Internal Revenue Bulletin 2023-2 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2023–2
January 9, 2023
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.
ADMINISTRATIVE
Announcement 2023-2, page 344.
Section 80603 of the Infrastructure and Investment and
Jobs Act, Pub. L. No. 117-58, 135 Stat. 429, 1339 (2021)
clarifies and expands the rules regarding the reporting of
information on digital assets by brokers under sections 6045
and 6045A of the Internal Revenue Code. The announcement
clarifies that until the IRS issues new final regulations under
section 80603 with respect to section 6045, a broker may
continue to report gross proceeds and basis as required un-
der existing law and regulations. In addition, until the IRS is-
sues new final regulations under section 80603 with respect
to section 6045A, a broker may continue to issue statements
on transfers of covered securities as required under existing
law and regulations. Brokers will not be required to report
additional information with respect to dispositions of digital
assets, issue additional statements, or report to the IRS on
transfers of digital assets until those new final regulations
under sections 6045 and 6045A are issued.
Notice 2023-8, page 341.
This notice provides additional guidance for brokers to com-
ply with the provisions of the final regulations under section
1446(f) (and certain provisions of the final regulations that
apply to section 1446(a)) (final regulations) that relate to
withholding on the transfer of an interest in a publicly traded
partnership (PTP interest). The Department of the Treasury
(Treasury Department) and the Internal Revenue Service (IRS)
intend to issue proposed regulations that would amend the
final regulations to implement this additional guidance.
ADMINISTRATIVE, INCOME TAX
Rev. Rul. 2023-1, page 309.
Federal rates; adjusted federal rates; adjusted federal long-
term rate, and the long-term tax exempt rate. For purposes of
sections 382, 1274, 1288, 7702(f)(11), 7872 and other sec-
tions of the Code, tables set forth the rates for January 2023.
T. D. 9970, page 311.
This document includes final regulations under the Inter-
nal Revenue Code that provide an automatic extension of
time for providers of minimum essential coverage (including
health insurance issuers, self-insured employers, and gov-
ernment agencies) to furnish individual statements regarding
such coverage and an alternative method for furnishing indi-
vidual statements when the individual shared responsibility
payment amount is zero. The final regulations also provide an
automatic extension of time for “applicable large employers”
(generally employers with 50 or more full-time employees, in-
cluding full-time equivalent employees) to furnish statements
relating to health insurance that the applicable large employ-
ers offer to their full-time employees. Additionally, the final
regulations provide that “minimum essential coverage,” as
that term is used in health insurance-related tax laws, does
not include Medicaid coverage limited to COVID-19 testing
and diagnostic services provided under the Families First
Coronavirus Response Act. The final regulations affect some
taxpayers who claim the premium tax credit; health insur-
ance issuers, self-insured employers, government agencies,
and other persons that provide minimum essential coverage
to individuals; and applicable large employers.
EMPLOYEE PLANS
Notice 2023-5, page 324.
This notice sets forth updates on the corporate bond month-
ly yield curve, the corresponding spot segment rates for
December 2022 used under § 417(e)(3)(D), the 24-month
average segment rates applicable for December 2022, and
the 30-year Treasury rates, as reflected by the application of
§ 430(h)(2)(C)(iv).
EMPLOYEE PLANS, EXCISE TAX
Notice 2023-4, page 321.
This notice provides the indexing factors to be used by
group health plans and health insurance issuers to cal-
Finding Lists begin on page ii.

culate the qualifying payment amount (QPA) for items or
services provided on or after January 1, 2023, and be-
fore January 1, 2024. The No Surprises Act (NSA) added
parallel provisions at Code sections 9816 and 9817, ER-
ISA sections 716 and 717, and PHS Act sections 2799A-
1 and 2799A-2. These provisions provide protections
against balance-billing for certain out-of-network items or
services provided to patients. The QPA is the basis for
determining individual cost sharing for items and services
covered by the balance-billing protections in the NSA, un-
der certain circumstances. The QPA for a given calen-
dar year is based on information regarding median rates
for certain items and services from prior years and is
indexed based on changes in the consumer price index.
EXCISE TAX, INCOME TAX
Notice 2023-6, page 328.
Notice 2023-6 provides guidance on the new sustain-
able aviation fuel credits under §§ 40B and 6426(k) of
the Internal Revenue Code and related credit and pay-
ment rules under §§ 34(a)(3), 38, 87, and 6427(e)(1).
This notice also provides rules related to the § 4101
registration requirements. Finally, this notice requests
comments from the public related to the SAF credit to
assist the Department of the Treasury and the Internal
Revenue Service in developing additional guidance on
the SAF credit in the future.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
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,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management 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 rul-
ings 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.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal 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,
Legislation 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
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and 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 contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
January 9, 2023 Bulletin No. 2023–2

Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)
Rev. Rul. 2023-1
This revenue ruling provides various
prescribed rates for federal income tax pur-
poses for January 2023 (the current month).
Table 1 contains the short-term, mid-term,
and long-term applicable federal rates
(AFR) for the current month for purposes
of section 1274(d) of the Internal Revenue
Code. Table 2 contains the short-term, mid-
term, and long-term adjusted applicable
federal rates (adjusted AFR) for the current
month for purposes of section 1288(b). Ta-
ble 3 sets forth the adjusted federal long-
term rate and the long-term tax-exempt
rate described in section 382(f). Table 4
contains the appropriate percentages for
determining the low-income housing cred-
it described in section 42(b)(1) for build-
ings placed in service during the current
month. However, under section 42(b)(2),
the applicable percentage for non-federally
subsidized new buildings placed in service
after July 30, 2008, shall not be less than
9%. Table 5 contains the federal rate for de-
termining the present value of an annuity,
an interest for life or for a term of years,
or a remainder or a reversionary interest
for purposes of section 7520. Table 6 con-
tains the deemed rate of return for transfers
made during calendar year 2023 to pooled
income funds described in section 642(c)
(5) that have been in existence for less
than 3 taxable years immediately preced-
ing the taxable year in which the transfer
was made. Finally, Table 7 contains the
average of the applicable federal mid-term
rates (based on annual compounding) for
the 60-month period ending December 31,
2022, for purposes of section 7702(f)(11).
REV. RUL. 2023-1 TABLE 1
Applicable Federal Rates (AFR) for January 2023
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR4.50%4.45%4.43%4.41%
110% AFR4.96%4.90%4.87%4.85%
120% AFR5.41%5.34%5.30%5.28%
130% AFR5.87%5.79%5.75%5.72%
Mid-term
AFR3.85%3.81%3.79%3.78%
110% AFR 4.23%4.19%4.17%4.15%
120% AFR4.62%4.57%4.54%4.53%
130% AFR5.01%4.95%4.92%4.90%
150% AFR5.80%5.72%5.68%5.65%
175% AFR6.78%6.67%6.62%6.58%
Long-term
AFR3.84%3.80%3.78%3.77%
110% AFR4.22%4.18%4.16%4.14%
120% AFR4.61%4.56%4.53%4.52%
130% AFR5.00%4.94%4.91%4.89%
REV. RUL. 2023-1 TABLE 2
Adjusted AFR for January 2023
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR3.41%3.38%3.37%3.36%
Mid-term adjusted AFR2.91%2.89%2.88%2.87%
Long-term adjusted AFR2.91%2.89%2.88%2.87%
Bulletin No. 2023–2 309 January 9, 2023

REV. RUL. 2023-1 TABLE 3
Rates Under Section 382 for January 2023
Adjusted federal long-term rate for the current month2.91%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal
long-term rates for the current month and the prior two months.)
3.29%
REV. RUL. 2023-1 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for January 2023
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after
July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.89%
Appropriate percentage for the 30% present value low-income housing credit 3.38%
REV. RUL. 2023-1 TABLE 5
Rate Under Section 7520 for January 2023
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a
remainder or reversionary interest
4.6%
REV. RUL. 2023-1 TABLE 6
Deemed Rate for Transfers to New Pooled Income Funds During 2023
Deemed rate of return for transfers during 2023 to pooled income funds that have been in existence for
less than 3 taxable years
2.2%
REV. RUL. 2023-1 TABLE 7
Average of the Applicable Federal Mid-Term Rates for 2022
For purposes of section 7702(f)(11), the average of the applicable federal mid-term rates (based on annual compounding) for the
60-month period ending December 31, 2022, is 1.85%, rounded to 2%.
Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
January 2023. See Rev. Rul. 2023-1, page 309.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
January 2023. See Rev. Rul. 2023-1, page 309.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and Certain
Built-In Losses Following
Ownership Change
The adjusted applicable federal long-term rate
is set forth for the month of January 2023. See Rev.
Rul. 2023-1, page 309.
Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
January 2023. See Rev. Rul. 2023-1, page 309.

January 9, 2023 310 Bulletin No. 2023–2

Bulletin No. 2023–2 311 January 9, 2023
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of January 2023. See Rev. Rul.
2023-1, page 309.
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
January 2023. See Rev. Rul. 2023-1, page 309.
Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
January 2023. See Rev. Rul. 2023-1, page 309.
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term,
mid-term, and long-term rates are set forth for the
month of January 2023. See Rev. Rul. 2023-1, page
309.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of January 2023. See Rev. Rul.
2023-1, page 309.
Section 7872.—Treatment
of Loans With Below-
Market Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
January 2023. See Rev. Rul. 2023-1, page 309.

26 CFR 1.6055-1 Information reporting for mini-
mum essential coverage
TD 9970
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
Information Reporting of
Health Insurance Coverage
and Other Issues under
Sections 5000A, 6055, and
6056
AGENCY: Internal Revenue Service
(IRS), Treasury
ACTION: Final regulations
SUMMARY: This document includes
final regulations under the Internal Rev-
enue Code that provide an automatic
extension of time for providers of min-
imum essential coverage (including
health insurance issuers, self-insured
employers, and government agencies) to
furnish individual statements regarding
such coverage and an alternative meth-
od for furnishing individual statements
when the individual shared responsibil-
ity payment amount is zero. The final
regulations also provide an automatic
extension of time for “applicable large
employers” (generally employers with
50 or more full-time employees, in-
cluding full-time equivalent employees)
to furnish statements relating to health
insurance that the applicable large em-
ployers offer to their full-time employ-
ees. Additionally, the final regulations
provide that “minimum essential cov-
erage,” as that term is used in health
insurance-related tax laws, does not
include Medicaid coverage limited to
COVID-19 testing and diagnostic ser-
vices provided under the Families First
Coronavirus Response Act. The final
regulations affect some taxpayers who
claim the premium tax credit; health in-
surance issuers, self-insured employers,
government agencies, and other persons
that provide minimum essential cover-
age to individuals; and applicable large
employers.
DATES: Effective date: These regula-
tions are effective on December 15, 2022.
Applicability date: The regulations un-
der §1.5000A-2 apply for months begin-
ning after September 28, 2020. The regu-
lations under §§1.6055-1 and 301.6056-1
apply for calendar years beginning after
December 31, 2021.
FOR FURTHER INFORMATION
CONTACT: Gerald Semasek at (202)
317-7006 or Lisa Mojiri-Azad at (202)
317-4649 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments
to the Income Tax Regulations (26 CFR
part 1) under sections 5000A and 6055 of
the Internal Revenue Code (Code) and to
the Procedure and Administration Regu-
lations (26 CFR part 301) under section
6056 of the Code.
On December 6, 2021, a notice of
proposed rulemaking (REG-109128-21)
was published in the Federal Register
(86 FR 68939) (2021 proposed regula-
tions). The 2021 proposed regulations
proposed amendments to the regulations
under:
• Section 5000A that would provide
that Medicaid coverage limited to
COVID-19 testing and diagnostic
services under section 6004(a)(3)
of the Families First Coronavirus
Response Act, Public Law 116-127,
134 Stat. 178 (Mar. 18, 2020) is not
minimum essential coverage.

January 9, 2023 312 Bulletin No. 2023–2
• Section 6055 that would provide
an automatic extension of time for
furnishing statements to responsible
individuals
1
and permit an alternative
manner for timely furnishing
statements.
• Section 6056 that would provide
an automatic extension of time for
furnishing statements to full-time
employees.
The preamble to the 2021 proposed reg-
ulations also included a renewed request
for comments on rules (REG-103058-16)
that were proposed in the Federal Reg-
ister (81 FR 50671) on August 2, 2016
(2016 proposed regulations) relating to in-
formation reporting of minimum essential
coverage under section 6055.
Ten comments were received in re-
sponse to the 2021 proposed regulations.
No public hearing was requested or held.
After consideration of the comments re-
ceived, this Treasury decision adopts the
2021 proposed regulations with clarifying
modifications as final regulations, as dis-
cussed in the Summary of Comments and
Explanation of Revisions section of this
preamble. The Department of the Treasury
(Treasury Department) and the IRS con-
tinue to consider the 2016 proposed reg-
ulations in light of the public comments
received both in 2016 and in response to
the request in the 2021 proposed regula-
tions. The Treasury Department and the
IRS expect to finalize the 2016 proposed
regulations separately.
Summary of Comments and
Explanation of Revisions
I. Minimum Essential Coverage Under
Section 5000A
Under the Patient Protection and Af-
fordable Care Act, Public Law 111-148,
124 Stat. 119 (2010), and the Health
Care and Education Reconciliation Act
of 2010, Public Law 111-152, 124 Stat.
1029 (2010) (collectively the Affordable
Care Act or ACA), eligible individuals
who purchase coverage under a qualified
health plan through a Health Insurance
Exchange (Exchange) established under
section 1311 of the ACA may claim a pre-
mium tax credit pursuant to section 36B.
Section 36B and §1.36B-3 of the Income
Tax Regulations provide that a taxpayer
is allowed a premium tax credit only for
months that are coverage months for indi-
viduals in the taxpayer’s family, as defined
in §1.36B-1(d). Under section 36B(c)(2)
(B) and §1.36B-3(c)(1)(iii), a “coverage
month” for an individual includes only
those months for which the individual is
not eligible for minimum essential cover-
age other than coverage in the individual
market.
Section 5000A(f)(1) defines “mini-
mum essential coverage” to include var-
ious types of health plans and programs,
including specified government-spon-
sored programs such as the Medicaid
program under Title XIX of the Social Se-
curity Act. Section 1.5000A-2(b)(2) lists
certain government-sponsored programs
that do not constitute minimum essential
coverage.
Notice 2020-66, 2020-40 I.R.B. 785,
provides that Medicaid coverage that is
limited to COVID-19 testing and diagnos-
tic services under section 6004(a)(3) of
the Families First Coronavirus Response
Act is not minimum essential coverage
under a government-sponsored program.
Consequently, an individual’s eligibility
for such coverage for one or more months
does not prevent those months from qual-
ifying as coverage months for purposes of
determining eligibility for the premium
tax credit under section 36B.
Consistent with the guidance provid-
ed in Notice 2020-66, the 2021 proposed
regulations would amend §1.5000A-
2 by adding Medicaid coverage for
COVID-19 testing and diagnostic services
to the enumerated health coverages un-
der §1.5000A-2(b)(2) that do not quali-
fy as minimum essential coverage under
a government-sponsored program. This
amendment to §1.5000A-2 would apply
for months beginning after September
28, 2020. Under the 2021 proposed reg-
ulations, for months beginning on or after
January 1, 2020, and before September
28, 2020, taxpayers could rely upon No-
tice 2020-66. No comments were received
on this proposed change. Accordingly,
the Treasury Department and the IRS are
finalizing the proposed amendment to
§1.5000A-2 without change.
II. Information Reporting Under Sections
6055 and 6056 and Penalties Under
Sections 6721 and 6722
Section 6055 requires all persons who
provide minimum essential coverage to an
individual to report certain information to
the IRS that identifies covered individuals
and the period of coverage. See section
6055(a) and (b). Those persons are also
required to furnish a statement to the cov-
ered individuals with the same informa-
tion. See section 6055(c). These informa-
tion returns and written statements were
needed to administer the individual shared
responsibility provisions under section
5000A until the individual shared respon-
sibility payment amount was reduced to
zero for months beginning after December
31, 2018 by Public Law 115-97, 131 Stat.
2054, 2092 (2017), commonly referred
to as the Tax Cuts and Jobs Act (TCJA).
As a result, covered individuals no lon-
ger needed the information on the written
statements (Form 1095-B) to prepare and
file their individual returns. However, the
TCJA did not amend any of the reporting
or furnishing requirements under section
6055.
Under section 6055 and §1.6055-1(f)
and (g), every person that provides min-
imum essential coverage to an individual
during the calendar year is required to file
with the IRS an information return and
a transmittal on or before February 28
(March 31 if filed electronically) of the
year following the calendar year to which
it relates and to furnish to the responsible
individual identified on the return a written
statement on or before January 31 of the
year following the calendar year to which
the statement relates. The IRS generally
has designated Form 1094-B, Transmittal
of Health Coverage Information Returns,
and Form 1095-B, Health Coverage, to
meet the section 6055 requirements.
Section 6056 requires an applicable
large employer (ALE), as defined in sec-
1
As provided in §1.6055-1(b)(11), a responsible individual includes a primary insured, employee, former employee, uniformed services sponsor, parent, or other related person named on an
application who enrolls one or more individuals, including him or herself, in minimum essential coverage.

Bulletin No. 2023–2 313 January 9, 2023
tion 4980H(c)(2) of the Code, that is sub-
ject to the requirements of section 4980H
to file information returns annually and
furnish written statements with respect to
the health insurance, if any, that the em-
ployer offers to its full-time employees.
The information returns are used by the
IRS to administer the employer shared re-
sponsibility provisions of section 4980H,
and by certain full-time employees to help
determine if they are eligible for the pre-
mium tax credit under section 36B.
Under section 6056 and §301.6056-
1(e) and (g), every ALE and member of an
aggregated group that is determined to be
an ALE (collectively, ALE member) is re-
quired to file with the IRS an information
return and a transmittal on or before Feb-
ruary 28 (March 31 if filed electronically)
of the year following the calendar year
to which it relates and to furnish to full-
time employees a written statement on or
before January 31 of the year following
the calendar year to which the statement
relates. The IRS generally has designat-
ed Form 1094-C, Transmittal of Employ-
er-Provided Health Insurance Offer and
Coverage Information Returns, and Form
1095-C, Employer-Provided Health In-
surance Offer and Coverage, to meet the
section 6056 requirements.
In addition, an ALE member that offers
coverage through a self-insured health
plan must complete the reporting required
under section 6055, specifically, the infor-
mation regarding each individual enrolled
in the self-insured health plan, using Form
1095-C, Part III, rather than Form 1095-B.
The current regulations under sections
6055 and 6056 allow the IRS to grant an
extension of time of up to 30 days to fur-
nish statements to individuals for good
cause shown. See §§1.6055-1(g)(4)(i)(B)
(1) and 301.6056-1(g)(1)(ii)(A). Addi-
tionally, under the current regulations the
Commissioner may prescribe guidance
or procedures for automatic extensions
of time for furnishing statements to in-
dividuals. See §§1.6055-1(g)(4)(i)(B)(2)
and 301.6056-1(g)(1)(ii)(B). Through a
series of notices, the Treasury Department
and the IRS extended the due date for fur-
nishing statements to individuals under
sections 6055 and 6056 for calendar years
2015 through 2020.
2
Section 6721 imposes a penalty for
failing to timely file an information return
or for filing an incorrect or incomplete
information return. Section 6722 impos-
es a penalty for failing to timely furnish
an information statement or furnishing an
incorrect or incomplete information state-
ment. The section 6721 and 6722 penal-
ties are imposed regarding information
returns and statements listed in section
6724(d), which include those required
by sections 6055 and 6056. Section 6724
provides that no penalty will be imposed
under section 6721 or 6722 with respect to
any failure if it is shown that the failure is
due to reasonable cause and not to willful
neglect.
a. Automatic Extension of Time to
Furnish Statements under Section 6055
To reduce administrative burdens for
reporting entities and the IRS, the 2021
proposed regulations provided that report-
ing entities would be granted an automatic
extension of time, not to exceed 30 days
after January 31, in which to furnish the
written statements required by §1.6055-
1(g)(1). The 2021 proposed regulations
also provided that if the extended fur-
nishing date falls on a weekend or legal
holiday, statements would be timely if fur-
nished on the next business day.
Because this extension would be au-
tomatic, the 2021 proposed regulations
would eliminate §1.6055-1(g)(4)(i)(B)(1),
which allows a reporting entity to make a
written application to the IRS to request an
extension of time to furnish the statement.
The 2021 proposed regulations also would
eliminate §1.6055-1(g)(4)(i)(B)(2), under
which the Commissioner may prescribe
guidance or procedures for automatic
extensions of time for furnishing written
statements pursuant to section 6055.
Commenters expressed strong support
for the proposal to amend §1.6055-1(g)
(4) to provide a permanent, automatic ex-
tension of time during which a provider of
minimum essential coverage must furnish
written statements to individuals. One
commenter acknowledged that the addi-
tion of the permanent, automatic exten-
sion of time for reporting entities to fur-
nish statements obviates the need for the
IRS to provide other extensions of time to
furnish statements in most circumstanc-
es. The commenter nonetheless requested
that the final regulations retain the provi-
sions in §1.6055-1(g)(4)(i)(B)(2) allowing
the Commissioner, in appropriate cases, to
prescribe additional guidance or proce-
dures for automatic extensions of time for
furnishing written statements.
After consideration of the comments
received, the Treasury Department and
the IRS are adopting with one clarifying
change the proposal for a permanent, au-
tomatic extension of time for furnishing
written statements to individuals pursuant
to §1.6055-1(g). The 2021 proposed reg-
ulations provided that reporting entities
would be granted an automatic extension
of time not exceeding 30 days in which to
furnish required statements. To provide a
clear, definite rule, these final regulations
expressly provide a 30-day, automatic ex-
tension of time. The permanent, 30-day
automatic extension of time to furnish
written statements replaces §1.6055-1(g)
(4)(i) and provides adequate time for fur-
nishing in most situations. Additionally,
because a reporting entity may qualify for
penalty relief pursuant to section 6724 by
showing that a failure was due to reason-
able cause and not to willful neglect, the
request that §1.6055-1(g)(4)(i)(B)(2) be
retained is not adopted.
While expressing support for the pro-
posed rule, one commenter requested
that the IRS communicate the automat-
ic extension clearly and directly to state
governmental bodies that have their own
individual health insurance mandates and
reporting requirements. According to the
commenter, some states impose require-
ments similar to the reporting and furnish-
ing requirements of section 6055. In these
cases, the commenter suggested that the
deadlines should be coordinated or made
the same.
2
Notice 2016-04, 2016-3 I.R.B. 279 (Jan. 19, 2016); Notice 2016-70, 2016-49 I.R.B. 784 (Dec. 5, 2016); Notice 2018-06, 2018-3 I.R.B. 300 (Jan. 16, 2018); Notice 2018-94, 2018-51 I.R.B.
1042 (Dec. 17, 2018); Notice 2019-63, 2019-51 I.R.B. 1390 (Dec. 16, 2019); and Notice 2020-76, 2020-47 I.R.B. 1058 (Nov. 16, 2020).

January 9, 2023 314 Bulletin No. 2023–2
The Treasury Department and the IRS
intend to revise the instructions for Form
1094-B and Form 1095-B to communi-
cate the final rule’s permanent, 30-day
automatic extension of time for furnish-
ing the required statements. However, the
Treasury Department and the IRS have no
authority over state reporting and furnish-
ing requirements. Whether state deadlines
for filing returns or other documents relat-
ing to health coverage will align with the
regulations is a question of state law. Ac-
cordingly, the Treasury Department and
the IRS are not revising the regulations
to coordinate with state reporting and fur-
nishing requirements.
b. Automatic Extension of Time to
Furnish Statements under Section 6056
To reduce administrative burdens for
ALE members and the IRS, the 2021
proposed regulations provided that ALE
members would be granted an automatic
extension of time, not to exceed 30 days
after January 31, in which to furnish writ-
ten statements to full-time employees. The
2021 proposed regulations also provided
that if the extended furnishing date falls
on a weekend or legal holiday, statements
would be timely if furnished on the next
business day.
Because this extension would be au-
tomatic, the 2021 proposed regulations
would eliminate §301.6056-1(g)(1)(ii)
(A), which allows an ALE member to
make a written application to the IRS to
request an extension of time to furnish the
statement. The 2021 proposed regulations
also would eliminate §1.6056-1(g)(1)(ii)
(B), under which the Commissioner may
prescribe guidance or procedures for au-
tomatic extensions of time for furnishing
written statements pursuant to section
6056.
Commenters expressed strong support
for the proposal to amend §301.6056-
1(g)(1) by providing a permanent auto-
matic extension of time during which an
ALE must furnish written statements to
full-time employees. One commenter
acknowledged that the addition of a per-
manent, automatic extension of time for
reporting entities to furnish statements ob-
viates the need for the IRS to provide oth-
er extensions of time to furnish statements
in most circumstances. The commenter
nonetheless requested that the final regu-
lations retain the provisions in §301.6056-
1(g)(1)(ii)(B) allowing the Commissioner,
in appropriate cases, to prescribe addition-
al guidance or procedures for automatic
extensions of time for furnishing written
statements pursuant to section 6056.
After consideration of the comments
received, the Treasury Department and
the IRS are adopting with one clarifying
change the proposal for a permanent, au-
tomatic extension of time for furnishing
written statements to individuals pursuant
to §301.6056-1(g)(1). The 2021 proposed
regulations provided that ALEs would be
granted an automatic extension of time
not exceeding 30 days in which to furnish
required statements. To provide a clear,
definite rule, these final regulations ex-
pressly provide a 30-day, automatic exten-
sion of time. The permanent, 30-day auto-
matic extension of time to furnish written
statements replaces §301.6056-1(g)(1)
and provides adequate time for furnishing
in most situations. Additionally, because
a reporting entity may qualify for penalty
relief pursuant to section 6724 by showing
that a failure was due to reasonable cause
and not to willful neglect, the request that
§1.6056-1(g)(1)(ii)(B) be retained is not
adopted.
c. Alternative Manner of Furnishing
Statements under Section 6055
The 2021 proposed regulations provid-
ed an alternative manner for a reporting
entity to timely furnish Forms 1095-B to
responsible individuals.
3
Under proposed
§1.6055-1(g)(4)(ii)(B), the reporting enti-
ty first would be required to post a clear
and conspicuous notice on the entity’s
website stating that responsible individu-
als may receive a copy of their statement
upon request. The notice would have to
include an email address, a physical ad-
dress to which a request may be sent, and
a telephone number responsible individu-
als may use to contact a reporting entity
with any questions. Additionally, the 2021
proposed regulations provided that the no-
tice would satisfy the requirements for the
alternative manner of furnishing if it were
written in plain, non-technical terms and
with letters of a font size large enough,
including any visual clues or graphical
figures, to call to a viewer’s attention that
the information pertains to tax statements
reporting that individuals had health cov-
erage. Under the 2021 proposed regula-
tions, a reporting entity would be required
to retain the notice in the same location
on its website until October 15 of the year
following the calendar year to which the
statement relates. The reporting entity
would have to provide a Form 1095-B to
a responsible individual within 30 days
of the date of receipt of the individual’s
request. The proposed alternative manner
of furnishing would apply only to taxable
years when the individual shared respon-
sibility payment amount under section
5000A(b) is zero.
Commenters generally supported the
proposed amendments to §1.6055-1(g) al-
lowing reporting entities to satisfy the fur-
nishing requirements for Form 1095-B by
using the alternative manner of furnishing.
One commenter requested that the regula-
tions under section 6056 also be amend-
ed to extend the alternative manner of
furnishing rule to ALEs. The commenter
asserted that the information included on
Form 1095-C has limited utility because it
only helps full-time employees determine
if they are eligible for the premium tax
credit. The commenter noted the potential
environmental benefits, specifically the
reduced use of paper and resources, that
would result by allowing for the furnish-
ing of forms only upon request.
As noted in Notice 2020-76, the pre-
amble to the 2021 proposed regulations,
and earlier in this Summary of Comments
and Explanation of Revisions, individuals
no longer need Form 1095-B because the
TCJA reduced the amount of the individ-
ual shared responsibility payment to zero.
This change in federal law caused the
Treasury Department and the IRS to con-
sider whether it was possible to amend the
section 6055 regulations to reduce bur-
dens on providers of minimum essential
coverage, while providing for continued
compliance with the unchanged statutory
3
Notice 2020-76 provided a similar alternative manner of furnishing statements for coverage year 2020.

Bulletin No. 2023–2 315 January 9, 2023
requirements of section 6055. Thus, the
Treasury Department and the IRS pro-
posed the alternative manner of furnishing
Form 1095-B in recognition that the TCJA
mooted the primary purpose for which in-
dividuals would need Form 1095-B.
However, as noted earlier, Form 1095-
C serves a different purpose than Form
1095-B. Form 1095-C is used to admin-
ister the employer shared responsibility
provisions of section 4980H and by cer-
tain full-time employees to help determine
eligibility for the premium tax credit un-
der section 36B. Neither the TCJA nor any
other change in federal law affects the em-
ployer shared responsibility provisions of
section 4980H or the need for certain full-
time employees to have information about
their coverage offer to help determine el-
igibility for the premium tax credit under
section 36B. Because the primary purpose
for furnishing Form 1095-C is distinct
from the primary purpose for furnishing
Form 1095-B and was not affected by the
changes made by the TCJA, the Treasury
Department and the IRS conclude that it is
not appropriate to amend the regulations
under section 6056 to extend the alterna-
tive manner of furnishing rule to ALEs
with regard to their full-time employees.
However, the 2021 proposed regulations
permitted, and these final regulations per-
mit, ALEs to use the alternative manner
of furnishing for non-employees and non-
full-time employees for whom furnishing
is required under §1.6055-1.
The commenter that requested the al-
ternative manner of furnishing for Form
1095-C also expressed concern about the
environmental impact of providing Forms
1095-C on paper, but that concern does
not take into account the potential miti-
gation of providing the information elec-
tronically.
One commenter requested that the
Treasury Department and the IRS elim-
inate the section 6055 reporting require-
ment for years when the individual shared
responsibility payment amount is zero.
According to the commenter, under the
proposed alternative manner of furnish-
ing statements, health insurance issuers
and plan sponsors must continue to main-
tain record-keeping systems to complete
Forms 1095-B that must be provided upon
request. The continued requirement to
maintain records, according to the com-
menter, imposes burdens and costs. Thus,
the commenter requested that the regula-
tions be revised to eliminate the require-
ment to furnish Form 1095-B even upon
request.
As noted, the TCJA reduced the in-
dividual shared responsibility payment
amount to zero for months beginning after
December 31, 2018; however, the TCJA
did not amend any of the reporting or fur-
nishing requirements under section 6055.
Because Congress did not repeal or other-
wise modify the reporting and furnishing
requirements in section 6055, the Trea-
sury Department and the IRS have deter-
mined that there is insufficient statutory
authority to eliminate the Form 1095-B
requirement. Accordingly, the comment-
er’s suggestion is not adopted.
The final regulations include clarify-
ing, non-substantive changes to the lan-
guage in proposed §1.6055-1(g)(4)(ii)(B)
describing the alternative manner of fur-
nishing. The final regulations also modi-
fy proposed §1.6055-1(g)(4)(ii)(B)(2) to
provide that a reporting entity using the
alternative manner of furnishing must post
a notice on its website by the date spec-
ified in §1.6055-1(g)(4)(i) of these final
regulations.
After consideration of the comments
received, the Treasury Department and the
IRS are adopting the proposed alternative
manner of furnishing written statements to
individuals under section 6055 with these
clarifying changes.
III. Elimination of Transitional Good
Faith Relief
The preamble to the 2021 proposed
regulations described the genesis of the
transitional good faith relief from penal-
ties under sections 6721 and 6722, which
the Treasury Department and the IRS pro-
vided to reporting entities in the preambles
to the regulations under sections 6055 and
6056
4
for calendar year 2015 and in IRS
notices for calendar years 2016-2020.
5

Under the transitional good faith relief,
the IRS did not impose penalties under
sections 6721 and 6722 on reporting en-
tities if the entities could show that they
made good faith efforts to comply with
the information reporting requirements.
In Notice 2020-76, the Treasury Depart-
ment and the IRS stated that 2020 was the
last year that transitional good faith relief
would be provided. Consistent with No-
tice 2020-76, the Treasury Department
and the IRS reiterated in the preamble
to the 2021 proposed regulations that the
transitional good faith relief would be dis-
continued after 2020.
Two commenters requested that the
Treasury Department and the IRS recon-
sider terminating the transitional good
faith relief, with one of the commenters
suggesting that the relief be retained at
least for calendar years 2022, 2023, and
2024. Specifically, one commenter ad-
vocated for continuation of the relief be-
cause health coverage information report-
ing, especially for ALEs, is complicated,
and many employers continue to make un-
intentional mistakes. The commenter as-
serted that the reasonable cause standard
would be insufficient to relieve employers
from significant penalties. The commenter
requested, at a minimum, good faith pen-
alty relief for small employers (as defined
under applicable state law) that are ALEs.
The other commenter asked that the
transitional good faith relief be retained
because, although the individual shared
responsibility payment amount is zero,
several states have imposed individual
mandates regarding health insurance that
require reporting; instructions for IRS
forms respecting reporting are modified
annually; and plans have faced compli-
ance problems caused by the COVID-19
pandemic.
As discussed in the preamble to the
2021 proposed regulations, the good faith
relief offered beginning in calendar year
2015 was intended to be transitional to ac-
commodate public concerns with imple-
menting the new reporting requirements
under the ACA. These reporting require-
ments have now been in place for seven
years, and transitional relief is no longer
4
See T.D. 9660, 79 FR 13220 (Mar. 10, 2014); T.D. 9661, 79 FR 13231 (Mar. 10, 2014).
5
See Notice 2016-70; Notice 2018-06; Notice 2018-94; Notice 2019-63; and Notice 2020-76.

January 9, 2023 316 Bulletin No. 2023–2
appropriate. Also, the Treasury Depart-
ment and the IRS are of the view that ad-
ditional good faith relief is not necessary
to address the commenters’ concerns. The
reasonable cause exception under section
6724 already provides adequate relief
from penalties under sections 6721 and
6722 for filers who have reasonable cause
for failing to timely or accurately com-
plete their reporting requirements.
Applicability Date
The regulations under §1.5000A-2 ap-
ply for months beginning after September
28, 2020. For months beginning on or af-
ter January 1, 2020, and before September
28, 2020, taxpayers may continue to rely
on Notice 2020-66.
The regulations under §§1.6055-1 and
301.6056-1 apply for calendar years be-
ginning after December 31, 2021. As dis-
cussed in the Proposed Applicability Date
section of the 2021 proposed regulations,
taxpayers may rely on §§1.6055-1 and
301.6056-1 of the 2021 proposed regula-
tions for calendar years beginning after
December 31, 2020, and before December
15, 2022.
Statement of Availability of IRS
Documents
IRS revenue procedures, revenue rul-
ings, notices, and other guidance cited in
this preamble are published in the Internal
Revenue Bulletin and are available from
the Superintendent of Documents, U.S.
Government Publishing Office, Wash-
ington, DC 20402, or by visiting the IRS
website at http://www.irs.gov.
Special Analyses
I. Regulatory Planning and Review –
Economic Analysis
These final regulations are not subject
to review under section 6(b) of Executive
Order 12866 pursuant to the Memoran-
dum of Agreement (April 11, 2018) be-
tween the Treasury Department and the
Office of Management and Budget (OMB)
regarding review of tax regulations. It has
been determined that a final regulatory
flexibility analysis under 5 U.S.C. 604 is
required for this final rule. The analysis is
set forth under the heading, ‘‘Final Regu-
latory Flexibility Analysis.’’
II. Paperwork Reduction Act
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid control number assigned by
OMB.
There is no collection of information
contained in these final regulations. The
collections of information contained in
§§1.6055-1 and 301.6056-1 were previ-
ously reviewed and approved by OMB in
accordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)) and are
associated with control numbers 1545-
2251 (associated with Form 1095-C) and
1545-2252 (associated with Form 1095-
B).
The Paperwork Reduction Act (44
U.S.C. 3501-3520) relates to information
collection requests by any government
agency. A collection of information gen-
erally means the “obtaining, causing to
be obtained, soliciting, or requiring the
disclosure to third parties or the public,
of facts or opinions by or for an agency,
regardless of form or format, calling for
either (1) answers to identical questions
posted to, or identical reporting or record-
keeping requirements imposed on ten or
more persons, other than agencies, instru-
mentalities, or employees of the United
States, or (2) answers to questions posed
to agencies, instrumentalities, or employ-
ees of the United States which are to be
used for general statistical purposes.” 44
U.S.C. 3502(3). A collection of informa-
tion is commonly referred to as a report-
ing, recordkeeping, or disclosure require-
ment.
These final regulations do not require
a reporting entity to provide any informa-
tion to the Federal Government, to main-
tain specific records, or to disclose any
additional information that the reporting
entity did not already have a requirement
to disclose.
III. Final Regulatory Flexibility Analysis
When an agency either issues a fi-
nal rule that follows a required notice
of proposed rulemaking or issues a final
interpretative rule involving the internal
revenue laws that imposes a collection of
information requirement on small entities
as described in 5 U.S.C. 603(a), the Reg-
ulatory Flexibility Act (5 U.S.C. chapter
6) (Act) requires the agency to “prepare
a final regulatory flexibility analysis.” A
final regulatory flexibility analysis must,
pursuant to 5 U.S.C. 604(a), include the
five elements listed in this final regulatory
flexibility analysis. For purposes of this fi-
nal regulatory flexibility analysis, a small
entity is defined as a small business, small
nonprofit organization, or small govern-
mental jurisdiction. See 5 U.S.C. 601(3)-
(6). Small business size standards define
whether a business is “small” and have
been established for types of economic
activities, or industry, generally under the
North American Industry Classification
System (NAICS). See Title 13, Part 121
of the Code of Federal Regulations (Small
Business Size Regulations). The size stan-
dards look at various factors, including
annual receipts, number of employees,
and amount of assets, to determine wheth-
er the business is small. See Title 13, Part
121.201 of the Code of Federal Regula-
tions for the Small Business Size Stan-
dards by NAICS Industry.
The Treasury Department and the IRS
conclude that, although the overall impact
of these final regulations will reduce the
burden on small entities, these final reg-
ulations will impact a substantial number
of small entities and the economic impact
on those small entities may be significant.
As a result, although the impact of these
final regulations is positive for small enti-
ties, a final regulatory flexibility analysis
is required.
A Statement of the Need for, and the
Objectives of, the Final Rule
The final regulations under §1.5000A-
2 make permanent the guidance in No-
tice 2020-66 regarding whether certain
Medicaid coverage of COVID-19 testing
and diagnostic services is minimum es-
sential coverage. These final regulations
will ensure that taxpayers have accurate
guidance when determining whether they
have minimum essential coverage, which
in turn will assist taxpayers in determining
whether they qualify for the premium tax
credit.

Bulletin No. 2023–2 317 January 9, 2023
The principal objective of the final reg-
ulations under section 5000A is to provide
certainty that Medicaid coverage limited
to certain COVID-19 testing and diag-
nostic services is not minimum essential
coverage. Minimum essential coverage is
defined in section 5000A(f)(1) and gener-
ally includes coverage under the Medic-
aid program under title XIX of the Social
Security Act. However, §1.5000A-2(b)
(2) lists certain types of services that are
excluded from the definition of minimum
essential coverage and these final reg-
ulations will add Medicaid coverage of
certain COVID-19 testing and diagnostic
services to that list. Thus, eligibility for
this coverage will not preclude an individ-
ual from qualifying for the premium tax
credit.
The final regulations under §§1.6055-1
and 301.6056-1 make permanent the ex-
tension of time to furnish Forms 1095-B
and 1095-C to responsible individuals and
employees that has been provided every
calendar year since 2015. These final reg-
ulations will reduce the burden on report-
ing entities by extending the time to satis-
fy their furnishing obligations for certain
health care coverage without the penalty
under section 6722 being imposed. This
extension should result in an increase in
the timeliness and accuracy of the report-
ing.
The final regulations under §1.6055-
1 also allow reporting entities to furnish
the statement required by section 6055 by
providing notice on their website and by
providing the statement to the responsible
individual upon request. These final regu-
lations will reduce the burden on reporting
entities by providing a less costly option
to satisfy the furnishing obligation under
section 6055 for tax years when individu-
als do not need to report health coverage
information on their federal income tax
returns.
The principal objectives of the final
regulations under section 6055 are to (1)
provide reporting entities under section
6055 and section 6056 with additional
time to complete and furnish accurate
statements to responsible individuals and
full-time employees; and (2) to offer re-
porting entities a minimally burdensome
option by which to furnish the statement
required by section 6055. The legal basis
for the extended due date for statements
required under section 6055 and section
6056 was originally set forth in the series
of notices referenced in the Summary
of Comments and Explanation of Revi-
sions section of this preamble. In those
notices, the Treasury Department and
the IRS extended the dates for furnish-
ing statements to responsible individuals
and full-time employees and provided
that reporting entities that satisfy the fur-
nishing requirement by the extended due
date will not be subject to penalties under
sections 6721 and 6722. Section 6724(a)
provides that no penalty is imposed un-
der section 6721 or 6722 if it is shown
that the failure is due to reasonable cause
and not to willful neglect. The legal basis
for the alternative manner of furnishing
statements under section 6055 is in sec-
tion 6055(b)(1)(A), which authorizes the
Secretary to prescribe the form of the re-
turn that is required to be furnished under
section 6055(c).
Summaries of the Significant Issues
Raised in the Public Comments
Responding to the Initial Regulatory
Flexibility Analysis (IRFA) and of the
Agency’s Assessment of the Issues, and a
Statement of Any Changes Made to the
Rule as a Result of the Comments
No comments were received in re-
sponse to the IRFA in the proposed reg-
ulations.
The response of the agency to any
comments filed by the Chief Counsel for
Advocacy of the SBA in response to the
proposed rule
Pursuant to section 7805(f) of the Code,
the proposed regulations were submitted
to the Chief Counsel of the Office of Ad-
vocacy of the Small Business Administra-
tion for comment on its impact on small
business, and no comments were received.
A Description and an Estimate of the
Number of Small Entities to Which the
Rule Will Apply or an Explanation of
Why an Estimate is Not Available
These final regulations apply to health
insurance issuers, self-insured employers,
government agencies, and other providers
of minimum essential coverage required
to furnish individual statements regarding
such coverage under section 6055, and to
ALE members that are required by sec-
tion 6056 to furnish information relating
to health insurance that the ALE offers to
its full-time employees. An estimate of the
number of small entities subject to these
final regulations is not feasible because a
correlation between small entities and this
type of reporting cannot be made. These
final regulations affect entities in all in-
dustries using any NAICS code.
A Description of the Projected Reporting,
and Other Compliance Requirements
of the Rule, Including an Estimate of
the Classes of Small Entities Subject
to the Requirements and the Type
of Professional Skills Necessary for
Preparation of the Report or Record.
As discussed in the Paperwork Reduc-
tion Act section earlier in this preamble,
these final regulations do not impose any
reporting, recordkeeping, or similar re-
quirements on any small entities that did
not already apply to small entities.
A Description of the Steps the Agency
Has Taken to Minimize the Significant
Economic Impact On Small Entities
Consistent With the Stated Objectives of
Applicable Statutes, Including a Statement
of the Factual, Policy, and Legal Reasons
for Selecting Any Alternative Adopted in
the Final Rule and Why Other Significant
Alternatives Affecting the Impact on Small
Entities That the Agency Considered Were
Rejected.
The Treasury Department and the IRS
are not aware of any steps that could be
taken to minimize the economic impact
on small entities that would also be con-
sistent with the objectives of these final
regulations and have determined that,
without a legislative change, there are no
viable alternatives to the provisions in the
final regulations that would enable report-
ing entities to continue to satisfy their re-
porting obligations with a lesser burden.
These final regulations do not impose any
more requirements on small entities than
are necessary to effectively administer the
internal revenue laws. Further, these final
regulations do not subject small entities
to any requirements that are not also ap-

January 9, 2023 318 Bulletin No. 2023–2
plicable to larger entities covered by the
regulations.
Accordingly, the Treasury Department
and the IRS conclude that the provisions
of these final regulations will effective-
ly promote sound tax administration.
The additional exclusion from the defi-
nition of minimum essential coverage
in §1.5000A-2 will provide guidance to
ensure that taxpayers can adequately de-
termine whether they have minimum es-
sential coverage that would preclude them
from qualifying for a premium tax credit.
An automatic extension of time to furnish
statements under §§1.6055-1(g)(4)(i) and
301.6056-1(g)(1) will assist reporting en-
tities to timely and accurately satisfy their
statutory reporting obligations, while also
reducing the cost and burden of having
to request an extension. Last, the alterna-
tive manner of furnishing a statement in
§1.6055-1(g)(4)(ii)(B), at a time when the
individual shared responsibility payment
amount is zero, will also help reporting
entities reduce costs. Accordingly, imple-
mentation of these final regulations will
increase tax compliance by providing de-
finitive guidance to individuals, will allow
reporting entities the time needed to fur-
nish timely and accurate statements under
sections 6055 and 6056, and will allow
reporting entities an alternative method of
furnishing statements under section 6055
to minimize their production and distribu-
tion costs.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires
that agencies assess anticipated costs and
benefits and take certain other actions be-
fore issuing a final rule that includes any
federal mandate that may result in expen-
ditures in any one year by a state, local, or
tribal government, in the aggregate, or by
the private sector, of $100 million (updat-
ed annually for inflation). This final rule
does not include any federal mandate that
may result in expenditures by state, local,
or tribal governments, or by the private
sector in excess of that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on state and local gov-
ernments, and is not required by statute,
or preempts state law, unless the agency
meets the consultation and funding require-
ments of section 6 of the Executive Order.
This final rule does not have federalism im-
plications and does not impose substantial
direct compliance costs on state and local
governments or preempt state law within
the meaning of the Executive Order.
Drafting Information
The principal author of these final reg-
ulations is Gerald Semasek of the Office
of Associate Chief Counsel (Income Tax
and Accounting). Other personnel from
the Treasury Department and the IRS par-
ticipated in the development of these reg-
ulations.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Ex-
cise taxes, Gift taxes, Income taxes, Pen-
alties, Reporting and recordkeeping re-
quirements.
Adoption of Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS amend 26 CFR parts 1 and
301 as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.5000A-2 is amended
by:
1. Revising paragraph (b)(2)(vii) and
(viii); and
2. Adding paragraph (b)(2)(ix).
The revisions and addition read as fol-
lows:
§1.5000A-2 Minimum Essential
Coverage.
* * * * *
(b) * * *
(2) * * *
(vii) Coverage under section 1079(a),
1086(c)(1), or 1086(d)(1) of title 10,
U.S.C., that is solely limited to space
available care in a facility of the uni-
formed services for individuals excluded
from TRICARE coverage for care from
private sector providers;
(viii) Coverage under section 1074a
and 1074b of title 10, U.S.C., for an inju-
ry, illness, or disease incurred or aggravat-
ed in the line of duty for individuals who
are not on active duty; and
(ix) Medicaid coverage limited to
COVID-19 testing and diagnostic services
provided under section 6004(a)(3) of the
Families First Coronavirus Response Act,
Pub. L. 116-127, 134 Stat. 178 (March 18,
2020).
Par. 3. Section 1.5000A-5 is amended
by revising paragraph (c) to read as fol-
lows:
§1.5000A-5 Administration and
procedure.
* * * * *
(c) Applicability date. Except as other-
wise provided in this paragraph (c), this
section and §1.5000A-1 through 1.5000A-
4 apply for months beginning after De-
cember 31, 2013. Section 1.5000A-2(b)
(2)(ix) applies for months beginning after
September 28, 2020.
Par. 4. Section 1.6055-1 is amended
by:
1. Revising the first sentence of para-
graph (g)(1);
2. Revising paragraph (g)(4)(i) and (ii);
3. Revising paragraph (j)
The revisions read as follows:
§1.6055-1 Information reporting for
minimum essential coverage.
* * * * *
(g) * * * Except as otherwise provided
in paragraph (g)(4)(ii)(B) of this section,
every person required to file a return under
this section must furnish to the responsi-
ble individual identified on the return a
written statement. * * *

Bulletin No. 2023–2 319 January 9, 2023
* * * * *
(4) Time and manner for furnishing
statements--(i) Time for furnishing—Ex-
cept as otherwise provided in this para-
graph (g)(4)(i), a reporting entity must
furnish the statements required under
paragraph (g)(1) of this section on or be-
fore January 31 of the year following the
calendar year in which the minimum es-
sential coverage is provided. Reporting
entities are granted an automatic, 30-day
extension of time in which to furnish these
statements.
(ii) Manner of furnishing—(A) In
general. Except as otherwise provided
in paragraph (g)(4)(ii)(B) of this section,
if mailed, the statement must be sent to
the responsible individual’s last known
permanent address or, if no permanent
address is known, to the individual’s
temporary address. For purposes of this
paragraph (g)(4)(ii)(A), a reporting enti-
ty’s first class mailing to the last known
permanent address, or if no permanent
address is known, the temporary address,
discharges the requirement to furnish the
statement. A reporting entity may furnish
the statement electronically if the require-
ments of §1.6055-2 are satisfied.
(B) Alternative manner of furnishing.
A reporting entity shall be treated as fur-
nishing the statement in a timely manner
under this paragraph (g)(4) if the individ-
ual shared responsibility payment amount
under section 5000A(c) for the calendar
year in which the minimum essential cov-
erage is provided is zero and the report-
ing entity satisfies the requirements in
this paragraph (g)(4)(ii)(B). If the report-
ing entity is an applicable large employ-
er member that sponsors a self-insured
group health plan and makes a return in
accordance with paragraph (f)(2)(i) of this
section related to that plan, the applicable
large employer member may use the alter-
native manner of furnishing described in
this paragraph (g)(4)(ii)(B) for statements
to non-full-time employees and non-em-
ployees who are enrolled in the applicable
large employer’s self-insured group health
plan. The reporting entity satisfies the re-
quirements of this paragraph (g)(4)(ii)(B)
only if the reporting entity:
(1) Provides clear and conspicuous
notice, in a location on its website that
is reasonably accessible to all responsi-
ble individuals, stating that responsible
individuals may receive a copy of their
statement upon request. The notice must
include an email address, a physical ad-
dress to which a request for a statement
may be sent, and a telephone number
that responsible individuals may use to
contact the reporting entity with any
questions. A notice posted on a report-
ing entity’s website satisfies the require-
ments of this paragraph (g)(4)(ii)(B)
(1) if it is written in plain, non-techni-
cal terms and with letters of a font size
large enough, including any visual clues
or graphical figures, to call to a viewer’s
attention that the information pertains to
tax statements reporting that individuals
had health coverage. For example, a re-
porting entity’s website provides a clear
and conspicuous notice if it includes a
statement on the main page -- or a link
on the main page, reading “Tax Infor-
mation”, to a secondary page that in-
cludes a statement -- in capital letters,
“IMPORTANT HEALTH COVERAGE
TAX DOCUMENTS”; explains how
responsible individuals may request a
copy of Form 1095-B, Health Cover-
age, (or, for an applicable large employ-
er member that sponsors a self-insured
group health plan and makes a return in
accordance with paragraph (f)(2)(i) of
this section, explains how non-full-time
employees and non-employees who are
enrolled in the plan may request a copy
of Form 1095-C, Employer-Provided
Health Insurance Offer and Coverage);
and includes the reporting entity’s email
address, mailing address, and telephone
number;
(2) Posts the notice on its website by
the date specified in paragraph (g)(4)(i) of
this section and retains the notice in the
same location on its website through Oc-
tober 15 of the year following the calen-
dar year to which the statements relate (or
the first business day after October 15, if
October 15 falls on a Saturday, Sunday or
legal holiday); and
(3) Furnishes the statement to a re-
questing responsible individual within 30
days of the date the request is received. To
satisfy the requirement of this paragraph
(g)(4)(ii)(B)(3), a reporting entity may
furnish the statement electronically pursu-
ant to §1.6055-2(a)(2) through (a)(6).
* * * * *
(j) Applicability date. Except as other-
wise provided in this paragraph (j), this
section applies for calendar years be-
ginning after December 31, 2014. Para-
graphs (g)(1), (g)(4)(i), and (g)(4)(ii)
of this section apply for calendar years
beginning after December 31, 2021, but
reporting entities may choose to apply
paragraphs (g)(1), (g)(4)(i), and (g)(4)(ii)
of this section for calendar years begin-
ning after December 31, 2020. Except as
otherwise provided in this paragraph (j),
paragraph (g)(4), as contained in 26 CFR
part 1 edition revised as of April 1, 2021,
applies to calendar years ending after De-
cember 31, 2014, and beginning before
January 1, 2022.
Part 301—PROCEDURE AND
ADMINISTRATION
Par. 5. The authority citation for part
301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
* * * * *
Par. 6. Section 301.6056-1 is amended
by revising paragraphs (g)(1) and (m) to
read as follows:
§301.6056-1 Rules relating to reporting
by applicable large employers on health
insurance coverage offered under
employer-sponsored plans—
* * * * *
(g) * * *(1) Time for furnishing--Ex-
cept as otherwise provided in this para-
graph (g)(1), each statement required by
this section for a calendar year must be
furnished to a full-time employee on or
before January 31 of the year succeeding
the calendar year in accordance with ap-
plicable Internal Revenue Service proce-
dures and instructions. Applicable large
employers are granted an automatic, 30-
day extension of time in which to furnish
these statements.
* * * * *
(m) Applicability date. Except as oth-
erwise provided in this paragraph (m), this
section applies for calendar years begin-
ning after December 31, 2014. Paragraph
(g)(1) of this section applies for calen-
dar years beginning after December 31,
2021, but applicable large employers may

January 9, 2023 320 Bulletin No. 2023–2
choose to apply paragraph (g)(1) of this
section for calendar years beginning after
December 31, 2020. Except as otherwise
provided in this paragraph (m), paragraph
(g)(1), as contained in 26 CFR part 1 edi-
tion revised as of April 1, 2021, applies
to calendar years ending after December
31, 2014, and beginning before January 1,
2022.
Melanie R. Krause,
Acting Deputy Commissioner for
Services and Enforcement.
Approved: December 6, 2022.
Lily Batchelder,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on De-
cember 12, 2022, 4:15 p.m. and published in the is-
sue of the Federal Register for December 15, 2022,
87 FR 76569)

Bulletin No. 2023–2 321 January 9, 2023
Part III
26 CFR 54.9816-6T: Calculating the qualifying pay-
ment amounts in 2023
Notice 2023-4
SECTION 1. PURPOSE AND SCOPE
Pursuant to Treas. Reg. § 54.9816-
6T(c), 29 CFR 2590.716-6(c), and 45
CFR 149.140(c), this notice provides the
percentage increase for calculating the
qualifying payment amounts for items
and services furnished during 2023 for
purposes of sections 9816 and 9817 of the
Internal Revenue Code (Code), sections
716 and 717 of the Employee Retirement
Income Security Act of 1974 (ERISA),
and sections 2799A-1 and 2799A-2 of the
Public Health Service Act (PHS Act). This
notice was drafted in consultation with the
Departments of Labor and Health and Hu-
man Services. Similar guidance for items
and services furnished during 2022 was
published in Revenue Procedure 2022-
11, 2022-3 IRB 449, and Notice 2022-11,
2022-14 IRB 939.
1
Percentage increases
for calculating the qualifying payment
amounts for items and services furnished
in future years may be published in the an-
nual revenue procedure containing infla-
tion-adjusted items for the following tax
year.
SECTION 2. BACKGROUND
The No Surprises Act was enacted as
Title I of Division BB of the Consolidated
Appropriations Act, 2021.
2
The No Sur-
prises Act added sections 9816 and 9817
to the Code, sections 716 and 717 to ER-
ISA, and sections 2799A-1 and 2799A-2
to the PHS Act. These provisions provide
protections against surprise medical bills
in certain circumstances. Surprise medical
bills can occur when a patient unexpect-
edly receives health care from a provider,
facility, or provider of air ambulance ser-
vices that does not participate in the net-
work of the individual’s group health plan
or group or individual health insurance
coverage (an out-of-network or nonpartic-
ipating provider, facility, or provider of air
ambulance services).
3
Before the enactment of the No Surpris-
es Act, when the terms of a group health
plan or group or individual health insur-
ance coverage did not provide for cover-
age of the entire amount billed by a non-
participating provider, facility, or provider
of air ambulance services, the provider,
facility, or provider of air ambulance ser-
vices could balance bill the patient for the
amount in excess of the amount paid by the
plan or coverage and any applicable pa-
tient cost sharing (unless prohibited under
applicable state law). For non-emergency
services and air ambulance services, the
patient could also have been responsible
for out-of-network cost-sharing amounts,
which may have been higher than in-net-
work cost-sharing amounts. Under the No
Surprises Act, in certain circumstances,
the nonparticipating provider, facility, or
provider of air ambulance services can
no longer balance bill the patient for the
excess amount, and patient cost sharing
is generally limited to in-network levels.
The No Surprises Act and implementing
regulations
4
provide that, generally, in the
absence of an All-Payer Model Agreement
under section 1115A of the Social Securi-
ty Act or specified state law,
5
a patient’s
cost-sharing amount must be calculated
based on the lesser of the qualifying pay-
ment amount
6
or the amount billed by the
provider or facility. In the case of air am-
bulance services, the patient’s cost-sharing
amount must be calculated based on the
lesser of the qualifying payment amount
or the billed amount for the services.
Further, in the absence of an All-Payer
Model Agreement or specified state law,
7

the No Surprises Act and its implementing
regulations provide for a 30-business-day
open negotiation period for group health
plans or health insurance issuers offering
group or individual health insurance cov-
erage (plans and issuers) and the nonpar-
ticipating providers, facilities, or providers
of air ambulance services to determine the
amount to be paid by the plans or issuers
as the out-of-network rate.
8
If the parties
are unable to reach an agreement through
open negotiation, the No Surprises Act
provides for the out-of-network rate to
be determined by a certified independent
dispute resolution (IDR) entity through a
Federal IDR process set forth in sections
9816(c) and 9817(b) of the Code, sections
716(c) and 717(b) of ERISA, and sections
2799A-1(c) and 2799A-2(b) of the PHS
Act. The statute and implementing interim
final regulations issued in October 2021
9

and the final regulations issued in August
2022
10
provide that, under the Federal
IDR process, the certified IDR entity con-
siders the qualifying payment amount for
the item or service, among other addition-
al circumstances and information as pro-
vided for in the statute and implementing
regulations, in determining which offer to
select as the out-of-network rate.
Under § 54.9816-6T(c), 29 CFR
2590.716-6(c), and 45 CFR 149.140(c),
for an item or service furnished during
2022, plans and issuers must calculate
the qualifying payment amount by in-
creasing the median contracted rate (as
determined in accordance with § 54.9816-
1
https://www.irs.gov/pub/irs-drop/rp-22-11.pdf and https://www.irs.gov/pub/irs-drop/n-22-11.pdf.
2
Pub. L. 116-260, 134 Stat. 1182 (2020).
3
The protections against surprise billing additionally apply to health benefits plans offered by carriers under the Federal Employees Health Benefits (FEHB) Act pursuant to 5 U.S.C. 8902(p).
Accordingly, the guidance provided in this notice applies to FEHB carriers to the extent consistent with their contracts. See also 5 CFR 890.114.
4
86 FR 36872 (July 13, 2021).
5
If an All-Payer Model Agreement or specified state law applies, the applicable Agreement or law determines the cost-sharing amount. “Specified state law” is defined in § 54.9816-3T, 29
CFR 2590.716-3, and 45 CFR 149.30.
6
“Qualifying payment amount” is defined in § 54.9816-6T(a)(16), 29 CFR 2590.716-6(a)(16), and 45 CFR 149.140(a)(16).
7
If an All-Payer Model Agreement or specified state law applies, the applicable Agreement or law determines the out-of-network rate.
8
“Out-of-network rate” is defined in § 54.9816-3T, 29 CFR 2590.716-3, and 45 CFR 149.30.
9
86 FR 55980 (October 7, 2021).
10
87 FR 52618 (August 26, 2022).

January 9, 2023 322 Bulletin No. 2023–2
6T(b), 29 CFR 2590.716-6(b), and 45
CFR 149.140(b)) for the same or similar
item or service under such plan or cov-
erage, on January 31, 2019, by the com-
bined percentage increase as published by
the Department of the Treasury (Treasury
Department) and the Internal Revenue
Service (IRS) to reflect the percentage
increase in the consumer price index for
all urban consumers (U.S. city average)
(CPI-U) over 2019, such percentage in-
crease over 2020, and such percentage in-
crease over 2021.
11
Pursuant to Rev. Proc.
2022-11, for items and services provided
on or after January 1, 2022, and before
January 1, 2023, the combined percentage
increase to adjust the median contracted
rate for the same or similar item or service
under such plan or coverage, on January
31, 2019, is 1.0648523983. The revenue
procedure also provides that plans and is-
suers may round to the nearest dollar any
resulting qualifying payment amounts.
Pursuant to § 54.9816-6T(c)(3)(i), 29
CFR 2590.716-6(c)(3)(i), and 45 CFR
149.140(c)(3)(i), for an item or service
furnished during 2022, a plan or issuer
that does not have sufficient information
to calculate the median of the contracted
rates in 2019 for the same or similar item
or service provided in a geographic region
must calculate the qualifying payment
amount by first identifying the rate that
is equal to the median of the in-network
allowed amounts for the same or similar
item or service provided in the geographic
region in 2021, determined by the plan or
issuer through use of any eligible database,
and then increasing that rate by the per-
centage increase in the CPI-U over 2021.
Similarly, in the case of a newly covered
item or service furnished during the first
coverage year, when a plan or issuer does
not have sufficient information to calcu-
late the median of the contracted rates in
the first coverage year for the item or ser-
vice, the plan or issuer must calculate the
qualifying payment amount by using an
eligible database to determine the rate that
is equal to the median of the in-network
allowed amounts for the same or similar
item or service provided in the geographic
region in the year immediately preceding
the first coverage year, and then increasing
that rate by the percentage increase in the
CPI-U over the preceding year.
Under § 54.9816-6T(c)(3)(ii), 29
CFR 2590.716-6(c)(3)(ii), and 45 CFR
149.140(c)(3)(ii), for an item or service
furnished in a subsequent year (before
the first sufficient information year for the
item or service with respect to the plan or
coverage), the plan or issuer must calcu-
late the qualifying payment amount by
increasing the qualifying payment amount
determined for the item or service for the
year immediately preceding the subse-
quent year, by the percentage increase in
the CPI-U over the preceding year.
The percentage increase in the CPI-U
for items and services provided in 2022
over the preceding year is the average
CPI-U for 2021 over the average CPI-U
for 2020. Pursuant to Notice 2022-11, the
percentage increase from 2021 to 2022 is
1.0299772040. The notice also provides
that plans and issuers may round any re-
sulting qualifying payment amounts to the
nearest dollar.
Under § 54.9816-6T(c)(2)(i), 29
CFR 2590.716-6(c)(2)(i), and 45 CFR
149.140(c)(2)(i), with respect to a spon-
sor of a plan or issuer offering group or
individual health insurance coverage in a
geographic region in which the sponsor or
issuer did not offer any group health plan
or health insurance coverage in 2019, for
the first year in which the group health
plan or group or individual health insur-
ance coverage is offered in the region, if
the plan or issuer does not have sufficient
information to calculate the median of the
contracted rates for an item or service pro-
vided in the geographic region, the plan
or issuer must determine the qualifying
payment amount pursuant to § 54.9816-
6T(c)(3)(i), 29 CFR 2590.716-6(c)(3)(i),
and 45 CFR 149.140(c)(3)(i) for an item
or service furnished in 2022, as previously
discussed. For each subsequent year the
group health plan or group or individual
health insurance coverage is offered in the
region, the plan or issuer must calculate
the qualifying payment amounts by in-
creasing the qualifying payment amounts
so determined for items or services pro-
vided in the immediately preceding year,
by the percentage increase in the CPI-U
over the preceding year.
12
Under § 54.9816-6T(c)(4)(i), 29
CFR 2590.716-6(c)(4)(i), and 45 CFR
149.140(c)(4)(i), in the case of a plan or
issuer that does not have sufficient infor-
mation to calculate the median of the con-
tracted rates for the same or similar item
or service provided in a geographic region
and determine the qualifying payment
amount in accordance with the previous-
ly described methodology because the
item or service is billed under a new ser-
vice code, for items or services furnished
in 2022 (or for newly covered items and
services, during the first coverage year
for the item or service), the plan or issu-
er must calculate the qualifying payment
amounts pursuant to § 54.9816-6T(c)(4)
(i), 29 CFR 2590.716-6(c)(4)(i), and 45
CFR 149.140(c)(4)(i).
Under § 54.9816-6T(c)(4)(ii), 29
CFR 2590.716-6(c)(4)(ii), and 45 CFR
149.140(c)(4)(ii), for such an item or ser-
vice furnished in a subsequent year (be-
fore the first sufficient information year
for the item or service with respect to such
plan or coverage or before the first year
for which an eligible database has suffi-
cient information to calculate a rate under
§ 54.9816-6T(c)(3)(i), 29 CFR 2590.716-
6(c)(3)(i), and 45 CFR 149.140(c)(3)(i) in
the immediately preceding year), the plan
or issuer must calculate the qualifying
payment amount by increasing the quali-
fying payment amount determined for the
item or service for the year immediate-
ly preceding the subsequent year, by the
percentage increase in the CPI-U over the
preceding year.
11
The calculations of the qualifying payment amounts for anesthesia services, air ambulance services, and certain other items or services furnished during 2022 for which a plan or issuer has
sufficient information to calculate the median of the contracted rates in 2019 differ slightly, but all use the same formula for increasing a base rate by the combined percentage increase as
published by the Treasury Department and the IRS to reflect the percentage increase in the CPI-U over 2019 and subsequent years. See § 54.9816-6T(c)(1)(iii)-(vii), 29 CFR 2590.716-6(c)
(1)(iii)-(vii), and 45 CFR 149.140(c)(1)(iii)-(vii).
12
The calculations of the qualifying payment amounts for anesthesia services, air ambulance services, and certain other items or services furnished in a subsequent year differ slightly, but all
use the same formula for increasing the indexed median contracted rate determined for the item or service in the immediately preceding year by the percentage increase. See § 54.9816-6T(c)
(2)(ii), 29 CFR 2590.716-6(c)(2)(ii), and 45 CFR 149.140(c)(2)(ii).

Bulletin No. 2023–2 323 January 9, 2023
SECTION 3. GUIDANCE
The percentage increase in the CPI-U
over a preceding year is calculated by di-
viding the average CPI-U for the preceding
year by the average CPI-U for the year im-
mediately prior to the preceding year. For
this purpose, the average CPI-U for a year
is the average of the monthly CPI-Us pub-
lished by the Bureau of Labor Statistics of
the Department of Labor for the 12-month
period ending on August 31 of each year,
rounded to 10 decimal places. The percent-
age increase in the CPI-U for items and ser-
vices provided in 2023 over the preceding
year is the average CPI-U for 2022 over the
average CPI-U for 2021. Pursuant to this
calculation, the percentage increase from
2022 to 2023 is 1.0768582128. Further,
pursuant to this notice, plans and issuers
may round any resulting qualifying pay-
ment amounts to the nearest dollar.
.01 Adjusting qualifying payment
amounts based on January 31, 2019 rates.
For qualifying payment amounts calcu-
lated by increasing the median contracted
rate for 2019
13
, the qualifying payment
amounts for items and services furnished
in 2023 are determined by taking the
qualifying payment amounts calculated
for items and services furnished in 2022
and multiplying the 2022 adjusted quali-
fying payment amounts by the percent-
age increase from 2022 to 2023, that is,
1.0768582128.
For example: An item is furnished in
2023. The median contracted rate for the
item on January 31, 2019 was $1,500.
The 2022 adjusted qualifying payment
amount for the item was $1,597 ($1,500 x
1.0648523983). The 2023 adjusted qual-
ifying payment amount for the item is
$1,720 ($1,597 x 1.0768582128).
.02 Adjusting qualifying payment
amounts based on 2021 rates.
For items and services furnished in
2022, for which the qualifying payment
amounts were calculated by increasing the
median of the in-network allowed amounts
for the same or similar item or service pro-
vided in the geographic region in 2021,
drawn from any eligible database, by the
percentage increase from 2021 to 2022
14
,
the qualifying payment amounts for items
and services furnished in 2023 are deter-
mined by taking the qualifying payment
amounts calculated for the items and ser-
vices furnished in 2022 and multiplying
the 2022 adjusted qualifying payment
amounts by the percentage increase from
2022 to 2023 (that is, 1.0768582128).
For example: A newly covered service
for which the plan or issuer does not have
sufficient information to calculate the me-
dian of the contracted rates is furnished
in 2022. The median of the in-network
allowed amounts for the same or simi-
lar service provided in the geographic
region in 2021, drawn from an eligible
database, was $2,100. The 2022 adjusted
qualifying payment amount for the service
was $2,163 ($2,100 x 1.0299772040).
The 2023 adjusted qualifying payment
amount for the service is $2,329 ($2,163
x 1.0768582128).
The adjustment to the qualifying pay-
ment amounts will be applied similarly
for items and services covered by a new
plan or new group or individual health in-
surance coverage that was not offered in
a geographic region in a prior year. For
items and services first offered by a new
plan or new group or individual health in-
surance coverage in a geographic region
in 2022 for which the plan or issuer does
not have sufficient information to calcu-
late the median of the contracted rates for
the items or services provided in the geo-
graphic region
15
, the qualifying payment
amounts would be calculated by increas-
ing the median of the in-network allowed
amounts for the same or similar item or
service provided in the geographic region
in 2021, drawn from any eligible database,
by the percentage increase from 2021 to
2022 (1.0299772040). For that plan or
coverage, the qualifying payment amounts
for items and services furnished in 2023
is determined by taking the qualifying
payment amounts calculated for items and
services furnished in 2022 and multiply-
ing the 2022 adjusted qualifying payment
amounts by the percentage increase from
2022 to 2023, that is, 1.0768582128.
.03 Calculating qualifying payment
amounts when 2023 is the first coverage
year.
For newly covered items and services
furnished in 2023 for which the plan or
issuer does not have sufficient informa-
tion, when 2023 is the first coverage year
for the item or service with respect to
the plan or coverage, the qualifying pay-
ment amounts for the items and services
first furnished in 2023 are determined
by multiplying the median of the in-net-
work allowed amounts for the same or
similar item or service provided in the
geographic region in 2022, drawn from
any eligible database, by the percent-
age increase from 2022 to 2023, that is,
1.0768582128.
For example: A newly covered service
is furnished in 2023. The median of the
in-network allowed amounts for the ser-
vice provided in the geographic region in
2022, drawn from an eligible database,
was $3,000. The 2023 adjusted qualifying
payment amount for the service is $3,231
($3,000 x 1.0768582128).
SECTION 4. EFFECTIVE DATE
The effective date of this notice is Jan-
uary 1, 2023.
SECTION 5. DRAFTING
INFORMATION
The principal author of this notice is
Jason Sandoval of the Office of Associ-
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). For further information regarding
this notice, contact Jason Sandoval at 202-
317-5500 (not a toll-free number).
13
These qualifying payment amounts are calculated by increasing the median contracted rate for the same or similar item or service under the plan or coverage, on January 31, 2019, by the
combined percentage increase (2019, 2020, and 2021) published in Rev. Proc. 2022-11 (that is, 1.0648523983).
14
These qualifying payment amounts are calculated by multiplying the median of the in-network allowed amounts for the same or similar item or service provided in the geographic region
in 2021, drawn from any eligible database, by the percentage increase from 2021 to 2022 (that is, 1.0299772040).
15
These qualifying payment amounts are calculated by multiplying the median of the in-network allowed amounts for the same or similar item or service provided in the geographic region
in 2021, drawn from any eligible database, by the percentage increase from 2021 to 2022 (that is, 1.0299772040).

January 9, 2023 324 Bulletin No. 2023–2
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2023-5
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month aver-
age segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the interest
rate on 30-year Treasury securities under
§ 417(e)(3)(A)(ii)(II) as in effect for plan
years beginning before 2008 and the 30-
year Treasury weighted average rate under
§ 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to sin-
gle-employer plans (except for CSEC
plans under § 414(y)) pursuant to § 412.
Section 430(h)(2) specifies the inter-
est rates that must be used to determine
a plan’s target normal cost and funding
target. Under this provision, present val-
ue is generally determined using three
24-month average interest rates (“seg-
ment rates”), each of which applies to
cash flows during specified periods. To
the extent provided under § 430(h)(2)
(C)(iv), these segment rates are adjusted
by the applicable percentage of the 25-
year average segment rates for the period
ending September 30 of the year preced-
ing the calendar year in which the plan
year begins.
1
However, an election may
be made under § 430(h)(2)(D)(ii) to use
the monthly yield curve in place of the
segment rates.
Notice 2007-81, 2007-44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the target
normal cost and the funding target. Con-
sistent with the methodology specified in
Notice 2007-81, the monthly corporate
bond yield curve derived from November
2022 data is in Table 2022-11 at the end
of this notice. The spot first, second, and
third segment rates for the month of No-
vember 2022 are, respectively, 5.09, 5.60,
and 5.41.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the appli-
cable minimum and maximum percent-
ages of the corresponding 25-year aver-
age segment rates. The 25-year average
segment rates for plan years beginning
in 2021, 2022 and 2023 were published
in Notice 2020-72, 2020-40 I.R.B. 789,
Notice 2021-54, 2021-41 I.R.B. 457, and
Notice 2022-40, 2022-40 I.R.B. 266, re-
spectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corpo-
rate bond segment rates applicable for
December 2022 without adjustment for
the 25-year average segment rate limits
are as follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second Segment Third Segment
December 2022 1.95 3.50 3.85
Section 9706(a) of the American
Rescue Plan Act of 2021, Pub. L. 117-2
(the ARP), which was enacted on March
11, 2021, changed the 25-year average
segment rates and the applicable mini-
mum and maximum percentages used
under § 430(h)(2)(C)(iv) of the Code to
adjust the 24-month average segment
rates.
2
Prior to this change, the applica-
ble minimum and maximum percentages
were 85% and 115% for a plan year be-
ginning in 2021, and 80% and 120% for
a plan year beginning in 2022, respec-
tively. After this change, the applicable
minimum and maximum percentages are
95% and 105% for a plan year beginning
in 2021 or 2022. In addition, pursuant
to this change, any 25-year average seg-
ment rate that is less than 5% is deemed
to be 5%.
3
Pursuant to § 9706(c)(1) of the ARP,
these changes apply with respect to plan
years beginning on or after January 1,
2020. However, § 9706(c)(2) of the ARP
provides that a plan sponsor may elect not
to have these changes apply to any plan
year beginning before January 1, 2022.
4
The adjusted 24-month average seg-
ment rates set forth in the chart below
reflect § 430(h)(2)(C)(iv) of the Code as
amended by § 9706(a) of the ARP. These
adjusted 24-month average segment rates
apply only for plan years for which an
election under § 9706(c)(2) of the ARP is
not in effect. For a plan year for which such
an election does not apply, the 24-month
1
Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
2
Section 80602 of the Infrastructure Investment and Jobs Act, Pub. L. 117-58, makes further changes to the time periods for which specified applicable minimum and maximum percentages
apply.
3
Pursuant to this change, the 25-year averages of the first segment rate for 2021 and 2022 are increased to 5.00% because those 25-year averages as originally published are below 5.00%.
4
This election may be made either for all purposes for which the amendments under § 9706 of the ARP apply or solely for purposes of determining the adjusted funding target attainment
percentage under § 436 of the Code for the plan year.

Bulletin No. 2023–2 325 January 9, 2023
averages applicable for December 2022,
adjusted to be within the applicable min-
imum and maximum percentages of the
corresponding 25-year average segment
rates in accordance with § 430(h)(2)(C)
(iv) of the Code, are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years Begin-
ning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2021December 20224.755.366.11
2022December 20224.755.185.92
2023December 20224.755.005.74
The adjusted 24-month average seg-
ment rates set forth in the chart below do
not reflect the changes to § 430(h)(2)(C)
(iv) of the Code made by § 9706(a) of the
ARP. These adjusted 24-month average
segment rates apply only for plan years
for which an election under § 9706(c)(2)
of the ARP is in effect. For a plan year
for which such an election applies, the
24-month averages applicable for Decem-
ber 2022, adjusted to be within the appli-
cable minimum and maximum percentag-
es of the corresponding 25-year average
segment rates in accordance with § 430(h)
(2)(C)(iv) of the Code, are as follows:
Pre-ARP Adjusted 24-Month Average Segment Rates
For Plan Years Begin-
ning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2021December 20223.324.795.47
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to mul-
tiemployer plans pursuant to § 412. Sec-
tion 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation
described in § 431(c)(6)(A), based on the
plan’s current liability. Section 431(c)(6)
(E)(ii)(I) provides that the interest rate
used to calculate current liability for this
purpose must be no more than 5 percent
above and no more than 10 percent below
the weighted average of the rates of inter-
est on 30-year Treasury securities during
the four-year period ending on the last
day before the beginning of the plan year.
Notice 88-73, 1988-2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The rate of interest
on 30-year Treasury securities for No-
vember 2022 is 3.99 percent. The Service
determined this rate as the average of the
daily determinations of yield on the 30-
year Treasury bond maturing in August
2052 determined each day through Au-
gust 9, 2022 and the yield on the 30-year
Treasury bond maturing in November
2052 determined each day for the balance
of the month. For plan years beginning in
December 2022, the weighted average of
the rates of interest on 30-year Treasury
securities and the permissible range of
rate used to calculate current liability are
as follows:
Treasury Weighted Average Rates
For Plan Years Beginning In30-Year Treasury Weighted AveragePermissible Range 90% to 105%
December 20222.382.14 to 2.50
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Notice 2007-81 provides guide-
lines for determining the minimum pres-
ent value segment rates. Pursuant to that
notice, the minimum present value seg-
ment rates determined for November 2022
are as follows:
Minimum Present Value Segment Rates
Month First Segment Second Segment Third Segment
November 2022 5.09 5.60 5.41

January 9, 2023 326 Bulletin No. 2023–2
DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of Associate
Chief Counsel (Employee Benefits, Ex-
empt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development of
this guidance. For further information re-
garding this notice, contact Mr. Morgan at
202-317-6700 or Tony Montanaro at 626-
927-1475 not toll-free numbers).

Bulletin No. 2023–2 327 January 9, 2023
Table 2022-11
Monthly Yield Curve for November 2022
Derived from October 2022 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.54.9420.55.6340.55.3860.55.3180.55.27
1.05.0421.05.6241.05.3861.05.3181.05.27
1.55.1121.55.6141.55.3861.55.3181.55.27
2.05.1422.05.5942.05.3862.05.3182.05.27
2.55.1522.55.5842.55.3762.55.3182.55.27
3.05.1323.05.5743.05.3763.05.3183.05.27
3.55.1123.55.5643.55.3763.55.3083.55.27
4.05.0924.05.5544.05.3764.05.3084.05.27
4.55.0924.55.5444.55.3664.55.3084.55.27
5.05.1025.05.5345.05.3665.05.3085.05.27
5.55.1325.55.5245.55.3665.55.3085.55.27
6.05.1726.05.5146.05.3666.05.3086.05.27
6.55.2226.55.5046.55.3666.55.3086.55.27
7.05.2827.05.5047.05.3567.05.3087.05.27
7.55.3427.55.4947.55.3567.55.3087.55.27
8.05.4028.05.4848.05.3568.05.2988.05.26
8.55.4528.55.4848.55.3568.55.2988.55.26
9.05.5129.05.4749.05.3569.05.2989.05.26
9.55.5629.55.4749.55.3469.55.2989.55.26
10.05.6030.05.4650.05.3470.05.2990.05.26
10.55.6430.55.4650.55.3470.55.2990.55.26
11.05.6831.05.4551.05.3471.05.2991.05.26
11.55.7031.55.4551.55.3471.55.2991.55.26
12.05.7332.05.4452.05.3472.05.2992.05.26
12.55.7432.55.4452.55.3372.55.2992.55.26
13.05.7633.05.4453.05.3373.05.2993.05.26
13.55.7633.55.4353.55.3373.55.2993.55.26
14.05.7734.05.4354.05.3374.05.2894.05.26
14.55.7734.55.4254.55.3374.55.2894.55.26
15.05.7635.05.4255.05.3375.05.2895.05.26
15.55.7635.55.4255.55.3275.55.2895.55.26
16.05.7536.05.4156.05.3276.05.2896.05.26
16.55.7436.55.4156.55.3276.55.2896.55.26
17.05.7337.05.4157.05.3277.05.2897.05.26
17.55.7137.55.4057.55.3277.55.2897.55.25
18.05.7038.05.4058.05.3278.05.2898.05.25
18.55.6938.55.4058.55.3278.55.2898.55.25
19.05.6739.05.3959.05.3279.05.2899.05.25
19.55.6639.55.3959.55.3179.55.2899.55.25
20.05.6540.05.3960.05.3180.05.28100.05.25

January 9, 2023 328 Bulletin No. 2023–2
Sustainable Aviation Fuel
Credit; Registration;
Certificates; Request for
Public Comments
Notice 2023-6
SECTION 1. PURPOSE
This notice provides guidance on the
new sustainable aviation fuel credits under
§§ 40B and 6426(k) of the Internal Reve-
nue Code (Code) (collectively referred
to as a SAF credit or the SAF credit) and
related credit and payment rules under
§§ 34(a)(3), 38, 87, and 6427(e)(1). This
notice also provides rules related to the §
4101 registration requirements. Finally,
this notice requests comments from the
public related to the SAF credit to assist
the Department of the Treasury (Treasury
Department) and the Internal Revenue
Service (IRS) in developing additional
guidance on the SAF credit in the future.
SECTION 2. OVERVIEW
Section 13203 of Public Law 117-169,
136 Stat. 1818 (August 16, 2022), com-
monly known as the Inflation Reduction
Act of 2022, added § 40B and amended
§§ 38(b), 40A, 87, 4101(a), 6426, and
6427(e)(1), enacting a sustainable avia-
tion fuel credit, effective for certain fuel
mixtures containing sustainable aviation
fuel sold or used after December 31, 2022,
and prior to January 1, 2025.
The SAF credit is equal to the product
of— (1) the number of gallons of sustain-
able aviation fuel in a qualified mixture,
multiplied by (2) the sum of— (A) $1.25,
plus (B) the applicable supplementary
amount (as calculated under section 4.05
of this notice) with respect to such sus-
tainable aviation fuel. See §§ 40B(a) and
6426(k). In general, the applicable sup-
plementary amount increases the $1.25
base credit by $0.01 for each percentage
point by which the lifecycle greenhouse
gas emissions reduction percentage (as
defined in section 3.01(4) of this notice)
of the sustainable aviation fuel exceeds
50 percent. See section 3 of this notice for
the requirements of sustainable aviation
fuel and qualified mixtures; see section 4
of this notice for calculating the applica-
ble supplementary amount and lifecycle
greenhouse gas emissions reduction per-
centage.
For a claimant to qualify for the SAF
credit, §§ 40B(f)(1) and 6426(k)(3) re-
quire the producer or importer of the sus-
tainable aviation fuel to be registered with
the IRS under § 4101. See section 5 of this
notice for information on how a producer
or importer may register; see section 6.02
of this notice for which party is the proper
claimant.
A claimant who qualifies for the SAF
credit may either: (1) claim an excise tax
credit under § 6426(k), in which case the
claimant first claims the SAF credit against
its § 4081 excise tax liability for a particu-
lar quarter and, to the extent that the credit
exceeds the claimant’s § 4081 excise tax
liability for that quarter, the claimant may
claim either a payment under § 6427(e)(1)
or a refundable income tax credit under
§ 34(a)(3); or (2) claim a nonrefundable §
38 general business income tax credit un-
der § 38(b)(35) and include the amount of
the § 40B credit in gross income under §
87. See section 6 of this notice regarding
the procedures for making a claim as well
as the claim requirements.
Sections 40B and 6426(k) allow a SAF
credit for the production of a qualified
mixture which, broadly speaking, is a mix-
ture of sustainable aviation fuel and kero-
sene. Section 40B(d)(1)(A) defines sus-
tainable aviation fuel by reference to two
American Society for Testing and Materi-
als (ASTM) specifications: ASTM D7566
and certain Fischer Tropsch provisions of
ASTM D1655 Annex A1. The referenced
ASTM specifications describe two distinct
processes to produce a qualified mixture.
Generally, under ASTM D7566, a person
produces a qualified mixture by mixing a
synthetic blending component with ker-
osene. In contrast, under ASTM D1655
Annex A1, a person produces a qualified
mixture by co-processing an appropri-
ate feedstock with a petroleum feedstock
during the production of kerosene that re-
sults in a qualified mixture, although no
separate step of mixing a sustainable avia-
tion fuel with kerosene occurs.
This notice primarily addresses the
SAF credit requirements applicable to a
qualified mixture produced under ASTM
D7566. Treasury and the IRS, in consul-
tation with the Department of Transpor-
tation and the Federal Aviation Admin-
istration, understand that no jet fuel is
currently produced in the United States
under ASTM D1655 Annex A1 that would
qualify for the SAF credit. As a result, this
notice provides limited information with
respect to ASTM D1655 Annex A1 and
requests comments with respect to ASTM
D1655 Annex A1 so that future guidance
may accurately address these types of
claims.
SECTION 3. SUSTAINABLE
AVIATION FUEL; QUALIFIED
MIXTURES; TAXATION OF
SUSTAINABLE AVIATION FUELS
AND QUALIFIED MIXTURES
.01 Sustainable aviation fuel. Under
§ 40B(d)(1), the term sustainable aviation
fuel means the portion of liquid fuel that is
not kerosene that (i) either (A) meets the
specifications of “ASTM D7566” (as de-
fined in section 3.01(1)(a) of this notice to
mean the ASTM D7566 Annexes), or (B)
meets the specifications of ASTM D1655
Annex A1 (as defined in section 3.01(1)
(b) of this notice); and (ii) satisfies the
requirements of section 3.01(2) through
(4) of this notice regarding sustainability.
A liquid fuel that meets the specifications
of one of the ASTM D7566 Annexes or
meets the specifications of ASTM D1655
Annex A1, but does not meet the require-
ments of section 3.01(2) through (4) of
this notice is ineligible for the SAF credit.
Sustainable aviation fuel may be cat-
egorized as either (i) a SAF synthetic
blending component or (ii) a co-processed
liquid fuel that was produced by co-pro-
cessing petroleum with synthesized hy-
drocarbons derived from synthesis gas
via the Fischer Tropsch process (FT hy-
drocarbons). This notice refers to a liquid
fuel that meets the specifications of one of
the ASTM D7566 Annexes and that sat-
isfies the requirements of 3.01(2) through
(4) of this notice as a SAF synthetic blend-
ing component. This notice refers to a liq-
uid fuel that meets the specifications of
ASTM D1655 Annex A1, in which the FT
hydrocarbons were derived from biomass
that satisfies the requirements of section
3.01(2) through (4) of this notice as a SAF
co-processed qualified mixture. FT hydro-
carbons, which are derived from biomass

Bulletin No. 2023–2 329 January 9, 2023
that satisfies the requirements of section
3.01(2) through (4) of this notice, are re-
ferred to as SAF FT hydrocarbons.
(1) ASTM International specifications.
For purposes of this notice, references to
ASTM or ASTM International Standard
are references to specifications published
by ASTM International (formerly ASTM).
For availability of ASTM specifications,
see § 48.4081-1(d) of the Manufacturers
and Retailers Excise Tax Regulations (26
CFR part 48).
(a) ASTM D7566 Annexes. The term
ASTM D7566 Annexes means any of the
annexes in ASTM D7566 that provide
the specifications for a pathway to create
a synthetic blending component that can
be blended with ASTM D1655 kerosene
(as defined in section 3.02(2)(a) of this no-
tice) to make a qualified mixture.
(b) ASTM D1655 Annex A1. The term
ASTM D1655 Annex A1 means the Fisch-
er Tropsch provisions of ASTM D1655
Annex A1 that are contained in section
A1.2.2.2, which provides a pathway for
producing a liquid fuel by co-processing
up to five percent of FT hydrocarbons
with petroleum to make a qualified mix-
ture. For purposes of this notice, the term
petroleum includes any conventionally
sourced hydrocarbons permitted under
ASTM D1655 Annex A1.
Liquid fuel produced under section
A1.2.2.1 does not qualify for the SAF
credit because section A1.2.2.1 defines a
pathway for producing a liquid fuel from
co-processing an applicable material (or
materials derived from an applicable ma-
terial) with a feedstock that is not biomass
(for example, petroleum), which § 40B(d)
(1)(B) excludes from the SAF credit. See
section 3.01(2) of this notice.
(2) Not derived from co-processing ap-
plicable materials. To qualify as sustain-
able aviation fuel, the liquid fuel must not
be derived from co-processing an “appli-
cable material” (or materials derived from
an applicable material) with a feedstock
that is not biomass (within the meaning of
§ 45K(c)(3) of the Code). Section 40B(d)
(2)(A) defines the term applicable mate-
rial for this purpose to mean (i) mono-
glycerides, diglycerides, and triglycerides,
(ii) free fatty acids, and (iii) fatty acid es-
ters. Section 45K(c)(3) defines the term
biomass to mean any organic material
other than (A) oil and natural gas (or any
product thereof), and (B) coal (including
lignite) or any product thereof.
(3) Not derived from palm fatty acid
distillates or petroleum. To qualify as sus-
tainable aviation fuel, the liquid fuel must
not be derived from palm fatty acid distil-
lates or petroleum.
(4) Lifecycle greenhouse gas emissions
reduction percentage. To qualify as sus-
tainable aviation fuel, the liquid fuel must
have been certified in accordance with
§ 40B(e) as having a lifecycle greenhouse
gas emissions reduction percentage of at
least 50 percent. Section 40B(e) defines
the term lifecycle greenhouse gas emis-
sions reduction percentage to mean, with
respect to any sustainable aviation fuel, the
percentage reduction in lifecycle green-
house gas emissions achieved by such
fuel as compared with petroleum-based
jet fuel, as defined in accordance with (i)
the most recent Carbon Offsetting and Re-
duction Scheme for International Aviation
(CORSIA) that has been adopted by the
International Civil Aviation Organization
(ICAO) with the agreement of the United
States and is set out in Annex 16 - Environ-
mental Protection: Carbon Offsetting and
Reduction Scheme for International Avi-
ation (CORSIA) (2018), https://elibrary.
icao.int/home/product-details/229739,
and related documents, or (2) any simi-
lar methodology that satisfies the criteria
under § 211(o)(1)(H) of the Clean Air Act
(42 U.S.C. 7545(o)(1)(H)), as in effect on
August 16, 2022. See section 4.04 of this
notice for a safe harbor to calculate the
lifecycle greenhouse gas emissions reduc-
tion percentage.
.02 Qualified mixture.
(1) Requirements. Under § 40B(c), a
qualified mixture means a mixture of sus-
tainable aviation fuel and kerosene, but
only if— (1) such mixture is produced by
the taxpayer in the United States (defined
in § 7701(a)(9) of the Code to mean the
states and the District of Columbia); (2)
such mixture is used by the taxpayer (or
sold by the taxpayer for use) in an air-
craft; (3) such sale or use is in the ordinary
course of a trade or business of the taxpay-
er; and (4) the transfer of such mixture to
the fuel tank of such aircraft occurs in the
United States.
A qualified mixture may be produced
by either mixing a SAF synthetic blending
component with kerosene (to produce a
SAF qualified mixture; see section 3.02(2)
of this notice) or by co-processing SAF
FT hydrocarbons with petroleum to pro-
duce a co-processed liquid fuel (which is
a SAF co-processed qualified mixture; see
section 3.02(3) of this notice).
(2) SAF qualified mixture. A SAF qual-
ified mixture means a mixture of a SAF
synthetic blending component (within the
meaning of section 3.01 of this notice)
with ASTM D1655 kerosene (as defined
in section 3.02(2)(a) of this notice) that
meets the requirements of ASTM D7566
(as defined in section 3.02(2)(b) of this
notice) and which may be regarded as
ASTM D1655 compliant SAF.
(a) ASTM D1655 kerosene and ASTM
D1655 compliant SAF. The term ASTM
D1655 kerosene means petroleum-based
kerosene that meets the specifications
set forth in ASTM D1655 and does not
include liquid fuel co-processed with FT
hydrocarbons or the addition of a synthet-
ic blending component.
The term ASTM D1655 compliant
SAF means ASTM D1655 kerosene that
has been blended with a SAF synthetic
blending component described in a spe-
cific ASTM D7566 Annex and meets the
batch specifications described in ASTM
D7566, Table 1. It also means kerosene
produced by co-processing SAF FT hy-
drocarbons with petroleum under ASTM
D1655 Annex A1. Once the mixture meets
those batch specifications or is produced
under ASTM D1655 Annex A1, the mix-
ture may be regarded as jet fuel under
ASTM D1655. ASTM D1655 compliant
SAF is fully fungible with ASTM D1655
kerosene.
The terms ASTM D1655 kerosene
and ASTM D1655 compliant SAF are not
ASTM designations, but rather are used
in this notice to distinguish between two
types of fuel (for federal excise tax pur-
poses) that qualify as jet fuel under the
ASTM D1655 specifications for jet fuel.
(b) ASTM D7566. The term ASTM
D7566 means the batch specifications set
forth under ASTM D7566, Table 1, which
includes the blending requirements for
each synthetic blending component and
the overall specifications and require-
ments for the blended mixture to be re-
garded as ASTM D1655 compliant SAF.
Blending percentage requirements for
various synthetic blending components

January 9, 2023 330 Bulletin No. 2023–2
with ASTM D1655 kerosene are listed in
section 6 of ASTM D7566 and range from
10 to 50 percent.
(3) SAF co-processed qualified mix-
ture. A SAF co-processed qualified mix-
ture means a co-processed liquid fuel that
meets the requirements of ASTM D1655
Annex A1 (within the meaning of section
3.01(1)(b) of this notice) and in which the
biomass used to create the FT hydrocar-
bons satisfies the requirements of section
3.01(2) through (4) of this notice.
ASTM D1655 Annex A1 provides a
pathway for producing a liquid fuel by
co-processing FT hydrocarbons with pe-
troleum that results in a qualified mixture
if the producer uses SAF FT hydrocar-
bons. This process is functionally different
from mixing two distinct products, such as
a synthetic blending component and kero-
sene, to create a qualified mixture. Here,
petroleum-based hydrocarbons and up to
five percent of SAF FT hydrocarbons are
processed together to produce kerosene,
a portion of which was derived from sus-
tainable sources. Before processing, nei-
ther the petroleum-based hydrocarbons
nor the SAF FT hydrocarbons qualify as
kerosene.
As a result, a SAF co-processed qual-
ified mixture must be produced in the
United States. A co-processed liquid fuel
that is imported into the United States is
ineligible for the SAF credit. The require-
ment that the SAF co-processed qualified
mixture be produced in the United States
is not met by mixing co-processed liquid
fuel with additional ASTM D1655 kero-
sene or ASTM D1655 compliant SAF (as
defined in section 3.02(2)(a) of this no-
tice) in the United States.
Only the portion of the SAF co-pro-
cessed qualified mixture attributable to the
SAF FT hydrocarbons (derived from bio-
mass) qualifies for the SAF credit. Con-
versely, no portion of the kerosene derived
from a petroleum-based source in a SAF
co-processed qualified mixture qualifies
for the SAF credit.
.03 Taxation of sustainable aviation fu-
els and qualified mixtures.
(1) In general.
(a) Taxable fuel. Section 4081(a)(1)
imposes an excise tax on certain removals,
entries, and sales of taxable fuel. Section
4083(a) defines taxable fuel as gasoline,
diesel fuel, and kerosene. The term kero-
sene, for the purpose of kerosene-type jet
fuel, means any liquid covered by ASTM
D1655 or military specification MIL–
DTL–5624T (Grade JP–5) or MIL–DTL–
83133E (Grade JP–8).
(b) Blended taxable fuel. Section
4081(b)(1) imposes an excise tax on tax-
able fuel removed or sold by the “blender”
thereof, subject to certain credits provided
in § 4081(b)(2). Section 48.4081-1(b) de-
fines blender as any person that produces
blended taxable fuel. Section 48.4081-1(c)
(1)(i) generally defines the term blended
taxable fuel as any taxable fuel that is pro-
duced outside the bulk transfer/terminal
system by mixing (A) taxable fuel with
respect to which tax has been imposed
under § 4041(a)(1) or 4081(a) (other than
taxable fuel for which a credit or payment
has been allowed) and (B) any other liquid
on which tax has not been imposed under
§ 4081.
(2) SAF synthetic blending component.
A SAF synthetic blending component will
not be treated as a taxable fuel for purpos-
es of the excise tax imposed on taxable
fuel under § 4081. A liquid fuel produced
under the ASTM D7566 Annexes can-
not, by definition, meet the specifications
of ASTM D1655 until it is blended with
kerosene. Accordingly, a SAF synthet-
ic blending component is not treated as
a taxable fuel for purposes of § 4081(a).
However, the SAF synthetic blending
component is taxable under § 4041(a) or
(c) if it is used in a diesel-powered high-
way vehicle or a diesel-powered train, or
as fuel in aviation.
(3) SAF qualified mixture. After a
SAF qualified mixture is produced, the
entire mixture is taxable under § 4081.
The SAF qualified mixture is taxable un-
der § 4081(a) if produced within the bulk
transfer/terminal system. Alternatively,
the SAF qualified mixture is taxable under
§ 4081(b) if it is produced with previous-
ly-taxed kerosene outside the bulk trans-
fer/terminal system (subject to the credit
for previously-taxed fuel under § 4081(b)
(2)).
(4) Co-processed liquid fuel and SAF
co-processed qualified mixture. Both
co-processed liquid fuel and a SAF
co-processed qualified mixture meet the
specifications of ASTM D1655 and are
therefore kerosene. As a result, any prod-
uct produced under ASTM D1655 An-
nex A1 is a taxable fuel for purposes of
§ 4081(a).
SECTION 4. LIFECYCLE
GREENHOUSE GAS EMISSIONS
REDUCTION PERCENTAGE AND
APPLICABLE SUPPLEMENTARY
AMOUNT
.01 Applicability. The methods of de-
termining the lifecycle greenhouse gas
emissions reduction percentage and the
applicable supplementary amount under
section 4 of this notice apply only to a
SAF qualified mixture.
.02 In general. The SAF synthetic
blending component must be certified,
in accordance with § 40B(e), as having
a lifecycle greenhouse gas emissions re-
duction percentage of at least 50 percent.
See section 4.04 of this notice. This re-
quirement also applies to § 6426(k). See
§ 6426(k)(2).
Once the SAF synthetic blending com-
ponent meets the minimum 50 percent
reduction threshold, the lifecycle green-
house gas emissions reduction percentage
is then used to calculate the applicable
supplementary amount of the SAF credit
under § 40B(b) or 6426(k). The applica-
ble supplementary amount increases the
$1.25 base credit by $0.01 for each whole
percentage point by which the lifecycle
greenhouse gas emissions reduction per-
centage with respect to such fuel exceeds
50 percent. The applicable supplementary
amount determined under §§ 40B(b) and
6426(k) is calculated in $0.01 increments
and cannot exceed $0.50.
.03 Lifecycle greenhouse gas emissions
of petroleum-based jet fuel. Until further
notice, for purposes of calculating the life-
cycle greenhouse gas emissions reduction
percentage, the IRS will treat the lifecy-
cle greenhouse gas emissions of petro-
leum-based jet fuel as equal to 89 grams
of carbon dioxide equivalent per mega-
joule of energy or 89 gCO2e/MJ as the
baseline. This is the standard adopted by
the ICAO. See Annex 16 - Environmen-
tal Protection: Carbon Offsetting and Re-
duction Scheme for International Aviation
(CORSIA) (2018), https://elibrary.icao.
int/home/product-details/229739.
.04 Calculating the lifecycle green-
house gas emissions reduction percent-
age; safe harbor. The IRS will accept a

Bulletin No. 2023–2 331 January 9, 2023
lifecycle greenhouse gas emissions re-
duction percentage calculated from the
ICAO’s most recent publication of the
CORSIA Default Life Cycle Emissions
Values for CORSIA Eligible Fuels. At the
time of publication of this notice, the most
recently published version (Fourth Edi-
tion, June 2022) is available at: https://
www.icao.int/environmental-protection/
CORSIA/Pages/CORSIA-Eligible-Fuels.
aspx.
The IRS will also accept a lifecycle
greenhouse gas emissions reduction per-
centage calculated from the ICAO’s most
recent publication of the CORSIA Meth-
odology for Calculating Actual Life Cycle
Emissions Values. At the time of publica-
tion of this notice, the most recently pub-
lished version (Third Edition, June 2022)
is available at: https://www.icao.int/en-
vironmental-protection/CORSIA/Pages/
CORSIA-Eligible-Fuels.aspx.
The lifecycle greenhouse gas emissions
reduction percentage is calculated by mul-
tiplying a fraction, the numerator of which
is the baseline for the lifecycle greenhouse
gas emissions of petroleum-based jet fuel
(LC) minus the lifecycle emissions value
(LSf), and the denominator of which is
the baseline (LC), by 100 percent ([(LC -
LSf)/ LC] × 100% = lifecycle greenhouse
gas emissions reduction percentage). The
lifecycle greenhouse gas emissions reduc-
tion percentage must be rounded down to
the nearest whole percent.
The registered producer or importer of
the SAF synthetic blending component
must record the lifecycle greenhouse gas
emissions reduction percentage on the Cer-
tificate for SAF Synthetic Blending Com-
ponent. See section 7.02 of this notice.
.05 Calculating the applicable supple-
mentary amount. To calculate the applica-
ble supplementary amount for purposes of
§§ 40B(b) and 6426(k), subtract 50 from
the lifecycle greenhouse gas emissions
reduction percentage, then multiply that
number by the applicable rate for the sup-
plementary amount (currently $0.01) ([life-
cycle greenhouse gas emissions reduction
percentage – 50] × applicable rate for the
supplementary amount). The applicable
supplementary amount under §§ 40B(b)
and 6426(k) must be calculated using the
same methodology used to determine the
lifecycle greenhouse gas emissions reduc-
tion percentage under § 40B(e).
The registered producer or importer of
the SAF synthetic blending component
must record the applicable supplementary
amount on the Certificate for SAF Syn-
thetic Blending Component. See section
7.02 of this notice.
.06 Example. A blender used 100,000
gallons of a SAF synthetic blending com-
ponent to produce a SAF qualified mix-
ture. The SAF synthetic blending compo-
nent was produced via a pathway that has
a lifecycle carbon dioxide emission equiv-
alent of 28.9 grams per megajoule of ener-
gy. To calculate the amount of the credit,
first calculate the lifecycle greenhouse gas
emissions reduction percentage (rounding
down to the nearest whole percent): [(89
gCO2e/MJ – 28.9 gCO2e/MJ)/ 89 gCO2e/
MJ] × 100% = 67.5%, rounded down to
67%.
Because the lifecycle greenhouse gas
emissions reduction percentage is at least
50 percent, the SAF synthetic blending
component qualifies for the $1.25/gallon
credit. Additionally, the SAF synthetic
blending component qualifies for the ap-
plicable supplementary amount, which is
calculated by subtracting 50 from the life-
cycle greenhouse gas emissions reduction
percentage (67), and then multiplying by
the applicable rate ($0.01): (67 – 50) ×
$0.01 = $0.17 per gallon.
The SAF credit is calculated as fol-
lows: 100,000 gallons × ($1.25 + $0.17)
= $142,000.00.
SECTION 5. REGISTRATION;
SUSTAINABLE AVIATION
FUEL; BLENDERS OF SAF
SYNTHETIC BLENDING
COMPONENTS; PRODUCERS OF
SAF CO-PROCESSED QUALIFIED
MIXTURES
.01 Registration.
(1) In general. Section 4101(a)(1)
provides that every person producing or
importing sustainable aviation fuel must
register with the Secretary at such time, in
such form and manner, and subject to such
terms and conditions, as the Secretary may
by regulations prescribe. Section 48.4101-
1 provides the registration requirements
for fuel registrants.
Section 40B(f) provides that no SAF
credit is allowed with respect to any sus-
tainable aviation fuel unless the producer
or importer of such fuel is registered with
the Secretary under § 4101, and provides
such information with respect to such fuel
as the Secretary may require for purposes
of carrying out § 40B, including certifica-
tion (in such form and manner as the Sec-
retary prescribes) from an unrelated par-
ty demonstrating compliance with— (1)
any general requirements, supply chain
traceability requirements, and information
transmission requirements established un-
der the CORSIA described in § 40B(e)(1),
or (2) in the case of any methodology es-
tablished under § 40B(e)(2), requirements
similar to the requirements described in
§ 40B(f)(2)(A)(i). See also § 6426(k)(3).
Until further notice, the IRS will treat
the producer or importer of a SAF syn-
thetic blending component and the Unit-
ed States producer of a SAF co-processed
qualified mixture as the persons required
to register under § 4101. The IRS will
not register an importer of a co-processed
liquid fuel or an importer of a SAF quali-
fied mixture as an importer of sustainable
aviation fuel due to the requirement that a
qualified mixture be produced in the Unit-
ed States. See § 40B(c)(1).
(2) Procedure for registering. Applica-
tion for registration is made on Form 637,
Application for Registration (For Certain
Excise Tax Activities), under Activity Let-
ter “SA,” in accordance with the instruc-
tions for that form. The IRS is revising
Form 637 to add Activity Letter “SA.”
Until the revised Form 637 is released, ap-
plicants may use the current Form 637 by
writing in “Activity Letter SA” and pro-
viding the following:
(a) The annual volume of the sustain-
able aviation fuel the applicant produces;
(b) The locations and a description of
the applicant’s production facilities;
(c) The feedstocks and sources of feed-
stocks used to produce the sustainable avi-
ation fuel;
(d) A statement indicating whether the
applicant produces sustainable aviation
fuel under an ASTM D7566 Annex or
ASTM D1655 Annex A1, and if appli-
cable, the specific ASTM D7566 Annex
under which the SAF synthetic blending
component is produced;
(e) A sample Certificate of Analysis (as
defined in section 6.04(3) of this notice)
for the type of sustainable aviation fuel the
applicant produces, demonstrating confor-

January 9, 2023 332 Bulletin No. 2023–2
mance with either an ASTM D7566 An-
nex or ASTM D1655 Annex A1;
(f) Certification from the Internation-
al Sustainability and Carbon Certification
(ISCC), Roundtable on Sustainable Bio-
materials (RSB), or other unrelated par-
ty demonstrating compliance with— (i)
any general requirements, supply chain
traceability requirements, and information
transmission requirements established un-
der CORSIA, which has been adopted by
the ICAO with the agreement of the United
States, or (ii) any similar methodology that
satisfies the criteria under section 211(o)(1)
(H) of the Clean Air Act (42 U.S.C. 7545(o)
(1)(H)), as in effect on August 16, 2022;
(g) Certification in accordance with
§ 40B(e) that the SAF synthetic blending
component has a lifecycle greenhouse gas
emissions reduction percentage of at least
50 percent;
(h) The names and addresses of any
person(s) acting for the applicant as an
agent or broker in buying, selling, or
transporting any sustainable aviation fuel;
(i) The business entities to which the
applicant sells sustainable aviation fuel;
(j) The business entities from or with
which the applicant buys, trades, trans-
fers, or exchanges any sustainable avia-
tion fuel; and
(k) The annual volume of the sustain-
able aviation fuel the applicant buys, sells,
trades, transfers, or exchanges.
(3) Requirements. The IRS will regis-
ter an applicant with Activity Letter “SA”
only if the IRS— (A) concludes that the
applicant is engaged as a producer or im-
porter of a SAF synthetic blending com-
ponent or the producer of a SAF co-pro-
cessed qualified mixture, or is likely to
become so engaged within a reasonable
time after being registered under § 4101;
and (B) is satisfied with the filing, deposit,
payment, reporting, and claim history for
all federal taxes of the applicant and any
related person (as defined in § 48.4101-
1(b)(5)).
The IRS will not consider an applicant
likely to become engaged in the business
of producing or importing a SAF synthetic
blending component or producing a SAF
co-processed qualified mixture unless the
producer or importer (as applicable) can
provide certification from an unrelated
party demonstrating compliance with
§ 40B(d)(1)(D) and (f)(2)(A).
(4) Certification demonstrating com-
pliance with § 40B(f)(2)(A); safe harbor.
The IRS will consider a producer or im-
porter of a SAF synthetic blending com-
ponent or the producer of a SAF co-pro-
cessed qualified mixture to meet the
requirements of § 40B(f)(2)(A), relating
to the sustainability requirements of COR-
SIA, if the producer or importer (as appli-
cable) has a valid, relevant certificate from
ISCC, RSB, or other ICAO-approved sus-
tainability certification scheme. At the
time of publication of this notice, the most
recently published version (First Edition,
November 2020) of CORSIA Approved
Sustainability Certification Schemes,
which lists ICAO-approved sustainabil-
ity certification schemes, is available at
https://www.icao.int/environmental-pro-
tection/CORSIA/Pages/CORSIA-Eligi-
ble-Fuels.aspx.
.02 Blenders of SAF synthetic blending
components and ASTM D1655 kerosene
used to produce SAF qualified mixtures.
Section 4101 and § 48.4101-1 require
any person who produces taxable fuel to
be registered. Section 4083(a)(1) defines
taxable fuel to include kerosene, which
for jet fuel means ASTM D1655 kero-
sene (and ASTM D7566 and D1655 com-
pliant SAF). The person who blends the
SAF synthetic blending component with
ASTM D1655 kerosene to produce a SAF
qualified mixture produces ASTM D1655
compliant SAF, which meets the specifi-
cations of ASTM D1655 and is a taxable
fuel.
As a result, the blender is required to
be registered either under Activity Letter
“S” if the blending occurs within the bulk
transfer/terminal system (that is, above the
rack) or under Activity Letter “M” if the
blending occurs outside the bulk transfer/
terminal system (that is, below the rack).
Pursuant to § 48.4101-1(h)(1)(v), each
registrant must notify the IRS of any
change in the information the registrant
submitted in connection with its applica-
tion for registration within 10 days after
the change occurs. A previously-registered
“S” registrant or a previously-registered
“M” registrant that begins producing SAF
qualified mixtures must inform the IRS of
this change by contacting the IRS office
with which the registrant is registered.
.03 Producers of SAF co-processed
qualified mixtures and co-processed liq-
uid fuel. As stated above, § 4101 and §
48.4101-1 require any person who pro-
duces taxable fuel to be registered. The
person who produces a SAF co-processed
qualified mixture is also producing kero-
sene, a taxable fuel under § 4083(a)(1).
As a result, the producer is required to be
registered under Activity Letter “S” in ad-
dition to Activity Letter “SA.”
A person who produces co-processed
liquid fuel (regardless of whether it quali-
fies for the SAF credit or as a SAF co-pro-
cessed liquid fuel) is also producing kero-
sene. As a result, the producer is required
to be registered under Activity Letter “S.”
In addition, a previously-registered “S”
registrant that begins producing co-pro-
cessed liquid fuel or a SAF co-processed
qualified mixture must inform the IRS of
this change by contacting the IRS office
with which the registrant is registered.
SECTION 6. CLAIMS; MAKING A
CLAIM; CLAIM REQUIREMENTS
.01 In general. In order to qualify for
a SAF credit, the claimant must produce,
then use or sell for use, a qualified mixture
that meets all requirements set forth in this
notice. The producer or importer of the
sustainable aviation fuel must also be reg-
istered under § 4101. See also §§ 40B(f)
(1), 6426(k)(3). See section 6.04 of this
notice for the claim requirements applica-
ble to a SAF qualified mixture produced
under ASTM D7566.
.02 Claimant. The person eligible to
claim the SAF credit is the person who
produces the qualified mixture, assuming
all other statutory requirements are met.
With respect to a SAF qualified mixture,
the person who produces the SAF quali-
fied mixture does not have to be the same
person that produced or imported the SAF
synthetic blending component. With re-
spect to a SAF co-processed qualified
mixture, the person who produces the
SAF co-processed qualified mixture is the
proper claimant.
.03 Making a claim.
(1) Excise tax claims under §§ 6426(k)
and 6427(e)(1); refundable income tax
claims under § 34(a)(3).
(a) In general. First, the claimant must
claim an excise tax SAF credit under
§ 6426(k), along with any credit under §
6426(c) or (e) against its § 4081 excise tax

Bulletin No. 2023–2 333 January 9, 2023
liability. To the extent that the SAF cred-
it under § 6426(k) (along with the sum of
any credit under § 6426(c) or (e)) exceeds
the claimant’s § 4081 liability for a par-
ticular quarter, the claimant may claim a
payment under § 6427(e)(1) or a refund-
able income tax credit under § 34(a)(3).
A claimant may only make one claim for
each gallon of sustainable aviation fuel
used in a qualified mixture. A claimant
may not make a claim under § 6427(e)(1)
or § 34(a)(3) for an amount that will be
claimed or is required to be claimed under
§ 6426(k).
(b) Procedure for making a claim.
A claimant claiming an excise tax SAF
credit under § 6426(k) must first make the
claim on a Form 720, Quarterly Federal
Excise Tax Return, if reporting excise tax
liability, in accordance with the instruc-
tions for that form. For federal income tax
purposes, a claimant’s expense for the §
4081 excise tax, whether taken as a deduc-
tion or as a component of cost of goods
sold, is reduced by the amount of the ex-
cise tax credit under § 6426(k). See gener-
ally Exxon Mobil Corp. v. United States,
43 F.4th 424 (5th Cir. 2022).
The payment under § 6427(e)(1) is
claimed on Form 720 or Form 8849,
Schedule 3, Certain Fuel Mixtures and
the Alternative Fuel Credit, in accordance
with the instructions for those forms. A
person may not make a claim on a Form
8849, Schedule 3 for an amount that is
claimed (or will be claimed) on Form 720,
Form 720X, Amended Quarterly Federal
Excise Tax Return, or Form 4136, Credit
for Federal Tax Paid on Fuels.
The § 34(a)(3) refundable income tax
credit is claimed on Form 4136 in accor-
dance with the instructions for that form,
for amounts otherwise allowable under §
6427(e)(1), but that were not claimed on
Form 720 or Form 8849, Schedule 3.
Although the SAF credit applies to fuel
sold or used after December 31, 2022, a
claimant will be ineligible to make a claim
immediately after the credit goes into ef-
fect due to the registration requirements
imposed by §§ 40B and 6426(k). In gener-
al, a claimant will be able to file an amend-
ed return (Form 720X) to claim a credit
under § 6426(k) with respect to qualified
mixtures produced beginning on January
1, 2023, once the appropriate persons are
registered and the other requirements of
this notice are met. Similarly, a claimant
will be able to use § 34(a)(3) to claim a
refundable income tax credit, which it
would otherwise be eligible to claim as a
payment under § 6427(e)(1).
(2) Nonrefundable income tax credit.
The § 40B credit is a § 38 general business
credit. A claimant may make this claim on
Form 8864, Biodiesel, Renewable Diesel,
and Sustainable Aviation Fuels Credit, in
accordance with the instructions for that
form.
Section 87 provides that gross income
includes the SAF credit determined with
respect to the taxpayer for the taxable
year under § 40B(a). Therefore, a claim-
ant must include the amount of the § 40B
credit in its gross income.
The amount of the credit determined
under § 40B with respect to any sus-
tainable aviation fuel must be properly
reduced to take into account any benefit
provided with respect to such sustain-
able aviation fuel solely by reason of the
application of § 6426(k) or 6427(e)(1).
See § 40B(g). In addition, for purposes
of § 40A (biodiesel and renewable diesel
used as fuel), the term biodiesel shall not
include any liquid with respect to which
a credit may be determined under § 40
or 40B.
A claimant will be ineligible to make
a claim immediately after the credit goes
into effect due to the registration require-
ments; however, a claimant generally will
be able to file a Form 8864 with an amend-
ed income tax return to claim a credit un-
der § 40B once the appropriate persons
are registered and the other requirements
of this notice are met.
.04 Claim requirements.
(1) Applicability. The claim require-
ments under section 6.04 of this notice
apply only to claims made with respect to
a SAF qualified mixture produced under
ASTM D7566.
(2) Certificate for SAF Synthetic
Blending Component. Each claim for a
credit or payment under § 34(a)(3), 40B,
6426(k), or 6427(e)(1) with respect to a
SAF qualified mixture must contain an
original Certificate for SAF Synthetic
Blending Component described in section
7.02 of this notice and, if applicable, the
Statement(s) of SAF Synthetic Blending
Component Reseller described in section
7.03 of this notice. However, in the case of
a certificate and statement that support a
claim made on more than one claim form,
the certificate and statement are to be in-
cluded with the first claim and the claim-
ant is to provide information related to the
certificate on any subsequent claim in ac-
cordance with the instructions applicable
to the claim form.
(3) Declaration for SAF Qualified Mix-
ture. Each claim for a credit or payment
under § 34(a)(3), 40B, 6426(k), or 6427(e)
(1) with respect to a SAF qualified mixture
must contain a Declaration for SAF Quali-
fied Mixture. The declaration consists of a
statement that is signed under penalties of
perjury by a person with authority to bind
the claimant, is substantially in the same
form as the model declaration in Appen-
dix A of this notice, and contains all the
information necessary to complete such
declaration.
The declaration must contain the Cer-
tificate of Analysis (COA) reference num-
ber for the COA associated with the SAF
qualified mixture, as well as the COA
reference numbers for the SAF synthetic
blending component and the D1655 kero-
sene that the claimant blended to produce
the SAF qualified mixture. A COA is a
document from an unrelated party used to
verify the type and quality of fuel used as
jet fuel. Separate COAs are generated for
each synthetic blending component, for
the kerosene used to mix with the synthet-
ic blending component, and for the SAF
qualified mixture. The COA reference
number for the SAF synthetic blending
component must match the COA refer-
ence number for the SAF synthetic blend-
ing component on the Certificate for SAF
Synthetic Blending Component.
SECTION 7. CERTIFICATES AND
STATEMENTS
.01 Applicability. This section de-
scribes the certificate and reseller state-
ment applicable only to SAF synthetic
blending components.
.02 Certificate for SAF Synthetic Blend-
ing Component. The Certificate for SAF
Synthetic Blending Component required
by section 6.04(2) of this notice consists
of (i) a statement that is signed under pen-
alties of perjury by a person with author-
ity to bind the producer or importer of a
SAF synthetic blending component, (ii)

January 9, 2023 334 Bulletin No. 2023–2
is substantially in the same form as the
model certificate in Appendix B of this
notice, and (iii) contains all the informa-
tion necessary to complete the certificate.
The certificate identification number is de-
termined by the producer or importer and
must be unique to each certificate.
A producer or importer may, with re-
spect to a particular sale of a SAF synthet-
ic blending component, provide multiple
separate certificates, each applicable to
a portion of the total volume of the SAF
synthetic blending component sold. Thus,
for example, a producer or importer that
sells 5,000 gallons of a SAF synthetic
blending component may provide its buy-
er with five certificates for 1,000 gallons
each. The multiple certificates may be
provided to the buyer at or after the time
of sale or to a reseller in the circumstances
described in section 7.03(1) of this notice.
.03 Statement of SAF Synthetic Blend-
ing Component Reseller.
(1) In general. A person that receives
a Certificate for SAF Synthetic Blending
Component, and subsequently sells the
SAF synthetic blending component with-
out producing a SAF qualified mixture,
must provide to its buyer the certificate,
and a statement that is substantially in
the same form as the model statement in
Appendix C of this notice. The statement
must contain all of the information neces-
sary to complete the model statement in
Appendix C and be attached to the orig-
inal Certificate for SAF Synthetic Blend-
ing Component.
A reseller cannot make multiple copies
of a Certificate for SAF Synthetic Blend-
ing Component in order to use it for mul-
tiple buyers. If a single certificate applies
to a SAF synthetic blending component
that a reseller expects to sell to multiple
buyers, then the reseller should return the
certificate (together with any statements
provided by intervening resellers) to the
producer or importer. The producer or im-
porter may reissue multiple Certificates
for SAF Synthetic Blending Component
to the reseller that reflect the appropriate
volumes. The reissued certificates must
include the certificate identification num-
ber from the certificate that was returned.
(2) Withdrawal of the right to provide
a statement. The IRS may withdraw the
right of a buyer of a SAF synthetic blend-
ing component to provide the buyer’s Cer-
tificate for SAF Synthetic Blending Com-
ponent and Statement of SAF Synthetic
Blending Component Reseller under this
section 7 if the IRS cannot verify the ac-
curacy of the buyer’s statements.
SECTION 8. REQUEST FOR
COMMENTS
.01 General comments. The Treasury
Department and the IRS request com-
ments on whether any issues related to the
SAF credit provided in this notice require
clarification or additional guidance. The
IRS anticipates issuing additional guid-
ance on the SAF credit.
.02 Comments on specific questions.
The Treasury Department and IRS invite
specific comments in response to the fol-
lowing questions:
(1) Section 40B(e)(2) provides that
“any similar methodology, which satisfies
the criteria under § 211(o)(1)(H) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(H)),
as in effect on the date of enactment of this
section” may be used to determine the re-
duction in lifecycle greenhouse gas emis-
sions. What methods exist that could qual-
ify as a “similar methodology”? Do the
lifecycle emissions values that have been
developed by the Environmental Protec-
tion Agency for the Renewable Fuel Stan-
dard qualify as a “similar methodology”?
Does the Greenhouse Gases, Regulated
Emissions, and Energy Use in Transpor-
tation (GREET) model developed by the
Argonne National Laboratory qualify as a
“similar methodology”?
(2) Section 40B(f)(2)(A)(ii) (concern-
ing general requirements, supply chain
traceability requirements, and information
requirements established under CORSIA)
provides that in the case of any method-
ology established under § 40B(e)(2) (con-
cerning any similar methodology, which
satisfies the criteria § 211(o)(1)(H) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(H))),
requirements similar to the requirements
described in section 40B(e)(1) apply.
What CORSIA requirements are needed
to ensure supply chain traceability of in-
formation related to lifecycle greenhouse
gas emissions and what unrelated party or
parties are qualified to demonstrate com-
pliance?
(3) Are any SAF co-processed quali-
fied mixtures currently being produced in
the United States? Are any SAF FT hydro-
carbons currently being produced in the
United States?
(4) With respect to the registration re-
quirements under § 4101, this notice treats
the person who produces a SAF co-pro-
cessed qualified mixture as a sustainable
aviation fuel producer. Is it more appro-
priate to treat the producer of the SAF FT
hydrocarbons as the sustainable aviation
fuel producer?
(5) What types of verification exist to
show what portion of a SAF co-processed
qualified mixture is attributable to FT hy-
drocarbons versus petroleum? Are car-
bon dating or mass balancing appropriate
types of verification?
(6) What entities are capable of provid-
ing the certifications required by § 40B(d)
(1)(D) (relating to a lifecycle greenhouse
gas emissions reduction percentage of at
least 50 percent) and (f)(2)(A) (concern-
ing general requirements, supply chain
traceability requirements, and information
requirements established under CORSIA
or a similar methodology under the Clean
Air Act) with respect to SAF co-processed
qualified mixtures?
(7) Section 40B(c)(4) requires that the
transfer of the qualified mixture into an
aircraft occur in the United States. What
types of verification exist to show that the
qualified mixture is transferred to the fuel
tank of an aircraft in the United States?
SECTION 9. SUBMISSION OF
COMMENTS
.01 Written comments should be sub-
mitted by February 17, 2023. The subject
line for the comments should include a
reference to Notice 2023-06. Comments
may be submitted in one of two ways:
(1) electronically via the Federal
eRulemaking Portal at http://www.regu-
lations.gov (type IRS-2022-0036 in the
search field on the regulations.gov home-
page to find this notice and submit com-
ments); or
(2) alternatively, by mail to: Inter-
nal Revenue Service, CC:PA:LPD:PR
(Notice 2023-06), Room 5203, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
.02 All commenters are strongly en-
couraged to submit comments electron-
ically. The Treasury Department and the

Bulletin No. 2023–2 335 January 9, 2023
IRS will publish for public availability
any comment submitted electronically, or
on paper, to its public docket on www.reg-
ulations.gov.
SECTION 10. PAPERWORK
REDUCTION ACT
Sections 5 and 6.04 of this notice set
forth collections of information to be
provided to the IRS with Form 637, and
to determine whether a claimant quali-
fies for a SAF credit. The collections of
information will be reflected in the sub-
mission to the Office of Management and
Budget (OMB) for review in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507(c)) that is associated with
Form 637 (OMB control number 1545-
1835). This submission will be updated
in the ordinary course. An agency may
not conduct or sponsor, and a person is
not required to respond to, a collection
of information unless the collection of
information displays a valid OMB con-
trol number.
SECTION 11. DRAFTING
INFORMATION
The principal author of this notice is
Elisabeth Shellan of the Office of Associ-
ate Chief Counsel (Passthroughs & Spe-
cial Industries). For further information
regarding this notice, call the energy se-
curity guidance contact number at (202)
317-5254 (not a toll-free number).

January 9, 2023 336 Bulletin No. 2023–2
Appendix A – Model Declaration for SAF Qualified Mixture
DECLARATION FOR SAF QUALIFIED MIXTURE
(To support a claim related to sustainable aviation fuel (SAF)
under the Internal Revenue Code)
The undersigned blender of a SAF qualified mixture (“Claimant”) hereby declares the following:
1. ___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
Claimant’s name, address, and employer identification number (EIN)
2. Claimant declares that the SAF qualified mixture to which this declaration relates:
(A) Is a mixture of SAF synthetic blending component and kerosene;
(1) The SAF synthetic blending component used to create the mixture meets the requirements of an ASTM D7566 Annex
(the certificate of analysis reference number demonstrating conformance with such standard is ____________________,
dated ____________ and the Certificate for SAF Synthetic Blending Component, for the SAF synthetic blending
component used to create the mixture, certificate identification number is ____________________, dated __________);
(2) The kerosene used to create the mixture meets the requirements of ASTM D1655 (the certificate of analysis reference
number demonstrating conformance with such standard is ____________________, dated __________);
(3) The SAF qualified mixture meets the requirements of ASTM D7566 (the certificate of analysis reference number
demonstrating conformance with such standard is ____________________, dated __________);
(B) The mixture was produced by Claimant in the United States;
(C) The mixture was used by Claimant (or sold by Claimant) for use in an aircraft;
(D) Such sale or use was in the ordinary course of the trade or business of the Claimant;
(E) The transfer of such mixture to the fuel tank of such aircraft occurred in the United States.
3. Claimant is registered under activity letter M or S or both with registration number(s) ____________________. Claimant’s
registration has not been suspended or revoked by the Internal Revenue Service.
Under penalties of perjury, I, ___________________________________________ declare that I have examined this declaration, and
to the best of my knowledge and belief, it is true, correct, and complete.
___________________________________________
Printed or typed name of person signing this declaration
___________________________________________
Title of person signing
___________________________________________
Signature and date signed

Bulletin No. 2023–2 337 January 9, 2023
Appendix B – Model Certificate for SAF Synthetic Blending Component
CERTIFICATE FOR SAF SYNTHETIC BLENDING COMPONENT
Certificate Identification Number: ____________________
(To support a claim related to sustainable aviation fuel (SAF)
under the Internal Revenue Code)
The undersigned producer or importer of a SAF synthetic blending component (“Producer”) hereby certifies the following under
penalties of perjury:
1. ___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
Producer’s name, address, and employer identification number (EIN)
2. ___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
Name, address, and EIN of person buying the SAF synthetic blending component from Producer.
3. ___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
Name and address of the unrelated party certifying compliance with the general requirements, supply chain traceability
requirements, and information transmission requirements established under the Carbon Offsetting and Reduction Scheme
for International Aviation (CORSIA) or similar requirements for methodologies established under section 211(o)(1)(H) of
the Clean Air Act (42 U.S.C. 7545(o)(1)(H)).
4. ___________________________________________________________________________________________________
Date and location of sale to buyer
5. This certificate applies to __________ gallons of a SAF synthetic blending component.
6. Producer certifies that the SAF synthetic blending component to which this certificate relates:
(A) Meets the requirements of an ASTM D7566 Annex (the certificate of analysis reference number demonstrating
conformance with such standard is ____________________, dated __________ );
(B) Is not derived from co-processing an applicable material (monoglycerides, diglycerides, triglycerides, free fatty acids,
or fatty acid esters) or materials derived from an applicable material with a feedstock that is not biomass (as defined in
section 45K(c)(3));
(C) Is not derived from palm fatty acid distillates or petroleum; and
(D) Has been certified in accordance with section 40B(e) as having a lifecycle greenhouse gas emissions reduction percentage
of at least 50 percent.

January 9, 2023 338 Bulletin No. 2023–2
7. The lifecycle greenhouse gas emissions reduction percentage of the SAF synthetic blending component to which this
certificate relates is __________. (This percent must be rounded down to the nearest whole percent.)
(Check one)
______ The lifecycle greenhouse gas emissions reduction percentage is calculated from the “Default Life Cycle Emissions
Values for CORSIA Eligible Fuels” in the most recently published version by the International Civil Aviation Organization
(ICAO).
______ The lifecycle greenhouse gas emissions reduction percentage is calculated from the “CORSIA Methodology for
Calculating Actual Life Cycle Emission Values” in the most recently published version by the ICAO.
______ The lifecycle greenhouse gas emissions reduction percentage is calculated according to a methodology that satisfies
the criteria of section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)). Describe method: _________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
8. The applicable supplementary amount with respect to the SAF synthetic blending component to which this certificate relates
is __________. In no event can the applicable supplementary amount exceed $0.50.
9. This certificate applies to the following sale:
______ Invoice or delivery ticket number
______ Total number of gallons of the SAF synthetic blending component sold under that invoice or delivery ticket number
(including SAF synthetic blending component not covered by this certificate)
______ Total number of certificates issued for that invoice or delivery ticket number
10. ___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
Name, address, and EIN of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after
the return of the original certificate)

Bulletin No. 2023–2 339 January 9, 2023
11. _________ Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the
original certificate)
12. Producer is registered as a sustainable aviation fuel (activity letter SA) producer or importer with registration number
__________. Producer’s registration has not been suspended or revoked by the Internal Revenue Service.
Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any fraudulent use of this
certificate to a fine or imprisonment, or both, together with the costs of prosecution.
___________________________________________
Printed or typed name of person signing this certificate
___________________________________________
Title of person signing
___________________________________________
Signature and date signed
Note: In the case of a claimant that is also the producer or importer of the SAF synthetic blending component, the information re-
quired on lines 2, 4, and 10 of the model certificate is not applicable and those lines do not need to be completed.

January 9, 2023 340 Bulletin No. 2023–2
Appendix C – Model Statement of SAF Synthetic Blending Component Reseller
STATEMENT OF SAF SYNTHETIC BLENDING COMPONENT RESELLER
(To support a claim related to sustainable aviation fuel (SAF)
under the Internal Revenue Code)
The undersigned SAF synthetic blending component reseller (“Reseller”) hereby certifies the following under penalties of perjury:
1. ___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
Reseller’s name, address, and employer identification number (EIN)
2. ___________________________________________________________________________________________________
___________________________________________________________________________________________________
___________________________________________________________________________________________________
Name, address, and EIN of Reseller’s buyer
3. ___________________________________________________________________________________________________
Date and location of sale to buyer
4. __________________________________Volume of the SAF synthetic blending component sold
5. __________________________________Certificate Identification Number on the Certificate for SAF Synthetic Blending
Component
Reseller has bought the SAF synthetic blending component described in the accompanying Certificate for SAF Synthetic Blending
Component and reseller has no reason to believe that any information in the certificate is false.
Reseller has not been notified by the Internal Revenue Service that its right to provide a certificate and a statement has been with-
drawn.
Reseller understands that the fraudulent use of this statement may subject Reseller and all parties making any fraudulent use of this
statement to a fine or imprisonment, or both, together with the costs of prosecution.
___________________________________________
Printed or typed name of person signing this certificate
___________________________________________
Title of person signing
___________________________________________
Signature and date signed

Bulletin No. 2023–2 341 January 9, 2023
Additional Guidance
Related to Transfers of
Publicly Traded Partnership
Interests under Section
1446(f)
Notice 2023-8
I. PURPOSE
This notice provides additional guid-
ance for brokers to comply with the provi-
sions of the final regulations under section
1446(f) (and certain provisions of the final
regulations that apply to section 1446(a))
(final regulations) that relate to withhold-
ing on the transfer of an interest in a pub-
licly traded partnership (PTP interest).
The Department of the Treasury (Treasury
Department) and the Internal Revenue
Service (IRS) intend to issue proposed
regulations that would amend the final
regulations to implement this additional
guidance.
II. BACKGROUND
Sections 864(c)(8) and 1446(f) were
added to the Code by the Tax Cuts and
Jobs Act, Pub. L. 115-97, on December
22, 2017. Section 864(c)(8) generally pro-
vides that gain or loss of a foreign person
on the sale or exchange of an interest in
a partnership engaged in a U.S. trade or
business is treated as effectively connect-
ed gain or loss and, therefore, is subject
to U.S. tax. Section 1446(f)(1) requires a
transferee of an interest in a partnership
to withhold 10 percent of the amount re-
alized if any portion of the gain on the
disposition would be treated under section
864(c)(8) as effectively connected with
the conduct of a trade or business within
the United States (unless an exception ap-
plies).
On November 30, 2020, the Treasury
Department and the IRS published the fi-
nal regulations (TD 9926) in the Federal
Register (85 FR 76910, as corrected at 86
FR 13191), primarily relating to withhold-
ing and information reporting under sec-
tion 1446(f). The final regulations include
withholding requirements under section
1446(f)(1) that generally require a broker
that effects a transfer of a PTP interest on
behalf of a transferor to withhold on the
payment of an amount realized made to
the transferor. However, a broker is not
required to withhold, or may withhold at
a reduced rate, if it can rely on (i) a cer-
tification from the transferor that claims
an exception or reduction to withholding
(generally provided on a valid Form W-8
or W-9) or (ii) a representation made by
the publicly traded partnership (PTP) on
a qualified notice indicating that the ex-
ception under §1.1446(f)-4(b)(3)(ii) ap-
plies (ten-percent exception). A broker
is also not required to withhold when it
makes the payment of an amount realized
to a qualified intermediary (QI), or a U.S.
branch treated as a U.S. person, that as-
sumes primary withholding responsibility
under section 1446(f)(1).
The provisions of the final regulations
that relate to a broker’s obligation to with-
hold on the transfer of a PTP interest apply
to transfers that occur on or after January
1, 2022. However, on September 7, 2021,
the Treasury Department and the IRS re-
leased Notice 2021-51, 2021-36 I.R.B.
361, deferring the applicability date of
these provisions to transfers that occur on
or after January 1, 2023. On May 16, 2022,
the Treasury Department and the IRS re-
leased Notice 2022-23, 2022-20 I.R.B.
1062, proposing changes to the qualified
intermediary agreement (QI agreement),
including rules that will apply to QIs re-
quired to withhold on the transfer of a PTP
interest under section 1446(f) starting Jan-
uary 1, 2023. Subsequently, the Treasury
Department and the IRS released Revenue
Procedure 2022-43, 2022-52 I.R.B. 570,
which provides the final QI agreement ef-
fective as of January 1, 2023.
III. SALES OF INTERESTS IN
FOREIGN PUBLICLY TRADED
PARTNERSHIPS
Following the publication of the final
regulations, taxpayers and other stakehold-
ers raised concerns regarding the difficulty
of brokers to determine, for withholding
under section 1446(f), whether entities
organized outside of the United States are
classified as PTPs for U.S. tax purposes.
Because the final regulations generally
require withholding on the sale of a PTP
interest unless the PTP represents on a
qualified notice that the ten-percent ex-
ception applies, or the transferor provides
a certification claiming another exception
to withholding under §1.1446(f)-4(b)),
a broker that is unable to determine the
classification of an entity may be required
to withhold on each sale of an interest in
such entity. The view of these stakehold-
ers was that it is impractical to identify a
complete list of entities organized outside
of the United States that are classified as
partnerships for U.S. tax purposes and that
are traded on a foreign established secu-
rities market or foreign secondary mar-
ket. These stakeholders requested that a
broker be able to presume that an entity
organized outside of the United States is
not a PTP unless it has actual knowledge
to the contrary, and that a PTP organized
outside of the United States is presumed
to not have effectively connected income
unless it represents otherwise on a quali-
fied notice.
The Treasury Department and the IRS
have determined that the burden on bro-
kers to determine whether a foreign entity
that trades on a foreign market is a PTP for
U.S. tax purposes would likely be dispro-
portionate to the amount of gain subject to
section 864(c)(8) on transfers of interests
in such entities. The Treasury Department
and the IRS intend to issue proposed reg-
ulations that would amend the final reg-
ulations to provide withholding relief to
brokers on the sale of an interest in an en-
tity that is organized outside of the United
States and that trades solely on a foreign
established securities market or foreign
secondary market (foreign-traded entity).
This proposed amendment would allow a
broker that effects a sale of an interest in
a foreign-traded entity to presume that the
entity is not a PTP for U.S. tax purposes
unless the broker has actual knowledge
otherwise.
However, the Treasury Department and
the IRS have determined that it is inappro-
priate to allow a broker that knows that a
foreign-traded entity is a PTP for U.S. tax
purposes to presume that the PTP does not
have effectively connected income, and
therefore do not intend to include such a
presumption in the proposed regulations.
Thus, in such a case, a broker would be
required to withhold under section 1446(f)
on the sale of an interest in the PTP unless
the PTP has indicated on a qualified no-
tice that the ten-percent exception applies

January 9, 2023 342 Bulletin No. 2023–2
or the broker receives a certification from
the transferor claiming another exception
or reduction to withholding.
IV. RELIANCE ON LATE
CERTIFICATIONS
Under the final regulations, a broker
may rely on a certification from a trans-
feror that claims an exception or reduction
to withholding. However, a broker may
not rely on a certification if it is received
earlier than 30 days before a transfer
(unless an allowance applies in the final
regulations to allow a broker to rely on
documentation that it already possesses)
or at any time after a transfer. Taxpayers
and other stakeholders have requested an
allowance for brokers to rely on late cer-
tifications that claim an exception or re-
duction to withholding on the transfer of
a PTP interest. These stakeholders noted
that for other types of payments, brokers
that are withholding agents are allowed
to rely on late documentation for purpos-
es of reducing withholding (for example,
under the regulations under sections 1441
and 1471), and thus requested that the fi-
nal regulations be amended to provide that
those same provisions apply for purposes
of applying section 1446(f) on the transfer
of a PTP interest.
The Treasury Department and the IRS
have determined that it is appropriate to
allow brokers to rely on late certifica-
tions for purposes of withholding under
section 1446(f) in order to reduce over-
withholding and claims for refund and to
better coordinate with the documentation
rules under sections 1441 and 1471. The
Treasury Department and the IRS intend
to issue proposed regulations that would
amend the final regulations to allow bro-
kers to rely on late certifications when
certain requirements are met. A broker
would be permitted to rely on a valid cer-
tification that it receives within 30 days
of the date of payment. If the certification
is received more than 30 days after the
date of payment but within one year of
the date of the payment, a broker would
be permitted to rely on the certification if
it contains a signed affidavit stating that
the information and representations on the
certification were accurate as of the time
of payment. If a certification is received
more than one year after the date of pay-
ment, the broker would be permitted to
rely on the certification if it contains the
signed affidavit and, in the case of a claim
for treaty benefits under §1.1446(f)-4(b)
(5), documentary evidence described in
§1.1441-6(c)(4)(i) or (ii) to support the
treaty claim made on the certificate.
The allowance for late certifications
would apply to any certification used to
claim an exception or reduction to with-
holding on the transfer of a PTP interest
under §1.1446(f)-4. For example, a broker
may rely on a late Form W-8IMY from a
foreign partnership to claim a modified
amount realized pursuant to §1.1446(f)-
4(c)(2)(ii) if the form meets the require-
ments for late certifications. A broker may
also rely on any underlying certifications
provided by the foreign partnership on be-
half of its partners to establish a claim of
non-foreign status or a claim of treaty ben-
efits to the extent that those certifications
separately meet the requirements for late
certifications.
The Treasury Department and the IRS
also intend to issue proposed regulations
that would amend the final regulations
that relate to withholding under section
1446(a) to provide the same allowance
for late certifications that are received by
nominees treated as withholding agents
under §1.1446-4 on PTP distributions sub-
ject to section 1446(a).
V. SHORT SALES OF PTP INTERESTS
The Treasury Department and the IRS
have received requests for clarity on the
application of section 1446(f) to trans-
actions described by requestors as short
sales of PTP interests (PTP shorts). In a
PTP short, a taxpayer obtains a PTP inter-
est from a third party (original PTP interest
owner), subject to an obligation to deliver
an identical PTP interest to the original
PTP interest owner in the future. The tax-
payer immediately sells the PTP interest
to an unrelated market participant for cash
(sale to market). To satisfy its obligation
to deliver an identical PTP interest to the
original PTP interest owner, the taxpayer
may buy a replacement PTP interest and
deliver it to the original PTP interest own-
er. As an economic matter, the taxpayer
will profit from the transaction if the value
of the PTP interest has declined during the
term of the PTP short. Alternatively, the
taxpayer may instead deliver a PTP inter-
est that it holds at that time to the original
PTP interest owner. In the latter case, the
taxpayer may have owned the PTP interest
when it enters into the PTP short, or it may
have acquired the PTP interest during the
term of the PTP short. Taxpayers typical-
ly carry out these transactions through a
broker, who has the legal relationship with
both the taxpayer and the original PTP in-
terest owner.
Taxpayers and other stakeholders have
requested that guidance be issued to the
effect that no withholding applies to PTP
shorts. In response, the Treasury Depart-
ment and the IRS intend to issue pro-
posed regulations that would amend the
final regulations to provide an exception
to withholding under section 1446(f) on a
PTP short (PTP short exception). The PTP
short exception would apply to a PTP short
effected by a broker on behalf of a taxpay-
er that obtained the PTP interest from an-
other party (including the broker or a cus-
tomer of the broker) for sale to market. No
withholding would be required on the sale
to market of the PTP interest or on the lat-
er transfer by the taxpayer of an identical
PTP interest to the original PTP interest
owner. The proposed regulations would
not address the treatment of the PTP short
to the original PTP interest owner.
The Treasury Department and the IRS
have determined that the PTP short excep-
tion should not apply in certain situations
in which there may be gain arising from the
PTP short that is subject to section 864(c)
(8). Therefore, the PTP short exception
would not apply if on the date that the sale
to market is entered on the books of the
broker (i) the taxpayer holds substantially
identical property (within the meaning of
section 1233) in an account with the bro-
ker or (ii) the broker has actual knowledge
that the taxpayer holds substantially iden-
tical property in an account with another
broker. In such cases, the taxpayer may
realize gain from delivery of such sub-
stantially identical property to the original
PTP interest owner or from a constructive
sale under section 1259. Because any such
gain would be attributable, in whole or in
part, to the taxpayer’s ownership in the
substantially identical PTP interest, it is
inappropriate to provide relief from with-
holding under section 1446(f). This lim-
itation to the PTP short exception would

Bulletin No. 2023–2 343 January 9, 2023
apply regardless of whether the taxpayer
delivers to the original PTP interest own-
er the substantially identical PTP interest
held on the date of the sale to market or a
PTP interest acquired during the term of
the PTP short.
The proposed regulations would also
clarify existing guidance to brokers regard-
ing withholding and reporting associated
with PTP shorts that do not qualify for the
PTP short exception. The date of transfer
for purposes of withholding and reporting
on a PTP short under §1.1446(f)-4 would
be the date on which the sale to market of
the PTP interest is entered on the books
of the broker, but the broker would not be
required to satisfy its withholding liability
until payment is made. This would allow
a broker to withhold from the proceeds of
the sale to market when it knows that the
PTP short exception does not apply be-
cause it holds (or knows that another bro-
ker holds) substantially identical property
for the taxpayer at the time of such sale. A
broker would be required to deposit any
withheld amounts with the IRS in accor-
dance with §1.6302-2.
VI. APPLICABILITY DATE AND
TAXPAYER RELIANCE
The proposed regulations would apply
to transfers or distributions made on or
after January 1, 2023. Before the prom-
ulgation of the proposed regulations, a
broker required to withhold under sec-
tion 1446(a) or 1446(f) may rely on the
provisions of this Notice regarding the
proposed regulations described in sec-
tions III through V. A QI applying the
provisions of the QI agreement (as in
effect on January 1, 2023) may also rely
on the provisions of this Notice regard-
ing the proposed regulations described in
sections III through V.
VII. DRAFTING INFORMATION
The principal author of this notice
is Subin Seth of the Office of Associate
Chief Counsel (International). For further
information regarding this notice, contact
Mr. Seth at (202) 317-5003 (not a toll-free
number).

January 9, 2023 344 Bulletin No. 2023–2
Part IV
Transitional guidance
under sections 6045 and
6045A with respect to the
reporting of information on
digital assets by brokers.
Announcement 2023-2
Section 80603 of the Infrastructure In-
vestment and Jobs Act, Pub. L. No. 117-
58, 135 Stat. 429, 1339 (2021) (Infrastruc-
ture Act) clarifies and expands the rules
regarding the reporting of information on
digital assets by brokers under sections
6045 and 6045A of the Internal Revenue
Code. This announcement provides tran-
sitional guidance under sections 6045 and
6045A with respect to the reporting of in-
formation on digital assets.
Section 6045(a) provides that every
person doing business as a broker shall
make a return showing the name and ad-
dress of each customer, with such details
regarding gross proceeds and such other
information as the Secretary of the Trea-
sury or her delegate (Secretary) may by
forms or regulations require with respect
to such business. These rules apply when
required by the Secretary and in accor-
dance with regulations prescribed by the
Secretary. Other subsections of section
6045 require a broker to furnish a payee
statement to customers, define the term
“broker,” require basis reporting for spec-
ified securities that are also covered secu-
rities, and provide other applicable rules.
A person doing business as a broker
is required to file information returns and
furnish payee statements in accordance
with existing regulations under section
6045 for each customer for whom the bro-
ker has sold stocks, certain commodities,
and other specified categories of assets in
exchange for cash. The information re-
turns and payee statements are required
to show each customer’s name and ad-
dress, details regarding gross proceeds,
the adjusted basis of certain categories of
assets sold, and certain other information.
Brokers must furnish payee statements to
customers by February 15 of the year fol-
lowing the calendar year of the sale. Bro-
kers must file information returns on Form
1099-B, Proceeds From Broker and Barter
Exchange Transactions, with the Internal
Revenue Service (IRS) by February 28
(or March 31 if filing electronically) of
the year following the calendar year of the
sale. The existing regulations under sec-
tion 6045 do not specifically address the
extent to which these requirements apply
to sales or exchanges of digital assets and
do not specifically include digital assets as
a specified security subject to basis report-
ing.
Section 6045A(a) generally requires
a broker who transfers to another broker
securities that are covered securities in the
hands of the transferring broker to furnish
to the receiving broker a written statement
setting forth information required by the
regulations. The existing regulations un-
der section 6045A require transfer state-
ments to include specified information
about the customer, the brokers involved,
and the original acquisition information
about the covered security. Brokers must
furnish the transfer statements required
under section 6045A(a) not later than 15
days after the date of the transfer. Section
6045A(c). The existing regulations under
section 6045A do not specifically address
the extent to which these requirements ap-
ply to transfers of digital assets.
Section 80603 clarifies and expands
the rules regarding how digital assets
should be reported by brokers under sec-
tions 6045 and 6045A to improve tax
administration and tax compliance with
respect to trading and investing in digital
assets. First, section 80603(a) clarifies the
definition of broker in section 6045(c)(1)
to include any person who, for consider-
ation, is responsible for regularly provid-
ing any service effectuating transfers of
digital assets on behalf of another person.
Second, section 80603(b)(1) modifies the
definition of specified securities subject
to basis reporting under section 6045(g)
to explicitly include digital assets and to
provide that these specified securities are
treated as covered securities for purposes
of basis reporting if they are acquired on
or after January 1, 2023. Third, section
80603(b)(1)(B) defines a digital asset to
mean any digital representation of value
which is recorded on a cryptographically
secured distributed ledger or any similar
technology as specified by the Secre-
tary, except as otherwise provided by the
Secretary. Fourth, section 80603(b)(2)
clarifies that transfer statement report-
ing under section 6045A(a) applies to
transfers between brokers of covered se-
curities that are digital assets and adds a
new information reporting provision for
certain transfers under section 6045A(d).
Under this new provision, brokers must
report to the IRS transfers during a calen-
dar year of digital assets that are covered
securities, provided the transfer is not
part of a sale or exchange and is not to
an account maintained by a person that
the broker knows or has reason to know
is also a broker. Finally, section 80603(c)
provides that these amendments apply
to returns required to be filed, and state-
ments required to be furnished, after De-
cember 31, 2023.
The Department of the Treasury (Trea-
sury Department) and the IRS intend to
implement section 80603 of the Infra-
structure Act by publishing regulations
specifically addressing the application of
sections 6045 and 6045A to digital assets
and providing forms and instructions for
broker reporting. A notice of proposed
rulemaking will be published that sets
forth proposed regulatory text, explains
the proposed rules, solicits public com-
ments, and announces a public hearing.
This process will allow the Treasury De-
partment and the IRS to accept comments
from affected taxpayers, industries, and
other interested parties and enable the
public to meaningfully participate in the
regulatory process. After careful consider-
ation of all public comments received and
all testimony at the public hearing, final
regulations will be published.
Until the Treasury Department and the
IRS issue new final regulations pursuant
to section 80603 under section 6045, a
broker may report gross proceeds and
basis as required under existing law and
regulations as of December 23, 2022. In
addition, until the Treasury Department
and the IRS issue new final regulations
pursuant to section 80603 under section
6045A, a broker may furnish statements

Bulletin No. 2023–2 345 January 9, 2023
on transfers of covered securities as re-
quired under existing law and regula-
tions as of December 23, 2022. Brokers
will not be required to report or furnish
additional information with respect to
dispositions of digital assets under sec-
tion 6045, or issue additional statements
under section 6045A, or file any returns
with the IRS on transfers of digital assets
under section 6045A(d) until those new
final regulations under sections 6045 and
6045A are issued.
The principal author of this announce-
ment is the Office of the Associate Chief
Counsel (Procedure & Administration).

Bulletin No. 2023–2 i January 9, 2023
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
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the 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 with
modified, below).
Clarified is 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 rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is 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
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings 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.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes 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 previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is 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
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is 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 cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI
—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
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—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

January 9, 2023 ii Bulletin No. 2023–2
Numerical Finding List
1
Bulletin 2023–2
Announcements:
2023-2, 2023-2 I.R.B. 344
Notices:
2023-4, 2023-2 I.R.B. 321
2023-5, 2023-2 I.R.B. 324
2023-6, 2023-2 I.R.B. 328
2023-8, 2023-2 I.R.B. 341
Revenue Procedures:
2023-1, 2023-01 I.R.B. 1
2023-2, 2023-01 I.R.B. 120
2023-3, 2023-01 I.R.B. 144
2023-4, 2023-01 I.R.B. 162
2023-5, 2023-01 I.R.B. 265
2023-7, 2023-01 I.R.B. 305
Revenue Rulings:
2023-1, 2023-2 I.R.B. 309
Treasury Decisions:
9970, 2023-2 I.R.B. 311
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

Bulletin No. 2023–2 iii January 9, 2023
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2023–2
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

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