Internal Revenue Bulletin 2010-13 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 201
0-13
March 29, 2010
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2010–9, page 461.
Interest rates; underpayments and overpayments.The
rates for interest determined under section 6621 of the Code
for the calender quarter beginning April 1, 2010, will be 4 per-
cent for overpayments (3 percent in the case of a corporation),
4 percent for underpayments, and 6 percent for large corpo-
rate underpayments. The rate of interest paid on the portion of
a corporate overpayment exceeding $10,000 will be 1.5 per-
cent.
Rev. Rul. 2010–10, page 461.
Fringe benefits aircraft valuation formula.The Standard
Industry Fare Level (SIFL) cents-per-mile rates and terminal
charge in effect for the first half of 2010 are set forth for
purposes of determining the value of noncommercial flights
on employer-provided aircraft under section 1.61–21(g) of the
regulations.
Rev. Proc. 2010–21, page 473.
Substitute tax forms and schedules.Requirements are set
forth for privately designed and printed federal tax forms and
conditions under which the Service will accept computer pre-
pared, and computer-generated tax forms and schedules. Rev.
Proc. 2009–17 superseded.
TAX CONVENTIONS
Rev. Proc. 2010–19, page 469.
This procedure provides guidance for taxpayers emigrating
from Canada who wish to make an election for U.S. federal
income tax purposes under paragraph 7 of Article XIII (Gains)
of the US-Canada Treaty with respect to property that is subject
to Canadian departure tax under Canada’s deemed disposition
rules. The effect of the election will be to relieve double taxa-
tion with respect to the property by either giving the taxpayer
an adjusted basis in the property for U.S. federal tax purposes
or the ability to accelerate U.S. federal income tax on such
property at the time of emigration from Canada.
ADMINISTRATIVE
Announcement 2010–17, page 515.
This announcement extends the comment period for Announce-
ment 2010–9 until June 1 to allow taxpayers and practition-
ers sufficient time to study the proposal and analyze its im-
pact. The announcement also clarifies the implementation date
for the schedule proposed by Announcement 2010–9 and re-
quests further comment.
Finding Lists begin on page ii.
Index for begins on page iv.

The IRS Mission
Provide Americ
a’s taxpayers top quality service by helping them
understand an
d meet their tax responsibilities and by applying
the tax law with
integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly 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.
March 29, 20102010–13 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 61.—Gross Income
Defined
26 CFR 1.61–21: Taxation of fringe benefits.
Fringe benefits aircraft valuation for-
mula.The Standard Industry Fare Level
(SIFL) cents-per-mile rates and terminal
charge in effect for the first half of 2010
are set forth for purposes of determining
the value of noncommercial flights on
employer-provided aircraft under section
1.61–21(g) of the regulations.
Rev. Rul. 2010–10
For purposes of the taxation of fringe
benefits under section 61 of the Inter-
nal Revenue Code, section 1.61–21(g) of
the Income Tax Regulations provides a
rule for valuing noncommercial flights
on employer-provided aircraft. Section
1.61–21(g)(5) provides an aircraft valua-
tion formula to determine the value of such
flights. The value of a flight is determined
under the base aircraft valuation formula
(also known as the Standard Industry Fare
Level formula or SIFL) by multiplying
the SIFL cents-per-mile rates applicable
for the period during which the flight was
taken by the appropriate aircraft multiple
provided in section 1.61–21(g)(7) and then
adding the applicable terminal charge. The
SIFL cents-per-mile rates in the formula
and the terminal charge are calculated by
the Department of Transportation and are
reviewed semi-annually.
The following chart sets forth the termi-
nal charge and SIFL mileage rates:
Period During Which
the Flight Is Taken
Terminal
Charge
SIFL Mileage
Rates
1/1/10 - 6/30/10
$40.28
Up to 500 miles
= $.2204 per mile
501-1500 miles
= $.1680 per mile
Over 1500 miles
= $.1615 per mile
DRAFTING INFORMATION
The principal author of this revenue
ruling is Kathleen Edmondson of the
Office of Division Counsel/Associate
Chief Counsel (Tax Exempt/Govern-
ment Entities). For further information
regarding this revenue ruling, contact
Ms. Edmondson at (202) 622–0047 (not a
toll-free call).
Section 6621.—Determina-
tion of Rate of Interest
26 CFR 301.6621–1: Interest rate.
Interest rates; underpayments and
overpayments.The rates for interest de-
termined under section 6621 of the Code
for the calender quarter beginning April 1,
2010, will be 4 percent for overpayments
(3 percent in the case of a corporation), 4
percent for underpayments, and 6 percent
for large corporate underpayments. The
rate of interest paid on the portion of a
corporate overpayment exceeding $10,000
will be 1.5 percent.
Rev. Rul. 2010–9
Section 6621 of the Internal Revenue
Code establishes the rates for interest
on tax overpayments and tax underpay-
ments. Under section 6621(a)(1), the
overpayment rate is the sum of the federal
short-term rate plus 3 percentage points
(2 percentage points in the case of a cor-
poration), except the rate for the portion
of a corporate overpayment of tax exceed-
ing $10,000 for a taxable period is the
sum of the federal short-term rate plus
0.5 of a percentage point. Under section
6621(a)(2), the underpayment rate is the
sum of the federal short-term rate plus 3
percentage points.
Section 6621(c) provides that for pur-
poses of interest payable under section
6601 on any large corporate underpay-
ment, the underpayment rate under section
6621(a)(2) is determined by substituting
“5 percentage points” for “3 percentage
points.” See section 6621(c) and section
301.6621–3 of the Regulations on Proce-
dure and Administration for the definition
of a large corporate underpayment and
for the rules for determining the appli-
cable date. Section 6621(c) and section
301.6621–3 are generally effective for
periods after December 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal
short-term rate for the first month in each
calendar quarter. Section 6621(b)(2)(A)
provides that the federal short-term rate
determined under section 6621(b)(1) for
any month applies during the first calen-
dar quarter beginning after that month.
Section 6621(b)(2)(B) provides that in de-
termining the addition to tax under section
6654 for failure to pay estimated tax for
any taxable year, the federal short-term
rate that applies during the third month
following the taxable year also applies
during the first 15 days of the fourth
month following the taxable year. Sec-
tion 6621(b)(3) provides that the federal
short-term rate for any month is the fed-
eral short-term rate determined during that
month by the Secretary in accordance with
section 1274(d), rounded to the nearest
full percent (or, if a multiple of
1
/2of 1
percent, the rate is increased to the next
highest full percent).
Notice 88–59, 1988–1 C.B. 546, an-
nounced that, in determining the quarterly
interest rates to be used for overpayments
2010–13 I.R.B.461March 29, 2010

and underpayments of tax under section
6621, the Internal Revenue Service will
use the federal short-term rate based on
daily compounding because that rate is
most consistent with section 6621 which,
pursuant to section 6622, is subject to daily
compounding.
The federal short-term rate determined
in accordance with section 1274(d) during
January 2010 is the rate published in Rev-
enue Ruling 2010–6, 2010–6 I.R.B. 387
to take effect beginning February 1, 2010.
The federal short-term rate, rounded to the
nearest full percent, based on daily com-
pounding determined during the month of
January 2010 is 1 percent. Accordingly, an
overpayment rate of 4 percent (3 percent
in the case of a corporation) and an under-
payment rate of 4 percent are established
for the calendar quarter beginning April 1,
2010. The overpayment rate for the por-
tion of a corporate overpayment exceeding
$10,000 for the calendar quarter beginning
April 1, 2010, is 1.5 percent. The under-
payment rate for large corporate underpay-
ments for the calendar quarter beginning
April 1, 2010, is 6 percent. These rates ap-
ply to amounts bearing interest during that
calendar quarter.
Under section 6621(b)(2)(B), the rate
for determining the addition to tax for fail-
ure to pay estimated tax for the first 15
days in April 2010 is the 4 percent rate that
applied to underpayments of tax during the
first calendar quarter in 2010.
Interest factors for daily compound in-
terest for annual rates of 1.5 percent, 3 per-
cent, 4 percent, and 6 percent are published
in Tables 8, 11, 13, and 17 of Rev. Proc.
95–17, 1995–1 C.B. 556, 562, 565, 567,
and 571.
Annual interest rates to be compounded
daily pursuant to section 6622 that apply
for prior periods are set forth in the tables
accompanying this revenue ruling.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Deborah Colbert-James of the Office
of Associate Chief Counsel (Procedure &
Administration). For further information
regarding this revenue ruling, contact Ms.
Colbert-James at (202) 622–8143 (not a
toll-free call).
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATE
In 1995–1 C.B.
DAILY RATE TABLE
Before Jul. 1, 1975
6%
Table 2, pg. 557
Jul. 1, 1975—Jan. 31, 1976
9%
Table 4, pg. 559
Feb. 1, 1976—Jan. 31, 19787%
Table 3, pg. 558
Feb. 1, 1978—Jan. 31, 19806%
Table 2, pg. 557
Feb. 1, 1980—Jan. 31, 198212%
Table 5, pg. 560
Feb. 1, 1982—Dec. 31, 198220%
Table 6, pg. 560
Jan. 1, 1983—Jun. 30, 198316%
Table 37, pg. 591
Jul. 1, 1983—Dec. 31, 198311%
Table 27, pg. 581
Jan. 1, 1984—Jun. 30, 198411%
Table 75, pg. 629
Jul. 1, 1984—Dec. 31, 198411%
Table 75, pg. 629
Jan. 1, 1985—Jun. 30, 1985
13%
Table 31, pg. 585
Jul. 1, 1985—Dec. 31, 1985
11%
Table 27, pg. 581
Jan. 1, 1986—Jun. 30, 198610%
Table 25, pg. 579
Jul. 1, 1986—Dec. 31, 19869%
Table 23, pg. 577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 1987—Mar. 31, 19878%21
575
9%23
577
Apr. 1, 1
987—Jun. 30, 1987
8%21
575
9%23
577
Jul. 1, 1987—Sep. 30, 19878%21
575
9%23
577
Oct. 1, 1987—Dec. 31, 19879%23
577
10%
25579
Jan. 1,
1988—Mar. 31, 1988
10%7362711%
75
629
Apr. 1, 1988—Jun. 30, 19889%71
625
10%73627
Jul. 1, 1988—Sep. 30, 19889%71
625
10%73627
Oct. 1
, 1988—Dec. 31, 1988
10%7362711%
75
629
Jan. 1, 1989—Mar. 31, 198910%
25579
11%27
581
March 29, 20104622010–13 I.R.B.

TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Apr. 1, 1989—Jun. 30, 198911%27
581
12%29
583
Jul. 1, 1989—Sep. 30, 198911%27
581
12%29
583
Oct. 1, 1989—De
c. 31, 1989
10%
25579
11%27
581
Jan. 1, 1990—Mar. 31, 199010%
25579
11%27
581
Apr. 1, 1990—Jun. 30, 199010%
25579
11%27
581
Jul. 1, 1990—S
ep. 30, 1990
10%
25579
11%27
581
Oct. 1, 1990—Dec. 31, 199010%
25579
11%27
581
Jan. 1, 1991—Mar. 31, 199110%
25579
11%27
581
Apr. 1, 1991—
Jun. 30, 1991
9%23
577
10%
25579
Jul. 1, 1991—Sep. 30, 19919%23
577
10%
25579
Oct. 1, 1991—Dec. 31, 19919%23
577
10%
25579
Jan. 1, 1992
—Mar. 31, 1992
8%696239%71
625
Apr. 1, 1992—Jun. 30, 19927%676218%69623
Jul. 1, 1992—Sep. 30, 19927%676218%69623
Oct. 1, 1992
—Dec. 31, 1992
6%
65
6197%67621
Jan. 1, 1993—Mar. 31, 19936%17
571
7%19
573
Apr. 1, 1993—Jun. 30, 19936%17
571
7%19
573
Jul. 1, 19
93—Sep. 30, 1993
6%17
571
7%19
573
Oct. 1, 1993—Dec. 31, 19936%17
571
7%19
573
Jan. 1, 1994—Mar. 31, 19946%17
571
7%19
573
Apr. 1, 19
94—Jun. 30, 1994
6%17
571
7%19
573
Jul. 1, 1994—Sep. 30, 19947%19
573
8%21
575
Oct. 1, 1994—Dec. 31, 19948%21
575
9%23
577
Jan. 1, 1995—Mar. 31, 1995
8%21
575
9%23
577
Apr. 1, 1995—Jun. 30, 1995
9%23
577
10%
25579
Jul. 1,
1995—Sep. 30, 1995
8%21
575
9%23
577
Oct. 1, 1995—Dec. 31, 1995
8%21
575
9%23
577
Jan. 1, 1996—Mar. 31, 19968%696239%71
625
Apr. 1, 1996—Jun. 30, 19967%676218%69623
Jul. 1
, 1996—Sep. 30, 1996
8%696239%71
625
Oct. 1, 1996—Dec. 31, 19968%696239%71
625
Jan. 1, 1997—Mar. 31, 19978%21
575
9%23
577
Apr.
1, 1997—Jun. 30, 1997
8%21
575
9%23
577
Jul. 1, 1997—Sep. 30, 19978%21
575
9%23
577
Oct. 1, 1997—Dec. 31, 19978%21
575
9%23
577
Jan
. 1, 1998—Mar. 31, 1998
8%21
575
9%23
577
Apr. 1, 1998—Jun. 30, 19987%19
573
8%21
575
Jul. 1, 1998—Sep. 30, 19987%19
573
8%21
575
Oct
. 1, 1998—Dec. 31, 1998
7%19
573
8%21
575
TAB
LE OF INTEREST RATES
FRO
M JANUARY 1, 1999 — PRESENT
NON
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RATETABLEPG
Jan. 1, 1999—Mar. 31, 19997%19
573
Apr. 1, 1999—Jun. 30, 19998%21
575
Jul
. 1, 1999—Sep. 30, 1999
8%21
575
Oct. 1, 1999—Dec. 31, 19998%21
575
Jan. 1, 2000—Mar. 31, 20008%69623
Ap
r. 1, 2000—Jun. 30, 2000
9%71
625
Jul. 1, 2000—Sep. 30, 20009%71
625
2010–13 I.R.B.463March 29, 2010

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RATETABLEPG
Oct. 1, 2000—Dec. 31, 20009%71
625
Jan. 1, 2001—Mar. 31, 20019%23
577
Apr. 1, 2001—Jun. 30, 20018%21
575
Jul. 1, 2001—Sep. 30, 20017%19
573
Oct. 1, 2001—Dec. 31, 20017%19
573
Jan. 1, 2002—Mar. 31, 20026%17
571
Apr. 1, 2002—Jun. 30, 20026%17
571
Jul. 1, 2002—Sep. 30, 20026%17
571
Oct. 1, 2002—Dec. 31, 20026%17
571
Jan. 1, 2003—Mar. 31, 2003
5%15569
Apr. 1, 2003—Jun. 30, 2003
5%15569
Jul. 1, 2003—Sep. 30, 2003
5%15569
Oct. 1, 2003—Dec. 31, 20034%13
567
Jan. 1, 2004—Mar. 31, 20044%61
615
Apr. 1, 2004—Jun. 30, 2004
5%
63617
Jul. 1, 2004—Sep. 30, 20044%61
615
Oct. 1, 2004—Dec. 31, 2004
5%
63617
Jan. 1, 2005—Mar. 31, 20055%15569
Apr. 1, 2005—Jun. 30, 2005
6%17
571
Jul. 1, 2005—Sep. 30, 2005
6%17
571
Oct. 1, 2005—Dec. 31, 2005
7%19
573
Jan. 1, 2006—Mar. 31, 20067%19
573
Apr. 1, 2006—Jun. 30, 20067%19
573
Jul. 1, 2006—Sep. 30, 20068%21
575
Oct. 1, 2006—Dec. 31, 20068%21
575
Jan. 1, 2007—Mar. 31, 20078%21
575
Apr. 1, 2007—Jun. 30, 20078%21
575
Jul. 1, 2007—Sep. 30, 20078%21
575
Oct. 1, 2007—Dec. 31, 20078%21
575
Jan. 1, 2008—Mar. 31, 20087%67621
Apr. 1, 2008—Jun. 30, 20086%
65
619
Jul. 1, 2008—Sep. 30, 2008
5%
63617
Oct. 1, 2008—Dec. 31, 20086%
65
619
Jan. 1, 2009—Mar. 31, 2009
5%15569
Apr. 1, 2009—Jun. 30, 20094%13
567
Jul. 1, 2009—Sep. 30, 20094%13
567
Oct. 1, 2009—Dec. 31, 20094%13
567
Jan. 1, 2010—Mar. 31, 20104%13
567
Apr. 1, 2010—Jun. 30, 20104%13
567
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 1999—Mar. 31, 19996%17
571
7%19
573
Apr. 1, 1999—Jun. 30, 19997%19
573
8%21
575
Jul
. 1, 1999—Sep. 30, 1999
7%19
573
8%21
575
Oct. 1, 1999—Dec. 31, 19997%19
573
8%21
575
Jan. 1, 2000—Mar. 31, 20007%676218%69623
March 29, 20104642010–13 I.R.B.

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Apr. 1, 2000—Jun. 30, 20008%696239%71
625
Jul. 1, 2000—Sep. 30, 20008%696239%71
625
Oct. 1, 2000—De
c. 31, 2000
8%696239%71
625
Jan. 1, 2001—Mar. 31, 20018%21
575
9%23
577
Apr. 1, 2001—Jun. 30, 20017%19
573
8%21
575
Jul. 1, 2001—S
ep. 30, 2001
6%17
571
7%19
573
Oct. 1, 2001—Dec. 31, 20016%17
571
7%19
573
Jan. 1, 2002—Mar. 31, 2002
5%15569
6%17
571
Apr. 1, 2002—
Jun. 30, 2002
5%15569
6%17
571
Jul. 1, 2002—Sep. 30, 2002
5%15569
6%17
571
Oct. 1, 2002—Dec. 31, 2002
5%15569
6%17
571
Jan. 1, 2003—
Mar. 31, 2003
4%13
5675%15569
Apr. 1, 2003—Jun. 30, 20034%13
5675%15569
Jul. 1, 2003—Sep. 30, 20034%13
5675%15569
Oct. 1, 2003
—Dec. 31, 2003
3%11
565
4%13
567
Jan. 1, 2004—Mar. 31, 20043%
59
6134%61
615
Apr. 1, 2004—Jun. 30, 20044%61
6155%
63617
Jul. 1, 200
4—Sep. 30, 2004
3%
59
6134%61
615
Oct. 1, 2004—Dec. 31, 20044%61
6155%
63617
Jan. 1, 20
05—Mar. 31, 2005
4%13
5675%15569
Apr. 1, 2005—Jun. 30, 20055%15569
6%17
571
Jul. 1, 2005—Sep. 30, 20055%15569
6%17
571
Oct. 1, 2
005—Dec. 31, 2005
6%17
571
7%19
573
Jan. 1, 2
006—Mar. 31, 2006
6%17
571
7%19
573
Apr. 1, 2006—Jun. 30, 20066%17
571
7%19
573
Jul. 1, 2006—Sep. 30, 20067%19
573
8%21
575
Oct. 1,
2006—Dec. 31, 2006
7%19
573
8%21
575
Jan. 1, 2007—Mar. 31, 20077%19
573
8%21
575
Apr. 1, 2007—Jun. 30, 20077%19
573
8%21
575
Jul. 1
, 2007—Sep. 30, 2007
7%19
573
8%21
575
Oct. 1, 2007—Dec. 31, 20077%19
573
8%21
575
Jan. 1, 2008—Mar. 31, 20086%
65
6197%67621
Apr.
1, 2008—Jun. 30, 2008
5%
636176%
65
619
Jul. 1, 2008—Sep. 30, 20084%61
6155%
63617
Oct. 1, 2008—Dec. 31, 2008
5%
636176%
65
619
Jan.
1, 2009—Mar. 31, 2009
4%13
5675%15569
Apr. 1, 2009—Jun. 30, 20093%11
565
4%13
567
Jul. 1, 2009—Sep. 30, 20093%11
565
4%13
567
Oct
. 1, 2009—Dec. 31, 2009
3%11
565
4%13
567
Jan. 1, 2010—Mar. 31, 20103%11
565
4%13
567
Apr. 1, 2010—Jun. 30, 20103%11
56
5
4%13
56
7
TABLE OF INTEREST RATES FOR
LA
RGE CORPORATE UNDERPAYMENTS
FR
OM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1991—Mar. 31, 199113%31
585
Apr. 1, 1991—Jun. 30, 199112%29
58
3
Ju
l. 1, 1991—Sep. 30, 1991
12%29
583
Oct. 1, 1991—Dec. 31, 199112%29
583
2010–13 I.R.B.465March 29, 2010

TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1992—Mar. 31, 199211%
75
629
Apr. 1, 1992—Jun. 30, 199210%73627
Jul. 1, 1992—Sep. 30, 199210%73627
Oct. 1, 1992—Dec. 31, 19929%71
625
Jan. 1, 1993—Mar. 31, 19939%23
577
Apr. 1, 1993—Jun. 30, 19939%23
577
Jul. 1, 1993—Sep. 30, 19939%23
577
Oct. 1, 1993—Dec. 31, 19939%23
577
Jan. 1, 1994—Mar. 31, 19949%23
577
Apr. 1, 1994—Jun. 30, 19949%23
577
Jul. 1, 1994—Sep. 30, 199410%
25579
Oct. 1, 1994—Dec. 31, 199411%27
581
Jan. 1, 1995—Mar. 31, 1995
11%27
581
Apr. 1, 1995—Jun. 30, 1995
12%29
583
Jul. 1, 1995—Sep. 30, 1995
11%27
581
Oct. 1, 1995—Dec. 31, 1995
11%27
581
Jan. 1, 1996—Mar. 31, 199611%
75
629
Apr. 1, 1996—Jun. 30, 199610%73627
Jul. 1, 1996—Sep. 30, 199611%
75
629
Oct. 1, 1996—Dec. 31, 199611%
75
629
Jan. 1, 1997—Mar. 31, 199711%27
581
Apr. 1, 1997—Jun. 30, 199711%27
581
Jul. 1, 1997—Sep. 30, 199711%27
581
Oct. 1, 1997—Dec. 31, 199711%27
581
Jan. 1, 1998—Mar. 31, 199811%27
581
Apr. 1, 1998—Jun. 30, 199810%
25579
Jul. 1, 1998—Sep. 30, 199810%
25579
Oct. 1, 1998—Dec. 31, 199810%
25579
Jan. 1, 1999—Mar. 31, 19999%23
577
Apr. 1, 1999—Jun. 30, 199910%
25579
Jul. 1, 1999—Sep. 30, 199910%
25579
Oct. 1, 1999—Dec. 31, 199910%
25579
Jan. 1, 2000—Mar. 31, 200010%73627
Apr. 1, 2000—Jun. 30, 200011%
75
629
Jul. 1, 2000—Sep. 30, 200011%
75
629
Oct. 1, 2000—Dec. 31, 200011%
75
629
Jan. 1, 2001—Mar. 31, 200111%27
581
Apr. 1, 2001—Jun. 30, 200110%
25579
Jul. 1, 2001—Sep. 30, 20019%23
577
Oct. 1, 2001—Dec. 31, 20019%23
577
Jan. 1, 2002—Mar. 31, 20028%21
575
Apr. 1, 2002—Jun. 30, 20028%21
575
Jul. 1, 2002—Sep. 30, 20028%21
575
Oct. 1, 2002—Dec. 30, 20028%21
575
Jan. 1, 2003—Mar. 31, 20037%19
573
Apr. 1, 2003—Jun. 30, 20037%19
573
Jul. 1, 2003—Sep. 30, 20037%19
573
Oct. 1, 2003—Dec. 31, 20036%17
571
Jan. 1, 2004—Mar. 31, 20046%
65
619
Apr. 1, 2004—Jun. 30, 20047%67621
Jul. 1, 2004—Sep. 30, 20046%
65
619
Oct. 1, 2004—Dec. 31, 20047%67621
Jan. 1, 2005—Mar. 31, 2005
7%19
573
Apr. 1, 2005—Jun. 30, 2005
8%21
575
Jul. 1, 2005—Sep. 30, 2005
8%21
575
Oct. 1, 2005—Dec. 31, 2005
9%23
577
Jan. 1, 2006—Mar. 31, 20069%23
577
March 29, 20104662010–13 I.R.B.

TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Apr. 1, 2006—Jun. 30, 20069%23
577
Jul. 1, 2006—Sep. 30, 200610%
25579
Oct. 1, 2006—Dec. 31, 200610%
25579
Jan. 1, 2007—Mar. 31, 200710%
25579
Apr. 1, 2007—Jun. 30, 200710%
25579
Jul. 1, 2007—Sep. 30, 200710%
25579
Oct. 1, 2007—Dec. 31, 200710%
25579
Jan. 1, 2008—Mar. 31, 20089%71
625
Apr. 1, 2008—Jun. 30, 20088%69623
Jul. 1, 2008—Sep. 30, 20087%67621
Oct. 1, 2008—Dec. 31, 20088%69623
Jan. 1, 2009—Mar. 31, 20097%19
573
Apr. 1, 2009—Jun. 30, 20096%17
571
Jul. 1, 2009—Sep. 30, 20096%17
571
Oct. 1, 2009—Dec. 31, 20096%17
571
Jan. 1, 2010—Mar. 31, 20106%17
571
Apr. 1, 2010—Jun. 30, 20106%17
571
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYM
ENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1995—Mar. 31, 19956.5%
18
572
Apr. 1, 1995—Jun. 30, 19957.5%
20
574
Jul. 1, 1995—Sep. 30, 19956.5%
18
572
Oct. 1, 1995—Dec. 31, 19956.5%
18
572
Jan. 1, 1996—Mar. 31, 1996
6.5%
66620
Apr. 1, 1996—Jun. 30, 1996
5.5%
64618
Jul. 1, 1996—Sep. 30, 1996
6.5%
66620
Oct. 1, 1996—Dec. 31, 1996
6.5%
66620
Jan. 1, 1997—Mar. 31, 1997
6.5%
18
572
Apr. 1, 1997—Jun. 30, 1997
6.5%
18
572
Jul. 1, 1997—Sep. 30, 1997
6.5%
18
572
Oct. 1, 1997—Dec. 31, 1997
6.5%
18
572
Jan. 1, 1998—Mar. 31, 1998
6.5%
18
572
Apr. 1, 1998—Jun. 30, 1998
5.5%
16
570
Jul. 1, 1998—Sep. 30, 1998
5.5%
16
570
Oct. 1, 1998—Dec. 31, 1998
5.5%
16
570
Jan. 1, 1999—Mar. 31, 1999
4.5%
14
568
Apr. 1, 1999—Jun. 30, 1999
5.5%
16
570
Jul. 1, 1999—Sep. 30, 1999
5.5%
16
570
Oct. 1, 1999—Dec. 31, 1999
5.5%
16
570
Jan. 1, 2000—Mar. 31, 2000
5.5%
64618
Apr. 1, 2000—Jun. 30, 2000
6.5%
66620
Jul. 1, 2000—Sep. 30, 2000
6.5%
66620
Oct. 1, 2000—Dec. 31, 2000
6.5%
66620
Jan. 1, 2001—Mar. 31, 2001
6.5%
18
572
Apr. 1, 2001—Jun. 30, 2001
5.5%
16
570
Jul. 1, 2001—Sep. 30, 2001
4.5%
14
568
Oct. 1, 2001—Dec. 31, 2001
4.5%
14
568
Jan. 1, 2002—Mar. 31, 2002
3.5%
12
566
2010–13 I.R.B.467March 29, 2010

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS E
XCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATETABLEPG
Apr. 1, 2002—Jun. 30, 2002
3.5%
12
566
Jul. 1, 2002—Sep. 30, 2002
3.5%
12
566
Oct. 1, 2002—Dec. 31, 2002
3.5%
12
566
Jan. 1, 2003—Mar. 31, 2003
2.5%
10
564
Apr. 1, 2003—Jun. 30, 2003
2.5%
10
564
Jul. 1, 2003—Sep. 30, 2003
2.5%
10
564
Oct. 1, 2003—Dec. 31, 2003
1.5%
8
562
Jan. 1, 2004—Mar. 31, 2004
1.5%56
610
Apr. 1, 2004—Jun. 30, 2004
2.5%58
612
Jul. 1, 2004—Sep. 30, 2004
1.5%56
610
Oct. 1, 2004—Dec. 31, 2004
2.5%58
612
Jan. 1, 2005—Mar. 31, 20052.5%
10
564
Apr. 1, 2005—Jun. 30, 20053.5%
12
566
Jul. 1, 2005—Sep. 30, 20053.5%
12
566
Oct. 1, 2005—Dec. 31, 20054.5%
14
568
Jan. 1, 2006—Mar. 31, 2006
4.5%
14
568
Apr. 1, 2006—Jun. 30, 2006
4.5%
14
568
Jul. 1, 2006—Sep. 30, 2006
5.5%
16
570
Oct. 1, 2006—Dec. 31, 2006
5.5%
16
570
Jan. 1, 2007—Mar. 31, 2007
5.5%
16
570
Apr. 1, 2007—Jun. 30, 2007
5.5%
16
570
Jul. 1, 2007—Sep. 30, 2007
5.5%
16
570
Oct. 1, 2007—Dec. 31, 2007
5.5%
16
570
Jan. 1, 2008—Mar. 31, 2008
4.5%
62616
Apr. 1, 2008—Jun. 30, 2008
3.5%
60614
Jul. 1, 2008—Sep. 30, 2008
2.5%58
612
Oct. 1, 2008—Dec. 31, 2008
3.5%
60614
Jan. 1, 2009—Mar. 31, 2009
2.5%
10
564
Apr. 1, 2009—Jun. 30, 2009
1.5%
8
562
Jul. 1, 2009—Sep. 30, 2009
1.5%
8
562
Oct. 1, 2009—Dec. 31, 2009
1.5%
8
562
Jan. 1, 2010—Mar. 31, 2010
1.5%
8
562
Apr. 1, 2010—Jun. 30, 2010
1.5%
8
562
March 29, 20104682010–13 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
26 CFR 1.601.602: Tax forms and instructions.
(Also Part I, Section 894; Part II, United
States—Canada Income Tax Convention.)
Rev. Proc. 2010–19
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance for individuals who emigrate from
Canadaandwishtomakeanelectionfor
U.S. federal income tax purposes under
paragraph 7 of Article XIII (Gains) of
the Convention between the United States
of America and Canada with Respect to
Taxes on Income and on Capital, signed on
September 26, 1980, as amended by Pro-
tocols signed on June 14, 1983, March 28,
1984, March 17, 1995, July 29, 1997, and
September 21, 2007 (the “Treaty”) with
respect to property that is subject to Cana-
dian departure tax under Canada’s deemed
alienation rules (the terms “alienation” and
“disposition” are used interchangeably
throughout this revenue procedure). This
guidance is limited to the circumstances
described in the revenue procedure and
therefore does not address other situations
in which the election under Article XIII(7)
may be available.
SECTION 2. BACKGROUND
Prior to amendment by the Protocol
signed on September 21, 2007 (the “2007
Protocol”), Article XIII(7) of the Treaty
provided that where, at any time, an indi-
vidual was treated for purposes of taxation
by one Contracting State as having dis-
posed of property and was taxed in that
State by reason thereof and the domes-
tic law of the other Contracting State at
such time deferred (but did not forgive)
taxation, that individual could elect on
his annual return of income for the year
of such disposition to be liable to tax in
the other Contracting State in that year as
if he had, immediately before that time,
sold and repurchased such property for an
amount equal to its fair market value at
that time.
Instances of double taxation arose un-
der the prior version of Article XIII(7).
Canadian residents who emigrated from
Canada to the United States and paid
Canadian departure tax on a deemed dis-
position of their property could not elect
to be liable for U.S. federal income tax
on a deemed disposition of their property
if they were not U.S. citizens immedi-
ately before they ceased to be residents
of Canada and would not otherwise have
been subject to U.S. federal income tax on
a disposition of the property.
Article XIII(7) of the Treaty was
amended by the 2007 Protocol (“new Arti-
cle XIII(7)”) to provide that where, at any
time, an individual is treated for purposes
of taxation by one Contracting State as
having disposed of a property and is taxed
in that State by reasonthereof, the individ-
ual may elect to be treated for the purposes
of taxation in the other Contracting State,
in the year that includes that time and all
subsequent years, as if the individual had,
immediately before that time, sold and
repurchased the property for an amount
equal to its fair market value at that time.
Thus, under new Article XIII(7) the
election is now available to any individual
who emigrates from Canada to the United
States, without regard to whether the in-
dividual was a U.S. citizen immediately
before ceasing to be a resident of Canada
(or would otherwise have been subject to
U.S. federal income tax on a disposition of
property). If the individual is not subject
toU.S.federalincometaxatthetimeof
emigration, the effect of the election will
be to give the individual an adjusted ba-
sis in the relevant property for U.S. fed-
eral income tax purposes equal to the fair
market value of the property as of the date
of the deemed disposition in Canada, with
the result that only post-emigration gain
will be subject to U.S. federal income tax
when there is a disposition of the prop-
erty. As was the case prior to the changes
made by the 2007 Protocol, if the Cana-
dian resident is also a U.S. citizen at the
time of his emigration from Canada or oth-
erwise would be subject to taxation in the
United States on a disposition of the prop-
erty (e.g., the property is real property situ-
ated in the United States (within the mean-
ing of Article XIII(3)(a) of the Treaty)),
the individual may elect to be liable to tax
in the United States in that year as if he
had, immediately before the date of emi-
gration, sold and repurchased such prop-
erty for an amount equal to its fair mar-
ket value (which means that the individ-
ual may elect to accelerate the U.S. fed-
eral income tax on the deemed disposi-
tion). In that case, relief from double taxa-
tion would be governed by the rules of Ar-
ticle XXIV (Elimination of Double Taxa-
tion) of the Treaty.
TheruleinnewArticleXIII(7)was
publicly announced in simultaneous press
releases issued on September 18, 2000,
by the Department of Finance Canada and
the U.S. Treasury Department. The press
releases stated that the new rule, if ap-
proved, would apply to changes in resi-
dence that took place on and after Septem-
ber 18, 2000. Consistent with the press re-
leases, paragraph 3(e) of Article 27 of the
2007 Protocol provides that new Article
XIII(7) will have effect with respect to dis-
positions of property that occur (including,
for greater certainty, those that are deemed
under the law of a Contracting State to oc-
cur) after September 17, 2000.
SECTION 3. SCOPE
This revenue procedure provides guid-
ance for taxpayers making an election
with respect to changes in residence for
taxpayers who emigrate from Canada
after September 17, 2000. Sections
4.01 and 4.02 provide procedures for
taxpayers who emigrate from Canada
on or after March 29, 2010. Sections
4.03 and 4.04 provide procedures for
taxpayers who emigrated from Canada
after September 17, 2000, and before
March 29, 2010, and who are not
time barred from making the election.
Section 4.05 provides rules for deemed
dispositions of multiple properties.
SECTION 4. ELECTION
PROCEDURES AND EFFECT OF
ELECTION
.01 Election for property of an
individual emigrating from Canada on
or after March 29, 2010, with respect
to which a disposition of the property
would have been taxable by the United
States (“Prospective elections for
property taxable by United States”)
(1) Subject to section 4.05 of this rev-
enue procedure (Deemed disposition of
multiple properties), the rules in this sec-
2010–13 I.R.B.469March 29, 2010

tion 4.01 apply, in the case of a change in
residence that occurs on or after March 29,
2010, to a Canadian emigrant’s property
that was subject to Canadian departure tax
under Canada’s deemed disposition rules
and with respect to which a disposition im-
mediately before theindividual’s change
of residence would have been subject to
tax by the United States in accordance
with the Treaty. Such property includes
(but is not limited to) the following:
(a) real property situated in the United
States (within the meaning of Article
XIII(3)(a) of the Treaty) with respect to
whichgainfromadispositionwouldbe
taxable by the United States pursuant to
Article XIII(1) of the Treaty,
(b) personal property forming part of
the business property of a permanent es-
tablishment which a resident of Canada
has or had (within the twelve-month period
preceding the date of disposition) in the
United States, with respect to which gain
from a disposition would be taxable by the
United States pursuant to Article XIII(2) of
the Treaty, and
(c) property with respect to which gain
from a disposition would be taxable by
the United States pursuant to paragraph 2
of Article XXIX (Miscellaneous Rules) of
the Treaty (i.e.,the saving clause).
(2) If an individual with property that
is subject to the rules of this section 4.01
makes an election pursuant to new Article
XIII(7) to be treatedas having disposed of
and reacquired such property, the individ-
ual must recognize gain (and, if permitted
by section 4.05 of this revenue procedure,
loss) in the taxable year of the deemed dis-
position. If the individual is not a U.S.
citizen at the time of the deemed disposi-
tion (but is still a resident of Canada), alle-
viation of double taxation is governed by
paragraph 2 of Article XXIV (Elimination
of Double Taxation) of the Treaty. If the
individual is both a U.S. citizen and a res-
ident of Canada at the time of the deemed
disposition, however, alleviation of double
taxation is governed by the rules of para-
graph 4 of Article XXIV of the Treaty.
(3) The individual must make the elec-
tion by reporting the deemed disposition
on the individual’s timely filed U.S. fed-
eral income tax return for the individual’s
first taxable year ending after the individ-
ual’s change of residence and attaching a
Form 8833,Treaty Based Return Position
Disclosure under section 6114 or 7701(b)
of the Internal Revenue Code, stating that
the individual is making an election to pay
U.S. federal income tax on a deemed dis-
position of property pursuant to new Ar-
ticle XIII(7). The individual must attach
documentation establishing the fair mar-
ket value of the property, as determined
under Canada’s deemed disposition rules,
and confirming that gain (and, if permit-
ted by section 4.05 of this revenue proce-
dure, loss) was recognized and properly re-
ported for Canadian tax purposes for the
taxable year of the deemed disposition.
The individual must retain copies of the
Form 8833 and accompanying documen-
tation (including the information reported
to Canada) as required pursuant to section
6001 of the Code and the regulations pro-
mulgated thereunder.
.02 Election for property of an
individual emigrating from Canada on
or after March 29, 2010, with respect
to which a disposition of the property
would not have been taxable by the
United States (“Prospective elections
forpropertynottaxablebyUnited
States”)
(1) Subject to section 4.05 of this
revenue procedure (Deemed disposition
of multiple properties), in the case of a
change of residence that takes place on or
after March 29, 2010, the rules in this sec-
tion 4.02 apply to a Canadian emigrant’s
property that was subject to Canadian
departure tax under Canada’s deemed dis-
position rules but with respect to which
a disposition immediately before the in-
dividual’s change of residence would not
have been subject to U.S. federal income
tax.
(2) If an individual with property that
is subject to the rules of this section 4.02
elects for U.S. federal income tax purposes
to be treated as having disposed of and
reacquired such property pursuant to new
Article XIII(7), the individual takes an ad-
justed basis in such property for U.S. fed-
eral income tax purposes equal to the fair
market value of the property as of the date
of the deemed disposition under Canada’s
deemed disposition rules if the individual
complies with the requirements of para-
graph (3) of this section 4.02. An indi-
vidual who makes this election will not be
subject to U.S. federal income tax, solely
as a result of the election, with respect to
the deemed disposition of such property.
(3) The individual must make the elec-
tion by reporting the deemed disposition
on the individual’s timely filed U.S. fed-
eral income tax return for the individual’s
first taxable year ending after the individ-
ual’s change of residence and by attaching
a Form 8833 to such return, indicating
on the form that for U.S. federal income
tax purposes the individual is electing
pursuant to new Article XIII(7) to take
an adjusted basis in the property equal
to its fair market value as of the date of
the deemed disposition under Canada’s
deemed disposition rules. The individual
must attach the documentation described
in section 4.01(3) of this revenue proce-
dure and must retain copies of the Form
8833 and accompanying documentation
(including the information reported to
Canada) as required pursuant to section
6001 of the Code and the regulations pro-
mulgated thereunder.
.03 Election for property of an
individual emigrating from Canada
after September 17, 2000, and before
March 29, 2010, with respect to which
a disposition of the property would
have been taxable by the United States
(“Retroactive elections for property
taxable by United States”)
(1) Subject to section 4.05 of this
revenue procedure (Deemed disposition
of multiple properties), in the case of a
change of residence that took place after
September 17, 2000, and before March 29,
2010, the rules in this section 4.03 apply to
a Canadian emigrant’s property that was
subject to Canadian departure tax under
Canada’s deemed disposition rules and
with respect to which a disposition imme-
diately before the individual’s change of
residence would have been subject to tax
by the United States in accordance with
the Treaty. See section 4.01(1) of this
revenue procedure for examples of such
property.
(2) If an individual with property that
is subject to the rules of this section 4.03
makes an election pursuant to new Article
XIII(7) to be treated as having disposed of
andreacquiredsuchpropertyimmediately
prior to emigration, the individual must
recognize gain (and, if permitted by sec-
tion 4.05 of this revenue procedure, loss)
March 29, 20104702010–13 I.R.B.

in the taxable year of the deemed dispo-
sition. If the individual was not a U.S.
citizen at the time of the deemed disposi-
tion (but was still a resident of Canada),
alleviation of double taxation is governed
by paragraph 2 of Article XXIV (Elimi-
nation of Double Taxation) of the Treaty.
If the individual was both a U.S. citizen
and a resident of Canada at the time of
the deemed disposition, however, allevia-
tion of double taxation is governed by the
rules of paragraph 4 of Article XXIV of the
Treaty.
(3) The individual must make the elec-
tion by reporting the deemed disposition
on an amended federal income tax return
for the open taxable year that includes the
date of emigration and attaching a Form
8833 stating that the individual is making
an election to pay U.S. tax on a deemed
disposition of property in the taxable year
that includes the date of emigration pur-
suant to new Article XIII(7). Thus, an indi-
vidual may make an election with retroac-
tive effect only if the statute of limita-
tions under 6511 of the Internal Revenue
Code is open. Appropriate adjustments
must be made to avoid duplicate benefits
in years with respect to which the statute
of limitations on assessment and collec-
tion, as set out under section 6501 through
6504, is closed. If the statute of limita-
tions is closed with respect to the year of
the deemed disposition, then the individ-
ual is time barred from making an elec-
tion with respect to such property (how-
ever, the individual may still be able to
make the election with respect to prop-
erty described in section 4.04 (Retroac-
tive elections for property not taxable by
United States), subject to section 4.05(2)
of this revenue procedure (Deemed dispo-
sitions of multiple properties)). The indi-
vidual must attach the documentation de-
scribed in section 4.01(3) of this revenue
procedure and must retain copies of the
Form 8833 and accompanying documen-
tation (including the information reported
to Canada) as required pursuant to section
6001 of the Code and the regulations pro-
mulgated thereunder.
(4) If, prior to March 29, 2010, an in-
dividual who had property the disposition
of which would have been subject to tax
by the United States at the time of emigra-
tion made an election with respect to such
property under Article XIII(7) by attach-
ing a Form 8833 or similar statement to a
timely filed federal income tax return for
the taxable year that included the date of
the deemed disposition, the IRS will not
challenge such election (and the individual
is not required to make a new election un-
der this revenue procedure) provided that
the election is not inconsistent with the
principles set out in this revenue procedure
and that the individual has filed all U.S.
federal income tax returns and information
returns consistent with such election.
.04 Election for property of an
individual emigrating from Canada
after September 17, 2000, and before
March 29, 2010, with respect to which
a disposition of the property would not
have been taxable by the United States
(“Retroactive elections for property not
taxable by United States”)
(1) Subject to section 4.05 of this rev-
enue procedure (Deemed dispositions
of multiple properties), in the case of
a change of residence that took place
after September 17, 2000, and before
March 29, 2010, the rules in this section
4.04 apply to a Canadian emigrant’s
property that was subject to Canadian
departure tax under Canada’s deemed
disposition rules but with respect to which
a disposition immediately before the
individual’s change of residence would
not have been taxable by the United States.
(2) If an individual with property that
is subject to the rules of this section 4.04
elects for U.S. federal income tax pur-
poses to be treated as having disposed of
and reacquired such property pursuant to
new Article XIII(7), the individual takes
an adjusted basis in such property for
U.S. federal income tax purposes equal
to the fair market value of the property
as of the date of the deemed disposition
under Canada’s deemed disposition rules,
if he complies with the requirements of
paragraph (3) of this section 4.04. An indi-
vidual who makes this election will not be
subject to U.S. federal income tax, solely
as a result of the election, with respect to
the deemed disposition of such property.
(3) If the individual had only property
described in section 4.04(1) of this revenue
procedure (and did not have property de-
scribed in section 4.03(1) of this revenue
procedure (Retroactive elections for prop-
erty taxable by United States)), the indi-
vidual must make the election by attach-
ing a Form 8833 to the individual’s first
timely filed U.S. federal income tax re-
turn filed after March 29, 2010, indicating
on the form that for U.S. federal income
tax purposes the individual is electing pur-
suant to new Article XIII(7) to take an ad-
justed basis in the property equal to the fair
market value of the property as of the date
of the deemed disposition under Canada’s
deemed disposition rules. The individ-
ual must attach documentation establish-
ing the fair market value of the property, as
determined under Canada’s deemed dispo-
sition rules, and confirming that gain (and,
if permitted by section 4.05 of this revenue
procedure, loss) wasrecognized and prop-
erly reported for Canadian tax purposes for
the taxable year of the deemed disposition.
The individual must attach the documen-
tation described in section 4.01(3) of this
revenue procedure and must retain copies
of the Form 8833 and accompanying doc-
umentation (including the information re-
ported to Canada) as required pursuant to
section 6001 of the Internal Revenue Code
and the regulations promulgated thereun-
der. The individual must file amended
U.S. federal income tax returns for any
prior taxable years with respect to which
the statute of limitations on claiming a
credit or refund, as set out under section
6511 of the Internal Revenue Code, is open
and that are affected by the election (e.g.,
the year of disposition of property subject
to the rules of this section 4.04). Appro-
priate adjustments must be made to avoid
duplicate benefits in years with respect to
which the statute of limitations on assess-
ment and collection, as set out under sec-
tion 6501 through 6504, is closed.
(4) If, in addition to property described
in section 4.04(1) of this revenue proce-
dure, the individual had property described
in section 4.03(1) of this revenue proce-
dure (Retroactive elections for property
taxable by United States), the Form 8833
included with the election made in accor-
dance with section 4.03(4) must include
the property described in section 4.04(1),
and no separate Form 8833 needs to be
filed under this section 4.04(4).
(5) If an individual with property that
is subject to the rules of this section 4.04
has disposed of any such property prior to
making the election provided in new Ar-
ticle XIII(7), that individual may make an
election with retroactive effect and file an
amended tax return to reflect the adjusted
2010–13 I.R.B.471March 29, 2010

basis of such property, provided the statute
of limitations under 6511 of the Internal
Revenue Code is open for the year of the
disposition. If the statute of limitations is
closed with respect to the year of the dispo-
sition of the property, then the individual is
time barred from making an election with
respect to such property (however, the in-
dividual can still make the election with re-
spect to the remaining property, subject to
section 4.05(2) of this revenue procedure
(Deemed dispositions of multiple proper-
ties)). If the disposition of properties de-
scribed in section 4.04(1) in a year with
respect to which the statute of limitations
has closed resulted in a net loss for U.S.
federal income tax purposes, the individual
may make an election with respect to the
individual’s remaining property or proper-
tiesdescribedinsection4.04onlyifthein-
dividual makes appropriate adjustments to
the adjusted basis of the remaining prop-
erty or properties to reflect the net loss
that was taken into account in the year for
which the statute of limitations is closed,
using any reasonable method to allocate
the adjustment. For example, the step up
in basis for the gain properties will be re-
duced by the amount of loss that was rec-
ognized with respect to the property that
was disposed of in the closed year.
(6) If, prior to March 29, 2010, an in-
dividual who had property the disposition
of which would not have been subject to
tax by the United States at the time of em-
igration made an election with respect to
such property under Article XIII(7) by at-
taching a Form 8833 or similar statement
to the first timely filed U.S. federal in-
come tax return filed after the date of the
deemed disposition, the IRS will not chal-
lenge such election (and the individual is
not required to make a new election under
this revenue procedure) provided that the
election is not inconsistent with the princi-
ples set out in this revenue procedure and
that the individual has filed all U.S. federal
income tax returns and information returns
consistent with such election.
.05 Deemed disposition of multiple
properties
(1) If an individual is deemed under
Canadian law to have disposed of multi-
ple properties immediately before ceasing
to be a resident of Canada with respect to
which gain or loss is recognized for Cana-
dian tax purposes in the year of the deemed
disposition, the individual may not make
an election pursuant to new Article XIII(7)
unless the deemed disposition of all such
properties results in a net gain for Cana-
dian tax purposes. If the deemed disposi-
tion of all such properties results in a net
loss for Canadian tax purposes, the indi-
vidual may not make any election under
new Article XIII(7) with respect to any of
the properties. Such an individual may
neither claim an adjusted basis for U.S.
federal income tax purposes with respect
to any of the properties nor recognize gain
or loss for U.S. federal income tax pur-
poses in the year of the deemed disposition
in Canada with respect to any of the prop-
erties.
(2) If an individual is deemed under
Canadian law to have disposed of multi-
ple properties, any election under new Ar-
ticle XIII(7) must be made with respect to
all such properties. The individual must
prepare and file a Form 8833 listing each
such property. In the case of property sub-
ject to the rules of section 4.04 (Retroac-
tive elections for property not taxable by
United States), if the individual has dis-
posed of property with respect to which
that individual is time barred from mak-
ing the election because the statute of lim-
itations under section 6511 of the Internal
Revenue Code has closed, the individual
may still make an election with respect to
all of the individual’s remaining property
described in section 4.04, provided that ap-
propriate adjustments are made to the ad-
justed basis of the remaining property as
set forth under section 4.04(5). If an indi-
vidual is time-barred from making an elec-
tion with respect to property subject to the
rules of section 4.03 (Retroactive elections
for property taxable by the United States),
the disposition of which would have re-
sulted in a net loss at the time of emigra-
tion, and makes an election with respect to
property subject to the rules of section 4.04
(Retroactive elections for property not tax-
able by the United States), the individual
must make appropriate adjustments to the
adjusted basis of the property that is sub-
ject to the rules of section 4.03.
.06 Irrevocability of election
An election made under this revenue
procedure cannot be revoked except with
the consent of the Commissioner.
SECTION 5. EFFECTIVE DATE
The effective date of this revenue pro-
cedure is March 29, 2010, the date of its
publication in the Internal Revenue Bul-
letin.
SECTION 6. PAPERWORK
REDUCTION ACT
The collection of information con-
tained in this revenue procedure has been
reviewed and approved by the Office
of Management and Budget in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) and is reported on Form
8833 under control number 1545–1354.
SECTION 7. DRAFTING
INFORMATION
The principal authors of this rev-
enue procedure are M. Grace Fleeman
and Lara A. Banjanin of the Office of
Associate Chief Counsel (International).
For further information regarding
this revenue procedure, contact
Lara A. Banjanin at (202) 622–3880 (not
a toll-free call).
March 29, 20104722010–13 I.R.B.

Note.This revenue procedure will be reproduced as the next revision of IRS Publication 1167, General Rules and Specifications for
Substitute Forms and Schedules.
Rev. Proc. 2010–21
TABLE OF CONTENTS
PART 1 – INTRODUCTION TO SUBSTITUTE FORMS
SECTION 1.1 – OVERVIEW OF REVENUE PROCEDURE 2010–21...................................................... 474
SECTION 1.2 – IRS CONTACTS..................................................................................... 475
SECTION 1.3 – WHAT’S NEW...................................................................................... 476
SECTION 1.4 – DEFINITIONS...................................................................................... 477
SECTION 1.5 – AGREEMENT...................................................................................... 478
PART 2 – GENERAL GUIDELINES FOR SUBMISSIONS AND APPROVALS
SECTION 2.1 – GENERAL SPECIFICATIONS FOR APPROVAL........................................................ 479
SECTION 2.2 – HIGHLIGHTS OF PERMITTED CHANGES AND REQUIREMENTS...................................... 481
SECTION 2.3 – VOUCHERS........................................................................................ 481
SECTION 2.4 – RESTRICTIONS ON CHANGES...................................................................... 483
SECTION 2.5 – GUIDELINES FOR OBTAINING IRS APPROVAL....................................................... 484
SECTION 2.6 – OFFICE OF MANAGEMENT AND BUDGET (OMB) REQUIREMENTS FOR ALL
SUBSTITUTE FORMS
................................................................................. 486
PART 3 – PHYSICAL ASPECTS AND REQUIREMENTS
SECTION 3.1 – GENERAL GUIDELINES FOR SUBSTITUTE FORMS................................................... 487
SECTION 3.2 – PAPER............................................................................................. 489
SECTION 3.3 – PRINTING......................................................................................... 490
SECTION 3.4 – MARGINS.......................................................................................... 491
SECTION 3.5 – EXAMPLES OF APPROVED FORMATS............................................................... 492
SECTION 3.6 – MISCELLANEOUS INFORMATION FOR SUBSTITUTE FORMS......................................... 492
PART 4 – ADDITIONAL RESOURCES
SECTION 4.1 – GUIDANCE FRO
M OTHER REVENUE PROCEDURES
................................
.................. 493
SECTION 4.2 – ELECTRONIC TAX PRODUCTS...................................................................... 494
SECTION 4.3 – IRS TAX PRODUCTS ON DVD (PUBLICATION 1796).................................................... 494
PART 5 – REQUIREMENTS FOR SPECIFIC TAX RETURNS
SECTION 5.1 – TAX RETURNS (FORMS 1040, 1040A, 1120, ETC.)....................................................... 494
SECTION 5.2 – CHANGES PERMITTED TO GRAPHICS (FORMS 1040A AND 1040
)
....................
.................. 495
SECTION 5.3 – CHANGES PERMITTED TO FORM 1040A GRAPHICS.................................................. 496
2010–13 I.R.B.473March 29, 2010

SECTION 5.4 – CHANGES PERMITTED TO FORM 1040 GRAPHICS................................................... 497
PART 6 – FORMAT AND CONTENT OF SUBSTITUTE RETURNS
SECTION 6.1 – ACCEPTABLE FORMATS FOR SUBSTITUTE FORMS AND SCHEDULES................................. 498
SECTION 6.2 – ADDITIONAL INSTRUCTIONS FOR ALL FORMS...................................................... 499
PART 7 – MISCELLANEOUS FORMS AND PROGRAMS
SECTION 7.1 – SPECIFICATIONS FOR SUBSTITUTE SCHEDULES K-1................................................. 500
SECTION 7.2 – PROCEDURES FOR PRINTING IRS ENVELOPES...................................................... 505
SECTION 7.3 – GUIDELINES FOR SUBSTITUTE FORMS 8655......................................................... 506
PART 8 – ALTERNATIVE METHODS OF FILING
SECTION 8.1 – FORMS FOR ELECTRONICALLY FILED RETURNS.................................................... 507
SECTION 8.2 – EFFECT ON OTHER DOCUMENTS................................................................... 508
EXHIBITS
Exhibit A-1 – Schedule A (Preferred Format)........................................................................... 509
Exhibit A-2 – Schedule A (Acceptable Format).......................................................................... 510
Exhibit B-1 – Form 2106-EZ (Preferred Format)........................................................................ 511
Exhibit B-2 – Form 2106-EZ (Acceptable Format)....................................................................... 512
Exhibit C – Software Developers Voucher.............................................................................. 513
Exhibit D – Sample Check Sheet...................................................................................... 514
Part 1
Introduction to Substitute Forms
Section 1.1 – Overview of Revenue Procedure 2010–21
1.1.1
Purpose
The purpose of this revenue procedure is to provide guidelines and general requirements
for the development, printing, and approval of substitute tax forms. Approval will be based on
these guidelines. After review and approval,submitted forms will beaccepted as substitutes
for official IRS forms.
1.1.2
Unique Forms
Certain unique specialized forms require the use of other additional publications to supple-
ment this publication. See Part 4.
1.1.3
Scope
The IRS accepts quality substitute tax forms that are consistent with the official forms and
have no adverse impact on our processing. The IRS Substitute Forms Unit administers the for-
mal acceptance and processing of these forms nationwide. While this program deals primarily
with paper documents, it also reviews for approval other processing and filing forms such as
those used in electronic filing.
March 29, 20104742010–13 I.R.B.

Only those substitute forms that comply fully with these requirements are acceptable. This
revenue procedure is updated as required to reflect pertinent tax year form changes and to meet
processing and/or legislative requirements.
1.1.4
Forms Covered by This Revenue
Procedure
The following types of forms are covered by this revenue procedure:
•IRS tax forms and their related schedules,
•Worksheets as they appear in instruction packages,
•Applications for permission to file returnselectronically and forms used as required docu-
mentation for electronically filed returns,
•Powers of Attorney,
•Over-the-counter estimated tax payment vouchers, and
•Forms and schedules relating to partnerships, exempt organizations, and employee plans.
1.1.5
Forms Not Covered by
This Revenue Procedure
The following types of forms are not covered by this revenue procedure:
•W-2 and W-3 (see Publication 1141 for information on these forms),
•W-2c and W-3c (see Publication 1223 for information on these forms),
•941andScheduleB(Form941)(seePublication4436forinformationontheseforms),
•1096, 1098 series, 1099 series, 5498 series,W-2G, 1042-S, and 8935 (see Publication 1179
for information on these forms),
•Federal Tax Deposit (FTD) coupons, which may not be reproduced,
•Forms 1040-ES (OCR) and 1041-ES (OCR), which may not be reproduced,
•Forms 5500, 5500-EZ, 5500-SF, and associated schedules (see the Department of Labor
website atw
ww.dol.govfor information on these forms),
•Forms 5307, 8717, and 8905, bar-coded forms requiring separate approval,
•FinCEN forms, TD F 90-22 forms, and Form 8300,
•Requests for information or documentation initiated by the IRS,
•Forms used internally by the IRS,
•State tax forms,
•Forms developed outside the IRS, and
•General Instructions and Specific Instructions (not reviewed by the Substitute Forms Pro-
gram Unit).
Section 1.2 – IRS Contacts
1.2.1
Where To Send
Substitute Forms
Send your substitute forms for approval to the following offices (do not send forms with
taxpayer data):
FormOffice and Address
All FinCEN family of forms, TD F 90-22
family of forms, and Form 8300
Enterprise Computing Center — Detroit
(ECC-D)
BSA Compliance Branch
P.O. Box 32063
Detroit, MI 48232-0063
5500, 5500-EZ, 5500-SF, and Schedules for
Form 5500
Check EFAST information at the
Department of Labor’s website at
w
ww.efast.dol.gov
5307, 8717, and 8905
J
ennifer.L.Frederick@irs.gov
2010–13 I.R.B.475March 29, 2010

FormOffice and Address
Software developer vouchers (See Sections
2.3.7 - 2.3.9)
Internal Revenue Service
Attn: Doris Bethea, C5-163
5000 Ellin Rd.
Lanham, MD 20706
D
oris.E.Bethea@irs.govor
B
renda.C.Martinez@irs.gov
All others (except W-2, W-2c, W-3, W-3c,
941, Schedule B (Form 941), 1096, 1098,
1099, 5498, W-2G, 1042-S, and 8935)
covered by this publication
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue, NW
Room 6526
Washington, DC 20224
In addition, the Substitute Forms Program Unit can be contacted via email at
S
ubstituteforms@irs.gov. Please include “PDF Submissions” on the subject line.
For questions about Forms W-2 and W-3, refer to IRS Publication 1141, General Rules
and Specifications for Substitute Forms W-2 and W-3. For Forms W-2c and W-3c, refer to
IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.
For Forms 941 and Schedule B (Form 941), refer to IRS Publication 4436, General Rules
and Specifications for Substitute Form 941 and Schedule B (Form 941). For Forms 1096,
1098, 1099, 5498, W-2G, 1042-S, and 8935, referto IRS Publication 1179, General Rules and
Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, 1042-S, and 8935.
Section 1.3 – What’s New
1.3.1
What’s New
The following changes have been made to the Revenue Procedure for tax year 2009.
•The table for “Where To Send Substitute Forms” (Section 1.2.1) has been updated.
•Posting schedule reevaluated.We develop the original estimated release dates on the
posting schedule to spread our workload and the release of our products over a period of
a few months because we can’t, of course, release all our products in a short timeframe.
Many products are scheduled for release in October, November, or early December even
though most of them aren’t needed before December 31; they are scheduled earlier just to
spread out the workload. Once products were delayed past their original estimated release
dates, the posting schedule is updated automatically each time a new report is run, adding
7-10 days to the target release date, regardless of whether the product is very close or very
far from being released (it would be impossible to try to determine dates individually for
over 1,000 products). This gives false and misleading information and creates false ex-
pectations. For these reasons and to reduce confusion, we are considering whether to post
the posting schedule next year at all, or topost it without ever updating it, or to provide
some of the information on the posting schedule through means other than posting it on
IRS.gov. Sections in this document that referred to the posting schedule have been deleted
until further notice.
•New section 6.2.2,“Required Software ID Number on Computer Prepared Substitutes”
states that the IRS 8-digite-filesoftware identification number for the software that creates
computer-generated substitute forms must be included on the substitute forms.
•Section 5.4.7 was updated to reflect changes to the 2009 Form 1040.
•We made editorial changes as needed.
March 29, 20104762010–13 I.R.B.

Section 1.4 – Definitions
1.4.1
Substitute Form
A tax form (or related schedule) that differsinanywayfromtheofficialversionandis
intended to replace the form that is printed and distributed by the IRS. This term also covers
those approved substitute forms exhibited in this revenue procedure.
1.4.2
Printed/Preprinted
Form
A form produced using conventional printing processes, or a printed form which has been
reproduced by photocopying or a similar process.
1.4.3
Preprinted Pin-Fed
Form
A printed form that has marginal perforations for use with automated and high-speed print-
ing equipment.
1.4.4
Computer Prepared
Substitute Form
A preprinted form in which the taxpayer’s tax entry information has been inserted by a
computer, computer printer, or other computer-type equipment.
1.4.5
Computer Generated Substitute
Tax Return or Form
A tax return or form that is entirely designed and printed using a computer printer such as a
laser printer, etc., on plain white paper. This return or form must conform to the physical layout
of the corresponding IRS form, although the typeface may differ. The text should match the
text on the officially printed form as closely aspossible. Condensed text and abbreviations will
be considered on a case-by-case basis.
Exception.All jurats (perjury statements) must be reproduced verbatim.
1.4.6
Manually Prepared
Form
A preprinted reproduced form in which the taxpayer’s tax entry information is entered by
an individual using a pen, pencil, typewriter, or other non-automated equipment.
1.4.7
Graphics
Parts of a printed tax form that are not tax amount entries or required text. Examples of
graphics are line numbers, captions, shadings,special indicators, borders, rules, and strokes
created by typesetting, photographics, photocomposition, etc.
1.4.8
Acceptable Reproduced
Form
A legible photocopy of an original form.
1.4.9
Supporting Statement
(Supplemental Schedule)
A document providing detailed information to support a line entry on an official or approved
substitute form and filed with (attached to) a tax return.
Note.A supporting statement is not a tax form and does not take the place of an official
form.
2010–13 I.R.B.477March 29, 2010

1.4.10
Specific Form Terms
The following specific terms are used throughout this revenue procedure in reference to all
substitute forms: format, sequence, line reference, item caption, and data entry field.
1.4.11
Format
The overall physical arrangement and general layout of a substitute form.
1.4.12
Sequence
Sequence is an integral part of the total format requirement. The substitute form should
show the same numeric and logical placement order of data, as shown on the official form.
1.4.13
Line Reference
The line numbers, letters, or alphanumericsused to identify each captioned line on an offi-
cial form. These line references are printedto the immediate left of each caption and/or data
entry field.
1.4.14
Item Caption
The text on each line of a form, which identifies the data required.
1.4.15
Data Entry Field
Designated areas for the entry of data such as dollar amounts, quantities, responses and
checkboxes.
1.4.16
Advance Draft
A draft version of a new or revised form may be posted to the IRS website for information
purposes. Substitute forms may be submitted based on these advance drafts, but any submit-
ter that receives forms approval based on these early drafts is responsible for monitoring and
revising forms to mirror any revisions in the final forms provided by the IRS.
1.4.17
Approval
Generally, approval could be in writing or assumed after 20 business days from our receipt
for forms that have not been substantially changed by the IRS. Also, this does not apply to
newly created or substantially revised IRS forms.
Section 1.5 – Agreement
1.5.1
Important Stipulation
of This Revenue Procedure
Any person or company who uses substitute forms and makes all or part of the changes
specified in this revenue procedure agrees to the following stipulations.
•The IRS presumes that any required changes are made in accordance with these procedures
and will not be disruptive to the processing of the tax return.
•Should any of the changes be disruptive to the IRS’s processing of the tax return, the person
or company agrees to accept the determination of the IRS as to whether the form may
continue to be filed.
•The person or company agrees to work with the IRS in correcting noted deficiencies. No-
tification of deficiencies may be made by any combination of fax, letter, email, or phone
contact and may include the request for there-submission of unacceptable forms.
March 29, 20104782010–13 I.R.B.

1.5.2
Response Policy
and Stipulations
The Substitute Forms Unit (the Unit) will email confirmation, as much as possible, of receipt
of your forms submission. Your submission canbe considered approved if you do not receive
a response from the Unit within20 business days of the receipt date. If the Unit anticipates
problems in completing the review of your submission within the 20 business day period, the
Unit will send an interim email notifyingyou of the extended period for review.
Once the substitute forms have been approved by the Substitute Forms Unit, you can release
them after the final versions of the forms have been issued by the IRS. Before releasing the
forms, you are responsible for updating forms approved as draft and for making form changes
we requested.
The policy has the following stipulations.
•This 20-day policy applies to electronic submissions only. It does not apply to substitute
forms submitted for approval by paper or fax.
•The policy applies to submissions of 15 or fewer items. Submissions of more than 15 items
may require additional review time.
•If you send a large number of submissions within a short period of time, processing may
be delayed.
•Delays in processing could occur if the Unit finds significant errors in your submission.
The Unit will send you an interim email in this case.
•Any anticipated problems in processing your submission within the 20-day period will
generate an interim email on or about the 15th business day.
•If any significant inaccuracies are discovered after the 20-day period,the Unit reserves the
right to inform you and will require that changes be made to correct the inaccuracies.
•The policy does not apply to substantially revised forms or to new forms created by the
IRS for which you have already made an initial submission.
Part 2
General Guidelines for Submissions and Approvals
Section 2.1 – General Specifications for Approval
2.1.1
Overview
If you produce any tax forms following the guidelines on only those changes specifically
outlined by the Substitute Forms Unit, you cangenerate your own substitute forms without
further approval. If your changes are more extensive, you must get IRS approval before using
substitute forms. More extensive changes can include the use of typefaces and sizes other than
those found on the official form and the condensing of line item descriptions to save space.
Note.The 20-day turnaround policy may not apply to extensive changes.
2.1.2
Email Submissions
The Substitute Forms Program accepts substitute forms submissions via email. The email
address isS
ubstituteforms@irs.gov. Please include the term “PDF Submissions” on the subject
line.
Follow these guidelines.
•Your submission should include all the forms you wish to submit in one attached pdf file.
Do not email each form individually.
•Small (fewer than 15 forms), rather than large, submissions should expedite processing. A
submission should contain a maximum of 15 forms.
2010–13 I.R.B.479March 29, 2010

•An approval check sheet listing the forms you are submitting should always be included in
the pdf file along with the forms. See a sample check sheet in Exhibit D.
•Optimize pdf files before submitting.
•The maximum allowable email attachment is 2.5 megabytes.
•The Substitute Forms Unit accepts zip files.
•To alleviate delays during the peak time of September through December, submit advance
draft forms as early as possible.
If the guidelines are not followed, you may need to resubmit.
Emailing pdf submissions will not expedite review and approval. The pdf submissions will
be assigned a control number and put in queue along with mailed-in paper submissions. In
addition to submitting forms via email, you may send your submissions to:
Internal Revenue Service
SE:W:CAR:MP:T:T:SP
Attn: Substitute Forms Program
1111 Constitution Avenue, NW
Room 6526
Washington, DC 20224
2.1.3
Expediting the Process
Follow these basic guidelines for expediting the process.
•Always include a check sheet for the Substitute Forms Unit’s response.
•Follow Publication 1167 for general substitute form guidelines. Follow the specialized
publications produced by the Substitute Forms Unit for other specific forms.
•To spread out the workload, send in draft versions of substitute forms when they are posted.
Note.Be sure to make any changes to approved drafts before releasing final versions.
2.1.4
Schedules
Schedules are considered to be an integral part of a complete tax return. A schedule may be
included as part of a form or printed separately.
2.1.5
Examples of Schedules
That Must Be Submitted
with the Return
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is an ex-
ample of this situation. Its Schedules A through U have pages numbered as part of the basic
return. For Form 706 to be considered for approval, the entire form including Schedules A
through U must be submitted.
2.1.6
Examples of Schedules
That Can Be Submitted Separately
However, Schedules 1, 2, and 3 of Form 1040A are examples of schedules that can be sub-
mitted separately. Although printed by the IRS as a supplement to Form 1040A, none of these
schedules are required to be filed with Form 1040A. These schedules may be separated from
Form 1040A and submitted as substitute forms.
2.1.7
Use and Distribution of
Unapproved Forms
The IRS is continuing a program to identify and contact tax return preparers, forms devel-
opers, and software publishers who use or distribute unapproved forms that do not conform to
this revenue procedure. The use of unapproved forms hinders the processing of the returns.
March 29, 20104802010–13 I.R.B.

Section 2.2 – Highlights of Permitted Changes and Requirements
2.2.1
Methods of
Reproducin
g Internal
Revenue Ser
vice Forms
Official IRS
tax forms are supplied by the IRS. These forms may be provided in the tax-
payer’s tax p
ackage or over-the-counter. Forms can also be picked up at many IRS offices,
post office
s, or libraries, and are available on DVD and online atw
ww.irs.gov.
There are methods of reproducing IRS printed tax forms suitable for use as substitutes with-
out prior approval.
•You can photocopy most tax forms and use them instead of the official ones. The entire
substitute form, including entries, must be legible.
•You can reproduce any current tax form as cutsheets, snap sets, and marginally punched,
pin-fed forms as long as you use an official IRS version as the master copy.
•You can reproduce a form that requires a signature as a valid substitute form. Many tax
forms (including returns) have a taxpayer signature requirement as part of the form layout.
The jurat/perjury statement/signature line areas must be retained and worded exactly as on
the official form. The requirement for a signature, by itself, does not prohibit a tax form
from being properly computer-generated.
Section 2.3 – Vouchers
2.3.1
Overview
All payment vouchers (Forms 940-V, 941-V, 943-V, 945-V, 1040-V, and 2290-V) must be
reproduced in conjunction with their forms. Substitute vouchers must be the same size as the
officially printed vouchers. Vouchers that are prepared for printing on a laser printer may in-
clude a scan line.
2.3.2
Scan Line
Specifications
NNNNNNNNN AAXXXX NNN NNNNNNNNN
Item:AB CDEF G
A.Social Security Number/Employer Identification Number (SSN/EIN) has 9 numeric
(N) spaces.
B.Check Digits have 2 alpha (A) spaces.
C.Name Control has 4 alphanumeric (X) spaces.
D.Master File Tax (MFT) Code has 2 numeric (N) spaces (see below).
E.Taxpayer Identification Number (TIN) Type has 1 numeric (N) space (see below).
F.Tax Period has 6 numeric (N) spaces in year/month format (YYYYMM).
G.Transaction Code has 3 numeric (N) spaces.
2.3.3
MFT Code
Code Number for Forms:
•1040 (family) – 30,
•940 – 10,
•941 – 01,
•943 – 11,
•944 – 14,
•945 – 16,
•2290 – 60, and
•4868 – 30.
2010–13 I.R.B.481March 29, 2010

2.3.4
TIN Type
Type Number for:
•Form 1040 (family), 4868 – 0, and
•Forms 940, 941, 943, 944, 945, and 2290 – 2.
2.3.5
Voucher Size
The voucher size must be exactly 8.0′′x3.25′′(Forms 1040-ES and 1041-ES must be
7.625′′x3.0′′). The document scan line must be vertically positioned 0.25 inches from the
bottom of the scan line to the bottom of the voucher. The last character on the right of the scan
line must be placed 3.5 inches from the right leading edge of the document. The minimum
required horizontal clear space between characters is .014 inches. The line to be scanned must
have a clear band 0.25 inches in height from top to bottom of the scan line, and from border to
border of the document. “Clear band” means no printing except for dropout ink.
2.3.6
Print and Paper Weight
Vouchers must be imaged in black ink using OCR A, OCR B, or Courier 10. These fonts
may not be mixed in the scan line. The horizontal character pitch is 10 CPI. The preferred
paper weight is 20 to 24 pound OCR bond.
2.3.7
Specifications for Software
Developers
Certain vouchers may be reproduced for usein the IRS lockbox system. These include
the 1040-V, 1040-ES, the 940 family, and 2290 vouchers. Software developers must follow
these specific guidelines to produce scannable vouchers strictly for lockbox purposes. Also
see Exhibit C.
•The total depth must be 3.25 inches.
•The scan line must be .5 inches from the bottom edge and 1.75 inches from the left edge
of the voucher and left-justified.
•Software developers vouchers must be 8.5 inches wide (instead of 8 inches with a cut line).
Therefore, no vertical cut line is required.
•Scan line positioning must be exact.
•Do not use the over-the-counter format voucher and add the scan line to it.
•All scanned data must be in 12-point OCR A font.
•The 4-digit NACTP ID code should be placed under the payment indicator arrow.
•Windowed envelopes must not display the scanline in order to avoid disclosure and privacy
issues.
Note.All software developers must ensure that their software uses OCR A font so taxpayers
will be able to print the vouchers in the correct font.
2.3.8
Specific Line Positions
Follow these line specifications for entering taxpayer data in the lockbox vouchers.
Start Row
Start
ColumnWidth
End
Column
Line Specifications for
Taxpayer Data:
Taxpayer Name
56
63641
Taxpayer Address, Apt.
57
63641
March 29, 20104822010–13 I.R.B.

Start Row
Start
ColumnWidth
End
Column
Taxpayer City, State, ZIP
58
63641
Line Specifications for
Mail To Data:
Mail Address
57
433880
Mail City, State, ZIP
58
433880
Line Specifications for:
Scan Line6326n/an/a
2.3.9
How to Get Approval
To receive approval, please send 25 vouchersamples yearly, by December 10, for testing to
the following address.
Internal Revenue Service
Attn: Doris Bethea, C5-163
5000 Ellin Rd.
Lanham, MD 20706
For further information, contact either Doris Bethea,D
oris.E.Bethea@irs.gov,at
202–283–0218 or Brenda Martinez,B
renda.C.Martinez@irs.gov, at 202–283–5789.
Section 2.4 – Restrictions on Changes
2.4.1
What You Cannot
Do to Forms Suitable for
Substitute
Tax Forms
You cannot, without prior IRS approval, change any IRS tax form or use your own (non-
approved) versions including graphics, unless specifically permitted by this revenue procedure.
See Sections 2.5.7 to 2.5.11.
You cannot adjust any of the graphics on Forms 1040, 1040A, and 1040EZ (except in those
areas specified in Part 5 of this revenue procedure) without prior approval from the IRS Sub-
stitute Forms Unit.
You cannot use your own preprinted label on tax returns filed with the IRS unless you fully
comply with the criteria specified in Section 3.6.3 on the use of pre-addressed IRS labels.
Note.The 20-day turnaround policy may not apply to extensive changes.
2010–13 I.R.B.483March 29, 2010

Section 2.5 – Guidelines for Obtaining IRS Approval
2.5.1
Basic Requirements
Preparers who submit substitute privately designed, privately printed, computer generated,
or computer prepared tax forms must develop these substitutes using the guidelines established
in this part. These forms, unless there is an exception outlined by the revenue procedure, must
be approved by the IRS before being filed.
2.5.2
Conditional Approval Based on
Advanced Drafts
The IRS cannot grant final approval of your substitute form until the official form has been
published. However, the IRS posts advance draft forms on its website at:
h
ttp://www.irs.gov/app/picklist/list/draftTaxForms.html
We encourage submission of proposed substitutes of these advance draft forms and will
grant conditional approval based solely on these early drafts. These advance drafts are subject
to significant change before forms are finalized. If these advance drafts are used as the basis
for your substitute forms, you will be responsible for subsequently updating your final forms
to agree with the final officialversion. These revisions need not be resubmitted for further
approval.
Note.Approval of forms based on advance drafts will not be granted after the final version
of an official form is published.
2.5.3
Submission Procedures
Follow these general guidelines when submitting substitute forms for approval.
•Any alteration of forms must bewithin the limits acceptable to the IRS. It is possible that,
from one filing period to another, a change in law or a change in internal need (processing,
audit, compliance, etc.) may change the allowable limits for the alteration of the official
form.
•When approval of any substitute form (other than those exceptions specified in Part 1,
Section 1.2 – IRS Contacts) is requested, a sample of the proposed substitute form should
be forwarded for consideration via email or by letter to the Substitute Forms Unit at the
address shown in Section 1.2.1.
•Schedules and forms (for example, Forms 3468, 4136, etc.) that can be used with more
than one type of return (for example, 1040, 1041, 1120, etc.) should be submitted only
once for approval, regardless of the number of different tax returns with which they may
be associated. Also, all pages of multi-page forms or returns should be submitted in the
same package.
2.5.4
Approving Offices
Because only the Substitute Forms Unit is authorized to approve substitute forms, unneces-
sary delays may occur if forms are sent to the wrong office. You may receive an interim letter
about the delay. The Substitute Forms Unit may then coordinate the response with the origina-
tor responsible for revising that particular form. Such coordination may include allowing the
originator to officially approve the form. No IRS office is authorized to allow deviations from
this revenue procedure.
2.5.5
IRS Review of
Software Programs, etc.
The IRS does not review or approve the logic of specific software programs, nor does the
IRS confirm the calculations on the forms produced by these programs. The accuracy of the
program remains the responsibility of the software package developer, distributor, or user.
March 29, 20104842010–13 I.R.B.

The Substitute Forms Unit is primarily concerned with the pre-filing quality review of the
final forms that are expected tobe processed by IRS field offices. For this purpose, you should
submit forms without including any taxpayer information such as names, addresses, monetary
amounts, etc.
2.5.6
When To Send
Proposed Substitutes
Proposed substitutes, which are required to be submitted per this revenue procedure, s
hould
be sent as much in advance of the filing period as possible. This is to allow adequate time
for
analysis and response.
2.5.7
Accompanying
Statement
When submitting sample substitutes, you should include an accompanying statement that
lists each form number and its changes from the official form (position, arrangement, appear-
ance, line numbers, additions, deletions, etc.). With eachof the items you should include a
detailed reason for the change.
When requesting approval, pleas
e include a check sheet. Check sheets expedite the approval
process. The check sheet may look
like the example in Exhibit D displayed in the back of this
procedure or may be one of your own
design. Please include your fax number on the check
sheet.
2.5.8
Approval/Non-
Approval Notice
The Substitute Forms Unit will fax the check sheet or an approval letter to the originator if
a fax number has been provided, unless:
•The requester has asked for an email response or for a formal letter, or
•Significant corrections to the submitted forms are required.
Notice of approval may impose qualificationsbefore using the substitutes. Notices of un-
approved forms may specify the changes required for approval and require re-submission of
the form(s) in question. When appropriate, you will be contacted by telephone.
2.5.9
Duration of
Approval
Most signature tax returns and many of their schedules and related forms have the tax (li-
ability) year printed in the upper right corner. Approvals for these annual forms are usually
good for one calendar year (January through December of the year of filing). Quarterly tax
forms in the 940 series and Form 720 require approval for any quarter in which the form has
been revised.
Because changes are usually made to an annual form every year, each new filing season
generally requires a new submission of a substitute form. Very rarely is updating the preprinted
year the only change made to an annual form.
2.5.10
Limited
Continued Use of an Approved
Change
Limited changes approved for one tax year may be allowed for the same form in the follow-
ing tax year. Examples are the use of abbreviated words, revised form spacing, compressed
text lines, and shortened captions, etc., which do not change the integrity of lines or text on the
official forms.
If substantial changes are made to the form, new substitutes must be submitted for approval.
If only minor editorial changes are made to the form, it is not subject to review. It is the re-
sponsibility of each vendor who has been granted permission to use substitute forms to monitor
and revise forms to mirror any revisions to official forms made by the Service. If there are any
questions, please contact the Substitute Forms Unit.
2010–13 I.R.B.485March 29, 2010

2.5.11
When Approval
Is Not Required
If you received approval for a specific change on a form last year, you may make the same
change this year if the item is still present on the official form.
•The new substitute form does not have to be submitted to t
he IRS and approval based on
that change is not required.
•However, the new substitute form must conform to the off
icial current year IRS form in
other respects: date, Office of Management and Budget (
OMB) approval number, attach-
ment sequence number, Paperwork Reduction Act Notice s
tatement, arrangement, item
caption, line number, line reference, data sequence, e
tc.
•The new substitute form must also comply with changes t
o the guidelines in this revenue
procedure. The procedure may have eliminated, added
to, or otherwise changed the guide-
line(s) that affected the change approved in the prio
r year.
•An approved change is authorized only for the period f
rom a prior tax year substitute form
to a current tax year substitute form.
Exception.Forms with temporary, limited, or interim approvals (or with approvals that
state a change is not allowed in any other tax year) are subject to review in subsequent years.
2.5.12
Continuous-
Use Forms
Forms without preprinted tax years are called “continuous-use” forms. Continuous-use
forms are revised when a legislative change affects the form or a change will facilitate pro-
cessing. These forms frequently have revision dates that are valid for longer than one year.
2.5.13
Required Copies
Generally, you must send us one copy of each form being submitted for approval. However,
if you are producing forms for different computer systems (for example, IBM compatible vs.
Macintosh) or different types of printers and these forms differsignificantlyin appearance,
submit one copy for each type of system or printer.
2.5.14
Requestor’s
Responsibility
Following receipt of an initial approval for a substitute forms package or a software output
program to print substitute forms, it is the responsibility of the originator (designer or distrib-
utor) to provide client firms or individualswith forms that meet the IRS’s requirements for
continuing acceptability.Examples of this responsibility include:
•Using the prescribed print paper, font size, legibility, state tax data deletion, etc., and
•Informing all users of substitute forms of thelegal requirements of the Paperwork Reduc-
tion Act Notice, which is generally found in the instructions for the official IRS forms.
2.5.15
Source Code
The Substitute Forms Unit will assign a unique source code to each firm that submits sub-
stitute paper forms for approval. This source code will be a permanent identifier that must be
used on every submission by a particular firm.
The source code consists of three alpha characters and should generally be printed at the
bottom left margin area on the first page of every approved substitute form.
Section 2.6 – Office of Management and Budget (OMB) Requirements for All Substitute Forms
2.6.1
OMB Requirements
for All Substitute Forms
There are legal requirements of the Paperwork Reduction Act of 1995 (The Act). Public
Law 104-13 requires the following.
•OMB approves all IRS tax forms that are subject to the Act.
March 29, 20104862010–13 I.R.B.

•Each IRS form contains (in the upper right corner) the OMB number, if assigned.
•Each IRS form (or its instructions) states why the IRS needs the information, how it will
be used, and whether or not the information is required to be furnished to the IRS.
This information must be provided to every user of official or substitute IRS forms or in-
structions.
2.6.2
Application of the Paperwork
Reduction Act
On forms that have been assigned OMB numbers:
•All substitute forms must contain in the upper right corner the OMB number that is on the
official form, and
•The required format is: OMB No. 1545-XXXX (Preferred) or OMB # 1545-XXXX (Ac-
ceptable).
2.6.3
Required
Explanation to Users
You must inform the users of your substitute forms of the IRS use and collection require-
ments stated in the instructions for official IRS forms.
•If you provide your users or customers with the official IRS instructions, each form must
retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Pa-
perwork Reduction Act Notice), or a reference to it as the IRS does on the official forms
(usually in the lower left corner of the forms).
•This notice reads, in part, “We ask for the information on this form to carry out the Internal
Revenue laws of the United States....”
Note.If no IRS instructions are provided to users of your forms, the exact text of the Paper-
work Reduction Act Notice (or Disclosure, Privacy Act, and PaperworkReduction Act Notice)
must be furnished separately or on the form.
2.6.4
Finding the OMB
Number and Paperwork
Reduction Act Notice
The OMB number and the Paperwork Reduction Act Notice, or references to it, may be
found printed on an official form (or its instructions). The number and the notice are included
on the official paper format and in other formats produced by the IRS (for example, DVD
(Publication 1796) or Internet download).
Part 3
Physical Aspects and Requirements
Section 3.1 – General Guidelines for Substitute Forms
3.1.1
General Information
The official form is the standard. Because a substitute form is a variation from the official
form, you should know the requirements of the official form for the year of use before you
modify it to meet your needs. The IRS provides several means of obtaining the most frequently
used tax forms. These include the Internet and DVD (see Part 4).
3.1.2
Design
Each form must follow the design of the official form as to format arrangement, item cap-
tion, line numbers, line references, and sequence.
2010–13 I.R.B.487March 29, 2010

3.1.3
State Tax
Information Prohibited
Generally, state tax information must not appearon the federal tax return, associated form,
or schedule that is filed with the IRS. Exceptions occur when amounts are claimed on, or re-
quired by, the federal return (for example, state and local income taxes, on Schedule A of Form
1040).
3.1.4
Vertical Alignment
of Amount Fields
IF a form is to be...THEN...
1.The entry column must have a vertical line or some
type of indicator in the amount field to separate dollars
from cents.
Manually prepared
2.The cents column must be at least 3/10′′wide.
1.Vertically align the amountentry fields where possible.
2.Use one of the following amount formats:
a) 0,000,000, or
Computer generated
b) 0,000,000.00.
1.You may remove the vertical line in the amount field
that separates dollars from cents.
2.Use one of the following amount formats:
a) 0,000,000, or
Computer prepared
b) 0,000,000.00.
3.1.5
Attachment
Sequence Number
Many individual income tax forms have a required “attachment sequence number” located
just below the year designation in the upper right corner of the form. The IRS uses this number
to indicate the order in which forms are to be attached to the tax return for processing. Some
of the attachment sequence numbers may change from year to year.
The following applies to computer prepared forms.
•The sequence n
umber may be printed in no less than 12-point boldface type and centered
below the form
’s year designation.
•The sequence n
umber may also be placed following the year designation for the tax form
and separated
with an asterisk.
•The actual num
ber may be printed without labeling it the “Attachment Sequence Number.”
3.1.6
Assembly of Forms
When developing software or forms for use by others, please inform your customers/clients
that the order in which the forms are arranged may affect the processing of the package. A
return must be arranged inthe order indicated below.
IF the form is...THEN the sequence is...
1040• Form 1040, and
• Schedules and forms in attachment sequence number order.
Anyothertaxreturn
(Form 1120, 1120S,
1065, 1041, etc.)
• The tax returns,
• Directly associated schedules (Schedule D, etc.),
• Directly associated forms,
• Additional schedules in alphabetical order, and
• Additional forms in numerical order.
Supporting statements should then follow in the same sequence as the forms they support.
Additional information required should be attached last.
March 29, 20104882010–13 I.R.B.

In this way, the forms are received in the order in which they must be processed. If you do
not send returns to the IRS in order, processing may be delayed.
3.1.7
Paid Preparer’s
Information and
Signature Area
On Forms 1040EZ, 1040A, 1040, and 1120, etc., the “Paid Preparer’s Use Only” area may
not be rearranged or relocated. You may, however, add three extra lines to the paid preparer’s
address area without prior approval. This applies to other tax forms as well.
3.1.8
Some Common Reasons for
Requiring Changes to Substitute
Forms
Some reasons that substitute form submissions may require changes include the following.
•Failing to preprint certain amounts in entry spaces.
•Shading areas incorrectly.
•Failing to include a reference to the location of the Paperwork Reduction Act Notice.
•Not including parentheses for losses.
•Not including “Attach Statement” when appropriate.
•Including line references or entry spacesthat don’t match the official form.
•Printing text that is different from the official form.
•Altering the jurat.
Section 3.2 – Paper
3.2.1
Paper Content
The paper must be:
•Chemical wood writing paper that is equal to or better than the quality used for the official
form,
•At least 18 pound (17′′x22′′, 500 sheets), or
•At least 50 pound offset book (25′′x38′′, 500 sheets).
3.2.2
Paper with
Chemical Transfer
Properties
There are several kinds of paper prohibited for substitute forms. These are:
1. Carbon-bonded paper, and
2. Chemical transfer paper except when the following specifications are met:
a. Each ply within the chemical transfer set of forms must be labeled, and
b. Only the top ply (ply one and white in color), the one that contains chemical
on the back only (coated back), may be filed with the IRS.
3.2.3
Example
A set containing three plies would be constructed as follows:ply one (coated back), “Fed-
eral Return, File with IRS”; ply two (coated front and back), “Taxpayer’s copy”; and ply three
(coated front), “Preparer’s copy.”
The file designation, “Federal Return, File with IRS” for ply one, must be printed in the
bottom right margin (just below the last line of the form) in 12-point boldface type.
It is not mandatory, but recommended, that the file designation “Federal Return, File with
IRS” be printed in a contrasting ink for visual emphasis.
2010–13 I.R.B.489March 29, 2010

3.2.4
Carbon Paper
Do not attach any carbon paper to any return you file with the IRS.
3.2.5
Paper and Ink
Color
It is preferred that the color and opacity of paper substantially duplicates that of the original
form. This means that your substitute must be printed in black ink and may be on white or on
the colored paper the IRS form is printed on. Forms 1040A and 1040 substitute reproductions
may be in black ink without the colored shading. The only exception to this rule is Form
1041-ES, which should always be printed with a very light gray shading in the color screened
area. This is necessary to assist us in expeditiously separating this form from the very similar
Form 1040-ES.
3.2.6
Page Size
Substitute or reproduced forms and computer prepared/generated substitutes may be the
same size as the official form or they may be the standard commercial size (8
1
/2′′x11′′). The
thickness of the stock cannot be less than .003 inches.
Section 3.3 – Printing
3.3.1
Printing Medium
The private printing of all substitute tax forms must be by conventional printing processes,
photocopying, computer graphics, or similar reproduction processes.
3.3.2
Legibility
All forms must have a high standard of legibility as to printing, reproduction, and fill-in
matter. Entries of taxpayer data may be no smaller than eight points. The IRS reserves the
right to reject those with poor legibility. The ink and printing method used must ensure that no
part of a form (including text, graphics, data entries, etc.) develops “smears” or similar quality
deterioration. This standard must be followedfor any subsequent copies or reproductions made
from an approved master substitute form, either during preparation or during IRS processing.
3.3.3
Type Font
Many federal tax forms are printed using “Helvetica” as the basic type font. It is preferred
that you use this type font when composing substitute forms.
3.3.4
Print Spacing
Substitute forms should be printed using a 6 lines/inch vertical print option. They should
also be printed horizontally in 10 pitch pica (that is, 10 print characters per inch) or 12 pitch
elite (that is, 12 print positions per inch).
3.3.5
Image Size
The image size of a printed substitute form should be as close as possible to that of the
official form. You may omit any text on both computer prepared and computer generated forms
that is solely instructional.
March 29, 20104902010–13 I.R.B.

3.3.6
Title Area Changes
To allow a large top margin for marginal printing and more lines per page, the title line(s)
for all substitute forms (not including the form’s year designation and sequence number, when
present), may be photographically reduced by40 percent or reset as one line of type. When
reset as one line, the type size may be no smaller than 14-point. You may omit “Department
of the Treasury, Internal Revenue Service” and all reference to instructions in the form’s title
area.
3.3.7
Remove
Government Printing Office
Symbol and IRS
Catalog Number
When privately printing substitute tax forms, the Government Printing Office (GPO) sym-
bol and/or jacket number must be removed. In the same place using the same type size, print
the Employer Identification Number (EIN) of the printer or designer or the IRS assigned source
code. (We prefer this last number be printed in the lower left area of the first page of each form.)
Also, remove the IRS CatalogNumber (Cat. No.) and the recycle symbol if the substitute is
not produced on recycled paper.
3.3.8
Printing on One
Side of Paper
While it is preferred that both sides of the paper be used for substitutes and reproduced
forms, resulting in the same page arrangement as that of the official form or schedule, the IRS
will accept your forms if only one side of the paper is used.
3.3.9
Photocopy
Equipment
The IRS does not undertake to approve or disapprove the specific equipment or process
used in reproducing official forms. Photocopies of forms must be entirely legible and satisfy
the conditions stated in this and other revenue procedures.
3.3.10
Reproductions
Reproductions of official forms and substitute forms that do not meet the requirements of
this revenue procedure may not be filed instead of the official forms. Illegible photocopies are
subject to being returned to the filer for re-submission of legible copies.
3.3.11
Removal of
Instructions
Generally, you may remove references to instructions. No prior approval is needed. How-
ever in some instances, you may be requestedto include references to instructions.
Exception.The words “For Paperwork Reduction Act Notice, see instructions” must be
retained or a similar statement indicating the location of the notice must be provided on each
form.
Section 3.4 – Margins
3.4.1
Margin Size
The format of a reproduced tax form when printed on the page must have margins on all
sides at least as large as the margins on the official form. This allows room for IRS employees
to make necessary entries on the form during processing.
•A
1
/2-inch to
1
/4-inch margin must be maintained across the top, bottom, and both sides of
all substitute forms.
•The marginal, perforated strips containing pin-fed holes must be removed from all forms
priortofilingwiththeIRS.
2010–13 I.R.B.491March 29, 2010

3.4.2
Marginal Printing
Prior approval is not required for the marginal printing allowed when printed on an official
form or on a photocopy of an official form.
•With the exception of the actual tax forms (for example, Forms 1040, 1040A, 1040EZ,
1120, 940, 941, etc.), you may print in the left vertical margin and in the left half of the
bottom margin.
•Printing is never allowed in the top right margin of the tax form (for example, Forms 1040,
1040A, 1040EZ, 1120, 940, 941, etc.). The Service uses this area to imprint a Document
Locator Number for each return. There are no exceptions to this requirement.
Section 3.5 – Examples of Approved Formats
3.5.1
Examples of
Approved Formats From
the Exhibits
Two sets of exhibits (Exhibits A-1 and 2; B-1 and 2) at the end of this revenue procedure
are examples of how these guidelines may be used. Vertical spacing is six (6) lines to the inch.
A combination of upper-case and lower-case print font is acceptable in producing substitute
forms.
ThesamelogicmaybeappliedtoanyIRSformthat is normally reproducible as a substitute
form, with the exception of the tax return forms as discussed elsewhere.
Note.These exhibits may be from a prior year and are not to be used as current substitute
forms.
Section 3.6 – Miscellaneous Information for Substitute Forms
3.6.1
Filing Substitute
Forms
To be acceptable for filing, a substitute form must print out in a format that will allow the
filer to follow the same instructions as for filing official forms. These instructions are in the
taxpayer’s tax package or in the related form instructions. The form must be legible, must be
on the appropriately sized paper, and must include a jurat where one appears on the published
form.
3.6.2
Caution to Software
Publishers
The IRS has received returns produced by software packages with approved output where
either the form heading was altered or the lines were spaced irregularly. This produces an
illegible or unrecognizable return or a return with the wrong number of pages. We realize
that many of these problems are caused by individual printer differences but they may delay
input of return data and, in some cases, generate correspondence to the taxpayer. Therefore,
in the instructions to the purchasers of your product, both individual and professional, please
stress that their returns will beprocessed more efficiently if they are properly formatted. This
includes:
•Having the correct form numbers and titles at the top of the return, and
•Submitting the same number of pages as if the form were an official IRS form with the line
items on the proper pages.
March 29, 20104922010–13 I.R.B.

3.6.3
Use Pre-Addressed
IRS Label
If you are a practitioner filling out a return for a client or a software publisher who prints
instruction manuals, stress the use of the pre-addressed label provided in the tax package the
IRS sent to the taxpayer, when available. The use of this label (or its precisely duplicated label
information) is extremely important for the efficient, accurate, and economical processing of
a taxpayer’s return. Labeled returns indicate that a taxpayer is an established filer and permits
the IRS to automatically accelerate processing of those returns. This results in quicker refunds,
less manual review by IRS functions, and greater accuracy in names, addresses, and postal
deliveries.
3.6.4
Caution to
Producers of
Software Packages
If you are producing a software package that generates name and address data onto the tax
return, do not under any circumstances program either the IRS preprinted check digits or a
practitioner derived name control to appear on any return prepared and filed with the IRS.
3.6.5
Programming
to Print Forms
Whenever applicable:
•Use only the following label information format for single filers:
JOHN Q. PUBLIC
310 OAK DRIVE
HOMETOWN, STATE 94000
•Use only the following information for joint filers:
JOHN Q. PUBLIC
MARY I. PUBLIC
310 OAK DRIVE
HOMETOWN, STATE 94000
Part 4
Additional Resources
Section 4.1 – Guidance From Other Revenue Procedures
4.1.1
General
The IRS publications listed below provide guidance for substitute tax forms not covered
in this revenue procedure. These publicationsare available on the IRS website. Identify the
requested document by the IRS publication number.
•Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.
•Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099,
5498, W-2G, 1042-S, and 8935.
•Publication 1187, Specifications for Filing Forms 1042-S, Foreign Person’s U.S. Source
Income Subject to Withholding, Electronically.
•Publication 1220, Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935, and
W-2G Electronically.
•Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.
•Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information
Return of Tip Income and Allocated Tips, Electronically.
•Publication 1345, Handbook for Authorized IRSe-fileProviders of Individual Income Tax
Returns.
•Publication 4436, General Rules and Specifications for Substitute Form 941 and Schedule
B (Form 941).
2010–13 I.R.B.493March 29, 2010

Section 4.2 – Electronic Tax Products
4.2.1
The IRS Website
Copies of tax forms with instructions, publications, draft forms, fillable forms, prior year
forms and publications, and other tax-related information may be found on the IRS website at
w
ww.irs.gov.
Section 4.3 – IRS Tax Products on DVD (Publication 1796)
4.3.1
Information
About IRS Tax
Products DVD
The DVD contains approximately 2,800 tax forms and publications for small businesses,
return preparers, and others whofrequently need current or prior year tax products. Most cur-
renttaxformsontheDVDmaybefilledinelectronically, then printed out for submission and
saved for recordkeeping. Other products on the DVD include the Internal Revenue Bulletins,
Tax Supplements, and Internet resources for the tax professional with links to the World Wide
Web.
4.3.2
System
Requirements and
How To Order the IRS Tax
Products DVD
For system requirements, contact the National Technical Information Service (NTIS) at
h
ttp://www.ntis.gov. Prices are subject to change.
The cost of the DVD if purchased from NTIS via the Internet at
www.irs.gov/formspubs/article/0,,id=108660,00.htmlis $30 (with no handling fee).
If purchased using the following methods, thecost for each DVD is $30(plus a $5 handling
fee). These methods are:
•By phone – 1–877–CDFORMS (1–877–233–6767) — for IRS DVD purchase only,
•By fax – 703–605–6900 — for IRS DVD purchase only,
•By mail to:
National Technical Information Service
5301 Shawnee Rd.
Alexandria, VA 22312
Part 5
Requirements for Specific Tax Returns
Section 5.1 – Tax Returns (Forms 1040, 1040A, 1120, etc.)
5.1.1
Acceptable Forms
Tax forms (such as Forms 1040, 1040A, and 1120) require a signature and establish tax
liability. Computer generated versions are acceptable under the following conditions.
•These substitute forms must be printed on plain white paper.
•Substitute forms must conform to the physical layout of the corresponding IRS form al-
though the typeface may differ. The text should match the text on the officially published
form as closely as possible. Condensed textand abbreviations will be considered on a
case-by-case basis.
Caution.All jurats (perjury statements) mustbe reproduced verbatim. No text can be
added, deleted, or changed in meaning.
•Various computer graphic print media such as laser printing, inkjet printing, etc., may be
used to produce the substitute forms.
March 29, 20104942010–13 I.R.B.

•The substitute form must be the same number of pages and contain the same line text as
the official form.
•All substitute forms must be submitted for approval prior to their original use. You do not
need approval for a substitute form if its only change is the preprinted year and you had
received a prior year approval letter.
Exception.If the approval letter specifies a one time exception for your form, the next
year’s form must be approved.
5.1.2
Prohibited Forms
The following are prohibited.
•Computer generated tax forms (for example, Form 1040, etc.) on lined or color barred
paper.
•Tax forms that differ from the official IRS forms in a manner that makes them non-standard
or unable to process.
5.1.3
Changes
Permitted to Forms
1040 and 1040A
Certain changes (listed in Sections 5.2 through 5.4) are permitted to the graphics of the form
without prior approval, but these changes apply to only acceptable preprinted forms. Changes
not requiring prior approval are good only for the annual filing period, which is the current tax
year. Such changes are valid in subsequent years only if the official form does not change.
5.1.4
Other Changes
Not Listed
All changes not listed in Sections 5.2 through 5.4 require approval from the IRS before the
form can be filed.
Section 5.2 – Changes Permitted to Graphics (Forms 1040A and 1040)
5.2.1
Adjustments
You may make minor vertical and horizontal spacing adjustments to allow for computer or
word processing printing. This includes widening the amount columns or tax entry areas if the
adjustments comply with other provisions stated in revenue procedures. No prior approval is
needed for these changes.
5.2.2
Name and Address Area
The horizontal rules and instructions within the name and address area may be removed and
the entire area left blank. No line or instruction can remain in the area. However, the statement
regarding use of the IRS label should be retained. The heavy ruled border (when present) that
outlines the name, address area, and social security number must not be removed, relocated,
expanded, or contracted.
5.2.3
Required Format
When the name and address area is left blank, the following format must be used when
printing the taxpayer’s name and address. Otherwise, unless the taxpayer’s preprinted label is
affixed over the information entered in this area, the lines must be filled in as shown below.
•1st name line (35 characters maximum).
•2nd name line (35 characters maximum).
•In-care-of name line (35 characters maximum).
•City, state (25 characters maximum), one blank character, and ZIP code.
2010–13 I.R.B.495March 29, 2010

5.2.4
Conventional
Name and
Address Data
When there is no in-care-of name line, the name and address will consist of only three lines
(singlefiler)orfourlines(jointfiler).Nameand address (joint filer) with no in-care-of name
line:
JOHN Z. JONES
MARY I. JONES
1234 ANYWHERE ST., APT. 111
ANYTOWN, STATE 12321
5.2.5
Example of
In-Care-Of
Name Line
Name and address (single filer) with in-care-of name line:
JOHN Z. JONES
C/O THOMAS A. JONES
4311 SOMEWHERE AVE.
SAMETOWN, STATE 54345
5.2.6
SSN and
Employer Identification
Number (EIN) Area
The vertical lines separating the format arrangement of the SSN/EIN may be removed.
When the vertical lines are removed, the SSNand EIN formats must be 000-00-0000 or
00-0000000, respectively.
5.2.7
Cents Column
•You may remove the vertical rule that separates the dollars from the cents.
•All entries in the amount column should have a decimal point following the whole dollar
amounts whether or not the vertical line that separates the dollars from the cents is present.
•You may omit printing the cents, but all amounts entered on the form must follow a con-
sistent format. You are strongly urged to round off the figures to whole dollar amounts,
following the official form instructions.
•When several amounts are summed together, the total should be rounded off after addition
(that is, individual amounts should not be rounded off for computation purposes).
•When printing money amounts, you must use one of the following formats:
(a) 0,000,000.;
(b) 0,000,000.00.
•When there is no entry for aline, leave the line blank.
5.2.8
“Paid Preparer’s
Use Only” Area
On all forms, the paid preparer’s information area may not be rearranged or relocated. You
may add three lines and remove the horizontal rules in the preparer’s address area.
Section 5.3 – Changes Permitted to Form 1040A Graphics
5.3.1
General
No prior approval is needed for the followingchanges (for use with computer prepared
forms only).
5.3.2
Line 4 of
Form 1040A
This line may be compressed horizontally (to allow for same line entry for the name of the
qualifying child) by using the following caption: “Head of household; child’s name” (name
field).
March 29, 20104962010–13 I.R.B.

5.3.3
Other Lines
Any line with text that takes up two or more vertical lines may be compressed to one line
by using contractions, etc., and by removing instructional references.
5.3.4
Page 2 of
Form 1040A
All lines must be present and numbered in the order shown on the official form. These lines
mayalsobecompressed.
5.3.5
Color Screening
It is not necessary to duplicate the color screening used on the official form. A substitute
Form 1040A may be printed in black and white only with no color screening.
5.3.6
Other Changes
Prohibited
No other changes to the Form 1040A graphics are allowed without prior approval except
for the removal of instructions and references to instructions.
Section 5.4 – Changes Permitted to Form 1040 Graphics
5.4.1
General
No prior approval is needed for the followingchanges (for use with computer prepared
forms only). Specific line numbers in the following headings may have changed due to tax law
changes.
5.4.2
Line 4 of
Form 1040
This line may be compressed horizontally (to allow for a larger entry area for the name of
the qualifying child) by using the following caption: “Head of household; child’s name” (name
field).
5.4.3
Line 6c of
Form 1040
The vertical lines separatingcolumns (1) through (4) may be removed. The captions may
be shortened to allow a one line caption for each column.
5.4.4
Other Lines
Any other line with text that takes up two or more vertical lines may be compressed to one
line by using contractions, etc., and by removing instructional references.
5.4.5
Line 21 – Other Income
The fill-in portion of this line may be expanded vertically to three lines. The amount entry
box must remain a single entry.
5.4.6
Line 44 of
Form 1040 – Tax
You may change the line caption to read “Tax” and computer print the words “Total includes
tax from” and either “Form(s) 8814” or “Form 4972.” If both forms are used, print both form
numbers. This specific line number may have changed.
2010–13 I.R.B.497March 29, 2010

5.4.7
Line 53 of
Form 1040 –
Other Credits
You may change the caption to read: “Other credits from Form” and computer print only
the form(s) that apply.
5.4.8
Color Screening
It is not necessary to duplicate the color screening used on the official form. A substitute
Form 1040 may be printed in black and white only with no color screening.
5.4.9
Other Changes
Prohibited
No other changes to the Form 1040 graphics arepermitted without prior approval except
for the removal of instructions and references to instructions.
Part 6
Format and Content of Substitute Returns
Section 6.1 – Acceptable Formats for Substitute Forms and Schedules
6.1.1
Exhibits and Use of Acceptable
Formats
Exhibits of acceptable formats for Schedule A, usually attached tothe Form 1040, and Form
2106-EZ are shown in the exhibits section of this revenue procedure.
•If your computer generated formsappear exactly like the exhibit
s, no prior authorization
is needed.
•You may computer generate forms not shown here, but you must desi
gn them by following
the manner and style of those in the exhibits section.
•Take care to observe other requirements and conditions in this r
evenue procedure. The IRS
encourages the submission of all proposed forms covered by this
revenue procedure.
6.1.2
Instructions
The format of each substitute form or schedule must follow the format of the official form
or schedule as to item captions, line references, line numbers, sequence, form arrangement
and format, etc. Basically, try to make the form look like the official one, with readability and
consistency being primary factors. You may use periods and/or other similar special characters
to separate the various parts and sections of the form. Do not use alpha or numeric characters
for these purposes. All line numbers and items must be printed even though an amount is not
enteredontheline.
6.1.3
Line Numbers
When a line on an official form is designated by a number or a letter, that designation (ref-
erence code) must be used on a substitute form. The reference code must be printed to the left
of the text of each line and immediately preceding the data entry field, even if no reference
code precedes the data entry field on the officialform. If an entry field contains multiple lines
and shows the line references once on the left and right side of the form, use the same number
of line references on the substitute form.
In addition, the reference code that is immediately before the data field must either be fol-
lowed by a period or enclosed in parentheses. There also must be at least two blank spaces
between the period or the right parenthesis and the first digit of the data field. (See example
below.)
March 29, 20104982010–13 I.R.B.

6.1.4
Decimal Points
A decimal point (that is, a period) should be used for each money amount regardless of
whether the amount is reported in dollars and cents or in whole dollars, or whether or not the
vertical line that separates the dollars from the cents is present. The decimal points must be
vertically aligned when possible.
Example:
5
STATE & LOCAL INC. TAXES...............
5.495.00
6 REAL ESTATE TAXES............................6.
7 PERSONAL PROPERTY TAXES............7.198.00
or
5
STATE & LOCAL INC. TAXES...............
(5)495.00
6 REAL ESTATE TAXES.............................(6)
7 PERSONAL PROPERTY TAXES.............(7)198.00
6.1.5
Multi-Page Forms
When submitting a multi-page form, send all its pages in the same package.
Exception.If you will not be producing certain pages, please note that in your cover letter.
Section 6.2 – Additional Instructions for All Forms
6.2.1
Use of Your
Own Internal Control Numbers
and
Identifying Symbols
You may show the computer prepared internal control numbers and identifying symbols on
the substitute if using such numbers or symbols is acceptable to the taxpayer and the taxpayer’s
representative. Such information must not be printed in the top
1
/2inch clear area of any form
or schedule requiring a signature. Except for the actual tax return form (Forms 1040, 1120,
940, 941, etc.), you may print in the left vertical and bottom left margins. The bottom left
margin you may use extends 3
1
/2inches from the left edge of the form.
6.2.2
Required Software
ID Number on
Computer Prepared
Substitutes
The IRS 8-digite-filesoftware identification number for the software that creates computer-
generated substitute forms must be included onthe substitute forms. Print the software ID
number in the middle at the bottom of the form.
6.2.3
Descriptions for
Captions, Lines, etc.
Descriptions for captions, lines, etc., appearing on the substitute forms may be limited to one
print line by using abbreviations and contractions, and by omitting articles, prepositions, etc.
However, sufficient key words must be retained to permit ready identification of the caption,
line, or item.
6.2.4
Determining
Final Totals
Explanatory detail and/or intermediate calculations for determining final line totals may
be included on the substitute. We prefer that such calculations be submitted in the form of a
supporting statement. If intermediate calculations are included on the substitute, the line on
which they appear may not be numbered or lettered. Intermediate calculations may not be
printed in the right column. This column is reserved only for official numbered and lettered
lines that correspond to the ones on the official form. Generally, you may choose the format
for intermediate calculations or subtotals on supporting statements to be submitted.
2010–13 I.R.B.499March 29, 2010

6.2.5
Instructional
Text on the Official Form
Text on the official form, which is solely instructional (for example, “See instructions,”
etc.), may generally be omitted from the substitute form.
6.2.6
Mixing Forms
ontheSamePageProhibited
You may not show more than one form or schedule on the same printout page. Both sides
of the paper may be printed for multi-page official forms, butit is unacceptable to intermix
single page schedules of forms except for Schedules A and B (Form 1040), which are printed
back to back by the IRS.
For instance, Schedule E can be printed on both sides of the paper because the official form
is multi-page, with page 2 continued on the back. However, do not print Schedule E on the
front page and Schedule SE on the back, or Schedule A on the front and Form 8615 on the
back, etc. Both pages of a substitute form must match the official form. The back page may
be left blank if the back page of the official form contains only the instructions.
6.2.7
Identifying
Substitutes
Identify all computer prepared substitutes clearly. Print the form designation
1
/2inch from
the top margin and 1
1
/2inches from the left margin. Print thetitle centered on the first line of
print. Print the taxable year and, where applicable, the sequence number on the same line
1
/2
inch to 1 inch from the right margin. Includethe taxpayer’s name and SSN on all forms and
attachments. Also, print the OMB number as reflected on the official form.
6.2.8
Negative Amounts
Negative (or loss) amount entries should be enclosed in brackets or parentheses or include
a minus sign. This assists in accurate computation and input of form data. The IRS pre-prints
parentheses in negative data fields on many official forms. These parentheses should be re-
tained or inserted on printouts of affected substitute forms.
Part 7
Miscellaneous Forms and Programs
Section 7.1 – Specifications for Substitute Schedules K-1
7.1.1
Requirements
for Schedules K-1 That
Accompany
Forms 1041, 1065, 1065-B, and
1120S
Because of significant changes to improve processing, prior approval is now required for
substitute Schedules K-1 that accompany Form1041 (for estates and trusts), Form 1065 (for
partnerships), Form 1065-B (for electing large partnerships), or Form 1120S (for S corpora-
tions). Substitute Schedules K-1 should be as close as possible to exact replicas of copies of
the official IRS schedules and follow the same process for submitting other substitute forms
and schedules. Before releasing their substitute forms, software vendors are responsible for
making any subsequent changes that have been made to the final official IRS forms after the
draft forms have been posted.
You must include all information on the form. Submit Schedules K-1 to the IRS
at
Substituteforms@irs.govwith “Attn: PDF Submissions” on the subject line or at:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue, NW
Room 6526
Washington, D.C. 20224
March 29, 20105002010–13 I.R.B.

Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065,
and 1120S.
•661109 for Form 1041,
•651109 for Form 1065, and
•671109 for Form 1120S.
Please allow white space around the 6-digit code.
Schedules K-1 that accompany Forms 1041, 1065, 1065-B
, or 1120S must meet all specifi-
cations. The specificationsinclude, but are not limi
ted to, the following requirements.
•You will no longer be able to produce Schedules K-1 that contain only those lines or boxes
that taxpayers are required to use. All lines must be included.
•The words “*See attached statement for additional information.” must be preprinted in the
lower right hand side on Schedules K-1 of Forms 1041, 1065, and 1120S.
•All K-1s that are filed with the IRS should be printed on standard 8.5” x 11” paper (the
international standard (A4) of 8.27” x 11.69” may be substituted).
•Each recipient’s information must be on a separate sheet of paper. Therefore, you must
separate all continuously printed substitutes, by recipient, before filing with the IRS.
•No carbon copies or pressure-sensitive copies will be accepted.
•The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity (es-
tate, trust, partnership, or S corporation) and the recipient (beneficiary, partner, or share-
holder).
•The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1),
the related form number (1041, 1065, 1065-B, or 1120S), and the official schedule name
in substantially the same position and format as shown on the official IRS schedule.
•The Schedule K-1 must contain all the line items as shown on the official form, except for
the instructions, if any are printed on the back of the official Schedule K-1.
•The line items or boxes must be in the same order and arrangement as those on the official
form.
•The amount of each recipient’s share of each item must be shown. Furnishing a total amount
of each item and a percentage (or decimal equivalent) to be applied to such total amount
by the recipient does not satisfy the law and the specifications of this revenue procedure.
•State or local tax-related information maynot be included on the Schedules K-1 filed with
the IRS.
•The entity may have to pay a penalty if substitute Schedules K-1 are filed that do not con-
form to specifications.
•Additionally, the IRS may consider the Schedules K-1 that do not conform to specifications
as not being able to be processed and may return Forms 1041, 1065, 1065-B, or 1120S to
the filer to be filed correctly.
Schedules K-1 that are 2-D bar-coded will continue to require prior approval from the IRS
(see Sections 7.1.3 through 7.1.5).
7.1.2
Special Requirements for
Recipient Copies of Schedules K-1
Standardization for reporting informationis required for recipient copies of substitute
Schedules K-1 of Forms 1041, 1065, 1065-B, and 1120S. Uniform visual standards are
provided to increase compliance by allowing recipients and practitioners to more easily
recognize a substitute Schedule K-1. The entity must furnish to each recipient a copy of
Schedule K-1 that meets the following requirements.
•Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065,
and 1120S.
•661109 for Form 1041,
•651109 for Form 1065, and
•671109 for Form 1120S.
Please allow white space around the 6-digit code.
2010–13 I.R.B.501March 29, 2010

•You will no longer be able to produce Schedules K-1 that contain only those lines or boxes
that taxpayers are required to use. All lines must be included.
•Both pages 1 and 2 of Schedules K-1 of Forms 1065 and 1120S must be provided to each
recipient.
•The words “*See attached statement for additional information.” must be preprinted in the
lower right hand side on Schedules K-1 of Forms 1041, 1065, and 1120S.
•The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity and
recipient.
•The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1),
the related form number (1041, 1065, 1065-B, or 1120S), and the official schedule name
in substantially the same position and format as shown on the official IRS schedule.
•All applicable amounts and information required to be reported must be titled and numbered
in the same manner as shown on the officialIRS schedule. The line items or boxes must
be in the same order and arrangement and must be numbered like those on the official IRS
schedule.
•The Schedule K-1 must contain all items required for use by the recipient. The instructions
to the schedule must identify the line orbox number and code, if any, for each item as
shown in the official IRS schedule.
•The amount of each recipient’s share of each item must be shown. Furnishing a total amount
of each line item and a percentage (or decimal equivalent) to be applied to such total amount
by the recipient does not satisfy the law and the specifications of this revenue procedure.
•Instructions to the recipient that are substantially similar to those on or accompanying the
official IRS schedule must be provided to aid in the proper reporting of the items on the
recipient’s income tax return. Where items are not reported to a recipient because they do
not apply, the related instructions may be omitted.
•The quality of the ink or other material used to generate recipients’ schedules must produce
clearly legible documents. In general, black chemical transfer inks are preferred.
•In order to assure uniformity of substitute Schedules K-1, the paper size should be standard
8.5” x 11” (the international standard (A4) of 8.27” x 11.69” may be substituted.)
•The paper weight, paper color, font type, font size, font color, and page layout must be such
that the average recipient can easily decipher the information on each page.
•State or local tax-related information may be included on recipient copies of substitute
Schedules K-1. All non-tax-related information should be separated from the tax informa-
tion on the substitute schedule to avoid confusion for the recipient.
•The legend “Important Tax Return Document Enclosed” must appear in a bold and con-
spicuous manner on the outside of the envelope that contains the substitute recipient copy
of Schedule K-1.
•The entity may have to pay a penalty if a substitute Schedule K-1 furnished to any recipient
does not conform to the specifications of this revenue procedure and results in impeding
processing.
7.1.3
Requirements
for Schedules K-1 with
Two-Dimensional
(2-D) Bar Codes
In an effort to reduce the burden of manually transcribing tax documents, improve qual-
ity, and increase government efficiency, theIRS is pleased to providespecifications for 2-D
bar-coded substitute Schedules K-1 for Forms 1041, 1065, and 1120S. The IRS encourages
voluntary participation in adding 2-D barcoding.
Note.If software vendors do not want to produce bar-coded Schedules K-1, they may
produce the official IRS Schedules K-1 but cannot use the expedited process for approving
bar-coded K-1s and their parent returns as outlined in Section 7.1.6.
In addition to the requirements in Sections 7.1.1 and 7.1.2, the bar-coded Schedules K-1
must meet the following specifications.
•The bar code should print in the space labeled “For IRS Use Only” on each Schedule K-1.
The entire bar code must print within the “For IRS Use Only” box surrounded by a white
space of at least
1
/4inch.
•Bar codes must print in PDF 417 format.
March 29, 20105022010–13 I.R.B.

•The bar codes must always be in the specifiedformat with every field represented by at
least a field delimiter (carriage return). Leaving out a field in a bar code will cause every
subsequent field to be misread.
•Be sure to include the 6-digit form ID code in the upper right of Schedules K-1 of Forms
1041, 1065, and 1120S.
•661109 for Form 1041,
•651109 for Form 1065, and
•671109 for Form 1120S.
Please allow white space around the 6-digit code.
7.1.4
2-D Bar Code
Specifications for Schedules K-1
Follow these general specifications for preparing all 2-D bar-coded Schedules K-1.
•Numeric fields –
•Do not include leading zeros (except Taxpayer Identification Numbers, Zip Codes, and
percentages).
•Do not use non-numeric characters except that the literal “STMT” can be put in money
fields.
•All money fields should be rounded to the nearest whole dollar amount – If a money
amount ends in 00 to 49 cents, drop the cents; if it ends in 50 to 99 cents, truncate the
cents and increment the dollar amount by one. Use the same rounding technique for
the bar-coded and the printed K-1s.
•All numeric-only fields are right justified (except Taxpayer Identification Numbers and
Zip Codes).
•All field lengths are expressed as maximum lengths. If the value in the field has fewer
positions or the software program does not support that many positions, put in the bar code
only those positions actually used.
•Alpha fields –
•Do not include leading blanks (left justified).
•Do not include trailing blanks.
•Use uppercase alpha characters only.
•Variable fields –
•Do not include leading blanks (left justified).
•Do not include trailing blanks.
•Use uppercase alpha characters, numerics, and special characters as defined in each
field.
•Delimit each field with a carriage return.
•Express percentages as 6-digitnumbers without the percent sign. Left justify with leading
zeroes (for percentages less than 100%) and no decimal point (decimal point is assumed be-
tween 3rd and 4th positions). Examples: 25.32% expressed as “025320”; 105% expressed
as “105000”; 8.275% expressed as “008275”; 10.24674% expressed as “010247”.
•It is vital that the print routine reinitialize the bar code prior to printing each succeeding
K-1. Failure to do this will result in each K-1 for a parent return having the same bar code
as the document before it.
2010–13 I.R.B.503March 29, 2010

7.1.5
Approval
Process for
Bar-Coded Schedules K-1
Prior to releasing commercially available tax software that creates bar-coded Schedules K-1,
the printed schedule and the bar code must both be tested. Bar code testing must be done
using the final official IRS Schedule K-1. Bar code approval requests must be resubmitted for
any subsequent changes to the official IRS form that would affect the bar code. Below are
instructions and a sequence of events that will comprise the testing process.
•The IRS has released the final Schedule K-1 bar-code specifications by publishing them
on the IRS.gov website (seeh
ttp://www.irs.gov/efile/article/0,,id=129860,00.html).
•The IRS will publish a set of test documents that will be used to test the ability of tax
preparation software to create bar codes in the correct format.
•Software developers will submit two identical copies of the test documents – one to the
IRS and one to a contracted testing vendor.
•The IRS will use one set to ensure the printed schedules comply withstandard substitute
forms specifications.
•If the printed forms fail to meet the substitute form criteria, the IRS will inform the software
developer of the reason for noncompliance.
•The software developer must resubmit the Schedule(s) K-1 until they pass the substitute
forms criteria.
•The testing vendor will review the bar codes to ensure they meet the published bar-code
specifications.
•If the bar code(s) does not meet published specifications, the testing vendor will contact
the software developer directly informing them of the reason for noncompliance.
•Software developers must submit new bar-coded schedules until they pass the bar-code
test.
•When the bar code passes, the testing vendor will inform the IRS that the developer has
passed the bar-code test and the IRS will issue an overall approval for both the substitute
form and the bar code.
•After receiving this consolidated response, the software vendor is free to release software
for tax preparation as long as any subsequent revisions to the schedules do not change the
fields.
•Find the mailing address for the testing vendor below. Separate and simultaneous mailings
to the IRS and the vendor will reduce testing time.
7.1.6
Procedures
for Reducing Testing Time
In order to help provide incentives to the software development community to participate
in the Schedule K-1 2-D project, the IRS has committed to expediting the testing of bar-coded
Schedules K-1 and their associated parent returns. To receive this expedited service, follow
the instructions below.
•Mail the parent returns (Forms 1065, 1120S,1041) and associated bar-coded Schedule(s)
K-1 to the appropriate address below in a separate package from all other approval requests.
Internal Revenue Service
Attn: Bar-Coded K-1
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue, NW
Room 6526
Washington, D.C. 20224
•Mail one copy of the parent form(s) and Schedule(s) K-1 to the IRS and another copy to
the testing vendor at the address below.
Northrop Grumman Information Tech
Attn: Cecilia Siamundo, Quality Assurance Lead
1800 Alexander Bell Drive
Suite 300
Reston, VA 20191
Phone: 703–453–1200
March 29, 20105042010–13 I.R.B.

•Include multiple email and phone contact points in the packages.
•While the IRS can expedite bar-coded Schedules K-1 and their associated parent returns,
it cannot expedite the approvalof non-associated tax returns.
Section 7.2 – Procedures for Printing IRS Envelopes
7.2.1
Procedures for Printing IRS
Envelopes
Organizations are permitted to produce substitute tax return envelopes. Use of substitute
return envelopes that comply with the requirements set forth in this section will assist in de-
livery of mail by the U.S. Postal Service and facilitate internal sorting at the Internal Revenue
Service Centers.
Use the following 5-digit ZIP codes when mailing returns to the IRS Service Centers:
Service CenterZIP Code
Atlanta, GA39901
Kansas City, MO64999
Austin, TX73301
Cincinnati, OH
45999
Ogden, UT84201
Fresno, CA93888
7.2.2
Sorting Returns
by Form Type
Sorting returns by form type is accomplished bythe preprinted bar codes on return envelopes
included in each specific type of form or package mailed to the taxpayers. The 32-bit bar code
on the left of the address on each envelope identifies the type of form the taxpayer is filing, and
it assists in consolidating like returns for processing. Failure to use the envelopes furnished by
the IRS results in additional processing time and effort, and possibly delays the timely deposit
of funds, processing of returns,and issuance of refund checks.
7.2.3
ZIP+4 or 9-Digit
ZIP Codes
The IRS will not furnish or sell bulk quantities of preprinted tax return envelopes to tax-
payers or tax practitioners. A suitable alternative has been developed that will accommodate
the sorting needs of both the IRS and the United States Postal Service (USPS). The alternative
is based on the use of ZIP+4, or 9-digit ZIP codes, for mailing various types of tax returns to
the IRS Service Centers. The IRS uses the last four digits to identify and sort the various form
types into separate groups for processing. Thelist of 4-digit extensions with the related form
designations is provided below.
ZIP+4Package
XXXXX-00021040
XXXXX-0005
941
XXXXX-0006940
XXXXX-0008943
XXXXX-0011
1065
2010–13 I.R.B.505March 29, 2010

ZIP+4Package
XXXXX-00121120
XXXXX-00131120S
XXXXX-00141040EZ
XXXXX-0015
1040A
XXXXX-0027990
XXXXX-00312290
7.2.4
Guidelines for
Having Envelopes Preprinted
You may use the preparers’ company names, addresses, and logos as long as you do not
interfere with the clear areas. The government recommends that the envelope stocks have an
average opacity of not less than 89 percent andcontain a minimum of 50 percent waste paper.
Use of carbon based ink is essential for effective address and bar-code reading. Envelope
construction can be of side seam or diagonal seam design. The government recommends that
the size of the envelope should be 5
3
/4inches by 9 inches. Continuous pin-fed construction
is not desirable, but is permissible, if the glued edge is at the top. This requirement is firm
because mail opening equipment is designed to open the bottom edge of each envelope.
7.2.5
Envelopes/ZIP
Codes
The above procedures or guidelines are written for the user having envelopes preprinted.
Many practitioners may not wish to have large quantities of envelopes with differing ZIP
codes/form designations preprinted due to low volume, warehousing, waste, etc. In this case,
the practitioner can type or machine print the addresses with the appropriate ZIP codes to ac-
commodate sorting. If the requirements/guidelines outlined in this section cannot be met, then
use only the appropriate 5-digit service center ZIP code.
Section 7.3 – Guidelines for Substitute Forms 8655
7.3.1
Increased Standardization for
Forms 8655
Increased standardization for reporting information on substitute Forms 8655 is now re-
quired to aid in processing and for compliance purposes. Please follow the guidelines in Sec-
tion 7.3.2.
7.3.2
Requirements for Substitute
Forms 8655
Please follow these specific requirements when producing substitute Forms 8655.
•The first line of the title must be “Reporting Agent Authorization.”
•If you want to include a reference to “State Limited Power of Attorney,” it can be in paren-
theses under the title. “State” must be the first word within the parentheses.
•You must include “Form 8655” on the form.
•While the line numbers do not have to match the official form, the sequence of the infor-
mation must be in the same order.
•The size of any variable data must be printed in a font no smaller than 10-point.
•For adequate disclosure checks, the following must be included for each taxpayer:
(a) Name,
(b) EIN, and
March 29, 20105062010–13 I.R.B.

(c) Address.
•At this time, Form 944 will not be required if Form 941 is checked. Only those forms that
the reporting agent company supports need to be listed.
•The jurat (perjury statement) must be identical with the exception of references to line
numbers.
•A contact name and number for the reporting agent is not required.
•You must include line 17, or the equivalent line, and it must include two checkboxes.
•Any state information included should be contained in a separate section of the substitute
form. Preferably this information will be in the same area as line 19 of the official form.
•All substitute Forms 8655 must be approved by the Substitute Forms Unit as outlined in
the Form 8655 specifications in Publication 1167.
•If you have not already been assigned a 3-letter source code, you will be given one when
your substitute form is submitted for approval. This source code should be included in the
lower left corner of the form.
•The 20-day assumed approval policy does not apply to Form 8655 approvals.
Part 8
Alternative Methods of Filing
Section 8.1 – Forms for Electronically Filed Returns
8.1.1
Electronic Filing
Program
Electronic filing is a method by which authorized providers transmit tax return info
rmation
to an IRS Service Center in the format of theofficial IRS forms. The IRS accepts both r
efund
and balance due Form 1040, 1040A, 1040EZ, or 1040SS (PR) tax returns that are filed e
lec-
tronically.
8.1.2
Applying to
Participate in IRSe-file
Anyone wishing to participate in IRSe-fileof tax returns must submit ane-fileapplica-
tion. The application can be completed and submitted electronically on the IRS website at
w
ww.irs.govafter first registering fore-services on the website.
8.1.3
Obtaining the
Taxpayer Signature / Submission
of Required Paper Documents
Beginning in January 2009, Form 8453-OL, U.S. Individual Income Tax Declaration for
an IRSe-fileOnline Return, is obsolete and can no longer be used as an IRSe-filesignature
document. Taxpayers choosing to electronicallyprepare and file their return will be required
to use the Self-Select PIN method as their signature.
Electronic Return Originators (EROs) cane-fileindividual income tax returns only if the
returns are signed electronically using eitherthe Self-Select or Practitioner PIN method.
Taxpayers must use Form 8453, U.S. Individual Income Tax Transmitt
al for an IRSe-file
Return, to send supporting documents that are required to be submit
tedtotheIRS.
For specific information about electronic filing, refer to Publication 1345, Handbook for
Authorized IRSe-fileProviders of Individual Income Tax Returns.
2010–13 I.R.B.507March 29, 2010

8.1.4
Guidelines for
Preparing Substitute Forms in the
Electronic Filing Program
A participant in the electronic filing program, who wants to develop a substitute form should
follow the guidelines throughout this publication and send a sample form for approval to the
Substitute Forms Unit at the address in Part 1. If you do not prepare Substitute Form 8453
using a font in which all IRS wording fitson a single page, the form will not be accepted.
Note.Use of unapproved forms could result in suspension of the participant from the elec-
tronic filing program.
Section 8.2 – Effect on Other Documents
8.2.1
Effect on Other
Documents
This revenue procedure supersedes Revenue Procedure 2009–17, 2009–07 I.R.B. 517.
March 29, 20105082010–13 I.R.B.

2010–13 I.R.B.509March 29, 2010

March 29, 20105102010–13 I.R.B.

2010–13 I.R.B.511March 29, 2010

March 29, 20105122010–13 I.R.B.

2010–13 I.R.B.513March 29, 2010

March 29, 20105142010–13 I.R.B.

Part IV. Items o
fGeneralInterest
Extension of T
ime to Submit
Comments on An
nouncement
2010–9 Regard
ing Reporting
Uncertain Ta
x Positions, Draft
Schedule, an
d Implementation
Date
Announcemen
t 2010–17
In Announceme
nt 2010–9, 2010–7
I.R.B. 408, t
he Internal Revenue Service
announced th
at it is developing a sched-
ule requirin
g certain business taxpayers
to report unc
ertain tax positions on their
tax returns
and requested comments by
March 29, 20
10.
Since that a
nnouncement, the Service
has receive
d a number of questions and
comments on
the proposal. Several infor-
mal comment
s asked the Service to clar-
ify whethe
r taxpayers will be required to
file the ne
w schedule with returns relat-
ingto2009
tax years and whether a draft
schedule a
nd instructions will be released.
Other comm
ents asked for clarification re-
garding t
he scope and implementation of
the propo
sal, such as its application to
pass-thr
ough entities and tax-exempt en-
tities, a
nd potential duplication of report-
ing with d
isclosures made on other forms
(such as
the Form 8275,Disclosure State-
ment,an
d the Form 8275-R,Regulation
Disclos
ure Statement). Some informal and
written
comments also asked for an exten-
sion of the com
ment period for up to 60
days to allow s
ufficient time to study the
proposal and a
nalyze its impact.
The Service co
ntinuestoworkonde-
veloping the p
roposal contained in the An-
nouncement, i
ncluding development of the
schedule and i
mplementing instructions.
The Service’
s target date for releasing a
draft schedu
le based on the proposal de-
scribedinAn
nouncement 2010–9, along
with draft in
structions, is early April 2010
with a comme
nt period ending on June 1,
2010. The Se
rvice expects the draft sched-
ule and inst
ructions will clarify some of
the issues t
hat have already been brought
to the Serv
ice’s attention, provide addi-
tional inf
ormation concerning the proposal
described
in Announcement 2010–9, and
facilitat
e comment on the proposal. The
draft inst
ructions may not completely re-
solve all
questions about the proposal and
may indic
ate that the Service will reserve
making fi
nal decisions on certain issues
until aft
er the comment period has ended
and all c
omments have been received and
analyze
d.
Additio
nally, as the proposal is further
develop
ed and finalized, the Service rec-
ognizes
the need to adjust its programs to
ensure t
he appropriate use of the data from
the sche
dule, and to address possible in-
crease
s in demand for guidance and issue
resolu
tion.
The Ser
vice plans to require the filing
of the n
ew schedule for returns relating to
the calendar y
ear 2010 and for fiscal years
thatbeginin2
010. The schedule will not
be implemente
d for 2009 tax returns filed
in 2010. To all
ow taxpayers and practition-
ers the opport
unity to provide comprehen-
sive comment
s both on the proposal and
on the implem
enting schedule and instruc-
tions, the ti
me for submitting comments in
response to A
nnouncement 2010–9 is ex-
tended to Ju
ne 1, 2010.
The Service i
nvites comment on the fol-
lowing matt
ers, as well as those described
in Announce
ment 2010–9:
1. Do the dis
closures required by the
new schedul
e duplicate those required by
other forms
,thusmakingforms,suchas
the Form 827
5 and 8275-R, unnecessary or
redundant
in some circumstances;
2. What type
of uncertain tax positions
should be r
eported by pass-through entities
and tax-ex
empt entities; and
3. How unce
rtain tax positions should
be reporte
dinvariousrelatedentitycon-
texts, suc
h as how members of a consoli-
dated grou
p for financial statement or tax
return pu
rposes or entities that are disre-
garded fo
r federal tax purposes should re-
port unce
rtain tax positions.
The princ
ipal author of this announce-
ment is Ka
thryn Zuba of the Office of
Associat
e Chief Counsel (Procedure &
Adminis
tration). For further informa-
tion reg
arding this announcement, con-
tact Ms.
Zuba at (202) 622–3400 (not a
toll-fr
ee call).
2010–13 I.R.B.515March 29, 2010

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.
March 29, 2010i2010–13 I.R.B.

Numerical Finding List
1
Bulletins 2010–1 through 2010–13
Announcements:
2010-1, 2010-4 I.R.B.333
2010-2, 2010-2 I.R.B.271
2010-3, 2010-4 I.R.B.333
2010-4, 2010-5 I.R.B.384
2010-5, 2010-6 I.R.B.402
2010-6, 2010-6 I.R.B.402
2010-7, 2010-6 I.R.B.403
2010-8, 2010-7 I.R.B.408
2010-9, 2010-7 I.R.B.408
2010-10, 2010-7 I.R.B.410
2010-11, 2010-10 I.R.B.438
2010-12, 2010-7 I.R.B.410
2010-13, 2010-8 I.R.B.426
2010-14, 2010-11 I.R.B.449
2010-15, 2010-10 I.R.B.438
2010-16, 2010-11 I.R.B.450
2010-17, 2010-13 I.R.B.515
2010-18, 2010-12 I.R.B.460
Notices:
2010-1, 2010-2 I.R.B.251
2010-2, 2010-2 I.R.B.251
2010-3, 2010-2 I.R.B.253
2010-4, 2010-2 I.R.B.253
2010-5, 2010-2 I.R.B.256
2010-6, 2010-3 I.R.B.275
2010-7, 2010-3 I.R.B.296
2010-8, 2010-3 I.R.B.297
2010-9, 2010-3 I.R.B.298
2010-10, 2010-3 I.R.B.299
2010-11, 2010-4 I.R.B.326
2010-12, 2010-4 I.R.B.326
2010-13, 2010-4 I.R.B.327
2010-14, 2010-5 I.R.B.344
2010-15, 2010-6 I.R.B.390
2010-16, 2010-6 I.R.B.396
2010-19, 2010-7 I.R.B.404
2010-20, 2010-8 I.R.B.422
2010-21, 2010-12 I.R.B.451
2010-22, 2010-10 I.R.B.435
2010-23, 2010-11 I.R.B.441
2010-24, 2010-12 I.R.B.452
Proposed Regulations:
REG-132232-08, 2010-6 I.R.B.401
REG-137036-08, 2010-6 I.R.B.398
REG-101896-09, 2010-5 I.R.B.347
REG-117501-09, 2010-11 I.R.B.442
REG-131028-09, 2010-4 I.R.B.332
REG-148681-09, 2010-11 I.R.B.443
Revenue Procedures:
2010-1, 2010-1 I.R.B.1
2010-2, 2010-1 I.R.B.90
2010-3, 2010-1 I.R.B.110
2010-4, 2010-1 I.R.B.122
2010-5, 2010-1 I.R.B.165
2010-6, 2010-1 I.R.B.193
2010-7, 2010-1 I.R.B.231
2010-8, 2010-1 I.R.B.234
2010-9, 2010-2 I.R.B.258
2010-10, 2010-3 I.R.B.300
2010-11, 2010-2 I.R.B.269
2010-12, 2010-3 I.R.B.302
2010-13, 2010-4 I.R.B.329
2010-14, 2010-12 I.R.B.456
2010-15, 2010-7 I.R.B.404
2010-17, 2010-8 I.R.B.425
2010-18, 2010-9 I.R.B.451
2010-19, 2010-13 I.R.B.469
2010-21, 2010-13 I.R.B.473
Revenue Rulings:
2010-1, 2010-2 I.R.B.248
2010-2, 2010-3 I.R.B.272
2010-3, 2010-3 I.R.B.272
2010-4, 2010-4 I.R.B.309
2010-5, 2010-4 I.R.B.312
2010-6, 2010-6 I.R.B.387
2010-7, 2010-8 I.R.B.417
2010-8, 2010-10 I.R.B.432
2010-9, 2010-13 I.R.B.461
2010-10, 2010-13 I.R.B.461
Treasury Decisions:
9474, 2010-4 I.R.B.322
9475, 2010-4 I.R.B.304
9476, 2010-5 I.R.B.336
9477, 2010-6 I.R.B.385
9478, 2010-4 I.R.B.315
9480, 2010-11 I.R.B.439
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin
2009–52, dated December 28, 2009.
2010–13 I.R.B.iiMarch 29, 2010

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2010–1 through 2010–13
Announcements:
2009-51
Supplemented and superseded by
Ann. 2010-16, 2010-11 I.R.B.450
2010-4
Corrected by
Ann. 2010-10, 2010-7 I.R.B.410
Notices:
2005-88
Superseded by
Notice 2010-13, 2010-4 I.R.B.327
2008-41
Modified by
Notice 2010-7, 2010-3 I.R.B.296
2008-55
Modified by
Notice 2010-3, 2010-2 I.R.B.253
2008-88
Modified by
Notice 2010-7, 2010-3 I.R.B.296
2008-113
Modified by
Notice 2010-6, 2010-3 I.R.B.275
2008-115
Modified by
Notice 2010-6, 2010-3 I.R.B.275
2009-11
Amplified by
Notice 2010-9, 2010-3 I.R.B.298
2009-13
Obsoleted by
T.D. 9478, 2010-4 I.R.B.315
REG-131028-09, 2010-4 I.R.B.332
2009-38
Amplified and superseded by
Notice 2010-2, 2010-2 I.R.B.251
2009-62
Modified and supplemented by
Notice 2010-23, 2010-11 I.R.B.441
Proposed Regulations:
REG-127270-06
Hearing scheduled by
Ann. 2010-6, 2010-6 I.R.B.402
Revenue Procedures:
80-59
Modified and superseded by
Rev. Proc. 2010-11, 2010-2 I.R.B.269
87-35
Obsoleted by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2008-14
Updated by
Rev. Proc. 2010-15, 2010-7 I.R.B.404
2009-1
Superseded by
Rev. Proc. 2010-1, 2010-1 I.R.B.1
2009-2
Superseded by
Rev. Proc. 2010-2, 2010-1 I.R.B.90
2009-3
Superseded by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2009-4
Superseded by
Rev. Proc. 2010-4, 2010-1 I.R.B.122
2009-5
Superseded by
Rev. Proc. 2010-5, 2010-1 I.R.B.165
2009-6
Superseded by
Rev. Proc. 2010-6, 2010-1 I.R.B.193
2009-7
Superseded by
Rev. Proc. 2010-7, 2010-1 I.R.B.231
2009-8
Superseded by
Rev. Proc. 2010-8, 2010-1 I.R.B.234
2009-9
Superseded by
Rev. Proc. 2010-9, 2010-2 I.R.B.258
2009-15
Amplified and superseded by
Rev. Proc. 2010-12, 2010-3 I.R.B.302
2009-17
Superseded by
Rev. Proc. 2010-21, 2010-13 I.R.B.473
2009-25
Superseded by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2009-55
Corrected by
Ann. 2010-11, 2010-10 I.R.B.438
Revenue Procedures— Continued:
2010-1
Corrected by
Ann. 2010-5, 2010-6 I.R.B.402
Revenue Rulings:
67-436
Obsoleted by
REG-101896-09, 2010-5 I.R.B.347
92-19
Supplemented in part by
Rev. Rul. 2010-7, 2010-8 I.R.B.417
2008-52
Supplemented and superseded by
Rev. Rul. 2010-2, 2010-3 I.R.B.272
Treasury Decisions:
9424
Corrected by
Ann. 2010-18, 2010-12 I.R.B.460
9443
Corrected by
Ann. 2010-8, 2010-7 I.R.B.408
9458
Corrected by
Ann. 2010-7, 2010-6 I.R.B.403
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin 2009–52, dated December 28,
2009.
March 29, 2010iii2010–13 I.R.B.

INDEX
Internal Revenue Bulletins 2010–1 through
2010–13
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers 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
Correction of certain failures of nonqualified deferred compen-
sation plans to comply with the plan document requirements
of section 409A (Notice 6) 3,275
Determination letters, issuing procedures (RP 6) 1,193
FBAR:
Administrative relief for signature authority and certain com-
mingled funds (Notice 23) 11,441
Filing requirements (Ann 16) 11,450
Full funding limitations, weighted average interest rates, seg-
ment rates for:
January 2010 (Notice 14) 5,344
February 2010 (Notice 20) 8,422
March 2010 (Notice 24) 12,452
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,110
Associate Chief Counsel (International) (RP 7) 1,231
And general information letters, procedures (RP 4) 1,122
User fees, request for letter rulings (RP 8) 1,234
Qualified plans:
Changes in funding method (Ann 3) 4,384
Military services, HEART Act (Notice 15) 6,390
Request for information regarding lifetime income options for
participants and beneficiaries in retirement plans and IRAs
(REG–148681–09) 12,443
Technical advice to IRS employees (RP 5) 1,165
EMPLOYMENT TAX
Designation of section 3504 agent for FUTA tax purposes
(REG–137036–08) 6,398
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1)1,1;correction(Ann5)6,402
Proposed regulations:
26 CFR 31.3504, revised; section 3504 agent employment tax
liability (REG–137036–08) 6,398
Technical Advice Memoranda (TAMs) (RP 2) 1,90
ESTATE TAX
FBAR:
Administrative relief for signature authority and certain com-
mingled funds (Notice 23) 11,441
Filingrequirements(Ann16)11,450
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Technical Advice Memoranda (TAMs) (RP 2) 1,90
EXCISE TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Technical Advice Memoranda (TAMs) (RP 2) 1,90
EXEMPT ORGANIZATIONS
FBAR:
Administrative relief for signature authority and certain com-
mingled funds (Notice 23) 11,441
Filingrequirements(Ann16)11,450
Letters rulings:
And determination letters:
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,110
And general information letters, procedures (RP 4) 1,122
Exemption application determination letter rulings under sec-
tions 501 and 521 (RP 9) 2,258
User fees, request for letter rulings (RP 8) 1,234
Revocations (Ann 1) 4,333;(Ann4)5,384; correction (Ann 10)
7,410;(Ann13)8,426;(Ann15)10,438;(Ann14)11,449
Technical advice to IRS employees (RP 5) 1,165
GIFT TAX
FBAR:
Administrative relief for signature authority and certain com-
mingled funds (Notice 23) 11,441
Filingrequirements(Ann16)11,450
2010–13 I.R.B.ivMarch 29, 2010

GIFT TAX—Cont.
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Treatment of transfers made in trust during 2010 (Notice 19) 7,
404
INCOME TAX
Apportionment of tax items among the members of a controlled
group of corporations (TD 9476) 5,336
Arbitrage treatment of certain perpetual funds (Notice 5) 2,256
Basis reporting by securities brokers and basis determination for
stock (REG–101896–09) 5,347
Bonds:
Midwestern Disaster Area Bonds, Hurricane Ike Bonds, Gulf
Opportunity Zone Bonds (Notice 10) 3,299
Qualified zone academy bond limitation for 2010 (Notice 22)
10,435
Reissuance of tax-exempt bonds (Notice 7) 3,296
Consumer Price Index (CPI) adjustments, certain loans under
section 1274A for 2010 (RR 2) 3,272
Corporate reorganizations, distribution under sections
368(a)(1)(D) and 354(b)(1)(B) (TD 9475) 4,304
Credits, low-income housing tax credit, 2010 population figures
used for calculation (Notice 21) 12,451
Damages received on account of personal physical injuries or
physical sickness, hearing on REG–127270–06 (Ann 6) 6,402
Deemed dispositions by individuals emigrating from Canada (RP
19) 13,469
Depreciation, 2010, limitationson depreciation deductions for
passenger automobiles (RP 18) 9,427
Disclosure of activity grouping under Code section 469 (RP 13)
4,329
Disclosure or use of information by return preparers:
Amendments to section 7216 regulations (TD 9478) 4,315;
(REG–131028–09) 4,332
In communicating with taxpayers (RR 4) 4,309
In connection with professional liability insurance (RR 5) 4,
312
Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 12) 7,410
Electronic filing, waiver request procedures (Notice 13) 4,327
Employer-provided vehicles,cents-per-mile rule, maximum
2010 values for vehicle (RP 10) 3,301
Extension of timeframe for disclosures to persons designated in a
written request or consent pursuant to section 6103(c) (Notice
8) 3,297
Extension of time to submit comments on Announcement
2010-9, regarding reporting uncertain tax positions, draft
schedule, and implementation date (Ann 17) 13,515
FBAR:
Administrative relief for signature authority and certain com-
mingled funds (Notice 23) 11,441
Filing requirements (Ann 16) 11,450
INCOME TAX—Cont.
Foreign earned income exclusion (RP 17) 8,425
Information reporting, deadline to furnish payee statements (No-
tice 9) 3,298
Insurance companies:
Interest rate tables (RR 7) 8,417
Loss payment patterns and discount factors for the 2009 acci-
dent year, correction to RP 2009-55 (Ann 11) 10,438
Interest:
Certain applicable high yield discount obligations issued in
2010 (Notice 11) 4,326
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2010 (RR 1) 2,248;
February 2010 (RR 6) 6,387
March 2010 (RR 8) 10,432
Rates, underpayments and overpayments, quarter beginning:
April 1, 2010 (RR 9) 13,461
Investment in U.S. property, extension of regulations (Notice 12)
4,326
Letter rulings:
And determination letters, areas which will not be issued
from:
Associate Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,110
Associates Chief Counsel(International) (RP 7) 1,231
And information letters issued byAssociate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1;
correction (Ann 5) 6,402
Like-kind exchanges (RP 14) 12,456
Modification to consolidated return regulation (TD 9458) per-
mitting an election to treat a liquidation of a target, followed
by a recontribution to a new target, as a cross-chain reorgani-
zation(Ann7)6,403
Penalties, substantial understatement, preparer penalty (RP 15)
7,404
Personal exemption, additional for Hurricane Katrina displaced
individuals (TD 9474) 4,322
Postponement of certain tax-related deadlines by reason of a fed-
erally declared disaster or terroristic or military action, correc-
tiontoTD9443(Ann8)7,408
Proposed Regulations:
26 CFR 1.304–4 revised; use of controlled corporations to
avoid the application of section 304 (REG–132232–08) 6,
401
26 CFR 1.408–7, amended; 1.1012–1, amended; 1.6039–2,
amended; 1.6042–4, amended; 1.6044–5, amended;
1.6045–1 thru –5, amended; 1.6045A–1, added;
1.6045B–1, added; 1.6049–6, amended; 31.3406(b)(3)–2,
amended; 31.6051–4, amended; 301.6721–1, amended;
301.6722–1, amended; basis reporting by securities bro-
kers and basis determination for stock (REG–101896–09)
5,347
26 CFR 1.6654–2, amended; reduced 2009 estimated income
tax payments for individuals with small business income
(REG–117501–09) 11,466
March 29, 2010v2010–13 I.R.B.

INCOME TAX—Cont.
26 CFR 301.7216–2, amended; amendments to section 7216
regulations-disclosure or use of information by preparers of
returns (REG–131028–09) 4,332
Publication:
1167, General Rules and Specifications for Substitute Forms
and Schedules (RP 21) 13,473
Qualified disaster, Haiti earthquake occurring in January 2010
(Notice 16) 6,396
Reduced 2009 estimated income tax payments for indi-
viduals with small business income (TD 9480) 11,439;
(REG–117501–09) 11,442
Regulations:
26 CFR 1.304–4, added; 1.304–4T, revised; use of controlled
corporations to avoid the application of section 304 (TD
9477) 6,385
26 CFR 1.358–2, amended; 1.368–2, amended; 1.368–2T,
removed; 1.1502–13, amended; corporate reorganizations,
distribution under sections 368(a)(1)(D) and 354(b)(1)(B)
(TD 9475) 4,304
26 CFR 1.924(a), amended; 1.1502–43, amended;
1.1502–43T, removed; 1.1502–47, amended; 1.1502–47T,
removed; 1.561–0 thru –3, added;1.1561–0T thru –3T,
removed; apportionment of tax items among the members
of a controlled groups of corporation (TD 9476) 5,336
26 CFR 1.1502–13T, 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; correction to TD 9458 (Ann
7) 6,403
26 CFR 1.6654–2, amended; 1.6654–2T, added; reduced 2009
estimated income tax payments for individuals with small
business income (TD 9480) 11,439
26 CFR 1.9300–1, added; 1.9300–1T, removed; reduction in
taxable income for housing Hurricane Katrina displaced in-
dividuals (TD 9474) 4,322
26 CFR 301.7216–0, –2, amended; 301.7216–0T, –2T, added;
amendments to section 7216 regulations-disclosure or use
of information by preparers of returns (TD 9478) 4,315
Requirements, trustee of a blind trust (RP 11) 2,269
Revocations, exempt organizations (Ann 1) 4,333;(Ann4)5,
384;correction(Ann10)7,410; (Ann 13) 8,426;(Ann15)
10,438;(Ann14)11,449
Section 305 distributions of stock (RP 12) 3,302
Section 338 election, qualified foreign contract (Notice 1) 2,251
Section 382 limitation, ownership changes, pre-change losses
(Notice 2) 2,251
Section 385, auction rate preferred stock (Notice 3) 2,253
Section 1256(g)(7)(C) qualified board or exchange (RR 3) 3,272
Standard Industry Fare Level (SIFL) formula (RR 10) 13,461
Substitute forms and schedules, general rules and specifications
(RP 21) 13,473
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Tax conventions:
U.S.-Canada Tax Convention,Article XIII(7) election (RP
19) 13,469
INCOME TAX—Cont.
U.S.-Germany agreement with respect to consular employees
(Ann 2) 2,271
Transfers of stock or securities to foreign corporations under sec-
tion 304 (TD 9477) 6,385; (REG–132232–08) 6,401
Uncertain tax positions, policy of restraint (Ann 9) 7,408
Unified rule for loss on subsidiary stock, correction to TD 9424
(Ann 18) 12,460
Widely held fixed investment trusts (WHIFT) transition guid-
ance (Notice 4) 2,253
SELF-EMPLOYMENT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Technical Advice Memoranda (TAMs) (RP 2) 1,90
2010–13 I.R.B.viMarch 29, 2010

March 29, 20102010–13 I.R.B.

2010–13 I.R.B.March 29, 2010

March 29, 20102010–13 I.R.B.

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