Internal Revenue Bulletin 2011-18 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 201
1-18
May 2, 2011
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Notice 2011–32, page 737.
Japan earthquake and tsunami in 2011.This notice des-
ignates the Japan earthquake and tsunami occurring in March
2011 as a qualified disaster for purposes of section 139 of the
Code.
Rev. Proc. 2011–22, page 737.
This procedure provides a safe harbor method of accounting
for determining the recovery periods for depreciation of certain
tangible assets used by wireless telecommunications carriers.
The procedure also explains how a taxpayer may obtain auto-
matic consent from the Commissioner of Internal Revenue to
change to the safe harbor method of accounting provided. Rev.
Proc. 2011–14 modified and amplified.
Rev. Proc. 2011–27, page 740.
This procedure provides two alternative safe harbor ap-
proaches that taxpayers may use to determine whether
expenditures to maintain, replace, or improve wireline network
assets must be capitalized under section 263(a) of the Code:
a network asset maintenance allowance method or a units of
property method. This procedure also provides procedures
for obtaining automatic consent to change to either safe
harbor method. A companion revenue procedure (Rev. Proc.
2011–28) provides similar safe harbor approaches that may
be used for wireless network assets. Rev. Proc. 2011–14
modified.
Rev. Proc. 2011–28, page 743.
This procedure provides two alternative safe harbor ap-
proaches that taxpayers may use to determine whether
expenditures to maintain, replace, or improve wireless network
assets must be capitalized under section 263(a) of the Code:
a network asset maintenance allowance method or a units of
property method. This procedure also provides procedures
for obtaining automatic consent to change to either safe
harbor method. A companion revenue procedure (Rev. Proc.
2011–27) provides similar safe harbor approaches that may
be used for wireline network assets. Rev. Proc. 2011–14
modified.
Rev. Proc. 2011–29, page 746.
This procedure provides a safe harbor election for allocating
success-based fees paid in business acquisitions or reorga-
nizations described in regulations section 1.263(a)–5(e)(3).
In lieu of maintaining the documentation required by section
1.263(a)–5(f), this safe harbor permits electing taxpayers to
treat 70 percent of the success-based fee as an amount that
does not facilitate the transaction. The remaining portion of
the fee must be capitalized as an amount that facilitates the
transaction.
Announcement 2011–28, page 748.
This announcement provides notice of a public hearing on
proposed regulations relating to the payment of rewards
under section 7623(a) of the Code and awards under section
7623(b). The guidance is necessary to clarify the definition of
proceeds of amounts collected and collected proceeds under
section 7623. This regulation provides needed guidance to
the general public as well as officers and employees of the
IRS who review claims under section 7623. A public hearing
is scheduled for May 11, 2011.
(Continued on the next page)
Finding Lists begin on page ii.

ADMINISTRATIVE
T.D. 9519, page 734.
Final regulations under section 7811 of the Code relate to the
issuance of taxpayer assistance orders.
T.D. 9520, page 730.
Final regulations under section 6323 of the Code provide rules
relating to the validity and priority of the Federal tax lien against
certain persons.
Announcement 2011–29, page 748.
This announcement reinstates the enrollment renewal period
under section 10.6(d) of the regulations governing practice be-
fore the IRS, Treasury Department Circular No. 230, for en-
rolled agents whose social security number or tax identification
numbers end in 4, 5, or 6.
May 2, 20112011–18 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2011–18 I.R.B.May 2, 2011

May 2, 20112011–18 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 167.—
Depreciation
Asafeharborm
ethod of accounting is provided for
determining t
he recovery periods for depreciation of
certain tangi
ble assets used by wireless telecommuni-
cations carri
ers. The revenue procedure also explains
how a taxpaye
r may obtain automatic consent from
the Commissi
oner of Internal Revenue to change to
thesafeharb
or method of accounting provided. See
Rev. Proc. 20
11-22, page 737.
Section 168.—Accelerated
Cost Recovery System
A safe harbor method of accounting is provided for
determining the recovery periods for depreciation of
certain tangible assets used by wireless telecommuni-
cations carriers. The revenueprocedure also explains
how a taxpayer may obtain automatic consent from
the Commissioner of Internal Revenue to change to
the safe harbor method of accounting provided. See
Rev. Proc. 2011-22, page 737.
Section 263.—Capital
Expenditures
Two alternative safe harbor approaches are pro-
vided that taxpayers may use to determine whether
expenditures to maintain, replace, or improve wire-
line network assets must be capitalized under sec-
tion 263(a) of the Internal Revenue Code: a network
asset maintenance allowance method or a units of
property method. A companion revenue procedure
(Rev. Proc. 2011–28) provides similar safe harbor
approaches that may be used for wireless network as-
sets. See Rev. Proc. 2011-27, page 740.
Two alternative safe harbor approaches are pro-
vided that taxpayers may use to determine whether
expenditures to maintain, replace, or improve wire-
less network assets must be capitalized under sec-
tion 263(a) of the Internal Revenue Code: a network
asset maintenance allowance method or a units of
property method. A companion revenue procedure
(Rev. Proc. 2011–27) provides similar safe harbor
approaches that may be used for wireline network as-
sets. See Rev. Proc. 2011-28, page 743.
Asa
fe harbor method of accounting is provided
for
allocating success-based fees paid in business ac-
qui
sitions or reorganizations described in regulations
sec
tion 1.263(a)–5(e)(3). In lieu of maintaining the
doc
umentation required by section 1.263(a)–5(f), this
sa
fe harbor permits electing taxpayers to treat 70 per-
ce
nt of the success-based fee as an amount that does
no
t facilitate the transaction. The remaining portion
of
the fee must be capitalized as an amount that facil-
itates the tra
nsaction. See Rev. Proc. 2011-29, page
746.
Section 6323.—Validity
and Priority Against
Certain Persons
26 CFR 301.6323(b)–1: Protection for certain inter-
ests even though notice filed.
T.D. 9520
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 301
Withdrawal of Regulations
Related to Validity and Priority
of Federal Tax Lien
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains final
regulations related to the validity and pri-
ority of the Federal tax lien against certain
persons under section 6323 of the Internal
Revenue Code (the Code). The final regu-
lations update the corresponding Treasury
Regulations to reflect changes in the law
and in IRS practice.
DATES:Effective Date:These regulations
are effective on April 4, 2011.
Applicability Date:These regulations
apply to any notice of Federal tax lien filed
on or after April 4, 2011.
FOR FURTHER INFORMATION
CONTACT: Debra A. Kohn at (202)
622–3600 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This d
ocument contains final regu-
latio
ns that amend the Procedure and
Admin
istration Regulations (26 CFR
part
301) under section 6323 of the Code.
If an
y person liable for tax neglects or
refuses to pay
after demand, the amount
of that tax is a
lien in favor of the United
States agains
t all property and rights to
property of s
uch person under section
6321. Sectio
n 6323 provides that a Federal
tax lien is on
ly valid against certain
persons if a n
otice of Federal tax lien
(NFTL) is fi
led and addresses generally
the validit
y and priority of the Federal tax
lien agains
t such persons. Section 6323(b)
and (c) addr
esses the protection of certain
interests e
ven though an NFTL has been
filed. Sec
tion 6323(f) prescribes the place
for filing
and the form of an NFTL. Section
6323(g) ad
dresses the refiling of an NFTL.
Section 63
23(h) contains definitions of
certain t
erms used throughout section
6323.
Since 197
6, there have been numer-
ous amend
ments to section 6323 that are
not refle
cted in the existing regulations.
There hav
e also been several changes to
IRS pract
ice that thus far have not been
reflect
ed in the regulations. On April 17,
2008, a n
otice of proposed rulemaking
(REG–14
1998–06, 2008–1 C.B. 911) to
reflect
these changes in law and practice
was pub
lished in theFederal Register
(73 FR 2
0877–01). No comments were
receiv
ed and no public hearing was re-
queste
d or held. Accordingly, in this
Treasu
ry Decision, the proposed regula-
tions
are adopted substantially without
chang
e with the exception of one revision
descr
ibed in this preamble.
Expla
nation of Revision
Secti
on 301.6323(g)–1(a) sets forth
gener
al principles pertaining to refiling
NFTLs
. Most NFTLs now contain a
certi
ficate of release that automatically
beco
mes effective on the date prescribed
in th
e NFTL, which is the date the re-
quir
ed refiling period ends. Therefore,
if an
NFTL that contains a certificate of
rele
ase is not timely refiled in each juris-
dic
tion where it was originally filed, the
lie
n self-releases and is extinguished in
all
jurisdictions. See IRC §6325(f)(1)(A).
The
extinguishment of the lien invalidates
NFT
Lsfiledinotherjurisdictionsand
req
uires the IRS to file certificates of re-
vo
cation, as well as new NFTLs, in each
2011–18 I.R.B.730May 2, 2011

jurisdiction where NFTLs were previously
filed.
The proposed regulations contemplated
amending §301.6323(g)–1(a)(3) to pro-
vide generally that, with respect to an
NFTL that includes a certificate of re-
lease, failure to timely refile the NFTL in
any jurisdiction where it was originally
filed extinguishes the lien and renders the
NFTL ineffective with respect to property
that is the subject matter of a suit to which
the United States is a party that is com-
menced before the required filing period
expires, and property that has been levied
upon by the United States before the refil-
ingperiodexpires. Further consideration
led to the determination that failure to
timely refile the NFTL should not render
the NFTL ineffective under these circum-
stances. Accordingly, the final regulations
provide that neither failure to timely refile
the NFTL, nor the release of the lien, shall
alterorimpairanyrightoftheUnited
States to property or its proceeds that is
the subject of a levy or judicial proceeding
commenced prior to the end of the refiling
period or the release of the lien, except to
the extent that a person acquires an interest
in the property for adequate consideration
after the commencement of the proceeding
and does not have notice of, and is not
bound by, the outcome of the proceeding.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It also has been determined
that section 553(b) of the Administra-
tive Procedure Act (5 U.S.C. chapter 5)
does not apply to these regulations, and
because these regulations do not impose
collection of information on small entities,
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Code, the notice
of proposed rulemaking preceding these
regulations was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment on
its impact on small business.
Drafting Information
The principal author of these regula-
tions is Debra A. Kohn of the Office of the
Associate Chief Counsel (Procedure and
Administration).
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 301 is
amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 301.6323(b)–1 is
amended as follows:
1. Paragraph (d)(1) is revised.
2. Paragraph (d)(3)Example 1and3are
revised.
3. Paragraphs (g)(1) and (g)(2)Exam-
ple 1,2,and3are revised.
4. Paragraphs (i)(1)(iii) and (j) are re-
vised.
The revisions read as follows:
§301.6323(b)–1 Protection for certain
interests even though notice filed.
*****
(d)Personal property purchased in ca-
sual sale—(1)In general. Even though a
notice of lien imposed by section 6321 is
filed in accordance with §301.6323(f)–1,
the lien is not valid against a purchaser (as
defined in §301.6323(h)–1(f)) of house-
hold goods, personal effects, or other tan-
gible personal property of a type described
in §301.6334–1 (which includes wearing
apparel, school books, fuel, provisions,
furniture, arms for personal use, livestock,
and poultry (whether or not the seller is the
head of a family); and books and tools of
a trade, business, or profession (whether or
not the trade, business, or profession of the
seller)), purchased, other than for resale, in
a casual sale for less than $1,380, effective
for 2010 and adjusted each year based on
the rate of inflation (excluding interest and
expenses described in §301.6323(e)–1).
*****
(3) * * *
Example 1. A, an attorney’s widow, sells a set
of law books for $200 to B, for B’s own use. Prior
to the sale a notice of lien was filed with respect
to A’s delinquent tax liability in accordance with
§301.6323(f)–1. B has no actual notice or knowledge
of the tax lien. In addition, B does not know that the
sale is one of a series of sales. Because the sale is a
casual sale for less than $1,380 and involves books
of a profession (tangible personal property of a type
described in §301.6334–1, irrespective of the fact
that A has never engaged in the legal profession), the
tax lien is not valid against B even though a notice of
lien was filed prior to the time of B’s purchase.
*****
Example 3. In an advertisement appearing in a lo-
cal newspaper, G indicates that he is offering for sale
a lawn mower, a used television set, a desk, a refrig-
erator, and certain used dining room furniture. In re-
sponse to the advertisement, H purchases the dining
room furniture for $200. H does not receive any in-
formation which would impart notice of a lien, or that
the sale is one of a series of sales, beyond the informa-
tion contained in the advertisement. Prior to the sale a
notice of lien was filed with respect to G’s delinquent
tax liability in accordance with §301.6323(f)–1. Be-
cause H had no actual notice or knowledge that sub-
stantially all of G’s household goods were being sold
or that the sale is one of a series of sales, and because
the sale is a casual sale for less than $1,380, H does
not purchase the dining room furniture subject to the
lien. The household goods are of a type described
in §301.6334–1(a)(2) irrespective of whether G is the
head of a family or whether all such household goods
offered for sale exceed $8,250 in value.
*****
(g)Residential property subject to a
mechanic’s lien for certain repairs and
improvements—(1)In general.Even
though a notice of a lien imposed by
section 6321 is filed in accordance with
§301.6323(f)–1, the lien is not valid
against a mechanic’s lienor (as defined in
§301.6323(h)–1(b)) who holds a lien for
the repair or improvement of a personal
residence if —
(i) The residence is occupied by the
owner and contains no more than four
dwelling units; and
(ii) The contract price on the prime
contract with the owner for the repair or
improvement (excluding interest and ex-
penses described in §301.6323(e)–1) is
not more than $6,890, effective for 2010
and adjusted each year based on the rate
of inflation.
(iii) For purposes ofparagraph (g)(1)(ii)
of this section, the amounts of subcontracts
under the prime contract with the owner
are not to be taken into consideration for
purposes of computing the $6,890 prime
contract price. It is immaterial that the no-
tice of tax lien was filed before the contrac-
tor undertakes his work or that he knew of
the lien before undertaking his work.
(2) * * *
May 2, 20117312011–18 I.R.B.

Example 1. A owns a building containing four
apartments, one of which he occupies as his personal
residence. A notice of lien which affects the building
is filed in accordance with §301.6323(f)–1. There-
after, A enters into a contract with B in the amount
of $800, which includes laborand materials, to repair
the roof of the building. B purchases roofing shingles
from C for $300. B completes the work and A fails
to pay B the agreed amount. In turn, B fails to pay
C for the shingles. Under local law, B and C acquire
mechanic’s liens on A’s building. Because the con-
tract price on the prime contract with A is not more
than $6,890 and under local law B and C acquire me-
chanic’s liens on A’s building, the liens of B and C
have priority over the Federal tax lien.
Example 2. Assume the same facts as inExam-
ple 1, except that the amount of the prime contract
between A and B is $7,100. Because the amount of
the prime contract with the owner, A, is in excess
of $6,890, the tax lien has priority over the entire
amount of each of the mechanic’s liens of B and C,
even though the amount of the contract between B
and C is $300.
Example 3. Assume the same facts as in
Example 1, except that A and B do not agree in
advance upon the amount due under the prime
contract but agree that B will perform the work for
the cost of materials and labor plus 10 percent of such
cost. When the work is completed, it is determined
that the total amount due is $850. Because the prime
contract price is not more than $6,890 and under
local law B and C acquire mechanic’s liens on A’s
residence, the liens of B and C have priority over the
Federal tax lien.
*****
(i) * * *
(1)
***
(iii) After the satisfaction of a levy pur-
suant to section 6332(b), unless and un-
til the Internal Revenue Service delivers to
the insuring organization a notice (for ex-
ample, another notice of levy, a letter, etc.)
executed after the date of such satisfaction,
that the lien exists.
*****
(j)Effective/applicability date.This
section applies to any notice of Federal tax
lien filed on or after April 4, 2011.
Par. 3. Section 301.6323(c)–2 is
amended as follows:
1. Paragraph (d)Example 1,2,3,4,and
5is revised.
2. Paragraph (e) is added.
The revisions and addition read as fol-
lows:
§301.6323(c)–2 Protection for real
property construction or improvement
financing agreements.
*****
(d) * * *
Example 1. A, in order to finance the con-
struction of a dwelling on a lot owned by him,
mortgages the property to B. The mortgage, ex-
ecuted January 4, 2006, includes an agreement
that B will make cash disbursements to A as the
construction progresses. On February 1, 2006, in
accordance with §301.6323(f)–1, a notice of lien is
filed and recorded in the public index with respect
to A’s delinquent tax liability. A continues the
construction, and B makes cash disbursements on
June 15, 2006, and December 15, 2006. Under
local law B’s security interest arising by virtue of
the disbursements is protected against a judgment
lien arising February 1, 2006 (the date of tax lien
filing) out of an unsecured obligation. Because
B is the holder of a security interest coming into
existence by reason of cash disbursements made
pursuant to a written agreement, entered into before
tax lien filing, to make cash disbursements to finance
the construction of real property, and because B’s
security interest is protected, under local law, against
a judgment lien arising as of the time of tax lien filing
out of an unsecured obligation, B’s security interest
has priority over the tax lien.
Example 2.(i) C is awarded a contract for the
demolition of several buildings. On March 3, 2004,
C enters into a written agreement with D which pro-
vides that D will make cash disbursements to finance
the demolition and also provides that repayment of
the disbursements is secured by any sums due C un-
der the contract. On April 1, 2004, in accordance with
§301.6323(f)–1, a notice of lien is filed with respect
to C’s delinquent tax liability. With actual notice of
the tax lien, D makes cash disbursements to C on Au-
gust 13, September 13, and October 13, 2004. Under
local law D’s security interest in the proceeds of the
contract with respect to the disbursements is entitled
to priority over a judgment lien arising on April 1,
2004 (the date of tax lien filing) out of an unsecured
obligation.
(ii) Because D’s securityinterest arose by reason
of disbursements made pursuant to a written agree-
ment, entered into before tax lien filing, to make cash
disbursements to finance a contract to demolish real
property, and because D’s security interest is valid un-
der local law against a judgment lien arising as of the
time of tax lien filed out of an unsecured obligation,
the tax lien is not valid with respect to D’s security
interest in the proceeds of the demolition contract.
Example 3.Assume the same facts as inExam-
ple 2and, in addition, assume that, as further security
for the cash disbursements, the March 3, 2004, agree-
ment also provides for a security interest in all of C’s
demolition equipment. Because the protection of the
security interest arising from the disbursements made
after tax lien filing under the agreement is limited un-
der section 6323(c)(3) to the proceeds of the demo-
lition contract and because, under the circumstances,
the security interest in the equipment is not otherwise
protected under section 6323, the tax lien will have
priority over D’s security interest in the equipment.
Example 4.(i)OnJanuary3,2006,FandGenter
into a written agreement, whereby F agrees to provide
G with cash disbursements, seed, fertilizer, and insec-
ticides as needed by G, in order to finance the raising
and harvesting of a crop on a farm owned by G. Un-
der the terms of the agreement F is to have a secu-
rity interest in the crop, the farm, and all other prop-
ertythenownedorthereafteracquiredbyG.Inac-
cordance with §301.6323(f)–1, on January 10, 2006,
a notice of lien is filed and recorded in the public in-
dex with respect to G’s delinquent tax liability. On
March 3, 2006, with actual notice of the tax lien, F
makes a cash disbursement of $5,000 to G and fur-
nishes him seed, fertilizer, and insecticides having a
value of $10,000. Under local law F’s security in-
terest, coming into existence by reason of the cash
disbursement and the furnishing of goods, has prior-
ity over a judgment lien arising January 10, 2006 (the
date of tax lien filing and recording in the public in-
dex) out of an unsecured obligation.
(ii) Because F’s security interest arose by reason
of a disbursement (including the furnishing of goods)
made under a written agreement which was entered
into before tax lien filing and which constitutes an
agreement to finance the raising or harvesting of a
farm crop, and because F’s security interest is valid
under local law against a judgment lien arising as of
the time of tax lien filing out of an unsecured obliga-
tion, the tax lien is not valid with respect to F’s secu-
rity interest in the crop even though a notice of lien
was filed before the security interest arose. Further-
more, because the farm is property subject to the tax
lien at the time of tax lien filing, F’s security interest
with respect to the farm also has priority over the tax
lien.
Example 5.AssumethesamefactsasinExample
4and in addition that on October 2, 2006, G acquires
several tractors to which F’s security interest attaches
under the terms of the agreement. Because the trac-
tors are not property subject to the tax lien at the time
of tax lien filing, the tax lien has priority over F’s se-
curity interest in the tractors.
(e)Effective/applicability date.This
section applies with respect to any notice
of Federal tax lien filed on or after April 4,
2011.
Par. 4. Section 301.6323(f)–1 is
amended as follows:
1. Paragraph (d)(2) is revised.
2. Paragraph (f) is added.
The revision and addition read as fol-
lows:
§301.6323(f)–1 Place for filing notice;
form.
*****
(d) * * *
(2)Form 668 defined.ThetermForm
668means either a paper form or a form
transmitted electronically, including a
form transmitted by facsimile (fax) or
electronic mail (e-mail). A Form 668
must identify the taxpayer, the tax liability
giving rise to the lien, and the date the
assessment arose regardless of the method
used to file the notice of Federal tax lien.
*****
(f)Effective/applicability date.This
section applies with respect to any notice
2011–18 I.R.B.732May 2, 2011

of Federal tax lien filed on or after April 4,
2011.
Par. 5. Section 301.6323(g)–1 is
amended as follows:
1. Paragraphs (a)(1), (a)(3) introduc-
tory text, (a)(3)(i), and (a)(3)(ii), (a)(4),
(b)(3) introductory text, (b)(3)Example 1,
and (b)(3)Example 5are revised.
2. The undesignated text following
paragraph (a)(3)(ii) is removed.
3. Paragraph (c)(1) is revised.
4. Paragraph (c)(2) is removed.
5. Paragraph (c)(3) is redesignated as
paragraph (c)(2) and revised.
6. Paragraph (d) is added.
The revisions and additions read as fol-
lows:
§301.6323(g)–1 Refiling of notice of tax
lien.
(a)In general—(1)Requirement to re-
file. In order to continue the effect of a no-
tice of lien, the notice must be refiled in
the place described in paragraph (b) of this
section during the required refiling period
(described in paragraph (c) of this section).
If two or more notices of lien are filed with
respect to a particular tax assessment, and
each notice of lien contains a certificate of
release that releases the lien when the re-
quired refiling period ends, the failure to
comply with the provisions of paragraphs
(b)(1)(i) and (c) of this section in respect to
one of the notices of lien releases the lien
and renders ineffective the refiling of any
other notice of lien.
*****.
(3)Effect of failure to refile.—If the In-
ternal Revenue Service fails to refile a no-
tice of lien in the manner described in para-
graphs (b) and (c) of this section, the notice
is not effective, after the expiration of the
required refiling period, as against any per-
son described in section 6323(a), without
regard to when the interest of the person
in the property subject to the lien was ac-
quired. If a notice of lien contains a certifi-
cate of release that provides that the lien is
released at the end of the required refiling
period unless the notice of lien is refiled,
and the notice of lien is not refiled, then
the lien is extinguished and the notice of
lien is ineffective.
(i) However, neither the failure to refile
before the expiration of the refiling period,
nor the release of the lien, shall alter or im-
pair any right of the United States to prop-
erty or its proceeds that is the subject of
a levy or judicial proceeding commenced
prior to the end of the refiling period or
the release of the lien, except to the ex-
tent that a person acquires an interest in the
property for adequate consideration after
the commencement of the proceeding and
does not have notice of, and is not bound
by, the outcome of the proceeding.
(ii) If a suit or levy referred to in the pre-
ceding sentence is dismissed or released
and the property is subject to the lien at
such time, a notice of lien with respect to
the property is not effective after the suit or
levy is dismissed or released unless refiled
during the required refiling period.
(4)Filing of new notice. If a notice of
lien is not refiled, and the notice of lien
contains a certificate of release that au-
tomatically releases the lien when the re-
quired refiling period ends, the lien is re-
leased as of that date and is no longer in
existence. The Internal Revenue Service
must revoke the release before it can file a
new notice of lien. This new filing must
meet the requirements of section 6323(f)
and §301.6323(f)–1 and is effective from
the date on which such filing is made.
(b) * * *
(3)Examples. The following examples
illustrate the provisions of this section:
Example 1. A, a delinquent taxpayer, is a resi-
dent of State M and owns real property in State N. In
accordance with §301.6323(f)–1, notices of lien are
filed in States M and N. The notices of lien contain
certificates of release that release the lien at the end
of the required refiling period. In order to continue
the effect of the notice of lien filed in either M or N,
the Internal Revenue Service must refile, during the
required refiling period, the notice of lien with the ap-
propriate office in M as well as with the appropriate
office in N.
*****
Example 5. D, a delinquent taxpayer, is a resi-
dent of State M and owns real property in States N
and O. In accordance with §301.6323(f)–1, the Inter-
nal Revenue Service files notices of lien in M, N, and
O States. Nine years and 6 months after the date of
the assessment shown on the notice of lien, D estab-
lishes his residence in P, and at that time the Internal
Revenue Service receives from D a notification of his
change in residence in accordance with the provisions
of paragraph (b)(2) of this section. On a date which is
9 years and 7 months after the date of the assessment
shown on the notice of lien, the Internal Revenue Ser-
vice properly refiles notices of lien in M, N, and O
which refilings are sufficient to continue the effect of
each of the notices of lien. The Internal Revenue Ser-
vice is not required to file a notice of lien in P because
D did not notify the Internal Revenue Service of his
change of residence to P more than 89 days prior to
the date each of the refilings in M, N, and O was com-
pleted.
*****
(c)Required refiling period—(1)In
general. For the purpose of this section,
except as provided in paragraph (c)(2)
of this section, the termrequired refiling
periodmeans—
(i) The 1-year period ending 30 days
after the expiration of 10 years after the
date of the assessment of the tax; and
(ii) The 1-year period ending with the
expiration of 10 years after the close of the
preceding required refiling period for such
notice of lien.
(2)Examples. The following examples
illustrate the provisions of this paragraph:
Example 1. On March 10, 1998, an assessment
of tax is made against B, a delinquent taxpayer, and
a lien for the amount of the assessment arises on
that date. On July 10, 1998, in accordance with
§301.6323(f)–1, a notice of lien is filed. The notice
of lien filed on July 10, 1998, is effective through
April 9, 2008. The first required refiling period for
the notice of lien begins on April 10, 2007, and ends
on April 9, 2008. A refiling of the notice of lien
during that period will extend the effectiveness of
the notice of lien filed on July 10, 1998, through
April 9, 2018. The second required refiling period
for the notice of lien begins on April 10, 2017, and
ends on April 9, 2018.
Example 2. Assume the same facts as inExam-
ple 1, except that the Internal Revenue Service fails
to refile a notice of lien during the first required refil-
ing period (April 10, 2007, through April 9, 2008). A
notice of lien is filed on June 9, 2009, in accordance
with §301.6323(f)–1. This notice is ineffective if the
original notice contained a certificate of release, as
the certificate of release would have had the effect of
extinguishing the lien as of April 10, 2008. The In-
ternal Revenue Service could revoke the release and
file a new notice of lien, which would be effective as
of the date it was filed.
(d)Effective/applicability date.This
section applies with respect to any notice
of Federal tax lien filed on or after April 4,
2011.
Par. 6. Section 301.6323(h)–1 is
amended as follows:
1. Paragraphs (a)(2)(ii) and (a)(3) are
revised.
2. A new paragraph (h) is added.
The revisions and addition read as fol-
lows:
§301.6323(h)–1 Definitions.
(a) * * *
(2) * * *
(ii) The following example illustrates
the application of paragraph (a)(2):
Example. (i) Under the law of State X, a secu-
rity interest in certificated securities, negotiable doc-
uments, or instruments may be perfected, and hence
protected against a judgment lien, by filing or by
May 2, 20117332011–18 I.R.B.

the secured party taking possession of the collateral.
However, a security interest in such intangible per-
sonal property is considered to be temporarily per-
fected for a period of 20 days from the time the se-
curity interest attaches, to the extent that it arises
for new value given under an authenticated security
agreement. Under the law of X, a security interest at-
taches to such collateral when there is an agreement
between the creditor and debtor that the interest at-
taches, the debtor has rights in the property, and con-
sideration is given by the creditor. Under the law of
X, in the case of temporary perfection, the security in-
terest in such property is protected during the 20-day
period against a judgment lien arising, after the secu-
rity interest attaches, out of an unsecured obligation.
Upon expiration of the 20-day period, the holder of
the security interest must perfect its security interest
under local law.
(ii) Because the security interest is perfected dur-
ing the 20-day period against a subsequent judgment
lien arising out of an unsecured obligation, and be-
cause filing or the taking of possession before the
conclusion of the period of temporary perfection is
not considered, for purposes of paragraph (a)(2)(i) of
this section, to be a requisite action which relates back
to the beginning of such period, the requirements of
this paragraph are satisfied. Because filing or taking
possession is a condition precedent to continued per-
fection, filing or taking possession of the collateral is
a requisite action to establish such priority after expi-
ration of the period of temporary perfection. If there
is a lapse of perfection for failure to file or take pos-
session, the determination of when the security inter-
est exists (for purposes of protection against the tax
lien) is made without regard to the period of tempo-
rary perfection.
(3)Money or money’s worth. For pur-
poses of this paragraph, the termmoney or
money’s worthincludes money, a security
(as defined in paragraph (d) of this sec-
tion), tangible or intangible property, ser-
vices, and other consideration reducible to
a money value. Money or money’s worth
also includes any consideration which oth-
erwise would constitute money or money’s
worth under the preceding sentence which
was parted with before the security interest
would otherwise exist if, under local law,
past consideration is sufficient to support
an agreement giving rise to a security inter-
est, and provided that the grant of the secu-
rity interest is not a fraudulent transfer un-
der local law or 28 U.S.C. § 3304(a)(2). A
firm commitment to part with money, a se-
curity, tangible or intangible property, ser-
vices, or other consideration reducible to
a money value does not, in itself, consti-
tute a consideration in money or money’s
worth. A relinquishing or promised relin-
quishment of dower, curtesy, or of a statu-
tory estate created in lieu of dower or cur-
tesy, or of other marital rights is not a
consideration in money or money’s worth.
Nor is love and affection, promise of mar-
riage, or any other consideration not re-
ducible to a money value a consideration
in money or money’s worth.
*****
(h)Effective/applicability date.This
section applies as of April 4, 2011.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved March 25, 2011.
Michael Mundaca,
Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on April 1, 2011,
8:45 a.m., and published in the issue of the Federal Register
for April 4, 2011, 76 F.R. 18384)
Section 7811.—Taxpayer
Assistance Orders
26 CFR 301.7811–1: Taxpayer assistance orders.
T.D. 9519
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 301
Taxpayer Assistance Orders
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains final
regulations relating to taxpayer assistance
orders. These regulations reflect changes
to the law made by the Taxpayer Bill of
Rights II, the Internal Revenue Service Re-
structuring and Reform Act of 1998, the
Community Renewal Tax Relief Act of
2000, and the American Jobs Creation Act
of 2004. The final regulations affect tax-
payers in cases where a taxpayer assistance
order is being considered or issued.
DATES:Effective date:These regulations
are effective on April 1, 2011.
Applicability date:For dates of appli-
cability, see §301.7811–1(f).
FOR FURTHER INFORMATION
CONTACT: Janice R. Feldman, (202)
622–8488 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
These final regulations contain rules
related to taxpayer assistance orders un-
der section 7811 of the Internal Revenue
Code (Code). These regulations are
necessary to reflect changes to the law
made by the Taxpayer Bill of Rights II
(TBOR 2), the Internal Revenue Service
Restructuring and Reform Act of 1998
(RRA 98), the Community Renewal Tax
Relief Act of 2000, and the American
Jobs Creation Act of 2004. On July 27,
2009, a notice of proposed rulemaking
(REG–152166–05, 2009–32 I.R.B. 183)
relating to taxpayer assistance orders
was published in theFederal Register
(74 FR 36973). No comments were
received from the public in response to
the notice of proposed rulemaking. No
public hearing was requested or held. The
proposed regulations are adopted without
substantive change by this Treasury
decision with one exception.Example 3in
§301.7811–1(a)(4)(iv) of the regulations
illustrating significant costs was revised
slightly.
Furthermore, §301.7811–1(g) of the
final regulations (T.D. 8403) published on
March 23, 1992, in theFederal Register
(57 FR 9975) defined the term “Ombuds-
man.” After these final regulations were
published, section 101 of TBOR 2, Public
Law 104–168, 110 Stat. 1452 (1996),
amended section 7811 by changing the
name of the “Ombudsman” to the “Tax-
payer Advocate.” Section 1102 of RRA
98, Public Law 105–206, 112 Stat. 685
(1998), further amended section 7811,
by replacing “Taxpayer Advocate” with
“National Taxpayer Advocate.” Thus,
§301.7811–1(g), which defined the obso-
lete term “ombudsman” is being removed
by these final regulations as it is obsolete.
Section 301.7811–1(e) of the existing final
regulations (T.D. 8403), which contains
the term “ombudsman” and concerns the
suspension of the statute of limitations,
was not revised by these final regulations
as changes to that section may involve
changes to IRS computer processing sys-
tems. Thus, all references to the term
2011–18 I.R.B.734May 2, 2011

“ombudsman” in §301.7811–1(e) should,
consistent with the current version of the
statute, be construed as referring to the
“National Taxpayer Advocate.” Possible
revisions to §301.7811–1(e) will be con-
sidered at a later date.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It has also been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations. Pursuant
to the Regulatory Flexibility Act (5 U.S.C.
chapter 6), it is hereby certified that these
regulations will not have a significant eco-
nomic impact on a substantial number of
small entities. The information required
under this Treasury decision is already re-
quired by the current regulations and the
Form 911, “Request for Taxpayer Advo-
cate Service Assistance (And Application
for Taxpayer Assistance Order).” In ad-
dition, the Form 911 takes minimal time
and expense to prepare, and the filing of a
Form 911 is optional.Therefore, prepar-
ing the Form 911 does not significantly in-
crease the burden on taxpayers. Based on
these facts, the Treasury Department and
the IRS have determined that these regula-
tions will not have a significant economic
impact on a substantial number of small
entities. Furthermore, the substance of the
regulations does not concern the Form 911,
but the procedures the Taxpayer Advocate
Service (TAS) or the Internal Revenue Ser-
vice (IRS) must follow with respect to tax-
payer assistance orders. Therefore, any
burden created by these regulations is on
the TAS or IRS, not taxpayers. Pursuant to
section 7805(f) of the Code, the notice of
proposed rulemaking preceding these reg-
ulations was submitted to the Chief Coun-
sel for Advocacy of the Small Business
Administration for comment on its impact
on small business.
Drafting Information
The principal author of these regula-
tions is Janice R. Feldman, Office of the
Special Counsel (National Taxpayer Ad-
vocate Program) (CC:NTA).
*****
Adoption of the Amendments to the
Regulations
Accordingly, 26 CFR part 301 is
amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 301.7811–1 is amended
by revising paragraphs (a), (b), (c) and (d),
removing paragraphs (f), (g), (h) and re-
designating paragraph (h) as (f) and revis-
ing newly designated paragraph (f) to read
as follows:
§301.7811–1 Taxpayer assistance orders.
(a)Authority to Issue—(1)In general.
When an application for a taxpayer assis-
tance order (TAO) is filed by the taxpayer
or the taxpayer’s authorized representative
in the form, manner and time specified
in paragraph (b) of this section, the Na-
tional Taxpayer Advocate (NTA) may is-
sue a TAO if, in the determination of the
NTA, the taxpayer is suffering or is about
to suffer a significant hardship as a result of
the manner in which the internal revenue
laws are being administered by the Inter-
nal Revenue Service (IRS), including ac-
tion or inaction on the part of the IRS.
(2)The National Taxpayer Advocate
defined.ThetermNational Taxpayer Ad-
vocateincludes any designee of the NTA,
such as a Local Taxpayer Advocate.
(3)Issuance without a written applica-
tion.TheNTAmayissueaTAOintheab-
sence of a written application by the tax-
payer under section 7811(a).
(4)Significant hardship—(i)Determi-
nation required.BeforeaTAOmaybeis-
sued, the NTA is required to make a deter-
mination regarding significant hardship.
(ii)Term defined.Thetermsignificant
hardshipmeans a serious privation caused
or about to be caused to the taxpayer as
the result of the particular manner in which
the revenue laws are being administered by
the IRS. Significant hardship includes situ-
ations in which a system or procedure fails
to operate as intended or fails to resolve
the taxpayer’s problem or dispute with the
IRS. A significant hardship also includes,
but is not limited to:
(A) An immediate threat of adverse ac-
tion;
(B)Adelayofmorethan30daysin
resolving taxpayer account problems;
(C) The incurring by the taxpayer of
significant costs (including fees for pro-
fessional representation) if relief is not
granted; or
(D) Irreparable injury to, or a long-term
adverse impact on, the taxpayer if relief is
not granted.
(iii)A delay of more than 30 days in re-
solving taxpayer account problems is fur-
ther defined. A delay of more than 30
days in resolving taxpayer account prob-
lems exists under the following conditions:
(A) When a taxpayer does not receive a
response by the date promised by the IRS;
or
(B) When the IRS has established a nor-
mal processing time for taking an action
and the taxpayer experiences a delay of
more than 30 days beyond the normal pro-
cessing time.
(iv)Examples of significant hardship.
The provisions of this section are illus-
trated by the following examples:
Example 1.Immediate threat of adverse action.
The IRS serves a levy on A’s bank account. A needs
the bank funds to pay for a medically necessary sur-
gical procedure that is scheduled to take place in one
week. If the levy is not released, A will lack the funds
necessary to have the procedure. A is experiencing an
immediate threat of adverse action.
Example 2.Delay of more than 30 days. B files
a Form 4506, “Request for a Copy of Tax Return.” B
does not receive the photocopy of the tax return after
waiting more than 30 days beyond the normal time for
processing. B is experiencing a delay of more than 30
days.
Example 3.Significant costs. The IRS sends
XYZ, Inc. a notice requesting payment of the out-
standing employment taxes and penalties owed by
XYZ, Inc. The notice indicates that XYZ, Inc. has
small employment tax balances with respect to 12
employment tax quarters totaling $10X. XYZ, Inc.
provides documentation to the IRS which it contends
shows that if all payments were applied to each quar-
ter correctly, there would be no balance due. The IRS
requests additional records and documentation. Be-
cause there are 12 quarters involved, to comply with
thisrequestXYZ,Inc.assertsthatitwillneedtohire
an accountant, who estimates he will charge at least
$5X to organize all the records and provide a detailed
analysis of how to apply the deposits and payments.
XYZ, Inc. is facing significant costs.
Example 4.Irreparable injury. D has arranged
with a bank to refinance his mortgage to lower his
monthly payment. D is unable to make the current
monthly payment. Unless the monthly payment
amount is lowered, D will lose his residence to fore-
closure. The IRS refuses to subordinate the Federal
tax lien, as permitted by section 6325(d), or discharge
the property subject to the lien, as permitted by sec-
May 2, 20117352011–18 I.R.B.

tion 6325(b). As a result, the bank will not allow D
to refinance. D is facing an irreparable injury if relief
is not granted.
(5)Distinction between significant
hardship and the issuance of a TAO.A
finding that a taxpayer is suffering or
about to suffer a significant hardship as a
result of the manner in which the internal
revenue laws are being administered by
the IRS will not automatically result in
the issuance of a TAO. After making a
determination of significant hardship, the
NTA must determine whether the facts
and the law support relief for the taxpayer.
In cases where any IRS employee is not
following applicable published adminis-
trative guidance (including the Internal
Revenue Manual), the NTA shall construe
the factors taken into account in determin-
ing whether to issue a TAO in the manner
most favorable to the taxpayer.
(b)Generally.ATAOisanorderbythe
NTA to the IRS. The IRS will comply with
a TAO unless it is appealed and then modi-
fied or rescinded by the NTA, the Commis-
sioner, or the Deputy Commissioner. If a
TAO is modified or rescinded by the Com-
missioner or the Deputy Commissioner, a
written explanation of the reasons for the
modification or rescission must be pro-
vided to the NTA. The NTA may not make
a substantive determination of any tax li-
ability. A TAO is also not intended to
be a substitute for an established admin-
istrative or judicial review procedure, but
rather is intended to supplement existing
procedures if a taxpayer is about to suf-
fer or is suffering a significant hardship.
A request for a TAO shall be made on a
Form 911, “Request for Taxpayer Advo-
cate Service Assistance (And Application
for Taxpayer Assistance Order)” (or other
specified form) or in a written statement
that provides sufficient information for the
Taxpayer Advocate Service (TAS) to de-
termine the nature of the harm or the need
for assistance. A taxpayer’s right to ad-
ministrative or judicial review will not be
diminished or expanded in any way as a
result of the taxpayer’s seeking assistance
from TAS.
(c)Contents of taxpayer assistance or-
ders. After establishing that the taxpayer is
facing significant hardship and determin-
ing that the facts and law support relief to
thetaxpayer,theNTAmayissueaTAOor-
dering the IRS within a specified time to—
(1)Release a levy. Release levied prop-
erty (to the extent that the IRS may by law
release such property); or
(2)Take certain other actions. Cease
any action, take any action as permitted by
law, or refrain from taking any action with
respect to a taxpayer pursuant to—
(i) Chapter 64 (relating to collection);
(ii) Chapter 70, subchapter B (relating
to bankruptcy and receiverships);
(iii) Chapter 78 (relating to discovery of
liability and enforcement of title); or
(iv) Any other provision of the internal
revenue laws specifically described by the
NTA in the TAO.
(3)Expedite, review, or reconsider an
action at a higher level. Although the NTA
may not make the substantive determina-
tion, a TAO may be issued to require the
IRS to expedite, reconsider, or review at
a higher level an action taken with respect
to a determination or collection of a tax li-
ability.
(4)Examples. The following examples
assume the existenceof significant hard-
ship:
Example 1. J contacts a Local Taxpayer Advocate
because a wage levy is causing financial difficulties.
The NTA determines that the levy should be released
as it is causing economic hardship (within the mean-
ing of section 6343(a)(1)(D) and §301.6343–1(b)(4)).
TheNTAmayissueaTAOorderingtheIRStorelease
the levy in whole or in part by a specified date.
Example 2. The IRS rejects K’s offer in compro-
mise. K files a Form 911, “Request for Taxpayer Ad-
vocate Service Assistance (And Application for Tax-
payer Assistance Order).” The NTA discovers facts
that support acceptance of the offer in compromise.
TheNTAmayissueaTAOorderingtheIRStore-
consider its rejection of the offer or to review the re-
jection of the offer at a higher level. The TAO may
include the NTA’s analysis of and recommendation
for resolving the case.
Example 3. L files a protest requesting Appeals
consideration of IRS’s proposed denial of L’s request
for innocent spouse relief. Appeals advises L that it is
going to issue a Final Determination denying the re-
quest for innocent spouse relief. L files a Form 911,
“Request for Taxpayer Advocate Service Assistance
(And Application for Taxpayer Assistance Order).”
The NTA reviews the administrative record and con-
cludes that the facts support granting innocent spouse
relief. The NTA may issue a TAO ordering Appeals
to refrain from issuing a Final Determination and re-
consider or review at a higher level its decision to
deny innocent spouse relief. The TAO may include
the NTA’s analysis of and recommendation for resolv-
ing the case.
(d)Issuance. A TAO may be issued
to any office, operating division, or func-
tion of the IRS. A TAO shall apply to per-
sons performing services under a qualified
tax collection contract (as defined in sec-
tion 6306(b)) to the same extent and in the
same manner as the order applies to IRS
employees. A TAO will not be issued to
IRS Criminal Investigation division (CI),
or any successor IRS division responsible
for the criminal investigation function, if
the action ordered in the TAO could rea-
sonably be expected to impede a criminal
investigation. CI will determine whether
the action ordered in the TAO could rea-
sonably be expected to impede an investi-
gation. Generally, a TAO may not be is-
sued to the Office of Chief Counsel.
*****
(f)Effective/applicability date.These
regulations are applicable for TAOs issued
on or after April 1, 2011, except that para-
graph (e) of this section is applicable be-
ginning March 20, 1992.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved March 25, 2011.
Michael Mundaca,
Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on March 31,
2011, 8:45 a.m., and published in the issue of the Federal
Register for April 1, 2011, 76 F.R. 18059)
2011–18 I.R.B.736May 2, 2011

Part III. Administrative, Procedural, and Miscellaneous
Japan Earthquake and
Tsunami Occurring in March
2011 Designated as a
Qualified Disaster Under
§ 139 of the Internal Revenue
Code
Notice 2011–32
This notice designates the Japan earth-
quake and tsunami occurring in March
2011 as a qualified disaster for purposes
of § 139 of the Internal Revenue Code.
EARTHQUAKE AND TSUNAMI
DISASTER
On March 11, 2011, a magnitude 9.0
earthquake occurred, affecting northeast-
ern Japan and generating a large tsunami
which struck the eastern coast of Japan
(collectively “Japan earthquake”). As of
March 24, 2011, the Japan earthquake has
resulted in more than 9,800 confirmed
deaths, more than 17,500 missing persons,
and approximately 245,000 individuals
still taking shelter in evacuation centers.
The Japan earthquake also damaged or de-
stroyed more than 139,000 buildings and
2,000 roads and led to a serious nuclear
incident at a nuclear power plant.USAID
Fact Sheet No. 13(March 24, 2011).
This notice enables employer-spon-
sored private foundations to assist certain
victims in areas affected by the Japan
earthquake, and enables recipients to ex-
clude qualified disaster relief payments
from gross income.
QUALIFIED DISASTER RELIEF
PAYMENTS EXCLUDED FROM
RECIPIENT’S GROSS INCOME
Section 139(a) provides that gross in-
come shall not include any amount re-
ceived by an individual as a qualified dis-
aster relief payment.
Section 139(b) provides that a quali-
fied disaster relief payment includes any
amount paid to or for the benefit of an in-
dividual—
(1) to reimburse or pay reasonable and
necessary personal, family, living, or fu-
neral expenses (not compensated for by in-
surance or otherwise) incurred as a result
of a qualified disaster, or
(2) to reimburse or pay reasonable and
necessary expenses (not compensated for
by insurance or otherwise) incurred for the
repair or rehabilitation of a personal resi-
dence or repair or replacement of its con-
tents to the extent that the need for such
repair, rehabilitation, or replacement is at-
tributable to a qualified disaster.
Under § 139(c)(3) the term “qualified
disaster” includes a disaster resulting from
an event that is determined by the Secre-
tary to be of a catastrophic nature.
DESIGNATION AS QUALIFIED
DISASTER
The Commissioner of Internal Rev-
enue, pursuant to delegation by the Secre-
tary, has determined that the Japan earth-
quake occurring in March 2011 is an event
of a catastrophic nature under § 139(c)(3).
Therefore, the Japan earthquake is desig-
nated as a qualified disaster under § 139.
SECTION 501(c)(3) ORGANIZATIONS
Employer-sponsored private founda-
tions may choose to provide disaster relief
to employee victims of the Japan earth-
quake. Like all organizations described
in § 501(c)(3), private foundations should
exercise due diligence when providing
disaster relief as set forth in Publication
3833,Disaster Relief: Providing Assis-
tance Through Charitable Organizations.
DRAFTING INFORMATION
The principal author of this notice is
Sheldon Iskow of the Office of Associate
Chief Counsel (Income Tax & Account-
ing). For further information regarding
this notice, contact Mr. Iskow at (202)
622–4920 (not a toll-free call).
26 CFR 601.204: Changes in accounting periods and
in methods of accounting.
(AlsoPartI,§§167,168,446,481;1.446–1.)
Rev. Proc. 2011–22
SECTION 1. PURPOSE
This revenue procedure provides a safe
harbor method of accounting for determin-
ing the recovery periods for depreciation
of certain tangible assets used by wire-
less telecommunications carriers. This
revenue procedure also explains how a tax-
payer may obtain automatic consent from
the Commissioner of Internal Revenue to
change to this method of accounting.
SECTIO
N 2. BACKGROUND
.01 Section 167(a) of the Internal Rev-
enue Code provides that there is allowed as
a depreciation deduction a reasonable al-
lowance for the exhaustion and wear and
tear of property used in a trade or busi-
ness or held for the production of income.
The depreciation deduction provided by
§ 167(a) for tangible property placed in
service after 1986 generally is determined
under § 168, which prescribes two meth-
ods of accounting for determining depre-
ciation allowances: (1) the general depre-
ciation system in § 168(a); and (2) the al-
ternative depreciation system in § 168(g).
Under either depreciation system, a tax-
payer computes the depreciation deduction
by using a prescribeddepreciation method,
recovery period, and convention. The ap-
plicable recovery period for purposes of
§ 168(a) or § 168(g) is determined by ref-
erence to class life or by statute.
Rev. Proc. 87–56, 1987–2 C.B. 674,
as clarified and modified by Rev. Proc.
88–22, 1988–1 C.B. 785, provides the
class lives of property for computing the
depreciation allowance under § 168. That
revenue procedure establishes two broad
categories of depreciable assets: (1) asset
classes 00.11 through 00.4, which consist
of specific assets used in all business ac-
tivities; and (2) asset classes 01.1 through
80.0, which consist of assets used in spe-
cific business activities.
.02 Taxpayers and the Internal Revenue
Service often do not agree which asset
class of Rev. Proc. 87–56 includes the
tangible assets used by wireless telecom-
munications carriers to provide wireless
telecommunication services. To minimize
disputes regarding the depreciation of
these assets, this revenue procedure pro-
vides a safe harbor method of accounting
for determining the recovery periods of
these assets.
.03 Except as otherwise expressly pro-
vided by the Code or the regulations there-
under, § 446(e) and § 1.446–1(e)(2) of the
May 2, 20117372011–18 I.R.B.

Income Tax Regulations require a taxpayer
to secure the consent of the Commissioner
before changing a method of accounting
for federal income tax purposes. Section
1.446–1(e)(3)(ii) authorizes the Commis-
sioner to prescribe administrative proce-
dures setting forth the limitations, terms,
and conditions necessary to permit a tax-
payer to obtain consent to change a method
of accounting.
SECTION 3. WIRELESS
TELECOMMUNICATION ASSETS
.01 Wireless telecommunication assets
include a mobile telephone switching of-
fice (MTSO) and cell sites. The functions
of the MTSO and cell sites are comparable
to those of a wireline telephone central of-
fice and the associated land line cables.
.02 The MTSO is a central switching fa-
cility that transmits wireless voice and data
(including video) communications to and
from cell sites and other equipment that
comprise the wireless network, and also
connects the wireless network to the wire-
line network (public switched telephone
network). The MTSO and its equipment
are powered by conventional electrical ser-
vice with back-up support from electric
generators or battery systems.
.03 MTSO equipment typically in-
cludes the mobile switching center, base
station controllers or generational equiv-
alent, radio network controllers, mobility
managers, operations and management
platforms, protocol handlers, vocoders,
modems, cross-connects, and optical-cross
connect bays.
.04 A typical cell site consists of cell
site equipment, a self-supporting antenna
support structure (also known as a tower)
for mounting antennas, and related support
and power equipment. Cell site equip-
ment typically includes a base transceiver
station or generational equivalent (which
may include, for example, vocoders,
modems, channel cards, transceivers/am-
plifiers cards, modulators, demodulators,
and combiners), antennas, and alarm and
support equipment, and also may include
microwave equipment. In some cases,
cell site equipment includes a base station
controller.
The antenna system at the cell site gen-
erally consists of the antennas (with or
without remote electrical tilt functionality
(RET)), coaxial and jumper cables from
the antennas to the base transceiver station
(antenna cables), and RET equipment.
A cell site also may include a small
structure (the hut) to house and shelter the
cell site equipment that does not have its
own weather proof enclosure or cabinet.
SECTION 4. SCOPE
This revenue procedure applies to a tax-
payer that has a depreciable interest in
wireless telecommunication assets (as de-
scribed in section 3 of this revenue pro-
cedure) used primarily to provide wire-
less telecommunication or broadband ser-
vices by mobile phones (for example, cell
phones or smartphones). This revenue
procedure does not apply to a taxpayer that
is primarily a cable operator. The determi-
nation of whether a taxpayer is within the
scope of this revenue procedure is made by
each member of a consolidated group, by
a partnership, or by an S corporation.
SECTION 5. SAFE HARBOR METHOD
OF ACCOUNTING
The Service will not challenge a tax-
payer’s classification of assets for depreci-
ation purposes as specified in this section
5.
.01 The following wireless telecommu-
nication assets located at the taxpayer’s
MTSO as included in an asset class of Rev.
Proc. 87–56 unless otherwise stated:
(1) MTSO building (including its struc-
tural components) as nonresidential real
property with a recovery period of 39 years
for purposes of § 168(a) and 40 years for
purposes of § 168(g);
(2) Cabling (for example, copper
T–1 lines or fiber cabling) connecting
the MTSO with cell sites or the public
switched telephone network as property
to which § 168(e)(3)(E)(ii) applies and,
therefore, with a recovery period of 15
years for purposes of § 168(a) and 24 years
for purposes of § 168(g);
(3) Computer-based switching equip-
ment and related equipment at the MTSO
(including the computer-based switching
equipment, base station controllers (or
generational equivalent), radio network
controllers, mobility managers, operations
and management platforms, protocol han-
dlers, vocoders, modems, cross-connects,
optical-cross connect bays, and associ-
ated cables) in asset class 48.121 with a
recovery period of 5 years for purposes
of § 168(a) and 9.5 years for purposes of
§ 168(g);
(4) Dedicated heating, ventilation, and
air conditioning (HVAC) equipment and
dedicated power (including battery backup
system) for the computer-based switching
equipment and related equipment at the
MTSO in asset class 48.121 with a re-
covery period of 5 years for purposes of
§ 168(a) and 9.5 years for purposes of
§ 168(g); and
(5) All other equipment at the MTSO
that is not described in asset classes 00.11
through 00.4 as personal property with no
class life with a recovery period of 7 years
for purposes of § 168(a) and 12 years for
purposes of § 168(g).
.02 The following wireless telecommu-
nication assets located at the taxpayer’s
cell sites as included in an asset class of
Rev. Proc. 87–56 unless otherwise stated:
(1) The hut and its foundation:
(a) The hut itself as personal property
with no class life with a recovery period
of 7 years for purposes of § 168(a) and 12
years for purposes of § 168(g); and
(b) Cement slab or foundation upon
which the hut is installed in asset class
00.3 with a recovery period of 15 years
for purposes of § 168(a) and 20 years for
purposes of § 168(g);
(2) Base station controller (or genera-
tional equivalent), base transceiver station
(or generational equivalent), their own
weather proof enclosure or cabinet (in-
cluding any equipment integrated into
or built into the base station controller
or base transceiver station; for example,
this equipment might include HVAC and
power equipment, alarms, enhanced 911
service equipment, or the RET central
control unit (CCU) controller), and asso-
ciated cables in asset class 48.121 with a
recovery period of 5 years for purposes
of § 168(a) and 9.5 years for purposes of
§ 168(g);
(3) Cabling (for example, copper T–1
lines or fiber cabling)connecting the cell
site to the MTSO as property to which
§ 168(e)(3)(E)(ii) applies and, therefore,
with a recovery period of 15 years for pur-
poses of § 168(a) and 24 years for purposes
of § 168(g);
(4) Dedicated HVAC equipment and
dedicated power (including batteries and
generators) for the equipment within the
hut in asset class 48.121 with a recovery
2011–18 I.R.B.738May 2, 2011

period of 5 years for purposes of § 168(a)
and 9.5 years for purposes of § 168(g);
(5) Antenna systems (including the
antenna itself, antenna cables, and RET
equipment (other than the RET CCU con-
troller described in section 5.02(2) of this
revenue procedure) as personal property
with no class life with a recovery period
of 7 years for purposes of § 168(a) and 12
years for purposes of § 168(g);
(6) Antenna support structure (also
known as a tower) affixed to a foundation
(for example, a concrete foundation, a
building rooftop, or a building wall):
(a) The antenna support structure itself,
whether on a building or land, as personal
property with no class life with a recovery
period of 7 years for purposes of § 168(a)
and 12 years for purposes of § 168(g); and
(b) Concrete foundation (including the
bolts embedded therein) upon which the
antenna support structure is installed in as-
set class 00.3 with a recovery period of 15
years for purposes of § 168(a) and 20 years
for purposes of § 168(g);
(7) Cell site equipment that is not other-
wisedescribedinthissection5.02(includ-
ing the microwave equipment, alarms, or
enhanced 911 service equipment not inte-
grated into or built into a base station con-
troller or base transceiver station, and asso-
ciated cables) as personal property with no
class life with a recovery period of 7 years
for purposes of § 168(a) and 12 years for
purposes of § 168(g); and
(8) Depreciable land improvements at
the cell site not otherwise described in this
section 5.02, such as landscaping that is
replaced when a related depreciable asset
is replaced, fences, and sidewalks in asset
class 00.3 with a recovery period of 15
years for purposes of § 168(a) and 20 years
for purposes of § 168(g).
SECTION 6. APPLICATION OF SAFE
HARBOR METHOD OF ACCOUNTING
.01In General. A taxpayer within
the scope of this revenue procedure may
choose to change to the safe harbor method
of accounting in section 5 of this revenue
procedure for all of the assets, or one or
some of the assets, listed in that section.
.02Limitation. The safe harbor method
of accounting in section 5 of this revenue
procedure is limited to the assets described
in section 3 of this revenue procedure and
listed in section 5 of this revenue pro-
cedure for purposes of determining their
classification under § 168(e) solely for de-
preciation purposes. The Service or tax-
payers may not rely upon this safe har-
bor method of accounting for classifying
the same or similar type of assets used in
wireline telecommunications or other in-
dustries, or for determining whether the
same or similar type of assets are inher-
ently permanent structures or real property
under other Code sections (for example,
§§ 199, 263A, and 856).
SECTION 7. CHANGE IN METHOD
OF ACCOUNTING
.01In general.
(1) Except as provided in section
7.01(2) of this revenue procedure, a
change to the recoveryperiods described
in section 5 of this revenue procedure
and any collateralchange to the de-
preciation methods for all, or some
of, the assets listed in that section are
a change in method of accounting to
which §§ 446(e) and 481 apply.See
§ 1.446–1(e)(2)(ii)(d)(2). A taxpayer that
wants to change to a method of account-
ing described in this revenue procedure
must use the automatic change in method
of accounting provisions in Rev. Proc.
2011–14, 2011–4 I.R.B. 330, or its succes-
sor, as modified by this revenue procedure.
(2) If a taxpayer placed in service as-
sets listed in section 5 of this revenue pro-
cedure in a taxable year ending before De-
cember 30, 2003 (pre-2003 assets), the tax-
payer may treat the change to the recovery
periods described in section 5 of this rev-
enue procedure and any collateral change
to the depreciation methods for all, or some
of, the pre-2003 assets as not a change in
method of accounting and, therefore, the
taxpayer files amended federal tax returns
to implement the change in computing de-
preciation for these pre-2003 assets.
.02Automatic change.Rev.Proc.
2011–14 is modified to add new section
6.26 to the APPENDIX, to read as follows:
.26 Safe harbor method of accounting
for determining the depreciation of certain
tangible assets used by wireless telecom-
munications carriers under Rev. Proc.
2011–22.
(1)Description of change. This change
applies to a taxpayer that is within the
scope of Rev. Proc. 2011–22 and wants to
change to the recoveryperiods described
in section 5 of Rev. Proc. 2011–22 and any
collateral change to the depreciation meth-
ods for all, or some of, the assets listed in
that section.
(2)Waiver of scope limitations.The
scope limitations in section 4.02 of this
revenue procedure do not apply to a tax-
payer that changes to the safe harbor
method of accounting provided in section
5 of Rev. Proc. 2011–22 for its first or
second taxable year ending after Decem-
ber 30, 2010.
(3)Concurrent automatic change.A
taxpayer that wants to make this change
for more than one asset for the same year
of change should file a single Form 3115
for all such assets and provide a single net
§ 481(a) adjustment for all the changes in-
cluded in that Form 3115. If one or more
of the changes in that single Form 3115
generate a negative § 481(a) adjustment
and other changes in that same Form 3115
generate a positive § 481(a) adjustment,
the taxpayer may provide a single nega-
tive § 481(a) adjustment for all the changes
that are included in that Form 3115 gener-
ating such adjustment and a single positive
§ 481(a) adjustment for all the changes that
are included in that Form 3115 generating
such adjustment.
(4)Ogden copy of Form 3115 required
in lieu of national office copy. A taxpayer
changing its method of accounting under
section6.26oftheAPPENDIXmustfile
a signed copy of its completed Form 3115
with the IRS in Ogden, UT, (Ogden copy)
in lieu of filing the national office copy
no earlier than the first day of the year
of change and no later than the date the
taxpayer files the original Form 3115 with
its federal income tax return for the year
of change.Seesections 6.02(3)(a)(ii)(B)
(providing the general rules) and section
6.02(7)(b) (providing the mailing address)
of this revenue procedure.
(5)Designated automatic accounting
method change numbers. The designated
automatic accounting method change
number for a change to the method of ac-
counting provided in Rev. Proc. 2011–22
is “157.”Seesection 6.02(4) of this rev-
enue procedure.
(6)Contact information. For further
information regarding a change under this
section, contact Patrick Clinton at (202)
622–4930 (not a toll-free call).
May 2, 20117392011–18 I.R.B.

SECTION 8. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2011–14 is modified
and amplified to include the accounting
method change in this revenue procedure
in section 6 of the Appendix.
SECTION 9. EFFECTIVE DATE
This revenue procedure is effective
for taxable years ending on or after
December 31, 2010.
SECTION 10. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Kathleen Reed of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue procedure, contact
Patrick Clinton at (202) 622–4930 (not a
toll free call).
26 CFR 1.263(a)–1: Capital expenditures; in gen-
eral.
(Also Part I, §§ 162, 446, 481; 1.167(a)–11,
1.446–1.)
Rev. Proc. 2011–27
SECTION 1. PURPOSE
This revenue procedure provides two
alternative safe harbor approaches that tax-
payers may use to determine whether ex-
penditures to maintain, replace, or improve
wireline network assets must be capital-
ized under § 263(a) of the Internal Rev-
enue Code: a network asset maintenance
allowance method or a units of property
method. This revenue procedure also pro-
vides procedures for obtaining automatic
consent to change to either safe harbor
method of accounting permitted by this
revenue procedure.
SECTION 2. BACKGROUND
.01 Taxpayers that provide wireline
telecommunication services incur signif-
icant expenditures to maintain, replace,
and improve wireline network property.
Whether these expenditures are deductible
as repairs under § 162 or must be capi-
talized as improvements under § 263(a)
depends on whether the expenditures ma-
terially increase thevalue of the property
or substantially prolong its useful life.
See§ 1.162–4 of the Income Tax Regula-
tions. Applying capitalization principles
to wireline network assets can be particu-
larly difficult, largely because the property
consists of a networkof interconnected
items, such as central office equipment,
poles, copper wire, fiber optic cable, and
remote and network terminals. Taxpayers
and the Internal Revenue Service often do
not agree on which items within a network
constitute discrete units of property and
whether the replacement of a particular
item materially increases the value or sub-
stantially prolongs the useful life of a unit
of property.
.02 To minimize disputes regarding the
deductibility or capitalization of expen-
ditures to maintain, replace, or improve
wireline network assets, this revenue
procedure provides two alternative safe
harbor approaches. Section 5 provides
a wireline “network asset maintenance
allowance method” for determining the
amount of expenditures required to be cap-
italized under § 263(a). Section 6 defines
units of property that may be adopted and
to which existing principles under § 263(a)
are applied.
.03 A taxpayer’s method for deter-
mining whether an expenditure is de-
ductible or is capitalizable is a method
of accounting under § 446. Except as
otherwise expressly provided in the Code
and the regulations thereunder, § 446(e)
and § 1.446–1(e)(2) require a taxpayer to
secure the consent of the Commissioner
of Internal Revenue before changing a
method of accounting for federal income
tax purposes. Section 1.446–1(e)(3)(ii)
authorizes the Commissioner to prescribe
administrative procedures setting forth the
limitations, terms, and conditions neces-
sary to permit a taxpayer to obtain consent
to change a method of accounting. Sec-
tion 7 of this revenue procedure provides
the procedures by which a taxpayer may
obtain automatic consent for a change
in method of accounting to adopt either
of the alternative safe harbor approaches
provided by this revenue procedure.
SECTION 3. SCOPE
This revenue procedure applies to a tax-
payer that has a depreciable interest in
wireline network assets (as described in
section 4 of this revenue procedure) used
primarily to provide wireline telecommu-
nication or broadband services. This rev-
enue procedure does not apply to a tax-
payer that is primarily a cable operator.
The determination of whether a taxpayer is
within the scope of this revenue procedure
is made by each member of a consolidated
group, by a partnership, or by an S corpo-
ration.
SECTION 4. DEFINITIONS
The following definitions apply solely
forpurposesofthisrevenue procedure:
.01Wireline network assets.“Wireline
network assets” means all personal and
real property used by a wireline carrier to
provide telecommunication or broadband
services. Wireline network assets include
central office buildings, central office
equipment, towers, poles, copper wire,
fiber optic cable, service area interface
boxes, and remote and network terminals.
Wireline network assets do not include
personal or real property not directly used
to provide wireline telecommunication
or broadband services, such as a corpo-
rate office building and the furniture and
equipment used in an office building.
.02Wire center. “Wire center” means
the wireline network assets located in the
geographic area served by a central office
(but not including the central office build-
ing or central office equipment).
.03Central office buildings.“Central
office buildings” means central office
buildings (including their structural com-
ponents) that house network equipment
necessary to provide voice or data services
(including video).
.04Central office equipment.“Central
office equipment” means all switching,
transmission, and support equipment at
a central office building. Central office
equipment includes central processors,
switching modules, line cards, input/out-
put controllers, optical line terminal equip-
ment, routers, multiplexers, repeaters,
amplifiers, digital cross-connect systems,
channel banks, modulators, regenerators,
signal converters, batteries, generators,
HVAC’s required to keep equipment in
a central office building at efficient op-
erating levels, and frames that house the
equipment where cross connections are
2011–18 I.R.B.740May 2, 2011

made between the outside cable pairs and
the central office equipment.
.05Service area interface.“Service
area interface” box (SAI) means an out-
door telecommunications cabinet mounted
on the ground (typically on cable right-of-
ways) or on telephone poles that protects
splice points.
.06Remote and network terminal.“Re-
mote and network terminal” (RNT) means
a terminal located outside the central of-
fice building that provides management
and maintenance functions, and computes
bandwidth profiles used for the wireline
network and customer premises equip-
ment.
SECTION 5. NETWORK ASSET
MAINTENANCE ALLOWANCE
METHOD FOR WIRELINE NETWORK
ASSETS
.01In general. Under the network as-
set maintenance allowance method, the
taxpayer must determine the amount of its
wireline network asset expenditures that
are not required to be capitalized under
section 5.02 of this revenue procedure
(network asset maintenance allowance)
and the amount of wireline network asset
expenditures that are treated as § 263(a)
capital expenditures under section 5.03
of this revenue procedure (§ 263(a) cap-
ital expenditures). A taxpayer that uses
the network asset maintenance allowance
method described in this section 5 must
use that method for all of its wireline net-
work asset expenditures (which includes
expenditures relating to wireline network
assets acquired in an applicable asset ac-
quisition as defined in § 1060 or in a
transaction to which § 338(h)(10) applies,
even though the cost of such property is
removedfromthetotalcostofcapitalad-
ditions for the taxable year as provided in
§ 5.02(2)(b)-(c) below).
.02Network asset maintenance al-
lowance. The amount of the network asset
maintenance allowance for a particular
taxable year is determined as follows:
(1) Start with the total cost of capital
additions for financial statement purposes
that are placed in service (within the mean-
ing of § 1.46–3(d)(1)(ii)) during the tax-
able year.
(2) Decrease the amount determined in
(1) by the following amounts:
(a) the cost of property other than wire-
line network assets;
(b) the cost of any wireline network as-
sets acquired in an applicable asset acqui-
sition as defined in § 1060; and
(c) the cost of any wireline network
assets acquired in a transaction to which
§ 338(h)(10) applies.
(3) Adjust the amount determined af-
ter applying steps (1) and (2) to deter-
mine the adjusted basis of the property un-
der § 1011, including any adjustments de-
scribed in § 1016 except for the following:
(a) Any basis adjustments attributable
to changes made after December 31, 2007
to the taxpayer’s unit of property defini-
tions used for repair versus capitalization
determinations.
(b) Any adjustments described in
§ 1016(a)(2) and § 1016(a)(3) and any
adjustments that require tax basis to be
reduced before depreciation is computed
(e.g., § 179, § 179D, or similar provisions;
§44and§46;andthepaymentsforspec-
ified energy property under § 1603 of the
American Recovery and Reinvestment
Tax Act of 2009, Division B, Pub. L.
111–5, 123 Stat. 115 (section 1603 pay-
ments)).
(4) Using the adjusted basis determined
in step (3), determine the amount attrib-
utable to 5-year, 7-year, 10-year, 15-year,
and 20-year property and nonresidential
real property, and multiply each of these
amounts by 12%. The result is the network
asset maintenance allowance for each class
of property.
(5) The sum of the network asset main-
tenance allowances determined in (4) for
each class of property is the taxpayer’s net-
work asset maintenance allowance amount
for the taxable year.
.03§ 263(a) capital expenditures.The
wireline network asset capital expendi-
tures for § 263(a) for the taxable year under
the network asset maintenance allowance
method are determined as follows:
(1) Start with the adjusted basis for
5-year, 7-year, 10-year, 15-year, and
20-year property and nonresidential real
property determined in section 5.02(4)
above.
(2) For each class of property, multiply
the adjusted basis attributable to the class
of property by 88%. The result is each
class of property’s basis amount after tak-
ing into account the network asset mainte-
nance allowance.
(3) For each class of property, allocate
that class of property’s basis amount deter-
mined in 5.03(2) among the class of prop-
erty’s wireline network assets (excluding
the wireline network assets acquired in
an applicable asset acquisition as defined
in § 1060 or in a transaction to which
§ 338(h)(10) applies) according to the ba-
sis of each wireline network asset deter-
mined before application of the network
asset maintenance allowance.
(4) The amount determined in (3) for
each network asset (excluding the wireline
network assets acquired in an applicable
asset acquisition as defined in § 1060 or
in a transaction to which § 338(h)(10) ap-
plies) is the basis of such asset to be used to
determine the deductions allowable or in-
come tax credits available that require tax
basis to be reduced before any depreciation
is computed (for example, § 179, § 179D,
or similar provisions; § 44 and § 46; and
section 1603 payments). The net amount
for each network asset after the reduction
in basis for such deductions, credits, and
section 1603 payments is that property’s
§ 1.168(b)–1(a)(3) unadjusted depreciable
basis.
(5) In addition, expenditures for wire-
line network assets acquired in an applica-
ble asset acquisition as defined in § 1060
orinatransactiontowhich§338(h)(10)
applies are capitalexpenditures under
§ 263(a) to which the ordinarily applicable
basis and holding period rules and regula-
tions apply.
.04Required schedule. A taxpayer
utilizing the wireline network asset main-
tenance allowance method must attach
a schedule to its federal income tax re-
turn for the taxable year identifying the
amounts for each step of the network asset
maintenance allowance method compu-
tation provided in sections 5.02(1)-(5)
above.
.05Example.Xis a wireline carrier with network
assets used primarily to provide wireline telecommu-
nication or broadband services.Xadopts the wireline
network maintenance allowance method provided in
this revenue procedure. To determine the wireline
network asset maintenanceallowance for the taxable
year,Xfirst determines its adjusted basis attributable
to wireline network assets as follows:
May 2, 20117412011–18 I.R.B.

Total cost of capital additions placed in service for the taxable year per financial statements
$1,000,000,000
Less: Cost of property other than wireline network assets (e.g. land, intangibles, etc.)
($100,000,000)
Less: Cost of assets acquired in a § 1060 or § 338(h)(10) transaction
($11,000,000)
Less/Plus: Other basis adjustments (excluding adjustments per IRC §§ 1016(a)(2) & (a)(3) and sections
5.02(3)(a) & 5.03(4) of this rev. proc.)
($3,000,000)
Adjusted basis attributable to network assets that are 5-year, 7-year, 10-year, 15-year, and 20-year property
and nonresidential real property
$886,000,000
Multiply by: Maintenance allowance percentage (12%)X 12%
Network asset maintenance allowance amount
$106,320,000
SECTION 6. UNITS OF PROPERTY
FOR WIRELINE NETWORK ASSETS
.01In general.For wireline network
assets, the Service will not challenge any
of the following unit of property determi-
nations for purposes of the application of
§ 263(a) and the regulations thereunder:
(A) all the towers and poles, and all the
structures and fittings mounted on towers
and poles, (“fully-dressed poles”) in a wire
center constitute a single unit of property;
(B) all the copper wire and any associ-
ated devices, whether overhead or under-
ground, in a wire center constitute a single
unit of property;
(C) all the fiber optic cable and any as-
sociated devices, whether overhead or un-
derground, in a wire center constitute a sin-
gle unit of property;
(D) all the underground conduit and
ducts, as well as controlled environmen-
tal vaults (“CEVs”), manholes, and hand-
holes, in a wire center constitute a single
unit of property;
(E) each central office building (includ-
ing its structural components) constitutes a
single unit of property;
(F) all central office equipment associ-
ated with a central office building consti-
tutes a single unit of property;
(G) all SAI boxes in a wire center con-
stitute a single unit of property; and
(H) all RNTs in a wire center constitute
a single unit of property.
.02Universal adoption not required.A
taxpayer within the scope of this revenue
procedure is not required to adopt all of
the unit of property determinations pro-
vided in section 6.01 of this revenue proce-
dure and, therefore, may adopt one or more
of the unit of property determinations pro-
vided. Once adopted, however, a unit of
property determination applies to all sim-
ilar assets, including similar wireline net-
work assets acquired in an applicable as-
set acquisition as defined in § 1060 or in a
transaction to which § 338(h)(10) applies.
.03Limitation. The unit of property de-
terminations provided in this revenue pro-
cedure shall not apply for any other pur-
pose of the Code or Regulations, includ-
ing for determining the unit of property
under other Code sections (for example,
§ 263A), or determining the asset for de-
preciation purposes (including placed in
service, retirements, dispositions, or clas-
sification under § 168(e) or Rev. Proc.
87–56, 1987–2 C.B. 674), for the same
or similar type of assets used in wireline
telecommunications or other industries.
SE
CTION 7. CHANGE IN METHOD
OF
ACCOUNTING
.01In general. A change to (1) the
wireline network asset maintenance al-
lowance method or (2) adoption of all, or
some, of the units of property described
in this revenue procedure is a change
in method of accounting to which the
provisions of §§ 446 and 481, and the reg-
ulations thereunder, apply. A taxpayer that
wants to change to a method of account-
ing described in this revenue procedure
must use the automatic change in method
of accounting provisions in Rev. Proc.
2011–14, 2011–4 I.R.B. 330, or its succes-
sor, as modified by this revenue procedure.
.02Automatic change.Rev.Proc.
2011–14 is modified to add new section
3.07 to the APPENDIX, to read as follows:
.07Wireline network asset maintenance
allowance and units of property methods of
accounting under Rev. Proc. 2011–27.
(1)Description of change. This change
applies to a wireline telecommunications
carrier that is within the scope of Rev.
Proc. 2011–27 and wants to change its
treatment of wireline network asset expen-
ditures to adopt either (a) the wireline net-
work asset maintenance allowance method
of accounting or (b) all, or some, of the
units of property described in Rev. Proc.
2011–27.
(2)Waiver of scope limitations.The
scope limitations in section 4.02 of this
revenue procedure do not apply to a
wireline telecommunications carrier that
changes to a method of accounting pro-
vided in section 5 or section 6 of Rev.
Proc. 2011–27 for its first or second tax-
able year ending after December 30, 2010.
(3)Section 481(a) adjustment.Ingen-
eral, a change to the wireline network
asset maintenance allowance method of
accounting or adoption of all, or some,
of the units of property specified in Rev.
Proc. 2011–27 requires an adjustment
under § 481(a). The § 481(a) adjustment
shall not include any amount attribut-
able to property for which the taxpayer
elected to apply the repair allowance under
§ 1.167(a)–11(d)(2).
(4)Ogden copy of Form 3115 required
in lieu of national office copy. A taxpayer
changing its method of accounting under
section3.07oftheAPPENDIXmustfile
a signed copy of its completed Form 3115
with the IRS in Ogden, UT, (Ogden copy)
in lieu of filing the national office copy
no earlier than the first day of the year
of change and no later than the date the
taxpayer files the original Form 3115 with
its federal income tax return for the year
of change.Seesection 6.02(3)(a)(ii)(B)
(providing the general rules) and section
6.02(7)(b) (providing the mailing address)
of this revenue procedure.
(5)Designated automatic accounting
method change number. The designated
automatic accounting method change
2011–18 I.R.B.742May 2, 2011

number for a change to the method of ac-
counting provided in Rev. Proc. 2011–27
is “158.”
(6)Contact information. For further
information regarding a change under this
section, contact Alan S. Williams at (202)
622–4950 (not a toll-free call).
SECTION 8. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2011–14 is modified to in-
clude the accounting method change in this
revenue procedure in section 3 of the Ap-
pendix.
SECTION 9. EFFECTIVE DATE
This revenue procedure is effective
for taxable years ending on or after
December 31, 2010.
SECTION 10. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Alan S. Williams of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue procedure, contact
Alan S. Williams at (202) 622–4950 (not
a toll-free call).
26 CFR 1.263(a)–1: Capital expenditures; in gen-
eral.
(Also Part I, §§ 162, 446, 481; 1.167(a)–11,
1.446–1.)
Rev. Proc. 2011–28
SECTION 1. PURPOSE
This revenue procedure provides two
alternative safe harbor approaches that tax-
payers may use to determine whether ex-
penditures to maintain, replace, or improve
wireless network assets must be capital-
ized under § 263(a) of the Internal Rev-
enue Code: a network asset maintenance
allowance method or a units of property
method. This revenue procedure also pro-
vides procedures for obtaining automatic
consent to change to either safe harbor
method of accounting permitted by this
revenue procedure.
SECTION 2. BACKGROUND
.01 Taxpayers that provide wireless
telecommunication services incur signif-
icant expenditures to maintain, replace,
and improve wireless network property.
Whether these expenditures are deductible
as repairs under § 162 or must be capi-
talized as improvements under § 263(a)
depends on whether the expenditures ma-
terially increase thevalue of the property
or substantially prolong its useful life.See
§ 1.162–4 of the Income Tax Regulations.
Applying capitalization principles to wire-
less network assets can be particularly
difficult, largely because the property con-
sists of a network of interconnected items
such as mobile telephone switching offices
and property located at cell sites. Tax-
payers and the Internal Revenue Service
often do not agree on which items within
this network constitute discrete units of
property and whether the replacement of
a particular item materially increases the
value or substantially prolongs the useful
life of a unit of property.
.02 To minimize disputes regarding the
deductibility or capitalization of expen-
ditures to maintain, replace, or improve
wireless network assets, this revenue
procedure provides two alternative safe
harbor approaches. Section 5 provides
a wireless “network asset maintenance
allowance method” for determining the
amount of expenditures required to be cap-
italized under § 263(a). Section 6 defines
units of property that may be adopted and
to which existing principles under § 263(a)
are applied.
.03 A taxpayer’s method for deter-
mining whether an expenditure is de-
ductible or is capitalizable is a method of
accounting under § 446. Except as oth-
erwise expressly provided by the Code
or the regulations thereunder, § 446(e)
and § 1.446–1(e)(2) require a taxpayer to
secure the consent of the Commissioner
of Internal Revenue before changing a
method of accounting for federal income
tax purposes. Section 1.446–1(e)(3)(ii)
authorizes the Commissioner to prescribe
administrative procedures setting forth the
limitations, terms, and conditions neces-
sary to permit a taxpayer to obtain consent
to change a method of accounting. Sec-
tion 7 of this revenue procedure provides
the procedures by which a taxpayer may
obtain automatic consent for a change
in method of accounting to adopt either
of the alternative safe harbor approaches
provided by this revenue procedure.
SECTION 3. SCO
PE
This revenue procedure applies to a tax-
payer that has a depreciable interest in
wireless network assets (as described in
section 4 of this revenue procedure) used
primarily to provide wireless telecommu-
nication or broadband services by mobile
phones (for example, cell phones or smart-
phones). This revenue procedure does not
apply to a taxpayer that is primarily a cable
operator. The determination of whether a
taxpayer is within the scope of this revenue
procedure is made by each member of a
consolidated group, by a partnership, or by
an S corporation.
SECTION 4. DEFINITIONS
The following definitions apply solely
forpurposesofthisrevenue procedure:
.01Wireless network assets.“Wireless
network assets” means all personal and
real property used by a wireless telecom-
munications carrier toprovide wireless
telecommunication or broadband services
by mobile phone. Wireless network assets
include a mobile telephone switching of-
fice (MTSO) and property located at cell
sites. Wireless network assets do not in-
clude personal or real property not directly
used to provide wireless telecommuni-
cation or broadband services by mobile
phone, such as a corporate office building
and the furniture and equipment used in
an office building.
.02Mobile telephone switching of-
fice. “Mobile telephone switching office”
(MTSO) means a central switching facil-
ity that transmits wireless voice and data
(including video) communications to and
from cell sites and other equipment that
comprise the wireless network, and also
connects the wireless network to the wire-
line network (public switched telephone
network). The MTSO and its equipment
are powered by conventional electrical
service with back-up support from electric
generators or battery systems.
.03MTSO equipment.“MTSOequip-
ment” means the equipment located at
a MTSO and typically includes com-
puter-based switching equipment and
related equipment at the MTSO (including
May 2, 20117432011–18 I.R.B.

the computer-based switching equipment,
base station controllers (or generational
equivalent), radio network controllers,
mobility managers, operations and man-
agement platforms, protocol handlers,
vocoders, modems, cross-connects, op-
tical-cross connect bays, and associated
cables), dedicated heating, ventilation, and
air conditioning (HVAC) equipment and
dedicated power (including battery backup
system) for the computer-based switching
equipment and related equipment at the
MTSO.
.04Cell site transmission equipment.
“Cell site transmission equipment” in-
cludes the antenna systems (including the
antenna itself, antenna cables, microwave
equipment, RET equipment, and the RET
central control unit (CCU) controller) but
does not include base transceiver station
radio cabinets or cell site support and other
equipment.
.05Cell site radio equipment.“Cell
site radio equipment” includes the base
station controller (or generational equiv-
alent), base transceiver station (or gen-
erational equivalent), their own weather
proof enclosure or cabinet (including any
equipment integrated into or built into
the base station controller or base trans-
ceiver station; for example, integrated or
built-in equipment might include HVAC
and power equipment, alarms, enhanced
911 service equipment, or the RET CCU
controller), and associated cables.
.06Cell site support equipment.“Cell
site support equipment” includes the
alarms or enhanced 911 service equipment
not integrated into or built into a base sta-
tion controller or basetransceiver station,
and associated cables. This unit of prop-
erty does not include general incoming
power panels, general receptacles, gen-
eral lighting, common cell site enclosure
grounding systems, or equipment inte-
grated into or considered part of the cell
site enclosure.
SECTION 5. NETWORK ASSET
MAINTENANCE ALLOWANCE
METHOD FOR WIRELESS NETWORK
ASSETS
.01In general. Under the network as-
set maintenance allowance method, the
taxpayer must determine the amount of its
wireless network asset expenditures that
are not required to be capitalized under
section 5.02 of this revenue procedure
(network asset maintenance allowance)
and the amount of wireless network asset
expenditures that are treated as § 263(a)
capital expenditures under section 5.03
of this revenue procedure (§ 263(a) cap-
ital expenditures). Ataxpayer that uses
the network asset maintenance allowance
method described in this section 5 must
use that method for all of its wireless net-
work asset expenditures (which includes
expenditures relating to wireless network
assets acquired in an applicable asset ac-
quisition as defined in § 1060 or in a
transaction to which § 338(h)(10) applies,
even though the cost of such property is
removedfromthetotalcostofcapitalad-
ditions for the taxable year as provided in
§ 5.02(2)(b)-(c) below).
.02Network asset maintenance al-
lowance. The amount of the network asset
maintenance allowance for a particular
taxable year is determined as follows:
(1) Start with the total cost of capital
additions for financial statement purposes
that are placed in service (within the mean-
ing of § 1.46–3(d)(1)(ii)) during the tax-
able year.
(2) Decrease the amount determined in
(1) by the following amounts:
(a) the cost of property other than wire-
less network assets;
(b) the cost of any wireless network as-
sets acquired in an applicable asset acqui-
sition as defined in § 1060; and
(c) the cost of any wireless network
assets acquired in a transaction to which
§ 338(h)(10) applies.
(3) Adjust the amount determined af-
ter applying steps (1) and (2) to deter-
mine the adjusted basis of the property un-
der § 1011, including any adjustments de-
scribed in § 1016 except for the following:
(a) Any basis adjustments attributable
to changes made after December 31, 2007
to the taxpayer’s unit of property defini-
tions used for repair versus capitalization
determinations.
(b) Any adjustments described in
§ 1016(a)(2) and § 1016(a)(3) and any
adjustments that require tax basis to be
reduced before depreciation is computed
(e.g., § 179, § 179D, or similar provi-
sions;§44and§46;andthepaymentsfor
specified energy property under § 1603
of the American Recovery and Reinvest-
ment Tax Act of 2009, Division B, Pub.
L. 111–5, 123 Stat. 115 (section 1603
payments)).
(4) Using the adjusted basis determined
in step (3), determine the amount attribut-
able to 5-year, 7-year, and 15-year prop-
erty and nonresidential real property, and
multiply each of these amounts by 5%.
The result is the network asset mainte-
nance allowance for each class of property.
(5) The sum of the network asset main-
tenance allowances determined in (4) for
each class of property is the taxpayer’s net-
work asset maintenance allowance amount
for the taxable year.
.03§ 263(a) capital expenditures.The
wireless network asset capital expendi-
tures for § 263(a) for the taxable year under
the network asset maintenance allowance
method are determined as follows:
(1) Start with the adjusted basis for
5-year, 7-year, and 15-year property and
nonresidential real property determined in
section 5.02(4) above.
(2) For each class of property, multiply
the adjusted basis attributable to the class
of property by 95%. The result is each
class of property’s basis amount after tak-
ing into account the network asset mainte-
nance allowance.
(3) For each class of property, allocate
that class of property’s basis amount de-
termined in 5.03(2) among the class of
property’s wireless network assets (ex-
cluding wireless network assets acquired
in an applicable asset acquisition as de-
fined in § 1060 or in a transaction to which
§ 338(h)(10) applies) according to the
basis of each wireless network asset deter-
mined before application of the network
asset maintenance allowance.
(4) The amount determined in (3) for
each network asset (excluding wireless
network assets acquired in an applicable
asset acquisition as defined in § 1060 or
in a transaction to which § 338(h)(10) ap-
plies) is the basis of such asset to be used
to determine the deductions allowable or
income tax credits available that require
tax basis to be reduced before any depre-
ciation is computed (for example, § 179,
§ 179D, or similar provisions; § 44 and
§46;andsection1603payments). The
net amount for each network asset after
the reduction in basis for such deductions,
credits, and section 1603 payments is that
property’s § 1.168(b)–1(a)(3) unadjusted
depreciable basis.
2011–18 I.R.B.744May 2, 2011

(5) In addition, expenditures for wire-
less network assets acquired in an applica-
ble asset acquisition as defined in § 1060
or in a transaction to which § 338(h)(10)
applies are capital expenditures under
§ 263(a) to which the ordinarily applicable
basis and holding period rules and regula-
tions apply.
.04Required schedule. A taxpayer uti-
lizing the network asset maintenance al-
lowance method must attach a schedule to
its federal income tax return for the tax-
able year identifying the amounts for each
step of the network asset maintenance al-
lowance method computation provided in
sections 5.02(1)-(5) above.
.05Example. X is a wireless telecommunications
carrier with wireless network assets used primarily
to provide wireless telecommunication or broadband
services by mobile phones. X adopts the wireless net-
work asset maintenance allowance method provided
in this revenue procedure. To determine the wireless
network asset maintenanceallowance for the taxable
year, X first determines its adjusted basis attributable
to wireless network assets as follows:
Total cost of capital additions placed in service for the taxable year per financial statements
$1,000,000,000
Less: Cost of property other than wireless network assets (e.g.land, intangibles, etc.)
($100,000,000)
Less: Cost of assets acquired in a § 1060 or § 338(h)(10) transaction
($11,000,000)
Less/Plus: Other basis adjustments (excluding adjustments per IRC §§ 1016(a)(2) & (a)(3) and sections
5.02(3)(a) & 5.03(4) of this rev. proc.)
($3,000,000)
Adjusted basis attributable to network assets that are 5-year, 7-year, and 15-year property and nonresidential
real property
$886,000,000
Multiply by: Maintenance allowance percentage (5%)X5%
Network asset maintenance allowance amount
$44,300,000
SECTION 6. UNITS OF PROPERTY
FOR WIRELESS NETWORK ASSETS
.01In gener
al. For wireless network
assets, the
Service will not challenge any
of the follo
wing unit of property determi-
nations fo
r purposes of the application of
§263(a)an
d the regulations thereunder:
(A) the MTS
O building (including its
structura
l components) constitutes a single
unit of pro
perty;
(B) all of t
he MTSO equipment consti-
tutes a sin
gle unit of property;
(C) all cel
l site transmission equipment
at a cell si
te constitutes a single unit of
property;
(D) all cel
l site radio equipment at a cell
site const
itutes a single unit of property;
(E) all cel
l site support equipment at a
cell site
constitutes a single unit of prop-
erty;
(F) the an
tenna support structure (also
known as a
tower) affixed to a founda-
tion (for
example, a concrete foundation,
a buildin
g rooftop, or a building wall) at a
cell site
constitutes a single unit of prop-
erty;
(G) the co
ncrete foundation upon which
the ante
nna support structure is installed,
includi
ng the bolts embedded therein and
other de
preciable assets associated with
the plat
form or other forms of anchoring to
affix a t
ower to a foundation, constitutes a
single
unit of property;
(H) the cell site enclosure (hut) and the
cement slab or foundation upon which the
hut is installed constitute a single unit of
property; and
(I) all depreciable land improvements
at a cell site constitute a single unit of
property. Depreciable land improvements
include landscaping that is replaced when
a related depreciable asset is replaced,
fences, and sidewalks, but exclude enclo-
sures or buildings suitable for occupation
and any improvements properly capital-
ized to the land.
.02Universal adoption not required.A
taxpayer within the scope of this revenue
procedure is not required to adopt all of
the unit of property determinations pro-
vided in section 6.01 of this revenue proce-
dure and, therefore, may adopt one or more
of the unit of property determinations pro-
vided. Once adopted, however, a unit of
property determination applies to all sim-
ilar assets, including similar wireless net-
work assets acquired in an applicable as-
set acquisition as defined in § 1060 or in a
transaction to which § 338(h)(10) applies.
.03Limitation. The unit of property de-
terminations provided in this revenue pro-
cedure shall not apply for any other pur-
pose of the Code or Regulations, includ-
ing for determining the unit of property
under other Code sections (for example,
§ 263A), or determining the asset for de-
preciation purposes (including placed in
service, retirements, dispositions, or clas-
sification under § 168(e) or Rev. Proc.
87–56, 1987–2 C.B. 674), for the same
or similar type of assets used in wireless
telecommunications or other industries.
SECTION 7.
CHANGE IN METHOD
OF ACCOUNT
ING
.01In general. A change to (1) the
wireless network asset maintenance al-
lowance method or (2) adoption of all, or
some, of the units of property described
in this revenue procedure is a change
in method of accounting to which the
provisions of §§ 446 and 481, and the reg-
ulations thereunder, apply. A taxpayer that
wants to change to a method of account-
ing described in this revenue procedure
must use the automatic change in method
of accounting provisions in Rev. Proc.
2011–14, 2011–4 I.R.B. 330, or its succes-
sor, as modified by this revenue procedure.
.02Automatic change.Rev.Proc.
2011–14 is modified to add new section
3.08 to the APPENDIX, to read as follows:
.08Wireless network asset maintenance
allowance and units of property methods of
accounting under Rev. Proc. 2011–28.
(1)Description of change. This change
applies to a wireless telecommunications
carrier that is within the scope of Rev.
Proc. 2011–28 and wants to change its
treatment of wireless network asset expen-
ditures to adopt either (a) the wireless net-
work asset maintenance allowance method
May 2, 20117452011–18 I.R.B.

of accounting or (b) all, or some, of the
units of property described in Rev. Proc.
2011–28.
(2)Waiver of scope limitations.The
scopelimitationsinsection4.02ofthis
revenue procedure do not apply to a
wireless telecommunications carrier that
changes to a method of accounting pro-
videdinsection5orsection6ofRev.
Proc. 2011–28 for its first or second tax-
able year ending after December 30, 2010.
(3)Section 481(a) adjustment.Ingen-
eral, a change to the wireless network
asset maintenance allowance method of
accounting or adoption of all, or some,
of the units of property specified in Rev.
Proc. 2011–28 requires an adjustment
under § 481(a). The § 481(a) adjustment
shall not include any amount attribut-
able to property for which the taxpayer
elected to apply the repair allowance under
§ 1.167(a)–11(d)(2).
(4)Ogden copy of Form 3115 required
in lieu of national office copy. A taxpayer
changing its method of accounting under
section 3.08 of the APPENDIX must file
a signed copy of its completed Form 3115
with the IRS in Ogden, UT, (Ogden copy)
in lieu of filing the national office copy
no earlier than the first day of the year
of change and no later than the date the
taxpayer files the original Form 3115 with
its federal income tax return for the year
of change.Seesections 6.02(3)(a)(ii)(B)
(providing the general rules) and section
6.02(7)(b) (providing the mailing address)
of this revenue procedure.
(5)Designated automatic accounting
method change numbers. The designated
automatic accounting method change
number for a change to the method of ac-
counting provided in Rev. Proc. 2011–28
is “159.”
(6)Contact information. For further
information regarding a change under this
section, contact Alan S. Williams at (202)
622–4950 (not a toll-free call).
SECTION 8. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2011–14 is modified to in-
clude the accounting method change in this
revenue procedure in section 3 of the Ap-
pendix.
SECTION 9. EFFECTIVE DATE
This revenue procedure is effective
for taxable years ending on or after
December 31, 2010.
SECTION 10. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Alan S. Williams of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue procedure, contact
Alan S. Williams at (202) 622–4950 (not
a toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also Part I, §§ 263(a), 1.263(a)–5.)
Rev. Proc. 2011–29
SECTION 1. PURPOSE
This revenue procedure provides a
safe harbor election for allocating suc-
cess-based fees paid in business acqui-
sitions or reorganizations described in
§ 1.263(a)–5(e)(3) of the Income Tax Reg-
ulations. In lieu of maintaining the doc-
umentation required by § 1.263(a)–5(f),
this safe harbor permits electing taxpayers
to treat 70 percent of the success-based fee
as an amount that does not facilitate the
transaction. The remaining portion of the
fee must be capitalized as an amount that
facilitates the transaction.
SECTION 2. BACKGROUND
.01 Section 263(a)(1) of the Internal
Revenue Code and § 1.263(a)–2(a) pro-
vide that no deduction shall be allowed for
any amount paid out for property having
a useful life substantially beyond the tax-
able year. In the case of an acquisition or
reorganization of a business entity, costs
that are incurred in the process of acquisi-
tion and that produce significant long-term
benefits must be capitalized.INDOPCO,
Inc. v. Commissioner, 503 U.S. 79, 89–90
(1992);Woodward v. Commissioner,397
U.S. 572, 575–576 (1970).
.02 Under § 1.263(a)–5, a taxpayer
must capitalize an amount paid to facilitate
a business acquisition or reorganization
transaction described in § 1.263(a)–5(a).
An amount is paid to facilitate a transac-
tion described in § 1.263(a)–5(a) if the
amount is paid in the process of investigat-
ing or otherwise pursuing the transaction.
.03 Section 1.263(a)–5(f) provides that
an amount that is contingent on the suc-
cessful closing of a transaction described
in § 1.263(a)–5(a) (“success-based fee”)
is presumed to facilitate the transaction.
A taxpayer may rebut the presumption by
maintaining sufficient documentation to
establish that a portion of the fee is allo-
cable to activities that do not facilitate the
transaction.
.04 A taxpayer’s method for determin-
ing the portion of a success-based fee that
facilitates a transaction and the portion
that does not facilitate the transaction is a
method of accounting under § 446.
.05 The Internal Revenue Service and
the Treasury Department are aware that
the treatment of success-based fees con-
tinues to be the subject of controversy
between taxpayers and the Service. In
particular, numerous disagreements have
arisen regarding the type and extent of
documentation required to establish that a
portion of a success-based fee is allocable
to activities that do not facilitate a business
acquisition or reorganization transaction
described in § 1.263(a)–5(e)(3) (“cov-
ered transaction”). The Service and the
Treasury Department expect that much
of this controversy can be eliminated by
providing taxpayers a simplified method
for allocating a success-based fee paid in
a covered transaction between facilitative
and non-facilitative activities. Accord-
ingly, this revenue procedure provides
a safe harbor election for allocating a
success-based fee between activities that
facilitate a covered transaction and ac-
tivities that do not facilitate a covered
transaction.
SECTION 3. SCOPE
This revenue procedure applies to a tax-
payer that—
(1) pays or incurs a success-based fee
for services performed in the process of in-
vestigating or otherwise pursuing a trans-
action described in § 1.263(a)–5(e)(3); and
(2) makes the safe harbor election de-
scribed in section 4 of this revenue proce-
dure.
2011–18 I.R.B.746May 2, 2011

SECTION 4. SAFE HARBOR
ELECTION
.01 The Service will not challenge a tax-
payer’s allocation of a success-based fee
between activities that facilitate a transac-
tion described in § 1.263(a)–5(e)(3) and
activities that do not facilitate the transac-
tion if the taxpayer—
(1) treats 70 percent of the amount of
the success-based fee as an amount that
does not facilitate the transaction;
(2) capitalizes the remaining 30 percent
as an amount that does facilitate the trans-
action; and
(3) attaches a statement to its original
federal income tax return for the taxable
year the success-based fee is paid or in-
curred, stating that the taxpayer is electing
the safe harbor, identifying the transaction,
and stating the success-based fee amounts
that are deducted and capitalized.
.02 An election under this revenue pro-
cedure applies only to the transaction for
which the election is made and, once made,
is irrevocable. The election applies with
respect to all success-based fees paid or in-
curred by the taxpayer in the transaction
for which the election is made.
.03 An election under this revenue pro-
cedure for any transaction does not con-
stitute a change in method of accounting
for success-based fees generally. Accord-
ingly, a § 481(a) adjustment is neither per-
mitted nor required.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective for
success-based fees paid or incurred in tax-
able years ending on or after April 8, 2011.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice
is Nancy J. Lee of the Office of As-
sociate Chief Counsel (Income Tax &
Accounting). For further information re-
garding this notice, contact Nancy J. Lee
or Jason D. Kristall of the Office of
Associate Chief Counsel (Income Tax &
Accounting) at (202) 622–5020 (not a
toll-free call).
May 2, 20117472011–18 I.R.B.

Part IV. Items o
fGeneralInterest
Rewards and Aw
ards for
Information R
elating to
Violations of
Internal Revenue
Laws; Hearin
g
Announcement 2011–28
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of public hearing on pro-
posed rulemaking.
SUMMARY: This document provides no-
tice of public hearing on a notice of pro-
posed rulemaking relating to the payment
of rewards under section 7623(a) of the
Internal Revenue Code and awards under
section 7623(b). The guidance is neces-
sary to clarify the definition of proceeds of
amounts collected and collected proceeds
under section 7623. This regulation pro-
vides needed guidance to the general pub-
lic as well as officers and employees of
the IRS who review claims under section
7623.
DATES: The public hearing is being held
on Wednesday, May 11, 2011, at 10 a.m.
The IRS must receive outlines of the topics
to be discussed at the hearing by Tuesday,
April 19, 2011.
ADDRESSES: The public hearing is be-
ing held in the auditorium, Internal Rev-
enue Building, 1111 Constitution Avenue,
NW, Washington, DC. Send submissions
to: CC:PA:LPD:PR (REG–131151–10),
room 5203, Internal Revenue Service,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may
be hand-delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (REG–131151–10),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue, NW,
Washington, DC. Alternatively, taxpayers
may submit electronic outlines of oral
comments via the Federal eRulemaking
Portal athttp://www.regulations.gov.
FO
R FURTHER INFORMATION
CO
NTACT: Concerning the proposed
r
egulations, Kirsten N. Witter at (202)
9
27–0900; concerning submissions of
comments, the
hearing, and/or to be
placed on the b
uilding access list to at-
tend the heari
ng, Richard A. Hurst at
Richard.A.Hu
rst@irscounsel.treas.govor
(202) 622–718
0 (not toll-free numbers).
SUPPLEMENTAR
Y INFORMATION:
The subject o
f the public hearing is
the notice of
proposed rulemaking
(REG–131151
–10) that was published
in theFedera
lRegisteron Tuesday,
January 18,
2011 (76 FR 2852).
Persons, who
wish to present oral com-
ments at the
hearing that submitted writ-
ten comment
s, must submit an outline of
the topics t
o be discussed and the amount
of time to be
devoted to each topic (signed
original a
nd eight (8) copies) by Tuesday,
April 19, 2
011.
Aperiodof
10 minutes is allotted to
each perso
n for presenting oral comments.
After the d
eadline for receiving out-
lines has p
assed, the IRS will prepare an
agenda co
ntaining the schedule of speak-
ers. Copi
es of the agenda will be made
availabl
e, free of charge, at the hearing or
in the Fre
edom of Information Reading
Room (FOI
A RR) (Room 1621) which
is locat
ed at the 11
th
and Pennsylvania
Avenue N
W entrance, 1111 Constitution
Avenue,
NW, Washington, DC.
Because
of access restrictions, the IRS
will not
admit visitors beyond the imme-
diate en
trance area more than 30 minutes
before
the hearing starts. For informa-
tion ab
out having your name placed on the
buildi
ng access list to attend the hearing,
see the
FOR FURTHER INFORMATION
CONTAC
T section of this document.
Guy R. T
raynor,
Acting
Chief,
Publi
cations and Regulations Branch,
Legal
Processing Division,
Assoc
iate Chief Counsel
(Proc
edure and Administration).
(Filed by the Office of the Federal Register on March 31,
2010, 8:45 a.m., and published in the issue of the Federal
Regis
ter for April 1, 2011, 76 F.R. 18134)
Reinstatemen
t of Renewal
Period For Enr
olled Agents
Whose Tax Iden
tification
Numbers End I
n4,5,Or6
Announcemen
t 2011–29
In Announcem
ent 2010–81, 2010–45
I.R.B 638, th
e IRS delayed the renewal
period unde
r section 10.6(d) of the regu-
lations gov
erning practice before the IRS,
Treasury De
partment Circular No. 230, 31
CFR part 10 (
Circular 230), for enrolled
agents who
se social security number or tax
identific
ation number ends in 4, 5, or 6.
This annou
ncement reinstates the renewal
period for
affected enrolled agents begin-
ning June 1
, 2011, which is thirty days af-
ter the pu
blication of this announcement.
Section 1
0.6(d) of Circular 230 requires
that, to m
aintain active enrollment to prac-
tice befo
re the IRS, enrolled agents must
renew enr
ollment every third year after ini-
tial enro
llment is granted. The renewal pe-
riod for
enrolled agents whose social se-
curity n
umber or tax identification num-
ber ends
in 4, 5, or 6 was scheduled to
begin on
November 1, 2010, and end on
January
31, 2011.
On Octob
er 14, 2010, the Treasury
Departm
ent and the IRS released An-
nounce
ment 2010–81, which delayed the
renewa
l period for enrolled agents whose
social
security number or tax identifi-
cation
number ends in 4, 5, or 6. The
Treasu
ry Department and the IRS delayed
the re
newal period at that time because it
antic
ipated issuing guidance that reduced
the in
itial enrollment and renewal of en-
rollm
ent user fees for enrolled agents and
enrol
led retirement plan agents. The re-
duct
ion in these user fees resulted from
the r
eallocation of portions of the enrolled
agen
t and enrolled retirement plan agent
init
ial enrollment and renewal of enroll-
ment
processes to the PTIN application
and
renewal process, which are recovered
by a
$50 user fee to the IRS to apply for or
ren
ew a preparer tax identification number
(PT
IN).SeeTreas. Reg. § 300.9. On
Apr
il 19, 2011, the Treasury Department
and
the IRS published final regulations
(T
.D. 9523, 76 FR 21805) that reduce the
en
rolled agent and enrolled retirement
2011–18 I.R.B.748May 2, 2011

plan agent initial enrollment and renewal
of enrollment user fees to $30.
Accordingly, the Treasury Department
and the IRS now announce that the renewal
period for enrolled agents is reinstated be-
ginning June 1, 2011. The renewal period
will conclude 90 days later on August 30,
2011. Enrolled agents whose social secu-
rity number or tax identification number
ends in 4, 5, or 6 must submit their applica-
tion for renewal of enrollment, along with
the $30 renewal fee, to the IRS during this
period. The IRS expects to process these
applications and issue enrollment cards be-
fore November 28, 2011, 90 days after the
end of the enrollment period.
The enrollment status of enrolled agents
who come within the provisions of An-
nouncement 2010–81 is not affected due
to the delay announced in that document.
Renewal of enrollment will be retroac-
tive to April 1, 2011, for enrolled agents
who come within the provisions of An-
nouncement 2010–81 and who properly
renew their enrollment before August 31,
2011. These enrolled agents must still
complete all continuing professional edu-
cation hours as provided in section 10.6(e)
of Circular 230.
Enrolled agents not affected by An-
nouncement 2010–81 should refer to
sections 10.6(d)(2) and (3) in Circular 230
to determine their renewal of enrollment
periods. Enrolled agents whose social
security numbers do not end in 4, 5, or 6,
whose renewal of enrollment period was
prior to January 31, 2011, and who are
delinquent in renewing their enrollment
must pay the $125 renewal fee.
The principal author of this an-
nouncement is Emily M. Lesniak of the
Office of the Associate Chief Counsel
(Procedure & Administration). For further
information regarding this notice, contact
Emily M. Lesniak at (202) 622–4570 (not
a toll-free call).
May 2, 20117492011–18 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2011–18 I.R.B.iMay 2, 2011

Numerical Finding List
1
Bulletin 2011–1 through 2011–18
Announcements:
2011-1, 2011-2 I.R.B.304
2011-2, 2011-3 I.R.B.324
2011-3, 2011-3 I.R.B.324
2011-4, 2011-4 I.R.B.424
2011-5, 2011-4 I.R.B.430
2011-6, 2011-4 I.R.B.433
2011-7, 2011-5 I.R.B.446
2011-8, 2011-5 I.R.B.446
2011-9, 2011-7 I.R.B.499
2011-10, 2011-7 I.R.B.499
2011-11, 2011-7 I.R.B.500
2011-12, 2011-9 I.R.B.532
2011-13, 2011-8 I.R.B.525
2011-14, 2011-9 I.R.B.532
2011-15, 2011-8 I.R.B.526
2011-16, 2011-7 I.R.B.500
2011-17, 2011-9 I.R.B.532
2011-18, 2011-12 I.R.B.567
2011-19, 2011-11 I.R.B.553
2011-20, 2011-10 I.R.B.542
2011-21, 2011-12 I.R.B.567
2011-22, 2011-16 I.R.B.672
2011-23, 2011-12 I.R.B.568
2011-24, 2011-12 I.R.B.569
2011-25, 2011-14 I.R.B.608
2011-26, 2011-14 I.R.B.608
2011-27, 2011-15 I.R.B.651
2011-28, 2011-18 I.R.B.748
2011-29, 2011-18 I.R.B.748
Notices:
2011-1, 2011-2 I.R.B.259
2011-2, 2011-2 I.R.B.260
2011-3, 2011-2 I.R.B.263
2011-4, 2011-2 I.R.B.282
2011-5, 2011-3 I.R.B.314
2011-6, 2011-3 I.R.B.315
2011-7, 2011-5 I.R.B.437
2011-8, 2011-8 I.R.B.503
2011-9, 2011-6 I.R.B.459
2011-10, 2011-6 I.R.B.463
2011-11, 2011-7 I.R.B.497
2011-12, 2011-8 I.R.B.514
2011-13, 2011-9 I.R.B.529
2011-14, 2011-11 I.R.B.544
2011-15, 2011-10 I.R.B.539
2011-16, 2011-17 I.R.B.720
2011-17, 2011-10 I.R.B.540
2011-18, 2011-11 I.R.B.549
2011-19, 2011-11 I.R.B.550
2011-20, 2011-16 I.R.B.652
Notices— Continued:
2011-22, 2011-12 I.R.B.557
2011-23, 2011-13 I.R.B.588
2011-24, 2011-14 I.R.B.603
2011-25, 2011-14 I.R.B.604
2011-26, 2011-17 I.R.B.720
2011-27, 2011-17 I.R.B.723
2011-28, 2011-16 I.R.B.656
2011-29, 2011-16 I.R.B.663
2011-30, 2011-17 I.R.B.724
2011-31, 2011-17 I.R.B.724
2011-32, 2011-18 I.R.B.737
Proposed Regulations:
REG-140108-08, 2011-13 I.R.B.591
REG-149335-08, 2011-6 I.R.B.468
REG-146097-09, 2011-8 I.R.B.516
REG-153338-09, 2011-14 I.R.B.606
REG-124018-10, 2011-2 I.R.B.301
REG-131151-10, 2011-8 I.R.B.519
REG-131947-10, 2011-8 I.R.B.521
REG-132724-10, 2011-7 I.R.B.498
Revenue Procedures:
2011-1, 2011-1 I.R.B.1
2011-2, 2011-1 I.R.B.90
2011-3, 2011-1 I.R.B.111
2011-4, 2011-1 I.R.B.123
2011-5, 2011-1 I.R.B.167
2011-6, 2011-1 I.R.B.195
2011-7, 2011-1 I.R.B.233
2011-8, 2011-1 I.R.B.237
2011-9, 2011-2 I.R.B.283
2011-10, 2011-2 I.R.B.294
2011-11, 2011-4 I.R.B.329
2011-12, 2011-2 I.R.B.297
2011-13, 2011-3 I.R.B.318
2011-14, 2011-4 I.R.B.330
2011-15, 2011-3 I.R.B.322
2011-16, 2011-5 I.R.B.440
2011-17, 2011-5 I.R.B.441
2011-18, 2011-5 I.R.B.443
2011-19, 2011-6 I.R.B.465
2011-20, 2011-11 I.R.B.551
2011-21, 2011-12 I.R.B.560
2011-22, 2011-18 I.R.B.737
2011-23, 2011-15 I.R.B.626
2011-25, 2011-17 I.R.B.725
2011-26, 2011-16 I.R.B.664
2011-27, 2011-18 I.R.B.740
2011-28, 2011-18 I.R.B.743
2011-29, 2011-18 I.R.B.746
Revenue Rulings:
2011-1, 2011-2 I.R.B.251
2011-2, 2011-2 I.R.B.256
Revenue Rulings— Continued:
2011-3, 2011-4 I.R.B.326
2011-4, 2011-6 I.R.B.448
2011-5, 2011-13 I.R.B.577
2011-6, 2011-10 I.R.B.537
2011-7, 2011-10 I.R.B.534
2011-8, 2011-12 I.R.B.554
2011-9, 2011-12 I.R.B.554
2011-10, 2011-14 I.R.B.597
Treasury Decisions:
9507, 2011-3 I.R.B.305
9508, 2011-7 I.R.B.495
9509, 2011-6 I.R.B.450
9510, 2011-6 I.R.B.453
9511, 2011-6 I.R.B.455
9512, 2011-7 I.R.B.473
9513, 2011-8 I.R.B.501
9514, 2011-9 I.R.B.527
9515, 2011-14 I.R.B.599
9516, 2011-13 I.R.B.575
9517, 2011-15 I.R.B.610
9518, 2011-17 I.R.B.710
9519, 2011-18 I.R.B.734
9520, 2011-18 I.R.B.730
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin
2010–52, dated December 27, 2010.
May 2, 2011ii2011–18 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2011–1 through 2011–18
Announcements:
85-88
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
2008-11
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2009-62
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
Notices:
2006-87
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-25
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-77
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2008-107
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2009-23
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-24
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-83
Modified by
Notice 2011-25, 2011-14 I.R.B.604
2010-27
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2010-59
Modified by
Notice 2011-5, 2011-3 I.R.B.314
2010-71
Modified and superseded by
Notice 2011-9, 2011-6 I.R.B.459
2010-79
Clarified and modified by
Notice 2011-4, 2011-2 I.R.B.282
Proposed Regulations:
REG-132554-08
Corrected by
Ann. 2011-11, 2011-7 I.R.B.500
REG-149335-08
Hearing scheduled by
Ann. 2011-26, 2011-14 I.R.B.608
Revenue Procedures:
72-50
Modified and superseded by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
76-34
Modified and supersed by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
83-23
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
94-17
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
97-27
Clarified and modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2001-10
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2002-28
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2003-21
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
2004-34
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Modified and clarified by
Rev. Proc. 2011-18, 2011-5 I.R.B.443
2006-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2006-56
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2008-52
Modified by
Notice 2011-4, 2011-2 I.R.B.282
Rev. Proc. 2011-17, 2011-5 I.R.B.441
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Revenue Procedures— Continued:
2009-39
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2010-1
Superseded by
Rev. Proc. 2011-1, 2011-1 I.R.B.1
2010-2
Superseded by
Rev. Proc. 2011-2, 2011-1 I.R.B.90
2010-3
Superseded by
Rev. Proc. 2011-3, 2011-1 I.R.B.111
2010-4
Superseded by
Rev. Proc. 2011-4, 2011-1 I.R.B.123
2010-5
Superseded by
Rev. Proc. 2011-5, 2011-1 I.R.B.167
2010-6
Superseded by
Rev. Proc. 2011-6, 2011-1 I.R.B.195
2010-7
Superseded by
Rev. Proc. 2011-7, 2011-1 I.R.B.233
2010-8
Superseded by
Rev. Proc. 2011-8, 2011-1 I.R.B.237
2010-9
Superseded by
Rev. Proc. 2011-9, 2011-2 I.R.B.283
2010-15
Updated by
Rev. Proc. 2011-13, 2011-3 I.R.B.318
2010-18
Amplified and modified by
Rev. Proc. 2011-21, 2011-12 I.R.B.560
2010-25
Obsoleted in part by
Rev. Proc. 2011-23, 2011-15 I.R.B.626
2011-1
Corrected by
Ann. 2011-7, 2011-5 I.R.B.446
2011-8
Corrected by
Ann. 2011-8, 2011-5 I.R.B.446
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin 2010–52, dated December 27,
2010.
2011–18 I.R.B.iiiMay 2, 2011

Revenue Procedures— Continued:
2011-11
Corrected by
Ann. 2011-9, 2011-7 I.R.B.499
2011-14
Modified by
Rev. Proc. 2011-27, 2011-18 I.R.B.740
Rev. Proc. 2011-28, 2011-18 I.R.B.743
Modified and amplified by
Rev. Proc. 2011-22, 2011-18 I.R.B.737
2011-21
Amplified by
Rev. Proc. 2011-26, 2011-16 I.R.B.664
Revenue Rulings:
81-100
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2004-67
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2008-40
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2011-3
Corrected by
Ann. 2011-16, 2011-7 I.R.B.500
Treasury Decisions:
9391
Corrected by
Ann. 2011-12, 2011-9 I.R.B.532
9505
Corrected by
Ann. 2011-10, 2011-7 I.R.B.499
May 2, 2011iv2011–18 I.R.B.

2011–18 I.R.B.May 2, 2011

May 2, 20112011–18 I.R.B.

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