s target
normal cost and funding target. Under
this provision, present value is generally
determined using three 24-month average
interest rates (“segment rates”), each of
which applies to cash flows during spec-
ified periods. However, an election may
be made under § 430(h)(2)(D)(ii) to use
the monthly yield curve in place of the
segment rates.
Notice 2007–81, 2007–2 C.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the tar-
get normal cost and the funding target.
Pursuant to Notice 2007–81, the monthly
corporate bond yield curve derived from
July 2012 data is in Table I at the end of
this notice. The spot first, second, and
third segment rates for the month of July
2012 are, respectively, 1.22, 3.66, and
4.50. The three 24-month average cor-
porate bond segment rates applicable for
August 2012 are as follows:
First
Segment
Second
Segment
Third
Segment
1.774.67
5.78
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the appli-
cable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury se-
curities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
ble interest rate for a month is the annual
rate of interest on 30-year Treasury secu-
rities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Trea-
sury securities for July 2012 is 2.59 per-
cent. The Service has determined this rate
as the average of the daily determinations
of yield on the 30-year Treasury bond ma-
turing in May 2042.
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
Section 431(c)(6)(B)specifies a minimum
amount for the full-funding limitation
described in section 431(c)(6)(A), based
on the plan’s current liability. Section
431(c)(6)(E)(ii)(I) provides that the inter-
est rate used to calculate current liability
for this purpose must be no more than 5
percent above and no more than 10 percent
below the weighted average of the rates of
interest on 30-year Treasury securities dur-
ing the four-year period ending on the last
day before the beginning of the plan year.
Notice 88–73, 1988–2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The following rates
were determined for plan years beginning
in the month shown below.
August 27, 20123182012–35 I.R.B.

For Plan Years
Beginning inPermissible Ran
ge
MonthYear
30-Year
Treasury
Weighted
Average90%to105%
August20123.773.393.96
MINIMUM PRESENT
VALUE
SEGMENT RATES
In general, the
applicable interest rates
under § 417(e)(
3)(D) are segment rates
computed with
out regard to a 24-month
average. For p
lan years beginning in
2008 through 201
1, the applicable interest
rates are the mo
nthly spot segment rates
blended with th
e applicable rate under
§ 417(e)(3)(A)
(ii)(II) as in effect for plan
years beginnin
g in 2007. Notice 2007–81
provides guid
elines for determining the
minimum prese
nt value segment rates.
Pursuant to that
notice, the minimum
present value t
ransitional segment rates
determined for
July 2012, taking into ac-
count the July 2
012 30-year Treasury rate
of 2.59 stated a
bove, are as follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
20111.49
3.45
4.12
20121.223.66
4.50
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities Di-
vision. Mr. Montanaro may be e-mailed at
RetirementPlanQuestions@irs.gov.
2012–35 I.R.B.319August 27, 2012

Table I
Monthly Yield Curve for July 2012
Derived from July 2012 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.5
0.39
20.5
4.37
40.54.5160.54.5780.5
4.60
1.00.6721.04.3841.0
4.51
61.0
4.57
81.04.60
1.5
0.91
21.54.3841.54.5261.54.5781.54.60
2.01.1022.04.3942.0
4.52
62.0
4.58
82.04.60
2.5
1.24
22.5
4.39
42.54.5262.54.5882.5
4.60
3.01.3623.0
4.39
43.0
4.52
63.0
4.58
83.04.61
3.5
1.46
23.5
4.40
43.54.5363.54.5883.5
4.61
4.0
1.57
24.04.4044.0
4.53
64.0
4.58
84.04.61
4.51.7024.54.4044.54.5364.54.5884.54.61
5.0
1.83
25.0
4.41
45.04.5365.04.5885.0
4.61
5.5
1.98
25.5
4.41
45.54.5365.54.5885.5
4.61
6.0
2.15
26.04.4246.0
4.53
66.0
4.58
86.04.61
6.5
2.32
26.5
4.42
46.54.5466.54.5886.5
4.61
7.0
2.49
27.04.4247.0
4.54
67.0
4.58
87.04.61
7.52.6727.54.4347.54.5467.54.5987.54.61
8.02.8428.04.4348.0
4.54
68.04.5988.04.61
8.5
3.01
28.5
4.44
48.54.5468.5
4.59
88.5
4.61
9.0
3.16
29.0
4.44
49.0
4.54
69.0
4.59
89.0
4.61
9.53.3129.5
4.45
49.5
4.55
69.54.5989.54.61
10.03.4430.0
4.4550.04.55
70.04.59
90.0
4.61
10.53.5630.54.4550.54.5570.54.5990.54.61
11.03.6731.04.46
51.04.55
71.04.5991.04.61
11.5
3.77
31.5
4.46
51.54.5571.5
4.5991.54.61
12.03.8632.04.46
52.04.55
72.04.59
92.0
4.61
12.5
3.94
32.5
4.47
52.54.5572.5
4.5992.54.61
13.04.0133.04.47
53.04.56
73.04.59
93.0
4.62
13.54.0733.54.4753.54.5673.54.5993.54.62
14.04.1234.04.48
54.04.56
74.04.5994.04.62
14.5
4.17
34.5
4.48
54.54.5674.5
4.6094.54.62
15.0
4.21
35.0
4.48
55.04.5675.0
4.6095.04.62
15.5
4.24
35.5
4.49
55.54.5675.5
4.6095.54.62
16.04.2636.0
4.49
56.04.56
76.04.60
96.0
4.62
16.54.2836.5
4.49
56.54.5676.54.6096.54.62
17.04.3037.0
4.5057.04.57
77.04.6097.04.62
17.5
4.32
37.54.5057.54.5777.5
4.6097.54.62
18.04.3338.0
4.5058.04.57
78.04.60
98.0
4.62
18.5
4.34
38.54.5058.54.5778.5
4.6098.54.62
19.0
4.35
39.0
4.51
59.0
4.57
79.0
4.60
99.0
4.62
19.54.3639.54.5159.54.5779.54.6099.54.62
20.04.3740.0
4.51
60.0
4.57
80.04.60100.04.62
August 27, 20123202012–35 I.R.B.

Part IV. Items o
fGeneralInterest
Notice of Prop
osed
Rulemaking an
dNoticeof
Public Hearin
g
Utility Allow
ances
Submetering
REG–136491–
09
AGENCY: Inte
rnal Revenue Service
(IRS), Treas
ury.
ACTION: Noti
ce of proposed rulemaking
and notice o
f public hearing.
SUMMARY: Th
is document contains
proposed re
gulations that amend the util-
ity allowan
ce regulations concerning the
low-income
housing tax credit. The pro-
posed regul
ations update the utility al-
lowance re
gulations to clarify that utility
costs paid
by a tenant based on actual
consumpti
on in a submetered rent-re-
stricted u
nit are treated as paid by the
tenant di
rectly to the utility company.
The propo
sed regulations affect owners of
low-inco
me housing projects that claim
the credi
t, the tenants in those low-income
housing p
rojects, and the State and local
housing
credit agencies that administer the
credit.
This document also contains a no-
tice of a
public hearing on these proposed
regulat
ions.
DATES: C
omments must be received by
October
9, 2012. Outlines of topics to be
discus
sed at the public hearing scheduled
for Tue
sday, November 27, 2012, must be
receiv
ed by October 9, 2012.
ADDRES
SES: Send submissions to:
CC:PA:
LPD:PR(REG–136491–09),
room 52
05, Internal Revenue Service,
PO Box
7604, Ben Franklin Station,
Washi
ngton, DC 20044. Submissions may
be han
d-delivered Monday through Friday
betwe
en the hours of 8 a.m. and 4 p.m.
to CC:
PA:LPD:PR (REG–136491–09),
Cour
ier’s Desk, Internal Revenue
Serv
ice, 1111 Constitution Avenue, NW,
Wash
ington, DC, or sent electronically,
viat
heFederaleRulemaking
Port
al atwww.regulations.gov(IRS
REG–
136491–09). The public hearing
wil
l be held in the Auditorium of
the
Internal Revenue Building, 1111
Constitution
Avenue, NW, Washington,
DC.
FOR FURTHER IN
FORMATION
CONTACT: Conc
erning the proposed reg-
ulations, Dav
id Selig, at (202) 622–3040;
concerning su
bmissions of comments,
the hearing,
or to be placed on the
building acc
ess list to attend the hear-
ing, Oluwafu
nmilayo Taylor, at (202)
622–7180 (no
t toll-free numbers).
SUPPLEMENTA
RY INFORMATION:
Background
This docume
nt contains proposed
amendments
to the Income Tax Regu-
lations (26
CFR Part 1) relating to the
low-income
housing credit under section
42 of the In
ternal Revenue Code. Sec-
tion 42(a)
provides that, for purposes of
section 38
, the amount of the low-income
housing cr
edit determined under section
42 for any t
axable year in the credit pe-
riod is an
amount equal to the applicable
percenta
ge of the qualified basis of each
qualifie
d low-income building. A qual-
ified low
-income building is defined in
section 4
2(c)(2) as any building that is part
of a qual
ified low-income housing project
at all ti
mes during a statutorily prescribed
period.
A qualif
ied low-income housing project
is defin
ed in section 42(g)(1) as any project
for resi
dential rental housing if the project
meets on
e of the following tests elected by
the tax
payer: (1) At least 20 percent of the
reside
ntial units in the project are rent-re-
strict
ed and occupied by individuals whose
income
is 50 percent or less of area me-
dian gr
oss income; or (2) at least 40 per-
cent o
f the residential units in the project
are re
nt-restricted and occupied by indi-
vidua
ls whose income is 60 percent or less
of are
a median gross income. If a taxpayer
does n
ot meet the elected test, the project
is no
t eligible for the section 42 credit.
To qua
lify as a rent-restricted unit
with
in the meaning of section 42(g), the
gros
s rent for the unit must not exceed 30
perc
ent of the applicable income limita-
tion
. If any utilities are paid directly by
the t
enant, section 42(g)(2)(B)(ii) requires
the
inclusion in gross rent of a utility al-
low
ance determined by the Secretary, after
taking into ac
count the procedures under
section 8 of th
e United States Housing Act
of 1937.
On March 3, 199
4, the Treasury De-
partment and t
he IRS published in the
Federal Regis
tera Treasury Decision
containing fi
nal regulations under section
42 (59 FR 1006
7). Among these reg-
ulations was
§1.42–10, which provided
guidance reg
arding the proper role of util-
ity allowanc
es in determining gross rent
under secti
on 42(g)(2)(B)(i) for rent-re-
stricted un
its. On July 29, 2008, the Trea-
sury Depart
ment and the IRS published
in theFeder
al Registeramendments to
§1.42–10 (
73 FR 43863).
If gross ren
t includes a utility al-
lowance, §
1.42–10(b), as amended, pro-
vides rule
s for determining the applicable
utility al
lowance depending upon whether
(1) the bui
lding receives rental assistance
from the R
ural Housing Service (RHS)
(“RHS-as
sisted building”), (2) the build-
ing has an
y tenant that receives RHS rental
assistan
ce payments (“RHS tenant assis-
tance”),
(3) the rents and utility allowances
of the bu
ilding are reviewed by the Depart-
ment of H
ousing and Urban Development
(HUD) (“
HUD-regulated building”), or
(4) the b
uilding is not described in (1),
(2), or (
3) (“other building”). For an
RHS-as
sisted building and a building with
RHS ten
ant assistance, §1.42–10(b)(1)
and (b)
(2) provides that the applicable
utilit
y allowance is the applicable RHS
utilit
y allowance. For a HUD-regulated
build
ing, §1.42–10(b)(3) provides that the
appli
cable utility allowance is the appli-
cable
HUD utility allowance. In other
build
ings, for all rent-restricted units oc-
cupie
d by tenants receiving HUD tenant
assi
stance, §1.42–10(b)(4)(i) provides
that
the applicable utility allowance is
the a
pplicable Public Housing Authority
(PHA
) utility allowance established for
the S
ection 8 Existing Housing Program.
For
all other tenants in rent-restricted
uni
ts in other buildings, §1.42–10(b)(4)(ii)
pro
vides that the applicable utility al-
low
ance is the applicable PHA utility
all
owance under §1.42–10(b)(4)(ii)(A),
alo
cal utility company estimate un-
de
r §1.42–10(b)(4)(ii)(B), an estimate
fr
om the State or local housing credit
ag
ency that has jurisdiction over the
2012–35 I.R.B.321August 27, 2012

building under §1.42–10(b)(4)(ii)(C),
the HUD Utility Schedule Model
under §1.42–10(b)(4)(ii)(D), or an
energy consumption model under
§1.42–10(b)(4)(ii)(E).
After the 2008 amendment of the 1994
final regulations, commentators requested
clarification about how the regulations ap-
ply to submetering arrangements. Some
buildings in qualified low-income hous-
ing projects are submetered. Submeter-
ing measures tenants’ actual utility con-
sumption, and tenants pay for the utilities
they use. A submetering system typically
includes a master meter, which is owned
or controlled by the utility company, with
overall utility consumption billed to the
building owner. In a submetered system,
building owners (or their agents) use unit-
based meters to measure utility consump-
tion and prepare a bill for each residen-
tial unit based on actual consumption. The
building owners (or their agents) retain
records of utility consumption in each unit,
and tenants receive documentation of util-
ity costs as specified in the lease.
Notice 2009–44, 2009–21 I.R.B. 1037
(see §601.601(d)(2)(ii)(b)) was issued to
clarify that, for purposes of §1.42–10(a),
utility costs paid by a tenant based on ac-
tual consumption in a submetered rent-re-
stricted unit are treated as paid by the ten-
ant directly to the utility company, and not
by or through the owner of the building.
Notice 2009–44 provides that, for RHS-as-
sisted buildings under §1.42–10(b)(1),
buildings with RHS tenant assistance un-
der §1.42–10(b)(2), HUD-regulated build-
ings under §1.42–10(b)(3), and rent-re-
stricted units in other buildings occupied
by tenants receiving HUD rental assistance
under §1.42–10(b)(4)(i), the applicable
RHS or HUD rules apply.
For all other tenants in rent-re-
stricted units in other buildings under
§1.42–10(b)(4)(ii), Notice 2009–44 pro-
vides that the utility rates charged to
tenants in each submetered rent-restricted
unit must be limited to the utility company
rates incurred by the building owners (or
their agents). Notice 2009–44 also pro-
vides that, if building owners (or their
agents) charge tenants a reasonable fee for
the administrative costs of submetering,
then the fee is not considered gross rent
under section 42(g)(2). The fee must not
exceed an aggregate amount per unit of
5 dollars per month unless State law pro-
vides otherwise. If the costs for sewerage
are based on the tenants’ actual water con-
sumption determined with a submetering
system and the sewerage costs are on a
combined water and sewerage bill, then
the tenants’ sewerage costs are treated as
paid directly by the tenants for purposes
of the utility allowances regulations.
Even though Notice 2009–44 provides
that the fee for the administrative costs of
submetering is not considered gross rent
under section 42(g)(2), the fee must be in-
cluded in the gross income of the building
owner under section 61.
Notice 2009–44 states that the utility
allowance regulations would be amended
to incorporate the guidance set forth in
the notice and requested comments on the
provisions of the notice and issues result-
ing from the notice. Comments were re-
ceived in response to Notice 2009–44, and
the comments were taken into consider-
ation in developing these proposed reg-
ulations. The proposed regulations gen-
erally incorporate the guidance in Notice
2009–44 with additional modifications as
explained in more detail below. Addi-
tional comments are invited on the issues
discussedinthispreambleoronotheris-
sues related to utility submetering. See
§601.601(d)(2)(ii)(b).
Summary of Comments on Notice
2009–44 and Explanation of Provisions
A commentator requested that ratio util-
ity billing systems (commonly known as
RUBS) be treated like submetering. Un-
like submetering, RUBS use a formula that
allocates a property’s utility bill among
its units based on the units’ relative floor
space, number of occupants, or some other
quantitative measure, but not actual use by
the unit. The IRS and the Treasury Depart-
ment believe it is appropriate to treat a ten-
ant’s payment of a utility through a build-
ing owner (or its agent) as a direct pay-
ment to the utility only to the extent the
tenant’s utility cost is based on the unit’s
actual consumption. Therefore, the pro-
posed regulations do not permit utility al-
lowances for RUBS.
A commentator recommended that the
regulations exclude or restrict “quasi-us-
age” allocation systems in buildings with a
master chiller or boiler where the tenant’s
use of utilities is partly determined on an
assumption not relating to actual use (such
as the number of times a tenant turns on
the system). Under Notice 2009–44 and
these proposed regulations, if a submeter-
ing arrangement is not based on a unit’s ac-
tual consumption of a utility, then the gross
rent for that unit cannot include a utility al-
lowance for that particular utility.
A commentator inquired as to the for-
mat and length of time records of resi-
dent utility consumption should be main-
tained. Existing rules address record reten-
tion. Section 1.42–10(d) provides that the
building owner must retain any utility con-
sumption estimates and supporting data as
part of the taxpayer’s records for purposes
of §1.6001–1(a).
A commentator suggested that the
regulations should limit use of a PHA
utility allowance for non-Section 8 units
that are submetered. The commentator
reasoned that the PHA utility allowance
does not reflect actual utility consump-
tion in the building, resulting in a low
allowance in some cases. In the past,
other commentators have stated that PHA
utility allowances generally are too high
because they are based on older build-
ings with higher utility costs compared to
newly constructed or renovated low-in-
come housing projects. The IRS and
the Treasury Department have deter-
mined that, if building owners do not
wish to expend resources to obtain util-
ity allowances under one of the methods
in §1.42–10(b)(4)(ii)(B), (b)(4)(ii)(C),
(b)(4)(ii)(D), or (b)(4)(ii)(E), it is reason-
able that they be permitted to use PHA
utility allowances for units not subject to
§1.42–10(b)(1), (b)(2), (b)(3), or (b)(4)(i).
Commentators also requested clari-
ficationonotherrulescontainedinthe
§1.42–10 final regulations. A commenta-
tor asked whether State housing agencies
are allowed to disapprove of certain meth-
ods for determining utility allowances
listed in §1.42–10(b)(4)(ii). Existing rules
address the role of State housing agen-
cies in determining utility allowances.
Thus, depending on the particular method
under §1.42–10(b)(4)(ii), State housing
agencies may require certain information
before a method can be used, or they may
disapprove use of a method. For exam-
ple, §1.42–10(b)(4)(ii)(C) provides that a
building owner may obtain a utility esti-
mate for each unit in the building from the
agency that has jurisdiction over the build-
ing “provided the Agency agrees to pro-
August 27, 20123222012–35 I.R.B.

vide the estimate.” That is, State housing
agencies are not required to provide a util-
ity estimate under §1.42–10(b)(4)(ii)(C).
Also, §1.42–10(b)(4)(ii)(E) provides that,
under the energy consumption model,
utility consumption estimates must be
calculated by “either a properly licensed
engineer or a qualified professional ap-
proved by the Agency that has jurisdiction
over the building.” Thus, State housing
agencies are not required to provide the ap-
proval described in §1.42–10(b)(4)(ii)(E).
Comments are requested on whether ap-
proval by the agency with jurisdiction over
the building should be necessary for both
properly licensed engineers and qualified
professionals or only for qualified pro-
fessionals that are not properly licensed
engineers.
A commentator asserted that there is
confusion concerning mixed-financed
properties, which may be subject to mul-
tiple Federal programs using different
utility allowances. The commentator re-
quested clarification on which methods
maybeusedinbuildingswithmultiple
programs. If a building receives assistance
from RHS or if any tenant in a building
receives RHS rental assistance payments,
then the applicable utility allowance for
all rent-restricted units in the building is
the utility allowance determined under
themethodprescribedbytheRHSfor
the building (whether or not the building
or its tenants receive other state or fed-
eral assistance). If neither a building nor
any tenant in the building receives RHS
housing assistance and the building is a
HUD-regulated building, then the applica-
ble utility allowance for all rent-restricted
units in the building is the applicable HUD
utility allowance. If a building is neither
an RHS-assisted nor a HUD-regulated
building, no tenant in the building receives
RHS tenant assistance, and tenants in a
rent-restricted unit in the building receive
HUD rental assistance payments, then the
applicable utility allowance for that unit is
the applicable PHA utility allowance. For
all other rent-restricted units not subject
to any of the methods in §1.42–10(b)(1),
(b)(2), (b)(3), or (b)(4)(i), the building
owner may use the applicable PHA utility
allowance or one of the building meth-
ods in §1.42–10(b)(4)(ii)(B), (b)(4)(ii)(C),
(b)(4)(ii)(D), or (b)(4)(ii)(E) for calculat-
ing utility allowances for all rent-restricted
units in the building.
The proposed regulations modify the
requirements in Notice 2009–44 in the fol-
lowing manner: First, if two or more utili-
ties such as electricity and water are treated
as submetered under the proposed regu-
lations, then the building owner (or its
agent or other party acting on behalf of the
building owner) must separately state the
amount billed to the tenants for each sub-
metered utility.
Second, if a building owner imposes
an administrative fee on a unit’s tenants
for the costs of administering a subme-
tering arrangement, then the fee generally
is not included in gross rent for purposes
of section 42(g)(2). The exclusion from
gross rent does not apply to any amount
by which the aggregate monthly fee for all
of a unit’s utilities under one or more sub-
metering arrangements exceeds the lesser
of the following: (A) Five dollars per
month or (B) The owner’s actual monthly
costs paid or incurred for administering
the arrangement (whether internal costs or
amounts paid to third parties).
For this purpose, the owner’s ac-
tual costs include internal costs (such as
amounts paid to employees) and external
costs (such as amounts paid to third-party
service providers) for administering the
submetering arrangement, as well as that
month’s portion of costs that relate to the
submetering equipment and that are not
included in the building’s eligible basis
under section 42(d). The goal of these re-
strictions is to disallow any exclusion from
gross rent beyond the extent to which a fee
represents a reasonable reimbursement to
the owner for the owner’s otherwise un-
reimbursed actual costs for administering
the submetering arrangement. The IRS
and the Treasury Department request com-
ments on whether or not rules are needed
to address the building owner’s determina-
tion of actual costs when a utility company
administers a submetering arrangement on
behalf of the building owner and includes
in the utility rate an amount for its services
that is not separately stated.
Third, the proposed regulations remove
the requirement in Notice 2009–44 that the
administrative fee must not exceed an ag-
gregate amount per unit of 5 dollars per
month (unless State law provides other-
wise). Instead of that prohibition, the pro-
posed regulations merely require inclusion
in gross rent for any amounts charged in
excess of the lesser of five dollars or ac-
tual administrative costs.
The proposed regulations also
amend §1.42–10(b)(4)(ii)(A). Section
1.42–10(b)(4)(i) provides rules for deter-
mining the utility allowance of rent-re-
stricted units occupied by tenants re-
ceiving HUD rental assistance. Sec-
tion 1.42–10(b)(4)(ii)(A) provides that,
if none of the rules of §1.42–10(b)(1),
(b)(2), (b)(3), and (b)(4)(i) apply to any
rent-restricted units in a building, then
the utility allowance for the units may be
determined under §1.42–10(b)(4)(ii)(B),
(b)(4)(ii)(C), (b)(4)(ii)(D), or (b)(4)(ii)(E).
Some commentators have interpreted
§1.42–10(b)(4)(ii)(A) to mean that, if
a tenant receiving HUD rental assis-
tance occupies a rent-restricted unit in
a building, then the methods described
in §1.42–10(b)(4)(ii)(B), (b)(4)(ii)(C),
(b)(4)(ii)(D), and (b)(4)(ii)(E) are not
available for determining utility al-
lowances for any other rent-restricted units
in the same building. This result was not
intended. The proposed regulations amend
§1.42–10(b)(4)(ii)(A) to clarify that for
all rent-restricted units not subject to the
rules of §1.42–10(b)(1), (b)(2), (b)(3), and
(b)(4)(i) for determining the appropriate
utility allowance for a rent-restricted unit,
the owner may choose one of the options
under §1.42–10(b)(4)(ii)(B), (b)(4)(ii)(C),
(b)(4)(ii)(D), and (b)(4)(ii)(E) or the ap-
plicable PHA utility allowance for de-
termining the utility allowance for those
rent-restricted units.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a significant
regulatory action as defined in Executive
Order 12866, as supplemented by Execu-
tive Order 13563. Therefore, a regulatory
assessment is not required. It also has been
determined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C. chap-
ter 5) does not apply to this regulation, and
because the regulation does not impose a
collection of information on small entities,
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to sec-
tion 7805(f) of the Internal Revenue Code,
this regulation has been submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
its impact on small business.
2012–35 I.R.B.323August 27, 2012

Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are sub-
mitted timely to the IRS prescribed in this
preamble under the “Addresses” heading.
The IRS and the Treasury Department re-
quest comments on all aspects of the pro-
posed rules. All comments will be avail-
able atwww.regulations.govor upon re-
quest.
A public hearing has been scheduled for
Tuesday, November 27, 2012, at 10 a.m.
in the Auditorium of the Internal Revenue
Building, 1111 Constitution Avenue, NW,
Washington, DC. Due to building security
procedures, visitors must enter at the Con-
stitution Avenue entrance. In addition, all
visitors must presentphoto identification
to enter the building. Because of access
restrictions, visitors will not be admitted
beyond the immediate entrance area more
than 30 minutes before the hearing starts.
For information about having your name
placed on the building access list to attend
the hearing, see the “FOR FURTHER IN-
FORMATION CONTACT” section of this
preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit electronic or written com-
ments and an outline of the topics to be
discussed and the time to be devoted to
each topic (signed original and eight (8)
copies) by October 9, 2012. A period
of 10 minutes will be allotted to each
person for making comments. An agenda
showing the scheduling of the speakers
will be prepared after the deadline for
receiving outlines has passed. Copies of
the agenda will be available free of charge
at the hearing.
Drafting Information
The principal author of these regula-
tions is David Selig, Office of the As-
sociate Chief Counsel (Passthroughs and
Special Industries), IRS. However, other
personnel from the IRS and the Treasury
Department participated in their develop-
ment.
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is proposed
to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.42–10 is amended by:
1.Addingasentenceafterthefirstsen-
tence of paragraph (a).
2. Revising the first sentence of para-
graph (b)(4)(ii)(A).
3. Adding paragraph (e).
The additions and revisions read as fol-
lows:
§1.42–10 Utility allowances.
(a) * * * For purposes of the preced-
ing sentence, if the cost of a particular util-
ity for a residential unit is paid pursuant
to an actual-consumption submetering ar-
rangement within the meaning of para-
graph (e)(1) of this section, then that cost
is treated as being paid directly by the ten-
ant(s) and not by or through the owner of
the building. * * *
*****
(b) * * *
(4) * * *
(ii) * * *
(A)***Ifnoneoftherulesofpara-
graphs (b)(1), (b)(2), (b)(3), and (b)(4
)(i)
of this section apply to determine the ap-
propriate utility allowance for a rent-r
e-
stricted unit, then the appropriate util
ity al-
lowance for the unit is the applicable PH
A
utility allowance. * * *
*****
(e)Actual-consumption submetering
arrangements—(1)Definition. For pur-
poses of this section, an actual-consump-
tion submetering arrangement for a utility
in a residential unit possesses all of the
following attributes:
(i) The building owner (or its agent or
other party acting on behalf of the build-
ing owner) pays the utility provider for the
particular utility consumed by the tenants
in the unit;
(ii) The tenants in the unit are billed for,
and pay the building owner (or its agent or
other party acting on behalf of the building
owner) for, the unit’s consumption of the
particular utility;
(iii) The billed amount reflects the
unit’s actual consumption of the particular
utility. In the case of sewerage charges,
however, if the unit’s sewerage charges are
combined on the bill with water charges
and the sewerage charges are determined
based on the actual water consumption of
the unit, then the bill is treated as reflect-
ing the actual sewerage consumption of
the unit; and
(iv) The utility rate charged to the ten-
ants of the unit does not exceed the util-
ity company rate incurred by the building
owner for that particular utility.
(2)Special rules—(i)Fees. If the owner
charges a unit’s tenants an administrative
fee for the owner’s actual monthly costs of
administering an actual-consumption sub-
metering arrangement, then the fee is not
considered gross rent for purposes of sec-
tion 42(g)(2). The preceding sentence,
however, does not apply unless the fee is
computed in the same manner for every
unit receiving the same submetered utility
service, nor does it apply to any amount by
which the aggregate monthly fee or fees
for all of the unit’s utilities under one or
more actual-consumption submetering ar-
rangements exceed the lesser of—
(A) Five dollars per month; or
(B) The owner’s actual monthly costs
paid or incurred for administering the ar-
rangement.
(ii)Actual costs. For purposes of
paragraph (e)(2)(i)(B) of this section, the
owner’s actual costs of administering an
actual-consumption submetering arrange-
ment include amounts paid to employ-
ees, independent contractors, and service
providers for administering the submeter-
ing arrangement and allocable costs that
relate to submetering equipment and that
are not included in the building’s eligible
basis under section 42(d).
Par. 3. Section 1.42–12 is amended by
adding paragraph (a)(5) to read as follows:
§1.42–12 Effective dates and transitional
rules.
(a) * * *
(5)Submetered buildings. The sec-
ond sentence in §1.42–10(a), the first
sentence in §1.42–10(b)(4)(ii)(A), and
§1.42–10(e) apply to utility allowances
determined on or after the date the final
August 27, 20123242012–35 I.R.B.

regulations are published in theFederal
Register. Until the date the final reg-
ulations are published in theFederal
Register,taxpayersmayrelyonNotice
2009–44, 2009–21 I.R.B. 1037; May 26,
2009 (see §601.601(d)(2)(ii)(b)ofthis
chapter) for taxable years beginning on or
after July 29, 2008.
*****
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
(Filed by the Office of the Federal Register on August 6,
2012, 8:45 a.m., and published in the issue of the Federal
Register for August 7, 2012, 77 F.R. 46987)
Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code
Announcement 2012–32
The Internal Revenue Service has re-
voked its determination that the organi-
zations listed below qualify as organiza-
tions described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an or-
ganization ceases to qualify under section
170(c)(2) if the organization has not timely
filed a suit for declaratory judgment under
section 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.
If on the other hand a suit for declara-
tory judgment has been timely filed, con-
tributions from individuals and organiza-
tions described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on August 27, 2012,
andwouldendonthedatethecourtfirst
determines that the organization is not de-
scribed in section 170(c)(2) as more partic-
ularly set forth in section 7428(c)(1). For
individual contributors, the maximum de-
duction protected is $1,000, with a hus-
band and wife treated as one contributor.
This benefit is not extended to any indi-
vidual, in whole or in part, for the acts or
omissions of the organization that were the
basis for revocation.
Christian Credit Outreach, Inc.
Carlsbad, CA
ECM–1, Inc.
Sulphur, LA
Friends of Fiji
Danville, CA
Headwaters Ministries, Inc.
Fort Mill, SC
Kids Educational Development
Scholarship, Inc.
Los Gatos, CA
South Plains Volunteer Services, Inc.
Lubbock, TX
United States Navy Veteran Association
Minnesota Chapter
St. Paul, MN
United States Navy Veteran Association
Georgia Chapter
Tampa, FL
United States Navy Veteran Association
Kansas Chapter
Washington, DC
United States Navy Veteran Association
New Hampshire Chapter
Washington, DC
United States Navy Veteran Association
New Mexico Chapter
Washington, DC
United States Navy Veteran Association
Rhode Island Chapter
Washington, DC
United States Navy Veteran Association
Washington, DC
United States Navy Veteran Association
Arkansas Chapter
Washington, DC
W.E.B. Dubois Community Development
Corporation
Wake Forest, NC
Women of Distinction
Dallas, TX
Announcement of Disciplinary Sanctions From the Office
of Professional Responsibility
Announcement 2012-33
TheOfficeofProfessionalResponsi-
bility (OPR) announcesrecent disciplinary
sanctions involving attorneys, certified
public accountants, enrolled agents, en-
rolled actuaries, enrolled retirement plan
agents, and appraisers. These individuals
are subject to the regulations governing
practice before the Internal Revenue Ser-
vice (IRS), which are set out in Title 31,
Code of Federal Regulations, Part 10, and
which are published in pamphlet form as
Treasury Department Circular No. 230.
The regulations prescribe the duties and
restrictions relating to such practice and
prescribe the disciplinary sanctions for
violating the regulations.
The disciplinary sanctions to be im-
posed for violation of the regulations are:
Disbarred from practice before the
IRS—An individual who is disbarred is
not eligible to represent taxpayers before
the IRS.
Suspended from practice before the
IRS—An individual who is suspended is
not eligible to represent taxpayers before
the IRS during the term of the suspension.
Censured in practice before the
IRS—Censure is a public reprimand. Un-
like disbarment or suspension, censure
does not affect an individual’s eligibility
to represent taxpayers before the IRS, but
OPR may subject the individual’s future
representations to conditions designed to
promote high standards of conduct.
Monetary penalty—A monetary
penalty may be imposed on an individual
2012–35 I.R.B.325August 27, 2012

who engages in conduct subject to sanc-
tion or on an employer, firm, or entity
if the individual was acting on its behalf
and if it knew, or reasonably should have
known, of the individual’s conduct.
Disqualification of appraiser—An
appraiser who is disqualified is barred
from presenting evidence or testimony in
any administrative proceeding before the
Department of the Treasury or the IRS.
Under the regulations, attorneys, cer-
tified public accountants, enrolled agents,
enrolled actuaries, and enrolled retirement
plan agents may not assist, or accept assis-
tance from, individuals who are suspended
or disbarred with respect to matters consti-
tuting practice (i.e., representation) before
the IRS, and they may not aid or abet sus-
pended or disbarred individuals to practice
before the IRS.
Disciplinary sanctions are described in
these terms:
Disbarred by decision after hearing,
Suspended by decision after hearing,
Censured by decision after hearing,
Monetary penalty imposed after hear-
ing, and Disqualified after hearing—An
administrative law judge (ALJ) conducted
an evidentiary hearing upon OPR’s com-
plaint alleging violation of the regulations
and issued a decision imposing one of
these sanctions. After 30 days from the
issuance of the decision, in the absence of
an appeal, the ALJ’s decision became the
final agency decision.
Disbarred by default decision, Sus-
pended by default decision, Censured by
default decision, Monetary penalty im-
posed by default decision, and Disqual-
ified by default decision—An ALJ, after
findingthatnoanswertoOPR’scomplaint
had been filed, granted OPR’s motion for a
default judgment and issued a decision im-
posing one of these sanctions.
Disbarment by decision on appeal,
Suspended by decision on appeal, Cen-
sured by decision on appeal, Monetary
penalty imposed by decision on ap-
peal, and Disqualified by decision on
appeal—The decision of the ALJ was
appealed to the agency appeal authority,
acting as the delegate of the Secretary
of the Treasury, and the appeal authority
issued a decision imposing one of these
sanctions.
Disbarred by consent, Suspended by
consent, Censured by consent, Mone-
tary penalty imposed by consent, and
Disqualified by consent—In lieu of a
disciplinary proceeding being instituted
or continued, an individual offered a con-
sent to one of these sanctions and OPR
accepted the offer. Typically, an offer
of consent will provide for: suspension
for an indefinite term; conditions that the
individual must observe during the sus-
pension; and the individual’s opportunity,
after a stated number of months, to file
with OPR a petition for reinstatement af-
firming compliance with the terms of the
consent and affirming current eligibility
to practice (i.e., an active professional
license or active enrollment status). An
enrolled agent or an enrolled retirement
plan agent may also offer to resign in order
to avoid a disciplinary proceeding.
Suspended by decision in expedited
proceeding, Suspended by default de-
cision in expedited proceeding, Sus-
pended by consent in expedited pro-
ceeding—OPR instituted an expedited
proceeding for suspension (based on cer-
tain limited grounds, including loss of a
professional license and criminal convic-
tions).
OPR has authority to disclose the
grounds for disciplinary sanctions in these
situations: (1) an ALJ or the Secretary’s
delegate on appeal has issued a decision
on or after September 26, 2007, which was
theeffectivedateofamendmentstothe
regulations that permit making such deci-
sions publicly available; (2) the individual
has settled a disciplinary case by signing
OPR’s “consent to sanction” form, which
requires consenting individuals to admit to
one or more violations of the regulations
and to consent to the disclosure of the in-
dividual’s own return information related
to the admitted violations (for example,
failure to file Federal income tax returns);
or (3) OPR has issued a decision in an
expedited proceeding for suspension.
Announcements of disciplinary sanc-
tions appear in the Internal Revenue Bul-
letin at the earliest practicable date. The
sanctions announced below are alphabet-
ized first by the names of states and sec-
ond by the last names of individuals. Un-
less otherwise indicated, section numbers
(e.g., § 10.51) refer to the regulations.
City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
California
La MesaLewis, Charles D.Enrolled AgentSuspended by decision
in expedited proceeding
under § 10.82 (convicted
under CA law of theft
or embezzlement from
elderly person)
Indefinite from
May 15, 2012
August 27, 20123262012–35 I.R.B.

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Connecticut
WallingfordGanias, Stavros M.Enrolled AgentSuspended by decision
in expedited proceeding
under § 10.82 (conviction
under 26 U.S.C. § 7201,
attempt to evade or defeat
taxandtaxevasion)
Indefinite from
June 1, 2012
Florida
OdessaOsimen, Christopher E. CPASuspended by decision
in expedited proceeding
under § 10.82 (conviction
under 18 U.S.C. § 1341,
mail fraud and 26 U.S.C.
§ 7201, tax evasion)
Indefinite from
May 29, 2012
Kentucky
LexingtonRogers, Mary C.CPASuspended by default
decision in expedited
proceeding under
§ 10.82 (conviction
under 18 U.S.C. § 1349,
conspiracy to commit
bank and mail fraud and
26 U.S.C. § 7206(1),
filing a false income tax
return)
Indefinite from
May 30, 2012
Louisiana
MetairieMiller, Bruce A.AttorneyCensured by consent
for admitted violation
of § 10.29 (conflict of
interest)
June 4, 2012
SlidellOhle III., John B.CPASuspended by default
decision in expedited
proceeding under
§ 10.82 (conviction
under 18 U.S.C. § 371,
conspiracy to defraud
the United States and to
commit wire fraud and
26 U.S.C. § 7201, tax
evasion)
Indefinite from
May 15, 2012
Baton RougeZinna, Randy P.AttorneySuspended by default
decision in expedited
proceeding under
§ 10.82 (conviction
under 18 U.S.C. § 1341,
mail fraud, and permanent
resignation of attorney
license)
Indefinite from
May 15, 2012
2012–35 I.R.B.327August 27, 2012

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Montana
KalispellBenavides, AlCPASuspended by default
decision in expedited
proceeding under § 10.82
(conviction under
26 U.S.C. § 7206(2),
aid or assist false or
fraudulent document)
Indefinite from
June 13, 2012
NewYork
BrooklynO’Brien, John J.AttorneySuspended by default
decision in expedited
proceeding under
§ 10.82 (conviction
under 26 U.S.C. § 7203,
willful failure to file U.S.
individual income tax
returns and willful failure
to pay tax)
Indefinite from
May 31, 2012
Ohle III., John B.,
See Louisiana
Ohio
Rogers, Mary C.
See Kentucky
Oregon
Christensen, David O.,
See Washington
Washington
VancouverChristensen, David O. CPASuspended by default
decision in expedited
proceeding under § 10.82
(revocation of CPA
license)
Indefinite from
May 18, 2012
Port OrchardVazquez, Sonya M.CPAReinstated to
practice before the
IRS, May 10, 2012
SpokaneWasson, Curtis G.Enrolled AgentSuspended by default
decision in expedited
proceeding under
§ 10.82 (convicted under
Washington law state of
first degree theft)
Indefinite from
May 18, 2012
August 27, 20123282012–35 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2012–35 I.R.B.iAugust 27, 2012

Numerical Finding List
1
Bulletins 2012–27 through 2012–35
Announcements:
2012-26, 2012-27 I.R.B.8
2012-27, 2012-27 I.R.B.10
2012-28, 2012-27 I.R.B.10
2012-30, 2012-34 I.R.B.314
2012-31, 2012-34 I.R.B.315
2012-32, 2012-35 I.R.B.325
2012-33, 2012-35 I.R.B.325
Notices:
2012-39, 2012-31 I.R.B.95
2012-44, 2012-28 I.R.B.45
2012-45, 2012-29 I.R.B.59
2012-46, 2012-30 I.R.B.86
2012-47, 2012-31 I.R.B.98
2012-48, 2012-31 I.R.B.102
2012-49, 2012-31 I.R.B.119
2012-50, 2012-31 I.R.B.121
2012-51, 2012-33 I.R.B.150
2012-52, 2012-35 I.R.B.317
2012-53, 2012-35 I.R.B.317
Proposed Regulations:
REG-101812-07, 2012-34 I.R.B.311
REG-134042-07, 2012-27 I.R.B.5
REG-153627-08, 2012-29 I.R.B.60
REG-136491-09, 2012-35 I.R.B.321
REG-125570-11, 2012-30 I.R.B.93
REG-130266-11, 2012-32 I.R.B.126
REG-134935-11, 2012-29 I.R.B.64
REG-141832-11, 2012-28 I.R.B.54
REG-107889-12, 2012-28 I.R.B.53
REG-113738-12, 2012-29 I.R.B.66
Revenue Procedures:
2012-28, 2012-27 I.R.B.4
2012-29, 2012-28 I.R.B.49
2012-30, 2012-33 I.R.B.165
2012-31, 2012-33 I.R.B.256
2012-32, 2012-34 I.R.B.267
2012-33, 2012-34 I.R.B.272
2012-34, 2012-34 I.R.B.280
Revenue Rulings:
2012-19, 2012-28 I.R.B.16
2012-20, 2012-27 I.R.B.1
2012-21, 2012-32 I.R.B.123
Treasury Decisions:
9591, 2012-28 I.R.B.32
9592, 2012-28 I.R.B.41
9593, 2012-28 I.R.B.17
Treasury Decisions— Continued:
9594, 2012-29 I.R.B.57
9595, 2012-30 I.R.B.71
9596, 2012-30 I.R.B.84
9597, 2012-34 I.R.B.258
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin
2012–26, dated June 25, 2012.
August 27, 2012ii2012–35 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2012–27 through 2012–35
Announcements:
83-196
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
85-141
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
Notices:
2009-24
Amplified by
Notice 2012-51, 2012-33 I.R.B.150
2012-51
Amplified by
Notice 2012-51, 2012-33 I.R.B.150
Proposed Regulations:
REG-100276-97
Withdrawn by
Ann. 2012-27, 2012-27 I.R.B.10
Revenue Procedures:
95-15
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
98-32
Modified and superseded by
Rev. Proc. 2012-33, 2012-34 I.R.B.272
2007-38
Modified and superseded by
Rev. Proc. 2012-32, 2012-34 I.R.B.267
2011-40
Superseded by
Rev. Proc. 2012-30, 2012-33 I.R.B.165
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin 2012–26, dated June 25, 2012.
2012–35 I.R.B.iiiAugust 27, 2012

INDEX
Internal Revenue Bulletins 2012–27 through
2012–35
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parentheses refer to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Amendment of prohibited payment option under defined sin-
gle–employer defined benefit plan of plan sponsor in bank-
ruptcy (REG–113738–12) 29,66
Application of section 162(m)(4)(C) to dividends and dividend
equivalents (RR 19) 28,16
Election to include in gross income in year of transfer (RP 29)
28,49
Full funding limitations, weighted average interest rates, seg-
ment rates for:
July 1, 2012 (Notice 47) 31,98
August 1, 2012 (Notice 53) 35,317
Proposed Regulations:
26 CFR 1.411(d)–4, amended; amendment of prohibited pay-
ment option under defined single–employer defined benefit
plan of plan sponsor in bankruptcy (REG–113738–12) 29,
66
26 CFR 1.6081–11, amended; 301.6057–1, amended; report-
ing and notice requirements for deferred vested benefits un-
der section 6057 (REG–153627–08) 29,60
Reporting and notice requirements for deferred vested benefits
under section 6057 (REG–153627–08) 29,60
Underfunded plans, notice requirements (Notice 46) 30,86
EMPLOYMENT TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Revisions to Rev. Proc. 98–32 (RP 33) 34,272
Third party payer issues and reporting agents, revisions to Rev.
Proc. 2007–38 (RP 32) 34,267
ESTATE TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Portability of a deceased spousal unused exclusion amount (TD
9593) 28,17; (REG–141832–11) 28,54
Proposed Regulations:
26 CFR 20.2001–2, added; 20.2010–0, thru –3, added; 25
CFR 25.2505–0, thru –2, added; portability of a deceased
spousal unused exclusion amount (REG–141832–11) 28,
54
Regulations:
26 CFR 20.2001–2T, added; 20.2010–0T, thru –2T, added;
25.2505–0T, thru –3T, added; 602.101, amended; porta-
bility of a deceased spousal unused exclusion amount (TD
9593) 28,17
EXCISE TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Disregarded entities and the indoor tanning services excise tax
(TD 9596) 30,84; (REG–125570–11) 30,93
Proposed Regulations:
26 CFR 1.1361–4, amended; 301.7701–2, amended; disre-
garded entities and the indoortanning services excise tax
(REG–125570–11) 30,93
Regulations:
26 CFR 1.1361–4, amended; 1.1361–4T, added;
301.7701–2T, added; disregarded entities and the indoor
tanning services excise tax (TD 9596) 30,84
EXEMPT ORGANIZATIONS
Additional requirements for charitable hospitals
(REG–130266–11) 32,126
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Proposed Regulations:
26 CFR 1.501(r)–0 thru –7, added; additional requirements
for charitable hospitals (REG–130266–11) 32,126
Revocations (Ann 32) 35,325
GIFT TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Portability of a deceased spousal unused exclusion amount (TD
9593) 28,17; (REG–141832–11) 28,54
Proposed Regulations:
26 CFR 20.2001–2, added; 20.2010–0, thru –3, added; 25
CFR 25.2505–0, thru –2, added; portability of a deceased
spousal unused exclusion amount (REG–141832–11) 28,
54
August 27, 2012iv2012–35 I.R.B.

GIFT TAX—Cont.
Regulations:
26 CFR 20.2001–2T, added; 20.2010–0T, thru –2T, added;
25.2505–0T, thru –3T, added; 602.101, amended; porta-
bility of a deceased spousal unused exclusion amount (TD
9593) 28,17
INCOME TAX
Application of section 162(m)(4)(C) to dividends and dividend
equivalents (RR 19) 28,16
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
Basis of indebtedness of S corporations to their shareholders
(REG–134042–07) 27,5
Bonds:
Qualified energy conversation bonds (Notice 44) 28,45
Tribal economic development bonds (Notice 48) 31,102
Charitable contribution deduction (Notice 52) 35,317
Corporations, regulations under section 367(d) applicable to cer-
tain outbound asset reorganizations (Notice 39) 31,95
Credits:
Low-income housing credit:
Utility allowances submetering (REG–136491–09) 35,
321
Qualifying advance coal project section 48A credit (Notice
51) 33,150
Deductions for entertainment use of business aircraft (TD 9597)
34,258
Disciplinary actions involvingattorneys, certified public ac-
counts, enrolled agents, and enrolled actuaries (Ann 28) 27,
10; (Ann 33) 35,325
Election to include in gross income in year of transfer (RP 29)
28,49
Financial asset securitization investment trusts (Ann 27) 27,10
Forms 1097, 1098, 3921, 3922, 5498, 8935, and W-2G, require-
ments for filing electronically (RP 30) 33,165
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
July (RR 20) 27,1
August 2012 (RR 21) 32,123
Marginal production rates, 2012 (Notice 50) 31,121
Modification to consolidated return regulation permitting an
election to treat a liquidation of a target, followed by a recon-
tribution to a new target, as a cross-chain reorganization (TD
9594) 29,57
Overall foreign loss recapture on property dispositions
(REG–134935–11) 29,64
Proposed Regulations:
26 CFR 1.42–10, –12, amended; utility allowances submeter-
ing (REG–136491–09) 35,321
26 CFR 1.108–7, amended; 1.366–0, amended; 1.1366–2, –5,
amended; 1.1367–1(h), amended; 1.1367–3, amended; ba-
sis of indebtedness of S corporations to their shareholders
(REG–134042–07) 27,5
INCOME TAX—Cont.
26 CFR 1.274–2, amended; 1.274–8, revised; reimbursed en-
tertainment expenses (REG-101812–07) 34,311
26 CFR 1.904–4, amended; 1.904(g)–3, amended; over-
all foreign loss recaptureon property dispositions
(REG–134935–11) 29,64
26 CFR 1.7874–3, added; substantial business activities
(REG–107889–12) 28,53
Publications:
1120, Specifications for filing Forms 1097, 1098, 3921, 3922,
5498, 8935, and W-2G, electronically, 2012 revision (RP
30) 33,165
4810, Specificatiions for filing Forms 8955–SSA, Annual
Registration Statement Identifying Separated Participants
With Deferred Vested Benefits, Electronically (RP 34) 34,
280
Qualifying income under section 7704(d) (RP 28) 27,4
Regulations:
26 CFR 1.61–21, amended; 1.274–9, –10, added; deductions
for entertainment use of business aircraft (TD 9597) 34,258
26 CFR 1.904–0, –1, –2, –7, –8, amended; 1.904(f)–0T, –1T,
–2T, –7T, –8T, removed; 1.904(g)–0, –1, –2, –3, amended;
1.904(g)–0T, –1T, –2T, –3T, removed; 1.502–9, amended,
1.1502–9T, removed; treatment of overall foreign and do-
mestic losses (TD 9595) 30,71
26 CFR 1.1502–13, amended; 1.1502–13T, removed;
602.101, amended; modification to consolidated return
regulation permitting an election to treat a liquidation of a
target, followed by a recontribution to a new target, as a
cross-chain reorganization (TD 9594) 29,57
26 CFR 1.7874–1, amended; 1.7874–1T, removed; 1.7874–2,
added; surrogate foreign corporations (TD 9591) 28,32
26 CFR 1.7874–3T, added; substantial business activities (TD
9592) 28,41
Reimbursed entertainment expenses (REG-101812–07) 34,311
Revisions to Rev. Proc. 98–32 (RP 33) 34,272
Revocations, exempt organizations (Ann 32) 35,325
Section 43 inflation adjustment, 2012 (Notice 49) 31,119
Substantial business activities (TD 9592) 28,41;
(REG–107889–12) 28,53
Surrogate foreign corporations (TD 9591) 28,32
Tax Conventions:
U.S.-Belgium agreement regarding taxes imposed by Bel-
gium municipalities (Ann 30) 34,314
U.S.-Canada agreement regarding OECD report on the attri-
bution of profits to permanent establishments (Ann 31) 34,
315
U.S.-Netherlands agreement of limited funds for mutual ac-
count (LFMA) (Ann 26) 27,8
Third party payer issues and reporting agents, revisions to Rev.
Proc. 2007–38 (RP 32) 34,267
Treatment of income from certain government bonds for pur-
poses of the passive foreign investment company (PFIC) rules
(Notice 45) 29,59
Treatment of overall foreign and domestic losses (TD 9595) 30,
71
2012–35 I.R.B.vAugust 27, 2012

SELF-EMPLOYMENT TAX
Background file document requests, processing fees, update to
Rev. Proc. 95–15 (RP 31) 33,256
August 27, 2012vi2012–35 I.R.B.

2012–35 I.R.B.August 27, 2012

August 27, 20122012–35 I.R.B.

Internal Revenue Service
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Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, P.O. Box 979050, St. Louis, MO 63197–9000. Please allow two to
six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE INTERNAL
REVENUE BU
LLETIN
If you have
comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be p
leased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov)
or write t
o the IRS Bulletin Unit, SE:W:CAR:MP:T:M:S, Washington, DC 20224.