Internal Revenue Bulletin 2012-34 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 201
2-34
August 20, 2012
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
T.D. 9597, page 258.
Final regulations under section 274(e)(2) and (9) of the Code
provide rules relating to the disallowance of deductions for ex-
penses for the use of business aircraft for entertainment of
specified individuals.
REG–101812–07, page 311.
Proposed regulations under section 274(e)(3) of the Code pro-
vide rules relating to the exception for reimbursed expenses to
the limitations on deductions for expenses for meals and en-
tertainment.
Rev. Proc. 2012–32, page 267.
This procedure provides the requirements for completing and
submitting Form 8655,Reporting Agent Authorization.Rev.
Proc. 2007–38 modified and superseded.
Rev. Proc. 2012–33, page 272.
This procedure updates the rules for using the EFTPS to remit
federal taxes to the Service. Rev. Proc. 98–32 modified and
superseded.
EMPLOYMENT TAX
Rev. Proc. 2012–32, page 267.
This procedure provides the requirements for completing and
submitting Form 8655,Reporting Agent Authorization.Rev.
Proc. 2007–38 modified and superseded.
Rev. Proc. 2012–33, page 272.
This procedure updates the rules for using the EFTPS to remit
federal taxes to the Service. Rev. Proc. 98–32 modified and
superseded.
TAX CONVENTIONS
Announcement 2012–30, page 314.
This document provides a copy of the Competent Authority
Agreement entered into by the competent authorities of the
United States and Belgium providing that additional taxes es-
tablished by Belgian municipalities and conurbations on the
Belgian income tax are covered under Article 2 (Taxes Covered)
of the Convention Between the Government of the United States
of America and the Government of the Kingdom of Belgium for
the Avoidance of Double Taxation and the Prevention of Fiscal
EvasionwithRespecttoTaxesonIncomesignedatBrussels
on November 27, 2006.
Announcement 2012–31, page 315.
This document provides a copy of the Competent Authority
Agreement entered into by the competent authorities of the
United States and Canada regarding application of the princi-
ples set forth in the Organisation for Economic Cooperation
and Development Report on the Attribution of Profits to Per-
manent Establishments in the interpretation of Article VII (Busi-
ness Profits) of the Convention between Canada and the United
States of America with Respect to Taxes on Income and on Cap-
ital done at Washington on September 26, 1980, as amended
by the Protocols done on June 14, 1983, March 28, 1994,
March 17, 1995, July 29, 1997, and September 17, 2007.
(Continued on the next page)
Finding Lists begin on page ii.

ADMINISTRATIVE
Rev. Proc. 2012–32, page 267.
This procedure provides the requirements for completing and
submitting Form 8655,Reporting Agent Authorization.Rev.
Proc. 2007–38 modified and superseded.
Rev. Proc. 2012–33, page 272.
This procedure updates the rules for using the EFTPS to remit
federal taxes to the Service. Rev. Proc. 98–32 modified and
superseded.
Rev. Proc. 2012–34, page 280.
This procedure provides changes to Publication 4810,Speci-
fications for Filing Form 8955-SSA, Annual Registration State-
ment Identifying Separated Participants with Deferred Vested
Benefits, Electronically.
August 20, 20122012–34 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.
2012–34 I.R.B.August 20, 2012

August 20, 20122012–34 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 61.—G
ross Income
Defined
26 CFR 1.61-21: Taxation of fringe benefits.
Final regulations provide rules relating to the val-
uation for income inclusion purposes of the entertain-
ment use of business aircraft by specified individuals.
See T.D. 9597, page 258.
Section 274.—Disallowance
of Certain Entertainment,
etc., Expe
nses
26 CFR 1.274–9: Entertainment provided to speci-
fied individuals.
T.D. 9597
DEPARTME
NT OF THE
TREASUR
Y
Interna
l Revenue Service
26 CFR Pa
rt 1
Deductions for Entertainment
Use of Business Aircraft
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTIO
N: Final regulations.
SUMMARY: This document contains fi-
nal regulations relating to the use of busi-
ness aircraft for entertainment. These fi-
nal regulations affect taxpayers that deduct
expenses for entertainment, amusement, or
recreation provided to specified individ-
uals. The final regulations reflect statu-
tory amendments under the American Jobs
Creation Act of 2004 (AJCA) and the Gulf
Opportunity Zone Act of 2005 (GOZA).
DATES:Effective Date:These regulations
are effective August 1, 2012.
Applicability Date:For dates of ap-
plicability, see §§1.61–21(g)(14)(iii),
1.274–9(e), and 1.274–10(g).
FO
R FURTHER INFORMATION
CO
NTACT: Michael Nixon (section 274),
(2
02) 622–4930; or Lynne A. Camillo
(
section 61), (202) 622–6040 (not toll-free
n
umbers).
SUPPLEMENTAR
Y INFORMATION:
Background
This documen
t contains final amend-
ments to the I
ncome Tax Regulations,
26 CFR part 1,
relatingtothedisallowance
under secti
on 274 of the Internal Revenue
Code (Code)
of deductions for the use of
business ai
rcraft for entertainment.
On June 15, 2
007, a notice of pro-
posed rulem
aking (REG–147171–05,
2007–2 C.B.
334) regarding the use of
business a
ircraft for entertainment was
published
in theFederal Register(72 FR
33169). Wr
itten and electronic comments
respondin
g to the notice of proposed rule-
making wer
e received. A public hearing
on the pro
posed regulations was held on
October 2
5, 2007. After consideration of
all the co
mments, the proposed regulations
are adopt
ed as amended by this Treasury
decision
. The comments and revisions are
discuss
ed in the preamble.
Explanation of Provisions and
Summary of Comments
1.Dete
rmination of Costs
a.Application of disallowance to fixed
costs
The pr
oposed regulations provide that
expen
ses subject to disallowance under
secti
on 274(a) include variable costs such
as fue
l and landing fees, and fixed costs
such a
s depreciation, hangar fees, pi-
lot sa
laries, and other items not directly
rela
ted to an individual flight. Commen-
tato
rs suggested that the final regulations
shou
ld limit expenses subject to disal-
lowa
nce to the direct or variable costs of
afli
ght and exclude fixed costs. The final
reg
ulations do not adopt this comment be-
cau
se section 274(e)(2) does not explicitly
dif
ferentiate between fixed and variable
exp
enses and because such an interpreta-
tio
niscontrarytoCongressionalintent.
b.Charter rate safe harbor
Th
e proposed regulations requested
co
mments on whether, as an alternative
to determinin
g actual expenses, the fi-
nal regulatio
ns should allow taxpayers to
determine the
amount of expenses paid
or incurred f
or entertainment flights by
reference to
charter rates. The proposed
regulations
asked for specific comments
on the availa
bility of substantiated ac-
tual, publi
shed, undiscounted charter rates
charged to t
he general public by compa-
nies that me
et certain requirements.
Commentato
rs generally endorsed the
inclusion o
f a charter rate safe harbor in
the final re
gulations. They suggested that
the IRS est
ablish rates either by conduct-
ing a surve
y of average charter rates by re-
gion or by a
uthorizing representatives of
the indust
ry to create a charter rate report-
ing system
. One commentator suggested
that if th
e IRS does not establish charter
rates, in
dividual taxpayers should be al-
lowedtod
etermine charter rates. Com-
mentator
s also stated that a charter rate
safe harb
or should include rates for rentals
of small
piston aircraft, which taxpayers
use exte
nsively for business but normally
are not c
hartered.
The diff
iculty of determining accurate
and reli
able charter ratescontinues to be an
impedim
ent to establishing a charter rate
safe ha
rbor. Accordingly, the final regu-
lation
s do not include these rules. How-
ever, t
he final regulations authorize the
IRS to a
dopt charter rate or other safe
harbor
s in future published guidance, see
§601.
601(d).
c.Depr
eciation
The pr
oposed regulations permit a tax-
payer
to elect to compute depreciation ex-
pense
s on a straight-line basis for all of
the ta
xpayer’s aircraft and all taxable years
for pu
rposes of calculating expenses sub-
ject t
o disallowance, even if the taxpayer
uses
another method to compute deprecia-
tion
for other purposes. The proposed reg-
ulat
ions provide a transition rule for ap-
plyi
ng the straight-lineelection to aircraft
plac
ed in service in taxable years preced-
ing
the election, which requires the tax-
pay
er to apply the straight-line method as
if i
t had been applied from the year the air-
cra
ft was placed in service.
2012–34 I.R.B.258August 20, 2012

A commentator requested that the fi-
nal regulations allow a separate election
for each aircraft. The final regulations do
not allow an aircraft-by-aircraft election.
Requiring taxpayers to make the election
for all aircraft appropriately balances the
policies of promoting business investment
through the allowance of additional first-
year depreciation and denying a tax benefit
for entertainment use of business aircraft.
The commentator also suggested that
changing depreciation methods under the
transition rule may result in disallowing
more than 100 percent of the cost of the
aircraft. In response to the comment, the
final regulations clarify that, in any taxable
year, the depreciation disallowance does
not exceed the amount of otherwise allow-
able depreciation. Thus, the sum of the al-
lowable depreciation and the depreciation
disallowed will not exceed 100 percent of
basis, regardless of the taxable year a tax-
payer makes the straight-line election.
The final regulations provide examples
illustrating how taxpayers determine de-
preciation and basis under the election.
d.Interest expense
A commentator asked for clarification
on whether interest is an expense that is
subject to disallowance. In response to this
comment, the final regulations clarify that
interest is subject to disallowance if the
underlying debt is secured by or properly
allocable to an aircraftused for entertain-
ment.
e.Aircraft aggregation
The proposed regulations provide that a
taxpayer may aggregate expenses for air-
craft of similar cost profiles to calculate
expenses subject to disallowance. The
proposed regulations require that aircraft
have the same engine type and number and
suggest other factors relevant to whether
aircraft are of a similar cost profile.
A commentator requested that the final
regulations make the aircraft aggregation
rules less restrictive. The commentator
opined that taxpayers should be allowed to
aggregate the expenses of all aircraft to al-
leviate the administrative burden of com-
puting and allocating expenses to enter-
tainment use of the aircraft. The commen-
tator stated that, alternatively, the rules in-
appropriately require similar cost profiles
to include the same number of engines and
require an unduly detailed analysis of the
aircraft characteristics.
The final regulations retain the aircraft
aggregation rules. Aggregating the ex-
penses of all aircraft regardless of cost
characteristics would create unacceptable
distortions in the amount of expenses allo-
cated to the use of each aircraft. The rules
are sufficiently broad and flexible for tax-
payers to easily apply them.
2.Allocation of Costs to Flights
a.Primary purpose test
The proposed regulations provide two
alternative methods for allocating the costs
associated with the use of an aircraft to
provide entertainment to specified individ-
uals. The occupied seat hours or miles al-
location method divides the total expenses
for the year by the number of occupied seat
hours or occupied seat miles to determine
a per seat or per mile rate, and it applies
the rate to the number of hours or miles
of entertainment use. The flight-by-flight
method allocates expenses to a flight and
then to the passengers on the flight accord-
ing to the entertainment or nonentertain-
ment character of the travel.
Commentators suggested that the fi-
nal regulations adopt a primary purpose
test for identifying disallowed expenses.
Under a primary purpose test, the pri-
mary purpose of a flight would determine
whether any costs associated with spec-
ified individuals traveling for entertain-
ment on that flight are disallowed. Gen-
erally, if the primary purpose of a flight is
business, no more than the additional or
incidental costs associated with specified
individuals traveling for entertainment
aboard that flight would be disallowed.
Some commentators suggested that if the
primary purpose of a flight is business, no
costs should be allocated to entertainment.
One commentator advocated that the final
regulations include a primary purpose test
as a safe harbor for smaller aircraft.
The final regulations do not adopt a pri-
mary purpose test. Section 274(e)(2) ap-
plies if a taxpayer provides entertainment,
amusement, or recreation to a specified in-
dividual and does not depend on either the
reason the taxpayer provides the entertain-
ment or the overall use of the aircraft. Dis-
regarding entertainment use by a specified
individual is contrary to Congressional in-
tent in amending section 274(e)(2) to dis-
allow expenses allocable to entertainment
use of aircraft by specified individuals.
b.Effect of allocation rules
Commentators suggested the passen-
ger-by-passenger allocation of costs in the
proposed regulations imposes an undue
administrative burden on taxpayers. One
commentator stated that the regulations
result in excess disallowance and are un-
workable due to their inconsistency with
the primary purpose test. Another com-
mentator said that determination of the
character of each passenger’s use could
be difficult and asked for more examples
illustrating when a use is entertainment.
The final regulations retain the
occupied seat hours or miles and
flight-by-flight allocation rules. Before
the amendment of section 274(e)(2), tax-
payers were required to maintain records
of the character of the use of aircraft by
employees to comply with the income in-
clusion rules of section 61 and §1.61–21.
Any additional administrative burden re-
sulting from the requirement to identify,
and allocate expenses to, entertainment
use of aircraft is limited and is inherent
in the statutory requirement to allocate
expenses to entertainment use. The fi-
nal regulations do not include additional
examples of entertainment use because
entertainment use is defined for purposes
of section 274 in §1.274–2(b)(1) and is
therefore beyond the scope of this regula-
tion.
3.Allocation of Disallowance to Expenses
The proposed regulations provide that
the disallowance provisions are applied on
apro ratabasis to all disallowed expenses.
A commentator requested clarification of
how an amount that is treated as com-
pensationtoorreimbursedbyaspecified
individual is allocated to disallowed ex-
penses. The commentator noted that it is
necessary to determine the amount of dis-
allowed expenses that represents deprecia-
tion to properly adjust an aircraft’s basis.
In response to this comment, the final
regulations clarify that any amounts dis-
allowed and any amounts reimbursed or
treated as compensation are applied to total
expenses subject to disallowance on apro
August 20, 20122592012–34 I.R.B.

ratabasis. The final regulations include an
example illustrating this rule.
4.Bona Fide Security Concerns
The proposed regulations do not ex-
empt expenses for entertainment travel
from disallowance under section 274
when there is a business need to use the
aircraft to provide security pursuant to
§1.132–5(m). A commentator argued that
the final regulations should provide that
the excess cost of using a private aircraft
forbona fidesecurity concerns should
not be subject to disallowance. Section
1.132–5(m) reduces the amount of income
inclusion for the fringe benefit under cir-
cumstances in which abona fidesecurity
concern exists, but does not convert an
entertainment flight into a business flight.
Because section 274(e) does not provide
an exception to disallowance for expenses
related to the use of a private aircraft for
bona fidesecurity concerns, the final reg-
ulations do not adopt this comment.
5.Aircraft as Entertainment Facilities
The proposed regulations do not ad-
dress the use of aircraft as entertainment
facilities, but requested comments on
whether additional guidance on this ques-
tion should be issued. Commentators
suggested that the same rules in the pro-
posed regulations should apply to the use
of aircraft as entertainment facilities and
requested that the final regulations clarify
when and how the rules apply to entertain-
ment facilities.
These regulations interpret section
274(e)(2). Section 274(e)(2) is an ex-
ception to the disallowance provisions
of section 274(a). Expenses for enter-
tainment facilities are disallowed under
section 274(a)(1)(B).Therefore, the final
regulations clarify that section 274(e)(2)
and the associated regulations apply to
expenses for entertainment facilities as
well as entertainment activities. How-
ever, the final regulations do not include
specific rules for the use of aircraft as en-
tertainment facilities, which are addressed
elsewhere in the section 274 regulations.
6.Deadhead Flights
The proposed regulations provide that
an aircraft flying without passengers en
routetopickup,orafterhavingdis-
charged, passengers (deadhead flight) is
generally treated as having the same num-
ber and character of passengers as the
leg of the trip on which passengers are
on board. A commentator suggested that
the final regulations allow any reasonable
method to determine expenses related to
deadhead flights. The final regulations
do not adopt this rule because it would be
difficult to administer.
Another commentator asked that the
final regulations provide examples in-
cluding mathematicalcomputations for
expenses for deadhead flights. In response
to this comment, the final regulations
include examples illustrating the compu-
tation of expenses for a deadhead flight.
7.Leases to Third Parties
The proposed regulations provide that
expenses allocable to a lease or charter of
an aircraft to an unrelated third party in a
bona-fidebusiness transaction for the char-
ter period are not subject to the expense
disallowance. A commentator suggested
that the rules for leases and charters to third
parties should clarify that “charter period”
includes “lease period,” that not only ex-
penses but also flight hours or miles at-
tributable to a charter period are removed
fromtheseat/hourorseat/mile calculation,
and that a taxpayer may use any reason-
able method to allocate expenses to a char-
ter period.
The seat hour or seat mile calculation is
a method of allocating expenses to enter-
tainment use. If expenses are not subject
to the expense disallowance, then no allo-
cation is required, and seat hours or miles
attributable to a charter period are not in-
cluded in that calculation. The final regu-
lations change the termcharter periodto
the termlease or charter period. The final
regulations also clarify that whether a third
party is unrelated to the taxpayer is deter-
mined under section 267(b) or 707(b).
8.Section 274(e)(8) Exception
A commentator asked for clarification
on whether the proposed regulations mod-
ify the section 274(e)(8) exception for
“entertainment sold to customers.” An-
other commentator asked for clarification
on what constitutes “adequate and full
consideration” for purposes of the section
274(e)(8) exception.
The proposed and final regulations,
which provide guidance on the section
274(e)(2) exception, state that the section
274(a) disallowance for the use of a tax-
payer-provided aircraft for entertainment
does not apply to expenses that meet the
exceptions of section 274(e). As stated in
§1.274–2(f)(2)(ix), section 274(e)(8) ap-
plies only to taxpayers that are in the trade
or business of providing entertainment to
customers, and only to entertainment sold
to customers. However, the final regula-
tions do not provide additional rules on
the section 274(e)(8) exception, which is
outside the scope of the regulations.
9.Travel on Regularly Scheduled
Commercial Airlines
A commentator requested that the fi-
nal regulations include an exception for
entertainment flights by employees of
commercial passenger or cargo airlines on
flights operated by their employers. The
commentator also noted that identifying
entertainment use by specified individuals
on these flights and allocating expenses to
this use would be extremely burdensome.
While the final regulations do not provide
a general exception to the disallowance
rules for taxpayers that are commercial
passenger or cargo airlines because a gen-
eral exception is not supported by the
statute, the final regulations provide a
special rule for specified individuals on
regularly scheduled flights of taxpayers
that are commercial passenger airlines.
This rule treats expenses of entertainment
flights by specified individuals in the
same manner as expenses of entertainment
flights by non-specified individuals under
certain circumstances.
10.Charitable Contribution Deduction
A commentator suggested that the final
regulations should include rules on chari-
table contribution deductions for the fixed
costs of using aircraft for charitable pur-
poses. These rules are outside the scope of
the regulations; therefore, the final regula-
tions do not adopt this comment.
11.Income Inclusion and Compensation
Section 274(e)(2) and the proposed reg-
ulations provide, in general, that expenses
2012–34 I.R.B.260August 20, 2012

are not disallowed to the extent of the
amount a taxpayer treats as compensation
to, or includes in the income of, a speci-
fied individual. A commentator requested
that the final regulations include a “safe
harbor deduction” of the amount of com-
pensation claimed for the specified indi-
vidual. The final regulations do not adopt
this comment because section 274(e)(2) al-
ready operates as a safe harbor deduction
to the extent of amounts treated as com-
pensation and income, up to the amount of
expenses properly allocable to that enter-
tainment use.
The proposed regulations additionally
provide, in effect, that expenses are not
disallowed to the extent of the amount
a specified individualreimburses the tax-
payer. A commentator asked that the final
regulations include examples of how these
rulesapplywhenanemployeepaysfora
flight and that the regulations specify that
the taxpayer has income in that circum-
stance. The final regulations retain exam-
ples from the proposed regulations that il-
lustrate the amount of expenses disallowed
when amounts are treated as compensation
or when an employee reimburses the tax-
payer. The circumstances under which the
taxpayer has income from reimbursements
is beyond the scope of these regulations.
Effective/Applicability Date
The final regulations apply to taxable
years beginning after August 1, 2012.
Effect on Other Documents
Notice 2005–45, 2005–1 C.B. 1228, is
obsoleted as of August 1, 2012.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866, as supplemented by Executive
Order 13563. Therefore, a regulatory as-
sessment is not required. Section 553(b)
of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to these
regulations. Because the regulations do
not impose a 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
that preceded these final regulations
was submitted to the Chief Counsel
for Advocacy of the Small Business
Administration for comment on its impact
on small business, and no comments were
received.
Drafting Information
The principal authors of these regu-
lations are Michael Nixon of the Office
of Associate Chief Counsel (Income Tax
and Accounting) and Lynne A. Camillo of
the Office of Division Counsel/Associate
Chief Counsel (Tax Exempt and Govern-
ment Entities). However, other personnel
from the IRS and Treasury Department
participated in their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part1isamendedbyaddingentriesinnu-
merical order to read, in part, as follows:
Authority: 26 U.S.C. 7805* * *
Section 1.274–9 also issued under
26 U.S.C. 274(o).* * *
Section1.274–10alsoissuedunder
26 U.S.C. 274(o).* * *
Par. 2. Section 1.61–21 is amended
by revising paragraphs (g)(14)(i) and (ii)
and adding paragraph (g)(14)(iii) to read as
follows:
§1.61–21 Taxation of fringe benefits.
*****
(g) * * *
*****
(14) * * *
(i)Usebyemployer. Except as oth-
erwise provided in paragraph (g)(13) or
paragraph (g)(14)(iii) of this section or in
§1.132–5(m)(4), if the non-commercial
flight valuation rule of this paragraph (g)
is used by an employer to value any flight
provided in a calendar year, the rule must
be used to value all flights provided to all
employees in the calendar year.
(ii)Use by employee.Except as oth-
erwise provided in paragraph (g)(13)
or (g)(14)(iii) of this section or in
§1.132–5(m)(4), if the non-commercial
flight valuation rule of this paragraph (g)
is used by an employee to value a flight
provided by an employer in a calendar
year, the rule must be used to value all
flights provided to the employee by that
employer in the calendar year.
(iii)Exception for entertainment flights
provided to specified individuals after Oc-
tober 22, 2004.Notwithstanding the pro-
visions of paragraph (g)(14)(i) of this sec-
tion, an employer may use the general val-
uation rules of paragraph (b) of this section
to value the entertainment use of an aircraft
provided after October 22, 2004, to a spec-
ified individual. An employer who uses
the general valuation rules of paragraph (b)
of this section to value any entertainment
use of an aircraft by a specified individual
in a calendar year must use the general val-
uation rules of paragraph (b) of this sec-
tion to value all entertainment use of air-
craft provided to all specified individuals
during that calendar year.
(A)Specified individuals defined.For
purposes of paragraph (g)(14)(iii) of this
section,specified individualis defined in
section 274(e)(2)(B) and §1.274–9(b).
(B)Entertainment defined.Forpur-
poses of paragraph (g)(14)(iii) of this
section,entertainmentis defined in
§1.274–2(b)(1).
*****
Par. 3. Section 1.274–9 is added to read
as follows:
§1.274–9 Entertainment provided to
specified individuals.
(a)In general. Paragraphs (e)(2) and
(e)(9) of section 274 provide exceptions to
the disallowance of section 274(a) for ex-
penses for entertainment, amusement, or
recreation activities, or for an entertain-
ment facility. In the case of a specified
individual (as defined in paragraph (b) of
this section), the exceptions of paragraphs
(e)(2) and (e)(9) of section 274 apply only
to the extent that the expenses do not ex-
ceed the amount of the expenses treated
as compensation (under section 274(e)(2))
or as income (under section 274(e)(9)) to
the specified individual. The amount dis-
allowed is reduced by any amount that the
specified individual reimburses a taxpayer
for the entertainment.
(b)Specified individual defined.(1)A
specified individual is an individual who
is subject to section 16(a) of the Securities
August 20, 20122612012–34 I.R.B.

Act of 1934 in relation to the taxpayer, or
an individual who would be subject to sec-
tion 16(a) if the taxpayer were an issuer of
equity securities referred to in that section.
Thus, for example, a specified individual
is an officer, director, or more than 10 per-
cent owner of a corporation taxed under
subchapter C or subchapter S or a personal
service corporation. A specified individ-
ual includes every individual who—
(i) Is the direct or indirect beneficial
owner of more than 10 percent of any class
of any registered equity (other than an ex-
empted security);
(ii) Is a director or officer of the issuer
of the security;
(iii) Would be the direct or indirect ben-
eficial owner of more than 10 percent of
any class of a registered security if the tax-
payer were an issuer of equity securities;
or
(iv) Is comparable to an officer or direc-
tor of an issuer of equity securities.
(2) For partnership purposes, a speci-
fied individual includes any partner that
holds more than a 10 percent equity inter-
est in the partnership, or any general part-
ner, officer, or managing partner of a part-
nership.
(3) For purposes of this section,offi-
cerhas the same meaning as in 17 CFR
§240.16a–1(f).
(4) A specified individual includes a di-
rector or officer of a tax-exempt entity.
(5) A specified individual of a taxpayer
includes a specified individual of a party
related to the taxpayer within the meaning
of section 267(b) or section 707(b).
(c)Specified individual treated as re-
cipient of entertainment provided to oth-
ers.For purposes of section 274(a), a spec-
ified individual is treated as the recipient
of entertainment provided to another indi-
vidual because of the relationship of the
other individual to the specified individ-
ual if the entertainment is a fringe bene-
fit to the specified individual under sec-
tion 61(a)(1) (without regard to any exclu-
sions from gross income). Thus, expenses
allocable to entertainment provided to the
other individual are attributed to the speci-
fied individual for purposes of determining
the amount of disallowed expenses.
(d)Entertainment use of aircraft by
specified individuals. For rules relating to
entertainment use of aircraft by specified
individuals, see §1.274–10.
(e)Effective/applicability date.This
section applies to taxable years beginning
after August 1, 2012.
Par. 4. Section 1.274–10 is added to
read as follows:
§1.274–10 Special rules for aircraft used
for entertainment.
(a)Use of an aircraft for entertain-
ment—(1)In general. Section 274(a)
disallows a deductionfor certain expenses
for entertainment, amusement, or recre-
ation activities, or for an entertainment
facility. Under section 274(a) and this
section, no deduction otherwise allowable
under chapter 1 is allowed for expenses
for the use of a taxpayer-provided aircraft
for entertainment, except as provided in
paragraph (a)(2) of this section.
(2)Exceptions—(i)In general. Para-
graph (a)(1) of this section does not ap-
ply to deductions for expenses for busi-
ness entertainment air travel or to deduc-
tions for expenses that meet the excep-
tions of section 274(e), §1.274–2(f), and
this section. Section 274(e)(2) and (e)(9)
provides certain exceptions to the disal-
lowance of section 274(a) for expenses for
goods, services, and facilities for entertain-
ment, recreation, or amusement.
(ii)Expenses treated as compen-
sation—(A)Employees who are not
specified individuals. Section 274(a),
§1.274–2(a) through (d), and paragraph
(a)(1) of this section, in accordance with
section 274(e)(2)(A), do not apply to
expenses for entertainment air travel
provided to an employee who is not a
specified individual to the extent that a
taxpayer—
(1) Properly treats the expenses relating
to the recipient of entertainment as com-
pensation to an employee under chapter 1
and as wages to the employee for purposes
of chapter 24;and
(2) Treats the proper amount as com-
pensation to the employee under §1.61–21.
(B)Persons who are not employees
and are not specified individuals. Section
274(a), §1.274–2(a) through (d), and para-
graph (a)(1) of this section, in accordance
withsection274(e)(9),donotapplyto
expenses for entertainment air travel pro-
vided to a person who is not an employee
and is not a specifiedindividual to the
extent that the expenses are includible in
the income of that person. This exception
does not apply to any amount paid or in-
curred by the taxpayer that is required to
be included in any information return filed
by the taxpayer under part III of subchap-
ter A of chapter 61 and is not so included.
(C)Specified individuals. Section
274(a), §1.274–2(a) through (d), and para-
graph (a)(1) of this section, in accordance
with section 274(e)(2)(B), do not apply to
expenses for entertainment air travel of a
specified individual to the extent that the
amount of the expenses do not exceed the
sum of—
(1) The amount treated as compensation
to or included in the income of the speci-
fied individual in the manner specified un-
der paragraph (a)(2)(ii)(A)(1) of this sec-
tion (if the specified individual is an em-
ployee) or under paragraph (a)(2)(ii)(B) of
this section (if the specified individual is
not an employee); and
(2
) Any amount the specified individual
reimburses the taxpayer.
(iii)Travel on regularly scheduled
commercial airlines. Section 274(a),
§1.274–2(a) through (d), and paragraph
(a)(1) of this section do not apply to ex-
penses for entertainment air travel that a
taxpayer that is a commercial passenger
airline provides to specified individuals of
the taxpayer on the taxpayer’s regularly
scheduled flights on which at least 90 per-
cent of the seats are available for sale to
the public to the extent the expenses are
includible in the income of the recipient of
the entertainment in the manner specified
under paragraph (a)(2)(ii)(A)(1) of this
section (if the specified individual is an
employee) or under paragraph (a)(2)(ii)(B)
of this section (if the specified individual
is not an employee).
(b)Definitions. The definitions in this
paragraph (b) apply for purposes of this
section.
(1)Entertainment. For the definition
ofentertainmentfor purposes of this sec-
tion, see §1.274–2(b)(1). Entertainment
does not include personal travel that is not
for entertainment purposes. For example,
travel to attend a family member’s funeral
is not entertainment.
(2)Entertainment air travel.Entertain-
ment air travelis any travel aboard a tax-
payer-provided aircraft for entertainment
purposes.
(3)Business entertainment air travel.
Business entertainment air travelis any
entertainment air travel aboard a tax-
2012–34 I.R.B.262August 20, 2012

payer-provided aircraft that is directly
related to the active conduct of the tax-
payer’s trade or business or related to an
expenditure directlypreceding or follow-
ing a substantial andbona fidebusiness
discussion and associated with the active
conduct of the taxpayer’s trade or busi-
ness. See §1.274–2(a)(1)(i) and (ii). Air
travel is not business entertainment air
travel merely because a taxpayer-provided
aircraft is used for the travel as a result
of abona fidesecurity concern under
§1.132–5(m).
(4)Taxpayer-provided aircraft.Atax-
payer-provided aircraftis any aircraft
owned by, leased to, or chartered to, a tax-
payer or any party related to the taxpayer
(within the meaning of section 267(b) or
section 707(b)).
(5)Specified individual. For rules relat-
ing to the definition of a specified individ-
ual, see §1.274–9.
(c)Amount disallowed. Except as oth-
erwise provided, the amount disallowed
under this section for an entertainment
flight by a specified individual is the
amount of expenses allocable to the enter-
tainment flight of the specified individual
under paragraph (e)(2), (e)(3), or (f)(3)
of this section, reduced (but not below
zero) by the amount the taxpayer treats as
compensation or reports as income under
paragraph (a)(2)(ii)(C)(1) of this section to
the specified individual, plus any amount
the specified individual reimburses the
taxpayer.
(d)Expenses subject to disallowance
under this section—(1)Definition of ex-
penses. In determining the amount of ex-
penses subject to disallowance under this
section, a taxpayer must include all of the
expenses of operating the aircraft, includ-
ing all fixed and variable expenses the tax-
payer deducts in the taxable year. These
expenses include, but are not limited to,
salaries for pilots, maintenance personnel,
and other personnel assigned to the air-
craft; meal and lodging expenses of flight
personnel; take-off and landing fees; costs
for maintenance flights; costs of on-board
refreshments, amenities and gifts; hangar
fees (at home or away); management fees;
costs of fuel, tires, maintenance, insur-
ance, registration, certificate of title, in-
spection, and depreciation; interest on debt
secured by or properly allocated (within
the meaning of §1.163–8T) to an aircraft;
and all costs paid or incurred for aircraft
leased or chartered to the taxpayer.
(2)Leases or charters to third parties.
Expenses allocable to a lease or charter of
a taxpayer’s aircraft to an unrelated (as de-
termined under section 267(b) or 707(b))
third-party in abona-fidebusiness transac-
tion for adequate and full consideration are
excluded from the definition of expenses
in paragraph (d)(1) of this section. Only
expenses allocable to the lease or charter
period are excluded under this paragraph
(d)(2).
(3)Straight-line method permitted for
determining depreciation disallowance
under this section—(i)In general.Inlieu
of the amount of depreciation deducted
in the taxable year, solely for purposes
of paragraph (d)(1) of this section, a tax-
payer may elect to treat as its depreciation
deduction the amount that would result
from using the straight-line method of
depreciation over the class life (as defined
by section 168(i)(1) and using the appli-
cable convention under section 168(d))
of an aircraft, even if the taxpayer uses
a different methodology to calculate de-
preciation for the aircraft under other
sections of the Internal Revenue Code (for
example, section 168). If the property
qualifies for the additional first-year de-
preciation deduction provided by, for ex-
ample, section 168(k), 168(n), 1400L(b),
or 1400N(d), depreciation for purposes
of this straight-line election is determined
on the unadjusted depreciable basis (as
defined in §1.168(b)–1(a)(3)) of the prop-
erty. However, the amount of depreciation
disallowed as a result of this paragraph
(d)(3) for any taxable year cannot exceed
a taxpayer’s allowable depreciation for
that taxable year. For purposes of this
section, a taxpayer that elects to use the
straight-line method and class life under
this paragraph (d)(3) for any aircraft it
operates must use that methodology for all
depreciable aircraft it operates and must
continue to use the methodology for the
entire period the taxpayer uses any depre-
ciable aircraft.
(ii)Aircraft placed in service in earlier
taxable years. The amount of depreciation
for purposes of this paragraph (d)(3) for
aircraft placed in service in taxable years
before the taxable year of the election is
determined by applying the straight-line
method of depreciation to the unadjusted
depreciable basis (or, for property acquired
in an exchange to which section 1031 ap-
plies, the basis of the aircraft as determined
under section 1031(d)) and over the class
life (using the applicable convention under
section 168(d)) of the aircraft as though the
taxpayer used that methodology from the
year the aircraft was placed in service.
(iii)Manner of making and revoking
election. A taxpayer makes the election
under this paragraph (d)(3) by filing an
income tax return for the taxable year that
determines the taxpayer’s expenses for
purposes of paragraph (d)(1) of this sec-
tion by computing depreciation under this
paragraph (d)(3). A taxpayer may revoke
an election only forcompelling circum-
stances upon consent of the Commissioner
by private letter ruling.
(4)Aggregation of aircraft—(i)In gen-
eral. A taxpayer may aggregate the ex-
penses of aircraft of similar cost profiles
for purposes of calculating disallowed ex-
penses under paragraph (c) of this section.
(ii)Similar cost profiles. Aircraft are of
similar cost profiles if their operating costs
per mile or per hour of flight are compara-
ble. Aircraft must have the same engine
type (jet or propeller) and the same num-
ber of engines to have similar cost profiles.
Other factors to be considered in determin-
ing whether aircraft have similar cost pro-
files include, but are not limited to, max-
imum take-off weight, payload, passenger
capacity, fuel consumption rate, age, main-
tenance costs, and depreciable basis.
(5)Authority for establishing safe
harbors for determining expenses.The
Commissioner may establish in published
guidance, see §601.601(d)(2) of this chap-
ter, one or more safe harbor methods
under which a taxpayer may determine the
amount of expenses paid or incurred for
entertainment flights.
(e)Allocation of expenses—(1)Gen-
eral rule. For purposes of determining
the expenses allocated to entertainment
air travel of a specified individual under
paragraph (a)(2)(ii)(C)ofthissection,a
taxpayer must use either the occupied
seat hours or miles method of paragraph
(e)(2) of this section or the flight-by-flight
method of paragraph (e)(3) of this section.
A taxpayer must use the chosen method
for all flights of all aircraft for the taxable
year.
(2)Occupied seat hours or miles
method—(i)In general. The occupied
seat hours or miles method determines
August 20, 20122632012–34 I.R.B.

the amount of expenses allocated to a
particular entertainment flight of a speci-
fied individual based on the occupied seat
hours or miles for an aircraft for the tax-
able year. Under this method, a taxpayer
may choose to use either occupied seat
hours or miles for the taxable year to de-
termine the amount of expenses allocated
to entertainment flights of specified indi-
viduals, but must use occupied seat hours
or miles consistently for all flights of all
aircraft for the taxable year.
(ii)Computation under the occupied
seat hours or miles method. The amount
of expenses allocated to an entertainment
flight taken by a specified individual is
computed under the occupied seat hours
or miles method by determining—
(A) The total expenses for the year un-
der paragraph (d) of this section for the air-
craft or group of aircraft (if aggregated un-
der paragraph (d)(4) of this section), as ap-
plicable;
(B) The number of occupied seat hours
or miles for the taxable year for the aircraft
or group of aircraft by totaling the occu-
pied seat hours or miles of all flights in
the taxable year flown by the aircraft or
group of aircraft, as applicable. The oc-
cupied seat hours or miles for a flight is
the number of hours or miles flown for the
flight multiplied by the number of seats oc-
cupied on that flight. For example, a flight
of 6 hours with three passengers results in
18 occupied seat hours;
(C) The cost per occupied seat hour
or mile for the aircraft or group of air-
craft, as applicable, by dividing the total
expenses under paragraph (e)(2)(ii)(A) of
this section by the total number of occu-
pied seat hours or miles under paragraph
(e)(2)(ii)(B) of this section; and
(D) The amount of expenses allocated
to an entertainment flight taken by a speci-
fied individual by multiplying the number
of hours or miles of the flight by the cost
per occupied hour or mile for that aircraft
or group of aircraft, asapplicable, as deter-
mined under paragraph (e)(2)(ii)(C) of this
section.
(iii)Allocation of expenses of multi-leg
trips involving both business and enter-
tainment legs. A taxpayer that uses the
occupied seat hours or miles allocation
method must allocate the expenses of a
trip by a specified individual that involves
at least one segment for business and
one segment for entertainment between
the business travel and the entertainment
travel unless none of the expenses for the
entertainment segment are disallowed.
The entertainment cost of a multi-leg trip
is the total cost of the flights (by occupied
seat hours or miles) minus the cost of the
flights that would have been taken without
the entertainment segment or segments.
(iv)Examples. The following examples
illustrate the provisions of this paragraph
(e)(2):
Example 1. (i) A taxpayer-provided aircraft is
used for Flights 1, 2, and 3, of 5 hours, 5 hours, and
4 hours, respectively, during the Taxpayer’s taxable
year. Each flight carries four passengers. On Flight
1, none of the passengers is a specified individual. On
Flight 2, passengers A and B are specified individu-
als traveling for entertainment purposes and passen-
gers C and D are not specified individuals. For Flight
2, Taxpayer treats $1,200 as compensation to A, and
B reimburses Taxpayer $500. On Flight 3, all four
passengers (A, B, E, and F) are specified individu-
als traveling for entertainment purposes. For Flight
3, Taxpayer treats $1,300each as compensation to A,
B, E, and F. Taxpayer incurs $56,000 in expenses for
the operation of the aircraft for the taxable year. The
aircraft is operated for 56 occupied seat hours for the
period (four passengers times 5 hours (20 occupied
seat hours) for Flight 1, plus four passengers times 5
hours (20 occupied seat hours) for Flight 2, plus four
passengers times 4 hours (16 occupied seat hours) for
Flight 3). The cost per occupied seat hour is $1,000
($56,000/56 hours).
(ii) For purposes of determining the amount dis-
allowed (to the extent not treated as compensation or
reimbursed) for entertainment provided to specified
individuals, $5,000 ($1,000 X 5 hours) each is allo-
cable to A and B for Flight 2, and $4,000 ($1,000 X 4
hours) each is allocable to A, B, E, and F for Flight 3.
(iii) For Flight 2, because Taxpayer treats $1,200
as compensation to A, and B reimburses Taxpayer
$500, Taxpayer may deduct $1,700 of the cost of
Flight 2 allocable to A and B. The deduction for the
remaining $8,300 cost allocable to entertainment pro-
videdtoAandBonFlight2isdisallowed(forA,
$5,000 less the $1,200 treated as compensation, and
for B, $5,000 less the $500 reimbursed).
(iv) For Flight 3, because Taxpayer treats $1,300
each as compensation to A, B, E, and F, Taxpayer may
deduct $5,200 of the cost of Flight 3. The deduction
for the remaining $10,800 cost allocable to entertain-
ment provided to A, B, E, and F on Flight 3 is disal-
lowed ($4,000 less the $1,300 treated as compensa-
tiontoeachspecifiedindividual).
Example 2. (i) G, a specified individual, is the
sole passenger on an aircraft that makes three flights.
First, G travels on a two-hour flight from City A to
City B for business purposes. G then travels on a
three-hour flight from City B to City C for entertain-
ment purposes, and returns from City C to City A on
a four-hour flight. G’s flights have resulted in nine
occupied seat hours (two for the first segment, plus
three for the second segment, plus four for the third
segment). If G had returned directly to City A from
City B, the flights would have resulted in four occu-
pied seat hours.
(ii) Under paragraph (e)(2)(iii) of this section, five
occupied seat hours are allocable to G’s entertain-
ment (nine total occupied seat hours minus the four
occupied seat hours that would have resulted if the
travel had been a roundtrip business trip without the
entertainment segment). If Taxpayer’s cost per occu-
pied seat hour for the year is $1,000, $5,000 is allo-
cated to G’s entertainment use of the aircraft ($1,000
X five occupied seat hours). The amount disallowed
is $5,000 minus the total of any amount the Taxpayer
treats as compensation to G plus any amount that G
reimburses Taxpayer.
(3)Flight-by-flight method—(i)In gen-
eral. The flight-by-flight method deter-
mines the amount of expenses allocated to
a particular entertainment flight of a spec-
ified individual on a flight-by-flight basis
by allocating expenses to individual flights
and then to a specified individual traveling
for entertainment purposes on that flight.
(ii)Allocation of expenses. A taxpayer
using the flight-by-flight method must
combine all expenses (as defined in para-
graph (d)(1) of this section) for the taxable
year for the aircraft or group of aircraft
(if aggregated under paragraph (d)(4) of
this section), as applicable, and divide the
total amount of expenses by the number
of flight hours or miles for the taxable
year for that aircraft or group of aircraft,
as applicable, to determine the cost per
hour or mile. Expenses are allocated to
each flight by multiplying the number of
miles for the flight by the cost per mile or
the number of hours for the flight by the
cost per hour. The expenses for the flight
then are allocated to the passengers on the
flight per capita. Thus, if five passengers
are traveling on a flight, and the total ex-
pense allocated to the flight is $10,000,
the expense allocable to each passenger is
$2,000.
(f)Special rules—(1)Determination of
basis. (i) If any deduction for depreciation
is disallowed under this section, the rules
of §1.274–7 apply. In that case, the basis of
an aircraft is not reduced for the amount of
depreciation disallowed under this section.
(ii) The provisions of this paragraph
(f)(1) are illustrated by the following ex-
amples:
Example 1. (i) B Co. is a calendar-year tax-
payer that owns an aircraft not used in commercial
or contract carrying of passengers or freight. The
aircraft is placed in service on July 1 of Year 1 and
has an unadjusted depreciable basis of $1,000,000.
The class life of the aircraft for depreciation purposes
is 6 years. For determining depreciation under sec-
tion 168, B Co. uses the optional depreciation table
that corresponds with the general depreciation sys-
tem, the 200 percent declining balance method of de-
2012–34 I.R.B.264August 20, 2012

preciation, a 5-year recovery period, and the half-year
convention. For determining the depreciation disal-
lowance for each year under paragraph (d)(3) of this
section, B Co. elects to use the straight-line method
of depreciation and the class life of 6 years and, there-
fore, uses the optional depreciation table for purposes
of section 168 that corresponds with the straight-line
method of depreciation, a recovery period of 6 years,
and the half-year convention. In each year, the air-
craft entertainment use subject to disallowance under
this section is 10 percent of the total use.
(ii) B Co. calculates the depreciation and basis of
the aircraft as follows:
200 Percent
Declining Balance
Depreciation Amount
Straight Line
Depreciation Amount
Depreciation
Disallowance Under
Section 274
Depreciation
Deduction
§1.274–7 Basis of
Aircraft
Suspended Basis
Year 1200,00083,3008,330 (.10 X 83,300) 191,670 (200,000
minus 8,330)
808,330 (1,000,000
minus 191,670)
8,330
Year 2320,000166,70016,670 (.10 X
166,700)
303,330 (320,000
minus 16,670)
505,000 (808,330
minus 303,330)
25,000 (8,300 plus
16,670)
Year 3192,000166,70016,670 (.10 X
166,700)
175,330 (192,000
minus 16,670)
329,670 (505,000
minus 175,330)
41,670 (25,000 plus
16,670)
Year 4
115,200
166,70016,670 (.10 X
166,700)
98,530 (115,200
minus 16,670)
231,140 (329,670
minus 98,530)
58,340 (41,670 plus
16,670)
Year 5115,200
166,60016,660 (.10 X
166,600)
98,540 (115,200
minus 16,660)
132,600 (231,140
minus 98,540)
75,000 (58,340 plus
16,660)
Year 6
57,600
166,70016,670 (.10 X
166,700)
40,930 (57,600 minus
16,670)
91,670 (132,600
minus 40,930)
91,670 (75,000 plus
16,670)
Year 7
83,3008,330 (.10 X 83,300)91,67091,670
(iii) In Year 7, there is no further deduction for
depreciation of the aircraft, therefore, under para-
graph (d)(3) of this section, no depreciation expense
is disallowed. Under §1.274–7 and this paragraph
(f)(1), basis is not reduced for disallowed deprecia-
tion. Therefore, at the end of Year 7, the basis of the
aircraft for purposes of §1.274–7 is $91,670, which
is the total amount of disallowed depreciation in
Years 1 through 6. B Co.’s deductions for deprecia-
tion total $908,330, which added to $91,670 equals
$1,000,000.
Example 2. (i) The facts are the same as inEx-
ample 1, except that B Co. does not elect to use the
straight-line method of depreciation under paragraph
(d)(3) of this section until Year 3.
(ii) B Co. calculates the depreciation and basis of
the aircraft as follows:
200 Percent
Declining Balance
Depreciation Amount
Straight Line
Depreciation Amount
Depreciation
Disallowance Under
Section 274
Depreciation
Deduction
§1.274–7 Basis of
Aircraft
Suspended Basis
Year 1200,00020,000 (.10 X
200,000)
180,000820,000 (1,000,000
minus 180,000)
20,000
Year 2320,00032,000 (.10 X
320,000)
288,000 (320,000
minus 32,000)
532,000 (820,000
minus 288,000)
52,000 (20,000 plus
32,000)
Year 3192,000166,70016,670 (.10 X
166,700)
175,330 (192,000
minus 16,670)
356,670 (532,000
minus 175,330)
68,670 (52,000 plus
16,670)
Year 4
115,200
166,70016,670 (.10 X
166,700)
98,530 (115,200
minus 16,670)
258,140 (356,670
minus 98,530)
85,340 (68,670 plus
16,670)
Year 5115,200
166,60016,660 (.10 X
166,600)
98,540 (115,200
minus 16,660)
159,600 (258,140
minus 98,540)
102,000 (85,340 plus
16,660)
Year 6
57,600
166,70016,670 (.10 X
166,700)
40,930 (57,600 minus
16,670)
118,670 (159,600
minus 40,930)
118,670 (102,000
plus 16,670)
Year 7
83,3008,330 (.10 X 83,300) 0118,670118,670
(iii) In Year 7, there is no further deduction for
depreciation of the aircraft, therefore, under para-
graph (d)(3) of this section, no depreciation expense
is disallowed. Under §1.274–7 and this paragraph
(f)(1), basis is not reduced for disallowed deprecia-
tion. Therefore, at the end of Year 7, the basis of
the aircraft for purposes of §1.274–7 is $118,670,
which is the total amount of disallowed depreciation
in Years 1 through 6. B Co.’s deductions for depreci-
ation total $881,330, which added to $118,670 equals
$1,000,000.
(2)Pro rata disallowance.(i)The
amount of disallowed expenses, and any
amounts reimbursed or treated as com-
pensation, under this section are applied
on apro ratabasis to all of the categories
of expenses subject to disallowance under
this section.
(ii) The provisions of this paragraph
(f)(2) are illustrated by the following ex-
ample:
Example. (i) C Co. owns an aircraft that it
uses for business and other purposes. The expenses
of operating the aircraft in the current year total
$1,000,000. This amount includes $250,000 for
depreciation (25 percent of total expenses).
(ii) In the same year, the aircraft entertainment use
subject to disallowance under this section is 20 per-
cent of the total use and C Co. treats $80,000 as com-
pensation to specified individuals. Thus, the amount
of the disallowance under this section is $120,000
($1,000,000 X 20 percent ($200,000) less $80,000).
August 20, 20122652012–34 I.R.B.

(iii) Under paragraph (f)(2) of this section, C Co.
may calculate the amount by which a category of ex-
pense, such as depreciation, is disallowed by multi-
plying the total disallowance of $120,000 by the ratio
of the amount of the expense to total expenses. Thus,
$30,000 of the $120,000 total disallowed expenses
is depreciation ($250,000/$1,000,000 (25 percent) X
$120,000).
(iv) The result is the same if C Co. separately cal-
culates the amount of depreciation in total disallowed
expenses and in the amount treated as compensation
and nets the result. Depreciation is 25 percent of to-
tal expenses, thus, the amount of depreciation in dis-
allowed expenses is $50,000 (25 percent X $200,000
total disallowed expenses) and the amount of depreci-
ation treated as compensation is $20,000 (25 percent
X $80,000). Disallowed depreciation is $50,000 less
$20,000, or $30,000.
(3)Deadhead flights. (i) For purposes
of this section, an aircraft returning with-
out passengers after discharging passen-
gers or flying without passengers to pick
up passengers (deadheading) is treated as
having the same number and character of
passengers as the leg of the trip on which
passengers are aboard for purposes of allo-
cating expenses under paragraphs (e)(2) or
(e)(3) of this section. For example, when
an aircraft travels from point A to point B
and then back to point A, and one of the
legs is a deadhead flight, for determina-
tion of disallowed expenses, the aircraft is
treated as having made both legs of the trip
with the same passengers aboard for the
same purposes.
(ii) When a deadhead flight does not
occur within a roundtrip flight, but oc-
curs between two unrelated flights involv-
ing more than two destinations (such as an
occupied flight from point A to point B,
followed by a deadhead flight from point
BtopointC,andthenanoccupiedflight
from point C to point A), the allocation
of passengers and expenses to the dead-
head flight occurring between the two oc-
cupied trips must be based solely on the
number of passengers on board for the two
occupied legs of the flight, the character of
the travel of the passengers on board (en-
tertainment or nonentertainment) and the
length in hours or miles of the two occu-
pied legs of the flight.
(iii) The provisions of this paragraph
(f)(3) are illustrated by the following ex-
amples:
Example 1. (i) Aircraft flies from City A to City
B, a 6-hour trip, with 12 passengers aboard. Eight
of the passengers are traveling for business and four
of the passengers are specified individuals traveling
for entertainment purposes. The aircraft flies empty
(deadheads) from City B to City C, a 4-hour trip. At
City C it picks up 12 passengers, six of whom are
traveling for business and six of whom are specified
individuals traveling for entertainment purposes, for
a 2-hour trip to City A. The taxpayer uses the occu-
pied seat hour method of allocating expenses.
(ii) The two legs of the trip on which the aircraft
is occupied comprise 96 occupied seat hours (12 pas-
sengers X 6 hours (72) for the first leg plus 12 passen-
gers X 2 hours (24) for the third leg). Sixty occupied
seathoursareforbusiness(8passengersX6hours
(48) for the first leg plus 6 passengers X 2 (12) hours
for the third leg) and 36 occupied seat hours are for
entertainment purposes (4 passengers X 6 hours (24)
for the first leg plus 6 passengers X 2 (12) hours for
the third leg). Dividing the 36 occupied seat enter-
tainment hours by 96 total occupied seat hours, 37.5
percent of the total occupied seat hours of the two oc-
cupied flights are for entertainment.
(iii) The 4-hour deadhead leg comprises one-third
of the total flight time of 12 hours. Therefore, the
deadhead flight is deemed to have provided one-third
of the total 96 occupied seat hours, or 32 occupied
seat hours (96 X 1/3 = 32). Of the 32 deemed occu-
pied seat hours, 37.5 percent, or 12 deemed occupied
seat hours, are treated as entertainment under para-
graph (f)(3)(ii) of this section. The 32 deemed occu-
pied seat hours for the deadhead flight are included in
the calculation under paragraph (e)(2)(ii)(B) of this
section and expenses are allocated under paragraph
(e)(2)(ii)(D) of this section to the 12 deemed occu-
pied seat hours treated as entertainment.
Example 2. (i)ThefactsarethesameasforEx-
ample 1, but the taxpayer uses the flight-by-flight
method of allocation.
(ii) Of the 24 passengers on the occupied flights,
10 passengers, or 41.7 percent, are traveling for en-
tertainment purposes. Ifthe annual cost per flight
hour calculated under paragraph (e)(3)(ii) of this sec-
tion is $1,000, $4,000 is allocated to the 4-hour dead-
head leg. Under paragraph (f)(3)(ii) of this section,
41.7 percent of the $4,000, or $1,667, is treated as
an expense for entertainment. The calculation of the
cost per mile or hour for the year under paragraph
(e)(3)(ii) of this section includes the expenses and
number of miles or hours flown for the deadhead leg.
(g)Effective/applicability date.This
section applies to taxable years beginning
after August 1, 2012.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved July 25, 2012.
Emily S. McMahon,
Acting Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on July 31, 2012,
8:45 a.m., and published in the issue of the Federal Register
for August 1, 2012, 77 F.R. 45480)
2012–34 I.R.B.266August 20, 2012

Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.602: Tax Forms and instructions.
(Also Part 1, §§ 6011, 6061, 6302, 31.6011(a)–7, 31.6061–1, 31.6302–1.)
Rev. Proc. 2012–32
TABLE OF CONTENTS
SECTION 1. PURPOSE
............................................................................................ 267
SECTION 2. BACKGROUND....................................................................................... 267
SECTION 3. SIGNIFICANT CHANGES TO REV. PROC. 2007–38........................................................ 268
SECTION 4. DEFINITIONS......................................................................................... 268
SECTION 5. SCOPE OF REPORTING AGENT AUTHORIZATION...................................................... 268
SECTION 6. COMPLETING A REPORTING AGENT AUTHORIZATION................................................ 270
SECTION 7. SUBMITTING A REPORTING AGENT AUTHORIZATION................................................. 271
SECTION 8. SUSPENSION......................................................................................... 271
SECTION 9. ADMINISTRATIVE REVIEW PROCESS FOR PROPOSED SUSPENSION.................................... 271
SECTION 10. EFFECT OF SUSPENSION............................................................................. 271
SECTION 11. APPEAL OF SUSPENSION............................................................................ 271
SECTION 12. INTERNAL REVENUE SERVICE CONTACTS........................................................... 272
SECTION 13. OTHER RELATED DOCUMENTS...................................................................... 272
SECTION 14. EFFECT ON OTHER DOCUMENTS.................................................................... 272
SECTION 15. EFFECTIVE DATE.................................................................................... 272
SECTION 16. PAPERWORK REDUCTION ACT....................................................................... 272
SECTION 17. DRAFTING INFORMATION........................................................................... 272
SECTION 1. PURPOSE
.01 This revenue procedure provides
the requirements for completing and sub-
mitting Form 8655,Reporting Agent Au-
thorization(Authorization). An Autho-
rization allows a taxpayer to designate a
Reporting Agent to perform the following
acts on behalf of a taxpayer:
(1) Sign and electronically file Form
940,Employer’s Annual Federal Unem-
ployment (FUTA) Tax Return; Form 941,
Employer’s QUARTERLY Federal Tax Re-
turn; and those forms set forth in section
4.02(1) of this revenue procedure.
(2) Sign and file on paper (to the extent
the IRS does not require filing electroni-
cally) the forms set forth in section 4.02(2)
of this revenue procedure.
(3) Make federal tax deposits (FTDs)
and other federal tax payments (FTPs)
electronically via theElectronic Federal
Tax Payment System (EFTPS) or the Fed-
eral Tax Application (FTA) and submit
FTD information and FTP information
electronically as described in section
4.02(3) of this revenue procedure.
(4) Receive duplicate copies of official
notices, correspondence, deposit require-
ments, transcripts, or other information as
described in section 4.02(4) of this revenue
procedure.
(5) Receive duplicate copies of offi-
cial notices, correspondence, deposit re-
quirements, transcripts, or other informa-
tion with respect to FTDs and FTPs as de-
scribed in section 4.02(5) of this revenue
procedure.
.02 The technical specifications for
filing Authorization information are pub-
lished separately in Publication 1474,
Technical Specifications Guide For Re-
porting Agent Authorization and Federal
Tax Depositors.
SECTION 2. BACKGROUND
.01 Section 1.6011–1 of the Income
Tax Regulations and § 31.6011(a)–7 of
the Employment Taxesand Collection of
Income Tax at Source Regulations (Em-
ployment Tax Regulations) provide that
each return required under the regulations,
together with any prescribed copies or
supporting data, must be filled in and dis-
posed of in accordance with applicable
forms, instructions, and regulations. Sec-
August 20, 20122672012–34 I.R.B.

tion 31.6011(a)–7 provides that the return
may be made by an agent authorized by
the person required to make the return.
.02 Section 31.6061–1 of the Employ-
ment Tax Regulations provides that a re-
turn may be signed for the taxpayer by an
agent duly authorized in accordance with
§ 31.6011(a)–7 to make the return. Sec-
tion 1.6061–1 of the Income Tax Regula-
tions provides that a return may be signed
by an agent who is duly authorized under
§ 1.6012–1(a)(5) or (b) to make the return.
.03 Section 31.6302–1 of the Employ-
ment Tax Regulations provides the rules
for depositing employment taxes. Section
31.6302–1(h) implements § 6302(h) of the
Internal Revenue Code, which requires the
use of an electronic fund transfer system
for the collection of federal depository
taxes. TheEFTPSistheelectronicfund
transfer system developed to collect these
taxes. Rev. Proc. 97–33, 1997–2 C.B.
371, provides general information about
EFTPS, and Rev. Proc. 2012–33, 2012–34
I.R.B. 272, provides information about
EFTPS programs for Reporting Agents
making FTDs and FTPs on behalf of mul-
tiple taxpayers.
.04 The Internal Revenue Service (Ser-
vice) has prescribed Form 8655 as the ap-
propriate authorization form for a taxpayer
to use to designate a Reporting Agent to
perform the actions set forth in section 4.02
of this revenue procedure.
.05 All references in this revenue proce-
dure to forms and publications include all
future revisions and successor forms and
publications.
SECTION 3. SIGNIFICANT CHANGES
TO REV. PROC. 2007–38
.01 This revenue procedure modifies
and supersedes Rev. Proc. 2007–38,
2007–1 C.B. 1442, by making the follow-
ing changes to Rev. Proc. 2007–38:
(1) Section 5.02(3) has been revised
to state that whenever Reporting Agents
make FTDs or FTPs for client taxpayers,
the Reporting Agents must use the EFTPS
or FTA. Since a taxpayer enrolled in the
EFTPS can view FTDs and FTPs made
on its behalf by Reporting Agents, a tax-
payer will be able to verify that a Reporting
Agent has, in a timely manner, made those
FTDs and FTPs. Sections 1.01(3), 4.02(3),
5.02(3), and 5.05 have been revised to re-
flect expanded use of the EFTPS for FTDs
and FTPs.
(2) Section 5.04 has been revised to
state that although a new Authorization
must be submitted to the Service for any
increase or decrease in the authority of a
Reporting Agent to act for its client, the
preceding Authorization remains in effect
except as modified by the new one.
(3) Section 5.05 has been revised to re-
quire Reporting Agents to notify taxpay-
ers in writing on at least a quarterly basis
that an Authorization does not eliminate
the taxpayer’s liability for the failure to file
employment tax returns or remit employ-
ment taxes.
(4) Section 13 updates the list of other
related documents.
SECTION 4. DEFINITIONS
.01Reporting Agent.A Reporting
Agent is an accounting service, franchiser,
bank, service bureau, or other entity au-
thorized to perform on behalf of a taxpayer
one or more of the acts described in this
revenue procedure.
.02Authorization.An Authorization al-
lows a taxpayer to designate a Reporting
Agent to:
(1) Sign and file electronically Form
940, Form 941, the forms set forth on
Form 8655, and amended or any succes-
sor forms.
(2) Sign and file on paper (to the extent
the IRS does not require filing electron-
ically) the following forms: amended
returns on Form 940,Employer’s An-
nual Federal Unemployment (FUTA) Tax
Return; Forma 940-PR,Planilla para
la Declaración Anual del Patrono de la
Contribución Federal para el Desempleo
(FUTA); Forma 941-PR,Planilla para
la Declaración Federal TRIMESTRAL
del Patrono; Form 941-SS,Employer’s
QUARTERLY Federal Tax Return (Amer-
ican Samoa, Guam, the Commonwealth
of the Northern Mariana Islands, and the
U.S. Virgin Islands); Form 941-X,Ad-
justed Employer’s QUARTERLY Federal
Tax Return or Claim for Refund; Form 943,
Employer’s Annual Federal Tax Return for
Agricultural Employees; Forma 943-PR,
Planilla para la Declaración Anual de la
Contribución Federal del Patrono de Em-
pleados Agrícolas;Form943-X,Adjusted
Employer’s Annual Federal Tax Return
for Agricultural Employees or Claim
for Refund;Form944,Employer’s An-
nual Federal Tax Return; Forma 944(SP),
Declaración Federal ANUAL de Impuestos
del Patrono o Empleador; Form 944-X,
Adjusted Employer’s ANNUAL Federal
TaxReturnorClaimforRefund;Form
945,Annual Return of Withheld Federal
Income Tax; Form 945-X,Adjusted Annual
Return of Withheld Federal Income Tax
or Claim for Refund; Form 1042,Annual
Withholding Tax Return for U.S. Source
Income of Foreign Persons; Form CT–1,
Employer’s Annual Railroad Retirement
Tax Return;FormCT–1X,Adjusted Em-
ployer’s Annual Railroad Retirement Tax
Return or Claim for Refund, any other
forms set forth on Form 8655 but not listed
in this section 4.02, and any amended or
successor forms.
(3) Make FTDs and FTPs electronically
via the EFTPS or FTA and submit FTD in-
formation and FTP information electroni-
cally for the taxes deposited and the pay-
ments reported on applicable returns set
forth on Form 8655. A more complete
definition of the FTA “same-day” system
can be found at section 3.07 of Rev. Proc.
97–33, 1997–2 C.B. 371 (under the name
“electronic tax application”); the Treasury
Department’swww.eftps.govsite also pro-
vides information regarding these same-
day payments.
(4) Receive duplicate copies of offi-
cial notices, correspondence, deposit re-
quirements, transcripts, or other informa-
tion with respect to the tax returns de-
scribed in section 4.02(1) or (2) of this rev-
enue procedure.
(5) Receive duplicate copies of offi-
cial notices, correspondence, deposit re-
quirements, transcripts, or other informa-
tion with respect to FTDs and FTPs.
.03Reporting Agent’s List.AReport-
ing Agent’s List (Agent’s List) identifies
all taxpayers for whom a Reporting Agent
will file tax returns, make FTDs and FTPs,
or submit FTD information and FTP infor-
mation electronically. A separate Autho-
rization must be submitted for each tax-
payer on the Agent’s List.
SECTION 5. SCOPE OF REPORTING
AGENT AUTHORIZATION
.01 The scope of an Authorization for
filing the returns listed on Form 8655 is as
follows:
2012–34 I.R.B.268August 20, 2012

(1) A taxpayer may authorize a Report-
ingAgenttosignandfileonthetaxpayer’s
behalf any or all of the returns listed on
Form 8655 and any amended and succes-
sor forms. A Form 8655 that authorizes a
Reporting Agent to sign and file a Form
941, Form 941-SS, Forma 941-PR, Form
944, or Forma 944(SP) also authorizes the
Reporting Agent to sign and file any other
form in the Form 941 or 944 series of re-
turns.
(2) A taxpayer may authorize a Report-
ing Agent to receive duplicate copies of
notices, correspondence, deposit require-
ments, transcripts, or other information
with respect to the returns filed by the
Reporting Agent.
(3) A taxpayer may authorize a Report-
ing Agent to receive confidential taxpayer
information from the Service to assist in
responding to notices relating to the Form
W–2 or Form 1099 series of information
returns, or the Form 3921 or Form 3922 in-
formation returns.
(4) An Authorization that permits a Re-
porting Agent to make returns also per-
mits a Reporting Agent to request informa-
tion from the Service or submit informa-
tion to the Service about the returns filed
by the Reporting Agent. This authority ex-
tends to any information concerning penal-
ties that may arise from the returns, includ-
ing information that may assist the Ser-
vice in determining whether it would be
appropriate to grant relief from any penal-
ties arising from the returns. This author-
ity continues regardless of a change in fil-
ing requirements. For instance, if a Re-
portingAgent,pursuanttoanAuthoriza-
tion, made and filed a Form 941 on behalf
of a taxpayer prior to the Service notifying
the taxpayer that the taxpayer’s filing re-
quirement was changed from Form 941 to
Form 944, the Reporting Agent has author-
ity to continue to request information from
the Service or submit information to the
Service about the previously-filed Form
941, assuming the Reporting Agent’s Au-
thorization remains in effect.
(5) An Authorization, however, does
not permit the Reporting Agent to request
the abatement of any penalties that may
arise from the returns filed by the Re-
porting Agent or to perform in any other
way any acts that constitute representa-
tion of the taxpayer within the meaning of
§ 601.501(b)(13) of the Statement of Pro-
cedural Rules.
.02 The scope of an Authorization for
making FTDs and FTPs and submitting
FTD information and FTP information is
as follows:
(1) A taxpayer may authorize a Report-
ing Agent to make FTDs and FTPs for any
taxes reported on any of the returns listed
on Form 8655 and to submit FTD informa-
tion and FTP information on the taxpayer’s
behalf. A Form 8655 that authorizes a Re-
porting Agent to prepare and make FTDs
and FTPs on Form 990-C,Farmers’ Co-
operative Association Income Tax Return,
also authorizes a Reporting Agent to pre-
pare and make FTDs and FTPs on Form
1120-C,U.S. Income Tax Return for Coop-
erative Associations.
(2) A taxpayer may authorize a Report-
ing Agent to receive duplicate copies of
notices and correspondence for FTDs and
FTPs made by the Reporting Agent for the
taxpayer.
(3) A Reporting Agent that makes
FTDs or FTPs for a taxpayer must do so
through the EFTPS or FTA, regardless of
the method the taxpayer specifies for such
deposits and payments, and regardless of
whether the taxpayer must make deposits,
payments, or information submissions
electronically.
(4) An Authorization that permits a
Reporting Agent to make FTDs and FTPs
also permits the Reporting Agent to re-
quest information from the Service or
submit information to the Service on the
FTDs and FTPs submitted by the Report-
ing Agent. It further permits the Reporting
Agenttosubmitanyinformationcon-
cerning penalties that may arise from the
returns, including information that may
assist the Service in determining whether
it would be appropriate to grant relief from
penalties. This authority continues regard-
less of a change in forms. For instance, if
a Reporting Agent had authority to make
FTDsandFTPsinconnectionwithForm
990-C and did so, and the Service later
replaces Form 990-C with Form 1120-C,
absent a change to the Authorization, the
Reporting Agent has authority to make
FTDs and FTPs on behalf of the taxpayer
in connection with Form 1120-C. The
Reporting Agent also retains authority to
request information from the Service or
submit information to the Service about
theFTDsandFTPsrelatingtoForm
990-C.
(5) An Authorization does not per-
mit the Reporting Agent to request the
abatement of any penalties that may arise
from the FTDs or FTPs made by the Re-
porting Agent or to perform in any other
way any acts that constitute representa-
tion of the taxpayer within the meaning
of § 601.501(b)(13) of the Statement of
Procedural Rules.
.03 An Authorization becomes effective
for the tax period(s) designated by the Re-
porting Agent and taxpayer and remains in
effect for subsequent periods until revoked
by the taxpayer or terminated by the Re-
porting Agent or the Service, subject to the
following:
(1) The Service must accept the Autho-
rization and Agent’s List before the Re-
porting Agent may file a return on behalf
of a taxpayer.
(2) The Reporting Agent must ob-
serve the rules of Rev. Proc. 2012–33,
2012–34 I.R.B. 272 and any successor
published guidance, or instructions posted
onwww.irs.govorwww.eftps.govin mak-
ing electronic FTDs or FTPs on behalf of
a taxpayer, or submitting FTD information
or FTP information electronically.
(3) See section 13 of this revenue proce-
dure for a list of other applicable guidance.
.04 Unless the instructions to the Form
8655 or any successor form provide oth-
erwise, a new Authorization must be sub-
mitted to the Service for any increase or
decrease in the scope of the authority of
a Reporting Agent to act on behalf of the
taxpayer, but the preceding Authorization
regarding the taxpayer and the Reporting
Agent shall remain in effect except as mod-
ified by the new Authorization. Unless the
instructions to the Form 8655 or any suc-
cessor form provide otherwise, a new Au-
thorization must also be submitted to the
Service if a taxpayer appoints a new Re-
porting Agent. Receipt by the Service of
an Authorization designating a new Re-
porting Agent terminates the authority of
the prior Reporting Agent for all purposes
for tax periods beginning on or after the ef-
fective date of the new Authorization. An
Authorization designating a new Report-
ing Agent also terminates the authority of
the prior Reporting Agent to receive du-
plicate copies of notices. For the tax peri-
ods beginning before the effective date of
the new Authorization, the prior Reporting
Agent retains the authority specified in the
August 20, 20122692012–34 I.R.B.

prior Authorization unless the taxpayer ex-
plicitly revokes the prior Authorization.
.05 An Authorization does not relieve
the taxpayer of the responsibility (or from
liability for failing) to ensure that all tax
returns are filed timely and that all FTDs
and FTPs are made timely.
A Reporting Agent must provide the
taxpayer with a written statement that (a)
advises the taxpayer of taxpayer’s respon-
sibility to timely file the returns listed on
the Form 8655 and make FTDs and FTPs,
(b) advises the taxpayer that authorizing a
Reporting Agent to perform any of these
obligations does not relieve the taxpayer
from any liabilities resulting from the Re-
porting Agent’s failure to perform these
obligations, (c) recommends that the tax-
payer enroll in and use the EFTPS to as-
certain whether the Reporting Agent has,
on a timely basis, made all required FTDs
and FTPs, and (d) advises the taxpayer that
state-level tax verification programs may
also be available. The Reporting Agent
must provide the taxpayer with this state-
ment when it enters into a contract for ser-
vices with the taxpayer and on at least a
quarterly basis for as long as the Report-
ing Agent provides services to the tax-
payer. The statement described in this sec-
tion 5.05 shall consist of the following or
similar language:
Please be aware that you are respon-
sible for the timely filing of employ-
ment tax returns and the timely payment
of employment taxes for your employ-
ees, even if you have authorized a third
partytofilethereturnsandmakethe
payments. Therefore, the Internal Rev-
enue Service recommends that you en-
roll in the U.S. Treasury Department’s
Electronic Federal Tax Payment Sys-
tem (EFTPS) to monitor your account
and ensure that timely tax payments are
being made for you. You may enroll in
the EFTPS online atwww.eftps.gov,or
call (800) 555–4477 for an enrollment
form.
State tax authorities generally offer
similar means to verify tax payments.
Contact the appropriate state offices di-
rectly for details.
The statement described in this subsec-
tion may be provided to the taxpayer in the
form of an electronic mail message. This
statement (whether on paper or electronic)
may be provided either as a stand-alone
communication or as a conspicuous ele-
ment of other communications. If pro-
vided as an element of other communica-
tions, the notice should have its own head-
ing or caption, or otherwise be set apart
from other text, and should be labeled as
“important tax information” or wording to
that effect.
.06AReportingAgentmayuseanAu-
thorization to file paper returns listed on
Form 8655 on behalf of a taxpayer only if:
(1) The late receipt of payroll informa-
tion from a taxpayer has jeopardized the
timely electronic filing of the taxpayer’s
return;
(2) The paper return amends Form 940
filed under the electronic filing programs
referenced in section 13 of this revenue
procedure;
(3) The Service’s rejection of an elec-
tronic filing has jeopardized the timely fil-
ing of the taxpayer’s return;
(4) The returns are listed in section
4.02(2) of this revenue procedure;
(5) The Service’s electronic return pro-
gram administrator for a Reporting Agent
participating in an electronic filing pro-
gram referenced in section 13 of this rev-
enue procedure has requested paper re-
turns; or
(6) The Service’s systems do not ac-
commodate electronic filing of an attach-
ment required to be filed with the return.
.07 A Reporting Agent authorized by
Form 8655 may prepare a paper tax return
for the taxpayer’s signature.
.08 Each paper tax return must be
signed by the taxpayer, by the taxpayer’s
authorized representative, or by a Report-
ing Agent permitted in section 5.06 of this
revenue procedure to file paper returns on
behalf of the taxpayer.
.09 The Reporting Agent must provide
the taxpayer with a complete copy of any
returns filed by the Reporting Agent. This
information may be provided on a replica
of an official form or in any other format
that provides all of the return information
and references the line numbers of the of-
ficial form.
.10 A Reporting Agent must keep a
copy of each Authorization designating
that Reporting Agent as an agent for a tax-
payer at the Reporting Agent’s principal
place of business and make it available for
inspection by the Service until the period
of limitations for assessment of tax for the
last return filed pursuant to the Authoriza-
tion expires.
SECTION 6. COMPLETING
A REPORTING AGENT
AUTHORIZATION
.01 An Authorization must be provided
on Form 8655 with a revision date of
May 2005 or later or on an approved sub-
stitute form as described in Publication
1167,General Rules and Specifications
for Substitute Forms and Schedules.When
completing Form 8655, a taxpayer may
strike out any non-applicable portions of
the form. Once completed, a Reporting
Agent may fax the Authorization to the
Service.
.02AnAuthorizationmustbesigned
by the taxpayer or an authorized repre-
sentative holding a power of attorney that
specifically authorizes the representative
to sign returns on behalf of the taxpayer.
If the Authorization provides that the Re-
porting Agent is authorized to receive tax
return notices, correspondence, deposit re-
quirements, and transcripts from the Ser-
vice, or discuss taxpayer account infor-
mation with Service representatives and is
signed by a person other than the taxpayer,
the authorized representative must be au-
thorized both to receive, and to designate
others to receive, tax return information (as
defined in § 6103(b)(2)) of the taxpayer.
The Authorization shall be completed and
submitted in accordance with the instruc-
tions to the Form 8655 and any other writ-
ten procedures promulgated by the Ser-
vice.
.03 Except to the extent provided in sec-
tion 6.04 of this revenue procedure, an Au-
thorization will remain in effect until the
Service receives a revocation of the Au-
thorization or a new Authorization or a Re-
porting Agent is suspended.
.04 A new Authorization is not required
to replace an Authorization made on Form
8655 with a revision date before Octo-
ber 1995 (or made on an equivalent sub-
stitute) that was previously submitted to
the Service by a Reporting Agent if the
Authorization places no restriction on the
medium for filing Forms 940 or 941 and
the Reporting Agent advises the taxpayer
that its Forms 940 and 941 may be filed
electronically and that the taxpayer has the
option to reject electronic filing. A Re-
porting Agent may use whatever method
the Reporting Agent deems the most effi-
cient and timely method to convey the ad-
vice. A taxpayer’s rejection of electronic
2012–34 I.R.B.270August 20, 2012

filing of Forms 940 or 941 must be sub-
mitted in writing to the Reporting Agent,
and upon receipt the Reporting Agent must
immediately remove the taxpayer from the
Agent’s List or database of taxpayers for
which the Reporting Agent files returns
electronically.
SECTION 7. SUBMITTING
A REPORTING AGENT
AUTHORIZATION
.01 A Reporting Agent that intends to
useanAuthorizationtofileForms940or
941 must formally apply to the Service
for electronic filing privileges because Re-
porting Agents (with the limited excep-
tions noted in section 5.06 of this revenue
procedure) must file such forms electron-
ically. A Reporting Agent that intends
to use an Authorization to make FTDs or
FTPs (and submit related information), or
to file Form 944 electronically, must for-
mally apply to the Service for those privi-
leges. The application process for permis-
sion to electronically file Forms 940, 941,
and 944 and for participation in EFTPS is
contained in the documents (or their suc-
cessors) listed in section 13 of this rev-
enue procedure. Applications must be ac-
companied by individual Authorizations,
signed as provided in section 6.02 of this
revenue procedure, and an Agent’s List (if
required by the applicable guidance docu-
ment).
.02 An Agent’s List must contain each
taxpayer’s employer identification num-
ber. Agent’s Lists may be filed electroni-
cally, as appropriate, but if the number of
taxpayers/clients exceeds 100, the Agent’s
List must be filed electronically. For
specific information concerning the re-
quirements for filing and updating Agent’s
Lists, see Publication 1474 and the docu-
ments listed in section 13 of this revenue
procedure. The Service contacts listed in
section 12 of this revenue procedure may
also be contacted for this information.
SECTION 8. SUSPENSION
.01 The Service reserves the right to
suspend a Reporting Agent from the Re-
porting Agent program for the following
reasons (this list is not all-inclusive):
(1) Failing to perform the acts described
in sections 4.02 or 5.05 of this revenue
procedure or Publication 1474.
(2) Submitting payment information on
behalf of taxpayers for which the Report-
ing Agent did not receive Authorizations.
(3) Failing to comply with the require-
ments of any regulation, revenue proce-
dure, or other published guidance applica-
ble to Reporting Agents.
(4) Failing to cooperate with the Ser-
vice’s efforts to monitor Reporting Agents
and investigate abuse in the Reporting
Agent program.
(5) Receiving significant complaints
about the Reporting Agent’s performance
in the Reporting Agent program.
.02 If the Service informs a Report-
ing Agent that a certain action is a reason
for suspension and the action continues,
the Service may send the Reporting Agent
a notice proposing suspension of the Re-
porting Agent from the Reporting Agent
program. A notice proposing suspension,
however, may be sent without a warning if
the Reporting Agent’s actions indicate an
intentional disregard of the rules. A no-
tice proposing suspension will describe the
reasons for the proposed suspension, the
length of the suspension, and the condi-
tions that need to be met before the sus-
pension will terminate.
SECTION 9. ADMINISTRATIVE
REVIEW PROCESS FOR PROPOSED
SUSPENSION
.01 A Reporting Agent that receives
a notice proposing suspension from the
Reporting Agent program, as described
in section 8.02 of this revenue procedure,
may request an administrative review prior
to the suspension taking effect.
.02 The request for an administrative re-
view must be in writing and contain de-
tailed reasons, with supporting documen-
tation, for withdrawal of the proposed sus-
pension.
.03Thewrittenrequestforanadmin-
istrative review and a copy of the notice
proposing suspension must be delivered to
the address designated in the notice within
30 days of the effective date of the notice.
.04 If a written request for administra-
tive review is timely submitted, the Service
will, after consideration of the request, ei-
ther issue a suspension letter or notify the
Reporting Agent in writing that the pro-
posed suspension is withdrawn.
.05 Failure to submit a timely written
request for an administrative review irre-
vocably terminates the Reporting Agent’s
right to an administrative review of the
proposed suspension, and the Service will
issue a suspension letter.
SECTION 10. EFFECT OF
SUSPENSION
.01 The Reporting Agent’s suspension
will continue for the length of time spec-
ified in the suspension letter, or until the
conditions for terminating the suspension
have been met, whichever is later. If a Re-
porting Agent is suspended, the Service’s
subsequent determination of whether a
reason for suspension has been corrected
is not subject to administrative review or
appeal.
.02 After suspension, a Reporting
Agent may not perform the acts described
in this revenue procedure. As an excep-
tion, a Reporting Agent may submit an
FTD if the FTD is due not more than 30
days after the effective date on the suspen-
sion letter. A Reporting Agent, however,
cannot submit FTPs during the suspension
period.
.03 A Reporting Agent must provide
written notification of a suspension from
the Reporting Agent program to each tax-
payer in the program within 10 days from
the date on the suspension letter. This
notification must be provided irrespective
of the length of the suspension or how
quickly the Reporting Agent believes it
may meet the conditions for terminating
the suspension.
.04 A Reporting Agent will be able to
perform the acts described in section 4.02
of this revenue procedure without re-reg-
istering in the Reporting Agent program
after the stated suspension period expires
and the reason(s) for suspension are cor-
rected.
SECTION 11. APPEAL OF
SUSPENSION
.01 If a Reporting Agent receives a sus-
pension letter from the Service, the Report-
ing Agent is entitled to appeal, by writ-
ten protest, to the Service. The written
protest must be delivered to the address
designated on the suspension letter. Dur-
ing the appeals process, the suspension re-
mains in effect.
.02 The written protest must be received
by the Service within 30 days of the effec-
August 20, 20122712012–34 I.R.B.

tive date on the suspension letter. The writ-
ten protest must contain detailed reasons,
with supporting documentation, for with-
drawal of the suspension.
.03 Failure to appeal within the 30-day
period described in section 11.02 of this
revenue procedure irrevocably terminates
the Reporting Agent’s right to appeal the
suspension under section 11.01.
SECTION 12. INTERNAL REVENUE
SERVICE CONTACTS
Publication 1474 and Publication 1167
may be obtained electronically via the Ser-
vice’s website atwww.irs.govor through
the mail by calling (800) 829–3676 to re-
quest a copy. In addition, requests for Pub-
lication 1474 and questions regarding this
revenue procedure may be addressed to the
Service at:
Internal Revenue Service
Accounts Management Service Center
MS 6748 RAF Team
1973 North Rulon White Blvd.
Ogden, UT 84201
QuestionsregardingPublica-
tion 1167 may be directed to
substituteforms@irs.gov.
SECTION 13. OTHER RELATED
DOCUMENTS
These documents describe programs
that require an Authorization as a prereq-
uisite to participation:
(1) For rules regarding Form 944, see
§§ 31.6011(a)–1T, 31.6011(a)–4T and
31.6302–1T of the Employment Tax Regu-
lations, and Rev. Proc. 2009–51, 2009–45
I.R.B. 625.
(2) For electronic filing of Forms 940,
941, and 944, see Rev. Proc. 2007–40,
2007–1 C.B. 1488.
(3) For participation in EFTPS, see Rev.
Proc. 2012–33, 2012–34 I.R.B. 272.
(4) For the Service’s e-file program
generally, see Publication 3112,IRS e-file
Application and Participation.
(5) For rules on preparation and submis-
sion of Form 8655, see Publication 1474,
Technical Specifications Guide for Report-
ing Agent Authorization and Federal Tax
Depositors.
SECTION 14. EFFECT ON OTHER
DOCUMENTS
This revenue procedure modifies and
supersedes Rev. Proc. 2007–38, 2007–1
C.B. 1442.
SECTION 15. EFFECTIVE DATE
This revenue procedure is effective
November 19, 2012.
SECTION 16. PAPERWORK
REDUCTION ACT
The collection of information in this
revenue procedure has been reviewed and
approved by the Office of Management
and Budget in accordance with the Paper-
work Reduction Act (44 U.S.C. 3507) un-
der control number 1545–1058.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
control number.
The collection of information in this
revenue procedure is in section 5.05. This
informationisrequiredtoinformclientsof
reporting agents that the clients remain li-
able for the taxes the agents must remit.
The information is also required to advise
the clients to enroll in the EFTPS. The col-
lection of information is mandatory. The
likely respondents are business or other
for-profit institutions.
The estimated total annual recordkeep-
ing and third-party disclosure burden will
be 12,750 hours. The estimated annual
burden per recordkeeper is three hours.
The estimated number of recordkeepers is
4,250.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 17. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Nathan Rosen of the Office of
Associate Chief Counsel (Procedure and
Administration). Mr. Rosen may be con-
tacted at (202) 622–3630 (not a toll-free
number).
2
6 CFR 601.602: Tax forms and instructions.
(
Also Part 1, §§ 6001, 6302, 6651, 6655, 6656, 31.6302–1.)
Rev. Proc. 2012–33
TABLE OF CONTENTS
SECTION 1. PURPOSE
............................................................................................ 273
SECTION 2. BACKGROUND....................................................................................... 273
SECTION 3. DEFINITIONS......................................................................................... 274
SECTION 4. GENERAL PROCEDURES............................................................................. 275
SECTION 5. REGISTRATION...................................................................................... 275
SECTION 6. AUTHORIZATIONS.................................................................................... 275
SECTION 7. ENROLLMENT....................................................................................... 276
2012–34 I.R.B.272August 20, 2012

SECTION 8. ACH DEBIT ENTRY................................................................................... 276
SECTION 9. ACH CREDIT ENTRY.................................................................................. 276
SECTION 10. FEDERAL TAX APPLICATION TRANSACTION......................................................... 277
SECTION 11. PROOF OF PAYMENT................................................................................ 277
SECTION 12. REFUNDS........................................................................................... 277
SECTION 13. DISASTER PROCEDURES............................................................................. 278
SECTION 14. RESPONSIBILITIES OF A PROVIDER.................................................................. 278
SECTION 15. ADVERTISING STANDARDS.......................................................................... 278
SECTION 16. REASONS FOR SUSPENSION.......................................................................... 278
SECTION 17. ADMINISTRATIVE REVIEW PROCESS FOR PROPOSED SUSPENSION................................... 279
SECTION 18. EFFECT OF SUSPENSION............................................................................. 279
SECTION 19. APPEAL OF SUSPENSION............................................................................ 279
SECTION 20. ADDITIONS TO TAX AND PENALTIES................................................................. 279
SECTION 21. FORMS, PUBLICATIONS, IMPLEMENTATION GUIDES, AND ADDITIONAL
INFORMATION
....................................................................................... 279
SECTION 22. EFFECT ON OTHER DOCUMENTS.................................................................... 280
SECTION 23. EFFECTIVE DATE.................................................................................... 280
SECTION 24. PAPERWORK REDUCTION ACT....................................................................... 280
SECTION 25. DRAFTING INFORMATION........................................................................... 280
SE
CTION 1. PURPOSE
This revenue procedure provides in-
formation about the Electronic Federal
Tax Payment System (EFTPS) programs
for Batch Providers and Bulk Providers
(Providers). EFTPS is an electronic re-
mittance processing system for making
federal tax deposits (FTDs) and federal
tax payments (FTPs). The Batch Provider
and Bulk Provider programs are used by
Providers for electronically submitting
enrollments, FTDs, and FTPs on behalf of
multiple taxpayers.
SECTION 2. BACKGROUND
.01 Section 6302(c) of the Internal Rev-
enue Code provides that the Secretary of
the Treasury (Secretary) may authorize
Federal Reserve banks, and incorporated
banks and other financial institutions that
are depositories or financial agents of the
United States, to receive any tax imposed
under the internal revenue laws, in such
manner, at such times, and under such
co
nditions as the Secretary may prescribe.
Se
ction 6302(c) also provides that the Sec-
re
tary shall prescribe the manner, times,
a
nd conditions under which the receipt of
s
uch tax by such banks and other financial
i
nstitutions is to be treated as a payment
o
f such tax to the Secretary. Beginning
J
anuary 1, 2011, Treasury Decision 9507
r
equires that a taxpayer must deposit all
depository taxes (such as employment
tax, excise tax, and corporate income tax)
electronically by electronic funds transfer
(EFT). Paper coupons (i.e., Forms 8109
and 8109-B,Federal Tax Deposit Coupon)
can no longer be used to make deposits at
a bank or other financial institution.
.02 Section 6302(h) requires the Secre-
tary to establish an EFT system to collect
FTDs. EFTPS is the EFT system devel-
oped by the Secretary to collect FTDs and
FTPs. See § 31.6302–1(h)(4)(i) of the Em-
ployment Taxes and Collection of Income
Tax at Source Regulations, and Rev. Proc.
97–33, 1997–2 C.B. 371.
.0
3 Some taxpayers are required by
th
e regulations issued under § 6302(h)
to
make FTDs and FTPs using EFT. See
§
31.6302–1(h)(2). Taxpayers not required
t
o make FTDs using EFT may choose to
d
o so voluntarily. Taxpayers also may
c
hoose to make FTPs using EFT.
W
henever a “Reporting Agent,” as that
t
erm is defined in Rev. Proc. 2012–32,
2
012–34 I.R.B. 267, or any successor pub-
l
ished guidance, remits FTDs or FTPs on
behalf of a taxpayer, the Reporting Agent
must use EFTPS, regardless of whether
the taxpayer is required to use EFTPS. As
noted in Rev. Proc. 2012–32, 2012–34
I.R.B. 267, the Reporting Agent may also
use the Federal Tax Application (FTA) sys-
tem in remitting FTDs or FTPs on behalf of
ataxpayer.
.04 All Providers using the Batch
Provider or Bulk Provider programs must
comply with this revenue procedure, and
with the User Manual for EFTPS Batch
Providers, or the Implementation Guide
August 20, 20122732012–34 I.R.B.

for EFTPS Bulk Providers, whichever ap-
plies.
.05 The two primary remittance meth-
ods in EFTPS are an Automated Clear-
ing House (ACH) debit entry and an ACH
credit entry. Providers may also use an
FTA transaction. These remittance meth-
odsaredefinedinsection3anddescribed
in sections 8, 9, and 10 of this revenue pro-
cedure.
.06 Providers participating in EFTPS
must ensure that taxpayers’ funds
are remitted on a timely basis. See
§ 31.6302–1(h)(8) for rules regarding
when an FTD remitted by EFTPS is
deemed made. For FTDs and FTPs remit-
ted by EFTPS, see § 31.6302–1(h)(9) for
rules regarding when the tax is deemed
paid.
.07 If a taxpayer is a voluntary partic-
ipant in EFTPS (that is, a participant not
required by regulations or other guidance
from the Internal Revenue Service (Ser-
vice) to make an FTD by EFTPS) and the
Provider is unable, for any reason, to make
an FTD using EFTPS or chooses not to use
EFTPS to make an FTD, the Provider may,
to the extent permitted by regulations un-
der § 6302, remit the deposit with the tax
return to which the deposit relates.
.08 EFTPS does not change the compu-
tation of tax liability, interest or penalties,
or FTD or FTP due dates.
SECTION 3. DEFINITIONS
.01 The definitions provided in this sec-
tion will be used for the Batch Provider and
Bulk Provider programs.
.02Administrative FRB Head Office
Local Zone Time.“ FRB Head Office Lo-
cal Zone Time” is the local zone time of
the Administrative Federal Reserve Bank
head office through which a financial in-
stitution, or its authorized correspondent
bank, sends a Same-Day Payment.
.03Authorization.An “Authorization”
is an instrument used by a taxpayer to des-
ignate a Provider as the taxpayer’s report-
ing agent for submitting enrollments and
for making FTDs or FTPs. See Rev. Proc.
2012–32, 2012–34 I.R.B. 267 for addi-
tional detail on Authorizations.
.04Automated Clearing House(ACH).
“Automated Clearing House” is a funds
transfer system, governed by the ACH
Rules (the Operating Rules and the Op-
erating Guidelines published by National
Automated Clearing House Association
(NACHA)) that provides for the interbank
clearing of electronic entries for partici-
pating financial institutions.
.05ACH credit entry.An “ACH credit
entry” is a transaction in which a finan-
cial institution, upon instructions from a
Provider, originates an FTD or FTP to the
appropriate Treasury Department account
through the ACH system. An ACH credit
entry is a transfer of funds representing one
FTDorFTP.Thereareno“bulk”ACH
credit entries. See section 9 of this rev-
enue procedure for information on an ACH
credit entry.
.06ACH debit entry.An “ACH debit
entry” is a transaction in which the Fi-
nancial Agent, upon instructions from a
Provider, instructs the financial institution
of the Provider or the taxpayer to withdraw
funds from a designated account for an
FTD or FTP and to route the FTD or FTP
to the appropriate Treasury Department ac-
count through the ACH system. A single
ACH debit entry is a transfer of funds rep-
resenting one FTD or FTP. A bulk ACH
debit entry (a remittance method avail-
able only in the Bulk Provider program)
is a transfer of funds representing multiple
FTDs or FTPs. See section 8 of this rev-
enue procedure for information on an ACH
debit entry.
.07Batch Provider.A Batch Provider
is a Provider that is registered under
the Batch Provider program. A Batch
Provider submits multiple electronic en-
rollment files at one time and uses a per-
sonal computer or telephone for making
FTDs or FTPs.
.08Bulk Provider.A Bulk Provider is a
Provider that is registered under the Bulk
Provider program. A Bulk Provider uses
Electronic Data Interchange (EDI) files to
transmit and receive enrollment or pay-
ment information. A Bulk Provider also
has additional remittance methods (bulk
ACH debit entries and bulk FTA entries).
.09Federal tax application (FTA)
transaction.An “FTA transaction” (also
referred to as “Same-Day Payment”) is an
electronic transfer of funds that receives,
processes, and transmits an FTD or FTP
and the related tax payment information
for Same-Day Payments. A single FTA
transaction is a transfer of funds repre-
senting one FTD or FTP. A bulk FTA
transaction (a remittance method available
only in the Bulk Provider program) is a
transfer of funds representing multiple
FTDs or FTPs. See section 10 of this
revenue procedure, section 3.07 of Rev.
Proc. 97–33 (under the name “electronic
tax application”), andwww.eftps.govfor
further information on an FTA transaction.
.10Employer identification number
(EIN). An “EIN” is a unique nine digit
taxpayer identifying number issued by the
Service to business taxpayers for the pur-
pose of reporting tax related information.
.11Federal Reserve Bank(FRB). The
“FRB” is the U.S. Government’s fiscal
agent. The FRB also processes ACH
transactions to a commercial financial
institution account or to a Treasury De-
partment account.
.12Financial Agent.For purposes of
EFTPS, a “Financial Agent” (also referred
to as a “Treasury Financial Agent”) is a
financial institution that is designated as
an agent of the Treasury Department. The
Secretary has designated Bank of America
to be the Financial Agent for EFTPS. The
Financial Agent processes Batch Provider
and Bulk Provider registrations, processes
taxpayer enrollments, receives payment
information, originates ACH debit en-
tries upon instructions from taxpayers or
Providers, and provides customer service
assistance for EFTPSenrollment and pay-
ment information.
.13IRS individual taxpayer identifica-
tion number(ITIN). An “ITIN” is a tax-
payer identifying number issued by the
Service to an alien individual who is inel-
igible to receive a social security number
(SSN) for the purpose of reporting tax re-
lated information.
.14Prenotification ACH credit.
“Prenotification ACH credit” is a process
whereby a financial institution verifies
the appropriate Treasury Routing Transit
Number (RTN), the Treasury Depart-
ment’s account number, and the taxpayer’s
taxpayer identification number (TIN).
.15Prenotification ACH debit.“Preno-
tification ACH debit” is a process whereby
the appropriate Financial Agent verifies
the RTN of the financial institution, the ac-
count number, and the account type.
.16Provider. A “Provider” is a person
making FTDs or FTPs on behalf of multi-
ple taxpayers in the Batch Provider or Bulk
Provider program. Each Provider must be
either the taxpayer or a person authorized
to act on behalf of the taxpayer.
2012–34 I.R.B.274August 20, 2012

.17Social security number. A “SSN” is
a taxpayer identifying number assigned to
an individual or estate by the Social Secu-
rity Administration.
.18Taxpayer identification number
(TIN). A “TIN” is the identifying number
assigned to a person under § 6109. A TIN
includes an EIN, ITIN, or SSN.
SECTION 4. GENERAL PROCEDURES
Providers must follow the following
procedures to participate in the Batch
Provider or Bulk Provider programs:
(1) register as a Provider with the Finan-
cial Agent (see section 5 of this revenue
procedure);
(2) obtain an Authorization from each
taxpayer for which the Provider will be
submitting enrollments and making FTDs
or FTPs, and submit these Authorizations
to the Service in accordance with the in-
structions to Form 8655,Reporting Agent
Authorization, or any successor form (see
section 6 of this revenue procedure); and
(3) enroll each of those taxpayers with
the Financial Agent (see section 7 of this
revenue procedure).
SECTION 5. REGISTRATION
.01 A Provider may register for the
Batch Provider or Bulk Provider program
if the Provider anticipates making FTDs
or FTPs for multiple taxpayers.
.02 The Batch Provider program is rec-
ommended for Providers who anticipate
submitting 50 or more enrollments. Addi-
tional information for Batch Providers is
furnished in the Implementation Guide for
EFTPS Batch Providers. A copy of this
implementation guide may be obtained
from EFTPS Customer Service (see sec-
tion 21 of this revenue procedure).
.03 The Bulk Provider program is rec-
ommended for Providers who anticipate
making 750 or more FTDs or FTPs on a
peak day. Additional information for Bulk
Providers is furnished in the Implementa-
tion Guide for EFTPS Bulk Providers. A
copy of this implementation guide may be
obtained from EFTPS Customer Service
(see section 21 of this revenue procedure).
.04AProviderwantingtopartici-
pate in either the Batch Provider or Bulk
Provider program must submit the appro-
priate registration letter (also referred to
as an “Agreement”) in accordance with
the instructions in theEFTPS.govwebsite.
SomeBulkProvidersmaywishtousethe
Batch Provider program as a backup. To
participate in both programs, a Provider
must submit a Batch Provider registration
letter and a Bulk Provider registration
letter. Blank registration letter(s) may
be obtained by contacting the Financial
Agent.
.05 A Provider must submit the registra-
tion letter to the address designated in the
instructions accompanying the registration
letter.
.06 If an unregistered entity acquires a
registered Provider, anew registration let-
ter must be submitted by the unregistered
entity if it wants to participate in either the
Batch Provider or Bulk Provider program.
.07 A Provider should notify the Fi-
nancial Agent if the Provider chooses to
withdraw from eitherthe Batch Provider
or Bulk Provider program. A Provider that
is inactive in the Batch Provider or Bulk
Provider program (that is, the Provider
has submitted no enrollments, FTDs, or
FTPs in that program) for six months or
more is treated as having withdrawn from
that program. If a Bulk Provider uses
the Batch Provider program as a backup,
the Provider must submit an FTD or FTP
through the Batch Provider program at
least once every six months to prevent
the Provider from being treated as hav-
ing withdrawn from the Batch Provider
program. If a Provider withdraws (or
is treated as having withdrawn) from a
program, the Provider must re-register to
participate in that program.
SECTION 6. AUTHORIZATIONS
.01 If a Provider is not the taxpayer,
the Provider must obtain the taxpayer’s
Authorization before submitting the tax-
payer’s enrollment to the Financial Agent.
.02 Except as provided under the grand-
father rule in section 23.02 of this revenue
procedure, an Authorization must be pre-
pared on Form 8655,Reporting Agent
Authorization, or any other instrument
that complies with Rev. Proc. 96–17,
1996–1 C.B. 633 and Rev. Proc. 2012–32,
2012–34 I.R.B. 267, or any successor pub-
lished guidance. The Authorization must
bemaintainedandprovidedtotheService
in accordance with the instructions to the
Form 8655 or any successor form.
.03 A Provider that acquires all or some
of the clients of another Provider must ob-
tain new Authorizations from those clients.
The new Authorizations must be main-
tained and provided to the Service in ac-
cordance with the instructions to the Form
8655 or any successor form before the
Provider makes FTDs and FTPs on behalf
of those clients.
.04 An Authorization permits a
Provider to submit enrollments and to
make FTDs or FTPs on behalf of a tax-
payer. An Authorization may also permit
the Provider to receive certain tax informa-
tion on behalf of the taxpayer. Although
EFTPS is designed for the payment of
various types of tax, the Authorization
may limit the types of tax information
the Provider is permitted to receive. For
example, a Provider may make FTDs and
FTPs on behalf of the taxpayer, but may
be authorized to receive only notices re-
garding FTDs for Form 941,Employer’s
QUARTERLY Federal Tax Return,and
Form 940,Employer’s Annual Federal
Unemployment (FUTA) Tax Return.
.05 Except as provided in section 6.07
of this revenue procedure, a Provider sub-
mitting Authorizations to the Service for
the Batch Provider and Bulk Provider pro-
grams on or after April 27, 1998, must
include a list of all taxpayers for whom
the Provider is submitting Authorizations.
The list must include each taxpayer’s com-
plete name (for example, business name on
file with Service), address (including zip
code), and TINs, EINs, SSNs, and ITINs
should each be grouped separately. Within
each group, the taxpayers must be listed in
TIN number sequence.
.06 Except as provided in section 6.07
of this revenue procedure and the instruc-
tions to the Form 8655 or any successor
form, the Authorizations and the accompa-
nying list must be submitted to:
Internal Revenue Service
Accounts Management Service Center
MS 6748 RAF Team
1973 North Rulon White Blvd.
Ogden, UT 84404
orfaxedtotheReportingAgentsFile
(RAF) Team at (801) 620–4142 (not a
toll-free number), or submitted or faxed as
set forth in published guidance, publica-
tions or on www.irs.gov.
August 20, 20122752012–34 I.R.B.

.07 If a Provider has submitted Autho-
rizations to the Service for the Form 941
e-file program, as described in Rev. Proc.
2007–40, 2007–1 C.B. 1488, or the for-
mer Form 941 or Form 940 Mag Tape Pro-
grams, as described in Rev. Proc. 96–18,
1996–1 C.B. 637, and these Authoriza-
tions allow the Provider to make payments
on behalf of the taxpayer, the Provider is
not required to resubmit the Authoriza-
tions or to submit a list containing those
Authorizations to the Service. Similarly, if
a Provider has submitted Authorizations to
the Service for the magnetic tape FTD pro-
gram, as described in Rev. Proc. 96–17,
1996–1 C.B. 633, the Provider is not re-
quired to resubmit the Authorizations or to
submit a list containing those Authoriza-
tions to the Service.
.08 To delete Authorizations that a
Provider previously submitted to the Ser-
vice, the Provider must submit a list of
the taxpayers to be deleted to the RAF
Team. The list must be submitted in the
format prescribed in section 6.05 of this
revenue procedure and to the address (or
fax number) provided in section 6.06 of
this revenue procedure.
SECTION 7. ENROLLMENT
.01 A Provider must submit electronic
taxpayer enrollments to the Financial
Agent in accordance with the applica-
ble implementation guide. As part of
completing each taxpayer enrollment, the
Provider may choose to use the ACH
debit entry or ACH credit entry remittance
method on a taxpayer-by-taxpayer basis.
In both the Batch Provider and the Bulk
Provider programs, enrollment of a tax-
payer in the ACH debit remittance method
will automatically enroll the taxpayer in
the ACH credit remittance method. In
the Bulk Provider program, enrollment
of a taxpayer in the ACH credit remit-
tance method will automatically enroll
the taxpayer in the ACH debit remittance
method. However, in the Batch Provider
program, enrollment of a taxpayer in the
ACH credit remittance method willnot
automatically enroll the taxpayer in the
ACH debit remittance method.
.02 The Financial Agent will verify the
accuracy of the enrollment information
for each taxpayer and enter the verified
enrollment information in its enrollment
record database. As part of the verifica-
tion process for an ACH debit entry in
the Batch Provider program, the Financial
Agent will originate a prenotification ACH
debit, if requested by the Batch Provider.
In the Bulk Provider program, prenotifica-
tion ACH debits are not available. When
a prenotification ACH debit is not made,
the Provider assumes responsibility for the
accuracy of the information, including the
RTN of the financial institution.
.03 When the enrollment process for a
taxpayer is completed, the Financial Agent
will provide the Provider with an enroll-
ment response record that either accepts or
rejects the taxpayer’s enrollment. A re-
jected enrollment will identify necessary
corrections. Any necessary corrections
must be submitted by the Provider as a new
enrollment of that taxpayer.
.04 If a Provider attempts to make an
FTD or FTP through EFTPS before a tax-
payer is enrolled, the FTD or FTP gener-
ally will be rejected and the taxpayer may
be subject to a penalty for a late FTD or
FTP.
SECTION 8. ACH DEBIT ENTRY
.01 For an FTD or FTP to be timely, a
Provider must complete the initiation of an
ACH debit entry with the Financial Agent
at least one business day prior to the FTD
or FTP due date.
.02AProvidermayholdanACHdebit
entry for a business taxpayer by arranging
fortheentryupto30daysinadvanceofthe
due date. A Provider may warehouse an
ACH debit entry for an individual taxpayer
by arranging for the entry up to 105 days
in advance of the due date.
.03 After a Batch Provider or a Bulk
Provider initiates a single ACH debit en-
try, the Financial Agent will validate the
taxpayer’s payment information and is-
sue an acknowledgment number to the
Provider. The acknowledgment number
verifies when the necessary payment in-
formation was received by the Financial
Agent but does not constitute proof of
payment. See section 11 of this revenue
procedure regardingproofofpayment.
.04 After a Bulk Provider initiates a
bulk ACH debit entry, the Financial Agent
will validate the taxpayer’s payment in-
formation and issue acknowledgment
numbers to the Provider for accepted pay-
ments. The Bulk Provider will receive
an acknowledgment number for the bulk
ACH debit entry and separate acknowl-
edgement numbers for each accepted FTD
or FTP included in the bulk ACH debit en-
try. The acknowledgment numbers verify
when the necessary payment information
was received by the Financial Agent but
do not constitute proof of payment. See
section 11 of this revenue procedure re-
garding proof of payment.
.05 In a bulk FTA debit entry, any re-
jected payment will be returned to the Bulk
Provider without an acknowledgement
number and subtracted from the bulk ACH
debit entry, as specified in the Implemen-
tation Guide for EFTPS Bulk Providers.
The Bulk Provider assumes responsibility
for reinitiating any rejected payments.
.06 Pursuant to the Provider’s instruc-
tions, the Financial Agent, on the date
designated by the Provider, will originate
the transfer of funds from the taxpayer’s
or Provider’s accountto the appropriate
Treasury Department account. The Fi-
nancial Agent also will transmit the re-
lated payment information, supplied by the
Provider, to the Service for posting to the
tax account(s) of the taxpayer(s).
.07 The Service will deem an FTD or
FTP made by an ACH debit entry to have
been made at the time of the debit.
.08 When a timely ACH debit entry
cannot be made, a Provider may instruct
the Financial Agent to complete the trans-
action at the next opportunity to submit an
ACH debit entry. The Provider may also
use an ACH credit entry or an FTA trans-
action. If a taxpayer is not required to use
EFT for FTDs, the Provider may, to the ex-
tent permitted by regulations under § 6302,
remit the payment with the tax return to
which the payment relates. To avoid penal-
ties, the FTD or FTP must be received by
an appropriate means on or before the FTD
or FTP due date.
.09 The ACH Rules will govern ACH
debit entry returns and reversals.
SECTION 9. ACH CREDIT ENTRY
.01 If a Provider chooses the ACH
credit entry remittance method to make
an FTD or FTP, the Provider may use any
financial institution capable of originating
an ACH credit entry.
.02 For each TIN used in making ACH
credit entries through a financial institu-
tion, the Provider may request that the fi-
2012–34 I.R.B.276August 20, 2012

nancial institution originate a prenotifica-
tion ACH credit.
.03 To initiate a timely ACH credit en-
try, a Provider must take into account the
financial institution’s deadline for origi-
nating an ACH credit entry.
.04 When a timely ACH credit entry
cannot be made, a Provider may instruct
the financial institution to complete the
transaction at the next opportunity to sub-
mit an ACH credit entry. The Provider
may also use an FTA transaction. A Bulk
Provider may initiate an ACH debit en-
try. However, a Batch Provider may ini-
tiate an ACH credit entry only if the tax-
payer is enrolled for the ACH debit remit-
tance method. If a taxpayer is not required
to use EFT for FTDs, the Provider may,
to the extent permitted by regulations un-
der § 6302, remit the payment with the tax
return to which the payment relates. To
avoid penalties, the FTD or FTP must be
received by an appropriate means on or be-
fore the FTD or FTP due date.
.05 The Financial Agent will receive
and process the ACH credit entry pay-
ment information. The Financial Agent
will compare the payment information for
the transaction with the taxpayer’s enroll-
ment record. If they match, the Financial
Agent will send the payment information
to the Service for posting to the taxpayer’s
tax account.
.06 If the Financial Agent cannot iden-
tify the taxpayer, the ACH credit entry will
be returned to the originating financial in-
stitution.
.07 Failure to provide correct, com-
plete, and properly formatted payment
information may cause an ACH credit
entry to be returned. In the event of a
return, a Provider may instruct the finan-
cial institution to submit a corrected ACH
credit entry at the next opportunity to sub-
mit an ACH credit entry. The Provider
may also use an FTA transaction. A Bulk
Provider may initiate an ACH debit entry.
However, a Batch Provider may initiate
an ACH debit entry only if the taxpayer
is enrolled for the ACH debit remittance
method. If a taxpayer is not required to
useEFTPSforFTDs,theProvidermay,to
the extent permitted by regulations under
§ 6302, remit the payment with the tax
return to which the payment relates. To
avoid penalties, the FTD or FTP must be
received by an appropriate means on or
before the FTD or FTP due date.
.08 An ACH credit entry that is not re-
turned or reversed will be deemed made at
the time that the funds are paid into the ap-
propriate Treasury Department account.
.09 The ACH Rules will govern ACH
credit entry returns and reversals.
SECTION 10. FEDERAL TAX
APPLICATION TRANSACTION
.01 A Provider may use an FTA transac-
tion to make an FTD or FTP. The Provider
should contact the financial institution
through which the FTA payment will be
made to determine if the financial institu-
tion is capable of making an FTA payment.
.02 A Bulk Provider may use a bulk
FTAtransactiontomakeFTDsorFTPs.
The Bulk Provider should contact the fi-
nancial institution through which the bulk
FTA payment will be made to determine if
the financial institution is capable of mak-
ing a bulk FTA payment.
.03 If a Provider uses a single FTA
transaction, the transfer of funds and the
transmission of the related payment infor-
mation occur together. If a Bulk Provider
uses a bulk FTA transaction, the transmis-
sion of the payment information precedes
the related transfer of funds, both of which
occur on the same day.
.04 The Service generally will deem an
FTA payment to have been made on the
date the payment is received by the FRB.
A Provider should contact the financial in-
stitution through which the FTA payment
will be made to determine the deadline for
initiating FTA payments for a particular
day. FTA payments received by the FRB
after the deadline set forth in the Treasury
Financial Manual, Volume IV (IV TFM),
will not be accepted. Currently, the dead-
line in IV TFM is 2:00 p.m. Administra-
tive FRB Head Office Local Zone Time.
If a payment is not accepted, the Provider
must reoriginate the payment using an FTA
transaction or any other permissible remit-
tance method.
.05 Additional FTA information may
be found in the sections on Same-Day
Payments in the Implementation Guide
for EFTPS Bulk Providers and the EFTPS
Payment Instruction Booklets for busi-
nesses and onwww.eftps.gov.
SECTION 11. PROOF OF PAYMENT
.01 For an ACH debit or credit entry
posted to the taxpayer’s account in a fi-
nancial institution, a statement prepared by
that financial institution showing a trans-
fer (that is, a decrease to the taxpayer’s ac-
count balance) will be accepted as proof of
payment if the statement:
(1) shows the amount and the date of the
transfer; and
(2) identifies the U.S. Government as
the payee (for example, “USA tax”).
.02 For an FTA payment posted to the
taxpayer’s account in a financial institu-
tion, a taxpayer may request that its finan-
cial institution obtain a statement from the
FRB that executed the transfer. This state-
ment will be accepted as proof of payment
if the statement:
(1) shows the amount and the date of the
transfer; and
(2) identifies the U.S. Government as
the payee (for example, “USA tax”).
.03 For purposes of this section, state-
ments prepared by a financial institution
include statements prepared by a third
party that is contractually obligated to
prepare statements for the financial insti-
tution.
.04 A taxpayer’s payment to a Provider
(including a subsidiary’s payment to its
parent) is not a payment of tax by the tax-
payer. Therefore, a statement prepared by
the taxpayer’s financial institution show-
ing a transfer from the taxpayer’s account
to the Provider as payee is not proof of pay-
ment. Further, a statement prepared by the
Provider’s financial institution showing a
transfer of funds from the Provider’s ac-
count to the U.S. Government is not proof
of payment because the payment may not
have been made on behalf of the taxpayer.
The taxpayer will need the acknowledge-
ment number for an FTD or FTP made
from the Provider’s account to establish
that the FTD or FTP was made on behalf of
the taxpayer. The acknowledgement num-
ber allows the Service to trace the pay-
ment. The Provider has the acknowledge-
ment number or may obtain it from the Fi-
nancial Agent.
SECTION 12. REFUNDS
NorefundsofFTDsorFTPswillbe
made through EFTPS. However, a refund
request may be made using existing tax re-
August 20, 20122772012–34 I.R.B.

fund procedures. If a taxpayer’s error re-
sults in a substantial hardship, the taxpayer
may contact the Service at (800) 829–1040
for assistance.
SECTION 13. DISASTER
PROCEDURES
.01 A taxpayer’s ability to make FTDs
and FTPs timely may be affected by the
time, severity, and extent of a major dis-
aster. In such circumstances, the Service
provides relief through the nonassertion or
abatement of certain penalties. The Ser-
vice publicizes the relief for a particular
disaster area through the publication of a
News Release, Notice, or Announcement.
Generally, the Service identifies the tax-
payers who qualify for this disaster relief.
.02 If a disaster affects a Provider, the
Provider should provide the Service with
the information necessary to identify those
FTDs and FTPs of taxpayers outside the
disaster area that were or will be late due
to the disaster. The Service will then de-
termine if the nonassertion or abatement of
certain penalties or interest is appropriate.
.03 In addition, if a Bulk Provider’s pri-
mary processing system is affected by a
disaster and the Bulk Provider’s backup
processing system fails, the Bulk Provider
may use an emergency bulk FTA transac-
tion under which the transfer of funds oc-
curs before the transmission of the related
payment information.
SECTION 14. RESPONSIBILITIES OF
APROVIDER
.01 Each Provider must:
(1) comply with this revenue procedure
and the applicable implementation guide
(Implementation Guide for EFTPS Batch
Providers or Implementation Guide for
EFTPS Bulk Providers);
(2) maintain a high degree of integrity,
compliance, and accuracy;
(3) ensure that FTDs and FTPs are ac-
curately and timely made;
(4) ensure the security of all transmitted
information; and
(5) ensure that after a disabling event
the Provider is able to operate its Batch
Provider or Bulk Provider programs with
minimal interruption (generally, less than
24 hours).
.02 A Provider that is not the taxpayer
must:
(1) retain copies of each Authorization
and each enrollment at its principal place
of business for 4 years after the prescribed
due date of the last return to which the
FTD or FTP relates, unless the Provider is
otherwise notified by the Service or unless
the instructions to the Form 8655 or any
successor form provide otherwise;
(2) retain any payment information (in-
cluding acknowledgement numbers) at its
principal place of business for 4 years af-
ter the prescribed due date of the return to
which the FTD or FTP relates, unless the
Provider is otherwise notified by the Ser-
vice. A shorter retention period for pay-
ment information may be substituted for
this “4-year” retention period, provided the
Provider notifies the taxpayer in writing
that the Provider will not be retaining the
payment information after the shorter re-
tention period and the Provider gives such
information to the taxpayer. The shorter
retention period must be at least 90 days;
and
(3) advise the taxpayer to enroll itself
separately in EFTPS. If the Provider is
not authorized to make all the taxpayer’s
required FTDs and FTPs, the taxpayer’s
separate enrollment will allow the tax-
payer to make its own FTDs and FTPs
through EFTPS. To enroll separately, a
taxpayer must submit a completed Form
9779,EFTPS Business Enrollment Form,
or Form 9783,EFTPS Individual En-
rollment Form, to the EFTPS Enrollment
Processing Center at the address provided
in the applicable form’s instructions. See
Rev. Proc. 97–33 andwww.eftps.govfor
more information.
.03 A Provider that is the taxpayer must:
(1) absent a specific retention period
prescribed by regulations, retain the pay-
ment information and any supporting ma-
terial at its principal place of business for
as long as the contentsthereof may become
material in the administration of any inter-
nal revenue law; and
(2) retain copies of each enrollment at
its principal place of business for 4 years
after the prescribed due date of the return
to which the last FTD or FTP relates, un-
less otherwise notified by the Service.
SECTION 15. ADVERTISING
STANDARDS
.01 A Provider must comply with the
advertising and solicitation provisions of
31 C.F.R. Part 10 (Treasury Department
Circular No. 230). Circular 230 prohibits
participation in the use of any form of
public communication containing a false,
fraudulent, misleading, deceptive, unduly
influencing, coercive, or unfair statement
or claim.
.02 A Provider must adhere to all rele-
vant federal, state, and local consumer pro-
tection laws that relate to advertising and
soliciting.
.03 A Provider must not use the Ser-
vice’s name, “Internal Revenue Service”
or “IRS,” within a firm’s name.
.04 A Provider must not use improper
ormisleadingadvertisinginrelationto
EFTPS.
.05 Advertising materials must not
carry the Service, FMS, or other Treasury
Seals.
.06 If a Provider uses radio or television
broadcasting to advertise, the broadcast
must be pre-recorded. The Provider must
keep a copy of the pre-recorded advertise-
ment for a period of at least 36 months
from the date of the last transmission or
use.
.07 If a Provider uses direct mail,
e-mail, or fax communications to adver-
tise, the Provider must retain a copy of
the actual mailing, e-mail, or fax, along
with a list or other description of the firms,
organizations, or individuals to whom
the communication was mailed, faxed, or
otherwise distributed for a period of at
least 36 months from the date of the last
mailing, fax, or distribution.
.08 If a Provider uses a Web site or print
media (including newspapers, magazines,
or yellow pages) to advertise, the Provider
must retain a copy of the advertising for a
period of at least 36 months from the date
of the last posting or publication.
.09 Acceptance in the Batch Provider or
Bulk Provider programs is not an endorse-
ment by the Service, FMS, or the Treasury
Department of the quality of the services
provided by the Provider.
SECTION 16. REASONS FOR
SUSPENSION
.01 The Service reserves the right
to suspend a Provider from the Batch
Provider or Bulk Provider programs for
the following reasons (this list is not all-in-
clusive):
2012–34 I.R.B.278August 20, 2012

(1) failing to submit payment informa-
tion in accordance with this revenue pro-
cedure and the applicable implementation
guides;
(2) failing to maintain and make avail-
able the required records for the period
specified in section 14 of this revenue pro-
cedure;
(3) submitting payment information on
behalf of taxpayers for which the Service
did not receive Authorizations;
(4) failing to abide by the advertising
standards in section 15 of this revenue pro-
cedure;
(5) failing to cooperate with the Ser-
vice’s efforts to monitor Providers and in-
vestigate abuse in the Batch Provider or
Bulk Provider programs; or
(6) generating significant complaints
about the Provider’s performance in the
Batch Provider or Bulk Provider pro-
grams.
.02 If the Service informs a Provider
that a certain action is a reason for suspen-
sion and the action continues, the Service
may send the Provider a notice proposing
suspension of the Provider from the Batch
Provider or Bulk Provider program. How-
ever, a notice proposing suspension may
be sent without a warning if the Provider’s
action indicates an intentional disregard
of rules. A notice proposing suspension
will describe the reason(s) for the proposed
suspension, and indicate the length of the
suspension and the conditions that need to
be met before the suspension will termi-
nate.
SECTION 17. ADMINISTRATIVE
REVIEW PROCESS FOR PROPOSED
SUSPENSION
.01 A Provider that receives a notice
proposing suspension from the Batch
Provider or Bulk Provider program, as
described in section 16.02 of this revenue
procedure, may request an administrative
review prior to the proposed suspension
taking effect.
.02 The request for an administrative re-
view must be in writing and contain de-
tailed reasons, with supporting documen-
tation, for withdrawal of the proposed sus-
pension.
.03 The written request for an admin-
istrative review and a copy of the notice
proposing suspension must be delivered to
the address designated in the notice within
30 days of the effective date on the notice.
.04 After consideration of the written
request for an administrative review, the
Service will either issue a suspension letter
or notify the Provider in writing that the
proposed suspension is withdrawn.
.05 If a Provider receives a suspension
letter, the Service’s subsequent determina-
tion of whether a reason for suspension has
been corrected is not subject to administra-
tive review or appeal.
.06 Failure to submit a written request
for an administrative review within the
30-day period described in section 17.03
of this revenue procedure irrevocably ter-
minates the Provider’s right to an adminis-
trative review of the proposed suspension,
and the Service will issue a suspension let-
ter.
SECTION 18. EFFECT OF
SUSPENSION
.01 The Provider’s suspension will con-
tinue for the length of time specified in the
suspension letter, or until the conditions
for terminating the suspension have been
met, whichever is later.
.02 After suspension, a Provider may
submit an FTD under the Batch Provider
or Bulk Provider program only if the FTD
is due not more than 30 days after the effec-
tive date on the suspension letter. No FTPs
maybesubmittedbytheProviderunder
the Batch Provider or Bulk Provider pro-
grams during the suspension period.
.03 A Provider must provide written
notification of a suspension from the Batch
Provider or Bulk Provider programs to
each taxpayer in the program(s) within
10 days from the date on the suspension
letter. This notification must be provided
even though the Provider may believe
that the Provider will be able to meet the
conditions for terminating the suspension
within the 30-day period provided in sec-
tion 19.02 of this revenue procedure.
.04 A Provider will be able to sub-
mit payment information under the Batch
Provider or Bulk Provider programs with-
out re-registering forthose programs after:
(1) the stated suspension period expires;
and
(2) the reason(s) for suspension is cor-
rected.
SECTION 19. APPEAL OF
SUSPENSION
.01 If a Provider receives a suspension
letter from the Service, the Provider is en-
titled to appeal, by written protest, to the
Service. The written protest must be deliv-
ered to the address designated on the sus-
pension letter. During the appeals process,
the suspension remains in effect.
.02 The written protest must be received
by the Service within 30 days of the effec-
tive date on the suspension letter. The writ-
ten protest must contain detailed reasons,
with supporting documentation, for with-
drawal of the suspension.
.03 Failure to appeal within the 30-day
period described in section 19.02 of this
revenue procedure irrevocably terminates
the Provider’s right to appeal the suspen-
sion under section 19.01 of this revenue
procedure.
SECTION 20. ADDITIONS TO TAX
AND PENALTIES
.01 Section 6656 imposes a failure-to-
deposit penalty if a taxpayer does not make
a timely FTD, unless such failure is due
to reasonable causeandnotduetowill-
ful neglect. See Rev. Rul. 94–46, 1994–2
C.B. 278. Absent reasonable cause, a tax-
payer that is required to deposit federal
taxes by EFT is subject to the failure-to-de-
posit penalty if FTDs are made by means
other than EFT (for example, submitting a
paper check with a return). See Rev. Rul.
95–68, 1995–2 C.B. 272.
.02 Section 6655 imposes an addition to
tax for underpayments of estimated tax by
a corporation, private foundation, tax-ex-
empt organization, or qualified settlement
fund.
.03 Section 6651 imposes an addition
to tax for failure to pay if a taxpayer does
not make a timely FTP, unless such failure
is due to reasonable cause and not due to
willful neglect.
SECTION 21. FORMS,
PUBLICATIONS, IMPLEMENTATION
GUIDES, AND ADDITIONAL
INFORMATION
.01 A Provider may obtain copies of
this revenue procedure, enrollment forms
(Forms 9779 and 9783), implementation
August 20, 20122792012–34 I.R.B.

guides, payment instruction booklets, reg-
istration letters, and additional information
on EFTPS by calling EFTPS Customer
Service at (800) 555–4477.
.02 A Provider may obtain enrollment
forms and Authorizations (Forms 8655)
by calling the IRS Distribution Center at
(800) TAX–FORM ((800) 829–3676).
.03 A Provider may obtain information
on the submission of Authorizations by ac-
cessing the Reporting Agents File web-
page atwww.irs.gov.
SECTION 22. EFFECT ON OTHER
DOCUMENTS
This revenue procedure modifies and
supersedes Rev. Proc. 98–32, 1998–1
C.B. 935.
SECTION 23. EFFECTIVE DATE
.01In general.This revenue procedure
is effective November 19, 2012.
.02Grandfather rule.A power of attor-
ney on Form 2848,Power of Attorney and
Declaration of Representative,orother
document that satisfies the requirements
of § 601.503(a) of the Statement of Pro-
cedural Rules, that was submitted to the
Service on or before April 27, 1998, will
be treated as an Authorization for purposes
of this revenue procedure, even though it
doesnotcomplywithsection6.02ofthis
revenue procedure.
SECTION 24. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Office
of Management and Budget in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under control number
1545–1601.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
control number.
The collections of information in this
revenue procedure are in sections 5, 6,
7, 8, 11, 13, 14, and 15 of this revenue
procedure. This information is required
to implement EFTPS, and verify that tax-
payers have met their obligations to pay
their taxes and make FTDs by EFT. This
information will be used to identify per-
sons paying taxes and making FTDs on
behalf of taxpayers and to credit taxpay-
ers’ tax accounts for FTDs and FTPs made
through EFT. The collections of informa-
tion are mandatory. The likely respondents
are business or other for-profit institutions.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 25. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Nathan Rosen of the Office of
Associate Chief Counsel (Procedure and
Administration). For assistance regarding
matters described in this revenue proce-
dure, please call EFTPS Customer Service
at (800) 555–4477.
Use this Revenue Procedure to prepare Tax Year2012and prior year information returns for submission to Internal Revenue Service
(IRS) using electronic filing.
Caution to filers:
This Revenue Procedure may not be revised every year. Updates will be printed as needed in the Internal Revenue Bulletin.
General Instructions for Form 8955-SSA are revised every year. Be sure to consult current instructions when preparing Form
8955-SSA.
Please read this publication carefully. Persons or businesses required to file information returns electronically may be subject to
penalties for failure to file or include correct information if the instructions in this Revenue Procedure are not followed.
IMPORTANT
NOTES:
The IRS internet connection for filinginformation returns electronically ishttp://fire.irs.gov. The Filing Information Returns
Electronically (FIRE) systemand the test systemwill be down from 6 p.m. ETDec. 14, 2012, through Jan. 02, 2013for yearly
updates. In addition, the FIRE system may be down every Wednesday from 2:00 a.m. to 5:00 a.m. ET for programming updates.
The FIRE system will not be available for submissions during these times.
Form 4419,Application for FilingInformation Returns Electronically (FIRE), is subject to review before the approval to transmit
electronically is granted. IRS may require additional documentation. If a determination is made concerning the validity of the
documents transmitted electronically, IRS has the authority to revoke the Transmitter Control Code (TCC) and terminate the
release of the files.
The FIRE system does not provide fill-in forms for filing information returns.
2012–34 I.R.B.280August 20, 2012

Rev. Proc. 2012–34
TABLE OF CONTENTS
Part A. General
SEC. 1. PURPOSE................................................................................................. 282
SEC. 2. WHAT’S NEW FOR TAX YEAR 2012......................................................................... 282
Reminders................................................................................................ 282
SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, INFORMATION RETURNS BRANCH (IRB).................. 282
SEC. 4. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS ELECTRONICALLY
(FIRE)
.................................................................................................... 283
SEC. 5. DUE DATES............................................................................................... 284
SEC. 6. AMENDED RETURNS...................................................................................... 284
SEC. 7. DEFINITION OF TERMS................................................................................... 285
SEC. 8. STATE ABBREVIATIONS................................................................................... 286
SEC. 9. FOREIGN COUNTRY CODES............................................................................... 287
Part B. Electronic Filing Specifications
SEC. 1. GENERAL................................................................................................ 290
SEC. 2. ELECTRONIC FILING APPROVAL PROCEDURE............................................................. 290
SEC. 3. TEST FILES............................................................................................... 290
SEC. 4. ELECTRONIC SUBMISSIONS............................................................................... 291
SEC. 5. PIN REQUIREMENTS...................................................................................... 291
SEC. 6. ELECTRONIC FILING SPECIFICATIONS.................................................................... 291
SEC. 7. CONNECTING TO THE FIRE SYSTEM....................................................................... 292
SEC. 8. COMMON SUBMISSION ERRORS AND PROBLEMS.......................................................... 294
Part C. Record Format Specifications and Record Layouts
SEC. 1. TRANSMITTER “T” RECORD............................................................................... 295
SEC. 2. SPONSOR “S” RECORD.................................................................................... 298
SEC. 3. ADMINISTRATOR “A” RECORD............................................................................ 302
SEC. 4. PARTICIPANT “P” RECORD................................................................................ 305
SEC. 5. END OF TRANSMISSION “F” REC
ORD
....................................................
.................. 309
Part A. General
Revenue Procedures are generally revised periodically to reflect legislative and form changes. Comments concerning this Revenue
Procedure, or suggestions for making it more helpful, can be addressed to:
Internal Revenue Service
Attn: Information Returns Branch
August 20, 20122812012–34 I.R.B.

230 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
Sec. 1. Purpose
.01The purpose of this Revenue Procedure is to provide the specifications for filing Form 8955-SSA,Annual Registration State-
ment Identifying Separated Participants with Deferred Vested Benefits, with Internal Revenue Service/Information Returns Branch
(IRS/IRB) electronically through the Filing Information Returns Electronically (FIRE) system. This Revenue Procedure must be used
to prepare current and prior year informationreturns filed beginning January 1, 2013, and received through FIRE by December 31,
2013.
.02Electronic reporting of Form 8955-SSA eliminates the need for electronic filers to submit paper documents to the IRS. Do not
send copies of the paper forms to IRS for any forms filed electronically. This will result in duplicate filing.
.03Generally, the boxes on the paper Form 8955-SSA correspond with the fields used to file electronically; however, if discrep-
ancies occur, the instructions in this Revenue Procedure govern.
.04Refer to Part A, Sec. 7, for definitions of terms used in this publication.
.05The following instructions and publications provide more detailed filing procedures for certain information returns:
(a)Instructions for Form 8955-SSA,Annual Registration Statement Identifying Separated Participants with Deferred Vested
Benefits
(b)Publication 3609,Filing Information Returns Electronically (FIRE)
Sec. 2. What’s New for Tax Year 2012
.01Form 4419,Application for Filing Information Returns Electronically (FIRE), must be submitted at least 45 days before the
due date of the return(s) to allow IRS the minimum amount of time necessary to process and respond to applications.
.02Amended returns instructions in Part A, Section 6 have been modified to include information about the amended return indi-
cator.
.03Any file processedafter January 2, 2013, that receives a “Good, Not Released” status will be held for ten calendar days. The
file will automatically be released after ten calendar days unless thefiler contacts IRS within this timeframe. File status descriptions
in Part B, Section 7 have been revised and expanded.
.04Reporting criteria for Separated Participants, positions 552–559,and Voluntary Separated Participants, positions 560–567, in
the ‘S’ record have been clarified.
.05Instructions for reporting Participant’s Annuity Type Code, position 100, and Participant Payment Frequency Code, positions
101, in the ‘P’ record have changed.
Reminders
.01Editorial changes have been made throughout this publication. Please read the entire publication carefully.
.02In this publication, all pertinent changes for Tax Year 2012 are emphasized by the use ofitalics. Portions of text that require
special attention are in boldface text.
Sec. 3. Where To File and How to Contact the IRS, Information Returns Branch (IRB)
.01All information returns filed electronically are processed at IRS. General inquiries concerning the filing of Forms 8955-SSA
should be sent to the following address:
Internal Revenue Service
Information Returns Branch
Attn: 8955-SSA Reporting
230 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
.02To request an extension to file Form 8955-SSA, submit a Form 5558,ApplicationforExtensionofTimetoFileCertainEm-
ployee Plan Returns, before the due date of the Form 8955-SSA to the following address:
Internal Revenue Service Center
Ogden, UT 84201–0024
.03The telephone numbers and web addresses for electronic filing inquiries are:
2012–34 I.R.B.282August 20, 2012

Information Returns Branch
1–866–455–7438
Outside the U.S
. 1–304–263–8700
email at m
ccirp@irs.gov
Telecommunic
ationDevicefortheDeaf(TDD)
1–304–579–4827
Fax
Within the U.S. 1–877–477–0572
Outside the U.S. 1–304–579–4105
Electronic Filing – FIRE system
Production URL— h
ttp://fire.irs.gov
Test URL— h
ttp://fire.test.irs.gov
Tax Exempt/Government Entities (TE/GE) Helpline
1–877–82
9–5500
To Obtain Forms
By phone —
1–800–TAX–FORM (1–800–829–3676)
I
RS.gov— Online Ordering for InformationReturns and Employer Returns
h
ttp://www.irs.gov/businesses/page/0,,id=23108,00.html
.04The current instructions for Form 8955-SSA have been included in Publication 4810 for the convenience of filers.
.05Requests for paper Forms 8955-SSA should be made by calling the IRS at1–800–TAX–FORM (1–800–829–3676)or by the
IRS Web Site atI
RS.gov/formspubs. File paper forms, schedules, statements, and attachments by sending them to the following
address:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201–0027
.06Filers should not contact IRB if they have received a penalty notice. Instead, filers that have questions about the penalty or
that wish to request an abatement of the penalty should follow the instructions provided in the penalty notice. Penalty notices contain
either an IRS representative’s name and/or telephone number for contact purposes, or an address to which filers may contact the IRS
in writing. IRB does not issue penalty notices and does not have the authority to abate penalties. For additional penalty information,
refer to the Penalty section of the current Instructions for Form 8955-SSA.
.07Electronic Products and Services Support, Information Returns Branch, Customer Service Section (IRB/CSS), answers elec-
tronic, paper filing, and tax law questions from the payer community relating to the correct preparation and filing of business informa-
tion returns (Forms 1096, 1097, 1098, 1099, 5498, 8027, and W-2G). IRB/CSS also answers questions relating to the electronic filing
of Forms 8955-SSA. Call 1–866–455–7438 for specific information on 8955-SSA filing. Filers with inquiries regarding tax law issues
and paper filing of Form 8955-SSA should call the TE/GE Help Line at 877–829–5500. Assistance is available year-round to payers,
transmitters, and employers nationwide, Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern Time, by calling 1–866–455–7438
or by email at m
ccirp@irs.gov. Do not include social security numbers (SSNs) or Employer identification numbers (EINs) in email
correspondence. Electronic mail is not secure and the information could be compromised. The Telecommunications Device for the
Deaf (TDD) toll number is 304–579–4827. Call as soon as questions arise to avoid the busy filing seasons at the end of January,
February, and March.
Sec. 4. Form 4419, Application for Filing Information Returns Electronically (FIRE)
.01Transmitters (See Part A, Section 7 for definition) are required to submit Form 4419,Application for Filing Information Returns
Electronically (FIRE), to request authorization to file Form 8955-SSA with IRS. A single Form 4419 may be filed. IRS encourages
transmitters who file for multiple plan administrators to submit one application and to use the assigned Transmitter Control Code
(TCC) for all. Form 4419 may be faxed to IRS within the U.S. at 877–477–0572 or outside the U.S. at 304–579–4105. Plan adminis-
trators may also choose to submit Form 8955-SSA on paper. IRS may require additional documentation. If a determination is made
concerning the validity of the documents transmitted electronically, IRS has the authority to revoke the Transmitter Control Code
(TCC) and terminate the release of the files.
August 20, 20122832012–34 I.R.B.

Note:In order to file additional form types, a different TCC must be assigned. Submit another Form 4419 for filing Forms 1097,
1098, 1099, 3921, 3922, 5498 and W-2G, Form 1042-S, and Form 8027. See the back of Form 4419 for detailed instructions.
.02Form 4419 may be submitted anytime during the year; however, it must be submitted to IRS at least 45 days before the due
date of the return(s) for currentyear processing. This will allow IRS the minimum amount of time necessary to process and respond
to applications.
.03Electronically filed returns may not be submitted to IRS until the application has been approved. Please read the instructions
on the back of Form 4419 carefully. A Form 4419 is included in Publication 4810 for the filer’s use. This form may be photocopied.
Additional forms may be obtained by calling 1–800–TAX–FORM (1–800–829–3676). The form is also available at I
RS.gov.
.04Upon approval, a five-character alphanumeric Transmitter Control Code (TCC) beginning with the digit “6”, to be used only
for Form 8955-SSA, will be assigned and included in an approvalletter. The TCC must be coded in the Transmitter “T” Record. If a
transmitter uses more than one TCC to file, each TCC must be reported on a separate electronic transmission.
.05If any of the information (name, TIN or address) on the Form4419 changes, please notify IRS in writing so the IRS database
can be updated. The transmitter should include the TCC in all correspondence.
.06Please make sure electronic files are submitted using the correct TCC. The FIRE system creates a filename that includes the
TCC and a four-digit sequence number. All files submitted through the FIRE system will have a unique filename assigned.
.07If a plan administrator’s files are prepared by a service bureau, it may not be necessary to submit an application to obtain a
TCC. Some service bureaus will produce files, code their own TCC on the file, and send it to IRS for the plan administrator. Other
service bureaus will prepare electronic files for a plan administrator to submit directly to IRS. These service bureaus may require the
plan administrators to obtain a TCC to be coded in the Transmitter “T” Record. The plan administrator should contact their service
bureaus for further information.
.08Once a transmitter is approved to file electronically, it is not necessary to reapply each year unless:
(a)The plan administrator has discontinued filing electronically for two consecutive years. The TCC may have been reassigned
by IRS. Plan administrators who are aware that the TCC assigned will no longer be used are requested to notify IRS so
these numbers may be reassigned; or
(b)The plan administrator’s electronic files were transmitted in the past by a service bureau using the service bureau’s TCC,
but now the plan administrator has computer equipment compatible with that of IRS and wishes to prepare their own files.
The plan administrator must request a TCC by filing Form 4419.
.09Submit one Form 4419 per TIN. If a single transmitter needs to transmit more than 9,999 files in a single calendar year, contact
IRS toll-free at 866–455–7438. Only one TCC will be issued per TIN unless the filer has checked the application for the following
forms in addition to the Form 8955-SSA: Forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, 8027 and 1042-S. A separate TCC will
be assigned for these forms.
.10Approval to file does not imply endorsement by IRS of any computer software or of the quality of tax preparation services
provided by a service bureau or software vendor.
Sec. 5. Due Dates
.01The due dates for filing paper returns with IRS also apply to electronic filing of Form 8955-SSA.
.02Form 8955-SSA filed electronically must be submitted to IRSon or before the due date. The due date for Form 8955-SSA is
the end of the 7th month after the end of the plan year.
.03An extension may be requested by filing Form 5558 before the due date of the Form 8955-SSA. Mail Form 5558 to:
Internal Revenue Service Center
Ogden, UT 84201–0024
.04See the instructions to Form 5558 for specific guidance.
.05If any due date falls on a Saturday, Sunday or legal holiday, the return or statement is considered timely if filed or furnished on
the next day that is not a Saturday, Sunday, or legal holiday.
Sec. 6. Amended Returns
.01If a Form 8955-SSA was filed with the IRS and an error was discovered with the file after IRS accepted the file; an amended
Form 8955-SSA must be sent.
.02Amended returns should be filed as soon as possible.An amended return should only be submitted to correct a file that pre-
viously received a “Good” status (see Part B, Section 7 for a description of file status.)When a record is incorrect, all fields on that
record must be completed with the correct information. Resubmit the entire file again with the erroneous information corrected as an
amended return.Enter a “1” (Amended Return Indicator) in position 34 of the Sponsor “S” record to identify the submission as an
amended submission.
.03Prior year data, original and amended returns, must be filed according to the requirements of this Revenue Procedure. If sub-
mitting prior year amended returns, use the record format for the current year and submit in a separate transmission. However, use
2012–34 I.R.B.284August 20, 2012

the actual year designation of the amended return in Field Positions 2–5 of the “T” Record. A separate electronic transmission must
be made for each plan year.
.04All paper returns, whether original or amended, must be filed with:
Department of the Treasury Service Center
Internal Revenue Service
Ogden, UT 84201–0024
Sec. 7. Definition of Terms
ElementDescription
Amended ReturnAn amended return is an information return submitted by the transmitter to amend an information return
that was previously submitted and processed by IRS, but contained erroneous information.
Employer Identification
Number (EIN)
A nine-digit number assigned by IRS for Federal tax reporting purposes.
Electronic FilingSubmission of information returns electronically by the Internet. See Part B of this publication for
specific information on electronic filing.
FileFor purposes of this Revenue Procedure, a file consists of one Transmitter “T” Record at the beginning
of the file, a Sponsor “S” Record, followed by the Administrator “A” Record, and Participant “P”
Record (s) ending with the last record on the file, and the End of Transmission “F” Record. Nothing
should be reported after the End of Transmission “F” Record.
FilerPerson (may be plan administrator, plan sponsor and/or transmitter) submitting information returns
to IRS.
Information ReturnThe vehicle for a plan administrator to submit required information to IRS concerning recipients.
ParticipantGenerally, for these purposes, any individual entitled to receive benefits under a plan.
Plan AdministratorThe person designated by the plan, or in the absence of a designation, as either (1) the employer (in the
case of the plan maintained by a single employer) or(2) the association, committee, or joint board of
trustees who maintain the plan (in case of a plan maintained by more than one employer).
Record
A record contains specific information for the filing of Form 8955-SSA. Records include the
Transmitter “T” Record, the Sponsor “S” Record, theplan Administrator “A” Record, the Participant
“P” Record and the “F” End of Transmission Record. All records are a fixed length of 750 positions.
Service BureauPerson or organization with whom the plan administrator has a contract to prepare and/or submit
information return files to IRS. A parent company submitting data for a subsidiary is not considered a
service bureau.
Social Security Number
(SSN)
A nine-digit number assigned by Social Security Administration to an individual for wage and tax
reporting purposes.
Special CharacterAny character thatis not a numeric, an alpha, or a blank.
SponsorRefers to the sponsor of the plan, generally one of the following (1) the employer (in case of a plan
maintained by a single employer), (2) the employee organization (in case of a plan maintained by an
employee organization), or (3) the association, committee, or joint board of trustees of the parties who
maintain the plan (in the case of a plan maintained jointly by one or more employers and one or more
employee organizations, or by two or more employers).
Taxpayer Identification
Number (TIN)
Refers to either an employer identification number (EIN) or a social security number (SSN).
TransmitterRefers to the person or organization submitting file(s) electronically. Thetransmitter may be the plan
administrator or agent of the plan administrator.
August 20, 20122852012–34 I.R.B.

ElementDescription
Transmitter Control
Code (TCC)
A five-character alphanumeric number assigned by IRS to the transmitter prior to filing electronically.
An application Form 4419 must be filed with IRS to receive this number. This number is inserted in
the Transmitter “T” Record (field positions 16–20) of the file and must be present before the file
can be processed. Transmitter Control Codes assigned to Form 8955-SSA transmitters will always
begin with “6”.
VendorVendors include service bureaus that produceinformation return fileselectronically for plan
administrators. Vendors also include companies that provide software for those who wish to produce
their own electronic files.
Sec. 8. State Abbreviations
.01The following table provides state and U.S. territory abbreviations that are to be used when developing the state code portion
of address fields.
2012–34 I.R.B.286August 20, 2012

Table 1: State & U.S. Territory Abbreviations
StateCodeStateCodeStateCode
AlabamaALLouisianaLAOklahomaOK
AlaskaAKMaineMEOregonOR
American SamoaASMarylandMDPennsylvaniaPA
ArizonaAZMassachusettsMAPuerto RicoPR
ArkansasARMichiganMIRhode IslandRI
CaliforniaCAMinnesotaMNSouth Carolin
a
SC
ColoradoCOMississippiMSSouth DakotaSD
ConnecticutCTMissouriMOTennesseeTN
DelawareDEMontanaMTTexasTX
District of ColumbiaDCNebraskaNEUtahUT
FloridaFLNevadaNVVermontVT
GeorgiaGANew Hampsh
ire
NHVirginiaVA
GuamGUNew JerseyNJU.S. Virgin IslandsVI
HawaiiHINew MexicoNMWashingtonWA
IdahoIDNew YorkNYWest VirginiaWV
IllinoisILNorth CarolinaNCWisconsinWI
IndianaINNorth DakotaNDWyomingWY
IowaIANo. Mari
ana Islands
MP
KansasKSOhioOH
KentuckyKY
.02When
reporting APO/FPO addresses use the following format:
EXAMPLE:
Recipient NamePVT Willard J. Doe
Mailing AddressCompany F, PSC Box 100
167 Infantry REGT
Recipient CityAPO (or FPO)
Recipient StateAE, AA, or AP*
Recipient ZIP Code098010100
*AE is the designation for ZIP codes beginning with 090–098, AA for ZIP code 340, and AP for ZIP
codes 962–966.
Sec. 9. Foreign Country Codes
.01The following table provides the Foreign Country Codes that are to be used when developing the country code portion of
address fields.
August 20, 20122872012–34 I.R.B.

Table 2: Foreign Country Codes
StateCodeStateCodeStateCode
AFAfghanistanGZGaza StripNENiue
ALAlbaniaGGGeorgiaNFNorfolk Island
AGAlgeriaGMGermanyCQNorthern Mariana Island
AQAmerican SamoaGHGhanaNONorway
ANAndorraGIGibraltarMUOman
AOAngolaGOGlorioso Isl
ands
OCOther Countr
ies
AVAnguillaGRGreecePKPakistan
AYAntarcticaGLGreenlandLQPalmyra Atoll
ACAntigua and BarbudaGJGrenadaPSPalau
ARArgentinaGPGuadeloupePMPanama
AMArmeniaGQGuamPPPapua-New Guinea
AAArubaGTGuatemalaPFParacel Is
lands
ATAshmore and Cartier Islands GKGuernseyPAParaguay
ASAustraliaGVGuineaPEPeru
AUAustriaPUGuinea-BissauRPPhilippines
AJAzerbaijanGYGuyanaPCPitcairn Islands
BFBahamasHAHaitiPLPoland
BABahrainHM
Heard Island and McDonald
IslandsPOPortugal
FQBaker IslandsHOHondurasRQPuerto Rico
BGBanglad
esh
HKHong Kon
g
QAQatar
BBBarbadosHQHowland IslandREReunion
BSBassas da IndiaHUHungaryRORomania
BOBelarusICIcelandRSRussia
BEBelgiumINIndiaRWRwanda
BHBelizeIDIndonesiaWSSamoa and Western Samoa
BNBeni
n
IRIranSMSan M
arino
BDBermudaIZIraqTPSao Tome and Principe
BTBhutanEIIrelandSASaudi Arabia
BLBoliviaISIsraelSGSenegal
BKBosnia-HerzegovinaITItalySESeychelles
BCBotswanaJMJamaicaSLSierra Leone
BVBo
uvet Island
JNJa
n Mayen
SNSi
ngapore
BRBrazilJAJapanLOSlovakia
IOBritish Indian Ocean Territory DQJarvis IslandSISlovenia
VIBritish Virgin IslandsJEJerseyBPSolomon Islands
BXBruneiJQJohnston AtollSOSomalia
BUBulgariaJOJordanSFSouth Africa
UVBurkina FasoJUJuan de Nova IslandSX
South Georgia and the South
Sandwich Islands
BMBurmaKZKazakhstanSPSpain
B
Y
B
urundi
K
E
K
enya
P
G
S
pratly Islands
CBCambodiaKQKingman ReefCESri Lanka
CMCameroonKRKiribatiSHSt. Helena
CACanadaKN
Korea, Democratic People’s
Republic of (North)SCSt. Kitts and Nevis
2012–34 I.R.B.288August 20, 2012

Table 2: Foreign Country Codes
StateCodeStateCodeStateCode
CVCape VerdeKSKorea, Republic of (South)STSt. Lucia Island
CJCayman IslandsKUKuwaitSBSt. Pierre and M
iquelon
CTCentral African RepublicKGKyrgyzstanVCSt. Vincent and the Grenadines
CDChadLALaosSUSudan
CIChileLGLatviaNSSuriname
CHChinaLELebanonSVSvalbard
KTChristmas IslandLTLesothoWZSwaziland
IPClipperton
Island
LILiberiaSWSweden
CKCocos (Keeling) IslandsLYLibyaSZSwitzerland
COColombiaLSLiechtensteinSYSyria
CNComorosLHLithuaniaTWTaiwan
CFCongo (Democratic Republic) LULuxembourgTITajikistin
CWCook IslandsMCMacauTZTanzania
CRCoral Sea
Islands
MKMacedoni
a
THThailand
VPCorsicaMAMadagascarTOTogo
CSCosta RicaMIMalawiTLTokelau
IVCote D’Ivoire (Ivory Coast)MYMalaysiaTNTonga
HRCroatiaMVMaldivesTDTrinidad and Tobago
CUCubaMLMaliTETromelin Island
CYCyprusMTMaltaTSTunisi
a
EZCzech RepublicIMMan, Isle ofTUTurkey
DADenmarkRMMarshall IslandsTXTurkmenistan
DJDjiboutiMBMartiniqueTKTurks and Caicos Islands
DODominicaMRMauritaniaTVTuvalu
DRDominican RepublicMPMauritiusUGUganda
TTEast
Timor
MFMayo
tte
UPUkra
ine
ECEcua
dor
MXMexi
co
TCUnit
ed Arab Emirates
EGEgyp
t
MQMidw
ay Islands
UK
Unit
ed Kingdom (England,
Nort
hern Ireland, Scotland,
and W
ales)
ESEl SalvadorMDMoldovaUCUnknown Country
EKEquatorial GuineaMNMonacoUYUruguay
EREritreaMGMongoliaUZUzbekistan
ENEstoniaMHMontserratNHVanuatu
ETEthiopiaMOMoroccoVTVatican City
EUEu
ropa Island
MZMo
zambique
VEVe
nezuela
FK
Fa
lkland Islands (Islas
Ma
lvinas)
WANa
mibia
VMVi
etnam
FOFa
roe Islands
NRNa
uru
VQVi
rgin Islands
FMFederated States of Micronesia BQNavassa IslandWQWake Island
FJFijiNPNepalWFWallis and Futuna
FIFinlandNLNetherlandsWEWest Bank
FRFranceNTNetherlands AntillesWIWestern Sahara
FGFrench GuineaNCNew CaledoniaYMYemen (Aden)
FPFrench PolynesiaNZNew ZealandYOYugoslavia
FS
French Southern and Antarctic
LandsNUNicaraguaZAZambia
August 20, 20122892012–34 I.R.B.

Table 2: Foreign Country Codes
StateCodeStateCodeStateCode
GBGabonNGNigerZIZimbabwe
GAThe GambiaNINigeria
Part B. Electronic Filing Specifications
Note 1:The FIRE system does not provide fill-in forms. Filers must program files according to the Record Layout Specifications
contained in this publication.For a list of software providers, log on to I
RS.govand type “Form 8955-SSA Resources” in the search
box and then select the “Approved Software Vendors Form 8955-SSA.”
Note 2:The FIRE system may be down every Wednesday from 2:00 a.m. to 5:00 a.m. ET for programming updates and will be down
for approximately two weeks at the end of December for annual updates. The FIRE system will not be available for submissions
during these times.
Sec. 1. General
.01Filing Forms 8955-SSA through the FIRE (Filing Information Returns Electronically) system (originals and amended) is the
method of filing for plan administrators who wish to file electronically instead of filing on paper.
.02All electronic filing of information returns are received at IRS by the FIRE system. To connect to the FIRE system, point the
browser to h
ttp://fire.irs.gov. The system is designed to support the electronic filing of information returns only.
.03The electronic filing of information returns is not affiliated with any other IRS electronic filing programs. Filers must obtain
separate approval to participate in each program. Only inquiries concerning electronic filing of information returns should be directed
to IRB.
.04Files submitted to IRS electronically must be in standard ASCII code. Do not send paper forms with the same information as
electronically submitted files. This would create duplicate reporting.
.05Current and prior year data must be submitted in separate electronic transmissions. Each plan yearmust be a separate electronic
file.
.06Filers who have prepared their information returns in advance of the due date can submit their file any time after the plan year
ends.
.07Plan administrators should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for
at least three years after the due date of the returns.
.08See Part C, Record Format Specifications and Record Layouts for the proper record format.
Sec. 2. Electronic Filing Approval Procedure
.01Filers must obtain a Transmitter Control Code (TCC) prior to submitting files electronically. Refer to Part A, Sec. 4, for
information on how to obtain a TCC.
.02Once a TCC is obtained, electronic filers create their own User ID, password and PIN (Personal Identification Number) and do
not need prior or special approval. See Part B, Sec.5, for more information about PIN requirements.
.03If a filer is submitting files for more than one TCC, it is notnecessary to create a separate User ID and password for each TCC.
.04For all passwords, it is the user’s responsibility to rememberthe password and not allow the password to be compromised.
Passwords are user created at first logon and must be eight alphanumeric characters containing at least one uppercase, one lowercase,
and one numeric. However, filers who forget their password or PIN, can call 1–866–455–7438 for assistance.The FIRE system
requires users to change passwords every 90 days or at the first logon attempt after that time period. Users can change passwords at
any time from the Main Menu. The previous 24 passwords cannot be used.
Sec. 3. Test Files
.01Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to
test hardware and software. Generally, testing is available between November 1 and February 15. To connect to the FIRE test system,
point the browser to h
ttp://fire.test.irs.gov.
.02IRS encourages first time electronic filers to submit a test.
.03The test file must consist of a sample of each type of record:
(a)Transmitter “T” Record (all fields marked required must include transmitter information)
(b)Sponsor “S” Record
(c)Administrator “A” Record
(d)Multiple Participant “P” Records (atleast 11 “P” Records per each “T” Record)
2012–34 I.R.B.290August 20, 2012

(e)End of Transmission “F” Record (See Part C for record formats.)
.04Use the Test Indicator “T” in Field Position 28 of the “T” Record to show this is a test file.
.05IRS will check the file to ensure it meets the specifications of thisRevenue Procedure. For current filers, sending a test file will
provide the opportunity to ensure software reflects any programming changes.
.06Filers who encounter problems while transmitting the electronic test file can contact IRS at 1–866–455–7438 for assistance.
.07Within five days after a file has been submitted, filers will be notified by email as to the acceptability of the file if a valid email
address is provided on the “Verify Your Filing Information” screen. If using email filtering software, configure software to accept
email from f
ire@irs.govand irs.e-helpmail@irs.gov. If the file is bad, the filer must return to http://fire.test.irs.govto determine what
errors are in the file by clicking on CHECK FILE STATUS.
If the results indicate:
(a)“Good” — The test file is good for Federal reporting.
(b)“Bad” — The test file contained errors. Click on the filename for a list of the errors. If sending another test file, send it as
a test (not as an original or amended).
(c)“Not Yet Processed” — The file has been received, but results are not available. Please check back in a few days.
Sec. 4. Electronic Submissions
.01Electronically filed information may be submitted to IRS 24 hours a day, seven days a week. Technical assistance is available
Monday through Friday between 8:30 a.m. and 4:30 p.m. ET by calling: 1–866–455–7438.
.02The FIRE system will be down from 6 p.m. ET December 14, 2012, through January 2, 2013.This allows IRS to update its
system to reflect current year changes. In addition, the FIRE system may be down every Wednesday from 2:00 a.m. to 5:00 a.m. ET
for programming updates.
.03If sending files larger than 10,000 records electronically, data compression is encouraged. The file size can not exceed 2.5
million records. WinZip and PKZIP are the only acceptable compression packages. IRS cannot accept self-extracting zip files or
compressed files containing multiple files. The time required to transmit information returns electronically will vary depending upon
the type of connection to the Internet and if data compressionis used. The time required to transmit a file can be reduced up to
95 percent by using compression.If filers are having trouble transmitting files with a scripting process, they should contact IRS at
1–866–455–7438 for assistance.
.04Transmitters may create files using self assigned filename(s). Files submitted electronicallywill be assigned a new unique
filename by the FIRE system. The filename assigned by the FIRE system will consist of submission type (TEST, ORIG [original],
and AMEN [amended]), the filer’s TCC and a four-digit sequencenumber. The sequence number will be incremental for every file
sent. For example, if sending the first original file for the calendar year and the TCC is 66666, the IRS assigned filename would be
ORIG.66666.0001. Record the file name. If assistance is required, the file name will be needed by the IRS to identify the file.
.05If a file submitted timely is bad, the filer will have up to 60 days from the day the file was transmitted to submit an acceptable
original file. If an acceptable original file is not received within 60 days, the plan administrator could be subject to late filing or
incomplete return penalties.
Sec. 5. PIN Requirements
.01The user will be prompted to create a PIN consisting of ten (10) numeric characters when establishing the initial User ID name
and password.
.02The PIN is required each time an ORIGINAL or AMENDED file is sent electronically and serves as permission to release the
file. It is not needed for a TEST file. Authorized agents may enter their PIN; however, the plan administrator is responsible for the
accuracy of the returns. The plan administrator will be liable for penalties for failure to comply with filing requirements. If there is a
problem with the PIN, filers should call 1–866–455–7438 for assistance.
.03If the file is good, it is released for mainline processing. If the file is bad, follow amended file procedures.
Sec. 6. Electronic Filing Specifications
.01The FIRE system is designed exclusively for the filing of Forms 8955-SSA, 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, 8027,
8935 and W-2G.
.02A transmitter must have a TCC (see Part A,Sec. 4) before a file can be transmitted.
.03After five business days, a filer will benotified via email as to the acceptability of the file, if, an accurate email address was
provided on the “Verify Your Filing Information” screen. If using email filtering software, configure the software to accept email
from f
ire@irs.govand irs.e-helpmail@irs.gov. If after receiving the email it indicates thatthe file is bad, filers must log into the FIRE
systemandgototheCHECKFILESTATUSareatodeterminetheerrorsinthefile.
August 20, 20122912012–34 I.R.B.

Sec. 7. Connecting to the FIRE System
.01Have the TCC and TIN available before connecting.
.02Turn off pop-up blocking software before transmitting files.
.03Make sure the browser supports the security standards listed below.
.04Set the browser to receive “cookies.” Cookies are used to preserve the User ID status.
.05Point the browser to h
ttp://fire.irs.govto connect to the FIRE system or to http://fire.test.irs.govto connect to the FIRE test
system (Nov. 1 through Feb. 15).
.06FIRE Internet Security Technical Standards are:
HTTP 1.1 Specification (h
ttp://www.w3.org/Protocols/rfc2616/rfc2616.txt).
SSL 3.0 or TLS 1.0. SSL and TLS are implemented using SHA and RSA 1024 bits during the asymmetric handshake.
The filer can use one of the following encryption algorithms, listed in order of priority, using SSL or TLS:
AES 256-bit (FIPS-197)
AES 128-bit (FIPS-197)
TDES 168-bit (FIPS-46-3)
.07 F
irsttimeconnectiontoTheFIRESystem(If there has been a previous logon, skip to “Subsequent Connections to
the FIRE system.”)
—Click“Create New Account.”
— Fill out the registration form and click“Submit.”
— CreateUser ID.
— Create and verifypassword(The password is user created and must be eight alphanumeric
characters, containing at leastone uppercase, one lowercase and one numeric and cannot contain
the User ID). The FIRE system requires passwords to be changed every 90 days or at the first
logon attempt after 90 days. The previous 24 passwords cannot be used.)
—C
lick“Create.”
— If the message“Account Created,”is received click“OK.”
—C
reate and verify the ten-digit self-assigned PIN (Personal Identification Number).
—Click“Submit.”
— If the message“Your PIN has been successfully created!”is received, click“OK.”
— Read the bulletin(s) and/or“Click here to continue.”
.
08SubsequentconnectionstotheFIREsystem
—Click“Log On.”
—EntertheUser ID.
—Enterthepassword(the password is case sensitive).
— Read the bulletin(s) and/or“Click here to continue.”
.
09UploadingafiletotheFIREsystem
— At the Menu Options:
Click“Send Information Returns.”
Enter theTCC.
Enter theTIN.
Click“Submit.”
The system will then display the company name, address, city, state, ZIP code, telephone number,
contact and email address. This information will be used to email the transmitter regarding the
transmission. Update as appropriate and/or Click“Accept.”
2012–34 I.R.B.292August 20, 2012

.09Uploadingaf
iletotheFIREsystem
Note:Please ens
ure that the email address is accurate so that the correct person receives the
email and it does
not return to IRS as undeliverable. If SPAM filtering software is being used,
configure it to a
llow an email from f
ire@irs.govand irs.e-helpmail@irs.gov.
— Click one of the following:
Original File
Amended File
Te s t Fi l e(Th
is option will only be available from November 1 through February 15 at
http://fire
.test.irs.gov.)
—Enterthete
n-digit PIN (If sending a test file, there is no prompt for this.)
—Click“Submit.”
— Click“Browse”to locate the file and open it.
—Click“Upload.”
When the upload is complete, the screen will display the total bytes received and the IRS assigned filename for the file. If this
information is not displayed on the screen, IRS may not havereceived the file. To verify, go to the “CHECK FILE STATUS”
option on the Main menu. If the filename is displayed, the count is equal to “0,” and the results indicate “not yet processed,” IRS
received the file. If the filename isnot displayed, send the file again.
If there are more files to upload for that TCC:
Click“File Another?;”otherwise,
Click“Main Menu.”
It is the filer’s responsibility to check the acceptability of submitted files. Be sure to check back into the system using the
CHECK FILE STATUS option.
.10CheckingtheFILESTATUS
If the correct email address was provided onthe “Verify Your Filing Information” screen when the file was sent, an email will be
sent regarding the FILE STATUS. If the results in the email indicate “Good, Released” and the “Count of Participants” is correct,
the filer is finished with this file. If any other results are indicated, follow the instructions below.
—Atthe
Main Menu:
Click“Check File Status.”
Enter theTCC.
Enter theTIN.
Click“Search.”
—Ift
he results indicate:
“Good, Not Released”— If the participant count is correct, the filer is finished with this
file. The file will automatically be released after ten calendar days unless the filer contacts
IRS within this timeframe.
“Good, Released”— The file has been released to mainline processing.
“Good, Released with Errors”— A bad file has been released. This result will be assigned
when a bad file with minor errors has not been replaced within the 60 day criteria.
“Bad”— Click on the filename to view the error message(s). Correct the errors and timely
resubmit the file as the same type of file originally submitted (Original or Amended.)
Replacement files are not applicable to Form 8955-SSA submissions.
“Not yet processed”— The file has been received, but results are not available. Please
check back in a few days.
August 20, 20122932012–34 I.R.B.

“Superseded”— This status is assigned to a bad file when it is replaced by a new submission
of the same type. The superseded status is also assigned to a good file when an amended file
is submitted to correct errors in the good file.
—Clickonthedesiredfileforadetailedreportofthetransmission.
— When finished, click onMain Menu.
Click“Log Out.”
Click“Close Web Browser.”
Sec. 8. Common Submission Errors and Problems
IRS encourages filers to verify the format and content of eachtype of record to ensure the accuracy of the data. This may be
important for those filers who have either had their files prepared by a service bureau or who have purchased software packages.
Filers who engage a service bureau to transmit files on their behalfshould be careful not to report duplicate data. This section lists
some of the problems most frequently encountered with electronic files submitted to IRS. These problems may result in IRS rejecting
files as “Bad”.
.01The electronic file appears to be incomplete. The count of participant records in the P-RECORD-COUNT field of the End of
Transmission “F” Record does not equal the number of Participant “P” records in the file.
.02The electronic file appears to be incomplete. The count ofall records in the FILE-RECORD-COUNT field of the End of
Transmission “F” Record does not equal the number of records in the file.
.03A test file was submitted to the production system. If the file submitted wasn’t a test file, please correct the TEST-FILE-IND
in the Transmitter “T” Record. If a test file is submitted to the production system in error, no action is needed; the file will be deleted
if a corrected file isn’t received in 60 days.
.04The file was submitted with more than one Transmitter “T” Record. Each file submitted through the FIRE system can contain
only one Transmitter “T” Record.
.05ThefilewassubmittedwithmorethanoneSponsor“S”Record.Each file submitted through the FIRE system can contain only
one Sponsor “S” Record.
.06The file was submitted with more than one Administrator “A” Record. Each file submitted through the FIRE system can contain
only one Administrator “A” Record.
.07The file was submitted with more than one End of Transmission“F” Record. Each file submitted through the FIRE system can
contain only one End of Transmission “F” Record.
.08The file was submitted with records which appear to be from different filings. (The Plan Year Begin Date, Plan Year End Date,
Sponsor EIN, and Plan Number are not the same on every record in the file.)
.09The file contained too many participants to be submitted in a single file. It was included in multiple FIRE files and one of these
files had an error. All of the files related tothis single filing must be corrected and resubmitted (even if there was an error in only one
of the files).
.10The file did not include a Sponsor EIN in positions 18–26 of the Sponsor “S” Record.
.11The file included a non-numeric Sponsor EIN inpositions 18–26 of the Sponsor “S” Record.
.12The file did not include a Sponsor Name in positions 74–143 of the Sponsor “S” Record.
.13The file did not include a Sponsor Address in positions 249–400 of the Sponsor “S” Record.
.14The file included a non-numeric Plan Number in positions27–29 of the Sponsor “S” Record. The Plan Number should be
001–999.
.15The file did not include a Plan Name in positions 411–550 of the Sponsor “S” Record.
.16IRS has already received a file with the same Sponsor EIN, Plan Number, and Plan Year Ending Date. If a file was submitted
to correct a previous error but is being submitted more than 60 daysafter notification of the error, or if this file was meant to amend
a previously submitted file, please make sure that it is identified as an amended return (AMENDED-IND = “1” (one) in position 34
oftheSponsor“S”Record.) Ifthefilewassubmitted in error (it was a duplicate file), or if this is not a duplicate file and was not
previously submitted with the same Sponsor EIN, Plan Number, and Plan Year Ending Date, please contact IRS at 866–455–7438.
.17The count of total participants reported in positions 568–575 of the Sponsor “S” Record does not equal the count of Participants
with an entry code of A in field position 42 of the participant “P” record. If the file was too large to be submitted in a single FIRE file,
this should be the total reported in all of the associated FIRE files.
.18The file did not include an Administrator EIN inpositions 35–43 of the Administrator “A” Record.
.19The file included a non-numeric Administrator EIN in positions 35–43 of the Administrator “A” Record.
.20The file did not include an Administrator Address in positions 149–300 of the Administrator “A” Record.
.21The file had plan participant record(s) which contained data but did nothave a valid entry code.
.22The file had plan participant record(s) in which an Entry Code of “A” or “B” was indicated in box 7a, however all of the
remaining data for Lines 7(b) through 7(g) was not provided in positions 44–131 of the Participant “P” record.
2012–34 I.R.B.294August 20, 2012

.23The file had plan participant record(s) in which an Entry Code of “D” was indicated, however all of the remaining data for
Lines 7(b) and 7(c) was not provided in positions 44–99 of the Participant “P” record.
.24The file had plan participant record(s) in which an Entry Codeof “C” was indicated, however all of the remaining data for
Lines 7(b) was not provided (positions 44–52),7(c) (positions 53–99), 7(h) (positions 132–140), and 7(i) (positions 141–143) in the
Participant “P” Record.
.25SPAM filters are not set to receive email from f
ire@irs.govand irs.e-helpmail@irs.gov. To receive emails concerning files,
processing results, reminders and notices, set the SPAM filter to receive email from f
ire@irs.govand irs.e-helpmail@irs.gov.
.26An incorrect email address was provided. When the “Verify YourFiling Information” screen is displayed, make sure the correct
email address is listed. If not, pleaseupdate with the correct email address.
.27The transmitter does not check the FIRE system to determine why the file is bad. The results of a file transfer are posted to
the FIRE system within five business days. If the correct email address was provided on the “Verify Your Filing Information” screen
when the file was sent, an email will be sent regarding the FILE STATUS. If any other results are received, follow the instructions
in the Check File Status option. If the file contains errors, get an online listing of the errors. The date received and number of payee
records are also displayed.
.28The transmitter compresses several files into one. Compress only one file at a time. For example, if there are ten uncompressed
files to send, compress each file separately and send ten separate compressed files.
.29The file is formatted as EBCDIC. All files submitted electronically must be in standard ASCII.
.30An incorrect file is not replaced timely. If the file is bad,correct the file and timely resubmit as an original.
.31The transmitter sends a file and CHECK FILE STATUS indicatesthat the file is good, but the transmitter wants to send an
amended file to replace the original file. Once a file has been transmitted, do not send another file unless the CHECK FILE STA-
TUS indicates the file is bad five business days after the file wastransmitted. If a file should not be processed, contact IRS at
1–866–455–7438 to see if this is a possibility.
Part C. Record Format Specifications and Record Layouts
Sec. 1. Transmitter “T” Record
.01This record identifies the entity preparing and transmitting the file. The transmitter and the plan administrator may be the same,
but they need not be.
.02Thefirstrecordofafilemustbe a Transmitter “T” Record. The “T” Record must appear on eachelectronic file; otherwise,
the file will be rejected.
.03The “T” Record is a fixed length of 750 positions.
.04All alpha characters entered in the “T” Record must be upper case.
Note:For all fields marked“Required,”the transmitter must provide the informationdescribed under Description and Remarks. If
required fields are not completed in accordance with these instructions, IRS will contact the transmitter to request a new file. For those
fields not marked “Required,” a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated
field position(s) and for the indicated length. All records have a fixed length of 750 positions. Refer to the instructions for Form
8955-SSA for additional filing information.
Record Name: Transmitter “T” Record
Field
Position
Field Title
Length
Description and Remarks
1Record Type1
Required.Enter“T.”
2–5
Plan Year4
Required.Enter the plan year formatted as YYYY (e.g.2010, 2011, 2012,etc.).
6Blank1Enter a blank.
7–15
Transmitter’s TIN9
Required.Enter the nine-digit Taxpayer Identification Number of the
transmitter. Do not enter blanks, hyphens, or alpha characters. An EIN
consisting of all the same digits (e.g., 111111111) is not acceptable.
August 20, 20122952012–34 I.R.B.

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
16–20Transmitter Control
Code (TCC)
5Required.Enter the five-character alphanumeric Transmitter Control Code
assigned by IRS.
21–27Reserved7Enter blanks.
28Test File Indicator1
Required for test files only.Enter a “T” if this is a test file; otherwise, enter
blank.
29Foreign Entity
Indicator
1Enter a “1” (one) if the transmitter is a foreign entity; otherwise, enter a blank.
30–69Transmitter’s Name 40
Required.Enter the name of the transmitter in the manner in which it is used
in normal business. Left justify the information and fill unused positions with
blanks.
70–109Transmitter’s Name
(Continued)
40
Required.Enter any additional information that may be part of the name. Left
justify the information and fillunused positions with blanks.
110–149Company Name40
Required.Enter the name of the company to be associated with the address
where correspondence should be sent. Left justify the information and fill
unused positions with blanks.
150–189
Company Name
(Continued)
40Enter any additional information that may be part of the name. Left justify the
information and fill unused positions with blanks.
190–229Company Mailing
Address
40
Required.Enter the mailing address where correspondence should be sent. Left
justify the information and fillunused positions with blanks.
For U.S. addresses, the administrator’s city, state, and ZIP Code must bereported as a 40, 2, and 9-position field, respectively.
Filers must adhere to the correct format for the city, state, and ZIP Code.
For foreign addresses, filers may use the administrator’s city, state, and ZIP Code as a continuous 51-position field. Enter
information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign
address, the Foreign Entity Indicatorin position 29 must contain a “1” (one).
230–269Company City40
Required.Enter the city, town, or post office where correspondence should be
sent. Left justify the information and fill unused positions with blanks.
270–271Company State Code 2
Required.Enter the valid U.S. Postal Service state code abbreviation. See
Part A, Sec. 8.
272–280Company ZIP Code 9
Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal
Service. If only the first five digits areknown, left justify the information and
fill unused positions with blanks.
281–303Reserved23Enter blanks.
304–343Contact Name40
Required.Enter the name of the person to be contacted if IRS encounters
problems with the file or transmission. Left justify the information and fill
unused positions with blanks.
344–358
Contact Telephone
Number
15
Enter the telephone number of the person to contact regarding electronic files.
Omit hyphens. If no extension is available, left justify the information and
fill unused positions with blanks. For example, the IRS Customer Service
Section phone number of 866–455–7438 with an extension of 52345 would
be 866455743852345.
359–408
Contact Email
Address
50Required if available.Enter the email address the person to contact regarding
electronic files. Left justify the information. If no email address is available,
enter blanks.
409–517
Reserved109Enter blanks.
2012–34 I.R.B.296August 20, 2012

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
518
Vendor Indicator1
Required.Enter the appropriate code from the table below to indicate if the
software used was provided by a vendor or produced in-house.
Indicator
Usage
VSoftware was purchased from a vendor
or other source.
ISoftware was produced by in-house
programmers.
Note:An in-house programmer is defined as an employee or a hired contract programmer. If the software is produced in-house,
the following vendor information fields are not required.
519–558
Vendor Name40
Required.Enter the name of the company from whom the software was
purchased. Left justify the information and fill unused positions with blanks.
ForU.S.addresses, the vendor city, state, and ZIP Code must be reported as a 40, 2, and 9–position field, respectively. Filers
must adhere to the correct format for the administrator’s city, state, and ZIP Code.
For foreign addresses, filers may use the administrator’s city, state, and ZIP Code as a continuous 51–position field. Enter
information in the following order: city, province or state, postal code, and the name of the country.
559–598
Vendor Mailing
Address
40
Required.When vendor indicator position 518 of the “T” record is V, enter
the mailing address. Left justify the information and fill unused positions with
blanks.
599–638
Vendor City40
Required.When vendor indicator position 518 of the “T” record is V, enter the
city, town, or post office. Left justify the information and fill unused positions
with blanks.
639–640Vendor State2
Required.When vendor indicator position 518 of the “T” record is V, enter the
valid U.S. Postal Service state abbreviation. Refer to the chart of valid state
codes in Part A, Sec. 8.
641–649Vendor ZIP Code9
Required.When vendor indicator position 518 of the “T” record is V, enter
the valid nine-digit ZIP Code assigned by the U.S. Postal Service. If only the
first five-digits are known, left justify the information and fill unused positions
with blanks.
650–689
Vendor Contact Name 40
Required.When vendor indicator position 518 of the “T” record is V, enter the
name of the person who can be contacted concerning any software questions.
690–704Vendor Contact
Phone Number &
Extension
15Required.When vendor indicator position 518 of the “T” record is V, enter
the telephone number of the person to contact concerning software questions.
Omit hyphens. If no extension is available, left justify the information and fill
unused positions with blanks.
705–739
Reserved
35
Enter blanks.
740Vendor Foreign Entity
Indicator
1Enter a “1” (one) if the vendor is a foreign entity. Otherwise, enter a blank.
August 20, 20122972012–34 I.R.B.

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
741–748Record Sequence
Number
8
Required.Enter the number of the record asit appears within the file. The
record sequence number for the “T” record will always be “1” (one), since it
is the first record on the file and the file can have only one “T” record. Each
record, thereafter, must be incremental by one in ascending numerical sequence,
that is, 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For
example, the “T” record sequence number would appear as “00000001” in the
field, the “S” record would be “00000002”, the “A” record, “00000003”, the “P”
record, “00000004” and so on until the final record of the file, the “F” record.
749–750
Blank or Carriage
Return Line Feed
2Enter blanks or carriage return line feed (CR/LF) characters.
Transmitter “T” Record Layout
Record
Type
Plan YearBlankTransmitter’s
TIN
Transmitter
Control Code
(TCC)
ReservedTest File
Indicator
1
2–5
6
7–15
16–2021–2728
Foreign
Entity
Indicator
Transmitter’s
Name
Transmitter’s
Name
(Continued)
Company
Name
Company
Name
(Continued)
Company
Mailing
Address
Company
City
2930–6970–109110–149
150–189
190–229230–269
Company
State
Code
Company ZIP
Code
ReservedContact
Name
Contact
Telephone
Number
Contact
Email
Address
Reserved
270–271272–280281–303304–343
344–358359–408409–517
Vendor
Indicator
Vendor NameVendor
Mailing
Address
Vendor CityVendor StateVendor ZIP
Code
Vendor
Contact
Name
518519–558559–598599–638
639–640641–649
650–689
Vendor
Contact
Phone
Number &
Extension
ReservedVendor
Foreign Entity
Indicator
Record
Sequence
Number
Blank or
Carriage
Return Line
Feed
690–704
705–739
740741–748
749–750
Sec. 2. Sponsor “S” Record
.01The “S” Record identifies the Sponsor record.
.02Enter an “S” Record after the “T” Record on the file. There is only one “S” Record per file.
.03The “S” Record is a fixed length of 750 positions.
.04All alpha characters entered in the “S” Record must be uppercase.
2012–34 I.R.B.298August 20, 2012

Note:For all fields marked “Required”, the transmitter mustprovide the information describedunder Description and Remarks. If
required fields are not completed in accordance with these instructions, the file may not process correctly. For those fields not marked
“Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s) and
for the indicated length. All records have a fixed length of 750 positions. Refer to the Instructions for Form 8955-SSA for additional
filing information.
Record Name: Sponsor “S” Record
Field
Position
Field Title
Length
Description and Remarks
1Record Type1
Required.Enter“S.”
2–9Plan Year Begin
Date
8
Required.Enter the Plan Year Begin Date in the following format YYYYMMDD.
10–17Plan Year End
Date
8
Required.Enter the Plan Year End Date in the following format YYYYMMDD.
18–26Sponsor’s EIN 9
Required.Enter the nine-digit Employer Identification Number of the Sponsor. Do
not enter blanks, hyphens or alpha characters. An EIN consisting of all the same
digits (e.g., 111111111) is not acceptable.
27–29Plan Number3
Required.Enter the plan number. Right-justify the information with leading zeros.
30FIRE
Continuation
Indicator
1
Required.Enter a “0” (zero) unless this is a continuation of a Form 8955-SSA. Enter
a continuation indicator of “1” (one) only when reporting the second or subsequent
in a series of files exceeding 2.5 million records.
31–33FIRE
Continuation
Sequence
Number
3
Required.Enter the sequence number of the Form 8955-SSA continuation file. Set
to 001 if the FIRE Forms SSA ContinuationIndicator is zero. Right-justify the
information and fill with leading zeros.
34Amended
Indicator
1
Required.Entera“1”(one)ifthisisanamendedreturn; otherwise, enter a zero.
355558 Extension
Filed Indicator
1
Required.Enter a “1” (one) if a Form 5558 extension was filed for this plan;
otherwise, enter a zero.
36Automatic
Extension
Indicator
1
Required.Enter “1” (one) if a business tax return extension other than a Form 5558
was filed for this year; otherwise, enter a zero.
37Blank1Enter blank.
38Special
Extension
Indicator
1
Required.Enter a “1” (one) if this file is being submitted under a special extension
(for example, a disaster declaration); otherwise, enter a zero.
39–73Special
Extension
Description
35
If the Special Extension Indicator equals‘1”, enter either Disaster Relief Extension
or Combat Zone Extension which ever is appropriate. Left justify the information
and fill unused positions with blanks.
74–143Sponsor’s Name 70
Required.Enter the sponsor’s name. Left justify the information and fill unused
positions with blanks.
144–213Sponsor’s DBA
Name
70Enter the sponsor’s Doing Business As (DBA), if applicable. Left justify the
information and fill unused positions with blanks.
214–248Sponsor’s In
Care Of Name
35
Enter the name if using an In Care Of Name. Left justify the information and fill
unused positions with blanks.
August 20, 20122992012–34 I.R.B.

Record Name: Sponsor “S” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
249–283Sponsor’s
Mailing Address
Line 1
35Required.Enter the mailing address of the sponsor. Street address should include
number, street, apartment or suite number,or PO Box if mail is not delivered to street
address. Left justify the information and fill unused positions with blanks.
284–318Sponsor’s
Mailing Address
Line 2
35
Enter any additional address information if necessary.
319–340Sponsor’s City 22
Required.Enter the city, town or post office. Left justify the information and fill the
unused positions with blanks. Enter APO or FPO if applicable.
341–342Sponsor’s State 2
Required.If a U.S. address, enter the valid U.S. Postal Service state abbreviation
for the state or the appropriate postal identifier (AA, AE, or AP) described in Part A,
Sec. 8; otherwise, enter blanks.
343–354
Sponsor’s ZIP
Code
12
Required.IfaU.S.address,enterthevalidZIPCodeassignedbytheU.S.Postal
Service. If only the first five-digits are known, left justify the information and fill the
unused positions with blanks. Do not enter hyphens or blanks between numbers.
355–376
Sponsor’s
Foreign
Province or State
name
22If the sponsor has a foreign address, enter the province or state name. Left justify
the information and fill unused positions with blanks.
377–378Sponsor’s
Foreign Country
Code
2If the sponsor has a foreign address, enter the appropriate country code from the
table in Part A, Sec. 9; otherwise, enter blanks.
379–400Sponsor’s
Foreign Mailing
Routing Code
22If the sponsor has a foreign address, enter the routing code; otherwise, enter blanks.
401–410Sponsor’s
Telephone
Number
10If known, enter the sponsor’s 10-digit telephone number; otherwise, enter blanks.
Do not enter dashes.
411–550
Plan Name140
Required.Enter the plan name. Left justify the information and fill unused positions
with blanks.
551
Voluntary Filing
Indicator
1
Required.Enter a 1 if this is a voluntary filing for a Government, Church or Other
Plan; otherwise, enter a zero.
552–559
Code A
Separated
Participants
Required To
be Reported for
SSA Count
8
Required.Enter the total number of plan participants entitled to deferred vested
benefits with entry code A in field position 42 of the participant “P” record who
are required to be reported for this year. If this is a continuation form with a 1 in
position 30 of this record, enter the combined total of all records. For example, if
the first record of the submission contains1,000 participants and the second record
contains 2,000, then enter 3,000 in this field. Information should be right-justified
with leading zeros; otherwise, fill with leading zeros.
560–567
Code A
Separated
Participants
Voluntarily
Reported for
SSA Count
8
Required.Enter the total number of plan participants entitled to deferred vested
benefits with entry code A in field position 42 of the participant “P” record who are
voluntarily reported for this year. If this is a continuation form with a 1 in position 30
of this record, enter the combined total ofall records. For example, if the first record
of the submission contains 1,000 participants and the second record contains 2,000,
then enter 3,000 in this field. Information should be right-justified with leading
zeros; otherwise, fill with leading zeros.
2012–34 I.R.B.300August 20, 2012

Record Name: Sponsor “S” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
568–575
Total
Participants
Reported on
SSA Count
8
Required.Enter the total number of participants entered in the fields for Separated
Participants and Voluntarily Separated Participants. Information should be
right-justified with leading zeros; otherwise, fill with leading zeros.
NOTE:This amount will reflect the total of all Participants with an entry code of A in field position 42 of the participant “P”
record. Do not include any participants who were previouslyreported on a Form 8955-SSA or a Schedule SSA (Form 5500.)
576
Participant
Statement
Indicator
1
Required.Enter a “1” (one) if the plan administrator provided an individual
statement to each participant required to receive a statement; otherwise, enter a zero.
577–585
Last Report
Sponsor EIN
9If present, enter the nine-digit Employer Identification Number of the Sponsor. Do
not enter blanks, hyphens or alpha characters. An EIN consisting of all the same
digits (e.g., 111111111) is not acceptable. If the EIN is not available, entering blanks
is acceptable.
586–588
Last Report Plan
Number
3Enter the 3-digit plan number, if available. Information should be right-justified
with leading zeros.
589–658
Last Report
Sponsor Name
70Enter the plan sponsor name, if available.Left justify the information, fill unused
positions with blanks.
659–693
Typed Sponsor
Signature Name
35
Enter the name of the person responsible for signing the tax form. Left justify the
information, fill unused positions with blanks.
694–701Sponsor
Signature Date
8Enter the date the tax form was signed in YYYYMMDD format.
702–740Reserved39
Required.Enter blanks.
741–748Record
Sequence
Number
8
Required.Enter the number of the record as it appears within the file. The record
sequence number for the “S” record will always be “2” (two), since it is the second
record on a file. Each record, thereafter, must be incremental by one in ascending
numerical sequence, that is, 3, 4, etc. Right-justify numbers with leading zeros in the
field. For example, the “T” record sequence number would appear as “00000001” in
the field, the “S” record would be “00000002”, the “A” record, “00000003”, the “P”
record, “00000004” and so on until the final record of the file, the “F” record.
749–750
Blank or
Carriage Return
Line Feed
2Enter blanks or carriage return line feed (CR/LF) characters.
Spo
nsor “S” Record Layout
Record
Type
Plan Year
Begin Date
Plan Year
End Date
Sponsor
EIN
Sponsor
Plan
Number
FIRE
Continuation
Indicator
FIRE
Continuation
Sequence
Number
12–910–1718–2627–293031–33
Amended
Indicator
5558
Extension
Filed
Indicator
Automatic
Extension
Indicator
BlankSpecial
Extension
Indicator
Special
Extension
Description
Sponsor’s
Name
34
35
36373839–7374–143
August 20, 20123012012–34 I.R.B.

Sponsor’s
DBA Name
Sponsor’s In
Care of
Name
Sponsor’s
Mailing
Address
Line 1
Sponsor’s
Mailing
Address
Line 2
Sponsor’s
City
Sponsor’s
State
Sponsor’s
ZIP Code
144–213214–248249–283284–318319–340341–342
343–354
Sponsor’s
Foreign
Province or
State Name
Sponsor’s
Foreign
Country
Code
Sponsor’s
Foreign
Mailing
Routing
Code
Sponsor’s
Telephone
Number
Plan NameVoluntary
Filing
Indicator
Separated
Participants
Required for
SSA Count
355–376
377–378379–400401–410
411–550551552–559
Voluntary
Separated
Participants
Required for
SSA Count
Total
Participants
Reported on
SSA Count
Participant
Statement
Indicator
Last Report
Sponsor’s
EIN
Last
Report
Plan
Number
Last Report
Sponsor’s
Name
Typed
Sponsor
Signature
Name
560–567568–575576577–585586–588589–658659–693
Sponsor
Signature
Date
ReservedRecord
Sequence
Number
Blank or
Carriage
Return Line
Feed
694–701702–740741–748
749–750
Sec. 3. Administrator “A” Record
.01The “A” Record contains the name and address information of the Plan Administrator. There should only be one “A” Record
per file.
.2All alpha characters entered in the “A” Record must be uppercase.
.03The “A” Record is a fixed length of 750 positions.
Note:For all fields marked “Required,” the transmitter must provide the information described under Description and Remarks. If
required fields are not completed in accordance with these instructions, IRS will contact the transmitter to request a new file. For those
fields not marked “Required,” a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated
field position(s) and for the indicated length. All records have a fixed length of 750 positions. Refer to the Instructions for Form
8955-SSA for additional filing information.
2012–34 I.R.B.302August 20, 2012

Record Name: Administrator “A” Record
Field
Position
Field Title
Length
Description and Remarks
1Record Type1
Required.Enter“A.”
2–9Plan Year Begin
Date
8
Required.Enter the Plan Year Begin Date in the following format YYYYMMDD.
10–17Plan Year End
Date
8
Required.Enter the Plan Year End Date in the following format YYYYMMDD.
18–26Sponsor’s EIN 9
Required.Enter the nine-digit Employer Identification Number of the sponsor. Do
not enter blanks, hyphens or alpha characters. An EIN consisting of all the same
digits (e.g., 111111111) is not acceptable.
27–29Plan Number3
Required.Enter the plan number. Right-justify the information and fill with leading
zeros.
30FIRE
Continuation
Indicator
1
Required.Enter a “0” (zero) unless this is a continuation of a Form 8955-SSA. Enter
a continuation indicator of “1” (one) only when reporting the second or subsequent
in a series of files exceeding 2.5 million records.
31–33FIRE
Continuation
Sequence
Number
3
Required.Enter the sequence number of the Form 8955-SSA continuation number.
Set to 001 if the FIRE Forms SSA Continuation Indicator is zero. Right-justify the
information and fill with leading zeros.
34Administrator
Same as Sponsor
Indicator
NOTE:If a “1”
is entered, A
Record positions
35–310 can be
blank.
1
Required.Enter a “1” (one) if the plan administrator is the same as the sponsor;
otherwise, enter a zero.
35–43
Administrator’s
EIN
9
Required.Enter the nine-digit employer identification number of the administrator.
Do not enter blanks, hyphens or alpha characters. An EIN consisting of all the same
digits (e.g., 111111111) is not acceptable.
44–113Administrator’s
Name
70
Required.Enter the name of the plan administrator. Left justify the information
and fill unused positions with blanks.
114–148Administrator In
Care of Name
35
Enter the in care of name if available; otherwise, enter blanks. Left justify the
information and fill unused positions with blanks.
149–183Administrator’s
Mailing Address
Line 1
35Required.Enter the mailing address of the payee. The street address should include
number, street, apartment or suite number, or PO Box if mail is not delivered to a
street address. Left justify the information and fill unused positions with blanks.
184–218Administrator’s
Mailing Address
Line 2
35
Enter any additional address information. Left justify the information and fill unused
positions with blanks.
219–240Administrator’s
City
22
Required.Enter the Administrator’s city. Left justify the information and fill
unused positions with blanks.
241–242Administrator’s
State Code
2
Required.Enter the valid U.S. Postal Service state abbreviation for the state or the
appropriate postal identifier (AA, AE, or AP) described in Part A, Sec. 8.
243–254
Administrator’s
ZIP Code
12
Required for U.S. addresses.Enter the valid ZIP Code (nine, five, or twelve-digit)
assigned by the U.S. Postal Service. If only the first five-digits are known, left justify
the information and fill the unused positions with blanks.
August 20, 20123032012–34 I.R.B.

Record Name: Administrator “A” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
255–276
Administrator’s
Foreign
Province or State
22
Required for a foreign address.Enter the name of the Administrator’s Province
or State. Left justify the information and fill unused positions with blanks. Leave
blank for U.S. addresses.
277–278Administrator’s
Foreign Address
Country Code
2
Required for a foreign address.Enter the name of the Administrator’s Foreign
Country Code from the table in Part A, Sec. 9. Leave blank for U.S. addresses.
279–300Administrator’s
Foreign Address
Postal Routing
Code
22
Required for a foreign address.Enter the name of the Administrator’s Foreign
Country Postal Routing Code. Left justify the information and fill unused positions
with blanks. Leave blank for U.S. addresses.
301–310Administrator’s
Telephone
Number
10Enter the Administrator’s telephone number if available. The number must be
exactly ten numeric characters; otherwise, leave blank.
311–319Last Report
Administrator’s
EIN
9Enter the nine-digit employer identification number of the administrator, if available.
Do not enter blanks, hyphens or alpha characters. An EIN consisting of all the same
digits (e.g., 111111111) is not acceptable. If the EIN is not available, entering blanks
is acceptable.
320–389Last Report
Administrator’s
Name
70Enter the administrator’s name, if available. Left justify the information and fill
unused positions with blanks; otherwise, leave blank.
390–424Typed
Administrator’s
Signature Name
35
Enter the name of the administrator who signs the tax form; otherwise, leave blank.
Left justify the information and fill unused positions with blanks.
425–432
Administrator’s
Signature Date
8Enter the date the administrator signed the tax form in YYYYMMDD format;
otherwise, leave blank.
433–740Reserved308Enter blanks.
741–748Record
Sequence
Number
8
Required.Enter the number of the record as it appears within the file. The record
sequence number for the “T” record will always be “1” (one), since it is the first
record on a file and the file can have onlyone “T” record. Each record, thereafter,
must be incremental by one in ascending numerical sequence, that is, 2, 3, 4, etc.
Right-justify the information numbers with leading zeros in the field. For example,
the “T” record sequence number would appear as “00000001” in the field, the
“S” record would be “00000002”, the “A” record, “00000003”, the “P” record,
“00000004” and so on until the final record of the file, the “F” record.
749–750
Blank or
Carriage Return
Line Feed
(CR/LF)
2Enter blanks or carriage return line feed (CR/LF) characters.
Administrator “A” Record Layout
Record
Type
Plan Year
Begin Date
Plan Year
End Date
Sponsor EINPlan
Number
FIRE
Continuation
Indicator
12–910–1718–2627–2930
2012–34 I.R.B.304August 20, 2012

FIRE
Continuation
Sequence
Number
Administrator
Same as
Sponsor
Indicator
Administrator
EIN
Administrator
Name
Administrator
In Care
Of Name
Administrator
Address
Line 1
31–3334
35–43
44–113114–148149–183
Administrator
Address
Line 2
Administrator
City
Administrator
State Code
Administrator
ZIP Code
Administrator
Foreign
Province or
State Name
Administrator
Foreign
Address Country
Code
184–218219–240241–242
243–254255–276
277–278
Administrator
Foreign
Address
Routing
Code
Administrator
Telephone
Number
Last Report
Administrator
EIN
Last Report
Administrator
Name
Typed
Administrator
Signature
Name
Administrator
Signature
Date
279–300301–310311–319320–389390–424
425–432
ReservedRecord
Sequence
Number
Blank or
Carriage
Return Line
Feed
433–740741–748
749–750
Sec. 4. Participant “P” Record
.01The “P” Record is a fixed record length of 750 positions and all positions listed are required.
.02All alpha characters entered in the “P” Record must be upper case.
Note:For all fields marked “Required,” the transmitter must provide the information described under Description and Remarks. If
required fields are not completed in accordance with these instructions, IRS will contact the transmitter to request a new file. For those
fields not marked “Required,” a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated
field position(s) and for the indicated length. All records have a fixed length of 750 positions. Refer to the Instructions for Form
8955-SSA for additional filing information.
Record Name: Participant “P” Record
Field
Position
Field Title
Length
Description and Remarks
1Record Type1
Required.Enter “P.”
2–9Plan Year Begin Date8
Required.Enter the date the plan began in the following format
YYYYMMDD.
10–17Plan Year End Date8
Required.Enter the date the plan ended in the following format
YYYYMMDD.
18–26Sponsor EIN9
Required.Enter the nine-digit employer identification number of the
sponsor. Do not enter blanks, hyphens or alpha characters. An EIN
consisting of all the same digits (e.g., 111111111) is not acceptable.
27–29Plan Number3
Required.Enter the plan number. Right-justify the information and
fill with leading zeros.
August 20, 20123052012–34 I.R.B.

Record Name: Participant “P” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
30FIRE Continuation Indicator1
Required.Enter a “0” (zero) unless this is a continuation of a Form
8955-SSA. Enter a continuation indicator of “1” (one) only when re-
porting the second or subsequentin a series of files exceeding 2.5
million records.
31–33FIRE Continuation Sequence
Number
3
Required.Enter the sequence number of the Form 8955-SSA con-
tinuation number. Set to 001 if the FIRE Forms SSA Continuation
Indicator is zero. Right-justify theinformation and fill with leading
zeros.
34–41Participant Sequence Number8
Required.For the first participant enter 00000001. Increase by 1 for
each additional participant reported in the file.
42Entry Code1
Required.Enter the appropriate code from the table below:
Indicator
Usage
AParticipant not previously reported
BParticipant previously reported under the plan
number shown on this schedule to modify some of
the previously reported information.
CParticipant previously reported under another plan
number who will now be receiving his/her benefits
from the plan reported on this schedule.
DParticipant previously reported under the plan
number shown on this schedule whose benefits
have been paid out or who is no longer entitled to
those deferred vested benefits.
43Foreign Participant Without SSN
Indicator
1
Required.Enter a “1” (one) if the participant is a foreign national
employed outside the United States who does not have an SSN; oth-
erwise, enter a zero.
44–52
Participant SSN9
Required unless a foreign national.Enter the nine-digit social se-
curity number (SSN) of the participant. Do not enter blanks, hyphens
or alpha characters. An SSN consisting of all the same digits (e.g.,
111111111) is not acceptable. If the SSN is not required, entering
blanks is acceptable.
53–63
Participant’s First Name11
Required.Enter the first name of the participant if known; otherwise,
enter blanks. Left justify the information and fill unused positions
with blanks.
64Participant’s Middle Initial1Enter the middle initial of the participant if known; otherwise, enter
a blank.
65–99
Participant’s Last Name
35Required.Enter the surname of the participant if known; otherwise,
enter blanks. Left justify the information and fill unused positions
with blanks.
2012–34 I.R.B.306August 20, 2012

Record Name: Participant “P” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
100Participant’s Annuity Type Code 1
Required if Entry Code (Field Position 42) is A or B.Enter the
appropriate code from the table below:
Indicator
Usage
ASingleSum
BAnnuity payable over a fixed number of years
CLife annuity
DLife annuity with period certain
ECash refund life annuity
FModified cash refund life annuity
GJoint and last survivor life annuity
MOther
Note:If a code is not required enter a blank.
101Participant Payment Frequency
Code
1
Required if Entry Code (Field Position 42) is A or B.Enter the
appropriate code from the table below:
Indicator
Usage
ALump sum
BAnnually
CSemiannually
DQuarterly
EMonthly
MOther
Note:If a code is not required enter a blank.
102–116 Participant’s Vested Benefit
Amount
NOTE:Filers may round off cents
to whole dollars. If rounding,
round all amounts. To do so, drop
any amount less than 50 cents and
increase any amount from 50 to
99 cents to the next highest dollar.
When rounding the entries, both
positions 115 and 116 must be 0
(zero) representing cents.
15Required for Defined Benefit plan if Entry Code is A or B. This
field must contain 15numeric characters.Each payment amount
must contain U.S. dollars and cents. Do not enter dollar signs,
commas or decimal points. The right-most two positions represent
cents in the payment amount fields.For example, report $600.25
as 000000000060025.Right-justify and fill unused positions with
zeros.
August 20, 20123072012–34 I.R.B.

Record Name: Participant “P” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
117–131 Participant’s Total Account Value
Amount
NOTE:Filers may round off cents
to whole dollars. If rounding,
round all amounts. To do so, drop
any amount less than 50 cents and
increase any amount from 50 to
99 cents to the next highest dollar.
When rounding the entries, both
positions 130 and 131 must be 0
(zero) representing cents.
15RequiredforDefinedContributionplanifEntryCodeisAor
B. This field must contain 15 numeric characters.Each payment
amount must contain U.S. dollars and cents. Do not enter dollar signs,
commas or decimal points. The right-most two positions represent
cents in the payment amount fields.For example, report $600.25
as 000000000060025.Right-justify and fill unused positions with
zeros.
132–140 Participant’s Prior Sponsor’s EIN 9
Required if Entry Code is C.Enter the nine-digit employer identifi-
cation number of the participant’s prior sponsor. Do not enter blanks,
hyphens or alpha characters. An EIN consisting of all the same dig-
its (e.g., 111111111) is not acceptable. If this is not a required entry,
entering blanks is acceptable.
141–143 Participant’s Prior Plan Number3
Required if Entry Code is C.Enter the participant’s prior plan num-
ber; otherwise, enter zeros.
144Incomplete Information Indicator 1Enter a one if the information being reported is based on incomplete
records.
145–740
Reserved
596
Enter blanks.
741–748 Record Sequence Number8
Required.Enter the number of the record as it appears within the
file. The record sequence number for the “T” record will always be
“1” (one), since it is the first record on a file and a file can have only
one “T” record. Each record, thereafter, must be incremental by one
in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify
numbers with leading zeros in the field. For example, the “T” record
sequence number would appear as “00000001” in the field, the “S”
record would be “00000002”, the “A” record, “00000003”, the “P”
record, “00000004” and so on until the final record of the file, the
“F” record.
749–750
Blank or Carriage Return Line
Feed (CR/LF)
2Enter blanks or carriage return line feed (CR/LF) characters.
2012–34 I.R.B.308August 20, 2012

Participant “P” Record Layout
Record
Type
Plan Year
Begin Date
Plan Year End
Date
Sponsor EINPlan NumberFIRE
Continuation
Indicator
12–910–1718–2627–2930
FIRE
Continuation
Sequence
Number
Participant’s
Sequence
Number
Entry CodeForeign
Participant
Without SSN
Indicator
Participant
SSN
Participant’s
First Name
31–3334–414243
44–5253–63
Participant’s
Middle Name
Participant’s
Last Name
Participant’s
Annuity Type
Code
Participant’s
Payment
Frequency
Code
Participant’s
Vested Benefit
Amount
Participant’s
Total Account
Value Amount
64
65–99
100101102–116117–131
Participant’s
Prior Sponsor
EIN
Participant’s
Prior Plan
Number
Incomplete
Information
Indicator
ReservedRecord
Sequence
Number
Blank or
Carriage
Return Line
Feed
132–140141–143144
145–740
741–748
749–750
Sec. 5. End of Transmission “F” Record
.01The “F” Record is a fixed record length of 750 positions and allpositions listed are required. The “F” Record is a summary of
the number of all records in the entire file. There is only one “F” Record per file.
.02This record will be written after the last “P” Record of the entire file. End the file with an End of Transmission “F” Record.
No data will be read after the “F” Record.
.03All alpha characters entered in the “F” Record must be upper case.
Note:For all fields marked “Required,” the transmitter must provide the information described under Description and Remarks. If
required fields are not completed in accordance with these instructions, IRS will contact the transmitter to request a new file. For those
fields not marked to “Required,” a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated
field position(s) and for the indicated length. All records have a fixed length of 750 positions.
Record Name: End of Transmission “F” Record
Field
Position
Field Title
Length
Description and Remarks
1Record Type1
Required.Enter“F.”
2–9Sponsor Record Count8
Required.EnterthetotalnumberofSponsorRecordsonthisfile.
This count must be the same as the total number of “S” records.
Right-justify the information and fill with leading zeros.
10–17Administrator Record Count8
Required.Enter the total number of Administrator Records on this
file. This count must be the same as the total number of “A” records.
Right-justify the information and fill with leading zeros.
August 20, 20123092012–34 I.R.B.

Record Name: End of Transmission “F” Record (Continued)
Field
Position
Field Title
Length
Description and Remarks
18–25
Participant Record Count8
Required.Enter the total number of Participant Records on this file.
This count must be the same as the total number of “P” records.
Right-justify the information and fill with leading zeros.
26–33File Record Count8
Required.Enter the total number of all records in the file, including
the Transmitter “T” Record, the Sponsor “S” Record, the Administra-
tor “A” Record, the Participant “P” Records, and End of Transmission
“F” Record. Right-justify the information and fill with leading zeros.
34–740Reserved707Enter blanks.
741–748 Record Sequence Number8
Required.Enter the number of the record as it appears within the
file. The record sequence numberfor the “T” recordwill always be
“1” (one), since it is the first record on a file and the file can have only
one “T” record. Each record, thereafter, must be incremental by one
in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify
numbers with leading zeros in the field. For example, the “T” record
sequence number would appear as “00000001” in the field, the “S”
record would be “00000002”, the “A” record, “00000003”, the “P”
record, “00000004” and so on until the final record of the file, the “F”
record.
749–750
Blank or Carriage Return Line
Feed
2Enter blanks or carriage return line feed (CR/LF) characters.
End of Transmission “F” Record Layout
Record
Type
Sponsor
Record
Count
Administrator
Record Count
Participant
Record Count
File Record
Count
Reserved
12–910–17
18–25
26–3334–740
Record
Sequence
Number
Blank or
Carriage
Return Line
Feed
741–748
749–750
2012–34 I.R.B.310August 20, 2012

Part IV. Items o
fGeneralInterest
Notice of Prop
osed
Rulemaking
Reimbursed En
tertainment
Expenses
REG–101812–
07
AGENCY: Inte
rnal Revenue Service
(IRS), Treas
ury.
ACTION: Noti
ce of proposed rulemaking.
SUMMARY: Thi
s document contains pro-
posed regula
tions explaining the exception
to the deduct
ion limitations on certain
expenditur
es paid or incurred under re-
imbursemen
t or other expense allowance
arrangemen
ts. These proposed regula-
tions affec
t taxpayers that pay or receive
advances,
allowances, or reimbursements
under reim
bursement or other expense
allowance
arrangements. These proposed
regulatio
ns clarify the rules for these ar-
rangement
s.
DATES: Com
ments or a request for
apublich
earing must be received by
October 3
0, 2012.
ADDRESSE
S: Send submissions to:
CC:PA:LP
D:PR(REG–101812–07),
room 5203
, Internal Revenue Ser-
vice, PO B
ox 7604, Ben Franklin Sta-
tion, Wa
shington, DC 20044. Submis-
sions ma
y be hand-delivered Monday
through
Friday between the hours of 8
a.m. and
4p.m. toCC:PA:LPD:PR
(REG–10
1812–07), Courier’s Desk, In-
ternal
Revenue Service, 1111 Constitution
Avenue
,N.W.,Washington,DC,orsent
electr
onically via the Federal eRulemak-
ing Por
tal atwww.regulations.gov(IRS
REG–10
1812–07).
FOR FUR
THER INFORMATION
CONTA
CT: Concerning the proposed reg-
ulati
ons, Patrick Clinton, (202) 622–4930;
conce
rning submissions of comments
and/o
r requests for a public hearing,
Oluwa
funmilayo (Funmi) Taylor, (202)
622–7
180 (not toll-free numbers).
SUPPLEMENTAR
Y INFORMATION:
Background
This document
contains proposed
amendments to
the Income Tax Regu-
lations (26 CF
R part 1) explaining the
exception to
the section 274(a) and (n) de-
duction limi
tations on certain expenditures
paid or incur
red under reimbursement or
other expens
e allowance arrangements.
The proposed
regulations clarify the defi-
nition of rei
mbursement or other expense
allowance a
rrangements for purposes
of section 2
74(a) and (n) and how the
deduction l
imitations apply to reimburse-
ment arrang
ements between three parties,
as address
ed inTransport Labor Con-
tract/Lea
sing, Inc. v. Commissioner,461
F.3d 1030 (
8
th
Cir. 2006),rev’g123 T.C.
154 (2004)
(TLC), and Rev. Rul. 2008–23,
2008–1 C.
B. 852.
Section 27
4(a)(1) limits deductions
for certa
in expenses for entertainment,
amusemen
t, or recreation activities and
for facil
ities used in connection with en-
tertainm
ent, amusement, or recreation
activit
ies. Section 274(n)(1) generally
limits t
he amount allowable as a deduc-
tion for
any expense for food, beverages,
enterta
inment activities, or entertainment
facilit
ies to 50 percent of the amount other-
wise al
lowable. However, the limitations
of sect
ions 274(a)(1) and 274(n)(1) do not
apply t
o an expense described in section
274(e)
(3).
In gene
ral, section 274(e)(3) excepts
from th
e limitations of section 274(a)
expens
es a taxpayer pays or incurs in
perfo
rming services for another person
under
a reimbursement or other expense
allow
ance arrangement with the other
perso
n. The exception applies if the tax-
payer
is an employee performing services
for an
employer and the employer does
not t
reat the reimbursement for the ex-
pens
es as compensation and wages to
the t
axpayer (section 274(e)(3)(A)). In
that
case, the employee is not treated as
havi
ng additional compensation and has
no d
eduction for the expense. The em-
plo
yer bears and deducts the expense and
is s
ubject to the deduction limitations. See
§1.
274–2(f)(2)(iv)(b)oftheIncomeTax
Reg
ulations.
If the employe
r treats the reimburse-
ment as compen
sation and wages, the em-
ployee may be a
ble to deduct the expense
as an employee
business expense. The
employee bear
s the expense and is sub-
ject to the de
duction limitations. Section
1.274–2(f)(
2)(iv)(b)(1). The employer
deducts an ex
pense for compensation,
which is not s
ubject to the deduction
limitation
s under section 274. Section
1.274–2(f)
(2)(iv)(b)(2); see also section
162.
The section
274(e)(3) exception also
applies if t
he taxpayer performs services
for a person
other than an employer and
the taxpay
er accounts (substantiates, as re-
quired by s
ection 274(d)) to that person.
Section 27
4(e)(3)(B). Therefore, in a re-
imburseme
nt or other expense allowance
arrangeme
nt in which a client or customer
reimburs
es the expenses of an indepen-
dent cont
ractor, the deduction limitations
do not app
ly to the independent contrac-
tor to the
extent the independent contrac-
tor acco
unts to the client by substantiat-
ing the e
xpenses as required by section
274(d).
If the independent contractor is
subject
to the deduction limitations, the
limitat
ions do not apply to the client. See
§1.274
–2(f)(2)(iv)(a).
TLCappl
iedtheserulestoareimburse-
ment ar
rangement involving three parties
in the t
rucking industry. In some cases,
truck d
rivers are paid wages and aper diem
meals a
llowance by a company that leases
the dri
vers to a client trucking company.
The cl
ient trucking company pays the leas-
ing co
mpany for the driver’s expenses plus
an add
itional fee, and the parties deduct
their
respective expenses. Under section
274(e
)(3), if the parties have a reimburse-
ment
or other expense allowance arrange-
ment
, the section 274(n) limitation applies
to on
ly one party.
TLC w
as a leasing company that paid
truc
kdriversaper diemallowance that
it di
d not treat as compensation. TLC
bill
ed the client leasing the drivers for the
dri
vers’ wages andper diemallowances,
and
the client paid TLC. The Tax Court ap-
pli
ed the section 274(n) limitation to TLC
as t
he drivers’ common law employer sub-
jec
t to section 274(e)(3)(A).
The
Eighth Circuit stated that the Tax
Cou
rt should have considered the sec-
August 20, 20123112012–34 I.R.B.

tion 274(e)(3)(B) exception between TLC
and the client. TLC was providing ser-
vices to its clients under a reimbursement
or other expense allowance arrangement
and accounted to the client. Therefore,
TLC qualified for the exception in sec-
tion 274(e)(3)(B) and the incidence of the
section 274(n) limitation was on the client
that bore theper diemexpense.
Rev. Rul. 2008–23 acquiesces in the
result inTLCand similarly holds that the
party that ultimately bears the expense in
a three-party reimbursement arrangement
is subject to the section 274(n) limitation.
The revenue ruling clarifies that a party’s
status as a common law employer is not
relevant to the section 274(n) analysis,
which the Eighth Circuit’s opinion could
be read to imply.
Rev. Rul. 2008–23 clarifies another
issueraisedbytheTLCopinion. To define
the termreimbursement or other expense
allowance arrangementfor purposes
of section 274(e)(3),the Eighth Circuit
looked to §1.274–2(f)(2)(iv)(a), which
provides that the termreimbursement or
other expense allowance arrangement
in section 274(e)(3) has the same mean-
ingasinsection62(2)(A)(dealingwith
employee business expenses, later renum-
bered 62(a)(2)(A)), but without regard to
whether the taxpayer is an employee of the
person for whom the taxpayer provides
services. Thus,TLCdefined reimburse-
ment or other expense allowance arrange-
ment for purposes of section 274(e)(3)
by reference to section 62(a)(2)(A) and
the regulations at §1.62–2, which provide
the rules for theemployeereimbursement
arrangements called accountable plans.
TheTLCcourt’s definition is inaccurate to
the extent it relies on the accountable plan
rules, which coveremployeereimburse-
ment arrangements only, in determining
the existence of a reimbursement or other
expense allowance arrangement for pur-
poses of identifying who bears the expense
under section 274(e)(3)(B).
Rev. Rul. 2008–23 clarifies that the
§1.274–2(f)(2)(iv)(a) reference to sec-
tion 62(2)(A) predates the enactment of
section 62(c), which addresses certain ar-
rangements not treated as reimbursement
arrangements, and the accountable plan
regulations, which govern employer-em-
ployee reimbursement arrangements and
their employment tax consequences.
Therefore, Rev. Rul. 2008–23 holds that
the section 274(e)(3) exception may apply
to an expense reimbursement arrangement
without regard to whether it is an account-
able plan.
Explanation of Provisions
1.Definition of Reimbursement or Other
Expense Allowance Arrangement
The focus of the accountable plan rules
under section 62(c)and the applicable
regulations is the taxability of reimburse-
ments and allowances paid to employees
and their treatment for employment tax
purposes. The purpose of the rules un-
der section 274(e)(3) is to provide an
exception to the section 274(a) and (n)
deduction limitations. Given these dif-
ferent purposes, the proposed regulations
amend §1.274–2(f)(2)(iv)(a) to provide
an express definition ofreimbursement or
other expense allowance arrangementfor
purposes of section 274(e)(3) independent
of the definition in section 62(c).
Under the proposed regulations, a reim-
bursement or other expense allowance ar-
rangement involving employees is an ar-
rangement under which an employee re-
ceives an advance, allowance, or reim-
bursement from a payor (the employer, its
agent, or a third party) for expenses the em-
ployee pays or incurs in performing ser-
vices as an employee. A reimbursement or
other expense allowance arrangement in-
volving persons that are not employees is
an arrangement under which an indepen-
dent contractor receives an advance, al-
lowance, or reimbursement from a client
or customer for expenses the independent
contractor pays or incurs in performing
services if either (1) a written agreement
between the parties expressly provides that
the client or customer will reimburse the
independent contractor for expenses that
are subject to the deduction limitations, or
(2) a written agreement between the parties
expressly identifies the party that is subject
to the limitations under §1.274–2(a) — (e)
and section 274(n). Specific comments are
requested on the definition of reimburse-
ment or other expense allowance arrange-
ment and on alternative definitions or ap-
proaches that would ensure that the deduc-
tion limitations apply to one of the parties
to an expense reimbursement arrangement.
2.Two-Party Reimbursement
Arrangements
The proposed regulations clarify that
the rules for applying the exceptions to
the section 274(a) and (n) deduction lim-
itations apply to reimbursement or other
expense allowance arrangements with em-
ployees, whether or not a payor is an em-
ployer. Under the proposed regulations, a
payor includes an employer, an agent of
the employer, or a third party. For ex-
ample, either an independent contractor
or a client or customer may be a payor
of a reimbursement arrangement. Thus,
any party that reimburses an employee is a
payor and bears the expense if the payment
is not treated as compensation and wages
to the employee.
In the case of a reimbursement or other
expense allowance arrangement between
an independent contractor and a client or
customer that includes an agreement ex-
pressly providing that the client or cus-
tomer will reimburse the independent con-
tractor for expenses that are subject to the
deduction limitations, the deduction limi-
tations do not apply to an independent con-
tractor that accounts to the client within
the meaning of section 274(d) and the as-
sociated regulations, but they do apply to
the independent contractor and not to the
client if the independent contractor fails to
account to the client. Alternatively, the
parties may enter into an express agree-
ment identifying the party that is subject
to the deduction limitations.
3.Multiple-Party Reimbursement
Arrangements
The proposed regulations include an
example illustrating how the rules apply
to multiple-party reimbursement arrange-
ments. Multiple-party reimbursement
arrangements are separately analyzed
as a series of two-party reimbursement
arrangements. Thus, for example, an ar-
rangement in which (1) an employee pays
or incurs an expense subject to limitation,
(2) the employee is reimbursed for that ex-
pense by another party (the initial payor),
and (3) a third party reimburses the ini-
tial payor’s payment to the employee, is
analyzed as two two-party reimbursement
arrangements: one arrangement between
the employee and the initial payor, and
another arrangement between the initial
2012–34 I.R.B.312August 20, 2012

payor and the third party. Examples il-
lustrate that the limitations apply to the
party that receives an accounting and that
ultimately bears the expense.
Effective/Applicability Date
The regulations are proposed to apply to
expenses paid or incurred in taxable years
beginning on or after the date these regu-
lations are published as final regulations in
theFederal Register. However, taxpay-
ers may apply these regulations for taxable
years beginning before the date these reg-
ulations are publishedas final regulations
in theFederal Registerfor which the pe-
riod of limitations under section 6511 has
not expired.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a significant
regulatory action as defined in Executive
Order 12866, as supplemented by Execu-
tive Order 13563. Therefore, a regulatory
assessment is not required. It also has
been determined thatsection 553(b) of the
Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these reg-
ulations, and because the regulations do
not impose a collection of information
on small entities, the Regulatory Flexi-
bility Act (5 U.S.C. chapter 6) does not
apply. Pursuant to section 7805(f) of the
Code, this notice of proposed rulemaking
has been submitted to the Chief Counsel
for Advocacy of the Small Business
Administration for comment on its impact
on small business.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are sub-
mitted timely to the IRS as prescribed in
this preamble under the “Addresses” head-
ing. The IRS and Treasury Department re-
quest comments on all aspects of the pro-
posed rules. All comments will be avail-
able atwww.regulations.govor upon re-
quest.
A public hearing will be scheduled if
requested in writing by any person that
timely submits written comments. If a
public hearing is scheduled, notice of the
date, time, and place for the hearing will
be published in theFederal Register.
Drafting Information
The principal authors of these pro-
posed regulations are Jeffrey T. Rodrick
and Patrick Clinton of the Office of
Associate Chief Counsel (Income Tax &
Accounting). However, other personnel
from the IRS and Treasury Department
participated in their development.
*****
Proposed Amendment to the
Regulations
Accordingly, 26 CFR part 1 is proposed
to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding an entry in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.274–2 also issued under
26 U.S.C. 274(o). * * *
Par. 2. Section 1.274–2 is amended
by revising paragraph (f)(2)(iv) to read as
follows:
§1.274–2 Disallowance of deductions
for certain expenses for entertainment,
amusement, recreation, or travel.
*****
(f) * * *
(2) * * *
(iv)Reimbursed entertainment, food,
or beverage expenses—(A)Introduction.
In the case of any expenditure for enter-
tainment, amusement, recreation, food, or
beverages made by one person in perform-
ing services for another person (whether
or not the other person is an employer)
under a reimbursement or other expense
allowance arrangement, the limitations on
deductions in paragraphs (a) through (e)
of this section and section 274(n)(1) apply
either to the person who makes the expen-
diture or to the person who actually bears
the expense, but not to both. If an expen-
diture of a type described in this paragraph
(f)(2)(iv) properly constitutes a dividend
paid to a shareholder, unreasonable com-
pensation paid to an employee, a personal
expense, or other nondeductible expense,
nothing in this exception prevents disal-
lowance of the expenditure to the taxpayer
under other provisions of the Code.
(B)Reimbursement arrangements in-
volving employees. In the case of an
employee’s expenditure for entertainment,
amusement, recreation, food, or beverages
in performing services as an employee
under a reimbursement or other expense
allowance arrangement with a payor (the
employer, its agent, or a third party), the
limitations on deductions in paragraphs
(a) through (e) of this section and section
274(n)(1) apply—
(1) To the employee to the extent the
employer treats the reimbursement or
other payment of the expense on the em-
ployer’s income tax return as originally
filed as compensation paid to the em-
ployee and as wages to the employee for
purposes of withholding under chapter 24
(relating to collection of income tax at
source on wages); and
(2) To the payor to the extent the re-
imbursement or other payment of the
expense is not treated as compensation and
wages paid to the employee in the man-
ner provided in paragraph (f)(2)(iv)(B)(1)
of this section (however, see paragraph
(f)(2)(iv)(C) of this section if the payor
receives a payment from a third party
that may be treated as a reimbursement
arrangement underthat paragraph).
(C)Reimbursement arrangements in-
volving persons that are not employees.In
the case of an expense for entertainment,
amusement, recreation, food, or beverages
of a person who is not an employee (re-
ferred to as an independent contractor) in
performing services for another person (a
client or customer) under a reimbursement
or other expense allowance arrangement
with the person, the limitations on deduc-
tions in paragraphs (a) through (e) of this
section and section 274(n)(1) apply to the
party expressly identified in an agreement
between the parties as subject to the limita-
tions. If an agreement between the parties
does not expressly identify the party sub-
ject to the limitations, the limitations ap-
ply—
(1) To the independent contractor
(which may be a payor described in para-
graph (f)(2)(iv)(B) of this section) to the
extent the independent contractor does not
account to the client or customer within
the meaning of section 274(d) and the
associated regulations; and
August 20, 20123132012–34 I.R.B.

(2) To the client or customer if the in-
dependent contractor accounts to the client
or customer within the meaning of section
274(d) and the associated regulations. See
also §1.274–5.
(D)Reimbursement or other expense
allowance arrangement.Thetermreim-
bursement or other expense allowance ar-
rangementmeans—
(1) For purposes of paragraph
(f)(2)(iv)(B) of this section, an arrange-
ment under which an employee receives
an advance, allowance, or reimbursement
from a payor (the employer, its agent, or
a third party) for expenses the employee
pays or incurs; and
(2) For purposes of paragraph
(f)(2)(iv)(C) of this section, an arrange-
ment under which an independent con-
tractor receives an advance, allowance, or
reimbursement from a client or customer
for expenses the independent contractor
pays or incurs if either—
(a) A written agreement between the
parties expressly states that the client or
customer will reimburse the independent
contractor for expenses that are subject to
the limitations on deductions in paragraphs
(a) through (e) of this section and section
274(n)(1); or
(b) A written agreement between the
parties expressly identifies the party sub-
ject to the limitations.
(E)Examples. The following examples
illustrate the application of this paragraph
(f)(2)(iv).
Example 1. (i) Y, an employee, performs services
under an arrangement in which L, an employee leas-
ing company, pays Y aper diemallowance of $10x
for each day that Y performs services for L’s client,
C, while traveling away from home. Theper diem
allowance is a reimbursement of travel expenses for
food and beverages that Y pays in performing ser-
vices as an employee. L enters into a written agree-
ment with C under which C agrees to reimburse L
for any substantiated reimbursements for travel ex-
penses, including meals, that L pays to Y. The agree-
ment does not expressly identify the party that is sub-
ject to the deduction limitations. Y performs ser-
vices for C while traveling away from home for 10
days and provides L with substantiation that satisfies
the requirements of section 274(d) of $100x of meal
expenses incurred by Y while traveling away from
home. L pays Y $100x to reimburse those expenses
pursuant to their arrangement. L delivers a copy of
Y’s substantiation to C. C pays L $300x, which in-
cludes $200x compensation for services and $100x as
reimbursement of L’s payment of Y’s travel expenses
for meals. Neither L nor C treats the $100x paid to Y
as compensation or wages.
(ii) Under paragraph (f)(2)(iv)(D)(1)ofthissec-
tion, Y and L have established a reimbursement or
other expense allowance arrangement for purposes of
paragraph (f)(2)(iv)(B) ofthis section. Because the
reimbursement payment is not treated as compensa-
tionandwagespaidtoY,undersection274(e)(3)(A)
and paragraph (f)(2)(iv)(B)(1)ofthissection,Yisnot
subject to the section 274 deduction limitations. In-
stead, under paragraph (f)(2)(iv)(B)(2)ofthissection,
L, the payor, is subject to the section 274 deduction
limitations unless L can meet the requirements of sec-
tion 274(e)(3)(B) and paragraph (f)(2)(iv)(C) of this
section.
(iii) Because the agreement between L and C
expressly states that C will reimburse L for expenses
for meals incurred by employees while traveling
away from home, under paragraph (f)(2)(iv)(D)(2)(a)
of this section, L and C have established a reim-
bursement or other expense allowance arrangement
for purposes of paragraph (f)(2)(iv)(C) of this sec-
tion. L accounts to C for C’s reimbursement in the
mannerrequiredbysection274(d)bydeliveringto
C a copy of the substantiation L received from Y.
Therefore, under section 274(e)(3)(B) and paragraph
(f)(2)(iv)(C)(2) of this section, C and not L is subject
to the section 274 deduction limitations.
Example 2. (i) The facts are the same as inExam-
ple 1except that, under the arrangements between Y
and L and between L and C, Y provides the substan-
tiation of the expenses directly to C, and C pays the
per diem directly to Y.
(ii) Under paragraph (f)(2)(iv)(D)(1)ofthissec-
tion, Y and C have established a reimbursement or
other expense allowance arrangement for purposes
of paragraph (f)(2)(iv)(C) of this section. Because
Y substantiates directly to C and the reimbursement
payment was not treated as compensation and wages
paid to Y, under section 274(e)(3)(A) and paragraph
(f)(2)(iv)(C)(1) of this section Y is not subject to the
section 274 deduction limitations. Under paragraph
(f)(2)(iv)(C)(2) of this section, C, the payor, is sub-
ject to the section 274 deduction limitations.
Example 3. (i)ThefactsarethesameasinEx-
ample 1, except that the written agreement between
L and C expressly provides that the limitations of this
section will apply to C.
(ii) Under paragraph (f)(2)(iv)(D)(2)(b) of this
section, L and C have established a reimbursement or
other expense allowance arrangement for purposes
of paragraph (f)(2)(iv)(C) of this section. Because
the agreement provides that the 274 deduction lim-
itations apply to C, under section 274(e)(3)(B) and
paragraph (f)(2)(iv)(C) of this section, C and not L is
subject to the section 274 deduction limitations.
Example 4. (i)ThefactsarethesameasinEx-
ample 1, except that the agreement between L and C
does not provide that C will reimburse L for travel
expenses.
(ii) The arrangement between L and C is not a
reimbursement or other expense allowance arrange-
ment within the meaning of section 274(e)(3)(B) and
paragraph (f)(2)(iv)(D)(2) of this section. Therefore,
even though L accounts to C for the expenses, L is
subject to the section 274 deduction limitations.
(F)Effective/applicability date.This
paragraph (f)(2)(iv) applies to expenses
paid or incurred in taxable years beginning
after the date these regulations are pub-
lished as final regulations in theFederal
Register.
*****
Par. 3. Section 1.274–8 is revised to
read as follows:
§1.274–8 Effective/applicability date.
Except as provided in §§1.274–2(a),
1.274–2(e), 1.274–2(f)(2)(iv)(F) and
1.274–5, §§1.274–1 through 1.274–7
apply to taxable years ending after
December 31, 1962.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
(Filed by the Office of the Federal Register on July 31, 2012,
8:45 a.m., and published in the issue of the Federal Register
for August 1, 2012, 77 F.R. 45220)
U.S.-Belgium Agreement
Regarding Taxes Imposed by
Belgian Municipalities
Announcement 2012–30
The following is a copy of the Com-
petent Authority Agreement entered into
by the competent authorities of the United
States and Belgium providing that addi-
tional taxes established by Belgian mu-
nicipalities and conurbations on the Bel-
gian income tax are covered under Article
2 (Taxes Covered) of the Convention Be-
tween the Government of the United States
of America and the Government of the
Kingdom of Belgium for the Avoidance of
Double Taxation and the Prevention of Fis-
cal Evasion with Respect to Taxes on In-
come signed at Brussels on November 27,
2006.
The text of the Competent Authority
Agreement is as follows:
COMPETENT AUTHORITY
MUTUAL AGREEMENT
The competent authorities of the United
States and Belgium hereby enter into the
following agreement (“the Agreement”)
regarding the taxes on income imposed on
behalf of the political subdivisions or local
authorities of either Contracting State cov-
ered under Article 2 (Taxes Covered) of
the Convention Between the Government
of the United States of America and of the
Kingdom of Belgium for the Avoidance of
2012–34 I.R.B.314August 20, 2012

Double Taxation and the Prevention of Fis-
cal Evasion with Respect to Taxes on In-
come signed at Brussels on November 27,
2006 (the “Convention”). The Agreement
isenteredintounderparagraph3ofArticle
24 (Mutual Agreement Procedure).
Paragraph3ofArticle2(TaxesCov-
ered) of the Convention provides:
The existing taxes to which this Con-
vention shall apply are:
a) in the case of Belgium:
i) the individual income tax;
ii) the corporate income tax;
iii) the income tax on legal
entities; and
iv) the income ta
xon
non-residen
ts;
including the prepayments and
the surcharges on these taxes and
prepayments;
b) in the case of the United States:
i) the Federal income taxes
imposedbytheInternal
Revenue Code (but
excluding social security
taxes); and
ii) the Federal excise taxes
imposed with respect to
private foundations.
The competent
authorities agree that,
in the case of
Belgium, the taxes cov-
ered under su
bparagraph 3(a) of Article 2
(Taxes Covered) of the Convention include
the additional taxes established by Belgian
municipalities and conurbations on the in-
come tax.
Agreed to by the undersigned compe-
tent authorities on:
Michael DanilackSandra Knaepen
United States Competent AuthorityBelgian Competent Authority
Date: April 28, 2011Date: May 2, 2011
U.S.-Canada Agreement
Regarding OECD Report on
the Attribution of Profits to
Permanent Establishments
Announcement 2012–31
The following is a copy of the Com-
petent Authority Agreement entered into
by the competent authorities of the United
States and Canada regarding application of
the principles set forth in the Organisation
for Economic Cooperation and Develop-
ment Report on the Attribution of Prof-
its to Permanent Establishments in the in-
terpretation of Article VII (Business Prof-
its) of the Convention between Canada and
the United States of America with Respect
to Taxes on Income and on Capital done
at Washington on September 26, 1980, as
amended by the Protocols done on June 14,
1983, March 28, 1994, March 17, 1995,
July 29, 1997, and September 17, 2007.
The text of the Competent Authority
Agreement is as follows:
COMPETENT AUTHORITY
MUTUAL AGREEMENT
The competent authorities of the United
States and Canada hereby enter into the
following agreement regarding the appli-
cation of Article VII (Business Profits) of
the Convention between Canada and the
United States of America with Respect to
Taxes on Income and on Capital done at
Washington on September 26, 1980, as
amended by the Protocols done on June 14,
1983, March 28, 1994, March 17, 1995,
July 29, 1997, and September 17, 2007
(the “Convention”) in view of the agreed
understanding set out in paragraph 9 of
the Second Exchange of Notes to the Fifth
Protocol to the Convention and annexed to
the Convention as Annex B. This agree-
ment is entered into under paragraph 3 of
Article XXVI (Mutual Agreement Proce-
dure) of the Convention.
With reference to Article VII of the
Convention, paragraph 9 of Annex B of
the Convention refers to the applicability
of the Organisation for Economic Coop-
eration and Development (the “OECD”)
Transfer Pricing Guidelines, by analogy,
for the purposes of determining the busi-
ness profits attributable to a permanent es-
tablishment. The OECD Report on the
Attribution of Profits to Permanent Estab-
lishments (the “Report”) was finalized in
2008 and revised in 2010 without change
to the conclusions of the Report (the “au-
thorized OECD approach” (“full AOA”)).
The competent authorities of the United
States and Canada understand that para-
graph 9 of Annex B of the Convention in-
dicates that the principles of the full AOA
as set out in the Report would apply with-
out waiting for the Report to be finalized.
The competent authorities of the United
States and Canada therefore agree that, un-
der paragraph 9 of Annex B of the Conven-
tion, Article VII of the Convention is to be
interpreted in a manner entirely consistent
with the full AOA as set out in the Report.
All other provisions of the Convention that
require a determination of whether an asset
or amount is effectively connected or at-
tributable to a permanent establishment are
also to be interpreted in a manner entirely
consistent with the full AOA as set out in
the Report. Further explanation of para-
graph 9 and its effects on the interpretation
and application of Article VII(2) and (3) of
the Convention is found in the U.S. Trea-
sury Department’s Technical Explanation
of the Fifth Protocol to the Convention, the
contents with respect to which the Govern-
ment of Canada subscribes.
The competent authorities understand
that relief of double taxation continues to
be subject to the provisions and limita-
tions of each country’s domestic law, as
provided in Article XXIV (Elimination of
Double Taxation).
August 20, 20123152012–34 I.R.B.

This agreement generally applies to tax-
able years that begin on or after January 1,
2012; however, a taxpayer may choose to
apply the entirety of this agreement in both
Contracting States for all taxable years be-
ginning after December 31, 2008.
Agreed:
Michael DanilackCosta Dimitrakopoulos
United States Competent AuthorityCanadian Competent Authority
Deputy Commissioner (International)Director General
Large Busines
s & International Division
Legislative P
olicy Directorate
Date: June 18, 2012Date: June 26, 2012
2012–34 I.R.B.316August 20, 2012

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.
August 20, 2012i2012–34 I.R.B.

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

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2012–27 through 2012–34
Announcements:
83-196
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
85-141
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
Notices:
2009-24
Amplified by
Notice 2012-51, 2012-33 I.R.B.150
2012-51
Amplified by
Notice 2012-51, 2012-33 I.R.B.150
Proposed Regulations:
REG-100276-97
Withdrawn by
Ann. 2012-27, 2012-27 I.R.B.10
Revenue Procedures:
95-15
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
98-32
Modified and superseded by
Rev. Proc. 2012-33, 2012-34 I.R.B.272
2007-38
Modified and superseded by
Rev. Proc. 2012-32, 2012-34 I.R.B.267
2011-40
Superseded by
Rev. Proc. 2012-30, 2012-33 I.R.B.165
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin 2012–26, dated June 25, 2012.
August 20, 2012iii2012–34 I.R.B.

Internal Revenue Service
W
ashington,DC20224
Official Business
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