Internal Revenue Bulletin 2013-7 (PDF rendition): IRS Revenue Procedures

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

Bulletin No. 201
3-7
February 11, 201
3
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
REG–148873–09, page 494.
Proposed regulations under section 6109 of the Code create
a new taxpayer identifying number known as an IRS truncated
taxpayer identification number, a TTIN. Notice 2011–38 obso-
leted. A public hearing is scheduled for March 12, 2013.
Rev. Proc. 2013–16, page 488.
This procedure provides guidance to mortgage loan holders,
loan servicers, and borrowers who are participating in the De-
partment of the Treasury’s (Treasury) and Department of Hous-
ing and Urban Development’s (HUD) Home Affordable Modifica-
tion Program (HAMP).
EMPLOYMENT TAX
Notice 2013–8, page 486.
This notice provides a special administrative procedure that al-
lows employers that treated transit benefits in excess of $125
per month per employee as wages in 2012 and have not yet
filed their fourth quarter Form 941 for 2012 to make the nec-
essary corrections on their fourth quarter Form 941.
ADMINISTRATIVE
REG–148873–09, page 494.
Proposed regulations under section 6109 of the Code create
a new taxpayer identifying number known as an IRS truncated
taxpayer identification number, a TTIN. Notice 2011–38 obso-
leted. A public hearing is scheduled for March 12, 2013.
Notice 2013–3, page 484.
This notice sets forth the maximum face amount of Qualified
Zone Academy Bonds (“Bond” or “Bonds”) that may be issued
for each State for the calendar years 2012 and 2013. For
this purpose, “State” includes the District of Columbia and the
possessions of the United States.
Rev. Proc. 2013–16, page 488.
This procedure provides guidance to mortgage loan holders,
loan servicers, and borrowers who are participating in the De-
partment of the Treasury’s (Treasury) and Department of Hous-
ing and Urban Development’s (HUD) Home Affordable Modifica-
tion Program (HAMP).
Actions Relating to Court Decisions is on the page following the Introduction.
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.
February 11, 20132013–7 I.R.B.

Actions Relati
ng to Decisions of the Tax Court
It is the policy
of the Internal Rev-
enue Service t
o announce at an early date
whether it wil
l follow the holdings in cer-
tain cases. An
Action on Decision is the
document maki
ng such an announcement.
An Action on De
cision will be issued at
the discreti
on of the Service only on unap-
pealed issue
s decided adverse to the gov-
ernment. Gen
erally, an Action on Decision
is issued whe
re its guidance would be help-
ful to Servi
ce personnel working with the
same or simi
lar issues. Unlike a Treasury
Regulation
or a Revenue Ruling, an Action
on Decision
is not an affirmative statement
of Service
position. It is not intended to
serve as pu
blic guidance and may not be
cited as pr
ecedent.
Actions on
Decisions shall be relied
upon withi
n the Service only as conclu-
sions appl
ying the law to the facts in the
particul
ar case at the time the Action on
Decision
was issued. Caution should be
exercise
d in extending the recommenda-
tion of th
e Action on Decision to similar
cases whe
re the facts are different. More-
over, th
e recommendation in the Action on
Decisio
n may be superseded by new legis-
lation,
regulations, rulings, cases, or Ac-
tions on
Decisions.
Prior to 1991, t
he Service published
acquiescence
or nonacquiescence only in
certain regul
ar Tax Court opinions. The
Service has ex
panded its acquiescence
program to inc
lude other civil tax cases
where guidanc
e is determined to be help-
ful. Accordi
ngly, the Service now may
acquiesce or
nonacquiesce in the holdings
of memorandu
m Tax Court opinions, as
well as those
of the United States District
Courts, Cla
ims Court, and Circuit Courts
of Appeal. R
egardless of the court decid-
ing the case
, the recommendation of any
ActiononDe
cision will be published in
the Intern
al Revenue Bulletin.
The recomme
ndation in every Action
on Decisio
n will be summarized as ac-
quiescenc
e, acquiescence in result only,
or nonacqu
iescence. Both “acquiescence”
and “acqui
escence in result only” mean
that the S
ervice accepts the holding of
the court
in a case and that the Service
will foll
ow it in disposing of cases with
thesamec
ontrolling facts. However, “ac-
quiescen
ce” indicates neither approval
nor disa
pproval of the reasons assigned
by the co
urt for its conclusions; whereas,
“acquie
scence in result only” indicates
disagre
ement or concern with some or all
of those reason
s. “Nonacquiescence” sig-
nifies that, a
lthough no further review was
sought, the Se
rvice does not agree with
the holding of
the court and, generally,
will not follo
w the decision in disposing
of cases invol
ving other taxpayers. In
reference to
an opinion of a circuit court
of appeals, a
“nonacquiescence” indicates
that the Serv
ice will not follow the hold-
ingonanatio
nwide basis. However, the
Service wil
l recognize the precedential
impact of th
e opinion on cases arising
within the v
enue of the deciding circuit.
The Actions
on Decisions published in
the weekly I
nternal Revenue Bulletin are
consolidat
ed semiannually and appear in
the first B
ulletin for July and the Cumula-
tive Bulle
tin for the first half of the year. A
semiannua
l consolidation also appears in
the first B
ulletin for the following January
andinthe
Cumulative Bulletin for the last
half of th
e year.
The Commi
ssioner does NOT ACQUI-
ESCE in th
e following decision:
Patel v.
Commissioner
1
138 T.C.
No. 23 (June 27, 2012)
Docket N
o. 11694–09
1
Nonacquiescence relating to whether a finding that the state of the law is uncertain at the time of the filing of a return, without a finding regarding whether the taxpayer made reasonable
inquiry as to the state of the law, is an appropriate factor in determining whether the taxpayer acted with reasonable cause and in good faith for purposes of avoiding an accuracy-related penalty.
2013–7 I.R.B.February 11, 2013

Part III. Administrative, Procedural, and Miscellaneous
Qualified Zone Academy Bond
Allocations for 2012 and 2013
Notice 2013–3
SECTION 1. PURPOSE
This notice sets forth the maximum
face amount of Qualified Zone Academy
Bonds (“QZABs”) that may be issued for
each State for the calendar years 2012 and
2013 under § 54E(c)(2) of the Internal
Revenue Code. Under § 54A(e)(3), the
term State includes the District of Co-
lumbia and any possession of the United
States.
SECTION 2. BACKGROUND
.01 INTRODUCTION
Section 313 of the Tax Extenders and
Alternative Minimum Tax Relief Act of
2008, Div. C of Pub. L. No. 110–343,
122 Stat. 3765 (2008) (“Act”) added new
§ 54E, which provides revised program
provisions for QZABs in lieu of the ex-
isting provisions under §1397E, effective
for obligations issued after October 3,
2008. The Act amended § 54A(d)(1) to
provide that the term qualified tax credit
bond (“QTCB”) means, in part, a qual-
ified zone academy bond which is part
of an issue that meets the requirements
of §§ 54A(d)(2), (3), (4), (5), and (6) re-
garding expenditures of bond proceeds,
information reporting, arbitrage, matu-
rity limitations, and prohibitions against
financial conflicts of interest. The Act
also amended § 54A(d)(2)(C) to provide
that, for purposes of § 54A(d)(2), the term
“qualified purpose” for a QZAB means
a purpose specifiedin§54E(a)(1),de-
scribed below.
The Act added § 54E(c)(1) to provide
a national zone academy bond limitation
authorization for QZABs of $400 million
for each of calendar years 2008 and 2009.
Section 1522 of Title I of Division B of the
American Recovery and Reinvestment Act
of 2009, Pub. L. No. 111–5, 123 Stat. 115
(2009) (“2009 Act”) amended § 54E(c)(1)
to provide an increased national zone
academy bond limitation authorization for
QZABs of $1.4 billion for each of cal-
endar years 2009 and 2010. Section 758
of the Tax Relief, Unemployment Insur-
ance Reauthorization, and Job Creation
Act of 2010, Public L. No. 111–312, 124
Stat. 3296 (2010) (“2010 Act”) amended
§ 54E(c)(1) to provide an authorization
for QZABs of $400 million for calendar
year 2011. Section 310 of the Ameri-
can Taxpayer Relief Act of 2012, Public
L. No. 112–240, 126 Stat. 2313 (2012)
(“2012 Act”) further amended § 54E(c)(1)
to provide authorization for QZABs of
$400 million for each of calendar years
2012 and 2013. The amendments made by
§ 310 of the 2012 Act apply to obligations
issued after December 31, 2011.
.02 QUALIFIED ZONE ACADEMY
BOND UNDER § 54E
Section 54E(d) defines “qualified zone
academy” as any public school (or aca-
demic program within a public school)
which is established by and operated un-
der the supervision of an eligible local
education agency to provide education
or training below thepostsecondary level
provided: (A) the public school or pro-
gram is designed in cooperation with
business to enhance the academic curricu-
lum, increase graduation and employment
rates and prepare students for college and
the workforce; (B) students will be sub-
ject to the same academic standards and
assessments as other students educated
by the eligible local education agency;
(C) the comprehensive education plan is
approved by the eligible local education
agency; and (D)(i)such public school
is located in an empowerment zone or
enterprise community including such des-
ignated after October 3, 2008; or (ii) there
is a reasonable expectation (as of the date
of bond issuance) that at least 35 percent
of the students will be eligible for free
or reduced cost lunches under the school
lunch program established under the Na-
tional School Lunch Act.
Section 54E(a) provides that a “quali-
fied zone academy bond” or QZAB means
anybondissuedaspartofanissueif:(1)
100 percent of the available project pro-
ceeds of such issue are to be used for a
qualified purpose with respect to a quali-
fied zone academy established by an eli-
gible local education agency; (2) the bond
is issued by a State or local government
within the jurisdiction of which such acad-
emy is located, and (3) the issuer: (A) des-
ignates such bond for purposes of this sec-
tion; (B) certifies that it has written assur-
ances that the private business contribution
requirement of § 54E(b) will be met; and,
(C) certifies that it has the written approval
of the eligible local education agency for
such bond issuance.
Section 54E(d)(3) provides that a qual-
ified purpose with respect to each acad-
emy means: (A) rehabilitating or repair-
ing the public school facility; (B) provid-
ing equipment; (C) developing course ma-
terials; and, (D) training teachers and other
school personnel. The private business
contribution requirement of § 54E(b) is
met if the eligible local education agency
that established the qualified zone acad-
emy has written commitments from pri-
vate entities to make qualified contribu-
tions having a present value (as of the date
of issuance of the issue) of not less than
10 percent of the proceeds of the issue.
Section 54E(d)(4) defines “qualified con-
tributions” as any contribution (of a type
and quality acceptable to the eligible lo-
cal education agency) of: (A) equipment
for use in the qualified zone academy (in-
cluding state-of-the-art technology and vo-
cational equipment);(B) technical assis-
tance in developing curriculum or in train-
ing teachers to promote appropriate market
driven technology in the classroom; (C)
employees’ services as volunteer mentors;
(D) internships, field trips, or other educa-
tional opportunities outside the academy;
or (E) any other property or service speci-
fied by the eligible education agency. Sec-
tion 54E(d)(2) defines “eligible local ed-
ucation agency” as any local educational
agency as defined in § 9101 of the Elemen-
tary and Secondary Education Act of 1965.
Section 54E(c)(2) provides that the
Department of the Treasury shall allocate
the national zone academy bond limitation
among the States on the basis of their re-
spective populations of individuals below
the poverty line (as defined by the Office
of Management and Budget). The limi-
tation amount allocated to a State under
the preceding sentence shall be allocated
by the State education agency to qualified
zone academies within such State.
2013–7 I.R.B.484February 11, 2013

Under § 54E(c)(3), the maximum ag-
gregate face amount of bonds issued
during any calendar year which may be
designated as QZABs with respect to any
qualified zone academy shall not exceed
the limitation amount allocated to such
academy for such calendar year. However,
under § 54E(c)(4)(A), if for any calendar
year the limitation amount for any State
exceeds the amount of bonds issued during
such year which are designated QZABs
with respect to qualified zone academies
within such State, the limitation amount
for such State for the following calendar
year shall be increased by the amount
of such excess. Under § 54E(c)(4)(B),
however, any carryforward of a limitation
amount may be carried only to the first
2 years following the unused limitation
year. For these purposes, the limitation
amount shall be treated as used on a first-in
first-out basis.
Sections 1.1397E–1 (the “Final Regu-
lations”) sets forth regulations that were
issued under § 1397E. For other guid-
ance concerning the applicability of the
regulations issued under § 1397E, the
credit rate, and the sinking fund yield
see § 1.397E–1(m), and Notice 2009–15,
2009–6 I.R.B. 449, Notice 2009–30,
2009–16 I.R.B. 852, Notice 2010–22,
2010–10 I.R.B. 435, and Rev. Proc.
2011–19, 2011–6 I.R.B. 465.
SECTION 3. QUALIFIED ZONE
ACADEMY BOND ALLOCATIONS
(in dollars) BY STATE OR
TERRITORY, 2012 AND 2013
The national limitation for QZABs is-
sued under § 54E for each of calendar
years 2012 and 2013 is $400 million.
These amounts are allocated among the
States as follows:
Qualified Zone Academy Bond Allocationsby State or Territory, 2012 and 2013
State or Territory20122013
Alabama
$7,131,000$7,131,000
Alaska
$605,000$605,000
Arizona
$9,560,000$9,560,000
Arkansas
$4,377,000$4,377,000
California
$48,715,000$48,715,000
Colorado
$5,326,000$5,326,000
Connecticut
$2,970,500$2,970,500
Delaware
$885,000$885,000
DC
$891,000$891,000
Florida
$25,291,000$25,291,000
Georgia
$14,616,000$14,616,000
Hawaii
$1,286,000$1,286,000
Idaho
$2,039,000$2,039,000
Illinois
$14,893,000$14,893,000
Indiana
$7,966,000$7,966,000
Iowa
$2,994,500$2,994,500
Kansas
$3,055,000$3,055,000
Kentucky
$6,444,000$6,444,000
Louisiana
$7,244,000$7,244,000
Maine
$1,462,000$1,462,000
Maryland
$4,625,000$4,625,000
Massachusetts
$5,893,000$5,893,000
Michigan
$13,430,000$13,430,000
Minnesota
$4,911,000$4,911,000
Mississippi
$5,238,000$5,238,000
Missouri
$7,338,000$7,338,000
Montana
$1,179,000$1,179,000
Nebraska
$1,830,000$1,830,000
Nevada
$3,368,000$3,368,000
New Hampshire
$914,000$914,000
New Jersey
$7,145,000$7,145,000
New Mexico
$3,401,000$3,401,000
New York
$24,219,000$24,219,000
North Carolina
$13,318,000$13,318,000
North Dakota
$630,000$630,000
Ohio
$14,611,000$14,611,000
Oklahoma
$5,062,000$5,062,000
Oregon
$5,214,000$5,214,000
Pennsylvania
$13,449,000$13,449,000
Rhode Island
$1,178,000$1,178,000
South Carolina
$6,788,000$6,788,000
South Dakota
$893,000$893,000
February 11, 20134852013–7 I.R.B.

Qualified Zone Academy Bond Allocationsby State or Territory, 2012 and 2013
State or Territory20122013
Tennessee
$9,137,000$9,137,000
Texas
$36,825,000$36,825,000
Utah
$3,003,000$3,003,000
Vermont
$568,000$568,000
Virginia
$7,264,000$7,264,000
Washington
$7,413,000$7,413,000
West Virginia
$2,679,000$2,679,000
Wisconsin
$5,794,000$5,794,000
Wyoming
$500,000$500,000
American Samoa
$323,000$323,000
Guam
$330,000$330,000
Northern Mariana Islands
$177,000$177,000
Puerto Rico
$13,318,000$13,318,000
Virgin Islands
$284,000$284,000
Total Allocation
$400,000,000$400,000,000
SECTION 4. EFFECTIVE DATE OF
NATIONAL ZONE ACADEMY BOND
LIMITATIONS
The national limitation allocated in sec-
tion 3 for calendar year 2012 is effective
for QZABs issued on or after January 1,
2012, and the national limitation allocated
in section 3 for calendar year 2013 is
effective for QZABs issued on or after
January 1, 2013.
SECTION 5. DRAFTING
INFORMATION
The principal authors of this notice are
Timothy L. Jones and David E. White
of the Office of Associate Chief Counsel
(Financial Institutions and Products).
For further information regarding this
notice, contact David E. White or
Timothy L. Jones at (202) 622–3980 (not
a toll-free call).
Application of Retroactive
Increase in Excludible Transit
Benefits
Notice 2013–8
PURPOSE
This notice provides guidance with
respect to issues related to the enactment
of section 203 of the American Taxpayer
Relief Act (ATRA), Pub. L. 112–240, 126
STAT. 2313, which increased the monthly
transit benefit exclusion under section
132(f)(2)(A) of the Internal Revenue Code
from $125 per participating employee to
$240 per participating employee for the
period of January 1, 2012 through De-
cember 31, 2012. To address employers’
questions regarding the retroactive appli-
cation of the increased exclusion for 2012
and to reduce filing and reporting burdens,
the Internal Revenue Service (Service)
is clarifying how the increase applies for
2012 and providing a special adminis-
trative procedure for employers to use in
filing Form 941, Employer’s QUARTERLY
Federal Tax Return, for the fourth quarter
of 2012 to reflect changes in the exclud-
able amount for transit benefits provided
in all quarters of 2012, and in filing Forms
W–2,Wage and Tax Statement.
BACKGROUND
Section 132(a)(5) provides that any
fringe benefit that is a qualified transporta-
tion fringe is excluded from gross income.
Section 132(f)(1) provides in relevant
part that the term “qualified transportation
fringe” includes (when provided by an em-
ployer to an employee): (1) transportation
in a commuter highway vehicle between
home and work, (2) any transit pass, or (3)
qualified parking.
Section 132(f)(2) provides that the
amount of fringe benefits which are pro-
videdbyanemployertoanyemployee
and which may be excluded from gross
income under section 132(a)(5) shall not
exceed $100 per month in the case of the
aggregate of transportation in a commuter
highway vehicle and any transit pass, and
$175 in the case of qualified parking.
These amounts are adjusted annually for
inflation under section 132(f)(6). Prior to
enactment of ATRA, the adjusted maxi-
mum monthly excludable amount for 2012
for the aggregate of transportation in a
commuter highway vehicle and any transit
pass was $125 and the adjusted maximum
monthly excludable amount for qualified
parking was $240. Section 3.12 of Rev.
Proc. 2011–52, 2011–45 I.R.B. 701, prior
to amendment by section 3 of Rev. Proc.
2013–15 (released January 11, 2013).
ATRA amended section 132(f)(2) to in-
crease the maximum monthly excludable
amount for employer-provided commuter
highway vehicle transportation and transit
pass benefits to an amount equal to the
maximum monthly excludable amount
for qualified parking. The amendment
is effective retroactively beginning on
January 1, 2012, and extending through
December 31, 2013. Rev. Proc. 2013–15
clarifies that the maximum monthly
excludable amount for employer-provided
commuter highway vehicle transportation
and transit pass benefits for 2012 is $240.
(Rev. Proc. 2013–15 also specifies that
the maximum monthly excludable amount
for 2013 is $245.)
Amounts which are excluded from
gross income under section 132 are also
excluded from Federal Insurance Contri-
butions Act (FICA) taxes (both social se-
curity and Medicare) and Federal income
2013–7 I.R.B.486February 11, 2013

tax withholding. Sections 3121(a)(20) and
3401(a)(19).
Generally, corrections of overpayments
of FICA tax are made after an error has
been ascertained using the adjustment
process under section 6413 or using the
refund claim process under section 6402.
An error is ascertained when the employer
has sufficient knowledge of the error to be
able to correct it.
Under section 31.6413(a)–1(a) and sec-
tion 31.6413(a)–2(b) of the Employment
Tax Regulations, before making an adjust-
ment of an overpayment of FICA tax, an
employer generally must repay or reim-
burse its employee in the amount of the
overcollection prior to the expiration of
the period of limitations on credit or re-
fund, and, for FICA tax overcollected in a
prior year, must also secure the employee’s
written statement confirming that the em-
ployee has not made any previous claims
(or the claims were rejected) and will not
make any future claims for refund or credit
of the amount of the overcollected FICA
tax. An employer repays the employee
by direct payment to the employee; an
employer reimburses an employee by ap-
plying the amount of the overcollection
against the employee FICA tax which at-
taches to wages paid by the employer to the
employee. Section 31.6413(a)–1(b) pro-
vides that employers cannot adjust over-
payments of withheld income tax after the
end of the calendar year.
Section 31.6402(a)–2 provides rules
under which a refund claim for an overpay-
ment of FICA tax may be made. Pursuant
to § 31.6402(a)–2(a), an employer has a
duty to assure that its employee’s rights to
recover overcollected taxes are protected
by repaying or reimbursing overcollected
amounts. Alternatively, an employer may
obtain the employee’s consent to the filing
of the refund claim. Under section 6414
and § 31.6414–1, no refund to the em-
ployer is allowed for the overpayment of
withheld income tax which the employer
deducted or withheld from an employee.
To make employment tax corrections
for overpayments (that is, to make adjust-
ments or to claim refunds), an employer
uses the “X” form that corresponds to the
return being corrected. Thus, an employer
corrects overreported taxes on a previously
filed Form 941 by filing Form 941-X,Ad-
justed Employer’s QUARTERLY Federal
Tax Return or Claim for Refund.Asep-
arate “X” form must be filed for each tax-
able period.
EMPLOYERS WHO PROVIDED
TRANSIT BENEFITS IN EXCESS OF
$125 PER MONTH AND LESS THAN
OR EQUAL TO $240 PER MONTH IN
2012
For purposes of the remaining discus-
sion, “transit benefits” refers to the aggre-
gate benefit of transportation in a com-
muter highway vehicle and transit passes.
Pursuant to the change made by ATRA,
which was retroactive to January 1, 2012,
any transit benefits provided by an em-
ployer to an employee in excess of $125
(the former maximum monthly excludable
amount) up to $240 (the amended maxi-
mum monthly excludable amount) is ex-
cluded from the employee’s gross income
and wages. These excess amounts are re-
ferred to as “excess transit benefits” in this
notice. The exclusion applies whether the
employer provided the transit benefits out
of its own funds or whether the transit ben-
efits were provided through salary reduc-
tion arrangements as permitted by section
132(f)(4) and § 1.132–9, Q/A 11 of the In-
come Tax Regulations.
SPECIAL ADMINISTRATIVE
PROCEDURE FOR EMPLOYERS WHO
DESIRE TO MAKE ADJUSTMENTS
FOR 2012 ON THE FORM 941 FILED
FOR THE FOURTH QUARTER OF 2012
Employers, who originally reported ex-
cess transit benefits as includible in gross
income and wages, and withheld income
taxes and FICA taxes, would normally be
required to file Form 941-X for each quar-
ter to correct the error.
Due to the timing of the statutory
change and the due dates for Forms 941
for the fourth quarter of 2012 and Forms
W–2, and in order to reduce administrative
burden, the Service is providing a special
administrative procedure for employers
that treated excess transit benefits as wages
and that have not yet filed their fourth
quarter Form 941 for 2012. Employers
who desire to use this special administra-
tive procedure must repay or reimburse
their employees the overcollected FICA
tax on the excess transit benefits for all
four quarters of 2012 on or before filing
the fourth quarter Form 941. The em-
ployer, in reporting amounts on its fourth
quarter Form 941, may reduce the fourth
quarter Wages, tips and compensation re-
ported on line 2, Taxable social security
wages reported on line 5a, and Medicare
wages and tips reported on line 5c, by the
excess transit benefits for all four quarters
of 2012. By taking advantage of this spe-
cial administrative procedure, employers
will avoid having to file Forms 941-X, and
will also avoid having to file Forms W–2c
as discussed below.
This procedure can only be used to the
extent that employers have repaid or reim-
bursed their employees for the employee
share of FICA tax attributable to the excess
transit benefits. Under this special admin-
istrative procedure,employers may only
correct the employer share of FICA tax
that corresponds to the employees’ share
of FICA tax that has been repaid or reim-
bursed to the employees. Employers using
this special procedure do not need to ob-
tain written statements from their employ-
ees confirming, for each employee, that the
employee did not make a claim (or if the
employee did make a claim, the claim was
rejected) and will not make a claim for re-
fund of FICA tax overcollected in a prior
year.
The repayment or reimbursement of
overwithheld socialsecurity tax and the
corresponding reduction for wages re-
ported on Form 941, line 5a, Taxable social
security wages, must take into account that
refunds or credits of social security tax are
limited to the amount paid on that portion
of the excess transit benefits that, when
added to other wages for the year, did not
exceed the social security wage base for
2012 ($110,100).
The same procedures are available to
filers of other employment tax returns re-
porting FICA taxes (e.g., the related Span-
ish-language return or return for U.S. pos-
sessions) and to filers of employment tax
returns reporting taxes under the Railroad
Retirement Tax Act.
EMPLOYER INSTRUCTIONS —
FOURTH QUARTER FORM 941 HAS
BEEN FILED OR THE EMPLOYER
HAS NOT REPAID OR REIMBURSED
ALL EMPLOYEES
Employers that have filed the fourth
quarter Form 941 must use Form 941-X
to make an adjustment or claim a refund
for any quarter in 2012 with regard to the
February 11, 20134872013–7 I.R.B.

overpayment of tax on the excess tran-
sit benefits after repaying or reimbursing
the employees or, for refund claims, se-
curing consents from its employees. Sim-
ilarly, employers that, on or before filing
the fourth quarter Form 941, have not re-
paid or reimbursed some or all employ-
ees who received excess transit benefits in
2012 must use Form 941-X to make an ad-
justment or claim for refund with respect
to the excess transit benefits provided to
those employees and must follow the nor-
mal procedures.
EMPLOYER INSTRUCTIONS —
FORM W–2
Employers that have not furnished 2012
Forms W–2 to their employees should take
into account the increased exclusion for
transit benefits incalculating the amount
of wages reported in box 1, Wages, tips,
other compensation; box 3, Social secu-
rity wages; and box 5, Medicare wages
and tips. Employers that have repaid or
reimbursed their employees for the over-
collected FICA taxes prior to furnishing
Form W–2 should reduce the amounts
of withheld tax reported in box 4, Social
security tax withheld, and box 6, Medi-
care tax withheld, by the amounts of the
repayments or reimbursements. In all
cases, however, employers must report in
box 2, Federal income tax withheld, the
amount of income tax actually withheld
during 2012. The additional income tax
withholding will be applied against the
taxes shown on the employee’s individual
income tax return (Form 1040,U.S. Indi-
vidual Income Tax Return).
Employers that repaid or reimbursed
their employees for the overcollected
FICA taxes after furnishing Forms W–2
to their employees but before filing Forms
W–2 with the Social Security Administra-
tion (SSA), should check the “Void” box at
the top of each incorrect Form W–2 (Copy
A). The employer should prepare new
Forms W–2 with the correct information,
and send these new Forms W–2 (Copy A)
to the SSA. The employers should write
“CORRECTED” on the employees’ new
copies (B, C, and 2), and furnish them to
the employees.Seethe 2012 Instructions
for Forms W–2 and W–3.
Employers that have already filed 2012
Forms W–2 with SSA will need to file
Forms W–2c,Corrected Wage and Tax
Statement, to take into account the in-
creased exclusion for transit benefits.
DRAFTING INFORMATION
The principal author of this no-
tice is Jean Casey of the Office of
Associate Chief Counsel (Tax Exempt
& Government Entities). For further
information regarding this notice, contact
Ms. Casey at (202) 622–6040 (not a
toll-free call).
CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also Part I, §§ 61, 108, 451, 6041, 6050P;
1.1001–3.)
Rev. Proc. 2013–16
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance to mortgage loan holders, loan ser-
vicers, and borrowers who are participat-
ing in the Department of the Treasury’s
(Treasury) and Department of Hous-
ing and Urban Development’s (HUD)
Home Affordable Modification Program
®
(HAMP
®
). Under HAMP, a borrower may
be eligible for principal reduction of the
outstanding balance of a qualifying mort-
gage pursuant to the program’s Principal
Reduction Alternative
SM
(PRA). In appro-
priate cases, HAMP has been offering the
PRA as part of a HAMP loan modification
since the last quarter of 2010. Current
plans call for HAMP to continue accepting
new borrowers through the end of 2013.
The Internal Revenue Service (Service) is
providing this guidance to address the tax
consequences for borrowers (HAMP-PRA
borrowers) who are participating in the
PRA and the reporting obligations for
participating mortgage loan holders and
servicers.
SECTION 2. BACKGROUND—HAMP
AND THE HAMP PRINCIPAL
REDUCTION ALTERNATIVE
.01Tohelpdistressedborrowers
lower their monthly mortgage payments,
Treasury and HUD established HAMP
for mortgage loans that are not owned
or guaranteed by the Federal National
Mortgage Association (Fannie Mae)
or the Federal Home Loan Mortgage
Corporation (Freddie Mac). A descrip-
tion of the program can be found at
www.makinghomeaffordable.gov.
.02 Under HAMP, a participating loan
servicer, acting on behalf of the mortgage
loan holder, must consider a sequence of
modification steps for each eligible bor-
rower’s mortgage loan until the borrower’s
monthly payment is reduced to a monthly
payment amount determined under the
HAMP guidelines. These steps include a
reduction in the mortgage loan’s interest
rate, an extension of the mortgage loan’s
term, and a reduction in the mortgage
loan’s principal balance.
.03 In some cases, the unpaid principal
balance of the modified mortgage loan is
divided into (1) an amount that bears stated
interest and that is used to calculate the
borrower’s new monthly mortgage pay-
ment (the “Non-forbearance Portion”), and
(2) a forbearance amount, which does not
bear stated interest and on which periodic
payments of stated principal are not re-
quired. The stated principal of the forbear-
ance amount is due upon the earliest of the
borrower’s transfer of the property, payoff
of the balance on the Non-forbearance Por-
tion of the mortgage loan, or maturity of
the mortgage loan. However, as noted in
section 2.06 of this revenue procedure, a
HAMP-PRA borrower sometimes may not
have to pay all or a portion of the forbear-
ance amount. (The forbearance amount as-
sociated with a HAMP-PRA principal re-
duction is called the “PRA Forbearance
Amount.”)
.04 If a mortgage loan is being con-
sidered for a HAMP modification and
the amount owed on the mortgage loan is
greater than 115 percent of the value of
the property, then the servicer must con-
sider whether principal reduction under
PRA should be used as part of the HAMP
modification.
.05ThefirststeptowardaHAMPmod-
ification is a trial period plan, in which the
borrower’s monthly mortgage payment is
set at a monthly payment amount deter-
mined under the HAMP guidelines. The
trial period plan effective date is the due
date for the first of the reduced payments
that are to be made under the trial pe-
riod plan. (It is the first day of either the
first or the second month after the servicer
transmits the trial period notice to the bor-
rower.) In general, the trial period is three
2013–7 I.R.B.488February 11, 2013

months, and, during this period, the bor-
rower must satisfy certain conditions be-
fore the changes to the terms of the mort-
gage loan become permanent (the “Trial
Period Conditions”). Specifically, depend-
ing on the borrower’s trial period payment
history, the borrower’s compliance with
HAMP and servicer guidelines, and his or
her satisfaction of all other Trial Period
Conditions, the borrower will be offered a
permanent modification of the terms of the
mortgage loan, including monthly mort-
gage payments that are lower than those
under the old mortgage loan. Until the ef-
fective date of a permanent modification,
thetermsoftheexistingmortgageloan
continue to apply.
.06 After the mortgage loan is perma-
nently modified under HAMP, if the mod-
ified mortgage loan is in good standing
on the first, second, or third annual an-
niversary of the trial period plan effec-
tive date (the “Three-year Period”), the
servicer must reduce the unpaid princi-
pal balance of the mortgage loan on the
respective anniversary date by one-third
of the initial PRA Forbearance Amount.
(The servicer allocates the entire reduc-
tion to the remaining PRA Forbearance
Amount.) In general, if a HAMP-PRA
borrower’s mortgage loan is in good stand-
ing and if the HAMP-PRA borrower pays
in full the Non-forbearance Portion of the
mortgage loan prior to the reduction of
the entire PRA Forbearance Amount, the
servicer must reduce the remaining out-
standing principal balance of the mortgage
loan by the remaining PRA Forbearance
Amount.
.07InconnectionwitheveryHAMP
loan modification, the HAMP program
administrator (acting on behalf of the fed-
eral government) provides incentives to
the borrower, the servicer, and the investor
(that is, the holder of the mortgage loan).
If a HAMP loan modification includes
a PRA principal reduction, the HAMP
program administrator makes additional
incentive payments tothe investor. These
additional incentives are called “PRA
Investor Incentive Payments” and are gen-
erally spread over three years. The size
of the PRA Investor Incentive Payments
depends on the amount of principal re-
duced, the loan-to-value ratio at the time
of the HAMP modification, and the loan’s
payment history before the modification.
The PRA Investor Incentive Payments
range from 18 to 63 percent of the princi-
pal amounts reduced. For purposes of this
revenue procedure, the excess of the initial
PRA Forbearance Amount of a mortgage
loan over the aggregate PRA Investor In-
centive Payments scheduled to be paid
with respect to that loan is called the “PRA
Adjusted Forbearance Amount.”
.08 A PRA Investor Incentive Payment
is earned by the investor on each date on
which the servicer reduces the unpaid prin-
cipal balance of the mortgage loan by a
portion of the PRA Forbearance Amount
(generally, on the first three annual an-
niversaries of the trial period plan effective
date).
.09 If a HAMP-PRA borrower’s early
payment in full of the Non-forbearance
Portion of the mortgage loan accelerates
the reduction of the remaining PRA For-
bearance Amount (described above in sec-
tion 2.06 of this revenue procedure), the re-
maining PRA Investor Incentive Payments
from the HAMP programadministrator are
also accelerated.
.10 If, prior to completion of the Three-
year Period, a mortgage loan ceases to be
in good standing because of the HAMP-
PRA borrower’s payment history, then the
remaining PRA Forbearance Amount is
not further reduced and is due when the
HAMP-PRA borrower transfers the prop-
erty, the HAMP-PRA borrower refinances,
or otherwise pays off the Non-forbearance
Portion of the mortgage loan, or the mort-
gage loan matures.
SECTION 3.
BACKGROUND—APPLICABLE
PROVISIONS OF LAW
.01Under§61oftheInternalRev-
enue Code, except as otherwise provided
in subtitle A, gross income means all in-
come from whatever source derived, in-
cluding income from discharge of indebt-
edness.See§ 61(a)(12).
.02 Under § 1.1001–3 of the Income
Tax Regulations, if a debt instrument un-
dergoes a significant modification, then
the modification results in an exchange of
the original debt instrument for the modi-
fied debt instrument. In general, an agree-
ment to change a term of a debt instrument
is a modification at the time the borrower
and holder enter into the agreement, even
if the change in term is not immediately ef-
fective. However, if the change is condi-
tioned on reasonable closing conditions, a
modification occurs on the closing date of
the agreement.See§ 1.1001–3(c)(6).
.03 Under § 108(e)(10), in the case
of a debt-for-debt exchange (including a
deemed exchange under § 1.1001–3), the
borrower is treated as having satisfied the
original debt instrument with an amount
of money equal to the issue price of the
new debt instrument. If the amount of debt
satisfied in this manner exceeds that issue
price, the borrower realizes discharge of
indebtedness income on the exchange.See
also§ 1.61–12(c).
.04 The issue price of a non-publicly
traded debt instrument issued for non-pub-
licly traded property generally reflects the
amount of principal that the borrower is
required to pay to the holder of the in-
strument. If a borrower has the ability
to avoid paying certain amounts (includ-
ing principal) without violating the terms
of the instrument, the payment schedule
for the instrument is generally determined
based on an assumption that the borrower
will avoid any requirement to make those
payments.See, e.g.,§§ 1.1272–1(c)(5) and
1.1274–2(d).
.05 Under § 108(a), gross income
does not include any amount that but for
§ 108(a) would be includible in gross in-
come by reason of the discharge (in whole
or in part) of a taxpayer’s indebtedness if
(1) the indebtedness discharged is quali-
fied principal residence indebtedness that
is discharged before January 1, 2014, or
(2) the discharge occurs when the taxpayer
is insolvent. Section 108(a)(1)(E) and
108(a)(1)(B). (Although § 108 contains
other exclusions as well, this revenue pro-
cedure focuses on these two exclusions
because they are the most likely to apply
to the greatest number of HAMP-PRA
borrowers.)
.06 Under §§ 108(h) and 163(h)(3)(B),
qualified principal residence indebtedness
is any indebtedness that is incurred by a
borrower to buy, build, or substantially im-
prove the borrower’s principal residence
and is secured by that residence.
.07 Qualified principal residence in-
debtedness also includes a loan secured
by the borrower’s principal residence that
refinances qualified principal residence
indebtedness, but only to the extent of the
amount of the refinanced indebtedness.
See§§ 108(h) and 163(h)(3)(B)(i).
February 11, 20134892013–7 I.R.B.

.08 The maximum amount of dis-
charged indebtedness that a borrower may
exclude from gross income under the
qualified principal residence indebtedness
exclusion is $2,000,000 ($1,000,000 for
a married individualfiling a separate re-
turn). Under § 108(h)(4), if only part of
the discharged indebtedness is qualified
principal residence indebtedness, then the
exclusion applies only to the amount of
the discharged indebtedness that exceeds
the amount of the loan (determined im-
mediately before the discharge) that isnot
qualified principal residence indebtedness.
.09 Under § 108(a)(3), the insolvency
exclusion applies to the lesser of the
amount of the debt discharged or the
amount by which the taxpayer is insolvent
immediately before the discharge.
.10 Section 108(d)(3) provides that, for
purposes of the insolvency exclusion, a
taxpayer is insolvent to the extent that the
taxpayer’s total liabilities exceed the fair
market value of all of the taxpayer’s as-
sets immediately before the discharge of
indebtedness. Under § 108(a)(2)(C), the
qualified principal residence indebtedness
exclusion takes precedence over the insol-
vency exclusion when both exclusions ap-
ply to discharged indebtedness, unless the
taxpayer elects to apply the insolvency ex-
clusion.
.11 If an amount is excluded from gross
income as a discharge of qualified princi-
pal residence indebtedness, the taxpayer
must reduce the basis of the taxpayer’s
principal residence.See§ 108(h)(1). If
a discharged amount is excluded from
gross income because the taxpayer was
insolvent when the discharge occurred, the
taxpayer must reduce certain tax attributes
(possibly including basis).See§ 108(b).
For further discussion of income from the
discharge of indebtedness, the qualified
principal residenceindebtedness exclu-
sion, the insolvency exclusion, and other
exclusions from gross income that may
apply, see Publication 4681,Canceled
Debts, Foreclosures, Repossessions, and
Abandonments (for Individuals).
.12 Taxpayers who exclude any dis-
charged amounts from gross income report
both the exclusion and the resulting re-
duction in basis or other tax attributes on
Form 982,Reduction of Tax Attributes
Due to Discharge of Indebtedness (and
Section 1082 Basis Adjustment). SeeForm
982 instructions and Publication 4681.
This form is to be filed with the tax return
for the taxable year in which the amount
is discharged but is excluded from gross
income.
.13 Governmental payments made to
or on behalf of individuals or other per-
sons are included within the broad defi-
nition of gross income under § 61 unless
an exception applies.SeeNotice 2003–18,
2003–1 C.B. 699, and Rev. Rul. 79–356,
1979–2 C.B. 28. However, if disburse-
ments are made by a governmental unit to
individuals in the interest of the general
welfare (that is, are generally based on in-
dividual or family need) and the disburse-
ments do not represent compensation for
services, then the amounts disbursed are
excluded from the income of the recipient
(general welfare exclusion).SeeRev. Rul.
2005–46, 2005–2 C.B. 120, and Rev. Rul.
75–246, 1975–1 C.B. 24.
.14 Under § 451 and § 1.451–1(a), a tax-
payer that uses the cash receipts and dis-
bursements method of accounting includes
income in gross income when the taxpayer
actually or constructively receives the in-
come.
.15 Section 6041 requires every per-
son engaged in a trade or business (includ-
ing the United States and its agencies) to
(1) file an information return (Form 1099-
MISC,Miscellaneous Income,isusedfor
this purpose) for each calendar year in
which the person makes, in the course of
its trade or business, payments to another
person of fixed or determinable income ag-
gregating $600 or more, and (2) furnish
a copy of the information return to that
other person.See§ 6041(a) and (d) and
§ 1.6041–1(a)(1) and (b).
.16 Section 6050P requires applicable
entities (including the United States and
its agencies, financial entities, and any or-
ganization a significant trade or business
of which is the lending of money) to (1)
file an information return (Form 1099-C,
Cancellation of Debt,is used for this pur-
pose) for each calendar year in which it
discharges indebtedness of another person
of $600 or more, and (2) furnish a copy of
the information return to that other person.
See§ 6050P(a)-(c) and §§ 1.6050P–1(a)
and 1.6050P–2(a) and (d).
.17 Section 6721 imposes penalties with
respect to information returns required to
be filed with the Service. These penal-
ties apply in the case of a failure to timely
file an information return, a failure to in-
clude all required information on the re-
turn, or the inclusion of incorrect informa-
tion on the return. Section 6724(d)(1) in-
cludes Forms 1099-MISC and 1099-C in
the term “information return.”
.18 Section 6722 imposes penalties
with respect to payee statements required
to be furnished to payees. These penalties
applyinthecaseofafailuretotimely
furnish a payee statement, a failure to
include all required information on the
statement, or the inclusion of incorrect in-
formation on the payee statement. Section
6724(d)(2) includes in the term “payee
statement” copies of Forms 1099-MISC
and 1099-C that are required to be fur-
nished to taxpayers.
SECTION 4. FEDERAL INCOME TAX
TREATMENT
.01 Because a HAMP modification
with a PRA principal reduction is a signif-
icant modification,it results in a deemed
debt-for-debt exchange in which the
HAMP-PRA borrower satisfies the old
mortgage loan by issuing a new one.See
§ 1.1001–3. At the time of the modifi-
cation, therefore, under § 108 and this
revenue procedure, the HAMP-PRA bor-
rower realizes discharge of indebtedness
income equal to any excess of the ad-
justed issue price of the old mortgage loan
(which was satisfied in the deemed ex-
change) over the issue price of the new
(post-modification) mortgage loan.See
also§ 61(a)(12) and § 1.61–12(c).
.02 A HAMP-PRA borrower has the
ability to avoid payment of the PRA Ad-
justed Forbearance Amount. Because the
HAMP-PRA borrower has this ability, that
amount should not be taken into account
in determining the issue price of the new
mortgage loan. Because the issue price of
the new mortgage loan does not include the
PRA Adjusted Forbearance Amount, the
PRA Adjusted Forbearance Amount con-
tributes to the excess of the adjusted issue
price of the old mortgage loan (which was
satisfied in the deemed exchange) over the
issue price of the new mortgage loan.
.03 On the other hand, the investor has
not given up its right to receive the remain-
der of the PRA Forbearance Amount, be-
cause the HAMP program administrator is
expected to make those payments on the
HAMP-PRA borrower’s behalf by making
the PRA Investor Incentive Payments. Be-
2013–7 I.R.B.490February 11, 2013

cause the remainder of the PRA Forbear-
ance Amount is payable in this manner,
that remainder is included in the issue price
of the new mortgage loan.
.04 The Trial Period Conditions are rea-
sonable closing conditions that must be
satisfied before the changes to the terms
of the mortgage loan become permanent.
Therefore, for purposes of § 1.1001–3, the
date of the modification is the date of the
permanent modification.
.05 Unless an exclusion applies, the
HAMP-PRA borrower includes in gross
income the discharge of indebtedness in-
come described in section 4.01 of this
revenue procedure for the taxable year in
which the permanent modification occurs.
Under certain conditions, however, sec-
tion 6 of this revenue procedure permits
a borrower to report the discharge of in-
debtedness under HAMP-PRA over the
Three-year Period. The qualified prin-
cipal residence indebtedness exclusion
under § 108(a)(1)(E) and the insolvency
exclusion under § 108(a)(1)(B) are two
exclusions that may apply to the discharge.
.06 The PRA Investor Incentive Pay-
ment is treated as a payment on the mort-
gage loan by the HAMP program admin-
istrator on behalf of the HAMP-PRA bor-
rower.
.07 To the extent that the HAMP-PRA
borrower uses the property as the
HAMP-PRA borrower’s principal resi-
dence or the property is occupied by the
HAMP-PRA borrower’s legal dependent,
parent, or grandparent without rent being
charged or collected, the HAMP-PRA
borrower excludes from his or her gross in-
come under the general welfare exclusion
the PRA Investor Incentive Payments that
the HAMP program administrator makes
to the investor in the mortgage loan. This
is consistent with Rev. Rul. 2009–19,
2009–28 I.R.B. 111, which addressed the
treatment of Pay-for-Performance Success
Payments.
.08 To the extent that the HAMP-PRA
borrower uses the property as a rental
property or holds the property vacant
and available for rent, the HAMP-PRA
borrower includes PRA Investor Incen-
tive Payments in gross income. If the
HAMP-PRA borrower uses the cash re-
ceipts and disbursements method of ac-
counting, then the HAMP-PRA borrower
includes a PRA Investor Incentive Pay-
ment in gross income in the taxable year
in which it is applied as a payment on the
HAMP-PRA borrower’s mortgage loan.
.09 As described in section 2.09 of this
revenue procedure, if a HAMP-PRA bor-
rower pays in full the Non-forbearance
Portion of the mortgage loan while the loan
is in good standing and prior to comple-
tion of the Three-year Period, that pay-
ment accelerates both the reduction in the
remaining PRA Forbearance Amount and
the PRA Investor Incentive Payments from
the HAMP program administrator. To the
extent that the HAMP-PRA borrower is
described in section 4.07 of this revenue
procedure, the HAMP-PRA borrower ex-
cludes from his or her gross income under
the general welfare exclusion the acceler-
ated PRA Investor Incentive Payments. To
the extent that the HAMP-PRA borrower
isdescribedinsection4.08ofthisrevenue
procedure, the HAMP-PRA borrower in-
cludes in income in the year of the accel-
eration the remaining amount of the PRA
Investor Incentive Payment.
SECTION 5.
INFORMATION-REPORTING
OBLIGATIONS
.01 Under § 6050P, the investor is re-
quired to file a Form 1099-C with respect
to a borrower who realizes discharge of in-
debtedness of $600 or more. A copy of this
form is required to be furnished to the bor-
rower.
.02 As stated in sections 4.01 and
4.04 of this revenue procedure, the
HAMP-PRA discharge of indebtedness
is realized at the time of the permanent
modification of the mortgage loan.
.03 An investor is an applicable entity
that is required under § 1.6050P–1 and
this revenue procedure to issue a Form
1099-C for discharge of indebtedness. Un-
der § 1.6050P–1(b)(2)(F), the permanent
modification of a mortgage loan is an iden-
tifiable event. Identifiable events deter-
mine when Forms 1099-C have to be is-
sued. Thus, the Form 1099-C is issued
for the calendar year in which the perma-
nent mortgage loan modification occurs.
This rule under § 1.6050P–1(b)(2)(F) ap-
plies even if, under section 6 of this rev-
enue procedure, the HAMP-PRA borrower
chooses to treat the HAMP-PRA discharge
as being realized at the times when the un-
paid principal balance of the new mortgage
loan is reduced.
.04 The investor (or the loan servicer
acting on behalf of the investor) reports
the full amount of the discharge on the
Form 1099-C regardless of whether some
or all of the amount is excludible from
income under the qualified principal res-
idence indebtedness exclusion, the insol-
vency exclusion, or any other exclusion
that may apply. That discharged amount
will generally be the PRA Adjusted For-
bearance Amount (which does not include
the amounts expected to be satisfied by
PRA Investor Incentive Payments).
.05 To the extent that PRA Investor In-
centive Payments are made on behalf of
a HAMP-PRA borrower who is described
in section 4.07 of this revenue procedure,
the PRA Investor Incentive Payments are
excluded from the gross income of the
HAMP-PRA borrower, and thus they are
not fixed or determinable income to the
HAMP-PRA borrower. Under § 6041,
these payments are not subject to infor-
mation reporting.SeeNotice 2011–14,
2011–11 I.R.B. 544, 546.
.06 To the extent that PRA Investor
Incentive Payments are made on behalf of
a HAMP-PRA borrower who is described
in section 4.08 of this revenue procedure,
the PRA Investor Incentive Payments are
includible in gross income as fixed or
determinable income in the taxable year
required by the HAMP-PRA borrower’s
method of accounting. The payment is
subject to the information reporting re-
quirements of § 6041, as described in
section 3.15 of this revenue procedure.
Accordingly, the HAMP program ad-
ministrator is required to issue a Form
1099-MISC reporting the PRA Investor
Incentive Payment.
SECTION 6. HAMP-PRA
BORROWERS’ REPORTING OF
DISCHARGES OF INDEBTEDNESS
UNDER HAMP-PRA
.01In general. The HAMP-PRA pro-
gram began in the last quarter of 2010,
and since that time there has been uncer-
tainty about whether the amount of the dis-
charge of indebtedness should be reported
in the year of the permanent modification
or over the Three-year Period (when the
unpaid principal balance on the new mort-
gage loan is reduced). As a result, some
HAMP-PRA borrowers have been report-
ing the discharge of indebtedness under
February 11, 20134912013–7 I.R.B.

HAMP-PRA over the Three-year Period.
Given the temporary nature of the program
and the issuance of this guidance after par-
ticipation in the program has begun, in the
interests of equitable and sound tax ad-
ministration, HAMP-PRA borrowers may
report discharges of indebtedness under
HAMP-PRA under the rules in this section
6. A HAMP-PRA borrower may choose
to report discharges of indebtedness under
HAMP-PRA pursuant to the rules in this
section 6 only if the borrower applies the
same borrower option under section 6.02
of this revenue procedure consistently to
the taxable year of the permanent modifi-
cation and to all subsequent taxable years.
Thus, a HAMP-PRA borrower may not
choose a borrower option under section
6.02 of this revenue procedure if a statute
of limitations has expired for any of the
taxable years that are necessary for consis-
tent application of that option.
.02HAMP-PRA borrower options.
A HAMP-PRA borrower may treat the
HAMP-PRA discharge as being realized
in either of the following ways—
(1) One hundred percent of the PRA
Adjusted Forbearance Amount at the time
of the permanent modification; or
(2) One third of the PRA Adjusted For-
bearance Amount on each of the first three
annual anniversaries of the trial period
plan effective date (described in section
2.06 of this revenue procedure), when, as
required by the terms of the new mort-
gage loan, the servicer reduces the unpaid
principal balance of the new mortgage
loan. If some or all of the reduction in
the unpaid principal balance is accelerated
(as described in section 2.06 of this rev-
enue procedure) because the HAMP-PRA
borrower prepays the Non-forbearance
Portion of the mortgage loan, then the
HAMP-PRA discharge represented by the
amount of the reduction that was acceler-
ated is treated as being realized at the time
of the accelerated reduction.
.03HAMP-PRA borrowers who choose
to realize the HAMP-PRA discharge at the
time of the permanent modification.
(1) If a HAMP-PRA borrower chooses
to treat the HAMP-PRA discharge as be-
ing realized at the time of the permanent
modification, then for the taxable year in
which the permanent modification occurs,
the HAMP-PRA borrower reports on Form
982 the amount, if any, of the discharge
that is excluded from gross income and in-
cludes in gross income any remaining dis-
charge.
(2) If a HAMP-PRA borrower’s mort-
gage loan was permanently modified un-
der HAMP in 2010 or 2011, and if the bor-
rower was reporting the discharge of in-
debtedness using the method described in
section 6.02(2) of this revenue procedure,
then the borrower may change to report-
ing the discharge of indebtedness using the
method described in section 6.02(1) of this
revenue procedure by filing a 2012 Form
982 with the borrower’s timely filed (with
extensions) 2012 income tax return. This
section 6.03(2) applies only if the change
to reporting the discharge using the method
described in section 6.02(1) of this revenue
procedure does not change the borrower’s
federal income tax liability (including any
change in federal income tax liability due
to a change in basis or tax attributes (under
§ 108(h)(1) or § 108(b))) for any taxable
year prior to the borrower’s 2012 taxable
year. To make this change, the borrower
must—
(i) Compute the amount of discharge of
indebtedness that would be included in in-
come under § 61(a)(12) or excluded from
gross income under § 108, basing the com-
putation of the discharge on the facts as
of the year of the permanent modification;
and
(ii) Report on a 2012 Form 982 the re-
duction in basis or tax attributes (under
§ 108(h)(1) or § 108(b)) due to the perma-
nent modification that the borrower would
have reported on the Form 982 for the
taxable year of the permanent modifica-
tion, minus any reductions due to the per-
manent modification that the borrower ac-
tually reported on Forms 982 for taxable
years prior to 2012.
(3)Example. The following example il-
lustrates the application of section 6.03(2)
of this revenue procedure.
In 2010, B’s basis in B’s principal residence
was $330,000. In 2010, B’s mortgage loan on the
principal residence is permanently modified under
HAMP-PRA. B realized $30,000 of cancellation of
indebtedness from the permanent modification, all
of which qualifies for the exclusion from income
for qualified principal residence indebtedness under
§ 108(a)(1)(E). The trial period plan effective date
also fell in 2010.
B’s federal income tax return for 2010 was consis-
tent with B’s reporting this discharge of indebtedness
using the method described in section 6.02(2) of this
revenue procedure. That is, B’s 2010 return did not
include income from discharge of indebtedness under
HAMP-PRA, nor did the return contain a Form 982
reporting exclusion of any such discharge of indebt-
edness. The next year, B reported on line 10(b) of
the 2011 Form 982 that B filed with B’s 2011 federal
income tax return a $10,000 reduction in basis in the
principal residence.
For 2012, B chooses to change to reporting the
discharge of indebtedness using the method described
in section 6.02(1) of this revenue procedure. Thus, B
files a 2012 Form 982 with B’s timely filed (includ-
ing extensions) 2012 federal income tax return, and
on line 10(b) of that form, B reports a $20,000 basis
reduction in the principal residence ($30,000 basis re-
duction that B would have excluded from income in
2010 using the method described in section 6.02(1)
of this revenue procedure, minus the $10,000 basis
reduction that B reported on B’s 2011 Form 982).
(4)IfaHAMP-PRAborrowerreports
the entire HAMP-PRA discharge using
the method described in section 6.02(1)
of this revenue procedure, and if that
HAMP-PRA borrower’s mortgage loan
ceases to be in good standing during the
Three-year Period as described in section
2.10 of this revenue procedure, then some
or all of the anticipated reductions in the
PRA Adjusted Forbearance Amount will
not take place. Because the amount of
these anticipated reductions was not in-
cluded in determining the issue price of
the new mortgage loan that, pursuant to
§ 1.1001–3, the HAMP-PRA borrower is
deemed to issue in satisfaction of the old
mortgage loan, the issue price of the new
mortgage loan was understated. Under
these circumstances, the discharge of in-
debtedness income determined as of the
date of the permanent modification will
have been overstated.
(5) The Service will not challenge a
HAMP-PRA borrower who is described
in section 6.03(4) of this revenue proce-
dure and who takes the following correc-
tive measures:
(i) If a HAMP-PRA borrower included
any of the discharge of indebtedness in
gross income, the HAMP-PRA borrower
may file an amended return that does not
include the amount of the discharge of in-
debtedness that was previously reported
as gross income but that, because of the
HAMP-PRA borrower’s failure to keep the
new mortgage loan in good standing, was
not ultimately discharged. The amended
return should be for the taxable year in
which the income was included (that is, the
year of the permanent modification), pro-
vided the applicable statute of limitations
remains open for that taxable year.
(ii) If the HAMP-PRA borrower did
not include any of the discharge of in-
2013–7 I.R.B.492February 11, 2013

debtedness in gross income (that is, if the
HAMP-PRA borrower excluded all of it),
theHAMP-PRAborrowermayfileanew
Form 982 that the Service will treat as su-
perseding the earlier Form 982. The new
Form 982 will reflect the revised reduc-
tion in basis or in tax attributes (under
§ 108(h)(1) or § 108(b)). The new Form
982 should be the Form 982 for the year of
the permanent modification and should be
filed with the return for the taxable year in
which the HAMP-PRA borrower’s mort-
gage loan ceased to be in good standing.
.04HAMP-PRA borrowers who choose
to treat the HAMP-PRA discharge as being
realized on the dates on which the unpaid
principal balance of the mortgage loan is
reduced.
(1) If a HAMP-PRA borrower chooses
to realize the HAMP-PRA discharge at the
times that the unpaid principal balance on
the new mortgage loan is reduced, instead
of at the time of the permanent modifi-
cation, then the HAMP-PRA borrower’s
federal income tax returns for the taxable
year that contains the permanent modi-
fication and for the subsequent taxable
years must not treat any of the discharge
as being realized at the time of the perma-
nent modification and must treat the entire
HAMP-PRA discharge as being realized
in the amounts—and at the times—of the
reductions in the unpaid principal balance.
Except as described in the last sentence of
this paragraph, therefore, the income tax
return for the year of the permanent mod-
ification must include no gross income
from—nor report on Form 982 an exclu-
sion of—any amount of the HAMP-PRA
discharge. Instead, the HAMP-PRA dis-
charge is included in gross income (or is
reported on Form 982 as excluded from
gross income) in the subsequent years in
which the unpaid principal balance is re-
duced. If the first such reduction occurs
in the year of the permanent modification,
however, then the amount of any such
reduction is reflected as an inclusion or
exclusion on the federal income tax return
for that year.
(2) A HAMP-PRA borrower who has
been using the method described in sec-
tion 6.02(1) of this revenue procedure may
change to the method described in sec-
tion 6.02(2) but must comply with the con-
sistency and open-year requirements de-
scribedinsection6.01ofthisrevenuepro-
cedure.
SECTION 7. PENALTY RELIEF FOR
2012
.01 The Service will not assert penal-
ties under § 6721 or § 6722 against an
investor for failing to timely file and fur-
nish a 2012 Form 1099-C as required by
section 5.03 through 5.04 and section 8.02
of this revenue procedure with respect to
discharge of indebtedness resulting from
HAMP-PRA permanent modifications
that take place during calendar year 2012
if the following requirements are satisfied:
(1) Not later than February 28, 2013, a
statement is sent to the HAMP-PRA bor-
rower containing the following:
(a) The HAMP-PRA borrower’s name,
address, and taxpayer identification num-
ber; and
(b) The date and amount of the dis-
charge of indebtedness (as described in
sections 4.01 through 4.04 of this revenue
procedure) that is required to be reported
for 2012.
(2) Not later than March 28, 2013, a
statement is sent to the Service. It must
be in the form of a single statement that
separately lists for each HAMP-PRA bor-
rower the information specified in section
7.01(1) of this revenue procedure. The
statement should be sent to the Service at
the following address:
Internal Revenue Service Center
Stop 6728AUSC
Austin, TX 73301
.02 The Service will not assert penalties
under § 6721 or § 6722 with respect to any
Forms 1099-MISC for 2012 that sections
5.06 and 8.02 of this revenue procedure
require to be filed with the Service and
furnished to taxpayers.
.03 Section 8.03 and 8.04 of this rev-
enue procedure, below, describes penalty
relief regarding Forms 1099-C and 1099-
MISC for 2010 and 2011.
SECTION 8. SCOPE AND EFFECTIVE
DATE
.01 This revenue procedure applies
to all borrowers, investors, and servicers
who participate, or have participated, in
the HAMP-PRA, regardless of when the
permanent modification occurs.
.02 Section 5 of this revenue procedure
is effective for Forms 1099-C and 1099-
MISC due or filed after January 24, 2013.
.03 Because of the effective date in sec-
tion 8.02 of this revenue procedure, an
investor is not subject to penalties under
§ 6721 or § 6722 on the grounds that the
investor failed to timely file and furnish a
2010 or 2011 Form 1099-C as described in
section 5.03 through 5.04 of this revenue
procedure (or on the grounds that the in-
vestor filed or furnished a 2010 or 2011
Form 1099-C that is inconsistent with sec-
tion 5.03 through 5.04 of this revenue pro-
cedure), provided that the investor demon-
strates a good faith attempt to comply with
the requirements of § 6050P and that the
failure was not due to willful neglect.
.04 Because of the effective date in
section 8.02 of this revenue procedure,
the Service will not assert penalties un-
der § 6721 or § 6722 on the grounds of a
failure to timely file and furnish a 2010
or 2011 Form 1099-MISC, as described in
section 5.06 of this revenue procedure.
SECTION 9. DRAFTING
INFORMATION
The principal authors of this revenue
procedure are Ronald J. Goldstein of the
Office of Chief Counsel (Procedure and
Administration); Shareen S. Pflanz and
Sheldon A. Iskow of the Office of Chief
Counsel (Income Tax and Accounting);
and Andrea M. Hoffenson of the Office
of Chief Counsel (Financial Institutions
and Products). For further information
regarding this revenue procedure, contact
Procedure and Administration branch
1 at (202) 622–4910, Income Tax and
Accounting branch 4 at (202) 622–4920,
or Financial Institutions and Products
branch 1 at (202) 622–3920 (not toll-free
calls).
February 11, 20134932013–7 I.R.B.

Part IV. Items o
fGeneralInterest
Notice of Prop
osed
Rulemaking an
dNoticeof
Public Hearin
g
IRS Truncated
Taxpayer
Identificat
ion Numbers
REG–148873–09
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Not
ice of proposed rulemaking
and notice o
f public hearing.
SUMMARY: This document contains pro-
posed regulations that create a new tax-
payer identifying number known as an IRS
truncated taxpayer identification number,
a TTIN. As an alternative to using a so-
cial security number (SSN), IRS individual
taxpayer identification number (ITIN), or
IRS adoption taxpayer identification num-
ber (ATIN), the filer of certain informa-
tion returns may use a TTIN on the cor-
responding payee statements to identify
the individual being furnished a statement.
The TTIN displays only the last four digits
of an individual’s identifying number and
is shown in the format XXX–XX–1234
or ***–**–1234. These proposed regu-
lations affect filers of certain information
returns who will be permitted to identify
an individual payee by use of a TTIN on
the payee statement furnished to the indi-
vidual, and those individuals who receive
payee statements containing a TTIN.
DATES: Written or electronic comments
must be received by February 21, 2013.
Outlines of topics to be discussed at the
public hearing scheduled for March 12,
2013 must be received by February 20,
2013.
ADDRE
SSES: Send submissions to:
CC:PA
:LPD:PR(REG–148873–09),
Room
5203, Internal Revenue Service, PO
Box 7
604, Ben Franklin Station, Wash-
ingt
on, DC 20044. Submissions may be
hand
delivered Monday through Friday
betw
een the hours of 8 a.m. and 4 p.m.
to: C
C:PA:LPD:PR (REG–148873–09),
Cou
rier’s Desk, Internal Revenue Ser-
vic
e, 1111 Constitution Avenue, NW,
Washington, D
C, 20224 or sent elec-
tronically, v
ia the Federal eRulemaking
Portal athttp
://www.regulations.gov(IRS
REG–148873–0
9). The public hearing
will be held in
the Internal Revenue
Service Audi
torium, Internal Revenue
Service, 111
1 Constitution Avenue, NW,
Washington,
DC 20224.
FOR FURTHER I
NFORMATION
CONTACT: Con
cerning the proposed
regulation
s, Tammie A. Geier, (202)
622–3620; c
oncerning submissions
of comments
, the public hearing,
and/or to be
placed on the building
access lis
t to attend the public
hearing, O
luwafunmilayo Taylor of the
Publicati
ons and Regulations Branch at
(202) 622–
7180 (not toll-free numbers).
SUPPLEMEN
TARY INFORMATION:
Backgroun
d
This docum
ent contains proposed
amendment
s to the Income Tax Regula-
tions (26
CFR Part 1) and the Procedure
and Admin
istration Regulations (26 CFR
Part 301)
. These amendments implement
the pilot
program announced in Notice
2009–93
, 2009–51 I.R.B. 863, extended
and modi
fied in Notice 2011–38, 2011–20
I.R.B. 7
85, which together authorized fil-
ers of ce
rtain information returns to trun-
cate an i
ndividual payee’s nine-digit iden-
tifyin
g number on specified paper payee
statem
ents furnished for calendar years
2009 th
rough 2012. See §601.601(d)(2).
The pil
ot program was implemented in
respon
se to concerns about the risk of iden-
tity th
eft stemming from the inclusion of
a taxpa
yer identifying number on a payee
state
ment. In particular, the risks of misap-
propr
iation and subsequent misuse of that
numbe
r were reported to be greatest with
respe
ct to paper payee statements.
I.Inf
ormation Reporting
Infor
mation returns are returns, state-
ments
,forms,orotherdocumentsthat
must b
e filed with the IRS to report trans-
acti
ons (for example, payments, distribu-
tion
s, or transfers) with another person
in a c
alendar year. Section 6724(d)(1);
Trea
s. Reg. §301.6721–1(g)(1). Per-
sons
required to file information returns
with the IRS ar
e filers. Treas. Reg.
§301.6721–1(
g)(6). Generally, filers must
furnish a stat
ement to the person on the
other side of t
he transaction — the payee
— containing t
he information shown
on the inform
ation return filed with the
IRS. See Trea
s. Reg. §301.6721–1(g)(5)
(defining “p
ayee” for purposes of sec-
tions 6721 an
d 6722). The payee may be
the recipie
nt of a payment (as referred to
onCopyBofF
orm 1099-MISC,“Mis-
cellaneous
Income”), a plan participant
receiving d
istributions (as referred to on
Copy B of Fo
rm 1099-R,“Distributions
from Pensi
ons, Annuities, Retirement or
Profit-Sh
aring Plans, IRAs, Insurance
Contracts
,Etc.”), a transferor selling or
exchangin
g real estate (as referred to on
Copy B of F
orm 1099-S,“Proceeds from
Real Esta
te Transactions”), a payer/bor-
rower mak
ing interest payments (as re-
ferred to
on Copy B of Form 1098,“Mort-
gage Int
erest Statement”), a debtor whose
debt was
discharged, canceled or forgiven
(as refe
rred to on Copy B of Form 1099-C,
“Cancel
lation of Debt”), or a student re-
ceiving
scholarships, grants or qualified
tuitio
n (as referred to on Copy B of Form
1098-T
,“Tuition Statement”). The state-
ment fu
rnished to the payee is referred to
as a pay
ee statement. Section 6724(d)(2);
Treas.
Reg. §301.6722–1(d)(2). In certain
circu
mstances, persons required to file in-
forma
tion returns may file substitute forms
with t
he IRS and furnish substitute form
state
ments to payees rather than use the
offic
ial IRS forms. Rev. Proc. 2011–60.
See §
601.601(d)(2).
II.Ta
xpayer Identifying Numbers
Sectio
n 6011(a) requires, in part, that
every p
erson required to make a return
or stat
ement shall include therein the
infor
mation required by forms or regula-
tions
. Regulations, forms, or instructions
to for
ms may require that the filer of an
infor
mation return include the identifying
numbe
r of the payee on the corresponding
paye
e statement.
Secti
on 6109(a) authorizes the Secre-
tary
to prescribe regulations with respect
to th
e inclusion in returns, statements, or
othe
r documents of an identifying number
as ma
y be prescribed for securing proper
iden
tification of a person. A taxpayer
2013–7 I.R.B.494February 11, 2013

identifying number is also referred to as
a TIN, which section 7701(a)(41) defines
as the identifying number assigned to a
person under section 6109.
Section 6109(a)(3) generally provides
that any person required to make a re-
turn, statement, or other document with re-
spect to another person shall request from
the other person, and shall include in the
return, statement, or other document, the
identifying number as may be prescribed
for securing proper identification of the
other person. Thus, for information report-
ing purposes, a filer of an information re-
turn must request a TIN from the payee and
include the TIN on the information return.
Flush language in section 6109(a)
states that the identifying number of an
individual (or the individual’s estate) is
the individual’s social security account
number. Section 6109(d) provides that,
except as otherwise specified under regu-
lations, the social security account number
issued to an individual under the Social
Security Act is the identifying number
for individuals for purposes of the Code.
Regulations provide that the principal
types of taxpayer identifying numbers are
SSNs, ITINs, ATINs, and employer iden-
tification numbers (EINs). Treas. Reg.
§301.6109–1(a)(1)(i). SSNs, ITINs, and
ATINs are used to identify individuals.
Treas. Reg. §301.6109–1(a)(1)(ii). An
EIN is used to identify an individual or
other person (whether or not an employer).
Treas. Reg. §301.7701–12.
Summary of Comments
Comments received in response to the
notices, and other feedback from the payor
community, reflect that filers’ participa-
tion in the pilot was positive. Some fil-
ers, however, noted a few limitations that
prevented participation. Several commen-
tators suggested expanding the pilot pro-
gram by recommendingthat truncation be
authorized on a greater number of payee
statements, that truncation be permitted on
electronically furnished payee statements,
and that filers be permitted to truncate an
individual payee’s EIN in addition to the
other types of taxpayer identifying num-
bers (SSNs, ITINs, and ATINs) included
in the pilot program. A permanent volun-
tary program was encouraged, rather than
a mandatory program. Other commenta-
tors suggested that taxpayers could be ad-
versely affected by the truncation of their
identifying numbers on payee statements
due to the inability to identify errors in
the first five masked digits. Also, some
state tax authorities stated that the trun-
cation of taxpayer identifying numbers on
Federal payee statements that are attached
to state income tax returns might hamper
state income tax processing. The Trea-
sury Department and the IRS gave serious
consideration to the state government con-
cerns, but concluded that truncation is un-
likely to hamper state income tax return
processing significantly because the vast
majority of payee statements attached to
state returns are Forms W–2, which are not
subject to the truncation program, and be-
cause payee information is available to the
states through data sharing programs with
the Federal government.
All comments were considered in de-
veloping the regulations that, as proposed,
create a permanent truncation program.
The proposed regulations expand the
scope of the pilot program so that fil-
ers are permitted to use TTINs on payee
statements furnished by electronic means.
With regard to including a greater number
of payee statements, the pilot program
and, therefore, the proposed regulations
are limited in scope by statute. For exam-
ple, section 6051(a)(2) requires that the
written statement furnished to employees
(Form W–2,“WageandTaxStatement”)
show the name of the employee “and his
social security account number.” Accord-
ingly, these proposed regulations do not
expand the number of payee statements
included beyond those included in the pi-
lot program.
Some commentators reported that the
inability to truncate a payee’s EIN on a
payee statement resulted in their inability
to participate in the pilot program. As
described in the comments, some filers
could not differentiate the type of identi-
fying number assigned to a payee and/or
could not differentiate numbers belong-
ing to individuals. As explained in the
comments, the affected filers, because of
software limitations, could either truncate
all payee identifying numbers, including
EINs (whether assigned to an individual or
a corporation, for example), or none at all.
The IRS believes the misuse of EINs is less
frequently an element of identity theft. As
these regulations are proposed in response
to the risk of identity theft stemming from
the inclusion of an individual’s taxpayer
identifying number on a payee statement,
these proposed regulations do not permit
truncation for numbers that may be as-
signed to taxpayers other than individuals.
The IRS seeks further comments regard-
ing the number of filers who are unable to
differentiate EINs from payee identifying
numbers belonging to individuals and the
feasibility of making software changes to
address this issue.
Some commentators explained that
their systems could not readily accommo-
date truncation (as exemplified above with
respect to EINs) and that filers of infor-
mation returns have varying volume and
procedures. Accordingly, participation in
the truncation program proposed by the
regulations is voluntary.
Explanation of Provisions
These proposed regulations create and
allow filers of certain information returns
to use an IRS truncated taxpayer identifi-
cation number, a TTIN, to identify individ-
uals on the payee statements correspond-
ing to those information returns. The pro-
posed regulations provide that the TTIN
maybeusedinlieuofapayee’sSSN,
ATIN, or ITIN, but use of a TTIN is not
mandatory.ATTINmaybeusedonlyona
payee statement and may be used on payee
statements furnished by paper or electronic
means. A filer may not use a TTIN on
an information return filed with the IRS.
A filer may not truncate its own identi-
fying number on information returns or
payee statements. A filer may not truncate
a payee’s EIN under the proposed regula-
tions.
The payee statements on which TTINs
may be included are the same statements
included in the current pilot program in
Notice 2011–38. The current pilot pro-
gram includes all statements in the Forms
1099, 1098, and 5498 series, with the ex-
ception of Form 1098-C,Contributions of
Motor Vehicles, Boats, and Airplanes,be-
cause that form is not a payee statement but
an “acknowledgement.” Any subsequent
changes to the list will appear in published
guidance.
These proposed regulations also amend
certain existing regulations under sections
6042, 6043, 6044, 6045, 6049, 6050A,
6050E, 6050N, 6050P, and 6050S to
specifically authorize the use of TTINs on
February 11, 20134952013–7 I.R.B.

payee statements furnished under those
sections. Those regulations set forth re-
quirements for payee statements that could
be read as inconsistent with the use of
TTINs to identify payees, in some cases
requiring that the payee be furnished a
copy of the information return filed with
the IRS. Other information reporting reg-
ulations that do not contain provisions
contradictory to the use of TTINs are not
being updated in these proposed regula-
tions.
Many of the regulations governing the
furnishing of payee statements do not pro-
vide for the use of substitute statements.
These regulations are not being revised to
address substitute statements at this time.
For information regarding substitute state-
ments, see Rev. Proc. 2011–60, 2011–52
I.R.B. 934 (or its successor), republished
as Publication 1179,“General Rules and
Specifications for Substitute Forms 1096,
1098, 1099, 5498, and Certain Other In-
formation Returns.”Rev. Proc. 2011–60
also contains rules for electronic delivery
of payee statements. Provisions relating
to the use of TTINs inelectronically fur-
nished payee statements, if any, will be in-
cluded in successor revenue procedures to
Rev. Proc. 2011–60. See §601.601(d)(2).
Proposed Effective and Applicability
Dates
These regulations are proposed to take
effect when published in theFederal Reg-
isteras final regulations. The rules in
these proposed regulations may be relied
upon by the affected filers before the pub-
lication of the Treasury decision.
Effect on Other Documents
The following publication will be obso-
lete as of the date this notice of proposed
rulemaking is published as final regula-
tions in theFederal Register:
Notice 2011–38, 2011–20 I.R.B. 785.
Special Analyses
It has been determined that these reg-
ulations are not a significant regulatory
action as defined in Executive Order
12866, as supplemented by Executive
Order 13563. Therefore, a regulatory
assessment is not required. It also has
been determined thatsection 553(b) of the
Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these reg-
ulations and, because the regulations do
not impose a collection of information on
small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply.
Pursuant to section 7805(f), these regu-
lations have been submitted to the Chief
Counsel for Advocacy of the Small Busi-
ness Administration for comment on their
impact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any written (a signed origi-
nal and eight (8) copies) or electronic com-
ments that are submitted timely to the IRS.
The Treasury Department and the IRS re-
quest comments on all aspects of the pro-
posed regulations. The Treasury Depart-
ment and the IRS specifically request com-
ments on issues encountered by filers and
payees alike, whether filers should be per-
mitted to truncate a payee’s EIN and, if so,
why and whether truncation should be per-
mitted on additional types of payee state-
ments. The Treasury Department and the
IRS further request that filers provide de-
tails as to whether the exclusion of EINs
from these regulations prevents them from
using TTINs at all. All comments submit-
ted by the public will be made available for
public inspection and copying.
A public hearing has been scheduled for
March 12, 2013 beginning at 10:00 a.m., in
the Internal Revenue Service Auditorium,
Internal Revenue Service, 1111 Constitu-
tion Avenue, NW, Washington, DC 20224.
Due to building security procedures, vis-
itors must enter through the Constitution
Avenue entrance. In addition, all visitors
must present photo identification to enter
the building. Because of access restric-
tions, visitors will not be admitted beyond
the immediate entrance area more than 30
minutes before the hearing starts. For in-
formation about having your name placed
on the building access list to attend the
hearing, see the FOR FURTHER INFOR-
MATION CONTACT section of this pre-
amble.
The rules of 26 CFR 601.601(a)(3) ap-
ply to the hearing. Persons who wish to
present oral comments at the hearing must
submit written or electronic comments by
February 21, 2013 and an outline of the
topics to be discussed and the time to be
devoted to each topic (a signed original
and eight (8) copies) by February 20, 2013.
A period of ten minutes will be allotted
to each person for making comments. An
agenda showing the scheduling of speak-
ers will be prepared after the deadline for
receiving outlines has passed. Copies of
theagendawillbeavailablefreeofcharge
at the hearing.
Drafting Information
The principal author of these regula-
tions is Tammie A. Geier of the Office
of the Associate Chief Counsel (Procedure
and Administration).
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 301
are proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The general authority cita-
tion for part 1 continues to read as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.6042–4 is amended by
revising paragraph (b) to read as follows:
§1.6042–4 Statements to recipients of
dividend payments.
*****
(b)Form and content of the statement.
The statement required by paragraph (a)
of this section must be either the official
Form 1099 prescribed by the Internal Rev-
enue Service for the respective calendar
year or an acceptable substitute statement
that contains provisions that are substan-
tially similar to those of the official Form
1099 for the respective calendar year.
For further guidance on how to prepare
an acceptable substitute statement, see
Rev. Proc. 2011–60 (or its successor) re-
published as Publication 1179,“General
Rules and Specifications for Substitute
Forms 1096, 1098, 1099, 5498, and Cer-
tain Other Information Returns.”See
§601.601(d)(2) of this chapter. An IRS
truncated taxpayer identifying number
(TTIN) may be used as the identifying
number for an individual recipient. For
provisions relating to the use of TTINs,
see §301.6109–4 of this chapter (Proce-
dure and Administration Regulations).
2013–7 I.R.B.496February 11, 2013

*****
Par. 3. Section 1.6043–4 is amended
by adding two new sentences to the end of
paragraph (b)(4) to read as follows:
§1.6043–4 Information returns relating
to certain acquisitions of control and
changes in capital structure.
*****
(b) * * *
(4) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for an individ-
ual shareholder in lieu of the identifying
number appearing on the Form 1099-CAP
filed with the Internal Revenue Service.
For provisions relating to the use of TTINs,
see §301.6109–4 of this chapter (Proce-
dure and Administration Regulations).
*****
Par. 4. Section 1.6044–5 is amended
by adding two new sentences to the end of
paragraph (b) to read as follows:
§1.6044–5 Statements to recipients of
patronage dividends.
*****
(b) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for an individual
recipient in lieu of the identifying number
appearing on the corresponding informa-
tion return filed with the Internal Revenue
Service. For provisions relating to the use
of TTINs, see §301.6109–4 of this chap-
ter (Procedure and Administration Regula-
tions).
*****
Par. 5. Section 1.6045–2 is amended
by adding two new sentences to the end of
paragraph (c) to read as follows:
§1.6045–2 Furnishing statement required
with respect to certain substitute
payments.
*****
(c) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for an individual
customer in lieu of the identifying number
appearing on the information return filed
with the Internal Revenue Service. For
provisions relating to the use of TTINs,
see §301.6109–4 of this chapter (Proce-
dure and Administration Regulations).
*****
Par. 6. Section 1.6045–3 is amended
by adding two new sentences to the end of
paragraph (e)(1) to read as follows:
§1.6045–3 Information reporting for an
acquisition of control or a substantial
change in capital structure.
*****
(e) * * *
(1) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for an individual
customer. For provisions relating to the
use of TTINs, see §301.6109–4 of this
chapter (Procedure and Administration
Regulations).
*****
Par. 7. Section 1.6045–4 is amended
by revising paragraph (m)(1) to read as
follows:
§1.6045–4 Information reporting on real
estate transactions with dates of closing
on or after January 1, 1991.
*****
(m) * * *
(1)(i)Requirement of furnishing state-
ments. A reporting person who is required
to make a return of information under para-
graph (a) of this section shall furnish to
the transferor whose TIN is required to be
shown on the return a written statement of
theinformationrequiredtobeshownon
such return. The written statement must
bear either the legend shown on the recip-
ient copy of Form 1099 or the following:
This is important tax information and is be-
ing furnished to the Internal Revenue Ser-
vice. If you are required to file a return, a
negligence penalty or other sanction may
be imposed on you if this item is required
to be reported and the IRS determines that
it has not been reported.
(ii) This requirement may be satisfied
by furnishing to the transferor a copy of a
completed Form 1099 (or substitute Form
1099 that complies with current revenue
procedures). An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for an individual
transferor in lieu of the identifying number
appearing on the information return filed
with the Internal Revenue Service. For
provisions relating to the use of TTINs,
see §301.6109–4 of this chapter (Proce-
dure and Administration Regulations).
(iii) In the case of a real estate transac-
tion for which a Uniform Settlement State-
ment is used, this requirement also may
be satisfied by furnishing to the transferor
a copy of a completed statement that is
modified to comply with the requirements
of this paragraph (m), and by designating
on the Uniform Settlement Statement the
items of information (such as gross pro-
ceeds or allocated gross proceeds) required
to be set forth on the Form 1099. For pur-
poses of this paragraph (m), a statement
shall be considered furnished to a trans-
feror if it is given to the transferor in per-
son, either at the closing or thereafter, or is
mailed to the transferor at the transferor’s
last known address.
*****
Par. 8. Section 1.6045–5 is amended
by adding two sentences before the last
sentence of paragraph (a)(3)(i) to read as
follows:
§1.6045–5 I
nformation reporting on
payments t
o attorneys.
(a) * * *
(3) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for an individual
attorney in lieu of the identifying number
appearing on the information return filed
with the Internal Revenue Service. For
provisions relating to the use of TTINs, see
§301.6109–4 of this chapter (Procedure
and Administration Regulations). * * *
*****
Par. 9. Section 1.6049–6 is amended by
adding paragraph (b)(3) to read as follows:
§1.6049–6 Statements to recipients
of interest payments and holders of
obligations for attributed original issue
discount.
*****
(b) * * *
(3) With respect to both statements
to persons receivingpayments of inter-
est and persons holding obligations, the
statement shall include the name, address,
and taxpayer identifying number of such
person. An IRS truncated taxpayer iden-
tifying number (TTIN) may be used as
February 11, 20134972013–7 I.R.B.

the identifying number for an individual
person. For provisions relating to the use
of TTINs, see §301.6109–4 of this chapter
(Procedure and Administration Regula-
tions).
*****
Par. 10. Section 1.6050A–1 is amended
by adding two sentences to the end of para-
graph (c)(1) to read as follows:
§1.6050A–1 Reporting requirements of
certain fishing boat operators.
*****
(c) * * *
(1) * * * An IRS truncated taxpayer
identifyingnumber(TTIN)maybeusedas
the identifying number for the individual
in lieu of the identifying number appear-
ingontheinformationreturnfiledwith
the Internal Revenue Service. For pro-
visions relating to the use of TTINs, see
§301.6109–4 of this chapter (Procedure
and Administration Regulations).
*****
Par. 11. Section 1.6050E–1 is amended
by adding two sentences to the end of para-
graph (k)(1) to read as follows:
§1.6050E–1 Reporting of State and local
income tax refunds.
*****
(k) * * *
(1) * * * An IRS truncated taxpayer
identifyingnumber(TTIN)maybeusedas
the identifying number for the individual
in lieu of the identifying number appear-
ingontheinformationreturnfiledwith
the Internal Revenue Service. For pro-
visions relating to the use of TTINs, see
§301.6109–4 of this chapter (Procedure
and Administration Regulations).
*****
Par. 12. Section 1.6050N–1 is amended
by adding two sentences to the end of para-
graph (b) to read as follows:
§1.6050N–1 Statements to recipients of
royalties paid after December 31, 1986.
*****
(b) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the identifying number for an individual
recipient. For provisions relating to the use
of TTINs, see §301.6109–4 of this chap-
ter (Procedure and Administration Regula-
tions).
*****
Par. 13. Section 1.6050P–1 is amended
by:
a. Removing “section;” from paragraph
(f)(1)(i) and adding “section.” in its place;
and
b. Adding two sentences to the end of
paragraph (f)(1)(i) to read as follows:
§1.6050P–1 Information reporting for
discharges of indebtedness by certain
entities.
*****
(f) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the TIN of an individual for whom
there was an identifiable event in lieu of
the identifying number appearing on the
information return filed with the Internal
Revenue Service. For provisions relating
to the use of TTINs, see §301.6109–4 of
this chapter (Procedure and Administra-
tion Regulations);
*****
Par. 14. Section 1.6050S–1 is amended
by:
a. Removing “section;” from paragraph
(c)(1)(i) and adding “section.” in its place;
and
b. Adding two sentences to the end of
paragraph (c)(1)(i) to read as follows:
§1.6050S–1 Information reporting for
qualified tuition and related expenses.
*****
(c)***
(1) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the TIN for the individual in lieu of
the identifying number appearing on the
information return filed with the Internal
Revenue Service. For provisions relating
to the use of TTINs, see §301.6109–4 of
this chapter (Procedure and Administra-
tion Regulations);
*****
Par. 15. Section 1.6050S–3 is amended
by:
a. Removing “section;” from paragraph
(d)(1)(i) and adding “section.” in its place;
and
b. Adding two sentences to the end of
paragraph (d)(1)(i) to read as follows:
§1.6050S–3 Information reporting
for payments of interest on qualified
education loans.
*****
(d) * * *
(1) * * *
(i) * * * An IRS truncated taxpayer
identifying number (TTIN) may be used
as the TIN for the individual payor in lieu
of the identifying number appearing on the
information return filed with the Internal
Revenue Service. For provisions relating
to the use of TTINs, see §301.6109–4 of
this chapter (Procedure and Administra-
tion Regulations).
*****
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 16. The authority citation for part
301 continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 17. Section 301.6109–4 is added
to read as follows:
§301.6109–4 IRS truncated taxpayer
identification numbers.
(a)In general—(1)Definition.An
IRS truncated taxpayer identification
number (TTIN) is an individual’s social
security number (SSN), IRS individual
taxpayer identification number (ITIN), or
IRS adoption taxpayer identification num-
ber (ATIN) that is truncated by replacing
the first five digits of the nine-digit num-
ber with Xs or asterisks. The TTIN is
shown in the format XXX-XX–1234 or
***-**-1234.
(2)Use of a TTIN. (i) A TTIN may be
used by a filer of certain information re-
turns to identify an individual on the cor-
responding payee statement furnished to
the individual, as authorized by regula-
tions, forms or form instructions, or other
guidance published by the Internal Rev-
enue Service. A TTIN may not be used
on payee statements corresponding to the
Form W–2 series, the Form 1098-C (Con-
tributions of Motor Vehicles, Boats, and
2013–7 I.R.B.498February 11, 2013

Airplanes), or where identification of a
taxpayer by an SSN, ITIN, or ATIN is
mandated by statute.
(ii) A TTIN cannot be used by a filer
on any information return filed with the
Internal Revenue Service.
(iii) A TTIN may only be used for iden-
tifying individuals assigned SSNs, ITINs,
or ATINs.
(iv) A filer may not truncate its own
taxpayer identifying number on any doc-
ument.
(v) Use of a TTIN is permissive and not
mandatory.
(b)Definitions—(1)Filer.Afiler
means a person who is required to report
a transaction to the Internal Revenue Ser-
vice on an information return.
(2)Information return.Aninforma-
tion returnmeans the returns, statements,
forms, or other documents that businesses
must file with the Internal Revenue Ser-
vice to report transactions with other per-
sons.
(3)Payee statement.Apayee statement
means the copy of the information set forth
on an information return filed with the IRS
that is furnished to the individual payee, re-
cipient, participant, transferor, payer/bor-
rower, debtor, or student, depending upon
the specific reporting requirements.
(c)Effective/applicability date.This
section applies after the date of publication
of the Treasury decision adopting these
rules as final regulations in theFederal
Register. The rules in these proposed reg-
ulations may be relied upon by the affected
filers prior to the publication of final regu-
lations.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
(Filed by the Office of the Federal Register on January 2,
2013, 4:15 p.m., and published in the issue of the Federal
Register for January 7, 2013, 78 F.R. 913)
February 11, 20134992013–7 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.
2013–7 I.R.B.iFebruary 11, 2013

Numerical Finding List
1
Bulletins 2013–1 through 2013–7
Announcements:
2013-1, 2013-1 I.R.B.251
2013-2, 2013-2 I.R.B.271
2013-3, 2013-2 I.R.B.271
2013-4, 2013-4 I.R.B.440
2013-5, 2013-3 I.R.B.306
2013-6, 2013-3 I.R.B.307
2013-7, 2013-3 I.R.B.308
2013-8, 2013-4 I.R.B.440
2013-9, 2013-4 I.R.B.441
2013-10, 2013-3 I.R.B.311
2013-11, 2013-6 I.R.B.483
Notices:
2013-1, 2013-3 I.R.B.281
2013-2, 2013-6 I.R.B.473
2013-3, 2013-7 I.R.B.484
2013-7, 2013-6 I.R.B.477
2013-8, 2013-7 I.R.B.486
Proposed Regulations:
REG-141066-09, 2013-3 I.R.B.289
REG-148873-09, 2013-7 I.R.B.494
REG-122707-12, 2013-5 I.R.B.450
Revenue Procedures:
2013-1, 2013-1 I.R.B.1
2013-2, 2013-1 I.R.B.92
2013-3, 2013-1 I.R.B.113
2013-4, 2013-1 I.R.B.126
2013-5, 2013-1 I.R.B.170
2013-6, 2013-1 I.R.B.198
2013-7, 2013-1 I.R.B.233
2013-8, 2013-1 I.R.B.237
2013-9, 2013-2 I.R.B.255
2013-10, 2013-2 I.R.B.267
2013-11, 2013-2 I.R.B.269
2013-12, 2013-4 I.R.B.313
2013-13, 2013-6 I.R.B.478
2013-14, 2013-3 I.R.B.283
2013-15, 2013-5 I.R.B.444
2013-16, 2013-7 I.R.B.488
Revenue Rulings:
2013-1, 2013-2 I.R.B.252
Treasury Decisions:
9603, 2013-3 I.R.B.273
9607, 2013-6 I.R.B.469
9608, 2013-3 I.R.B.274
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin
2012–52, dated December 27, 2012.
February 11, 2013ii2013–7 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–1 through 2013–7
Notices:
2011-14
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2011-38
Obsoleted by
REG-148873-09, 2013-7 I.R.B.494
2012-60
Superseded by
Notice 2013-1, 2013-3 I.R.B.281
Proposed Regulations:
REG-140668-07
Corrected by
Ann. 2013-6, 2013-3 I.R.B.307
Revenue Procedures:
87-57
Modified by
Rev. Proc. 2013-13, 2013-6 I.R.B.478
2004-66
Modified and superseded by
Rev. Proc. 2013-11, 2013-2 I.R.B.269
2008-35
Modified and superseded by
Rev. Proc. 2013-14, 2013-3 I.R.B.283
2008-50
Modified and superseded by
Rev. Proc. 2013-12, 2013-4 I.R.B.313
2011-49
Modified by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2011-52
Modified and partly superseded by
Rev. Proc. 2013-15, 2013-5 I.R.B.444
2011-55
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2012-1
Superseded by
Rev. Proc. 2013-1, 2013-1 I.R.B.1
2012-2
Superseded by
Rev. Proc. 2013-2, 2013-1 I.R.B.92
2012-3
Superseded by
Rev. Proc. 2013-3, 2013-1 I.R.B.113
Revenue Procedures— Continued:
2012-4
Superseded by
Rev. Proc. 2013-4, 2013-1 I.R.B.126
2012-5
Superseded by
Rev. Proc. 2013-5, 2013-1 I.R.B.170
2012-6
Superseded by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2012-7
Superseded by
Rev. Proc. 2013-7, 2013-1 I.R.B.233
2012-8
Superseded by
Rev. Proc. 2013-8, 2013-1 I.R.B.237
2012-9
Superseded by
Rev. Proc. 2013-9, 2013-2 I.R.B.255
2012-10
Superseded by
Rev. Proc. 2013-10, 2013-2 I.R.B.267
2012-30
Corrected and clarified by
Ann. 2013-3, 2013-2 I.R.B.271
Updated by
Ann. 2013-10, 2013-3 I.R.B.311
2012-46
Corrected by
Ann. 2013-11, 2013-6 I.R.B.483
2013-1
Corrected by
Ann. 2013-9, 2013-4 I.R.B.441
Treasury Decisions:
9564
Corrected by
Ann. 2013-4, 2013-4 I.R.B.440
Amended by
Ann. 2013-7, 2013-3 I.R.B.308
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin 2012–52, dated December 27,
2012.
2013–7 I.R.B.iiiFebruary 11, 2013

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