Internal Revenue Bulletin 2012-41 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 201
2-41
October 9, 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
Rev. Rul. 2012–27, page 435.
Fringe benefits aircraft valuation formula.For purposes
of section 1.61–21(g) of the Income Tax Regulations, relating
to the rule for valuing non-commercial flights on employer-pro-
vided aircraft, the Standard Industry Fare Level (SIFL) cents-
per-mile rates and terminal charge in effect for the second half
of 2012 are set forth.
Rev. Proc. 2012–39, page 470.
This procedure modifies the rules under section 446 of the
Code in Rev. Proc. 2011–14, 2011–4 I.R.B. 330, and Rev.
Proc. 97–27, 1997–1 C.B. 680, regarding certain changes
in method of accounting by taxpayers that engage in a trans-
action to which section 381(a) applies that occurs on or after
August 31, 2011. The procedure also modifies section 3.09
of the APPENDIX of Rev. Proc. 2011–14 regarding a change
in method of accounting described in Rev. Proc. 2011–43 for
taxpayers in the business of transporting, delivering, or selling
electricity. Finally, the procedure clarifies and modifies section
8.04 of the APPENDIX of Rev. Proc. 2011–14 regarding a
change in method of accounting for amounts paid or incurred
for the installation of energy efficient commercial building prop-
erty under section 179D. Rev. Proc. 97–27 modified. Rev.
Proc. 2011–14 clarified and modified.
EXCISE TAX
Notice 2012–58, page 436.
This notice describes safe harbor methods that employers may
use to determine which employees are treated as full-time em-
ployees for purposes of the shared employer responsibility pro-
visions of section 4980H of the Code.
Notice 2012–59, page 443.
This notice provides temporary guidance regarding the 90-day
waiting period limitation in Public Health Service Act (PHS Act)
section 2708.
ADMINISTRATIVE
Notice 2012–60, page 445.
Per capita payments from proceeds of settlements of
Indian tribal trust cases.This notice advises taxpayers that
per capitapayments to Indian tribal members made from the
proceeds of the settlement of certain litigation between the
United States and Indian tribes are excluded from gross in-
come.
Rev. Proc. 2012–37, page 449.
This procedure contains updates to Publication 1239,Speci-
fications for Filing Form 8027, Employer’s Annual Information
Return of Tip Income and Allocated Tips, Electronically,revised
(9–2012).
Finding Lists begin on page ii.

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.
October 9, 20122012–41 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.
Fringe benefi
ts aircraft valuation for-
mula.For pur
poses of section 1.61–21(g)
of the Income
Tax Regulations, relating
to the rule fo
r valuing non-commercial
flights on em
ployer-provided aircraft,
the Standard
Industry Fare Level (SIFL)
cents-per-
mile rates and terminal charge
in effect fo
r the second half of 2012 are
set forth.
Rev. Rul. 2012
–27
For purposes o
f the taxation of fringe
benefits unde
rsection61oftheInter-
nal Revenue Co
de, section 1.61–21(g) of
the Income Ta
x Regulations provides a
rule for valu
ing noncommercial flights
on employer-
provided aircraft. Section
1.61–21(g)(
5) provides an aircraft valua-
tion formul
a to determine the value of such
flights. Th
e value of a flight is determined
under the ba
se aircraft valuation formula
(also known
as the Standard Industry Fare
Level form
ula or SIFL) by multiplying
the SIFL cents
-per-mile rates applicable
for the period
during which the flight was
takenbytheap
propriate aircraft multiple
provided in s
ection 1.61–21(g)(7) and then
adding the ap
plicable terminal charge. The
SIFL cents-p
er-mile rates in the formula
and the termi
nal charge are calculated by
the Departm
ent of Transportation and are
reviewed se
mi-annually.
The followi
ng chart sets forth the termi-
nal charge a
nd SIFL mileage rates:
Period During Which
the Flight Is Taken
Terminal
Charge
SIFL Mileage
Rates
7/1/12 - 12/31/12
$46.97
Up to 500 miles
= $.2569 per mile
501-1500 mi
les
= $.1959 per
mile
Over 1500 miles
= $.1884 per mile
DRAFTING IN
FORMATION
The princi
pal author of this revenue
ruling is K
athleen Edmondson of the
Office of Di
vision Counsel/Associate
Chief Couns
el (Tax Exempt/Government
Entities)
.For further information
regarding
this revenue ruling, contact
Ms. Edmonds
on at (202) 622–0047 (not a
toll-free c
all).
2012–41 I.R.B.435October 9, 2012

Part III. Administrative, Procedural, and Miscellaneous
Determining Full-Time
Employees for Purposes
of Shared Responsibility for
Employers Regarding Health
Coverage (Section 4980H)
Notice 2012–58
I. PURPOSE AND OVERVIEW
This notice describes safe harbor meth-
ods that employers may use (but are not
required to use) to determine which em-
ployees are treated as full-time employees
for purposes of the shared employer re-
sponsibility provisions of § 4980H of the
Internal Revenue Code (Code). Specifi-
cally, the administrative guidance in this
notice, modifying and expanding on pre-
vious guidance, includes a safe harbor
method that employers may apply to spec-
ified newly-hired employees.
As described more fully below, this no-
tice —
•Expands the safe harbor method de-
scribed in a previous notice to provide
employers the option to use a look-
back measurement period of up to 12
months to determine whether new vari-
able hour employees or seasonal em-
ployees are full-time employees, with-
out being subject to a payment under
§ 4980H for this period with respect
to those employees. An employee is a
variable hour employee if, based on the
facts and circumstances at the date the
employee begins providing services to
the employer (the start date), it cannot
be determined that the employee is rea-
sonably expected to work on average at
least 30 hours per week. (The 30 hours
per week average reflects the statu-
tory definition of full-time employee
in § 4980H(c)(4) and is the definition
of “full-time employee” as used in this
notice.) Seasonal employee is defined
in section III.D.5, below.
•Provides employers the option to use
specified administrative periods (in
conjunction with specified measure-
ment periods) for ongoing employees
(as defined in section III.A, below)
and certain newly hired employees;
•Facilitates a transition for new employ-
ees from the determination method
the employer chooses to use for them
to the determination method the em-
ployer chooses to use for ongoing
employees; and
•Provides employers reliance, at least
through the end of 2014, on the guid-
ance contained in this notice and on
the following approaches described in
prior notices:
1. for ongoing employees, an em-
ployer will be permitted to use
measurement and stability periods
of up to 12 months;
2. for new employees who are
reasonably expected to work
full-time, an employer that main-
tains a group health plan that
meets certain requirements will
not be subject to an assessable
payment under § 4980H for failing
to offer coverage to the employee
for the initial three months of em-
ployment; and
3. for all employees, an employer
will not be subject to an assess-
able payment under § 4980H(b)
for an employee if the coverage
offered to that employee was af-
fordable based on the employee’s
Form W–2 wages reported in Box
1(oftenreferredtoastheafford-
ability safe harbor).
This guidance is intended to encour-
age employers to continue providing and
potentially to expand group health plan
coverage for their employees by per-
mitting employers to adopt reasonable
procedures to determine which employees
are full-time employees without becoming
liable for a payment under § 4980H, to
protect employees from unnecessary cost,
confusion, and disruption of coverage,
and to minimize administrative burdens
on the Affordable Insurance Exchanges
(Exchanges).
Simultaneously with the issuance of
this notice, the Department of the Trea-
sury, the Department of Labor (DOL), and
the Department of Health and Human Ser-
vices (HHS) (the Departments) are jointly
providing administrative guidance under
§ 2708 of the Public Health Service Act
(PHS Act).
1
PHSAct§2708appliesto
group health plans and group health insur-
ance issuers and provides that any waiting
period under a group health plan must not
exceed 90 days. To clarify how the PHS
Act § 2708 90-day waiting period limita-
tion coordinates with § 4980H, this notice
applies portions of the Departments’ sep-
arate and simultaneous PHS Act § 2708
guidance. DOL and HHS concur in the
application of PHS Act § 2708 in this
notice.
This notice consists of a background
section briefly summarizing the § 4980H
and PHS Act § 2708 statutory framework
and the administrative guidance issued to
date (section II); a description of the safe
harbors available for employers for deter-
mining full-time employee status in the
case of ongoing employees and newly-
hired variable hour and seasonal employ-
ees (including the transition from newly-
hired to ongoing employees and a series
of examples illustrating how the safe har-
bors apply) (section III); a description of
the reliance provided to employers through
at least 2014 (section IV); and a request for
comments (section V).
II. BACKGROUND
A.Section 4980H
Section 4980H was added to the Code
by§1513ofthePatientProtectionandAf-
fordable Care Act (Affordable Care Act)
(enacted March 23, 2010, Pub. L. No.
111–148) and amended by § 1003 of the
Health Care and Education Reconciliation
Act of 2010 (enacted March 30, 2010, Pub.
L. No. 111–152).
2
Section 4980H applies
to “applicable large employers” (generally,
employers who employed at least 50 full-
time employees, including full-time equiv-
alent employees, onbusiness days during
the preceding calendar year).
Generally, § 4980H provides that an
applicable large employer is subject to an
1
Notice 2012–59, DOL Technical Release 2012–02 andHHS Bulletin titled Guidance on 90-Day Waiting Period Limitation under Public Health Service Act §2708.
2
Section 4980H was further amended by section 1858(b)(4) of the Department ofDefense and Full-Year Continuing Appropriations Act, 2011 (enacted April 15, 2011, Pub. L. No. 112–10),
effective for months beginning after December 31, 2013.
October 9, 20124362012–41 I.R.B.

assessable payment if either (1) the em-
ployer fails to offer to its full-time employ-
ees (and their dependents) the opportunity
to enroll in minimum essential coverage
3
under an eligible employer-sponsored
plan and any full-time employee is cer-
tified to receive a premium tax credit
or cost-sharing reduction (§ 4980H(a)),
or (2) the employer offers its full-time
employees (and their dependents) the op-
portunity to enroll in minimum essential
coverage and one or more full-time em-
ployees is certified to receive a premium
tax credit or cost-sharing reduction (gen-
erally because the employer’s coverage
either is not affordable within the meaning
of § 36B(c)(2)(C)(i) or does not provide
minimum value within the meaning of
§ 36B(c)(2)(C)(ii)) (§ 4980H(b)). Under
§ 36B(c)(2)(C)(i), coverage under an em-
ployer-sponsored plan is affordable to a
particular employee if the employee’s re-
quired contribution (within the meaning of
§ 5000A(e)(1)(B)) to the plan does not ex-
ceed 9.5 percent of the employee’s house-
hold income for the taxable year. Section
4980H(c)(4) provides that a full-time em-
ployee with respect to any month is an
employee who is employed on average at
least 30 hours of service per week.
4
B.PHS Act Section 2708
PHS Act § 2708
5
provides that, for
plan years beginning on or after January 1,
2014, a group health plan or group health
insurance issuer shall not apply any
waiting period that exceeds 90 days. PHS
Act § 2704(b)(4), ERISA § 701(b)(4), and
Code § 9801(b)(4) define a waiting period
to be the period that must pass with respect
to an individual before the individual is
eligible to be covered for benefits under
the terms of the plan. In 2004 regulations,
6
the Departments defined a waiting period
to mean the period that must pass before
coverage for an employee or dependent
who is otherwise eligible to enroll under
the terms of a group health plan can
become effective.
C.Notice 2011–36
Public comments were requested and
received on a number of issues and poten-
tial approaches to interpreting and apply-
ing § 4980H and PHS Act § 2708. In par-
ticular, Notice 2011–36, 2011–21 I.R.B.
792, described and requested comments
on a possible approach that would per-
mit employers to use an optional “look-
back/stability period safe harbor” to deter-
mine whether ongoing (rather than newly-
hired) employees are full-time employees
for purposes of § 4980H. The use of this
safe harbor approach would be voluntary.
Under the look-back/stability period
safe harbor method, an employer would
determine each employee’s full-time sta-
tus by looking back at a defined period
of not less than three but not more than
12 consecutive calendar months, as cho-
sen by the employer (the measurement
period), to determine whether during the
measurement period the employee aver-
aged at least 30 hours of service per week.
If the employee were determined to be a
full-time employee during the measure-
ment period, then the employee would be
treated as a full-time employee during a
subsequent “stability period,” regardless
of the employee’s number of hours of ser-
vice during the stability period, so long
as he or she remained an employee. For
an employee determined to be a full-time
employee during the measurement period,
the stability period would be a period of at
least six consecutive calendar months that
follows the measurement period and is no
shorter in duration than the measurement
period. If the employee were determined
not to be a full-time employee during the
measurement period,the employer would
be permitted to treat the employee as not
a full-time employee during a stability
period that followed the measurement
period, but the stability period could not
exceed the measurement period. Com-
ments on this approach were favorable.
D.Notice 2011–73
In Notice 2011–73, 2011–40 I.R.B.
474, Treasury and the IRS described a safe
harbor under which employers would not
be subject to an assessable payment under
§ 4980H(b) with respect to an employee
if the coverage offered to that employee
was affordable based on the employee’s
Form W–2 wages (as reported in Box 1)
instead of household income. Under the
safe harbor, an employer would not be
subject to a penalty under § 4980H(b) with
respect to an employee if the required con-
tribution for that employee was no more
than 9.5 percent of the employee’s Form
W–2 wages. The proposed affordability
safe harbor would apply only for purposes
of determining whether an employer is
subject to the assessable payment under
§ 4980H(b). For example, the safe harbor
would not affect an employee’s eligibility
for a premium tax credit under § 36B.
Treasury and the IRS requested and re-
ceived comments on the safe harbor, and
the comments were generally favorable.
Subsequently, Notice 2012–17, 2012–9
I.R.B. 430
7
, stated that, as described in
Notice 2011–73, Treasury and the IRS in-
tend to issue proposed regulations or other
guidance permitting employers to use an
employee’s Form W–2 wages (as reported
in Box 1) as a safe harbor in determining
the affordability of employer coverage.
E.Notice 2012–17
Notice 2012–17 also described and re-
quested comments on a potential approach
for determining the full-time status of new
employees for purposes of § 4980H if,
based on the facts and circumstances at the
start date, it cannot reasonably be deter-
mined whether the new employee is ex-
pected to work full-time because the em-
ployee’s hours are variable or otherwise
uncertain. Under the potential approach
described in Notice 2012–17, employers
would be given three months or, in certain
cases, six months, without incurring a pay-
3
Minimum essential coverage is defined in § 5000A(f) of the Code. The definition of “eligible employer-sponsored plan” in § 5000A(f)(2) applies for purposes of § 4980H.
4
For this purpose, proposed regulations are expected to provide (as stated in Notice 2011–36) that 130 hours of service in a calendar month would be treated as the monthly equivalent of 30
hours of service per week.
5
The Affordable Care Act adds section 715(a)(1) to the Employee Retirement Income Security Act (ERISA) and section 9815(a)(1) to the Code to incorporate the provisions of part A of
title XXVII of the PHS Act into ERISA and the Code, and to make them applicable to group health plans and health insurance issuers providing health insurance coverage in connection with
group health plans. The PHS Act sections incorporated by these references are sections 2701 through 2728. Accordingly, PHS Act § 2708 is subject to shared interpretive jurisdiction by
DOL, HHS, and Treasury.
6
26 CFR 54.9801–3(a)(3)(iii), 29 CFR 2590.701–3(a)(3)(iii), 45 CFR 146.111(a)(3)(iii).
7
Simultaneously with the issuance of Notice 2012–17, DOL and HHS issued parallel guidance. See DOL Technical Release 2012–01 and HHS FAQs issued February 9, 2012.
2012–41 I.R.B.437October 9, 2012

ment under § 4980H, to determine whether
a variable hour new employee is a full-time
employee.
In response to Notice 2012–17, com-
menters requested that employers be al-
lowed to use a look-back measurement pe-
riod of up to 12 months to determine the
status of new variable hour employees,
similar to the method permitted to deter-
mine the status of ongoing employees.
F.Revised Approach in This Notice
After considering the comments, Trea-
sury and the IRS are revising the approach
outlined in Notice 2012–17 for new vari-
able hour employees. Treasury and the
IRS anticipate that the revised approach,
which is generally similar to the approach
for ongoing employees, will be a flexible
and workable option for determining the
full-time status of new variable hour em-
ployees, and will provide employees and
employers with greater stability and pre-
dictability. Treasury and the IRS also are
providing a similar safe harbor for cer-
tain seasonal employees and are modify-
ing the rule for ongoing employees to pro-
vide greater flexibility by allowing use of
an administrative period, described below,
between the measurement and stability pe-
riods. This revised guidance is described
in section III, below.
Note that unless specified otherwise,
all references in this notice to an of-
fer of coverage to an employee refer to
an offer of minimum essential coverage
that is affordable within the meaning of
§ 36B(c)(2)(C)(i) (or is treated as afford-
able coverage under the Form W–2 safe
harbor described in section II.D of this
notice) and that provides minimum value
within the meaning of § 36B(c)(2)(C)(ii).
Also, whenever this notice states that cov-
erage must be offered to an employee by a
specified date, it means that the offer that
must be made to the employee, if accepted
by the employee, would result in the em-
ployee actually receiving coverage that is
effective as of the specified date. Absent
such an offer, the employer may be subject
to an assessable payment under § 4980H.
In addition, unless otherwise specified be-
low, solely for the purpose of the guidance
in this notice, the term “calendar month”
means one of the full months named in
the calendar (such as January, February
or March), and the term “month” means
the period from a day in one month to the
prior day of the following month (such as
fromJanuary15toFebruary14).
III. DETERMINING FULL-TIME
STATUS OF EMPLOYEES
A.Ongoing Employees: Safe Harbor
For ongoing employees, employers
generally will be permitted to use the safe
harbor method based upon measurement
and stability periods described in Notices
2011–36 and 2012–17. The measurement
period the employer chooses to apply to
ongoing employees is referred to in this
notice as the “standard measurement pe-
riod.”
An “ongoing employee” is generally an
employee who has been employed by the
employer for at least one complete stan-
dard measurement period. As stated in No-
tice 2011–36, different rules may apply to
employees who move into full-time status
during the year. Additional rules regard-
ing the treatment of employees who expe-
rience a change in employment status are
expected to be included in upcoming reg-
ulations.
Under the safe harbor method for on-
going employees, an employer determines
each ongoing employee’s full-time status
by looking back at the standard measure-
ment period (a defined time period of not
less than three but not more than 12 con-
secutive months, as chosen by the em-
ployer). The employer has the flexibility
to determine the months in which the stan-
dard measurement period starts and ends,
provided that the determination must be
made on a uniform and consistent basis
for all employees in the same category.
(See below in this section for permissible
categories.) For example, if an employer
chose a standard measurement period of
12 months, the employer could choose to
make it the calendar year, a non-calendar
plan year, or a different 12-month period,
such as one that ends shortly before the
start of the plan’s annual open enrollment
season. If the employer determines that
an employee averaged at least 30 hours
per week during the standard measurement
period, then the employer treats the em-
ployee as a full-time employee during a
subsequent “stability period”, regardless
of the employee’s number of hours of ser-
vice during the stability period, so long as
he or she remained an employee.
For an employee whom the employer
determines to be a full-time employee
during the standard measurement period,
the stability period would be a period of at
least six consecutive calendar months that
is no shorter in duration than the standard
measurement period and that begins af-
ter the standard measurement period (and
any applicable administrative period, as
discussed in section III.B, below). If the
employer determines that the employee
did not work full-time during the standard
measurement period, the employer would
be permitted to treat the employee as not
a full-time employee during the stability
period that follows, but is not longer than,
the standard measurement period.
Subject to the rules governing the re-
lationship between the length of the mea-
surement period and the stability period,
employers may use measurement periods
and stability periods that differ either in
length or in their starting and ending dates
for the following categories of employees:
(1) collectively bargained employees and
non-collectively bargained employees; (2)
salaried employees and hourly employees;
(3) employees of different entities; and
(4) employees located in different States.
(These categories are adapted from exist-
ing regulatory guidance and also reflect
public comments received in response to
Notice 2011–36.) The rules described in
this paragraph apply both to the standard
measurement periods described in this sec-
tion III.A and the initial measurement pe-
riods described below in section III.D.
B.Ongoing Employees: Option to
Use Administrative Period Under Safe
Harbor
Because employers may need time be-
tween the standard measurement period
and the associated stability period to de-
termine which ongoing employees are el-
igible for coverage, and to notify and en-
roll employees, an employer may make
time for these administrative steps by hav-
ing its standard measurement period end
before the associated stability period be-
gins. However, any administrative period
between the standard measurement period
and the stability period may neither reduce
nor lengthen the measurement period or
the stability period. The administrative pe-
October 9, 20124382012–41 I.R.B.

riod following the standard measurement
periodmaylastupto90days. Topre-
vent this administrative period from creat-
ing any potential gaps in coverage, it will
overlap with the prior stability period, so
that, during any such administrative period
applicable to ongoing employees follow-
ing a standard measurement period, ongo-
ing employees who are eligible for cover-
age because of their status as full-time em-
ployees based on a prior measurement pe-
riod would continue to be offered cover-
age.
Example
Facts. Employer W chooses to use a 12-month
stability period that begins January 1 and a 12-month
standard measurement period that begins October 15.
Consistent with the terms of Employer W’s group
health plan, only an ongoing employee who works
full-time (an average of at least 30 hours per week)
during the standard measurement period is offered
coverage during the stability period associated with
that measurement period. Employer W chooses to
use an administrative period between the end of the
standard measurement period (October 14) and the
beginning of the stability period (January 1) to deter-
mine which employees worked full-time during the
measurement period, notify them of their eligibility
for the plan for the calendar year beginning on Jan-
uary 1 and of the coverage available under the plan,
answer questions and collect materials from employ-
ees, and enroll those employees who elect coverage in
the plan. Previously-determined full-time employees
already enrolled in coverage continue to be offered
coverage through the administrative period.
Employee A and Employee B have been em-
ployed by Employer W for several years, contin-
uously from their start date. Employee A worked
full-time during the standard measurement period
that begins October 15 of Year 1 and ends October
14 of Year 2 and for all prior standard measurement
periods. Employee B also worked full-time for all
prior standard measurement periods, but is not a
full-time employee during the standard measurement
period that begins October 15 of Year 1 and ends
October 14 of Year 2.
Conclusions. Because Employee A was em-
ployed for the entire standard measurement period
that begins October 15 of Year 1 and ends October
14 of Year 2, Employee A is an ongoing employee
with respect to the stability period running from
January 1 through December 31 of Year 3. Because
Employee A worked full-time during that standard
measurement period, Employee A must be offered
coverage for the entire Year 3 stability period (in-
cluding the administrative period from October 15
through December 31 of Year 3). Because Em-
ployee A worked full-time during the prior standard
measurement period, Employee A would have been
offered coverage for the entire Year 2 stability period,
and if enrolled would continue such coverage during
the administrative period from October 15 through
December 31 of Year 2.
Because Employee B was employed for the entire
standard measurement period that begins October 15
of Year 1 and ends October 14 of Year 2, Employee B
is also an ongoing employee with respect to the sta-
bility period in Year 3. Because Employee B did not
work full-time during this standard measurement pe-
riod, Employee B is not required to be offered cov-
erage for the stability period in Year 3 (including the
administrative period from October 15 through De-
cember 31 of Year 3). However, because Employee B
worked full-time during the prior standard measure-
ment period, Employee B would be offered coverage
through the end of the Year 2 stability period, and if
enrolled would continue such coverage during the ad-
ministrative period from October 15 through Decem-
ber31ofYear2.
Employer W complies with the standards of this
section because the measurement and stability peri-
ods are no longer than 12 months, the stability period
for ongoing employees who work full-time during the
standard measurement period is not shorter than the
standard measurement period, the stability period for
ongoing employees who do not work full-time during
the standard measurement period is no longer than the
standard measurement period, and the administrative
period is no longer than 90 days.
C.New Employees: Reasonably
Expected to Work Full-Time
If an employee is reasonably expected
at his or her start date to work full-time, an
employer that sponsors a group health plan
that offers coverage to the employee at or
before the conclusion of the employee’s
initial three calendar months of employ-
ment will not be subject to the employer
responsibility payment under § 4980H by
reason of its failure to offer coverage to the
employee for up to the initial three calen-
dar months of employment. For rules on
compliance with the 90-day waiting period
limitation under PHS Act § 2708, see the
guidance cited at footnote 1.
D.New Employees: Safe Harbor for
Variable Hour and Seasonal Employees
If an employer maintains a group health
plan that would offer coverage to the em-
ployee only if the employee were deter-
mined to be a full-time employee, the em-
ployer may use both a measurement pe-
riod of between three and 12 months (the
same as allowed for ongoing employees)
andanadministrativeperiodofupto90
days for variable hour and seasonal em-
ployees. However, the measurement pe-
riod and the administrative period com-
bined may not extend beyond the last day
of the first calendar month beginning on or
after the one-year anniversary of the em-
ployee’s start date (totaling, at most, 13
months and a fraction of a month). These
periods are described in greater detail be-
low.
1.Initial Measurement Period and
Associated Stability Period
For variable hour and seasonal employ-
ees, employers are permitted to determine
whether the new employee is a full-time
employee using an “initial measurement
period” of between three and 12 months
(as selected by the employer). The em-
ployer measures the hours of service com-
pleted by the new employee during the ini-
tial measurement period and determines
whether the employee completed an av-
erage of 30 hours of service per week or
more during this period. The stability pe-
riod for such employees must be the same
length as the stability period for ongoing
employees. As in the case of a standard
measurement period, if an employee is de-
termined to be a full-time employee dur-
ing the initial measurement period, the sta-
bility period must be a period of at least
six consecutive calendar months that is no
shorter in duration than the initial measure-
ment period and that begins after the ini-
tial measurement period (and any associ-
ated administrative period).
If a new variable hour or seasonal em-
ployee is determined not to be a full-time
employee during the initial measurement
period, the employer is permitted to treat
the employee as not a full-time employee
during the stability period that follows the
initial measurement period. This stabil-
ity period for such employees must not be
more than one month longer than the ini-
tial measurement period and, as explained
below, must not exceed the remainder of
the standard measurement period (plus any
associated administrative period) in which
the initial measurement period ends.
8
An employee or related individual is
not considered eligible for minimum es-
8
In these circumstances, allowing a stability period to exceed the initial measurement period by one month is intended to give additional flexibilityto employers that wish to use a 12-month
stability period for new variable hour and seasonal employees and an administrative period that exceeds one month. To that end, such an employer coulduse an 11-month initial measurement
period (in lieu of the 12-month initial measurement period that would otherwise be required) and still comply with the general rule that the initial measurement period and administrative
period combined may not extend beyond the last day of the first calendar month beginning on or after the one-year anniversary of the employee’s start date.
2012–41 I.R.B.439October 9, 2012

sential coverage under the plan (and there-
fore may be eligible for a premium tax
credit or cost-sharing reduction through an
Exchange) during any period when cover-
age is not offered, including any measure-
ment period or administrative period prior
to when coverage takes effect.
2.Transition from New Employee Rules
to Ongoing Employee Rules
Once a new employee, who has been
employed for an initial measurement pe-
riod, has been employed for an entire stan-
dard measurement period, the employee
must be tested for full-time status, begin-
ning with that standard measurement pe-
riod, at the same time and under the same
conditions as other ongoing employees.
Accordingly, for example, an employer
with a calendar year standard measure-
ment period that also uses a one-year initial
measurement period beginning on the em-
ployee’s start date would test a new vari-
able hour employee whose start date is
February 12 for full-time status first based
on the initial measurement period (Febru-
ary 12 through February 11 of the follow-
ing year) and again based on the calen-
dar year standard measurement period (if
the employee continues in employment for
that entire standard measurement period)
beginning on January 1 of the year after the
start date.
An employee determined to be a
full-time employee during an initial mea-
surement period or standard measurement
period must be treated as a full-time em-
ployee for the entire associated stability
period. This is the case even if the em-
ployee is determined to be a full-time
employee during the initial measurement
period but determined not to be a full-time
employee during the overlapping or imme-
diately following standard measurement
period. In that case, the employer may
treat the employee as not a full-time em-
ployee only after the end of the stability
period associated withthe initial measure-
ment period. Thereafter, the employee’s
full-time status would be determined in
the same manner as that of the employer’s
other ongoing employees.
In contrast, if the employee is deter-
mined not to be a full-time employee dur-
ing the initial measurement period, but is
determined to be a full-time employee dur-
ing the overlapping or immediately fol-
lowing standard measurement period, the
employee must be treated as a full-time
employee for the entire stability period that
corresponds to that standard measurement
period (even if that stability period begins
before the end of the stability period as-
sociated with the initial measurement pe-
riod). Thereafter, the employee’s full-time
status would be determined in the same
manner as that of the employer’s other on-
going employees.
3.Optional Administrative Period for
New Employees
In addition to the initial measurement
period, the employer is permitted to apply
an administrative period before the start
of the stability period. This administra-
tive period must not exceed 90 days in
total. For this purpose, the administra-
tive period includes all periods between
the start date of a new variable hour or
seasonal employee and the date the em-
ployee is first offered coverage under the
employer’s group health plan, other than
the initial measurement period. Thus, for
example, if the employer begins the ini-
tial measurement period on the first day of
the first month following a new variable
hour or seasonal employee’s start date, the
period between the employee’s start date
and the first day of the next month must be
taken into account in applying the 90-day
limit on the administrative period. Simi-
larly, if there is a period between the end
of the initial measurement period and the
date the employee is first offered coverage
under the plan, that period must be taken
into account in applying the 90-day limit
on the administrative period.
In addition to the specific limits on the
initial measurement period (which must
not exceed 12 months) and the adminis-
trative period (which must not exceed 90
days), there is a limit on the combined
length of the initial measurement period
and the administrative period applicable
for a new variable hour or seasonal em-
ployee. Specifically, the initial measure-
ment period and administrative period to-
gether cannot extend beyond the last day
of the first calendar month beginning on
or after the first anniversary of the em-
ployee’s start date. For example, if an em-
ployer uses a 12-month initial measure-
ment period for a new variable hour em-
ployee, and begins that initial measure-
ment period on the first day of the first
calendar month following the employee’s
start date, the period between the end of
the initial measurement period and the of-
fer of coverage to a new variable hour em-
ployee who works full time during the ini-
tial measurement period must not exceed
one month.
4.Variable Hour Employee Defined
For purposes of this notice, a new em-
ployee is a variable hour employee if,
based on the facts and circumstances at the
start date, it cannot be determined that the
employee is reasonably expected to work
on average at least 30 hours per week. A
new employee who is expected to work
initially at least 30 hours per week may be
a variable hour employee if, based on the
facts and circumstances at the start date,
the period of employment at more than
30 hours per week is reasonably expected
to be of limited duration and it cannot
be determined that the employee is rea-
sonably expected to work on average at
least 30 hours per week over the initial
measurement period. As one example, a
variable hour employee would include a
retail worker hired at more than 30 hours
per week for the holiday season who is
reasonably expected to continue working
after the holiday season but is not reason-
ably expected to work at least 30 hours per
week for the portion of the initial measure-
ment period remaining after the holiday
season, so that it cannot be determined at
the start date that the employee is reason-
ably expected to average at least 30 hours
per week during the initial measurement
period.
5.Seasonal Employee Defined
The Affordable Care Act addresses
the meaning of seasonal worker in the
context of whether an employer meets
the definition of an applicable large em-
ployer. Specifically, § 4980H(c)(2)(B)
generally provides that if an employer’s
workforce exceeds 50 full-time employees
for 120 days or fewer during a calendar
year, and the employees in excess of 50
who were employed during that period
of no more than 120 days were seasonal
employees, the employer would not be an
applicable large employer. Furthermore,
§ 4980H(c)(2)(B)(ii) provides that, for this
October 9, 20124402012–41 I.R.B.

purpose, seasonal worker means a worker
who performs labor or services on a sea-
sonal basis, as defined by the Secretary
of Labor, including (but not limited to)
workers covered by 29 CFR 500.20(s)(1)
and retail workers employed exclusively
during holiday seasons. The statute does
not address how the term “seasonal em-
ployee” might be defined for purposes
other than the determination of applicable
large employer status, such as the determi-
nation of whether a new employee of an
applicable large employer is reasonably
expected to work full time for purposes of
determining the amount of any assessable
payment under § 4980H. Through at least
2014, employers are permitted to use a
reasonable, good faith interpretation of the
term “seasonal employee” for purposes of
this notice.
E.Examples
The examples that follow illustrate how
the safe harbors described above apply
to variable hour employees and seasonal
employees. For the rules that apply to
full-time new employees, see section III.C,
above. For rules that apply to part-time
new employees, see section IV, example
4, of Notice 2012–59 (issued concurrently
with this notice) interpreting PHS Act
§ 2708.
In all of the following examples,the
coverage offer is an offer of minimum es-
sential coverage that is affordable within
the meaning of § 36B(c)(2)(C)(i) (or is
treated as affordable coverage under the
Form W–2 safe harbor described in sec-
tion II.D of this notice) and that provides
minimum value within the meaning of
§ 36B(c)(2)(C)(ii).
1.Examples of New Variable Hour
Employees with an Administrative
Period.
In Examples 1 through 8, the new em-
ployee is a new variable hour employee,
and the employer has chosen to use a
12-month standard measurement period
for ongoing employees starting October
15 and a 12-month stability period as-
sociated with that standard measurement
period starting January 1. (Thus, during
the administrative period from October
15 through December 31 of each cal-
endar year, the employer continues to
offer coverage to employees who quali-
fied for coverage for that entire calendar
year based upon working on average at
least 30 hours per week during the prior
standard measurement period.) Also, the
employer offers health plan coverage only
to full-time employees (and their depen-
dents).
Example 1 (12-Month Initial Measurement Pe-
riod Followed by 1+ Partial Month Administrative
Period).(i)Facts. For new variable hour employees,
Employer B uses a 12-month initial measurement pe-
riod that begins on the start date and applies an ad-
ministrative period from the end of the initial mea-
surement period through the end of the first calendar
month beginning on or after the end of the initial mea-
surement period. Employer B hires Employee Y on
May 10, 2014. Employee Y’s initial measurement pe-
riod runs from May 10, 2014, through May 9, 2015.
Employee Y works an average of 30 hours per week
during this initial measurement period. Employer B
offers coverage to Employee Y for a stability period
that runs from July 1, 2015 through June 30, 2016.
(ii)Conclusion. Employee Y works an average of
30 hours per week during his initial measurement pe-
riod and Employer B uses (1) an initial measurement
period that does not exceed 12 months; (2) an admin-
istrative period totaling not more than 90 days; and
(3) a combined initial measurement period and ad-
ministrative period that does not last beyond the final
day of the first calendar month beginning on or after
the one-year anniversary of Employee Y’s start date.
Accordingly, from Employee Y’s start date through
June 30, 2016, Employer B is not subject to any pay-
ment under § 4980H with respect to Employee Y, be-
cause Employer B complies with the standards for
the initial measurement period and stability periods
for a new variable hour employee. Employer B also
complies with PHS Act § 2708. Employer B must
test Employee Y again based on the period from Oc-
tober 15, 2014 through October 14, 2015 (Employer
B’s first standard measurement period that begins af-
ter Employee Y’s start date).
Example 2 (11-Month Initial Measurement Pe-
riod Followed by 2 + Partial Month Administrative
Period).(i)Facts.SameasExample 1, except that
Employer B uses an 11-month initial measurement
period that begins on the start date and applies an
administrative period from the end of the initial
measurement period until the end of the second
calendar month beginning after the end of the initial
measurement period. Employer B hires Employee Y
on May 10, 2014. Employee Y’s initial measurement
period runs from May 10, 2014, through April 9,
2015. Employee Y works an average of 30 hours
per week during this initial measurement period.
Employer B offers coverage to Employee Y for a
stability period that runs from July 1, 2015 through
June 30, 2016.
(ii)Conclusion.SameasExample 1.
Example 3 (11-Month Initial Measurement Pe-
riod Preceded by Partial Month Administrative Pe-
riod and Followed by 2-Month Administrative Pe-
riod).(i)Facts.SameasExample 1, except that
Employer B uses an 11-month initial measurement
period that begins on the first day of the first calen-
dar month beginning after the start date and applies
an administrative period that runs from the end of
the initial measurement period through the end of the
second calendar month beginning on or after the end
of the initial measurement period. Employer B hires
Employee Y on May 10, 2014. Employee Y’s initial
measurement period runs from June 1, 2014, through
April 30, 2015. Employee Y works an average of
30 hours per week during this initial measurement
period. Employer B offers coverage to Employee
Y for a stability period that runs from July 1, 2015
through June 30, 2016.
(ii)Conclusion.SameasExample 1.
Example 4 (12-Month Initial Measurement Pe-
riod Preceded by Partial Month Administrative Pe-
riod and Followed by 2-Month Administrative Pe-
riod).(i)Facts. For new variable hour employees,
Employer B uses a 12-month initial measurement pe-
riod that begins on the first day of the first month
following the start date and applies an administrative
period that runs from the end of the initial measure-
ment period through the end of the second calendar
month beginning on or after the end of the initial mea-
surement period. Employer B hires Employee Y on
May 10, 2014. Employee Y’s initial measurement
period runs from June 1, 2014, through May 31, 2015.
Employee Y works an average of 30 hours per week
during this initial measurement period. Employer B
offers coverage to Employee Y for a stability period
that runs from August 1, 2015 through July 31, 2016.
(ii)Conclusion. Employer B does not satisfy the
standards for the safe harbor method in section III.D
because the combination of the initial partial month
delay, the twelve-month initial measurement period,
and the two month administrative period means that
the coverage offered to Employee Y does not become
effective until after the first day of the second cal-
endar month following the first anniversary of Em-
ployee Y’s start date. Accordingly, Employer B is
potentially subject to a payment under § 4980H and
fails to comply with PHS Act § 2708.
Example 5 (Continuous Full-Time Employee).(i)
Facts.SameasExample 1; in addition, Employer
B tests Employee Y again based on Employee Y’s
hours from October 15, 2014 through October 14,
2015 (Employer B’s first standard measurement
period that begins after Employee Y’s start date), de-
termines that Employee Y worked an average of 30
hours a week during that period, and offers Employee
Y coverage for July 1, 2016 through December 31,
2016. (Employee Y already has an offer of coverage
for the period of January 1, 2016 through June 30,
2016 because that period is covered by the initial
stability period following the initial measurement
period, during which Employee Y was determined to
be a full-time employee.)
(ii)Conclusion. Employer B is not subject to any
payment under § 4980H and complies with PHS Act
§ 2708 for 2016 with respect to Employee Y.
Example 6 (Initially Full-Time Employee, Be-
comes Non-Full-Time Employee).(i)Facts.Sameas
Example 1; in addition, Employer B tests Employee
Y again based on Employee Y’s hours from Octo-
ber 15, 2014 through October 14, 2015 (Employer
B’s first standard measurement period that begins
after Employee Y’s start date), and determines that
Employee Y worked an average of 28 hours a week
during that period. Employer B continues to offer
coverage to Employee Y through June 30, 2016
(the end of the stability period based on the initial
measurement period during which Employee Y was
2012–41 I.R.B.441October 9, 2012

determined to be a full-time employee), but does
not offer coverage to Employee Y for the period of
July 1, 2016 through December 31, 2016.
(ii)Conclusion. Employer B is not subject to any
payment under § 4980H and complies with PHS Act
§ 2708 for 2016 with respect to Employee Y, provided
that it offers coverage to Employee Y from July 1,
2015 through June 30, 2016 (the entire stability pe-
riod associated with the initial measurement period).
Example 7 (Initially Non-Full-Time Employee).
(i)Facts.SameasExample 1,exceptthatEmployee
Y works an average of 28 hours per week during the
period from May 10, 2014 through May 9, 2015 and
Employer B does not offer coverage to Employee Y in
2015. Employer B tests Employee Y again based on
Employee Y’s hours from October 15, 2014 through
October 14, 2015 (Employer B’s first standard mea-
surement period that begins after Employee Y’s start
date).
(ii)Conclusion. FromEmployeeY’sstartdate
through the end of 2015, Employer B is not subject
to any payment under § 4980H, because Employer B
complies with the standards for the measurement and
stability periods for a new variable hour employee
with respect to Employee Y. PHS Act § 2708 does not
apply to Employee Y during this period because, pur-
suant to the plan’s eligibility conditions, Employee Y
does not become eligible during this period for cov-
erage under the plan. Accordingly, Employer B also
complies with PHS Act § 2708 with respect to Em-
ployee Y during this period.
Example 8 (Initially Non-Full-Time Employee,
Becomes Full-Time Employee).(i)Facts.Same
asExample 7; in addition, Employer B tests Em-
ployee Y again based on Employee Y’s hours
from October 15, 2014 through October 14, 2015
(Employer B’s first standard measurement period
that begins after Employee Y’s start date), determines
that Employee Y works an average of 30 hours per
week during this standard measurement period, and
offers coverage to Employee Y for 2016.
(ii)Conclusion. Employer B is not subject to any
payment under § 4980H and complies with PHS Act
§ 2708 for 2016 with respect to Employee Y.
2.Examples of New Variable Hour
Employees with an Administrative Period
and Six-Month Standard Measurement
Period and Stability Period.
In Examples 9 and 10, the new em-
ployee is a new variable hour employee,
and the employer uses a six-month stan-
dard measurement period, starting each
May 15 and November 15, with six-month
stability periods associated with those
standard measurement periods starting
January 1 and July 1.
Example 9.(i)Facts. For new variable hour em-
ployees, Employer C uses a six-month initial mea-
surement period that begins on the start date and ap-
plies an administrative period that runs from the end
of the initial measurement period through the end of
the first full calendar month beginning after the end
of the initial measurement period. Employer C hires
Employee Z on May 10, 2014. Employee Z’s ini-
tial measurement period runs from May 10, 2014,
through November 9, 2014, during which Employee
Z works an average of 30 hours per week. Employer
C offers coverage to Employee Z for a stability pe-
riod that runs from January 1, 2015 through June 30,
2015.
(ii)Conclusion. Employer C uses (1) an initial
measurement period that does not exceed 12 months;
(2) an administrative period totaling not more than 90
days; and (3) a combined initial measurement period
and administrative period that does not last longer
than the final day of the first calendar month begin-
ning on or after the one-year anniversary of Employee
Z’s start date. From Employee Z’s start date through
June 30, 2015, Employer C is not subject to any pay-
ment under § 4980H, becauseEmployer C complies
with the standards for the measurement and stability
periods for a new variable hour employee with re-
spect to Employee Z. Employer C also complies with
PHS Act § 2708. Employer C must test Employee
Z again based on Employee Z’s hours during the pe-
riod from November 15, 2014 through May 14, 2015
(Employer C’s first standard measurement period that
begins after Employee Z’s start date).
Example 10 (Initially Full-Time Employee, Be-
comes Non-Full-Time Employee).(i)Facts.Sameas
Example 9; in addition, Employer C tests Employee
Z again based on Employee Z’s hours during the pe-
riod from November 15, 2014 through May 14, 2015
(Employer C’s first standard measurement period that
begins after Employee Z’s start date), during which
period Employee Z works an average of 28 hours per
week. Employer C continues to offer coverage to Em-
ployee Z through June 30, 2015 (the end of the initial
stability period based on the initial measurement pe-
riod during which Employer C worked an average of
30 hours per week), but does not offer coverage to
Employee Z from July 1, 2015 through December 31,
2015.
(ii)Conclusion. Employer C is not subject to any
payment under § 4980H and complies with PHS Act
§ 2708 with respect to Employee Z for 2015.
3.Example of Seasonal Employee
Example 11 (12-Month Initial Measurement Pe-
riod; 1+ Partial Month Administrative Period).(i)
Facts. Employer D offers health plan coverage only
to full-time employees (and their dependents). Em-
ployer D uses a 12-month initial measurement period
for new variable hour employees and seasonal em-
ployees that begins on the start date and applies an
administrative period from the end of the initial mea-
surement period through the end of the first calendar
month beginning after the end of the initial measure-
ment period. Employer D hires Employee S, a ski in-
structor, on November 15, 2014 with an anticipated
season during which Employee S will work running
through March 15, 2015. Employer D determines
that Employee S is a seasonal employee based upon
a reasonable good faith interpretation of that term.
Employee S’s initial measurement period runs from
November 15, 2014, through November 14, 2015.
Employee S works 60 hours per week from Novem-
ber 15, 2014 through March 15, 2015, but is not rea-
sonably expected to average 30 hours per week for the
12-month initial measurement period. Accordingly,
Employer D does not treat Employee S as a full-time
employee, and does not offer Employee S coverage.
(ii)Conclusion. Employer D uses (1) an initial
measurement period that does not exceed 12 months;
(2) an administrative period totaling not more than
90 days; and (3) a combined initial measurement pe-
riod and administrative period that does not extend
beyond the final day of the first calendar month that
begins on or after the one-year anniversary of an em-
ployee’s start date. Accordingly, from Employee S’s
start date through November 14, 2015, Employer D
is not subject to any payment under § 4980H, because
Employer D complies with the standards for the ini-
tial measurement period and stability periods for a
new seasonal employee with respect to Employee S.
PHSAct§2708doesnotapplytoEmployeeSdur-
ing this period because, pursuant to the plan’s eligibil-
ity conditions, Employee S does not become eligible
during this period for coverage under the plan. Ac-
cordingly, Employer D also complies with PHS Act
§ 2708 with respect to Employee S during this period.
IV. RELIANCE
For compliance with § 4980H at least
through the end of 2014, employers may
rely on (1) the safe harbor method for on-
going employees described in section III.A
and B, above; (2) the rule for new employ-
ees reasonably expected to work full-time
described in section III.C, above, (3) the
safe harbor method for new variable hour
and seasonal employees described in sec-
tion III.D, above, and (4) the safe harbor
based on Form W–2 wages described in
Notice 2011–73 and Notice 2012–17. Em-
ployers will not be required to comply with
any subsequent guidance on these issues
that is more restrictive until at least Jan-
uary 1, 2015.
This reliance covers a measurement pe-
riod that begins in 2013 or 2014 and the
associated stability period (which may ex-
tend into 2014, 2015 or 2016). For exam-
ple, the use of a 12-month measurement
period in accordance with this notice be-
ginning on July 1, 2013 and ending on
June 30, 2014 might be used to classify
employees for a stability period that runs
from July 1, 2014 through June 30, 2015.
In addition, as stated earlier, use of any of
the safe harbor methods described in this
notice is not required, but rather is optional
for all employers.
V. PUBLIC COMMENTS
Treasury and the IRS intend that up-
coming regulations on the employer
shared responsibility provisions under
§ 4980H will address the issues described
in this notice, including the specific issues
identified below, in addition to other as-
pects of § 4980H.
October 9, 20124422012–41 I.R.B.

As part of the efforts to develop work-
able and flexible rules on the application
of § 4980H, with extensive input from
stakeholders, Treasury and the IRS have
issued several notices describing poten-
tial approaches to interpreting § 4980H
and requesting public comments. In re-
sponse, numerous helpful comments have
been received and reviewed. Those com-
ments continue to be considered and taken
into account in the process of formulat-
ing regulations and other administrative
guidance that stakeholders will be able to
rely on. Among the specific issues cur-
rently under consideration with respect to
the identification of full-time employees
under § 4980H are the following:
1. Whether and, if so, what types of safe
harbor methods should be available to
employers for use in determining the
full-time status of short-term assign-
ment employees, temporary staffing
employees, employees hired into
high-turnover positions, and other
categories of employees that may
present special issues?
2. Whether to develop additional guid-
ance (such as relevant factors or
safe harbors) to assist employers and
employees in determining, as of an
employee’s start date, whether the
employee is reasonably expected to
work an average of at least 30 hours
per week, including whether the em-
ployee is a variable hour employee. If
so, what types of factors or safe har-
bors should apply for this purpose?
3. What rules should be provided to ad-
dress coordination of differing mea-
surement and stability periods during
the transition following a merger or
acquisition?
4. How the term “seasonal worker”
should be defined under § 4980H, in-
cluding: (a) the practicability of using
different definitions for different pur-
poses (such as status as an applicable
large employer or, with respect to an
applicable large employer, status of a
new employee as full-time); and (b)
whether other, existing legal defini-
tions should be considered in defining
a seasonal worker under § 4980H
(such as the safe harbor for seasonal
employees in the final sentence of
Treas. Reg. § 1.105–11(c)(2)(iii)(C)).
In view of the anticipated timing
of regulations and other guidance that
stakeholders will be able to rely on, it is
requested that those who wish to submit
any further comments on these or other
issues relating to this notice do so by
September 30, 2012. Comments should
include a reference to Notice 2012–58.
Send submissions to CC:PA:LPD:PR
(Notice 2012–58), Room 5203, Internal
Revenue Service, P.O. Box 7604, Ben
Franklin Station, Washington, DC 20044.
Submissions may be hand deliveredMon-
day through Fridaybetween the hours
of8a.m. and4p.m. toCC:PA:LPD:PR
(Notice 2012–58), Courier’s Desk,
Internal Revenue Service, 1111
Constitution Avenue, NW, Washington,
DC 20044, or sent electronically,
via the following e-mail address:
Notice.comments@irscounsel.treas.gov.
Please include “Notice 2012–58”
in the subject line of any electronic
communication. All material submitted
will be available for public inspection and
copying.
VI. NO INFERENCE
No inference should be drawn from any
provision of this notice concerning any
other provision of § 4980H or any other
provision of the Affordable Care Act.
VII. DRAFTING INFORMATION
The principal author of this notice is
Mireille Khoury of the Office of Division
Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities). For
further information regarding this notice,
contact Ms. Khoury at (202) 622–6080
(not a toll-free call).
Guidance on 90-day Waiting
Period Limitation Under Public
Health Service Act Section
2708
Notice 2012–59
I.INTRODUCTION
The Departments of Labor, Health and
Human Services (HHS), and the Treasury
(the Departments) are working together
to develop coordinated regulations and
other administrative guidance to assist
stakeholders with implementation of the
Patient Protection and Affordable Care
Act (Affordable Care Act). This notice,
which is being issued in substantially iden-
tical form by the other two Departments,
provides temporary guidance regarding
the 90-day waiting period limitation in
Public Health Service Act (PHS Act) sec-
tion 2708.
1
The guidance will remain in
effect at least through the end of 2014.
In addition, the Treasury Department,
including the Internal Revenue Service
(IRS), is concurrently issuing a notice
providing administrative guidance on the
shared responsibility of employers under
section 4980H of the Internal Revenue
Code (Code). See IRS Notice 2012–58.
That guidance has been coordinated with
the Departments of Labor and HHS and
with the guidance contained in this notice.
II.BACKGROUND
PHS Act section 2708 provides that,
for plan years beginning on or after Jan-
uary 1, 2014, a group health plan or health
insurance issuer offering group health
insurance coverage shall not apply any
waiting period that exceeds 90 days.
2
PHS
Act section 2704(b)(4), ERISA section
701(b)(4), and Code section 9801(b)(4)
define a waiting period to be the period
that must pass with respect to an individ-
ual before the individual is eligible to be
covered for benefits under the terms of
the plan. In 2004 regulations, the Depart-
ments defined a waiting period to mean
the period that must pass before coverage
1
The Affordable Care Act adds section 715(a)(1) to the Employee Retirement Income Security Act (ERISA) and section 9815(a)(1) to the Internal RevenueCode (Code) to incorporate the
provisions of part A of title XXVII of the PHS Act into ERISA and the Code, and to make them applicableto group health plans and health insurance issuers providing health insurance
coverage in connection with group health plans. The PHS Act sections incorporated by these referencesare sections 2701 through 2728. Accordingly, PHS Act section 2708 is subject to
shared interpretive jurisdiction by the Departments.
2
PHS Act section 2708 applies to both grandfathered and non-grandfathered plans.Seesection 1251(a)(4)(A)(i) of the Affordable Care Act.
2012–41 I.R.B.443October 9, 2012

for an employee or dependent who is oth-
erwise eligible to enroll under the terms of
a group health plan can become effective.
3
PHS Act section 2708 does not require
the employer to offer coverage to any par-
ticular employee or class of employees,
including part-time employees. PHS Act
section 2708 merely prevents an otherwise
eligible employee (or dependent) from
having to wait more than 90 days before
coverage becomes effective.
The Departments invited comments on
the 90-day waiting period limitation, in
addition to requesting comments on the
employer shared responsibility provisions
of Code section 4980H, in IRS Notice
2011–36.
4
Subsequent guidance outlined
various approaches under consideration
with respect to both the 90-day waiting
period limitation and the employer shared
responsibility provisions.
5
Specifically,
the guidance outlined an approach under
which employers would be permitted,
under certain circumstances, to use an el-
igibility condition requiring an employee
to complete a specified number of cumula-
tive hours of service in order to be eligible
for the coverage under the plan. Com-
ments were invited on this and other as-
pects of the guidance, including how rules
relating to the potential look-back/stability
period safe harbor method for determining
the full-time status of employees under
Code section 4980H should be coordinated
with the 90-day waiting period limitation
of PHS Act section 2708.
III.GUIDANCE
This section provides temporary guid-
ance on what the Departments will con-
sider as compliance with PHS Act section
2708, and this guidance will remain in ef-
fect at least through the end of 2014. Reg-
ulations or other guidance on these issues
applicable for periods after 2014 will pro-
vide adequate time to comply with any ad-
ditional or modified requirements.
A. WAITING PERIOD DEFINED
A group health plan and a health insur-
ance issuer offering group coverage may
not use a waiting period that exceeds 90
days. A waiting period is the period of
time that must pass before coverage for
an employee or dependent who is other-
wise eligible to enroll under the terms of
the plan can become effective. For this
purpose, being eligible for coverage means
having met the plan’s substantive eligibil-
ity conditions (such as being in an eligi-
ble job classification or achieving job-re-
lated licensure requirements specified in
the plan’s terms).
Consistent with PHS Act section 2708,
eligibility conditions that are based solely
on the lapse of a time period are permissi-
ble for no more than 90 days. Other con-
ditions for eligibility under the terms of a
group health plan are generally permissi-
ble under PHS Act section 2708, unless
the condition is designed to avoid compli-
ance with the 90-day waiting period limita-
tion. Furthermore, if, under the terms of a
plan, an employee may elect coverage that
would begin on a date that does not exceed
the 90-day waiting period limitation, the
90-day waiting period limitation is consid-
ered satisfied. Accordingly, a plan or is-
suer will not be considered to have violated
PHS Act section 2708 merely because em-
ployees take additional time to elect cov-
erage.
B. APPLICATION TO VARIABLE
HOUR EMPLOYEES WHERE A
SPECIFIED NUMBER OF HOURS OF
SERVICE PER PERIOD IS A PLAN
ELIGIBILITY CONDITION
If a group health plan conditions eligi-
bility on an employee regularly working a
specified number of hours per period (or
working full time), and it cannot be de-
termined that a newly-hired employee is
reasonably expected to regularly work that
number of hours per period (or work full
time), the plan may take a reasonable pe-
riod of time to determine whether the em-
ployee meets the plan’s eligibility condi-
tion, which may include a measurement
period that is consistent with the timeframe
permitted for such determinations under
Code section 4980H.
6
An employer may
use a measurement period that is consis-
tent with section 4980H, whether or not it
is an applicable large employer subject to
section 4980H. Except where a waiting pe-
riod that exceeds 90 days is imposed af-
ter a measurement period, the time period
for determining whether such an employee
meets the plan’s eligibility condition will
not be considered to be designed to avoid
compliance with the 90-day waiting period
limitation if coverage is made effective no
later than 13 months from the employee’s
start date, plus if the employee’s start date
is not the first day of a calendar month,
the time remaining until the first day of the
next calendar month.
IV.EXAMPLES
Examples set forth below illustrate how
the “designed to avoid compliance with
the 90-day waiting period limitation” stan-
dard applies to various plan eligibility con-
ditions at least through the end of 2014.
Comments are invited on additional exam-
ples (if any) that would be helpful to in-
clude in future regulations or other guid-
ance.
Example 1.(i)Facts. EmployerW’s group health
plan provides for coverage to begin on the first day
of the first payroll period on or after the date an em-
ployee is hired and completes the applicable enroll-
ment forms. Enrollment forms are distributed on an
employee’s start date. EmployeeAis hired and starts
on October 31, which is the first day of the payroll
period. On November 2,Acompletes and files all the
forms necessary to enroll in the plan.A’s coverage
under the plan becomes effective on November 14,
which is the first day of the first payroll period after
Acompletes the enrollment forms.
(ii)Conclusion. In this Example 1, under the
terms ofW’s plan, coverage maybecome effective as
early as October 31, depending on whenAcompletes
the applicable enrollment forms. Under the terms of
the plan, when coverage becomes effective is depen-
dent solely on the length of time taken byAto com-
plete the enrollment materials. Therefore, under the
terms of the plan,Amay elect coverage that would
begin on a date that does not exceed the 90-day wait-
ing period limitation, and the plan complies with PHS
Act section 2708.
3
26 CFR 54.9801–3(a)(3)(iii), 29 CFR 2590.701–3(a)(3)(iii), 45 CFR 146.111(a)(3)(iii).
4
See www.irs.gov/file_source/pub/irs-drop/n–11–36.pdf.
5
Department of Labor Technical Release 2012–01, IRS Notice 2012–17, and HHS FAQs issued February 9, 2012.
6
IRS Notice 2012–58 provides guidance regarding the measurement period thatmay be used under Code section 4980H. That guidance provides a safe harbormethod under which an
applicable large employer may use a measurement period of up to 12 months to determine whether certain types of new employees are full-time employees,without being subject to an
assessable payment under Code section 4980H forthat period with respect to such employees.
October 9, 20124442012–41 I.R.B.

Example 2.(i)Facts.EmployerX’s group health
plan limits eligibility for coverage to full-time em-
ployees. Coverage becomes effective on the first day
of the calendar month following the date the em-
ployee becomes eligible. EmployeeBbegins work-
ing full time for EmployerXon April 11. Prior to this
date,Bworked part time forX.Benrolls in the plan
and coverage is effective May 1.
(ii)Conclusion. In this Example 2, the period
from April 11 through April 30 is a waiting period.
The period whileBwas working part time is not part
of the waiting period becauseBwas not in a class
of employees eligible for coverage under the terms
of the plan while working part time, and full-time
versus part-time status is abona fideemployment-
based condition that is not considered to be designed
to avoid compliance with the 90-day waiting period
limitation.
Example 3.(i)Facts. Under EmployerY’s group
health plan, only employees who work full time (de-
fined under the plan as regularly working 30 hours
per week) are eligible for coverage. EmployeeCbe-
gins work for EmployerYon November 26 of Year
1.C’s hours are reasonably expected to vary, with
an opportunity to work between 20 and 45 hours per
week, depending on shift availability andC’s avail-
ability. Therefore, it cannot be determined atC’s start
date thatCis reasonably expected to work full time.
Under the terms of the plan, variable- hour employ-
ees, such asC, are eligible to enroll in the plan if they
aredeterminedtobefulltimeafterameasurement
period of 12 months. Coverage is made effective no
later than the first day of the first calendar month af-
ter the applicable enrollment forms are received.C’s
12-month measurement period ends November 25 of
Year 2.Cis determined to be full time and is notified
of C’s plan eligibility. IfCthen elects coverage,C’s
first day of coverage will be January 1 of Year 3.
(ii)Conclusion. In this Example 3, the measure-
ment period is not considered to be designed to avoid
compliance with the 90-day waiting period limitation
(and is, therefore, permissible) because the plan may
use a reasonable period of time to determine whether
a variable-hour employee is full time under PHS Act
section 2708 if the period of time is consistent with
the timeframe permitted for such determinations un-
der Code section 4980H. In such circumstances, the
time period for determining whether an employee is
full time will not be considered to avoid the 90-day
waiting period limitation if coverage can become ef-
fective no later than 13 months fromC’s start date,
plus the time remaining until the first day of the next
calendar month.
Example 4.(i)Facts. Employee
Dbegins work-
ing 25 hours per week for EmployerZon January 3
and is considered a part-time employee for purposes
ofZ’s group health plans.Zsponsors a group health
plan that provides coverage to part-time employees
after they have completed a cumulative 1,200 hours
of service.Dsatisfies the plan’s cumulative hours of
service condition on December 15.
(ii)Conclusion. In this Example 4, the cumula-
tive hours of service condition with respect to part-
time employees is not considered to be designed to
avoid compliance with the 90-day waiting period lim-
itation. Accordingly, coverage forDunder the plan
must begin no later than the 91
st
day afterDworks
1,200 hours. (If the plan’s cumulative hours of ser-
vice requirement were more than 1,200 hours, the De-
partments would consider the requirement to be de-
signed to avoid compliance with the 90-day waiting
period limitation.)
V.RELIANCE
Employers, plans and issuers may rely
on the compliance guidance in this notice
at least through the end of 2014. An em-
ployee or related individual is not eligi-
ble for minimum essential coverage un-
der the plan (and therefore may be eligi-
ble for a premium tax credit or cost-sharing
reduction) during any period when cover-
age is not offered, including any measure-
ment period or administrative period prior
to when coverage takes effect. Thus, all
employees, whether full-time, part-time,
or variable, who are not offered the oppor-
tunity to enroll in health insurance by their
employer will be eligible to receive pre-
mium tax credits and cost-sharing reduc-
tions for Exchange coverage if they meet
other conditions for receipt of these cred-
its.
VI.REQUEST FOR COMMENTS
Comments are requested by
September 30, 2012.Warning:Do
not include any personally identifiable
information (such as name, address, or
other contact information) or confidential
business information that you do not want
publicly disclosed. All comments are
posted on the Internet as received, and
can be retrieved by most Internet search
engines. Comments may be submitted
anonymously. Comments will be shared
among the Departments.
Comments may be sent electronically
to:e-ohpsca-er.ebsa@dol.gov.Alterna-
tively, comments may be sent via mail or
hand delivery to: Office of Health Plan
Standards and Compliance Assistance,
Employee Benefits Security Administra-
tion, Room N–5653, U.S. Department
of Labor, 200 Constitution Avenue, NW,
Washington, DC 20210.
VII.FOR FURTHER INFORMATION
The Departments have coordinated
on the guidance and other informa-
tion contained in this notice and are
publishing substantively identical is-
suances. Questions concerning the in-
formation contained herein may be di-
rected to the Internal Revenue Service
at 202–622–6080; the Department of
Labor’s Office of Health Plan Stan-
dards and Compliance Assistance at
202–693–8335; or the Department of HHS
at 410–786–1565 orphig@cms.hhs.gov.
Additional information for employers
regarding the Affordable Care Act is
available atwww.healthcare.govand
www.dol.gov/ebsa/healthreform.
Per Capita Payments From
Proceeds of Settlements of
Indian Tribal Trust Cases
Notice 2012–60
PURPOSE
This notice provides guidance concern-
ing the federal income tax treatment ofper
capitapayments that members of Indian
tribes receive from proceeds of certain set-
tlements of tribal trust cases between the
United States and those Indian tribes.
BACKGROUN
D
The United States has entered into
settlement agreements with the federally
recognized Indian tribes listed in the Ap-
pendix to this notice, settling litigation in
which the tribes allege that the Depart-
ment of the Interior and the Department of
the Treasury mismanaged monetary assets
and natural resources the United States
holds in trust for the benefit of the tribes
(“Tribal Trust cases”). Upon receiving
the settlement proceeds, the tribes will
dismiss their claims with prejudice.See
Press Release, U.S. Department of Justice,
Attorney General Holder and Secretary
Salazar Announce $1 Billion Settlement of
Tribal Trust Accounting and Management
LawsuitsFiledbyMoreThan40Tribes
(April 11, 2012)at http://www.justice.gov/
opa/pr/2012/April/12-ag-460.html.The
United States foresees the possibility of
future substantially similar settlements of
substantially similar claims brought by
other federally recognized Indian tribes.
Most of the Indian tribes that have
reached Tribal Trust case settlements with
the United States have directed that the
settlement proceeds be transferred to ac-
counts at private banks or other third-party
institutions, where the proceeds will be
invested until the tribes use the funds for
2012–41 I.R.B.445October 9, 2012

various purposes, which may include mak-
ingper capitapayments to their members.
Other Indian tribes have directed that all
or part of the settlement proceeds be paid
into a trust account established or main-
tained by the Secretary of the Interior,
through the Office of the Special Trustee
for American Indians, for the benefit of the
tribes, until the tribes provide instructions
for the disposition of the funds, which
may include makingper capitapayments
to their members.
Although agreeing to settlements, the
United States admits no liability in the
Tribal Trust case settlements and the gov-
ernment has no fiduciary responsibilities
over the Tribal Trust case settlement pro-
ceeds that the tribes receive and that are
deposited into accounts at private banks or
other third-party institutions.
CONSULTATION
Several tribes and other affiliated orga-
nizations requested direct consultation on
the income tax treatment ofper capitapay-
ments from the Tribal Trust case settle-
ments. In response to these requests and
in the spirit of Executive Order 13175, di-
rect consultation and communication oc-
curred. These consultations and conver-
sations were extremely useful in preparing
this notice.
APPLICABLE PROVISIONS OF LAW
Section 61(a) of the Internal Revenue
Code provides that, except as otherwise
provided by law, gross income means all
income from whatever source derived.
Under § 61, Congress intends to tax all
gains and undeniable accessions to wealth,
clearly realized, over which taxpayers
have complete dominion.Commissioner
v. Glenshaw Glass Co., 348 U.S. 426
(1955), 1955–1 C.B. 207. Indians are
citizens subject to the payment of income
taxes.Squire v. Capoeman, 351 U.S. 1, 6
(1956), 1956–1 C.B. 605.
The Per Capita Act, Pub. L. No. 98–64,
97 Stat. 365, 25 U.S.C. §§ 117a through
117c, provides authority to Indian tribes to
makeper capitapayments to Indians out
of tribal trust revenue. Under 25 U.S.C.
§ 117a, funds held in trust by the Secretary
of the Interior for an Indian tribe that are
to be distributedper capitato members of
that tribe may be distributed by either the
Secretary of the Interior or, at the request
of the governing body of the tribe and sub-
ject to the approval of the Secretary of the
Interior, the tribe.
The Indian Tribal Judgment Funds Use
or Distribution Act, 25 U.S.C. §§ 1401
through 1408, concerns the distribution of
certain judgment funds to Indian tribes.
Under 25 U.S.C. § 117b(a), funds dis-
tributed under 25 U.S.C. § 117a are subject
to the provisions of 25 U.S.C. § 1407.
Under 25 U.S.C. § 1407, the funds de-
scribed in that section, and all interest and
investment income accrued on the funds
while held in trust, are not subject to fed-
eral income taxes.See alsoH.R. Rep.
No. 98–230 at 3 (1983), which provides
thatper capitadistributions of tribal trust
revenue “shall be subject to the provisions
of [25 U.S.C. § 1407] with respect to tax
exemptions.”
To determine the federal income tax
treatment ofper capitapayments from
Tribal Trust case settlement proceeds, “the
test is not whether the action was one in
tort or contract, but rather the question to
be asked is ‘In lieu of what were the dam-
ages awarded?’”See Raytheon Production
Corp. v. Commissioner, 144 F.2d 110, 113
(1
st
Cir. 1944),aff’g1 T.C. 952 (1943).
The fact that a suit ends in a compromise
settlement does not change the nature of
the recovery; the determining factor is the
nature of the underlying claim.Raytheon
Production Corp.at 114. Therefore,
although the United States admits no lia-
bility in the Tribal Trust cases,Raytheon
Production Corp.requires an examination
of the underlyingclaimsasserted by the
tribes. The Tribal Trust case settlements
described in this notice resolve claims, in
relevant part, that the Department of the In-
terior and the Department of the Treasury
mismanaged trust accounts, lands, and
natural resources. The tribes assert that,
absent this mismanagement of their trust
funds and resources, their government
administered trust fund accounts would
have substantially larger balances.See
25 C.F.R. §§ 115.002 and 115.702 (which
define the trust fund accounts maintained
and held by the Secretary of the Interior for
federally recognized tribes and the types
of payments that must be accepted into the
trust account, which include those result-
ing from use of trust lands or restricted fee
lands or trust resources when paid directly
to the Secretary of the Interior on behalf of
the tribal account holder). The settlement
proceeds from the Tribal Trust cases must
be viewed as being in lieu of amounts
that would have been held in a trust fund
account for the tribe that is maintained
by the Secretary of the Interior. Conse-
quently, for federalincome tax purposes,
per capitapayments that an Indian tribe
makes from the tribe’s Tribal Trust case
settlement proceeds are treated the same
asper capitapayments from funds held
in trust by the Secretary of the Interior
under 25 U.S.C. § 117a.See Raytheon
Production Corp.at 113–114;see also25
U.S.C. § 1407 and H.R. Rep. No. 98–230
at 3 (1983).
FEDERAL INCOME TAX TREATMENT
Under 25 U.S.C. § 117b(a),per capita
payments made from the proceeds of an
agreement between the United States and
an Indian tribe settling the tribe’s claims
that the United States mismanaged mon-
etary assets and natural resources held in
trust for the benefit of the tribe by the Sec-
retary of the Interior are excluded from the
gross income of the members of the tribe
receiving theper capitapayments.Per
capitapayments that exceed the amount of
the Tribal Trust case settlement proceeds
and that are made from an Indian tribe’s
private bank account inwhich the tribe has
deposited the settlement proceeds are in-
cluded in the gross income of the mem-
bers of the tribe receiving theper capita
payments under § 61. For example, if an
Indian tribe receives proceeds under a set-
tlement agreement, invests the proceeds
in a private bank account that earns inter-
est, and subsequently distributes theentire
amount of the bank account asper capita
payments, then a member of the tribe ex-
cludes from gross income that portion of
the member’sper capitapayment attribut-
able to the settlement proceeds and must
include the remaining portion of theper
capitapayment in gross income.
LIMITATION
This notice applies only toper capita
payments from proceeds of the Tribal Trust
case settlements that are described in this
notice and that the United States has en-
tered into with the Indian tribes listed in
the Appendix to this notice or to proceeds
of Tribal Trust case settlements that are
subsequently identified as being subject to
October 9, 20124462012–41 I.R.B.

this notice on the Indian Tribal Govern-
ments page on the Internal Revenue Ser-
vice website,www.irs.gov. The federal in-
come tax treatment of otherper capitapay-
ments made by the Secretary of the Interior
or Indian tribes to members of Indian tribes
is outside the scope of this notice and may
be addressed in future guidance.
DRAFTING INFORMATION
The principal author of this no-
tice is Sheldon Iskow of the Office of
Associate Chief Counsel (Income Tax &
Accounting). For further information,
please contact Mr. Iskow at (202)
622–4920 (not a toll-free call).
2012–41 I.R.B.447October 9, 2012

Appendix
Tribes That Have Entered into Settlement Agreements of Tribal Trust Cases
1. Assiniboine and Sioux Tribes of the Fort Peck Reservation
2. Bad River Band of Lake Superior Chippewa Indians
3. Blackfeet Tribe of the Blackfeet Indian Reservation
4. Bois Forte Band of Chippewa
5.
Cachil Dehe Band of Wintun Indians of the Colusa Rancheria
6. Chippewa Cree Tribe of the Rocky Boy’s Reservation
7. Coeur d’Alene Tribe
8. Confederated Salish and Kootenai Tribes
9. Confederated Tribes of Siletz Indians
10. Confederated Tribes of the Colville Reservation
11. Confederated Tribes of the Goshute Reservation
12. Crow Creek Sioux Tribe
13. Eastern Shawnee Tribe of Oklahoma
14. Hualapai Indian Tribe
15.
Iowa Tribe of Kansas and Nebraska
16. Kaibab Band of Paiute Indians of Arizona
17. Kickapoo Tribe of Kansas
18. Lac Courte Oreilles Band of Lake Superior Chippewa Indians
19. Lac du Flambeau Band of Lake Superior Chippewa Indians
20. Leech Lake Band of Ojibwe
21. Lower Brule Sioux Tribe
22. Makah Indian Tribe of the Makah Reservation
23. Mescalero Apache Tribe
24. Minnesota Chippewa Tribe
25.
Nez Perce Tribe
26. Nooksack Indian Tribe
27. Northern Cheyenne Tribe of Indians
28. Omaha Tribe o Nebraska
29. Passamaquoddy Tribe of Maine
30. Pawnee Nation
31. Prairie Band of Potawatomi Nation
32. Pueblo of Zia
33. Quechan Tribe of the Fort Yuma Reservation
34. Red Cliff Band of Lake Superior Chippewa Indians
35.
Rincon Luiseño Band of Indians
36. Rosebud Sioux Tribe
37. Round Valley Indian Tribes
38. Salt River Pima-Maricopa Indian Community
39. Santee Sioux Tribe of Nebraska
40. Sault Ste. Marie Tribe
41. Shoshone-Bannock Tribes of the Fort Hall Reservation
42. Soboba Band of Luiseno Indians
43. Spirit Lake Dakotah Nation
44. Spokane Tribe of Indians
45.
Standing Rock Sioux Tribe
46. Stillaguamish Tribe of Indians
47. Summit Lake Paiute Tribe
48. Swinomish Indian Tribal Community
49. Te-Moak Tribe of Western Shoshone Indians
50.
Tohono O’odham Nation
51.
Tulalip Tribes
52.
Tule River Indian Tribe
53.
Ute Indian Tribe of the Uintah and Ouray Reservation
54.
Ute Mountain Ute Tribe
55.
Winnebago Tribe of Nebraska
October 9, 20124482012–41 I.R.B.

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:
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 filing information returns electronicallyis http://fire.irs.gov. The Filing Information Returns
Electronically (FIRE) systemand the test systemwill be down from 6 p.m. ETDecember 14, 2012, through January 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.
Rev. Proc. 2012–37
TABLE OF CONTENTS
Part A. General
SEC. 1. PURPOSE................................................................................................. 450
SEC. 2. WHAT’S NEW FOR TAX YEAR 2012......................................................................... 450
SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, INFORMATION RETURNS BRANCH (IRB).................. 451
SEC. 4. FILING REQUIREMENTS AND DUE DATES.................................................................. 452
SEC. 5. FORM 8508,REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS
ELECTRONICALLY
........................................................................................ 453
SEC. 6. FORM 4419, APPLICATION FORFILING INFORMATION RETURNS
ELECTRONICALLY (FIRE)
................................................................................ 453
SEC. 7. STATE ABBREVIATIONS................................................................................... 454
SEC. 8. PENALTIES ASSOCIATED WITH INFORMATION RETURNS.................................................. 455
SEC. 9. CORRECTED RETURNS, PAPER FORMS, AND COMPUTER-GENERATED FORMS.............................. 455
SEC. 10. VALIDATION OF FORM 8027 AT IRS....................................................................... 455
SEC. 11. DEFINITION OF TERMS.................................................................................. 456
Part B. Electronic Filing Specifications
SEC. 1. GENERAL................................................................................................ 457
SEC. 2. ELECTRONIC FILING APPROVAL PROCEDURE............................................................. 457
2012–41 I.R.B.449October 9, 2012

SEC. 3. TEST FILES............................................................................................... 457
SEC. 4. ELECTRONIC SUBMISSIONS............................................................................... 457
SEC. 5. PIN REQUIREMENTS...................................................................................... 458
SEC. 6. ELECTRONIC FILING SPECIFICATIONS.................................................................... 458
SEC. 7. CONNECTING TO THE FIRE SYSTEM....................................................................... 458
SEC. 8. COMMON PROBLEMS AND QUESTIONS ASSOCIATED WITH ELECTRONIC FILING........................... 461
Part C. Filing Specifications and Record Layout
SEC. 1. RECORD FORMAT........................................................................................ 462
SEC. 2. FORM 8027— RECORD LAYOUT........................................................................... 467
Part D. Extensions of Time
SEC. 1. GENERAL — EXTENSIONS................................................................................ 467
SEC. 2. SPECIFICATIONS FOR FILING EXTENSIONS OF TIME ELECTRONICALLY................................... 468
SEC. 3. RECORD LAYOUT — EXTENSION OF TIME................................................................. 469
SEC. 4. EXTENSION OF TIME FOR RECIPIENT COPIES OF INFORMATION RETURNS................................ 470
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
230 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
Sec. 1. Purpose
.01This Revenue Procedure supersedesRev. Proc. 2011–51published as Publication 1239 (Rev. October 31, 2011),Specifications
for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Electronically.
.02The purpose of this Revenue Procedure is to provide the specifications for filing Form 8027,Employer’s Annual Information
Return of Tip Income and Allocated Tips, with the IRS electronically through the IRS FIRE system. This Revenue Procedure must be
used for the preparation of Form 8027 for Tax Year 2012 and tax years prior to 2012 filedbeginning January 1, 2013.
.03All data received for processing will be given the same protection as individual income tax returns (Form 1040). The IRS will
process the data and determine if the records are formatted and coded according to this Revenue Procedure.
.04Generally, the box numbers on the paper forms correspond with the amount codes used to file electronically; however, if
discrepancies occur, the instructions in this Revenue Procedure must be followed when filing electronically.
.05The Instructions for Form 8027,Employer’s Annual Information Return of Tip Income and Allocated Tips, provide more de-
tailed filing procedures for form 8027.
Sec. 2. What’s New for Tax Year 2012
.01“Nature of Changes-Current Year” has beenchanged to “What’s New for Tax year 2012”.
.02Payment Year must be updated with the four digit reporting year (2011 to 2012), unless reporting prior year data.
.03Form 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 the IRS the minimum amount of time necessary to process and respond to applications.
.04A User Note area has been added between Part B and Part C.
October 9, 20124502012–41 I.R.B.

Reminders
In this publication, all titles of forms andpublications and pertinent changes for Tax Year2012are emphasized by the use ofitalics.
Portions of text that require special attention are in boldface text.
Filers are encouraged to read the publication in its entirety.
Sec. 3. Where To File and How to Contact the IRS, Information Returns Branch (IRB)
.01All information returns filed through the FIRE system are processed at the IRS. General inquiries concerning the filing of
information returns should be sent to the following address:
Internal Revenue Service
Information Returns Branch
230 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
.02All requests for an extension of time to file information returns with IRS filed on Form 8809,Application for Extension of
Time, or requests for an extension to provide recipient copies, and requests for undue hardship waivers filed on Form 8508,Request
for Waiver from Filing Information Returns Electronically, should be sent to the following address:
Internal Revenue Service
Information Returns Branch
Attn: Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
.03The telephone numbers and web addresses for questionsabout specifications for electronic submissions are:
Information Returns Branch
1–866–455–7438
Outside the U
.S. 1–304–263–8700
Telecommunication Device for the Deaf (TDD)
1–304–579–
4827
Fax
Within the
U.S. — 1–877–477–0572
Outside the U.S. — 304–579–4105
Filing Inf
ormation Returns Electronically (FIRE) System—h
ttp://fire.irs.gov
FIRE Test System—http://fire.test.irs.gov
TO OBTAIN
FORMS:
By phone — 1–800–TAX–FORM (1–800–829–3676)
I
RS.gov— Online Ordering for Information Returns and Employer Returns
h
ttp://
www.irs.gov/businesses/page/0,,id=23108,00.html
.04The 2012 Instructions for Form 8027,Employer’s Annual Information Return of Tip Income and Allocated Tips, are included
in Publication 1239 for the convenience of filers.
.05Form 4419,Application for Filing Information Returns Electronically (FIRE), Form 8809,Application for Extension of Time to
File Information Returns, and Form 8508,Request for Waiver From Filing Information Returns Electronically, may be faxed to IRS
at 1–877–477–0572.
.06Electronic Products and Services Support, Information ReturnsBranch (IRB), answers electronic, paper filing, and tax law
questions from the payer community relating to the correct preparation and filing of information returns (Forms 1096, 1097, 1098,
1099, 3921, 3922, 5498, 8027, 8935 and W-2G). IRB also answers questions about the electronic filing of Forms 1042-S, 8027, and
8955-SSA. In addition, IRB answers questions about tax law and paper filing instructions for FormsW-2 and W-3. Inquiries pertain-
ing to Notices CP2100 and 972CG, backup withholding, and reasonable cause requirements due to missing and incorrect Taxpayer
Identification Numbers (TINs) are also addressed by IRB. 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 (ET), by calling 1–866–455–7438.
2012–41 I.R.B.451October 9, 2012

Call as soon as questions arise to avoid the busy filing seasons at the end of January, February, and March. Recipients of information
returns (payees) should continue to contact 1–800–829–1040 with any questions on how to report the information returns data on their
individual tax returns.
IRB also offers an email address for transmitters and electronic filers of information returns. The address is m
ccirp@irs.gov.When
sending emails concerning specific file information, include the company name and the electronic filename or Transmitter Control
Code (TCC). Do not submit TINs or attachments, because electronic mail is not secureand the information may be compromised.
.07IRB does not answer questions on penalty notices or requests for abatement of the penalty, refer to the Penalties section of the
2012 General Instructions for Certain Information Returns. Penalty notices contain an IRS representative’s name and/or telephone
number for contact purposes or a response may be required in writing sent to the address provided.
.08IRB assistors cannot advise filers where to send state copies of paper forms. Filers must contact the tax department in the state
where the recipient resides to obtain thecorrect address and filing requirements.
.09Form 8027-T,Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, is used to transmit Form
8027 to the IRS. Follow the mailing instructions on Form 8027-T and submit the paper returns to the appropriate IRS Service Center.
.10Questions pertaining to electronic filing of Forms W-2,Wage and Tax Statement, must be directed to the Social Security Ad-
ministration (SSA). Filers can call 1–800–772–6270 to obtain the telephone number of the SSA Employer Service Liaison Officer for
their area.
.11A taxpayer or authorized representative may request a copy of atax return, including Form W-2 filed with a return, by submit-
ting Form 4506,Request for Copy of Tax Return, to IRS. See section 3.03 for information on obtaining paper forms. For questions
regarding this form, call 1–800–829–1040.
Sec. 4. Filing Requirements and Due Dates
.01The regulations under section 6011(e)(2)(A) of the Internal Revenue Code provide that any person, including a corporation,
partnership, individual, estate, or trust, who is required to file 250or more information returns must file such returns electronically.
The 250 or more requirement applies separately for each typeof return and separately toeach type of corrected return.Note:Filers
are encouraged to file information returns electronically even if they do not meet the required 250 information returns.
.02All filing requirements that follow apply individually to each reporting entity as defined by its separate Taxpayer Identification
Number (TIN). For example, if a corporation with several branches or locations uses the same Employer Identification Number (EIN),
the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of
return accordingly.
.03The above requirements do not apply in cases of undue hardship (see Part A, Sec. 5).
.04Filers must not submit the same information on paper forms that are submitted electronically, since this will result in duplicate
filing. This does not mean that corrected documents should not be filed. If a return has been prepared and submitted improperly,
a corrected return must be filed as soon as possible. Refer to Part A, Sec. 9, for requirements and instructions for filing corrected
returns.
.05When an allocation of tips is based on a good-faith agreement, a copy of the agreement must be submitted within three busi-
ness days after receiving acknowledgement that the IRS has accepted the electronically filed Form 8027. Fax the agreement to
859–669–2256 or mail a copy of this agreement to:
Internal Revenue Service
Attn: ICO ERS Stop 36101
201 West River Center Blvd.
Covington, KY 41011
In the fax transmittal or cover letter, the filer must include the words “Form 8027 attachment(s)” and the following information with
respect to the Form 8027 to which the agreement applies: name of establishment, name of employer, EIN (Employer Identification
Number), establishment number, Transmitter Control Code (TCC), and the tax year of the Form 8027.
.06Employers can request a lower rate (but not lower than two percent) for tip allocation purposes by submitting an application to
the IRS. See Sec. 31.6053–3(h) of the Employment Tax Regulations. Detailed instructions for requesting a lower rate can be found
in the Instructions for Form 8027. The IRS will issue a determination letter to notify the employer when and for how long a reduced
rate is effective. If a lower rate is used on Form 8027 based on the IRS determination letter, a copy of this letter must be submitted
within three business days after receiving acknowledgement thatthe IRS has accepted the electronically filed Form 8027. Filers must
fax the letter to 859–669–2256 or mail a copy of the letter to:
October 9, 20124522012–41 I.R.B.

Internal Revenue Service
Attn: ICO ERS Stop 36101
201 West River Center Blvd.
Covington, KY 41011
In the fax transmittal or cover letter, filers must include the words “Form 8027 attachment(s)” and the following information with
respect to the Form 8027 to which the rate applies: name of establishment, name of employer, EIN, establishment number, Transmitter
Control Code (TCC), and the tax year of the Form 8027.
.07Electronic reporting to the IRS for Form 8027 must be on a calendar year basis. The due date for filing paper Forms 8027 is
the last day of February. Form 8027 filed by paper is due February 28, 2013. Form 8027 filed electronically is due March 31, 2013.
.08If the due date of the return falls on a Saturday, Sunday, or legal holiday, filing Form 8027 on the next day that is not a Saturday,
Sunday, or legal holiday will be considered timely. Because March 31, 2013, falls on a Sunday, Form 8027 for tax year 2012 will be
considered timely when submitted by Monday, April 1, 2013.
Sec. 5. Form 8508,Request for Waiver from Filing Information Returns Electronically
.01If an employer is required to file electronically but fails to do so, and does not havean approved waiver on record, the employer
will be subject to a penalty of $100 per return in excess of 250.
.02If an employer is required to file original or corrected returns electronically, but such filing would create an undue hardship; a
waiver from these filing requirements may be requested by submitting Form 8508,Request for Waiver from Filing Information Returns
Electronically, to the IRS. Form 8508 can be obtained on the IRS website at IRS.gov or by calling 1–800–829–3676.
.03Although an employer may submit as many as 249 corrections on paper, the IRS encourages electronic filing of corrections.
Once the 250 threshold has been met, filers are required to submit any additional returns electronically. However, if a waiver for an
original filing is approved, any corrections for the same type of returns will be covered under that waiver.
.04Generally, only the employer may sign Form 8508. A transmitter may sign if given power-of-attorney; however, a letter signed
by the employer stating this fact must be attached to the Form 8508.
.05A transmitter must submit a separate Form 8508 for each employer. Do not submit a list of employers.
.06All information requested on the Form 8508 must be provided to the IRS for the request to be processed.
.07The waiver, if approved, will provide exemption from electronic filing for the current tax year only. Employers may not apply
for a waiver for more than one tax year.
.08Form 8508 may be photocopied or computer-generated as long as itcontains all the information requested on the original form.
.09Filers are encouraged to submit Form 8508 to the IRS at least 45 days before the due date of the returns, but no later than the
due date of the returns for which the waiver is being requested. IRS does not process waiver requests until January.
.10All waiver requests must be sent to the following address:
Internal Revenue Service
Information Returns Branch
Attn: Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
.11File Form 8508 for the W-2 series of forms with the IRS, not SSA.
.12Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth under section 6011(e) of
the Internal Revenue Code. The transmitter must allow a minimum of 30 days for the IRS to respond to a waiver request.
.13If a waiver request is approved, the transmitter should keep the approval letter on file.
.14An approved waiver from filing Forms 8027 electronically does not provide exemption from filing. The employer must timely
file Forms 8027 on acceptable paper forms with the Service Center address shown in the Instructions for Form 8027. When filing
paper Forms 8027, attach a copy of the approved waiver.
Sec. 6. Form 4419,Application for Filing Information Returns Electronically (FIRE)
.01For the purposes of this revenue procedure, the EMPLOYER is the organization supplying the information and the TRANS-
MITTER is the organization preparing the electronic file and/or sending the file to the IRS. The employer and the transmitter may
be the same entity. Employers or their transmitters are required to submit Form 4419,Application for Filing Information Returns
Electronically (FIRE), to request authorization to file information returns with the IRS. Form 4419 is subject to review before the
approval to transmit electronically is granted. The IRS may requireadditional documentation. If a determination is made concerning
2012–41 I.R.B.453October 9, 2012

the validity of the documents transmitted electronically, the IRS has the authority to revoke the Transmitter Control Code (TCC) and
terminate the release of files.
.02Form 4419 can be submitted at any time during the year; however, it should be submitted to the IRS at least45 daysbefore
the due date of the return(s). Upon approval, a five-character alphanumeric Transmitter ControlCode (TCC) will be assigned and
included in an approval letter. Electronic returns may not be filed with the IRS until the application has been approved and a TCC
assigned. The TCC must be included in any correspondence with the IRS.
.03If transmitters file information returns other than Form 8027 electronically, they must obtain a separate TCC for those types of
returns. The TCC assigned for Forms 8027 is to be used for the submission of these forms only.
.04After approval to file electronically has been received, transmitters are not requiredto reapply each year; however, notify the
IRS in writing if:
•There is a change in the contact person’s name, the name of the organization or the organization’s Employer Identification Number,
so that the database can be updated toreflect the correct information
•The transmitter discontinued filing for two years (the TCC may have been reassigned).
.05The IRS encourages transmitters who plan to file returns for multiple employers to submit one application and to use one TCC
for all employers.
.06Approval to file does not imply endorsement by the IRS of any computer software or of the quality of tax preparation services
provided by a service bureau or software vendor.
Sec. 7. State Abbreviations
.01The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields.
Table 1: State & U.S. Territory Abbreviations
StateCodeStateCodeStateCode
AlabamaALKentuckyKYOhioOH
AlaskaAKLouisianaLAOklahomaOK
American SamoaASMaineMEOregonOR
ArizonaAZMarylandMDPennsylvaniaPA
ArkansasARMassachusettsMAPuerto RicoPR
CaliforniaCAMichiganMIRhode IslandRI
ColoradoCOMinnesotaMNSouth CarolinaSC
ConnecticutCTMississippiMSSouth DakotaSD
DelawareDEMissouriMOTennesseeTN
District of ColumbiaDCMontanaMTTexasTX
FloridaFLNebraskaNEUtahUT
GeorgiaGANevadaNVVermontVT
GuamGUNew HampshireNHVirginiaVA
HawaiiHINew JerseyNJU.S. Virgin IslandsVI
IdahoIDNew MexicoNMWashingtonWA
Illinoi
s
ILNew YorkNYWest Vir
ginia
WV
IndianaINNorth CarolinaNCWisconsinWI
IowaIANorth DakotaNDWyomingWY
KansasKSNo. Mariana IslandsMP
.02Filers must adhere to the city, state, and ZIP Code format for U.S. addresses. This also includes American Samoa, Guam, and
the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
Note:Form 8027 is required only for establishments in the 50 states and the District of Columbia.
October 9, 20124542012–41 I.R.B.

Sec. 8. Penalties Associated With Information Returns
.01The following penalties generally apply to the person requiredto file information returns. The penalties apply to electronic
filers as well as to paper filers.
.02F
ailureToFileCorrectInformationReturnsbytheDueDate(Section6721). If you fail to file a correct information return by
the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely,
you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also
applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you
fail to file paper forms that are machine readable.
The amount of the penalty is based on when you file the correct information return. The penalty is:
•$30per information return if you correctly file within 30 daysof the due date of the return (See Part A, Sec. 4.07); maximum
penalty $250,000 per year ($75,000 for small businesses).
•$60per information return if you correctly file more than 30 days after the due date but by August 1, 2013; maximum penalty
$500,000 per year ($200,000 for small businesses).
•$100per information return if you file after August 1, 2013 or you do not file required information returns; maximum penalty
$1.5 million per year ($500,000 for small businesses).
.03L
ateFilingPenalty. If a replacement file is not transmitted by the required date, a penalty may be assessed. See Part B, Sec.
4.05, for more information on replacement files.
.04I
ntentionalDisregardofFilingRequirements. If the failure to file correct information returns is due to intentional disregard of
the filing requirements, the penalty is at least $250 per information return with no maximum penalty.
.05F
ailuretoFurnishCorrectPayeeStatements(Section6722). For information regarding penalties which may apply to failure to
furnish correct payee statements, see the Penalties Section of the2012 General Instructions for Forms W-2 and W-3.
Sec. 9. Corrected Returns, Paper Forms, and Computer-Generated Forms
.01If returns must be corrected, approved electronic filers must provide such corrections electronically if filing 250 or more cor-
rected forms. If filed electronically, corrected returns are identified by using the “Corrected 8027 Indicator” in field position 370 of
the employer record.
.02A correction file must be identified by entering the correction indicator “G” in position 370.
.03When replacing a correction file that was bad, a replacement file must be submitted. When replacing a correction file, the
correction indicator “G” must be entered in position 370.
.04If corrections are not submitted electronically, employers mustsubmit them on official Forms 8027. Substitute forms that have
been previously approved by the IRS, or computer-generated forms that are exact facsimiles of the official form (except for minor
page size or print style deviations), may be submitted without obtaining IRS approval before using the form.
.05Employers may send corrected paper Forms 8027 to the IRS at theaddress shown in Part A, Sec. 9.06. Corrected paper returns
are identified by marking the “AMENDED” check box on Form 8027.
.06If filing more than one paper Form 8027, attach a completed Form 8027-T,Transmittal of Employer’s Annual Information
Return of Tip Income and Allocated Tips, to the Forms 8027 and send to:
Department of the Treasury
Int
ernal Revenue Service Center
Cincinnati, OH 45999
IRB processes Forms 8027 submitted electronically only. Employers must not send paper Forms 8027 to IRB.
.07If part of a submission is filed electronically and the rest of the submission is filed on paper Forms 8027, send the paper forms
to the Service Center address shown in the Instructions for Form 8027. For example, Forms 8027 were filed electronically with IRS,
and later ten of the forms filed need to be corrected. The filer may submit the corrections on paper Forms 8027 because the number of
corrections filed is under the 250 threshold. These corrected paper Forms 8027 must be sent, along with Form 8027-T, to the Service
Center address shown in the Instructions for Form 8027.
Sec. 10. Validation of Form 8027 at IRS
.01The accuracy of data reported on Form 8027 will be validated at the IRS Service Center. All fields indicated as “Required” in
the record layout must contain valid information. If the IRS identifies an error, filers will be notified and required to provide correct
information.
.02The address for the establishment must agree with the state and zip code. If there are inconsistencies or if the zip code does not
agree with the address, it will result in a file status of “Bad.”
2012–41 I.R.B.455October 9, 2012

.03All alpha characters must be in upper case.
.04The following is a clarification of monetary amount requirements:
(a) Charged Receipts (positions 260–271) must exceed Charged Tips (positions 248–259).
(b) Total Tips Reported (positions 308–319) must equal the combined amount of the Indirect Tips (positions 284–295) and Direct
Tips (positions 296–307).
(c) Gross Receipts (positions320–331) must exceed all other monetary amounts with the exception that Gross Receipts could
equal Charged Receipts if all transactions were conducted on charge cards.
(d) The Tip Percentage Rate Times Gross Receipts (332–343) must equal the Gross Receipts times the Tip Rate. Normally, the
Tip Rate is 8 percent. The Tip Rate must be entered as 0800 in positions 344–347 unless the IRS has granted a lower rate.
(e) Generally, an employer would have allocated tips if the Total Tips Reported (positions 308–319) is less than the Tip Percentage
Rate Times Gross Receipts (positions 332–343). The difference must be entered as Allocated Tips (positions 348–359).
Sec. 11. Definition of Terms
ELEMENTDESCRIPTION
CorrectionA correction is an information return submitted by the employer/transmitter to correct an information
return that was previously submitted to and successfully processed by the IRS, but contained erroneous
information.
EINA nine-digit Employer Identification Number whichhas been assigned by the IRS to the reporting entity.
Employees hours
worked
The average number of employee hours worked per business day during a month is figured by dividing
the total hours worked during the month by all your employees who are employed in a food or beverage
operation by the average number of days in the month that each food or beverage operation at which
these employees worked was open for business.
EmployerThe entity or individual required to report the information. Use the same name and EIN used on
Forms W-2 and Forms 941.
EstablishmentA large food or beverage establishment thatprovides food or beverage for consumption on the premises;
where tipping is a customary practice; and wherethere are normally more than ten employees who
work more than 80 hours on a typical businessday during the preceding calendar year.
FileFor the purpose of this revenue procedure, a file is the Form 8027 information submitted electronically
by an Employer or Transmitter.
More than ten
employees
An employer is considered to have more than ten employees on a typical business day during the
calendar year if half the sum of: the average number of employee hours worked per business day
in the calendar month in which the aggregate gross receipts from food and beverage operations
were greatest, plus the average number of employee hours worked per business day in the calendar
month in which the total aggregate gross receipts from food and beverage operations were the least,
equals more than 80 hours.
ReplacementA replacement is an information return file sent by the employer/transmitter at the request of the IRS
because of errors encountered while processingthe filer’s original file or correction file.
TransmitterThe person or organization preparing electronic file(s). This may be the employer or an agent of the
employer.
Transmitter Control
Code (TCC)
A five-character alphanumeric code assigned by the IRS to the transmitter prior to electronically filing.
This number is inserted in the record and must be present in all files submitted electronically through
the FIRE system. An application (Form 4419) must be filed with the IRS to receive this number.
Part B. Electronic Filing Specifications
Note 1:The FIRE system does not provide fill-in forms, except for Form 8809,Application for Extension of Time to File Information
Returns. Filers must program files according to theRecord Layout Specificationscontained in this publication. For a list of software
providers, log on to I
RS.govand type “Business e-file Providers” in the Search box.
October 9, 20124562012–41 I.R.B.

Note 2:The FIREand FIRE Testsystems may be down every Wednesday from 2:00 a.m. to 5:00 a.m. ET for programming updates
and for two weeks at the end of the year for yearly updates. The FIREand FIRE Testsystems will not be available for submissions
during these times.
Sec. 1. General
.01Electronic filing of Forms 8027, originals and replacements, is a rep
orting method required for filers submitting 250 or more
Forms 8027. Employers who are under the filing threshold requirement ar
e encouraged to file electronically.
.02All electronic filings of information returns are received at the IRS
through the FIRE system. To connect to the FIRE system,
point the browser to h
ttp://fire.irs.gov. The system is designed to su
pport the electronic filing of information returns only.
.03The electronic filing of information returns is not affiliated wit
h any other IRS electronic filing programs. Filers must obtain
separate approval to participate in each program. Only inquiries conc
erning electronic filing of information returns should be directed
to IRB.
.04Files submitted to the IRS electronically must be in standard ASCII
code. Do not send paper forms with the same information
as electronically submitted files.This creates duplicate reporting
resulting in penalty notices.
.05Form 8809,Application for Extension of Time to File Information R
eturns, is available as a fill-in form on the FIRE system.
Filers that do not already have a User ID and password should refer to S
ection 7. At the Main Menu, click “Extension of Time
Request” and then click “Fill-in Extension Form”. This option is onl
y used to request an automatic 30 day extension and must be
completed by the due date of the return for each employer requesting a
n extension. Filers should print the approval page for a record
of the approved extension. Refer to Part D for additional details.
Sec. 2. Electronic Filing Approval Procedure
.01Filers must obtain a Transmitter Control Code (TCC) prior to submitting files electronically. Refer to Part A, Sec. 6, for
information on how to obtain a TCC.
.02Once a TCC is obtained, electronic filers must create a User ID, password, and PIN (Personal Identification Number). 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 assigned at first logon and must be eight alphanumeric characters containing at least one uppercase, one lowercase,
and one numeric. 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 the 90-day time frame. Users can change passwords at any time
from the Main Menu. The previous 24 passwords cannot be used.
Sec. 3. Test Files
.01Electronic information return filers arenot 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. If filers wish to submit an electronic test file for Tax Year2012(returns to
be filed in2013), it must be submitted to IRS no earlier thanNovember 1, 2012, and no later thanFebruary 15, 2013. To connect to
the FIRE test system, point the browser to h
ttp://fire.test.irs.gov.
.02Filers who encounter problems while transmitting the electronic test file can contact IRS at 1–866–455–7438 for assistance.
.03Filers will be notified by email as to the acceptability of the file (if a valid email address was provided on the “Verify Your Filing
Information” screen) within five days after a file has been submitted.If you are 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 anemail is not received within five business days, filers should
log into the FIRE system and click on CHECK FILE STATUS to view the results of the file.
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 FIREand FIRE Testsystem will be down from 6:00 p.m. ETDecember 14, 2012, through January 2, 2013.ThisallowsIRS
to make yearly updates to reflect current year changes. In addition, the FIREand FIRE Testsystems 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.
.03A file may not exceed 2.5 million records. When sending files larger than 10,000 records electronically, data compression is
encouraged. WinZip and PKZIP are the only acceptable compression packages. IRS cannot accept self-extracting zip files or com-
pressed files containing multiple files. The amount of time required to transmit informationreturns electronically will vary depending
upon the type of connection to the internet and if data compression is used. The time required to transmit a file can be reduced
2012–41 I.R.B.457October 9, 2012

up to 95 percent by using compression.If you are having trouble transmitting files with a scripting process, please 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 the submission type, the filer’s TCC and
a four-digit sequence number. The sequence number will be incremental for every file sent. For example, if this is the first original
file for the calendar year and the TCC is 44444, the IRS assigned filename would be ORIG.44444.0001. Record the filename. This
information will be needed by the IRS to identify the file, if assistance is required.
.05If a timely submitted file is bad, the filer will have up to 60 days from the day the file was transmitted to submit an acceptable
replacement file. If an acceptable replacement file is not received within 60 days, the employer may be subject to late filing penalties.
.06The definitions of “correction” and “replacement” have been provided in Part A Section 11 to help distinguish between a
correction and a replacement:Note:Corrections should only be made to records that have been submitted incorrectly, not the entire
file. Filers should never transmit anything to the IRS as a “Replacement” file unless the CHECK FILE STATUS option on the FIRE
system indicates a previous file was bad.
.07Prior year data may be submitted; however, each tax year must besubmitted in a separate file transmission. For prior year
data, use the current year format, enter the tax year being reported in field positions 375–378, and enter a “P” in field position 379 to
indicate the file contains prior year data.
Sec. 5. PIN Requirements
.01Filers will be prompted to cr
eate a PIN consisting of ten (10) numeric characters when establishing an initial User ID name and
password.
.02The PIN is required each time
an ORIGINAL, CORRECTION, or REPLACEMENT file is sent electronically and is permission
to release the file. The PIN is no
t needed for a TEST file. Authorized agent may enter their PIN; however, the payer is responsible for
the accuracy of the returns. Th
e payer will be liable for penalties for failure to comply with filing requirements. If there is a problem
with a PIN, filers should call 1
–866–455–7438 for assistance.
Sec. 6. Electronic Filing Specifications
.01The FIRE System is designed exclusively for the filing of Forms 8027, 1097, 1098, 1099, 3921, 3922, 5498, 8935, 8955-SSA,
W-2G, and 1042-S.
.02A transmitter must have a TCC (see Part A,Sec. 6) before a file can be transmitted.
.03The results of the electronic transmission(s) will be sent to the email address that was provided on the “Verify Your Filing
Information” screen within five days of transmission. If you are using email filtering software, configure the software to accept email
from f
ire@irs.govand irs.e-helpmail@irs.gov. If the email indicates the file is bad, the filer must log into the FIRE system and go to
the CHECK FILE STATUS area to determine what errors are in the file. If filers do not receive an email in five business days, they
must log back into the FIRE system and click on CHECK FILE STATUS to view the results of the file.
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 http://fire.test.irs.govto connect to the FIRE test system
(November 1, 2012 through February. 15, 3013).
.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)
October 9, 20124582012–41 I.R.B.

.07 FirsttimeconnectiontoTheFIRESystem(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, containingat least one uppercase, one lowercase, 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.)
•Click“Create”
•If the message“Account Created,”is received, click“OK”
•Create 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”
.08 S
ubsequentco
nnectionstotheFIREsystem
•Click“Log On”
•Enter theUser ID
•Enter thePassword(the password is case sensitive)
•Read the bulletin(s) and/or“Click here to continue”
.09 U
ploadingafiletotheFIRESystem
At the Menu Options:
•Click“Send Infor
mation Returns”
•Enter theTCC
•Enter theTIN
•Click“Submit”
The system will the
n 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.”
Note:Please provi
de an accurate email address for the correct personto receive the email and to avoid having the email
returned to the IR
S as undeliverable. If SPAM filtering software is being used, configure it to allow an email from f
ire@irs.gov
and irs.e-helpma
il@irs.gov.
Click one of the fo
llowing:
•Original File
•Replacement File
•Correction File
•Test File(This option will only be available from November 1 through February 15 at
http://fire.test.irs.gov.)
2012–41 I.R.B.459October 9, 2012

.09 UploadingafiletotheFIRESystem
Enter the ten-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 willdisplay the total bytes received and the IRS
assigned filename for the file.
Note:If this information is not displayed on thescreen, IRB may not have received 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 thefile. If the filename is not 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. If an email is not received within five (5) business
days or an email is received and it indicates the file is bad, log back into the FIRE system and click on “CHECK FILE
STATUS”toviewtheresultsofthefile(s).
.10 CheckingtheFILESTATUS
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, not Released” and the “Count of Payees” is correct,
the filer is finished with this file. If the email indicates any other results, follow the instructions below.
At the Main Menu:
•Click“Check File Status”
•Enter theTCC
•Enter theTIN
•Click“Search”
If the results on h
ttp://fire.irs.govindicate:
“Good, Not Rele
ased”— If the “Count of Payees” is correct, the filer is finished with this
file. The file w
ill automatically be released after tencalendar days unless the filer contacts
IRS within this
timeframe.
“Good, Released”— The file has been released to our mainline processing.
“Bad”— The file has errors. Click on the filename to view the error message(s), fix the
errors, and resubmit the file timely as a “replacement”.
“Not yet proce
ssed”— The file has been received, but results are not available. Please
check back in a
few days.
October 9, 20124602012–41 I.R.B.

When finished
•Click“Log Out”
•Click“Close Web
Browser”
Sec. 8. Common Problems and Questions Associated with Electronic Filing
.01The following are the major errors associated with electronic filing:
C
OMMONNON-FORMATERRORS
1. SPAM filters are not set to receive email from fire@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.
2. Incorrect em
ail address provided.
When the “Verify
Your Filing Information” screen is displayed, make surethe correct email address is displayed. If not, please
update with the
correct email address.
3. Transmitter does not check the FIRE system to determine file acceptability.
Generally, the results of file transfers are posted to the FIRE system within five business days. If the correct email address was
provided on the “Verify Your Filing Information” screen whenthe file was sent, an email will be sent regarding the FILE
STATUS. If the results in the email indicate “Good, Not Released” and the “Count of Payees” is correct, the filer is finished with
this file. 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. If the file status is good, but the file should not be processed, filers should contact IRS
within ten calendar days from the transmission of the file.
4. Replacement file is not submitted timely.
If a file is bad, correct the file and resubmit timely as a replacement.
5. Transmitt
er compresses several files into one.
Only compres
s one file at a time. For example, if there are ten uncompressed files to send, compress each file separately and
send ten sepa
rate compressed files.
6. Transmitter sends an original file that is good, and then sends a correction file for the entire file even though there are
only a few changes.
The correction file, containing the proper coding, should only contain the records requiring correction, not the entire file.
7. File is formatted as EBCDIC.
All files submitted electronically must be in standard ASCII code. All alpha characters must be uppercase.
8. Transmit
ter has one TCC, but is filing for multiple companies, which TIN should be used when logging into the
FIRE system
to send a file?
When sendin
g the file electronically, enter the TIN of the company assigned to the TCC. The uploaded file should contain the
TINs for the
businesses that made payments that are subject to reporting on information returns. The payer TIN is the information
that will be
passed forward.
2012–41 I.R.B.461October 9, 2012

COMMONNON-FORMATERRORS
9. Transmitter sent the wrong file, what should be done?
Call IRS at 1–866–455–7438. IRS may be able to stop the file before it has been processed.
10. Transmitter sends a file and “CHECK FILE STATUS” indicates that the file is good, but the transmitter wants to send
another file containing the same information.
Once a file has been transmitted, a replacement file cannotbe sent unless the “CHECK FILE STATUS” indicates the file
is bad (five business days after the file was transmitted). If a file should not be processed, contact IRS at 1–866–455–7438 to
see if the processing can be stopped.
Part C. Filing Specifications and Record Layout
.01If the file does not meet these specifications, the IRS will request a replacement file. Filers are encouraged to submit a test
prior to submitting the actual file. Contact IRS at 1–866–455–7438 for further information.
.02Do not use decimal points (.) to indicate dollars and cents. Payment Amount Fields must be all numeric characters. If the field
is not used, fill with zeros (0).
Note:The only allowable characters in the nameand address fields are alphas, numerics, and blanks. Punctuation marks such as
periods, hyphens, ampersands, slashes, and commas are not allowedandwillcausethefiletoberejected. For example, O’Hurley’s
Bar & Grill, 210 N. Queen St., Suite #300 must be entered as OHurleys Bar Grill 210 N Queen St Suite 300.
Sec. 1. Record Format
FORM 8027 RECORD FORMAT
Field
PositionField TitleLength Description and Remarks
1Establishment Type 1
Required.This number identifies the kind of establishment. Enter the number
which describes the type of establishment, as shown below:
I
ndicator
Usage
1An establishment that serves evening
meals only (with or without alcoholic
beverages)
2An establishment that serves evening
meals and other meals (with or without
alcoholic beverages)
3An establis
hment that serves only
meals othe
r than evening meals (with
or without
alcoholic beverages)
4An establishment that serves food, if
at all, only as an incidental part of the
business of serving alcoholic beverages.
2–6Establishment Serial
Numbers
5Required.
These five-digit serial numbers are for identifying individual
establis
hments of an employer reporting under the same EIN. The employer will
assign a u
nique number to each establishment. Numeric characters only.
7–46Establis
hment Name
40
Required.Enter the name of the establishment. Left- justify information and
fill unused positions with blanks. Allowable characters are alphas, numerics,
and blanks.
October 9, 20124622012–41 I.R.B.

FORM 8027 RECORD FORMAT
Field
PositionField TitleLength Description and Remarks
47–86Establishment Street
Address
40
Required.Enter the mailing address of the establishment. The street address
should include the number, street, apartment, or suite number (use a PO Box
only if mail is not delivered to a street address). Left-justify information and
fill unused positions with blanks. Allowable characters are alphas, numerics,
and blanks.
87–111Establishment City
25Required.Enter the city, town, or post office. Left-justify and blank fill.
Allowable characters are alphas, numerics, and blanks.
112–113Establishment State 2
Required.Enter the state code from the state abbreviations table in Part A,
Sec. 7.
114–122Establishment ZIP
Code
9
Required.Enter the complete nine-digit zip code of the establishment. If using
a five-digit ZIP Code, left-justify the five-digit ZIP Code and fill the remaining
four positions with blanks.
123–131Employer
Identification
Number
9
Required.Enter the nine-digit number assigned to the employer by the IRS. Do
not enter hyphens, alphas, all 9s or all zeros.
132–171Employer Name40
Required.Enter the name of the employer as it appears on Form 941. Any
extraneous information must be deleted. Left-justify information and fill unused
positions with blanks. Allowable characters are alphas, numerics and blanks.
172–211Employer Street
Address
40
Required.Enter the mailing address of the employer. The street address should
include the number, street, apartment, or suite number (use a P O Box only if
mail is not delivered to a street address). Left-justify information and fill unused
positions with blanks. Allowable characters are alphas, numerics, and blanks.
212–236Employer City
25Required.Enter the city, town, or post office. Left-justify the information and
fill unused positions with blanks. Allowable characters are alphas, numerics,
and blanks.
237–238Employer State2
Required.Enter the state code from the state abbreviations table in Part A,
Sec. 7.
239–247Employer ZIP Code 9
Required.Enter the complete nine-digit zip code of the employer. If using a
five-digit zip code, left-justify the five-digit zip code and fill the remaining four
positions with blanks.
NOTE:The zip code must be nine numeric characters or five numeric characters and four blanks. Do not enter the dash.
248–259
Charged Tips12
Required.Enter the total amount of tips that are shown on charge receipts for
the calendar year. Amount must be entered in U.S. dollars and cents. The right-
most two positions represent cents. Right-justify information and fill unused
positions with zeros. If this field is not utilized, enter zeros. Numeric characters
only. Do not enter decimal points, dollar signs, or commas.
260–271Charged Receipts12
Required.Enter the total sales for the calendar year other than carry-out
sales or sales with an added service charge of ten percent or more, that are on
charge receipts with a charged tip shown. This includes credit card charges,
other credit arrangements, and charges to a hotel room unless the employer’s
normal accounting practice consistently excludes charges to a hotel room. Do
not include any state or local taxes in the amount reported. The amount must
be entered in U.S. dollars and cents. The right-most two positions represent
cents. Right-justify information and fillunused positions with zeros. If this field
is not utilized, enter all zeros. Numericcharacters only. Do not enter decimal
points, dollar signs, or commas.
2012–41 I.R.B.463October 9, 2012

FORM 8027 RECORD FORMAT
Field
PositionField TitleLength Description and Remarks
272–283Service Charge Less
Than 10 Percent
12
Required.Enter the total amount of servicecharges less than 10 percent added
to customers’ bills and distributed toyour employees for the calendar year. In
general, service charges added to the bill are not tips since the customer does not
have a choice. These service charges are treated as wages and are included on
Form W-2. Amount must be entered in U.S. dollars and cents. The right-most
two positions represent cents. Right-justify and zero fill. If no entry, zero fill.
Numeric characters only. Do not enter decimal points, dollar signs, or commas.
284–295
Indirect Tips
Reported
12
Required.Enter the total amount of tips reported by indirectly tipped employees
(e.g., bussers, service bartenders, cooks) for the calendar year. Do not include
tips received by employees in December of the prior tax year but not reported
until January. Include tips received by employees in December of the tax year
being reported, but not reported until January of the subsequent year. For
example: Do not include tips received by employees in December 2011, but not
reported until January 2012. Include tips received by employees in December
2012, but not reported until January 2013. The amount must be entered in U.S.
dollars and cents. The right-most two positions represent cents. Right-justify
information and fill unused positions with zeros. If this field is not utilized,
enter zeros. Numeric characters only. Donot enter decimal points, dollar signs,
or commas.
296–307Direct Tips Reported 12
Required.Enter the total amount of tips reported by directly tipped employees
(e.g., servers, bartenders) for the calendar year. Do not include tips received by
employees in December of the prior tax year but not reported until January.
Include tips received by employees in December of the tax year being reported,
but not reported until January of the subsequent year. For example: Do not
include tips received by employees inDecember 2011, but not reported until
January 2012. Include tips received by employees in December 2012, but not
reported until January 2013. The amount must be entered in U.S. dollars and
cents. The right-most two positions represent cents. Right-justify and zero fill.
If no entry, zero fill. Numeric characters only. Do not enter decimal points,
dollar signs, or commas.
308–319Total Tips Reported 12
Required.Enter the total amount of tips reported by all employees (both
indirectly tipped and directly tipped) for the calendar year. Do not include tips
received in December of the prior tax year but not reported until January. Include
tips received in December of the tax year being reported, but not reported until
January of the subsequent year. For example: Do not include tips received by
employees in December 2011, but not reported until January 2012. Include
tips received by employees in December 2012, but not reported until January
2013. The amount must be entered in U.S. dollars and cents. The right-most two
positions represent cents. Right-justify information and fill unused positions
with zeros. If this field is not utilized, enter zeros. Numeric characters only. Do
not enter decimal points, dollar signs, or commas.
October 9, 20124642012–41 I.R.B.

FORM 8027 RECORD FORMAT
Field
PositionField TitleLength Description and Remarks
320–331Gross Receipts12
Required.Enter the total gross receipts from the provision of food and/or
beverages for this establishment for the calendar year. Do not include receipts
for carryout sales or sales with an added service charge of 10 percent or more.
Do not include in gross receipts chargedtips (field positions 248–259) shown
on charge receipts unless you have reduced the cash sales amount because you
have paid cash to tipped employees for tips they earned that were charged. Do
not include state or local taxes in gross receipts. If you do not charge separately
for food or beverages along with other services (such as a package deal for food
and lodging), make a good faith estimate of the gross receipts attributable to the
food or beverages. This estimate must reflect the cost of providing the food or
beverages plus a reasonable profit factor.
Include the retail value of complimentary food or beverages served to customers
if tipping for them is customary and they are provided in connection with an
activity engaged for profit whose receipts would not be included as gross receipts
from the provision of food or beverages (e.g., complimentary drinks served
to customers at a gambling casino).
Amount must be entered in U.S. dollarsand cents. The right-most two positions
represent cents. Right-justify and zero fill. If no entry, zero fill. Numeric
characters only. Do not enter decimal points, dollar signs, or commas.
332–343Tip Percentage Rate
Times Gross Receipts
12
Required.Enter the amount determined bymultiplying Gross Receipts for
the year (field positions 320–331) by the Tip Percentage Rate (field positions
344–347). For example:
Value of Gross Receipts
=000045678900
Tip Percentage Rate=0800
multiply
$456789.00 by .0800
=$36543.12
enter
000003654312
If tips are allocated using other than the calendar year, enter zeros; this may
occur if you allocated tips based on thetime period for which wages were paid
or allocated on a quarterly basis. Amount must be entered in U.S. dollars and
cents. The right-most two positions represent cents. Right-justify and zero fill.
If no entry, zero fill. Numeric characters only. Do not enter decimal points,
dollar signs, or commas.
344–347Tip Percentage Rate 4
Required.Enter 8 percent (0800) unless a lower rate has been granted by the
IRS. The determination letter must follow the electronic submission. See Part
A, Sec. 4.06 for details. Numeric characters only. Do not enter decimal points,
dollar signs, or commas.
348–359
Allocated Tips12
Required.If the Tip Percentage Rate times Gross Receipts (field positions
332–343) is greater than Total Tips Reported (field positions 308–319), the
difference becomes Allocated Tips. Otherwise, enter all zeros. If tips are
allocated using other than the calendar year, enter the amount of allocated tips
from your records. Amount must be entered in U.S. dollars and cents. The
right-most two positions represent cents. Right-justify and zero fill. If no entry,
zero fill. Numeric characters only. Do not enter decimal points, dollar signs,
or commas.
2012–41 I.R.B.465October 9, 2012

FORM 8027 RECORD FORMAT
Field
PositionField TitleLength Description and Remarks
360Allocation Method1Required. Use the followinglist to enter the allocation method used if Allocated
Tips (field positions 348–359) are greater than zero:
Indicator
Usage
0allocated tips a
re equal to zero
1allocation basedon hours worked
2allocation based on gross receipts
3allocation bas
ed on a good-faith
agreement
The good-faith
agreement must follow the electronic submission. See Part A,
Sec. 4.05 for d
etails.
361–364Number of Dire
ctly
Tipped Employ
ees
4
Required.Enter the total number (must be greater than zero) of directly tipped
employees employed by the establishment at any time during the calendar
year. Right-justify information and fillunused positions with zeros. Numeric
characters only.
365–369
Transmitter Control
Code (TCC)
5Required.Enter the five-digit Transmitter Control Code assigned by the IRS.
370Corrected 8027
Indicator
1
Required.Enter blank for an original return.Enter “G” for a corrected return. A
corrected return must be a complete newreturn replacing the original return.
371Final Return Indicator 1
Required.En
ter the appropriate code:
Code
Usage
FThis is the last time the employer will
file Form 8027
NThis is not the last time the employer
will file Form 8027
Do not enter a blank.
372Charge Card Indicator 1
Required.Enter the appropriate code:
Code
Usage
1Your establishment accepts credit cards,
debit cards or other charges.
2Your establishment does not accept
credit cards, debit cards or other
charges.
373–374Blank2Enter blanks.
375–378
Tax Year4
Required.Enter the four-digit tax year.
379Prior Year Indicator 1
Required.Enter a “P” only if reporting prior year data; otherwise, enter a blank.
380Test File Indicator1
Required for test files only.Enter “T” if this is a test file; otherwise, enter
a blank.
381–410Reserved30Enter blanks.
411–418Record Sequence
Number
8
Required.Enter the number of the record as it appears within the file. The first
record in the file will be “1” and each record, thereafter, must be incremental
by one in ascending numerical sequence,i.e. 2, 3, 4, etc. Right-justify numbers
with leading zeros in the field. For example, the first record in the file would
appear as “00000001”, followed by “00000002”, “00000003” and so on until the
final record of the file.
419–420Blank2Enter blanks or CR/LF characters.
October 9, 20124662012–41 I.R.B.

Sec. 2. Form 8027— Record Layout
Establishment
Type
Establishment
Serial Numbers
Establishment
Name
Establishment
Street Address
Establishment City
12–67–4647–8687–111
Establishment
State
Establishment
ZIP Code
Employer
Identification
Number
Employer NameEmployer Street
Address
112–113114–122123–131132–171172–211
Employer CityEmployer StateEmployer ZIP
Code
Charged TipsCharged Receipts
212–236237–238239–247
248–259
260–271
Service Charge
Less Than 10
Percent
Indirect Tips
Reported
Direct Tips
Reported
Total Tips
Reported
Gross Receipts
272–283
284–295
296–307308–319320–331
Tip Percentage
Rate Times Gross
Receipts
Tip Percentage
Rate
Allocated TipsAllocation MethodNumber of
Directly Tipped
Employees
332–343344–347
348–359
360361–364
Transmitter
Control Code
(TCC)
Corrected 8027
Indicator
Final Return
Indicator
Charge Card
Indicator
Blank
365–369
370371372373–374
Tax YearPrior Year
Indicator
Test File IndicatorReservedRecord Sequence
Number
375–378
379380381–410411–418
Blank or
CR/LF
419–420
Part D. Extensions of Time
Sec. 1. General — Extensions
.01An extension of time to file may be requested for Forms 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, 8027, W-2G, and W-2
series.
Note:The IRS encourages the payer/transmitter community to utilize the online fill-in form in lieu of the paper Form 8809. Requests
for more than one payer must be filed through the Filing Information Returns Electronically (FIRE) system using the Fill-in option.
A TCC is not required.
2012–41 I.R.B.467October 9, 2012

.02The Fill-in Form 8809 may be completed online via the FIRE System. (See Part B, Sec. 7, for instructions on connecting to the
FIRE System.) At the Main Menu, click “Extension of Time Request” and then click “Fill-in Extension Form”. This option is only
used to request an automatic 30-day extension. Extension requests completed online via the FIRE System receive an instant response
if completed properly and timely. If you are requesting an additional extension, you must submit a paper Form 8809. Requests for an
additional extension of time to file information returns are not automatically granted. Requests for additional time are granted only in
cases of extreme hardship or catastrophic event. The IRS will only send a letter of explanation approving or denying your additional
extension request. (Refer to .11 of this Section.)
.03A paper Form 8809, Application for Extension of Time to File Information Returns, may be submitted to the IRS at the address
listed below. This form may be used to request an extension of time to file information returns submitted on paper. A signature is not re-
quired when requesting an automatic 30-day extension. Form 8809 may be obtained by calling 1–800–TAX–Form (1–800–829–3676).
The form is also available at I
RS.gov. These requests must be sent using the following address:
Internal Revenue Service
Information Returns Branch
Attn: Extension of Time Coordinator
240 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
Note:Due to the large volume of mail received by the IRS and the time factor involved in processing Extension of Time (EOT)
requests, it is imperative that the attention line be present on all envelopes or packages containing Form 8809.
.04Requests for extensions of time to file postmarked by the United States Postal Service on or before the due date of the returns,
and delivered by United States mail to the IRS after the due date, are treated as timely under the “timely mailing as timely filing” rule.
A similar rule applies to designated private delivery services (PDSs). Notice 97–26, 1997–17 I.R.B. 6, provides rules for determining
the date that is treated as the postmark date. For items delivered by anon-designated Private Delivery Service (PDS), the actual date of
receipt by the IRS will be used as the filing date. For items delivered by a designated PDS, but through a type of service not designated
in Notice 2004–83, 2004–52 I.R.B. 1030 the actual date of receipt by the IRS will be used as the filing date. The timely mailing rule
also applies to furnishing statements to recipients and participants.
.05To be considered, an extension request must be postmarked, transmitted or completed online by the due date of the returns;
otherwise, the request will be denied. (See Part A, Sec. 4, for duedates). If requesting an extension of time to file several types
of forms, use one Form 8809; however, Form 8809 or an extension file must be submitted no later than the earliest due date. For
example, if requesting an extension of time to file both Forms 1099-INT and 5498, submit Form 8809 on or before February 28.
.06As soon as it is apparent that a 30-day extension of time to file is needed, an extension request should be submitted. The IRS
does not begin processing extension requests until January. It may take up to 30 days for the IRS to respond to a paper extension
request. Extensions completed online viathe FIRE System receive instant results.
.07Under certain circumstances, a request for an extension of time may be denied. When a denial letter is received, any additional
or necessary information must be resubmitted within 20 calendar days.
.08Requesting an extension of time for multiple payers should be done by completing the online fill-in form via the FIRE System.
A separate Form 8809 must be completed online for each payer.
.09Transmitters requesting an extension of time via an electronic file (see Sec. 3 for the record layout) will receive the file status
results online.
.10If an extension request is approved, the approval notification should be kept on file. When filing Form 8027 on paper only,
attach a copy of the approval letter. If an approval letter has not been received, attach a copy of the timely filed Form 8809.
.11If an additional extension of time is needed, a Form 8809 and/orextension file must be sent by the initial extended due date.
Check line 3 on the form to indicate that an additional extension isbeing requested. Failure to properly complete and sign Form 8809
may cause delays in processing the request or result in a denial.Carefully read and follow the instructions on the back of Form 8809.
A second 30-day extension will be approved only in cases of extreme hardship or catastrophic event. Be sure to include the reason
an additional extension is needed. If requesting a second 30-day extension of time, submit the information return files as soon as
prepared. Do not wait for the IRS’s response to your second extension request.
Sec. 2. Specifications for Filing Extensions of Time Electronically
.01The specifications in Sec. 3 include the required 200-byte record layout for extensions of time to file requests submitted elec-
tronically. Also included are the instructions for the information that is to be entered in the record. Filers are advised to read this
section in its entirety to ensure proper filing.
.02If a filer does not have an IRS assigned Transmitter Control Code(TCC), Form 4419, Application for Filing Information Returns
Electronically (FIRE)mustbe submitted to obtain a TCC. This number must be used to submit an extension request electronically.
(See Part A, Sec. 6.)
.03If you are requesting an additional extension, you must fax a signed Form 8809 the same day as the transmission. Be sure to
include the reason an additional extension is needed.
October 9, 20124682012–41 I.R.B.

.04Do not submit tax year2012extension requests filed electronically beforeJanuary 3, 2013.
.05File processing results will be sent via email if a valid email address was provided on the “Verify Your Filing Information”
screen. If you are using email filtering software, configure software to accept email from f
ire@irs.govand irs.e-helpmail@irs.gov.
Sec. 3. Record Layout — Extension of Time
.01Positions 6 through 188 of the following record should contain information about the payer for whom the extension of time to
file is being requested. Do not enter transmitter information in these fields. Only one TCC may be present in a file.
Record Layout for Extension of Time
Field
Position
Field Title
Length
Description and Remarks
1–5
Transmitter Control
Code
5Required.Enter the five-character alphanumeric Transmitter Control Code
(TCC) issued by the IRS. Only one TCC per file is acceptable.
6–14Payer TIN9
Required.Enter the valid nine-digit EIN/SSN assigned to the payer. Do not
enter blanks, hyphens or alpha characters. All zeros, ones, twos, etc., will have
the effect of an incorrect TIN. For foreignentities that are not required to have
a TIN, this field may be blank; however, the Foreign Entity Indicator, position
187,mustbe set to “X.”
15–54
Payer Name40
Required.Enter the name of the payer whose TIN appears in positions 6–14.
Left-justify information and fill unused positions with blanks.
55–94
Second Payer Name 40
Required.If additional space is needed, thisfieldmaybeusedtocontinuename
line information (e.g., c/o First National Bank); otherwise, enter blanks.
95–134
Payer Address40
Required.Enter the payer’s address. The street address should include the
number, street, apartment, or suite number (or PO Box if mail is not delivered to
a street address).
135–174
Payer City40
Required.Enter the payer’s city, town, or post office.
175–176
Payer State2
Required.Enter the payer’s valid U.S. Postal Service state abbreviation. (Refer
to Part A, Sec. 7)
177–185
Payer ZIP Code9
Required.Enter the payer’s zip code. If using a five-digit zip code, left-justify
information and fill unused positions with blanks.
186Document Indicator
(See Note)
1
Required.From the table below, enter the appropriate document code that
indicates the form for which an extension of time is being requested
Code
Document
1W-2
5
8027
NOTE:Do not enter any other values in this field. Submit a separaterecord for each document. For example, when requesting an
extension for Form 8027 and Form W-2 for the same payer/employer, submit one record with “5” coded in this field and another
record with “1” coded in this field.
187Foreign Entity
Indicator
1Enter “X” if the payer is a foreign entity.
188Recipient Request
Indicator
1Enter “X” if the extension request is to furnish statements to the recipients of
the information returns.
Note: A separate file is required for this type of extension request. A file must either contain all blanks or all Xs in this field.
189–198Blank10Enter blanks.
199–200Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
2012–41 I.R.B.469October 9, 2012

Extension of Time Record Layout
Transmitter
Control
Code
Payer
TIN
Payer
Name
Second
Payer
Name
Payer
Address
Payer
City
1–5
6–14
15–5455–9495–134135–174
Payer
State
Payer Zip
Code
Document
Indicator
Foreign Entity
Indicator
Recipient
Request
Indicator
Blank
175–176177–185
186187188189–198
Blank or
CR/LF
199–200
Sec. 4. Extension of Time for Recipient Copies of Information Returns
.01Request an exte
nsion of time to furnish the statements to recipients of Forms W-2 by submitting a letter to the IRS at the address
listed in Part D, Se
c. 1.03. The letter should contain the following information:
(a) Payer name
(b) TIN
(c) Address
(d) Type of return
(e) Specify that the extension request is to provide statements to recipients
(f) Reason for the delay
(g) Signature of payer or duly authorized person
.02Requests for an extension of time to furnish statements to recipients of Forms W-2 series are not automatically approved. If
approved, an extension will allow amaximumof 30 additional days from the due date. The request must be postmarked no later than
the date the statements are due to the recipients.
.03Generally, only the payer may sign the letter requesting the extension for recipient copies. If a transmitter has a contractual
agreement with a payer to submit extension requests on the payer’s behalf, the transmitter should state so in the letter requesting the
extension.
.04Requests for extensions of time to file recipient copies for more than 10 payers are required to be submitted electronically. (See
Sec. 3, for the record layout). When requesting extensions of time for recipient copies, a signed letter must be faxed to IRB by the
transmitter the same day as the transmission. Be sure to include the reason an extension for the recipient copies is needed.
.05Transmitters submitting an extension of time for recipient copies via an electronic file should not submit a list of payer names
and TINs with the letter since this information is included in the electronic file.
.06The online fill-in Form 8809 extension option cannot be used to request an extension to furnish statements to recipients.
26 CFR 601.204: Changes in accounting periods and
in methods of accounting.
(Also Part I, §§ 179D, 1.179D, 381, 1.381(c)(4)–1,
1.381(c)(5)–1, 446, 1.446–1.)
Rev. Proc. 2012–39
SECTION 1. PURPOSE
This revenue procedure clarifies and
modifies (i) Rev. Proc. 2011–14, 2011–4
I.R.B. 330; and (ii) Rev. Proc. 97–27,
1997–1 C.B. 680, as amplified and mod-
ified by Rev. Proc. 2002–19, 2002–1
C.B. 696, as amplified and clarified by
Rev. Proc. 2002–54, 2002–2 C.B. 432, as
modified by Rev. Proc. 2007–67, 2007–2
C.B. 1072, as clarified and modified by
Rev. Proc. 2009–39, 2009–38 I.R.B.
371, and as clarified and modified by
Rev. Proc. 2011–14. It modifies certain
rules applicable to a taxpayer that engages
in a corporate reorganization or tax-free
liquidation described in § 381(a) of the
Internal Revenue Code that occurs on or
after August 31, 2011. It also modifies
section3.09oftheAPPENDIXofRev.
Proc. 2011–14 regarding a change to the
method of accounting described in Rev.
Proc. 2011–43, 2011–37 I.R.B. 326, for
taxpayers in the business of transporting,
delivering, or selling electricity. Finally,
it clarifies and modifies section 8.04 of
the APPENDIX of Rev. Proc. 2011–14
regarding a change in method of account-
ing for amounts paid or incurred for the
October 9, 20124702012–41 I.R.B.

installation of energy efficient commercial
building property under § 179D.
SECTION 2. BACKGROUND
.01 Rev. Proc. 97–27 provides the
general procedures for a taxpayer to ob-
tain non-automatic consent from the Com-
missioner of Internal Revenue (Commis-
sioner) to change a method of accounting
under § 446(e).
.02 Rev. Proc. 2011–14, issued in Jan-
uary 2011, provides the procedures for a
taxpayer to obtain automatic consent from
the Commissioner for a change in method
of accounting that is described in the AP-
PENDIX of Rev. Proc. 2011–14. A tax-
payer complying with all the applicable
provisions of Rev. Proc. 2011–14 obtains
the consent of the Commissioner to change
its method of accounting under § 446(e).
.03 Section 4.02 of Rev. Proc. 2011–14
describes seven scope limitations that pre-
clude a taxpayer from obtaining automatic
consent to change a method of account-
ing under Rev. Proc. 2011–14. Except to
the extent the scope limitations are waived
for a particular change in the APPENDIX
of Rev. Proc. 2011–14, these scope lim-
itations apply even when the change in
method of accounting is described in the
APPENDIX of Rev. Proc. 2011–14. Two
of these scope limitations preclude a tax-
payer from using the automatic consent
procedures in Rev. Proc. 2011–14 to
change its method of accounting for a tax-
able year (year of change) in which (i) it
engages in a transaction to which § 381(a)
applies (§ 381(a) transaction), or (ii) it
ceases to engage in the trade or business
to which the change in method of account-
ing relates or terminates its existence.See
sections 4.02(4) and (5) of Rev. Proc.
2011–14. A taxpayer that is precluded
from using the automatic consent proce-
dures in Rev. Proc. 2011–14 to change its
method of accounting may request permis-
sion to change the method of accounting
using the provisions of Rev. Proc. 97–27
if the taxpayer is within the scope of Rev.
Proc. 97–27.Seesection 4.03 of Rev.
Proc. 2011–14.
.04 Section 6.03 of Rev. Proc. 2011–14
and section 6.01 of Rev. Proc. 97–27 pro-
vide the rules for when a taxpayer under
examination may use the automatic change
procedures in Rev. Proc. 2011–14 or the
non-automatic change procedures in Rev.
Proc. 97–27, respectively, to request con-
sent to change a method of accounting.
.05 On August 1, 2011, the Treasury
Department and the Internal Revenue
Service (Service) issued final regulations
under §§ 381(c)(4) and 381(c)(5) in T.D.
9534, 76 Fed. Reg. 45673 (2011). These
regulations provide guidance regarding
the method of accounting or combination
of methods of accounting an acquiring
corporation must use following a dis-
tribution or transfer to which § 381(a)
and § 381(c)(4) or § 381(c)(5) apply
and how to implement any associated
change in method of accounting. These
regulations permit any party to a § 381(a)
transaction to request permission from
the Commissioner under § 446(e) to
change a method of accounting for the
taxable year in which the transaction
occurs or is expectedto occur. However,
the regulations state that, for the taxable
year that includes the date of the § 381(a)
transaction, the Commissioner will not
grant permission to change a method of
accounting for any separate and distinct
trade or business of either party if the
acquiring corporation will not operate that
trade or business as a separate and distinct
trade or business after the date of the
§ 381(a) transaction, unless the requested
method is the method that the acquiring
corporation must use for the transferred
or distributed items of that trade or
business after the date of distribution
or transfer. See §§ 1.381(c)(4)–1(a)(5)
and 1.381(c)(5)–1(a)(5).Sec-
tions1.381(c)(4)–1(d)(2)and
1.381(c)(5)–1(d)(2) provide the proce-
dures for requesting permission under
§ 446(e) to change a method of accounting
for a year of change in which a § 381(a)
transaction occurs or is expected to occur.
Those procedures state, in part, that the
scope limitation relating to the final year
of a trade or business will not apply to
a taxpayer that changes its method of
accounting in the final year of a trade
or business that is terminated as the
result of a § 381(a) transaction. The
regulations issued under §§ 1.381(c)(4)
and 1.381(c)(5) in T.D. 9534 apply to
corporate reorganizations or tax-free
liquidations described in § 381(a) that
occur on or after August 31, 2011.
.06 The Service has decided to waive
the scope limitation in Rev. Proc. 2011–14
that precludes a taxpayer from making an
automatic accounting method change for a
taxable year in which the taxpayer engages
in a § 381(a) transaction. This revenue
procedure modifies section 4.02(4) of Rev.
Proc. 2011–14 to permit taxpayers to make
otherwise qualifying automatic accounting
method changes in the year of the § 381(a)
transaction. This revenue procedure also
modifies both Rev. Proc. 2011–14 and
Rev. Proc. 97–27 to waive the scope limi-
tation that precludes taxpayers who are un-
der examination from seeking consent to
change to an accounting method other than
the principal or carryover method.
.07 Section 3.09 of the APPENDIX of
Rev. Proc. 2011–14 allows taxpayers
in the business of transporting, deliver-
ing, or selling electricity to change their
method of accounting to the safe harbor
method of accounting described in Rev.
Proc. 2011–43. The scope limitations
of section 4.02 of Rev. Proc. 2011–14
do not apply to an electric transmission
or distribution company that changes to
the method of accounting provided in Rev.
Proc. 2011–43 for its first or second tax-
able year ending after December 30, 2010.
.08 The Service is aware that many
electric transmission or distribution com-
panies have not had time to change their
method of accounting to the safe harbor
method of accounting described in Rev.
Proc. 2011–43. Accordingly, this revenue
procedure modifies section 3.09 of the AP-
PENDIX of Rev. Proc. 2011–14 to extend
the waiver of scope limitations to the third
taxable year ending after December 30,
2010.
.09 Section 179D(a) allows a deduction
to a taxpayer for part or all of the cost of en-
ergy efficient commercial building prop-
erty that the taxpayer places in service in
a taxable year. The amount of the deduc-
tion may not exceed the excess (if any)
of (i) the product of $1.80 and the square
footage of the building, over (ii) the ag-
gregate amount of the § 179D deductions
allowed with respect to the building for
all prior taxable years. If the energy effi-
cient commercial building property is in-
stalledonorinpropertyownedbyaFed-
eral, State, or local government or polit-
ical subdivision thereof, § 179D permits
the owner to allocate this deduction to the
designer of the commercial building prop-
erty. In Notice 2008–40, the Service pro-
vided procedures for owners of govern-
2012–41 I.R.B.471October 9, 2012

ment buildings to allocate the § 179D de-
duction to the designer.
.10 Section 8.04 of the APPENDIX of
Rev. Proc. 2011–14 allows taxpayers
to change their method of accounting to
deduct under § 179D amounts paid or in-
curred for the installation of energy effi-
cient commercial building property, as de-
fined in § 179D(c)(1). Section 8.04(4) of
the APPENDIX requires a taxpayer mak-
ing this change to attach a certification to
demonstrate the energy efficient commer-
cial building property has achieved the re-
duction in energy and power costs neces-
sary to qualify for the § 179D deduction.
The additional filing requirement also con-
tains a provision that, in the case of a gov-
ernment-owned building for which a de-
signer has been allocated a deduction un-
der § 179D, the designer becomes the tax-
payer for purposes of the deduction and
must attach a certification and an alloca-
tion from the owner of the building to the
designer.
.11 Some taxpayers have interpreted
section 8.04(4) of the APPENDIX of Rev.
Proc. 2011–14 to mean that designers may
fileaForm3115forachangeinmethod
of accounting and make a § 481(a) adjust-
ment for a § 179D deduction allocated to
the designer. However, a designer who
takes a § 179D deduction is making a
permanent change in its income because,
unlike the owner of the property, the de-
signer is not otherwise entitled to deduct
the amount of the § 179D deduction by
another method, for example, through
depreciation. Taxpayers may not use a
change in method of accounting to make
a permanent change in income. Accord-
ingly, this revenue procedure clarifies and
modifies section 8.04 of the APPENDIX
of Rev. Proc. 2011–14 to make clear
that designers may not use the automatic
change in method of accounting provi-
sions of Rev. Proc. 2011–14 for § 179D
deductions that are allocated to them. De-
signers allocated a § 179D deduction for
commercial building property placed in
service in a prior taxable year may file
an amended return for the taxable year in
which the property was placed in service
(if that taxable year is open) to claim such
§ 179D deduction. This revenue proce-
dure also modifies the filing requirements
in section 8.04 of the APPENDIX for the
duplicate copy of the Form 3115.
SECTION 3. CHANGE IN METHOD
OF ACCOUNTING
.01Modification of Rev.Proc.
2011–14.
(1)Modification of sections 4.02(1), (4)
and (5). Sections 4.02(1), 4.02(4) and
4.02(5) of Rev. Proc. 2011–14 are mod-
ified to read as follows:
(1)Under examination.If,onthedate
the taxpayer (or if section 6.02(3)(b) of
this revenue procedure applies, the desig-
nated shareholder) would otherwise file a
copy of the application with the national
office, or if applicable, with the Ogden of-
fice, (seesection 6.02(3) of this revenue
procedure), the taxpayer is under exam-
ination (seesection 3.08 of this revenue
procedure), except as provided in sections
6.03(2) (90-day window), 6.03(3) (120-
day window), 6.03(4) (consent of direc-
tor), 6.03(5) (changes lacking audit protec-
tion), 6.03(6) (issue pending or change to
use other than the principal or carryover
method), 6.04 (issue under consideration
by an appeals office), and 6.05 (issue un-
der consideration by a federal court) of this
revenue procedure.
(4)Section 381(a) transaction.Ex-
cept as otherwise provided in this section
4.02(4), if the taxpayer engages in a trans-
action to which § 381(a) applies (§ 381(a)
transaction) within the proposed taxable
year of change (determined without re-
gard to any potential closing of the year
under § 381(b)(1)). All references to the
regulations in sections 4.02(4)(a)(i) and
4.02(4)(a)(ii) refer to the regulations under
§§ 381(c)(4) and 381(c)(5) that were in
effect prior to August 31, 2011, the effec-
tive date of T.D. 9534. All references to
the regulations in section 4.02(4)(b) refer
to the regulations under §§ 381(c)(4) and
381(c)(5) that are in effect as of August 31,
2011.
(a)Section 381(a) transaction occur-
ring before August 31, 2011.
(i)No differences in methods.An
acquiring corporationina§381(a)trans-
action that occurred before August 31,
2011, may change its method of account-
ing pursuant to this revenue procedure
if the acquiring corporation would be
permitted to continue to use its prior
method of accounting under the rules of
§§ 1.381(c)(4)–1(b)(1) and (3)(i) (tak-
ing into account the third sentence of
§ 1.381(c)(4)–1(b)(4) relating to no prior
methodestablishedbyapartytothe
transaction) or §§ 1.381(c)(5)–1(b)(1)
and (3)(i) (taking into account the sec-
ond sentence of § 1.381(c)(5)–1(b)(4)(i)
relating to no prior inventory method es-
tablishedbyapartytothetransaction)
because all of the parties to the transaction
used the same method of accounting on
the date of distribution or transfer. The
change pursuant to this revenue procedure
is ignored for purposes of determining
whether on the date of distribution or
transfer the parties to the transaction used
the same methods of accounting under
§ 1.381(c)(4)–1(b) or § 1.381(c)(5)–1(b),
and thus §§ 1.381(c)(4)–1(b)(3)(ii) and (c)
and §§ 1.381(c)(5)–1(b)(3)(ii) and (c) will
not apply.
(ii)Separate trades or businesses.An
acquiring corporation in a § 381(a) trans-
action that occurred before August 31,
2011, may change pursuant to this revenue
procedure a method of accounting used
by a trade or business operated by such
corporation if the trade or business
would be permitted to continue to use
its prior method of accounting under
the rules of § 1.381(c)(4)–1(b)(2) or
§ 1.381(c)(5)–1(b)(2).The change
pursuant to this revenue procedure is
ignored for purposes of determining
whether on the date of distribution or
transfer the parties to the transaction used
the same methods of accounting under
§ 1.381(c)(4)–1(b) or § 1.381(c)(5)–1(b),
and, thus §§ 1.381(c)(4)–1(b)(3) and (c)
and §§ 1.381(c)(5)–1(b)(3) and (c) will
not apply.
(b)Section 381(a) transactions occur-
ring on or after August 31, 2011.Any
party to a § 381(a) transaction that oc-
curs on or after August 31, 2011, may
change its method of accounting for the
taxable year in which the § 381(a) trans-
action occurs pursuant to this revenue
procedure if the taxpayer is requesting
a change in method of accounting de-
scribed in § 1.381(c)(4)–1(a)(4) or (5) or
§ 1.381(c)(5)–1(a)(4) or (5).
(5)Final year of trade or business.Ex-
cept as otherwise provided in this section
4.02(5), if, in the proposed year of change,
a taxpayer requesting a change in method
of accounting ceases to engage in the trade
or business to which the change in method
of accounting relates, as described in sec-
tion 5.04(3)(c) of this revenue procedure,
or terminates its existence. For purposes
October 9, 20124722012–41 I.R.B.

of this section 4.02(5), a taxpayer is treated
as ceasing to engage in the trade or busi-
ness or terminating its existence without
regard to whether the taxpayer’s change in
method of accounting request would result
in either a positive or negative § 481(a) ad-
justment or be made on a cut-off basis.
This section 4.02(5) does not apply to
a taxpayer that changes its method of ac-
counting in the final year of its trade or
business that is terminated as the result of
a transaction to which § 381(a) applies that
occurs on or after August 31, 2011.
(2)Modification of sections 6.03(1) and
6.03(6). Sections 6.03(1) and 6.03(6) of
Rev. Proc. 2011–14 are modified to read
as follows:
(1)In general. Except as otherwise
provided in the APPENDIX of this rev-
enue procedure (see, for example, section
2.01 of the APPENDIX of this revenue
procedure), a taxpayer that is under ex-
amination (as provided in section 3.08 of
this revenue procedure) may file an ap-
plication to change a method of account-
ing under this revenue procedure only if
the taxpayer is within the provisions of
section 6.03(2) (90-day window), 6.03(3)
(120-day window), 6.03(4) (consent of di-
rector), 6.03(5) (changes lacking audit pro-
tection), 6.03(6) (issue pending or change
to use other than the principal or carry-
over method), 6.04 (issue under consider-
ation by an appeals office), or 6.05 (issue
under consideration by a federal court) of
this revenue procedure. A taxpayer (or if
section 6.02(3)(b) of this revenue proce-
dure applies, the designated shareholder)
that files an application beyond the time
periods provided in the 90-day window
and 120-day window is not eligible for
the automatic extension of time and will
not be granted an extension of time under
§ 301.9100, except in unusual and com-
pelling circumstances.
(6)Issue pending or change to use other
than the principal or carryover method.
(a)Issue pending. A taxpayer that is
under examination with respect to any in-
come tax issue may request to change a
method of accounting if the method of ac-
counting to be changed is an issue pend-
ing for any taxable year under examina-
tion. However, the audit protection pro-
visions of section 7 of this revenue pro-
cedure do not apply to a taxpayer chang-
ing its method of accounting pursuant to
this section 6.03(6)(a). For purposes of
this section 6.03(6)(a), an issue is pend-
ing for a taxable year under examination
if the Service has given the taxpayer (or
if section 6.02(3)(b) of this revenue pro-
cedure applies, any controlling domestic
shareholder of a CFC or 10/50 corpora-
tion) written notification indicating an ad-
justment is being made or will be proposed
with respect to the taxpayer’s method of
accounting. This notification by the Ser-
vice may result from an inquiry by the
Joint Committee on Taxation. This noti-
fication normally will occur after the Ser-
vice or the Joint Committee on Taxation
has gathered information sufficient to de-
termine that an adjustment is appropriate
and justified, although the exact amount of
the adjustment may not yet be determined.
See section 6.02(3)(c) of this revenue pro-
cedure for more information regarding the
requirement to file a copy of the applica-
tion with the examining agent.
(b)Change to use other than the prin-
cipal or carryover method.Anypartyto
a transaction to which § 381(a) applies
that is under examination with respect
to any income tax issue may request to
change to a method of accounting de-
scribed in § 1.381(c)(4)–1(a)(4) or (5) or
§ 1.381(c)(5)–1(a)(4) or (5) (as in effect as
of August 31, 2011) and the APPENDIX
of this revenue procedure for the taxable
year (year of change) in which the § 381(a)
transaction occurs or is expected to occur.
However, if, on the date the party (or if
section 6.02(3)(b) of this revenue proce-
dure applies, the designated shareholder)
files a copy of the application, the method
of accounting to be changed is an issue
under consideration (seesection 3.09(1) of
this revenue procedure) or an issue the ex-
amining agent(s) has placed in suspense,
the audit protection provisions of section
7 of this revenue procedure do not apply
to the party’s change in method of ac-
counting requested pursuant to this section
6.03(6)(b). See section 6.02(3)(c) of this
revenue procedure for more information
regarding the requirement to file a copy of
the application with the examining agent.
(3)Changetosection3.09oftheAP-
PENDIX, Method of Accounting under
Rev. Proc. 2011–43 for taxpayers in the
business of transporting, delivering, or
selling electricity. Section 3.09(2) of the
APPENDIX of Rev. Proc. 2011–14 is
modified to read as follows:
(2)Waiver of scope limitations.The
scope limitations in section 4.02 of this
revenue procedure do not apply to an elec-
tric transmission ordistribution company
that changes to themethod of accounting
provided in Rev. Proc. 2011–43 for its
first, second, or third taxable year ending
after December 30, 2010.
(4)Change to section 8.04 of the AP-
PENDIX, Elective expensing provisions
(§ 179D). Section 8.04 of the APPENDIX
of Rev. Proc. 2011–14 is clarified and
modified to read as follows:
.04Deduction for Energy Efficient
Commercial Buildings (§ 179D).
(1)Description of change. This change
applies to taxpayers that want to change
their method of accounting to deduct un-
der § 179D amounts paid or incurred for
the installation of energy efficient com-
mercial building property as defined in
§ 179D(c)(1). The deduction for energy
efficient commercial building property is
subject to the limits of § 179D(b) and must
be claimed in the taxable year in which the
property is placed in service. The basis of
the energy efficient commercial building
property is reduced by the amount of the
§ 179D deduction taken and the remain-
ing basis of the energy efficient commer-
cial building property is depreciated over
its recovery period.
(2)Applicability. This change applies
to taxpayers that place in service property
for which a deduction is allowed under
§179D(a).
(3)Inapplicability. This change does
not apply to a designer to whom the owner
of a government building allocates the
§ 179D deduction.
(4)Manner of making change.Atax-
payer making this change must attach to its
Form 3115 a statement with a detailed de-
scription of the tax treatment of the prop-
erty under the taxpayer’s present and pro-
posed methods of accounting.
(5)Certification requirement.Inaddi-
tion to the statement required by section
8.04(4) of the APPENDIX of this rev-
enue procedure (Rev. Proc. 2011–14), a
taxpayer making this change must attach
a certification as required by section 4
of Notice 2006–52, 2006–1 C.B. 1175,
or section 5 of Notice 2008–40, 2008–1
C.B. 725, to demonstrate the energy ef-
ficient commercial building property has
achievedthereductioninenergyand
power costs or in lighting power density
2012–41 I.R.B.473October 9, 2012

necessary to qualify for the § 179D deduc-
tion.
(6)Ogden copy of Form 3115 required
in lieu of national office copy. A taxpayer
changing its method of accounting under
section 8.04 of this APPENDIX must file
a signed copy of its completed Form 3115
with the IRS in Ogden, UT (Ogden copy),
in lieu of filing the national office copy,
no earlier than the first day of the year
of change and no later than the date the
taxpayer files the original Form 3115 with
its federal income tax return for the year
of change.Seesection 6.02(3)(a)(ii)(B)
(providing the general rules) and section
6.02(7)(b) (providing the mailing address)
of this revenue procedure.
(7)No ruling on qualification. The con-
sent granted under this revenue procedure
for this change is not a determination by
the Commissioner that the taxpayer qual-
ifies for a deduction under section 179D.
The director will ascertain whether the tax-
payer qualifies for a deduction under sec-
tion 179D (including a review of the re-
quired certifications).
(8)Designated automatic accounting
method change number. The designated
automatic accounting method change
number for a change in method of account-
ing under section 8.04 of this APPENDIX
is “152.” See section 6.02(4) of this rev-
enue procedure.
(9)Contact information. For further
information regarding a change under this
section, contact Jennifer Bernardini at
202–622–3110 (not a toll-free call).
.02Modification of Rev. Proc. 97–27.
Sections 6.01(1) and 6.01(5) of Rev. Proc.
97–27 are modifiedto read as follows:
(1)In general. A taxpayer that is under
examination may not file a Form 3115 to
request a change in accounting method
under this revenue procedure, except as
provided in sections 6.01(2) (90-day win-
dow), 6.01(3) (120-day window), 6.01(4)
(director consent), and 6.01(5) (issue
pending or change to use other than the
principal or carryover method). A tax-
payer that files a Form 3115 beyond the
time periods provided in the 90-day win-
dow and 120-day window will not be
granted an extension of time to file under
§ 301.9100, except in unusual and com-
pelling circumstances.
(5)Issue pending or change to use other
than the principal or carryover method.
(a)Issue pending. A taxpayer that is
under examination with respect to any in-
come tax issue may request to change a
method of accounting if the method of ac-
counting to be changed is an issue pend-
ing for any taxable year under examina-
tion. However, the audit protection provi-
sions of section 9.01 of this revenue proce-
dure do not apply to a taxpayer changing
its method of accounting pursuant to this
section 6.01(5)(a). For purposes of this
section 6.01(5)(a), an issue is pending for a
taxable year under examination if the Ser-
vice has given the taxpayer (or if section
3.02 of Rev. Proc. 2009–39 applies, any
controlling domestic shareholder of a CFC
or 10/50 corporation) written notification
indicating an adjustment is being made or
will be proposed with respect to the tax-
payer’s method of accounting. This noti-
fication by the Service may result from an
inquiry by the Joint Committee on Taxa-
tion. This notification normally will occur
after the Service or the Joint Committee
on Taxation has gathered information suf-
ficient to determine that an adjustment is
appropriate and justified, although the ex-
act amount of the adjustment may not yet
be determined. The taxpayer requesting to
change a method of accounting under this
section 6.01(5)(a) must provide a copy of
theForm3115totheexaminingagent(s)
at the same time it files the original Form
3115 with the national office.
(b)Change to use other than the princi-
pal or carryover method.
Any party to a transaction to which
§ 381(a) applies that is under examination
with respect to any income tax issue may
request to change to a method of account-
ing described in § 1.381(c)(4)–1(a)(4) or
(5) or § 1.381(c)(5)–1(a)(4) or (5) (as in
effect as of August 31, 2011) for the tax-
able year (year of change) in which the
§ 381(a) transaction occurs or is expected
to occur. However, if, on the date the
party (or if section 3.02 of Rev. Proc.
2009–39 applies, the designated share-
holder) files the Form 3115, the method
of accounting to be changed is an issue
under consideration (seesection 3.08 of
this revenue procedure) or an issue the
examining agent(s) has placed in sus-
pense, the audit protection provisions of
section 9.01 of this revenue procedure do
not apply to the party’s request to change
its method of accounting pursuant to this
section 6.01(5)(b). The party requesting to
change a method ofaccounting under this
section 6.01(5)(b) must provide a copy of
theForm3115totheexaminingagent(s)
at the same time it files the original Form
3115 with the national office.
SECTION 4. LIMITATION OF
CHANGE IN METHOD OF
ACCOUNTING
This revenue procedure does not
modify, amend, or in any other way al-
ter, any change to the principal method
to which § 1.381(c)(4)–1(d)(1) or
1.381(c)(5)–1(d)(1) applies.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2011–14 is clarified and
modified. Rev. Proc. 97–27 is modified.
SECTION 6. EFFECTIVE DATE
This revenue procedure is effective for
Forms 3115 filed on or after September 4,
2012. Further, a taxpayer that, on or after
August 31, 2011, engaged in a transac-
tion to which § 381(a) applies within the
proposed year of change may choose to
apply sections 3.01(1), 3.01(2) and 3.02
of this revenue procedure (modifying sec-
tions 4.02(1), 4.02(4), 4.02(5), 6.03(1),
and 6.03(6) of Rev. Proc. 2011–14 and
sections 6.01(1) and 6.01(5) of Rev. Proc.
97–27) to a Form 3115 filed prior to,
and pending with the national office on,
September 4, 2012.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Cheryl Oseekey, of the Office
of Associate Chief Counsel (Income Tax
and Accounting). For further information
regarding this revenue procedure, contact
Ms. Oseekey at (202) 622–4970 (not a
toll-free call).
October 9, 20124742012–41 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2012–41 I.R.B.iOctober 9, 2012

Numerical Finding List
1
Bulletins 2012–27 through 2012–41
Announcements:
2012-26, 2012-27 I.R.B.8
2012-27, 2012-27 I.R.B.10
2012-28, 2012-27 I.R.B.10
2012-30, 2012-34 I.R.B.314
2012-31, 2012-34 I.R.B.315
2012-32, 2012-35 I.R.B.325
2012-33, 2012-35 I.R.B.325
2012-34, 2012-36 I.R.B.334
2012-35, 2012-38 I.R.B.356
Notices:
2012-39, 2012-31 I.R.B.95
2012-44, 2012-28 I.R.B.45
2012-45, 2012-29 I.R.B.59
2012-46, 2012-30 I.R.B.86
2012-47, 2012-31 I.R.B.98
2012-48, 2012-31 I.R.B.102
2012-49, 2012-31 I.R.B.119
2012-50, 2012-31 I.R.B.121
2012-51, 2012-33 I.R.B.150
2012-52, 2012-35 I.R.B.317
2012-53, 2012-35 I.R.B.317
2012-55, 2012-36 I.R.B.332
2012-56, 2012-39 I.R.B.370
2012-57, 2012-40 I.R.B.424
2012-58, 2012-41 I.R.B.436
2012-59, 2012-41 I.R.B.443
2012-60, 2012-41 I.R.B.445
Proposed Regulations:
REG-126770-06, 2012-38 I.R.B.347
REG-138367-06, 2012-40 I.R.B.426
REG-101812-07, 2012-34 I.R.B.311
REG-134042-07, 2012-27 I.R.B.5
REG-153627-08, 2012-29 I.R.B.60
REG-136491-09, 2012-35 I.R.B.321
REG-138489-09, 2012-38 I.R.B.355
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
Revenue Procedures— Continued:
2012-34, 2012-34 I.R.B.280
2012-35, 2012-37 I.R.B.341
2012-36, 2012-39 I.R.B.374
2012-37, 2012-41 I.R.B.449
2012-39, 2012-41 I.R.B.470
2012-40, 2012-40 I.R.B.424
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
2012-23, 2012-39 I.R.B.359
2012-24, 2012-36 I.R.B.329
2012-25, 2012-37 I.R.B.337
2012-26, 2012-39 I.R.B.358
2012-27, 2012-41 I.R.B.435
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
9598, 2012-38 I.R.B.343
9599, 2012-40 I.R.B.417
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.
October 9, 2012ii2012–41 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2012–27 through 2012–41
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
2008-105
Modified and superseded by
Ann. 2012-34, 2012-36 I.R.B.334
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:
94-22
Modified and superseded by
Rev. Proc. 2012-35, 2012-37 I.R.B.341
95-15
Superseded by
Rev. Proc. 2012-31, 2012-33 I.R.B.256
97-27
Modified by
Rev. Proc. 2012-39, 2012-41 I.R.B.470
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
2011-14
Clarified and modified by
Rev. Proc. 2012-39, 2012-41 I.R.B.470
2011-40
Superseded by
Rev. Proc. 2012-30, 2012-33 I.R.B.165
2011-50
Superseded by
Rev. Proc. 2012-36, 2012-39 I.R.B.374
Treasury Decisions:
9752
Corrected by
Ann. 2012-35, 2012-38 I.R.B.356
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin 2012–26, dated June 25, 2012.
2012–41 I.R.B.iiiOctober 9, 2012

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