IRB 2010-49 (Rev. December 6, 2010) - Internal Revenue Service · cases where the facts are...

Bulletin No. 2010-49December 6, 2010

HIGHLIGHTSOF THIS ISSUEThese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.

SPECIAL ANNOUNCEMENT

Notice 2010–79, page 809.This notice alerts taxpayers to an amendment made to section833 of the Code by the Patient Protection and Affordable CareAct (H.R. 3590, P.L. 111–148). In addition, this notice providestransitional relief and interim guidance on the interpretation andapplication of the amendment and requests comments on whatfurther guidance, if any, is needed.

INCOME TAX

Rev. Rul. 2010–28, page 804.2010 base period T-bill rate. The “base period T-bill rate”for the period ending September 30, 2010, is published asrequired by section 995(f) of the Code.


Rev. Proc. 2010–44, page 811.This procedure provides two safe harbor methods of account-ing for certain motor vehicle dealerships to (1) treat certainsales facilities as retail sales facilities for purposes of section263A of the Code, and (2) be treated as resellers without pro-duction activities for purposes of section 263A. This procedurealso provides procedures for obtaining automatic consent to

change to the safe harbor methods. Rev. Proc. 2008–52modified.

EMPLOYEE PLANS

Notice 2010–78, page 808.2011 cost-of-living adjustments; retirements plans, etc.This notice sets forth certain cost-of-living adjustments effec-tive January 1, 2011, applicable to the dollar limitations on ben-efits and contributions under qualified retirement plans. Thelimitations that are adjusted by reference to § 415(d) generallywill remain unchanged for 2011. Other limitations applicableto deferred compensation plans are also unchanged for 2011.This notice also contains cost-of-living adjustments for severalpension-related amounts in restating the data in IR–2010–108issued October 28, 2010.

EXEMPT ORGANIZATIONS

Announcement 2010–90, page 816.A list is provided of organizations now classified as private foun-dations.

(Continued on the next page)

Actions Relating to Court Decisions is on the page following the Introduction.Finding Lists begin on page ii.

ADMINISTRATIVE


Rev. Proc. 2010–45, page 813.Nonshareholder contribution to capital under section118(a). This procedure provides a safe harbor under section118(a) of the Code for the treatment of certain grants tocorporations from the National Energy Technology Laboratoryof the Department of Energy under the Electric Drive VehicleBattery and Component Manufacturing Initiative as authorizedby the American Recovery and Reinvestment Act of 2009(ARRA).

Rev. Proc. 2010–46, page 814.Nonshareholder contribution to capital under section118(a). This procedure provides a safe harbor under section118(a) of the Code for certain amounts received by corpo-rate taxpayers under certain Department of Transportationprograms.

December 6, 2010 2010–49 I.R.B.

The IRS MissionProvide America’s taxpayers top-quality service by helpingthem understand and meet their tax responsibilities and en-

force the law with integrity and fairness to all.

IntroductionThe Internal Revenue Bulletin is the authoritative instrument ofthe Commissioner of Internal Revenue for announcing officialrulings and procedures of the Internal Revenue Service and forpublishing Treasury Decisions, Executive Orders, Tax Conven-tions, legislation, court decisions, and other items of generalinterest. It is published weekly and may be obtained from theSuperintendent of Documents on a subscription basis. Bulletincontents are compiled semiannually into Cumulative Bulletins,which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all sub-stantive rulings necessary to promote a uniform application ofthe tax laws, including all rulings that supersede, revoke, mod-ify, or amend any of those previously published in the Bulletin.All published rulings apply retroactively unless otherwise indi-cated. Procedures relating solely to matters of internal man-agement are not published; however, statements of internalpractices and procedures that affect the rights and duties oftaxpayers are published.

Revenue rulings represent the conclusions of the Service on theapplication of the law to the pivotal facts stated in the revenueruling. In those based on positions taken in rulings to taxpayersor technical advice to Service field offices, identifying detailsand information of a confidential nature are deleted to preventunwarranted invasions of privacy and to comply with statutoryrequirements.

Rulings and procedures reported in the Bulletin do not have theforce and effect of Treasury Department Regulations, but theymay be used as precedents. Unpublished rulings will not berelied on, used, or cited as precedents by Service personnel inthe disposition of other cases. In applying published rulings andprocedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,and Service personnel and others concerned are cautionedagainst reaching the same conclusions in other cases unlessthe 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 ofthe 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, Leg-islation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references to thesesubjects are contained in the other Parts and Subparts. Alsoincluded in this part are Bank Secrecy Act Administrative Rul-ings. Bank Secrecy Act Administrative Rulings are issued bythe Department of the Treasury’s Office of the Assistant Secre-tary (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 indexfor the matters published during the preceding months. Thesemonthly indexes are cumulated on a semiannual basis, and arepublished 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.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

2010–49 I.R.B. December 6, 2010

Actions Relating to Decisions of the Tax CourtIt is the policy of the Internal Rev-

enue Service to announce at an early datewhether it will follow the holdings in cer-tain cases. An Action on Decision is thedocument making such an announcement.An Action on Decision will be issued atthe discretion of the Service only on unap-pealed issues decided adverse to the gov-ernment. Generally, an Action on Decisionis issued where its guidance would be help-ful to Service personnel working with thesame or similar issues. Unlike a TreasuryRegulation or a Revenue Ruling, an Actionon Decision is not an affirmative statementof Service position. It is not intended toserve as public guidance and may not becited as precedent.

Actions on Decisions shall be reliedupon within the Service only as conclu-sions applying the law to the facts in theparticular case at the time the Action onDecision was issued. Caution should beexercised in extending the recommenda-tion of the Action on Decision to similarcases where the facts are different. More-over, the recommendation in the Action onDecision may be superseded by new legis-lation, regulations, rulings, cases, or Ac-tions on Decisions.

Prior to 1991, the Service publishedacquiescence or nonacquiescence only in

certain regular Tax Court opinions. TheService has expanded its acquiescenceprogram to include other civil tax caseswhere guidance is determined to be help-ful. Accordingly, the Service now mayacquiesce or nonacquiesce in the holdingsof memorandum Tax Court opinions, aswell as those of the United States DistrictCourts, Claims Court, and Circuit Courtsof Appeal. Regardless of the court decid-ing the case, the recommendation of anyAction on Decision will be published inthe Internal Revenue Bulletin.

The recommendation in every Actionon Decision will be summarized as ac-quiescence, acquiescence in result only,or nonacquiescence. Both “acquiescence”and “acquiescence in result only” meanthat the Service accepts the holding ofthe court in a case and that the Servicewill follow it in disposing of cases withthe same controlling facts. However, “ac-quiescence” indicates neither approvalnor disapproval of the reasons assignedby the court for its conclusions; whereas,“acquiescence in result only” indicatesdisagreement or concern with some or allof those reasons. “Nonacquiescence” sig-nifies that, although no further review wassought, the Service does not agree withthe holding of the court and, generally,

will not follow the decision in disposingof cases involving other taxpayers. Inreference to an opinion of a circuit courtof appeals, a “nonacquiescence” indicatesthat the Service will not follow the hold-ing on a nationwide basis. However, theService will recognize the precedentialimpact of the opinion on cases arisingwithin the venue of the deciding circuit.

The Actions on Decisions published inthe weekly Internal Revenue Bulletin areconsolidated semiannually and appear inthe first Bulletin for July and the Cumula-tive Bulletin for the first half of the year. Asemiannual consolidation also appears inthe first Bulletin for the following Januaryand in the Cumulative Bulletin for the lasthalf of the year.

The Commissioner does not acquiescein result or the reasoning in the followingdecision:

VERITAS Software Corp.v. Commissioner1

133 T.C. No. 14 (December 10, 2009).

1 The Service believes the Court’s factual findings and legal assertions are erroneous. Therefore, it does not acquiesce in the result or the reasoning of the decision.

December 6, 2010 2010–49 I.R.B.

Part I. Rulings and Decisions Under the Internal Revenue Codeof 1986Section 995.—Taxationof DISC Income toShareholders

2010 base period T-bill rate. The“base period T-bill rate” for the periodending September 30, 2010, is publishedas required by section 995(f) of the Code.

Rev. Rul. 2010–28

Section 995(f)(1) of the Internal Rev-enue Code provides that a shareholder of aDISC shall pay interest each taxable yearin an amount equal to the product of theshareholder’s DISC-related deferred tax li-ability for the year and the “base periodT-bill rate.” Under section 995(f)(4), thebase period T-bill rate is the annual rateof interest determined by the Secretary tobe equivalent to the average of the 1-yearconstant maturity Treasury yields, as pub-lished by the Board of Governors of theFederal Reserve System, for the 1-year pe-riod ending on September 30 of the calen-dar year ending with (or of the most recentcalendar year ending before) the close ofthe taxable year of the shareholder. Thebase period T-bill rate for the period end-ing September 30, 2010, is 0.34 percent.

Pursuant to section 6222 of the Code,interest must be compounded daily. Thetable below provides factors for com-pounding the base period T-bill rate dailyfor any number of days in the share-holder’s taxable year (including a 52–53week accounting period) for the 2010 baseperiod T-bill rate. To compute the amountof the interest charge for the shareholder’staxable year, multiply the amount of theshareholder’s DISC-related deferred taxliability (as defined in section 995(f)(2))for that year by the base period T-bill ratefactor corresponding to the number ofdays in the shareholder’s taxable year forwhich the interest charge is being com-puted. Generally, one would use the factorfor 365 days. One would use a differentfactor only if the shareholder’s taxableyear for which the interest charge beingdetermined is a short taxable year, if theshareholder uses the 52–53 week taxableyear, or if the shareholder’s taxable year isa leap year.

For the base period T-bill rates for theperiods ending in prior years, see Rev. Rul.2009–36, 2009–47 I.R.B. 650; Rev. Rul.2008–51, 2008–2 C.B. 1171; Rev. Rul.2007–64, 2007–2 C.B. 953; Rev. Rul.2006–54, 2006–2 C.B. 834; Rev. Rul.2005–70, 2005–2 C.B. 919; Rev. Rul.2004–99, 2004–2 C.B. 720; Rev. Rul.2003–2, 2003–1 C.B. 251; and Rev. Rul.2002–68, 2002–2 C.B. 808.

DRAFTING INFORMATION

The principal author of this revenue rul-ing is Teresa Burridge Hughes of the Of-fice of Associate Chief Counsel (Interna-tional). For further information regardingthis revenue ruling, contact Ms. Hughes at(202) 622–3850 (not a toll-free call).

2010 ANNUAL RATE,COMPOUNDED DAILY

0.34 PERCENT

DAYS FACTOR

1 .0000093152 .0000186303 .0000279454 .0000372615 .000046576

6 .0000558927 .0000652078 .0000745239 .000083839

10 .000093155

11 .00010247112 .00011178713 .00012110314 .00013041915 .000139735

16 .00014905217 .00015836818 .00016768519 .00017700120 .000186318

21 .00019563522 .00020495223 .00021426924 .00022358625 .000232903


0.34 PERCENT

DAYS FACTOR

26 .00024222027 .00025153728 .00026085529 .00027017230 .000279490

31 .00028880732 .00029812533 .00030744334 .00031676135 .000326079

36 .00033539737 .00034471538 .00035403439 .00036335240 .000372670

41 .00038198942 .00039130843 .00040062644 .00040994545 .000419264

46 .00042858347 .00043790248 .00044722149 .00045654050 .000465860

51 .00047517952 .00048449953 .00049381854 .00050313855 .000512458

56 .00052177757 .00053109758 .00054041759 .00054973860 .000559058

61 .00056837862 .00057769863 .00058701964 .00059633965 .000605660

2010–49 I.R.B. 804 December 6, 2010


0.34 PERCENT

DAYS FACTOR

66 .00061498167 .00062430168 .00063362269 .00064294370 .000652264

71 .00066158672 .00067090773 .00068022874 .00068954975 .000698871

76 .00070819377 .00071751478 .00072683679 .00073615880 .000745480

81 .00075480282 .00076412483 .00077344684 .00078276885 .000792091

86 .00080141387 .00081073688 .00082005889 .00082938190 .000838704

91 .00084802792 .00085735093 .00086667394 .00087599695 .000885319

96 .00089464297 .00090396698 .00091328999 .000922613100 .000931936

101 .000941260102 .000950584103 .000959908104 .000969232105 .000978556


0.34 PERCENT

DAYS FACTOR

106 .000987880107 .000997205108 .001006529109 .001015853110 .001025178

111 .001034503112 .001043827113 .001053152114 .001062477115 .001071802

116 .001081127117 .001090452118 .001099777119 .001109103120 .001118428

121 .001127753122 .001137079123 .001146405124 .001155730125 .001165056

126 .001174382127 .001183708128 .001193034129 .001202360130 .001211687

131 .001221013132 .001230340133 .001239666134 .001248993135 .001258319

136 .001267646137 .001276973138 .001286300139 .001295627140 .001304954

141 .001314281142 .001323609143 .001332936144 .001342264145 .001351591


0.34 PERCENT

DAYS FACTOR

146 .001360919147 .001370247148 .001379574149 .001388902150 .001398230

151 .001407558152 .001416887153 .001426215154 .001435543155 .001444872

156 .001454200157 .001463529158 .001472858159 .001482186160 .001491515

161 .001500844162 .001510173163 .001519502164 .001528832165 .001538161

166 .001547490167 .001556820168 .001566149169 .001575479170 .001584809

171 .001594139172 .001603469173 .001612799174 .001622129175 .001631459

176 .001640789177 .001650119178 .001659450179 .001668780180 .001678111

181 .001687442182 .001696772183 .001706103184 .001715434185 .001724765

December 6, 2010 805 2010–49 I.R.B.


0.34 PERCENT

DAYS FACTOR

186 .001734096187 .001743428188 .001752759189 .001762090190 .001771422

191 .001780753192 .001790085193 .001799417194 .001808749195 .001818081

196 .001827413197 .001836745198 .001846077199 .001855409200 .001864741

201 .001874074202 .001883406203 .001892739204 .001902072205 .001911405

206 .001920737207 .001930070208 .001939403209 .001948737210 .001958070

211 .001967403212 .001976736213 .001986070214 .001995404215 .002004737

216 .002014071217 .002023405218 .002032739219 .002042073220 .002051407

221 .002060741222 .002070075223 .002079410224 .002088744225 .002098079


0.34 PERCENT

DAYS FACTOR

226 .002107413227 .002116748228 .002126083229 .002135418230 .002144752

231 .002154088232 .002163423233 .002172758234 .002182093235 .002191429

236 .002200764237 .002210100238 .002219435239 .002228771240 .002238107

241 .002247443242 .002256779243 .002266115244 .002275451245 .002284787

246 .002294124247 .002303460248 .002312797249 .002322133250 .002331470

251 .002340807252 .002350144253 .002359481254 .002368818255 .002378155

256 .002387492257 .002396829258 .002406167259 .002415504260 .002424842

261 .002434179262 .002443517263 .002452855264 .002462193265 .002471531


0.34 PERCENT

DAYS FACTOR

266 .002480869267 .002490207268 .002499545269 .002508884270 .002518222

271 .002527561272 .002536899273 .002546238274 .002555577275 .002564916

276 .002574255277 .002583594278 .002592933279 .002602272280 .002611611

281 .002620951282 .002630290283 .002639630284 .002648969285 .002658309

286 .002667649287 .002676989288 .002686329289 .002695669290 .002705009

291 .002714350292 .002723690293 .002733030294 .002742371295 .002751711

296 .002761052297 .002770393298 .002779734299 .002789075300 .002798416

301 .002807757302 .002817098303 .002826439304 .002835781305 .002845122

2010–49 I.R.B. 806 December 6, 2010


0.34 PERCENT

DAYS FACTOR

306 .002854464307 .002863806308 .002873147309 .002882489310 .002891831

311 .002901173312 .002910515313 .002919857314 .002929200315 .002938542

316 .002947884317 .002957227318 .002966570319 .002975912320 .002985255

321 .002994598322 .003003941323 .003013284324 .003022627325 .003031970


0.34 PERCENT

DAYS FACTOR

326 .003041314327 .003050657328 .003060001329 .003069344330 .003078688

331 .003088031332 .003097375333 .003106719334 .003116063335 .003125407

336 .003134752337 .003144096338 .003153440339 .003162785340 .003172129

341 .003181474342 .003190818343 .003200163344 .003209508345 .003218853


0.34 PERCENT

DAYS FACTOR

346 .003228198347 .003237543348 .003246888349 .003256234350 .003265579

351 .003274925352 .003284270353 .003293616354 .003302962355 .003312308

356 .003321653357 .003330999358 .003340346359 .003349692360 .003359038

361 .003368384362 .003377731363 .003387077364 .003396424365 .003405771

366 .003415117367 .003424464368 .003433811369 .003443158370 .003452506

371 .003461853

December 6, 2010 807 2010–49 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous2011 Limitations Adjusted AsProvided in Section 415(d),etc.1

Notice 2010–78

Section 415 of the Internal RevenueCode (the Code) provides for dollar lim-itations on benefits and contributions un-der qualified retirement plans. Section415(d) requires that the Commissioner an-nually adjust these limits for cost-of-livingincreases. Other limitations applicable todeferred compensation plans are also af-fected by these adjustments under § 415.Under § 415(d), the adjustments are to bemade pursuant to adjustment procedureswhich are similar to those used to adjustbenefit amounts under § 215(i)(2)(A) ofthe Social Security Act.

The limitations that are adjusted by ref-erence to § 415(d) generally will remainunchanged for 2011. This is because thecost-of-living index for the quarter endedSeptember 30, 2010, while greater thanthe cost-of-living index for the quarterended September 30, 2009, is less than thecost-of-living index for the quarter endedSeptember 30, 2008, and, following theprocedures under the Social Security Actfor adjusting benefit amounts, any declinein the applicable index cannot result ina reduced limitation. For example, thelimitation under § 402(g)(1) on the ex-clusion for elective deferrals describedin § 402(g)(3) will be $16,500 for 2011,which is the same amount as for 2009and 2010. This limitation affects electivedeferrals to § 401(k) plans, § 403(b) plans,and to the Federal Government’s ThriftSavings Plan, among other plans.

Cost-of-Living Adjusted Limits for2011

Effective January 1, 2011, the limita-tion on the annual benefit under a definedbenefit plan under § 415(b)(1)(A) re-mains unchanged at $195,000. Pursuantto § 1.415(d)–1(a)(2)(ii) of the IncomeTax Regulations, the adjustment to thelimitation under a defined benefit planunder § 415(b)(1)(B) is determined usinga special rule that takes into account that

the cost-of-living indexes for the quar-ter ended Sept. 30, 2009, and for thequarter ended Sept. 30, 2010, were bothless than the cost-of-living index for thequarter ended Sept. 30, 2008, and thatthe cost-of-living index for the quarterended Sept. 30, 2010, is greater thanthe cost-of-living index for the quarterended Sept. 30, 2009. For a participantwho separated from service before Jan. 1,2010, the participant’s limitation under adefined benefit plan under § 415(b)(1)(B)is unchanged (i.e., the adjustment factor is1.0000). For a participant who separatedfrom service during 2010, the limita-tion under a defined benefit plan under§ 415(b)(1)(B) for 2011 is computed bymultiplying the participant’s 2010 com-pensation limitation by 1.0118 in order toreflect changes in the cost-of-living indexfrom the quarter ended Sept. 30, 2009, tothe quarter ended Sept. 30, 2010.

The limitation for defined contributionplans under § 415(c)(1)(A) remains un-changed for 2011 at $49,000.

The Code provides that various otherdollar amounts are to be adjusted at thesame time and in the same manner as thedollar limitation of § 415(b)(1)(A). Aftertaking into account the applicable round-ing rules, the amounts for 2011 are as fol-lows:

The limitation under § 402(g)(1) onthe exclusion for elective deferrals de-scribed in § 402(g)(3) remains unchangedat $16,500.

The annual compensation limit under§§ 401(a)(17), 404(l), 408(k)(3)(C), and408(k)(6)(D)(ii) remains unchanged at$245,000.

The dollar limitation under§ 416(i)(1)(A)(i) concerning the definitionof key employee in a top-heavy planremains unchanged at $160,000.

The dollar amount under§ 409(o)(1)(C)(ii) for determining themaximum account balance in an employeestock ownership plan subject to a 5-yeardistribution period remains unchanged at$985,000, while the dollar amount used todetermine the lengthening of the 5-yeardistribution period remains unchanged at$195,000.

The limitation used in the definitionof highly compensated employee under§ 414(q)(1)(B) remains unchanged at$110,000.

The dollar limitation under§ 414(v)(2)(B)(i) for catch-up contribu-tions to an applicable employer plan otherthan a plan described in § 401(k)(11) or408(p) for individuals aged 50 or overremains unchanged at $5,500. The dollarlimitation under § 414(v)(2)(B)(ii) forcatch-up contributions to an applicableemployer plan described in § 401(k)(11)or 408(p) for individuals aged 50 or overremains unchanged at $2,500.

The annual compensation limitationunder § 401(a)(17) for eligible partici-pants in certain governmental plans that,under the plan as in effect on July 1, 1993,allowed cost-of-living adjustments to thecompensation limitation under the planunder § 401(a)(17) to be taken into ac-count, remains unchanged at $360,000.

The compensation amount under§ 408(k)(2)(C) regarding simplified em-ployee pensions (SEPs) remains un-changed at $550.

The limitation under § 408(p)(2)(E) re-garding SIMPLE retirement accounts re-mains unchanged at $11,500.

The limitation on deferrals under§ 457(e)(15) concerning deferred compen-sation plans of state and local governmentsand tax-exempt organizations remains un-changed at $16,500.

The compensation amounts under§ 1.61–21(f)(5)(i) of the Income TaxRegulations concerning the definition of“control employee” for fringe benefit val-uation purposes remains unchanged at$95,000. The compensation amount under§ 1.61–21(f)(5)(iii) remains unchanged at$195,000.

The Code also provides that severalpension-related amounts are to be adjustedusing the cost-of-living adjustment un-der § 1(f)(3). After taking the applicablerounding rules into account, the amountsfor 2011 are as follows:

The adjusted gross income limitationunder § 25B(b)(1)(A) for determining theretirement savings contribution credit fortaxpayers filing a joint return is increasedfrom $33,500 to $34,000; the limitation

1 Based on News Release IR–2010–108 dated October 28, 2010.

2010–49 I.R.B. 808 December 6, 2010

under § 25B(b)(1)(B) is increased from$36,000 to $36, 500; and the limitation un-der § 25B(b)(1)(C) and (D) is increasedfrom $55,500 to $56,500.

The adjusted gross income limitationunder § 25B(b)(1)(A) for determining theretirement savings contribution credit fortaxpayers filing as head of household is in-creased from $25,125 to $25,500; the lim-itation under § 25B(b)(1)(B) is increasedfrom $27,000 to $27,375; and the limita-tion under § 25B(b)(1)(C) and (D) is in-creased from $41,625 to $42,375.

The adjusted gross income limitationunder § 25B(b)(1)(A) for determiningthe retirement savings contribution creditfor all other taxpayers is increased from$16,750 to $17,000; the limitation un-der § 25B(b)(1)(B) is increased from$18,000 to $18,250; and the limitationunder § 25B(b)(1)(C) and (D) is increasedfrom $27,750 to $28,250.

The deductible amount under§ 219(b)(5)(A) for an individual makingqualified retirement contributions remainsunchanged at $5,000.

The applicable dollar amount under§ 219(g)(3)(B)(i) for determining the de-ductible amount of an IRA contributionfor taxpayers who are active participantsfiling a joint return or as a qualifyingwidow(er) is increased from $89,000 to$90,000. The applicable dollar amountunder § 219(g)(3)(B)(ii) for all other tax-payers (other than married taxpayers filingseparate returns) remains unchanged at$56,000. The applicable dollar amountunder § 219(g)(7)(A) for a taxpayer who isnot an active participant but whose spouseis an active participant is increased from$167,000 to $169,000.

The adjusted gross income limita-tion under § 408A(c)(3)(C)(ii)(I) fordetermining the maximum Roth IRAcontribution for taxpayers filing a jointreturn or as a qualifying widow(er) isincreased from $167,000 to $169,000.The adjusted gross income limitation un-der § 408A(c)(3)(C)(ii)(II) for all othertaxpayers (other than married taxpayersfiling separate returns) is increased from$105,000 to $107,000.

The dollar amount under Section430(c)(7)(D)(i)(II) used to determine ex-cess employee compensation with respectto a single-employer defined benefit pen-sion plan for which the special election un-

der section 430(c)(2)(D) has been made isincreased from $1,000,000 to $1,014,000.

Drafting Information

The principal author of this notice isJohn Heil of the Employee Plans, Tax Ex-empt and Government Entities Division.For further information regarding the datain this notice, please contact the EmployeePlans’ taxpayer assistance telephone ser-vice at 1–877–829–5500 (a toll-free call)between the hours of 8:30 a.m. and4:30 p.m. Eastern time Monday throughFriday. For information regarding themethodology used in arriving at the datain this notice, please e-mail Mr. Heil [email protected].

Modification of Section 833Treatment of Certain HealthOrganizations

Notice 2010–79

SECTION 1. PURPOSE

.01 This notice alerts taxpayers to anamendment made to § 833 of the Inter-nal Revenue Code (Code) by the PatientProtection and Affordable Care Act (H.R.3590, P.L. 111–148) (the “Affordable CareAct”). Section 833 provides special rulesfor certain Blue Cross and Blue Shieldorganizations, and certain other organiza-tions. Effective for taxable years begin-ning after December 31, 2009, the amend-ment adds new § 833(c)(5), which limitsthe application of § 833 to otherwise-qual-ifying taxpayers with a medical loss ratiothat is not less than 85 percent.

.02 This notice also provides interimguidance to taxpayers on the interpre-tation and application of § 833(c)(5).The Affordable Care Act was enactedon March 23, 2010, adding § 833(c)(5)with retroactive effect for taxable yearsbeginning after December 31, 2009. TheTreasury Department and the InternalRevenue Service (Service) are engagedin developing detailed guidance for thisprovision. That guidance must also takeinto account other closely related guidancethat the Department of Health and Hu-man Services (HHS) has just published.To allow affected taxpayers to complywith the mid-year change in law while

detailed guidance is under development,the Treasury Department and the Serviceare providing interim guidance on the op-eration of § 833(c)(5) for the first taxableyear beginning after December 1, 2009.

SECTION 2. BACKGROUND

.01 An insurance company other thana life insurance company is subject to taxunder § 831.

.02 Section 831(c) provides that forpurposes of § 831, the term “insurancecompany” has the meaning given to suchterm by § 816(a). Section 816(a) providesthe term “insurance company” means anycompany more than half of the businessof which during the taxable year is theissuing of insurance or annuity contractsor the reinsuring of risks underwritten byinsurance companies.

.03 Section 832(a) provides that, for aninsurance company subject to the tax im-posed by § 831, the term “taxable income”means the company’s gross income asdefined in § 832(b)(1) less the deductionsauthorized in § 832(c). Under § 832(b)(1),gross income includes underwriting in-come.

.04 Section 832(b)(3) defines under-writing income as the premiums earned oninsurance contracts during the taxable yearless losses incurred and expenses incurred.

.05 Section 832(b)(4) defines the term“premiums earned on insurance contractsduring the taxable year” as the gross pre-miums written on insurance contracts dur-ing the taxable year, less return premiumsand premiums paid for reinsurance. Theresult so obtained is further adjusted byadding 80 percent of the unearned premi-ums on outstanding business at the end ofthe preceding taxable year and deducting80 percent of the unearned premiums onoutstanding business at the end of the tax-able year.

.06 Section 833 provides special rulesfor existing Blue Cross or Blue Shield or-ganizations and other organizations thatmeet the requirements of § 833(c)(3)—

(a) Section 833(a)(1) states that such anorganization is subject to tax in the samemanner as if it were a stock insurance com-pany;

(b) Section 833(a)(2) allows a specialdeduction for such an organization, deter-mined under § 833(b), which is the excess(if any) of (i) 25 percent of the sum of the

December 6, 2010 809 2010–49 I.R.B.

claims incurred during the taxable year, li-abilities incurred during the taxable yearunder cost-plus contracts, and expenses in-curred during the taxable year in connec-tion with the administration, adjustment,or settlement of claims or in connectionwith the administration of cost-plus con-tracts, over (ii) the adjusted surplus as ofthe beginning of the taxable year; and

(c) Section 833(a)(3) provides that the20 percent reduction of unearned premi-ums set forth in § 832(b)(4) does not applyto such an organization.

.07 Section 9016 of the Affordable CareAct added § 833(c)(5) to the Code, effec-tive for taxable years beginning after De-cember 31, 2009. Section 833(c)(5) pro-vides that § 833 does not apply to an oth-erwise-eligible organization unless the or-ganization’s medical loss ratio, as defined,during the taxable year is not less than85 percent. For this purpose, an organi-zation’s medical loss ratio is equal to theamount expended on reimbursement forclinical services provided to enrollees un-der its policies during the taxable year (asreported under § 2718 of the Public HealthService Act) (“Section 833 MLR Numer-ator”) divided by the organization’s totalpremium revenue (“Section 833 MLR De-nominator”).

.08 Section 2718 of the Public HealthService Act (the “PHS Act”) was added by§ 1001 and amended by § 10101 of the Af-fordable Care Act, and was incorporatedinto the Code by § 9815(a)(1). Section2718(a) of the PHS Act requires a healthinsurance issuer to submit an annual re-port to the Secretary of HHS concerningthe ratio of the incurred loss (or incurredclaims) plus the loss adjustment expenses(or change in contract reserves) to earnedpremiums. The report must include thepercentage of total premium revenue, af-ter accounting for collections or receiptsfor risk adjustment and risk corridors andpayments of reinsurance, that the issuerexpends (a) on reimbursement for clinicalservices provided to enrollees; (b) for ac-tivities that improve health care quality;and (c) on all other non-claims costs.

.09 Section 2718(b) of the PHS Act re-quires that a health insurance issuer, begin-ning not later than January 1, 2011, pro-vide a rebate to each enrollee, on a prorata basis, if the ratio of (a) the amount ofpremium revenue expended on reimburse-ment for clinical services and for activities

that improve health care quality to (b) thetotal amount of premium revenue (exclud-ing Federal and State taxes and licensingor regulatory fees and after accounting forpayments or receipts for risk adjustment,risk corridors and reinsurance) is less thana prescribed percentage.

.10 Section 2718(c) of the PHS Actdirects the National Association of Insur-ance Commissioners (NAIC) to establishuniform definitions of the activities re-quired to be reported to the Departmentof HHS under § 2718(a), and standard-ized methodologies for calculating mea-sures of these activities, not later thanDecember 31, 2010, and subject to thecertification of the Secretary of HHS. OnNovember 22, 2010, the Department ofHHS filed with the Federal Register, forpublication December 1, 2010, interimfinal regulations implementing § 2718.See http://www.ofr.gov/OFRUpload/OFR-Data/2010–29596_PI.pdf.

SECTION 3. INTERIM GUIDANCEFOR 2010

.01 The Treasury Department and theService are aware that because § 833(c)(5)applies to taxable years beginning af-ter December 31, 2009 (including theperiod in 2010 before enactment of theAffordable Care Act), the implementa-tion of § 833(c)(5) presents issues forthe first taxable year beginning afterDecember 31, 2009. Moreover, because§ 833(c)(5) references § 2718 of thePHS Act, the Treasury Department andthe Service, and taxpayers, will needto consider the effect, if any, of therecently-published guidance under § 2718on issues that arise under § 833(c)(5).Finally, the Treasury Department and theService anticipate issuing further guidanceon § 833(c)(5). Accordingly, this Section3 provides interim guidance that taxpayersmay rely on solely for the first taxable yearbeginning after December 31, 2009.

Computation of MLR Numerator forPurposes of § 833(c)(5)

.02 For purposes of determiningwhether a taxpayer’s percentage of totalpremium revenue expended on reimburse-ment for clinical services provided to en-rollees is not less than 85 percent (and thussatisfies the requirement of § 833(c)(5)),

taxpayers must use the definition of “reim-bursement for clinical services provided toenrollees” that is set forth in HHS interimfinal regulations.

.03 For purposes of determiningwhether the 85-percent requirement of§ 833(c)(5) is satisfied, the Service willnot challenge the inclusion of “amountsexpended for activities that improve healthcare quality” as defined in HHS interimfinal regulations.

Consequences of Nonapplication of § 833by Reason of § 833(c)(5)

.04 Section 833(c)(5) provides that§ 833 does not apply to an organizationunless the organization’s percentage oftotal premium revenue expended on reim-bursement for clinical services providedto enrollees is not less than 85 percent.Accordingly, the consequences for an or-ganization for which this amount is lessthan 85 percent are as follows:

(a) The organization is not taxable asa stock insurance company by reason of§ 833(a)(1) (but may be taxable as an in-surance company if it otherwise meets therequirements of § 831(c));

(b) The organization is not allowed thespecial deduction set forth in § 833(b); and

(c) The organization takes into account80 percent, rather than 100 percent, ofits unearned premiums for purposes ofcomputing premiums earned on insurancecontracts during the taxable year under§ 832(b)(4).

.05 Notwithstanding Section 3.04(a) ofthis notice and solely for the first taxableyear beginning after December 31, 2009,the Service will not treat a taxpayer as los-ing its status as a stock insurance companyby reason of § 833(c)(5) provided the fol-lowing conditions are met—

(a) the taxpayer was described in§ 833(c) in the immediately precedingtaxable year;

(b) the taxpayer would have been taxedas a stock insurance company for the cur-rent taxable year but for the enactment of§ 833(c)(5); and

(c) the taxpayer would have met therequirements of § 831(c) to be taxed asan insurance company for the current tax-able year but for its activities in the ad-ministration, adjustment or settlement ofclaims under cost-plus or administrativeservices-only contracts.

2010–49 I.R.B. 810 December 6, 2010

Changes in Accounting Method

.06 Section 446(e) of the Code statesthat, except as otherwise provided, a tax-payer that changes a method of accountingon the basis of which it regularly com-putes income in keeping its books mustsecure consent before computing taxableincome under a new method. Section1.446–1(e)(3)(i) of the Income Tax Reg-ulations requires that, except as providedunder the authority of § 1.446–1(e)(3)(ii),to secure the Commissioner’s consent tochange its method of accounting, a tax-payer must file a Form 3115, Applicationfor Change in Accounting Method, duringthe taxable year in which the taxpayerdesires to make the proposed change.

.07 Rev. Proc. 97–27, 1997–1 C.B.680, as amplified and modified by Rev.Proc. 2002–19, 2002–1 C.B. 696, asamplified and clarified by Rev. Proc.2002–54, 2002–2 C.B. 432, as modified byRev. Proc. 2007–67, 2007–2 C.B. 1072,and as clarified and modified by Rev.Proc. 2009–39, 2009–2 C.B. 371, pro-vides the general procedures for obtainingthe advance consent of the Commissionerto change a method of accounting. Seealso Rev. Proc. 2010–1, 2010–1 I.R.B. 1(or any successor).

.08 The application of § 833 in a tax-able year followed by nonapplication ofthat provision in the subsequent taxableyear (or vice versa) may result in one ormore changes in accounting method. Forexample, accounting for 100 percent of un-earned premiums under § 833(a)(3) in oneyear, but only 80 percent of unearned pre-miums under § 832(b)(4) in the next year,is a change in method of accounting. Like-wise, the loss (or recovery) of insurancecompany status may implicate a number ofchanges in methods of accounting becausesome methods of accounting are availableonly to insurance companies under Sub-chapter L. The special deduction allowedunder § 833(a)(2) and § 833(b) is not, how-ever, a method of accounting.

.09 A taxpayer that is required tochange one or more methods of accountingby reason of the application or nonappli-cation of § 833 must secure consent forthese changes under the advance consentprocedures of Rev. Proc. 97–27. Theseaccounting method changes are not withinthe scope of Rev. Proc. 2008–52, 2008–2

C.B. 587, as amplified, clarified, and mod-ified by Rev. Proc. 2009–39.

SECTION 4. PROCEDURALINFORMATION AND RELIANCE ONINTERIM GUIDANCE

This notice serves as an “administra-tive pronouncement” as that term is usedin § 1.6662–4(d)(3)(iii) of the Income TaxRegulations and may be relied upon to thesame extent as a revenue ruling or revenueprocedure. If, and to the extent, future pub-lished guidance differs from the interimguidance in this notice, the different pro-visions of that future guidance will be ap-plied without adverse retroactive effect.

SECTION 5. REQUEST FORCOMMENTS

.01 The Treasury Department and theService request comments on the follow-ing:

(a) What guidance, if any, will taxpay-ers need under § 833(c)(5) for years afterthe transition year that is addressed in Sec-tion 3 of this notice?

(b) Is more specific guidance needed onaccounting method issues that arise whena taxpayer loses its status as an insurancecompany?

(c) Will guidance be needed in the fu-ture on the appropriate Subchapter L treat-ment of rebates that are paid under § 2718of the PHS Act?

(d) The Treasury Department and theService recognize that medical loss ratiosare computed under § 2718 of the PHS Act,as well as under § 833(c)(5). Commentsare requested on how guidance could co-ordinate the medical loss ratio computa-tion under § 2718 of the PHS Act withthe medical loss ratio computation under§ 833(c)(5).

.02 Comments should be submitted inwriting on or before March 7, 2011 andshould contain reference to this Notice2010–79. Comments may be submitted toCC:PA:LPD:PR (Notice 2010–79), Room5203, Internal Revenue Service, P.O. Box7604, Ben Franklin Station, Washing-ton, DC 20044. Alternatively, taxpayersmay submit comments electronically [email protected] include “Notice 2010–79” inthe subject line of any electroniccommunications.

.03 Submissions may be hand-deliveredMonday through Friday between the hoursof 8 a.m. and 4 p.m. to CC:PA:LPD:PR(Notice 2010–79), Courier’s Desk, Inter-nal Revenue Service, 1111 ConstitutionAve., NW, Washington, DC 20224. Allcomments will be available for public in-spection and copying.

DRAFTING INFORMATION

The principal author of this notice isRebecca L. Baxter of the Office of As-sociate Chief Counsel (Financial Institu-tions & Products (CC:FIP:B04)). For fur-ther information regarding this notice, con-tact Ms. Baxter at (202) 622–7117 (not atoll-free call).

26 CFR 1.263–1: Uniform capitalization of costs.(Also: §§ 446; 1.263A–2, 1.263A–3, 1.446–1.)

Rev. Proc. 2010–44

SECTION 1. PURPOSE

This revenue procedure provides thatcertain motor vehicle dealerships may useeither or both of the safe harbor meth-ods of accounting provided by this revenueprocedure to (1) treat certain sales facil-ities as retail sales facilities for purposesof § 263A of the Internal Revenue Code,and (2) be treated as resellers without pro-duction activities for purposes of § 263A.This revenue procedure also provides pro-cedures for obtaining automatic consent tomake accounting method changes to usethe safe harbor methods.


.01 Sections 263A(a) and1.263A–1(a)(3)(i) of the Income TaxRegulations require a taxpayer subject to§ 263A to include in inventory costs directcosts and indirect costs properly allocableto the taxpayer’s produced and acquiredinventory property.

.02 Section 1.263A–3(c)(1) requires ataxpayer that acquires property for resale(reseller) to capitalize the acquisition costof, and the indirect costs that are prop-erly allocable to, property acquired for re-sale. The indirect costs most often in-curred by resellers are purchasing, han-dling, and storage costs. However, a re-seller is not required to capitalize handling

December 6, 2010 811 2010–49 I.R.B.

and storage costs incurred at a retail salesfacility. §§ 1.263A–3(c)(4)(i) and (c)(5).

.03 Handling costs include the costsof processing, assembling, repackaging,transporting, and other similar activi-ties that do not come within the mean-ing of the term produce as defined in§ 1.263A–2(a)(1). § 1.263A–3(c)(4).

.04 Section 1.263A–3(c)(5)(ii)(B) de-fines a retail sales facility as a facilitywhere a taxpayer sells merchandise exclu-sively to retail customers in on-site sales.For purposes of § 1.263A–3(c)(5)(ii)(B), aretail sales facility includes those portionsof any specific retail site (i) that are cus-tomarily associated with and are an inte-gral part of the operations of that retail site;(ii) that are generally open each businessday exclusively to retail customers; (iii)on or in which retail customers normallyand routinely shop to select specific itemsof merchandise; and (iv) that are adjacentto or in immediate proximity to other por-tions of the specific retail site.

.05 As explained in the example in§ 1.263A–3(c)(5)(ii)(B)(2), two lots ofan automobile dealership physically sep-arated by an alley or an access road aregenerally considered one retail sales fa-cility, provided customers routinely shopon both of the lots to select the specificautomobiles that they wish to acquire.

.06 Section 1.263A–3(c)(5)(ii)(E) de-fines a retail customer as the final pur-chaser of the merchandise.

.07 Section 263A(i) provides that theTreasury Department will prescribe regu-lations as may be necessary or appropriateto carry out the purposes of § 263A, includ-ing providing for simplified procedures forthe application of § 263A to property ac-quired for resale.

.08 Section 1.263A–3(d) provides asimplified resale method for determiningthe additional § 263A costs (within themeaning of § 1.263A–1(d)(3)) properlyallocable to property acquired for resaleand other eligible property on hand at theend of the taxable year.

.09 In the Conference Report accompa-nying the Tax Reform Act of 1986, PublicLaw No. 99–514 (100 Stat. 2085 (1986)),the conferees directed the Treasury De-partment to create a simplified method forapplying the uniform capitalization rulesof § 263A to resellers (resulting in the sim-plified resale method in § 1.263A–3(d))and authorized the Treasury Department

to modify the simplified method or permitthe use of other methods by rules or reg-ulations for property acquired for resale.H.R. Rep. No. 99–841 (Conf. Rep.), 99thCong., 2d Sess. II–308 (1986).

.10 Sections 446(e) and 1.446–1(e)(2)state that, except as otherwise provided,a taxpayer must secure the consent of theCommissioner before changing a methodof accounting for federal income tax pur-poses.

.11 Rev. Proc. 2008–52, 2008–2 C.B.587 (as amplified, clarified, and modifiedby Rev. Proc. 2009–39, 2009–2 C.B.371), provides procedures for a taxpayer toobtain automatic consent of the Commis-sioner to change to a method of account-ing described in the APPENDIX of Rev.Proc. 2008–52. Rev. Proc. 97–27, 1997–1C.B. 680 (as modified and amplified byRev. Proc. 2002–19, 2002–1 C.B. 696,as amplified and clarified by Rev. Proc.2002–54, 2002–2 C.B. 432, as modified byRev. Proc. 2007–67, 2007–2 C.B. 1072,and as clarified and modified by Rev. Proc.2009–39), provides procedures for a tax-payer to request non-automatic consent tochange a method of accounting.

SECTION 3. SCOPE

.01 Except as provided in section 3.02,any motor vehicle dealership, as defined insection 4 of this revenue procedure, mayuse either or both of the safe harbor meth-ods described in section 5 of this revenueprocedure.

.02 A motor vehicle dealership that re-moves § 471 costs from ending inventoryby treating them as negative amounts inthe numerator of either the simplified re-sale method formula or the simplified pro-duction method formula, may not use ei-ther safe harbor method of accounting de-scribed in section 5 of this revenue proce-dure. If a motor vehicle dealership cur-rently removes § 471 costs from endinginventory in that manner, it must changefrom that method of accounting in accor-dance with section 7 of this revenue proce-dure in order to use the safe harbor meth-ods.

SECTION 4. MOTOR VEHICLEDEALERSHIP

.01 For purposes of this revenue proce-dure, a motor vehicle dealership is a deal-

ership that primarily purchases and resellsto retail customers, one or more of the fol-lowing categories of new or used motor ve-hicles:

(a) automobiles;(b) light-duty trucks;(c) medium-duty trucks;(d) heavy-duty trucks;(e) recreational vehicles;(f) motorcycles;(g) boats;(h) farm machinery and equipment; or(i) construction machinery and equip-

ment.

SECTION 5. SAFE HARBORMETHODS

.01 Retail sales facility safe harbormethod. A motor vehicle dealership maytreat its entire sales facility from which itnormally and routinely conducts on-sitesales to retail customers, including anyvehicle lot that is an integral part of itssales facility and that is routinely visitedby retail customers, as a retail sales facilityunder § 1.263A–3(c)(5)(ii)(B). A motorvehicle dealership using this retail salesfacility safe harbor method is not requiredto capitalize handling and storage costsincurred at its retail sales facility.

.02 Reseller without production activi-ties safe harbor method. A motor vehicledealership may treat itself as a resellerwithout production activities for purposesof § 1.263A–3. For purposes of this rev-enue procedure, activities that a motor ve-hicle dealership, or a contractor, performon dealership-owned vehicles and cus-tomer-owned vehicles are handling activ-ities under §1.263A–3(c)(4), but the costsof these handling activities, other than thecost of vehicle parts, are not required tobe capitalized to the extent incurred atthe motor vehicle dealership’s retail salesfacility. A motor vehicle dealership mustcapitalize the cost of vehicle parts usedon dealership-owned vehicles as an ac-quisition cost of its vehicles, whether thevehicle parts are acquired directly by thedealership or indirectly through a contrac-tor. See §§ 1.471–3 and 1.263A–3(c)(1).A motor vehicle dealership using the re-seller without production activities safeharbor method may use the simplified re-sale method under § 1.263A–3(d) for itsvehicles and other eligible property.

2010–49 I.R.B. 812 December 6, 2010

SECTION 6. CHANGE IN METHODOF ACCOUNTING

A motor vehicle dealership that wantsto change its method of accounting under§ 263A to either or both of the safe har-bor methods described in section 5 of thisrevenue procedure must use the automaticchange in method of accounting provisionsin Rev. Proc. 2008–52, as further modifiedby this revenue procedure, if the dealershipis within the scope of Rev. Proc. 2008–52.Otherwise, a motor vehicle dealership mayrequest to change its method of accountingusing the non-automatic provisions of Rev.Proc. 97–27, if the dealership is within thescope of Rev. Proc. 97–27.

SECTION 7. EFFECT ON OTHERDOCUMENTS

Rev. Proc. 2008–52 is modified to addnew section 11.07 to the APPENDIX, toread as follows:

.07 Safe harbor methods under § 263Afor certain dealerships of motor vehicles.

(1) Description of change. This changeapplies to a motor vehicle dealership, asdefined in section 4 of Rev. Proc. 2010–44that is within the scope of section 3 ofRev. Proc. 2010–44 and wants to changeits method of accounting to (1) treat itssales facility as a retail sales facility or (2)be treated as a reseller without productionactivities, as described in section 5 of Rev.Proc. 2010–44. A motor vehicle deal-ership that wants to make an automaticchange in method of accounting to useone or both safe harbor methods describedin section 5 of Rev. Proc. 2010–44 maymake any corresponding changes in theidentification of costs subject to § 263Athat will be accounted for using the newmethod (for example, to remove inter-nal profit from inventory costs) or to nolonger include negative amounts as ad-ditional § 263A costs in the numeratorof the simplified resale method formulaor the simplified production method for-mula. However, except as provided in thepreceding sentence, a change under thissection does not include a change for pur-poses of recharacterizing “§ 471 costs” as“additional § 263A costs” (or vice versa)under the simplified resale method or thesimplified production method.

(2) Certain scope limitations temporar-ily inapplicable. The scope limitations in

sections 4.02(1) through (4) and (7) of Rev.Proc. 2008–52, as modified and clarifiedby Rev. Proc. 2009–39, do not apply toa motor vehicle dealership that changes toone or both of the safe harbor methods insection 5 of Rev. Proc. 2010–44 for itsfirst or second taxable year ending afterNovember 9, 2010.

(3) Concurrent automatic changes. Amotor vehicle dealership making an auto-matic change in method of accounting toone or both safe harbor methods describedin section 5 of Rev. Proc. 2010–44 andanother automatic change in method of ac-counting under § 263A for the same tax-able year may file one Form 3115 to makeboth changes, provided the dealership en-ters the designated automatic change num-bers for all such changes in Part I on thatForm 3115, and complies with the order-ing rules of § 1.263A–7(b)(2).

(4) Multiple adjustments. In the eventthat a motor vehicle dealership is tak-ing into account a § 481(a) adjustmentfrom another accounting method changein addition to the § 481(a) adjustmentrequired by a change to a safe harbormethod described in section 5 of Rev.Proc. 2010–44, the § 481(a) adjustmentsmust be taken into account separately.For example, a motor vehicle dealershipthat changed to comply with § 263A in2009 and was required to take its § 481(a)adjustment into account over four yearsmust continue to take into account thatadjustment over the remainder of thatfour year § 481(a) adjustment period eventhough the dealership changed to a safeharbor method described in section 5 ofRev. Proc. 2010–44 in 2010 and has anadditional § 481(a) adjustment requiredby that change.

(5) Designated automatic accountingmethod change numbers. The designatedautomatic accounting method changenumber for a change to treat certain salesfacilities as retail sales facilities as de-scribed in section 5.01 of Rev. Proc.2010–44 is “150.” The designated auto-matic accounting method change numberfor a change to be treated as a resellerwithout production activities as describedin section 5.02 of Rev. Proc. 2010–44 is“151.”

(6) Contact information. For furtherinformation regarding a change underthis section, contact Kari Fisher at (202)622–4970 (not a toll-free call).

SECTION 8. EXPANDED AUDITPROTECTION

A motor vehicle dealership that changesits method of accounting under eitherthe automatic provisions of Rev. Proc.2008–52 or the non-automatic provisionsof Rev. Proc. 97–27 to use a methodof accounting consistent with the safeharbor methods described in section 5 ofthis revenue procedure receives the auditprotection described in section 7 of Rev.Proc. 2008–52 or section 9 of Rev. Proc.97–27, as applicable.

Alternatively, if a motor vehicle deal-ership uses a method of accounting con-sistent with the safe harbor methods de-scribed in section 5 of this revenue proce-dure on a federal income tax return filedbefore November 10, 2010, the Servicewill not assert that these methods are notproper methods of accounting for such tax-able year(s).

SECTION 9. EFFECTIVE DATE

This revenue procedure is effectiveNovember 9, 2010.

SECTION 10. DRAFTINGINFORMATION

The principal author of this revenueprocedure is Kari Fisher of the Officeof Associate Chief Counsel (Income Tax& Accounting). For further informationregarding this revenue procedure, con-tact Kari Fisher at (202) 622–4970 (not atoll-free call).

26 CFR 601.105: Examination of returns and claimsfor refund, credit, or abatement; determination ofcorrect tax liability.(Also Part I, §§ 118, 362.)

Rev. Proc. 2010–45

SECTION 1. PURPOSE

This revenue procedure provides a safeharbor under section 118(a) of the InternalRevenue Code for the treatment of certaingrants to corporations from the NationalEnergy Technology Laboratory of the De-partment of Energy (DOE) under the Elec-tric Drive Vehicle Battery and ComponentManufacturing Initiative (the Initiative) asauthorized by Division A, Title IV of the

December 6, 2010 813 2010–49 I.R.B.

American Recovery and Reinvestment Actof 2009 (Pub. L. 111–5) (ARRA).


Section 118(a) of the Code providesthat in the case of a corporation, gross in-come does not include a contribution to thecapital of the taxpayer.

Section 1.118–1 of the Income TaxRegulations provides that section 118 ap-plies to contributions to capital made by aperson other than a shareholder, for exam-ple, property contributed to a corporationby a governmental unit for the purposeof enabling the corporation to expand itsoperating facilities.

Section 362(c)(2) of the Code requires abasis reduction in a corporation’s propertywhen the corporation receives money froma nonshareholder as a contribution to itscapital.

Division A, Title IV of ARRA requiresthe Secretary of Energy to provide facil-ity funding awards to manufacturers of ad-vanced battery systems and vehicle batter-ies that are produced in the United States,including advanced lithium ion batteries,hybrid electrical systems, component man-ufacturers, and software designers. $2 bil-lion was made available for grants for themanufacturing of advanced batteries andcomponents.

The Initiative provides grants for sevenAreas of Interest: (1) Cell and BatteryManufacturing Facilities; (2) AdvancedBattery Supplier Manufacturing Facili-ties; (3) Combined Applications for Ar-eas of Interest 1 and 2; (4) AdvancedLithium ion Battery Recycling Facilities;(5) Electric Drive Component Manu-facturing Facilities; (6) Electric DriveSubcomponent Manufacturing Facilities;and (7) Combined Applications for Ar-eas of Interest 5 and 6. See FundingOpportunity Number DE-FOA–0000026(March 19, 2009). This guidancemay be accessed electronically at:http://www.netl.doe.gov/business/solicita-tions/archive/main-FY09.html#00026

SECTION 3. SCOPE

This revenue procedure applies to cor-porate taxpayers that receive a grant fromDOE under the Initiative for Areas of In-terest 1 through 7. This revenue proce-dure does not apply to the portion of any

grant paid or incurred for travel or trainingexpenses or paid to reimburse pre-applica-tion expenses. For this purpose, pre-appli-cation expenses only include those costsincurred in preparing and submitting anapplication to receive a grant. This rev-enue procedure does not apply to noncor-porate taxpayers.

SECTION 4. PROCEDURE

The Internal Revenue Service will notchallenge a corporation’s treatment of agrant to the corporation from DOE un-der the Initiative for Areas of Interest 1through 7 within the scope of section 3of this revenue procedure as a nonshare-holder contribution to the capital of thecorporation under section 118(a) of theCode if the corporation properly reducesthe basis of its property under section362(c)(2) and the regulations thereunder.




The principal author of this rev-enue procedure is David McDonnell ofthe Office of Associate Chief Counsel(Passthroughs & Special Industries). Forfurther information regarding this revenueprocedure, contact Mr. McDonnell at(202) 622–3040 (not a toll-free call).

26 CFR 601.105: Examination of returns and claimsfor refund, credit, or abatement; determination ofcorrect tax liability.(Also Part I, §§ 118, 362.)

Rev. Proc. 2010–46

SECTION 1. PURPOSE

This revenue procedure provides a safeharbor under section 118(a) of the InternalRevenue Code for certain grant amountsreceived by corporate taxpayers engagedin a transportation trade or business forcapital projects under 49 U.S.C. 24105,24401 et seq., and 26106, as enacted bysections 301, 302, and 501, Division B

of the Passenger Rail Investment and Im-provement Act of 2008 (Pub. L. 110–432),and as amended by Title XII, Division A ofthe American Recovery and ReinvestmentAct of 2009 (Pub. L. 111–5) (ARRA).

Also, this revenue procedure providesa safe harbor under section 118(a) of theCode for certain grant amounts receivedby corporate taxpayers engaged in a trans-portation trade or business for capitalinvestments in surface transportation in-frastructure under (1) the SupplementalDiscretionary Grants for Capital Invest-ments in Surface Transportation Infra-structure (TIGER Discretionary Grants)program as authorized by Title XII, Di-vision A of ARRA; or (2) the NationalInfrastructure Investments (TIGER II Dis-cretionary Grants) program as authorizedby the Transportation, Housing and UrbanDevelopment, and Related Agencies Ap-propriations Act for 2010 (Title I, DivisionA of the Consolidated Appropriations Act,2010 (Pub. L. 111–117)).


Section 118(a) of the Code providesthat in the case of a corporation, gross in-come does not include a contribution to thecapital of the taxpayer.

Section 1.118–1 of the Income TaxRegulations provides that section 118 ap-plies to contributions to capital made by aperson other than a shareholder, for exam-ple, property contributed to a corporationby a governmental unit for the purposeof enabling the corporation to expand itsoperating facilities.

Section 362(c)(2) of the Code requires abasis reduction in a corporation’s propertywhen the corporation receives money froma nonshareholder as a contribution to itscapital.

The Congestion Grant program under49 U.S.C. 24105(a) provides that the Sec-retary of Transportation (the Secretary)may make grants for financing the capi-tal costs of facilities, infrastructure, andequipment for high priority rail corridorprojects necessary to reduce congestion orfacilitate ridership growth in intercity railpassenger transportation.

The Intercity Passenger Rail ServiceCorridor Capital Assistance program un-der 49 U.S.C. 24402(a)(1) provides thatthe Secretary may make grants to assistin financing the capital costs of facilities,

2010–49 I.R.B. 814 December 6, 2010

infrastructure, and equipment necessaryto provide or improve intercity passengerrail transportation.

The High-Speed Rail Corridor Devel-opment program under 49 U.S.C. 26106(a)provides that the Secretary shall establishand implement a high-speed rail corri-dor development program. 49 U.S.C.26106(c) provides that the Secretary maymake grants to finance capital projects inhigh-speed rail corridors.

The Federal Rairoad Administration ofthe Department of Transportation (DOT)issued a Notice of Funding Availability(NOFA), 74 FR 29900, that provides guid-ance on the High-Speed Intercity Passen-ger Rail Program, which includes the Con-gestion Grant program, the Intercity Pas-senger Rail Service Corridor Capital As-sistance program, and the High-Speed RailCorridor Development program. If Con-gress makes additional appropriations forthese programs, the DOT may issue futureNOFAs.

The Office of the Secretary of the DOTissued a NOFA, 74 FR 28755, that pro-vides guidance on TIGER DiscretionaryGrants. The grants must be for capital in-vestments in surface transportation infra-structure. If Congress makes additionalappropriations for this program, the DOTmay issue future NOFAs.

The Office of the Secretary of the DOTissued a NOFA, 75 FR 30460, that pro-vides guidance on TIGER II DiscretionaryGrants. The grants must be for capitalinvestments in surface transportation in-frastructure. The NOFA contemplatesthat some funds may be used to fundthe planning, preparation, or design ofprojects (Tiger II Planning Grants). IfCongress makes additional appropriationsfor this program, the DOT may issue fu-ture NOFAs.

SECTION 3. SCOPE

This revenue procedure applies tocorporate taxpayers engaged in a trans-portation trade or business that receivegrant amounts for capital projects un-der 49 U.S.C. 24105, 24401 et seq.,and 26106. However, in no casewill this revenue procedure apply toamounts received for the following:(1) the cost of National EnvironmentalPolicy Act Documentation, PreliminaryEngineering costs that are not capitalizedfor tax purposes, or the cost of aService Development Plan as describedin 74 FR 29906, section 2.2; (2) thecost of developing a State Rail Planunder 49 U.S.C. 24402(b)(1); or (3) thefirst-dollar liability cost for insurancerelated to the provision of intercitypassenger rail service under 49 U.S.C.24404.

Also, this revenue procedure appliesto corporate taxpayers engaged in a trans-portation trade or business that receivegrant amounts for the costs of capitalinvestments in surface transportation in-frastructure under TIGER DiscretionaryGrants or under TIGER II DiscretionaryGrants. In no case will this revenue pro-cedure apply to amounts received to paythe subsidy and administrative costs ofthe Transportation Infrastructure Financeand Innovation Act of 1998 or to amountsreceived for TIGER II Planning Grants.

Further, this revenue procedure doesnot apply to noncorporate taxpayers.

SECTION 4. PROCEDURE

The Internal Revenue Service will notchallenge a corporate taxpayer’s treatmentof grant amounts received by the corpora-tion for capital projects under 49 U.S.C.

24105, 24401 et seq., or 26106 as a non-shareholder contribution to the capital ofthe corporation under section 118(a) ofthe Code if the corporation properly re-duces the basis of its property under sec-tion 362(c)(2) and the regulations thereun-der.

Also, the Service will not challenge acorporate taxpayer’s treatment of grantamounts received by the corporation underTIGER Discretionary Grants for capi-tal investments in surface transportationinfrastructure or under TIGER II Discre-tionary Grants for capital investments insurface transportation infrastructure as anonshareholder contribution to the capitalof the corporation under section 118(a)of the Code if the corporation properlyreduces the basis of its property undersection 362(c)(2) and the regulationsthereunder.




The principal author of this rev-enue procedure is David McDonnell ofthe Office of Associate Chief Counsel(Passthroughs & Special Industries). Forfurther information regarding this revenueprocedure, contact Mr. McDonnell at(202) 622–3040 (not a toll-free call).

December 6, 2010 815 2010–49 I.R.B.

Part IV. Items of General InterestFoundations Status of CertainOrganizations

Announcement 2010–90

The following organizations have failedto establish or have been unable to main-tain their status as public charities or as op-erating foundations. Accordingly, grantorsand contributors may not, after this date,rely on previous rulings or designationsin the Cumulative List of Organizations(Publication 78), or on the presumptionarising from the filing of notices under sec-tion 508(b) of the Code. This listing doesnot indicate that the organizations have losttheir status as organizations described insection 501(c)(3), eligible to receive de-ductible contributions.

Former Public Charities. The follow-ing organizations (which have been treatedas organizations that are not private foun-dations described in section 509(a) of theCode) are now classified as private foun-dations:

AARDMORE Center, Inc., Evansville, INAccent Center for Training,

Baton Rouge, LAAffordable California, Los Angeles, CAAfrican American Foundation of Greater

Miami, Inc., Miami, FLAlbert Jenkins Sr. Ministries, Inc.,

Greenville, MSAM Envirotraining, Inc., San Antonio, TXAngelic Touch Medical Mission

International, Inc., El Paso, TXArcheologic Alchemy, Pie Town, NMArt in the City, Inc., Markleysburg, PAAtlanta Doo-Wopp Association, Inc.,

Fayetteville, GAAtlantic Outreach and Resource Center,

Los Angeles, CABaby Boomers and Beyond, Inc.,

Denham Springs, LABalance Your Game, Orange Park, FLBaptist Dude Ranch for the Elderly,

Victorville, CABattle Plan Promotions, Columbus, OHBen Terry Youth Foundation,

Santa Rosa, CABertrand Neighborhood Association,

Dallas, TXBishop Ministries, Inc., Pearland, TXBlessing 4 U Incorporated,

Little Rock, AR

Bridge of Hope, Inc. (B.O.H., Inc.),Garden City, GA

Bridges of Hope CommunityDevelopment Center, Inglewood, CA

Caribbean Source, McDonough, GACentury Club, Scottsdale, AZChapel of Truth Maranatha,

Philadelphia, PAChildrens Development Initiative,

Racine, WIChristian Renewal Ministries,

Spokane, WAChristians at the Roundtable of our Lord

and Savior Jesus Christ, Bishopville, SCCommunity Enhancement Corp.,

Detroit, MICommunity H E L P, Inc., Detroit, MICommunity Intervention and Assistance

Foundation, Sanger, CAComputer Career Center Scholarship

Fund, Inc., Garden City, NYCovenant Housing, Inc., Minneapolis, MNC R Y Outreach, Florissant, MODads are Doing Something Foundation,

Ann Arbor, MIDavid G. Burnet Museum, Inc.,

Houston, TXDivision One Kiwanis Foundation, Inc.,

Mitchellville, MDDM Steps, Los Angeles, CADoin Us Proud, Oakland, CADonna P. Jackson Ministries, Inc.,

Tulsa, OKEbauche Foundation of the Arts,

New York, NYEucalyptus View, Inc., Escondido, CAFamily Promise, Southgate, MIFederal City Associates, Inc.,

Washington, DCForever Ministries, West Covina, CAFoundation for Efficient Living,

Los Angeles, CAFraternidad Salvadorena Pro Guasapa,

Fontana, CAFree Indeed, Inc., Wheat Ridge, COFresh Start of Monroe, Inc., Azle, TXGanesh Balakrishnan Foundation,

Chanhassen, MNGenrecord Online, Inc., Kansas City, MOG G & K Ventures, Inc., Prairie View, TXGood Neighbor Program, Inc.,

Van Nuys, CAGranbury Educational Access Channel,

Inc., Granbury, TX

Grand Housing and Finance, Inc.,Arlington, TX

Grassroots Agro-Protection Corporation,Beltsville, MD

Greater Quinn Community DevelopmentCorporation, Detroit, MI

His Ministries, Gladstone, MOHistoric Capitol Theatre Restoration

Project, Brownsville, TXHistoric Poindexter Park Community of

Shalom Zone, Jackson, MSHodari Hope, Hinesville, GAHomeless Aged and Youth Awareness of

Texas, Duncanville, TXHoney Bears, Inc., Los Angeles, CAI Have Crossed the Red Sea Ministry,

Houston, TXInca Imports, Inc., Warrenton, VAIncentive Ranch, Inc., Wallis, TXIn the Mighty Name of Jesus Christ

Ministry, Canal Winchester, OHJenn Lioy Education Foundation,

Petaluma, CAJoshuas House, Troutdale, ORLakeside Optimist Youth Foundation,

Lakeside, CALillie Bell Corporation, Inc., Atlanta, GALincoln Prep Boys Basketball Foundation,

San Diego, CALiving Word of God Community Center,

Inc., Fort Wayne, INLoving Care Assisted Living Center,

Missouri City, TXMercy Group, Chesterfield, MOMetro Sportsmens Club, Coleman, MIMinistries of Mercy, Baltimore, MDMississippi River Citizens Commission,

Dakota, MNMS Delta Housing Program, Inc.,

Jackson, MSMusicians and Artists of Collin County,

Inc., Plano, TXNew Horizon Community Services,

Jesup, GANew Start Outreach Ministries, Inc.,

Long Beach, CAOzone Business Gallery, Youngstown, OHPanhandle Aquatics, Inc., Amarillo, TXPapillon Industries Incorporated,

Springfield, VAPeace Center, Inc., Bowie, MDPeople With a Vision, Harrisburg, PAPriestley Chapel Outreach Ministries,

Inc., Canton, MS

2010–49 I.R.B. 816 December 6, 2010

Reach One Teach One Academy, Inc.,Charlotte, NC

REC Club, Wareham, MARewards Network, Pittsburgh, PARhea’s Educational Arts Foundation,

Pikesville, MDSan Jeronimo Foundation,

San Geronimo, CASecond Chance Ministry, Silver City, NCShelem Corporation, Troutdale, ORSigma Oklahoma Foundation,

Oklahoma City, OKSisters Housing, Elk Grove, CASpanish Mustang Foundation,

Estancia, NMSpirit of Life Foundation, Inc.,

Rockville, MDStrategic Partnership of Michigan, Inc.,

Southfield, MISwift Track Club, Inc.,

Farmington Hills, MI

Take the Reins, Inc., Fairfield, CATeddy Bear Club Daycare, Inc.,

Brooklyn, NYTime Out for Christ Christian Missionary,

Stone Mtn, GATraining Authority Group, Inc.,

Charleston, WVTree of Life Aftercare Program,

Louisville, KYT.W.C. Residential Facility, Inc.,

Pine Bluff, ARUjima Mission to Africa, Montclair, NJUmueze Visions, Inc., Philadelphia, PAUnited Vietnamese Americans,

San Jose, CAValley CAN, Fresno, CAVision of Fire Ministries, Lodi, CAWestchester Childrens Museum,

White Plains, NYWestside International Ministries,

Dover, DE

Whaz-Up Productions, Inc.,Clarkesville, GA

If an organization listed above submitsinformation that warrants the renewal ofits classification as a public charity or asa private operating foundation, the Inter-nal Revenue Service will issue a ruling ordetermination letter with the revised clas-sification as to foundation status. Grantorsand contributors may thereafter rely uponsuch ruling or determination letter as pro-vided in section 1.509(a)–7 of the IncomeTax Regulations. It is not the practice ofthe Service to announce such revised clas-sification of foundation status in the Inter-nal Revenue Bulletin.

December 6, 2010 817 2010–49 I.R.B.

Definition of TermsRevenue rulings and revenue procedures(hereinafter referred to as “rulings”) thathave an effect on previous rulings use thefollowing defined terms to describe the ef-fect:

Amplified describes a situation whereno change is being made in a prior pub-lished position, but the prior position is be-ing extended to apply to a variation of thefact situation set forth therein. Thus, ifan earlier ruling held that a principle ap-plied to A, and the new ruling holds that thesame principle also applies to B, the earlierruling is amplified. (Compare with modi-fied, below).

Clarified is used in those instanceswhere the language in a prior ruling is be-ing made clear because the language hascaused, or may cause, some confusion.It is not used where a position in a priorruling is being changed.

Distinguished describes a situationwhere a ruling mentions a previously pub-lished ruling and points out an essentialdifference between them.

Modified is used where the substanceof a previously published position is beingchanged. Thus, if a prior ruling held that aprinciple applied to A but not to B, and thenew ruling holds that it applies to both A

and B, the prior ruling is modified becauseit corrects a published position. (Comparewith amplified and clarified, above).

Obsoleted describes a previously pub-lished ruling that is not considered deter-minative with respect to future transac-tions. This term is most commonly used ina ruling that lists previously published rul-ings that are obsoleted because of changesin laws or regulations. A ruling may alsobe obsoleted because the substance hasbeen included in regulations subsequentlyadopted.

Revoked describes situations where theposition in the previously published rulingis not correct and the correct position isbeing stated in a new ruling.

Superseded describes a situation wherethe new ruling does nothing more than re-state the substance and situation of a previ-ously published ruling (or rulings). Thus,the term is used to republish under the1986 Code and regulations the same po-sition published under the 1939 Code andregulations. The term is also used whenit is desired to republish in a single rul-ing a series of situations, names, etc., thatwere previously published over a period oftime in separate rulings. If the new rul-ing does more than restate the substance

of a prior ruling, a combination of termsis used. For example, modified and su-perseded describes a situation where thesubstance of a previously published rulingis being changed in part and is continuedwithout change in part and it is desired torestate the valid portion of the previouslypublished ruling in a new ruling that is selfcontained. In this case, the previously pub-lished ruling is first modified and then, asmodified, is superseded.

Supplemented is used in situations inwhich a list, such as a list of the names ofcountries, is published in a ruling and thatlist is expanded by adding further names insubsequent rulings. After the original rul-ing has been supplemented several times, anew ruling may be published that includesthe list in the original ruling and the ad-ditions, and supersedes all prior rulings inthe series.

Suspended is used in rare situations toshow that the previous published rulingswill not be applied pending some futureaction such as the issuance of new oramended regulations, the outcome of casesin litigation, or the outcome of a Servicestudy.

AbbreviationsThe following abbreviations in current useand formerly used will appear in materialpublished 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.

2010–49 I.R.B. i December 6, 2010

Numerical Finding List1

Bulletins 2010–27 through 2010–49

Announcements:

2010-43, 2010-27 I.R.B. 42

2010-44, 2010-28 I.R.B. 54

2010-45, 2010-29 I.R.B. 87

2010-46, 2010-29 I.R.B. 87

2010-47, 2010-30 I.R.B. 173

2010-48, 2010-32 I.R.B. 234

2010-49, 2010-34 I.R.B. 272

2010-50, 2010-33 I.R.B. 260

2010-51, 2010-33 I.R.B. 261

2010-52, 2010-36 I.R.B. 315

2010-53, 2010-36 I.R.B. 323

2010-54, 2010-38 I.R.B. 386

2010-55, 2010-37 I.R.B. 346

2010-56, 2010-39 I.R.B. 398

2010-57, 2010-38 I.R.B. 386

2010-58, 2010-38 I.R.B. 387

2010-59, 2010-39 I.R.B. 399

2010-60, 2010-40 I.R.B. 417

2010-61, 2010-40 I.R.B. 417

2010-62, 2010-40 I.R.B. 417

2010-63, 2010-40 I.R.B. 417

2010-64, 2010-40 I.R.B. 418

2010-65, 2010-40 I.R.B. 418

2010-66, 2010-40 I.R.B. 418

2010-67, 2010-40 I.R.B. 418

2010-68, 2010-40 I.R.B. 418

2010-69, 2010-40 I.R.B. 418

2010-70, 2010-40 I.R.B. 418

2010-71, 2010-40 I.R.B. 418

2010-72, 2010-40 I.R.B. 419

2010-73, 2010-40 I.R.B. 419

2010-74, 2010-40 I.R.B. 419

2010-75, 2010-41 I.R.B. 428

2010-76, 2010-41 I.R.B. 432

2010-77, 2010-41 I.R.B. 433

2010-78, 2010-41 I.R.B. 433

2010-79, 2010-42 I.R.B. 475

2010-80, 2010-45 I.R.B. 638

2010-81, 2010-45 I.R.B. 638

2010-82, 2010-42 I.R.B. 476

2010-84, 2010-44 I.R.B. 603

2010-85, 2010-44 I.R.B. 604

2010-86, 2010-44 I.R.B. 604

2010-87, 2010-43 I.R.B. 557

2010-88, 2010-47 I.R.B. 753

2010-89, 2010-46 I.R.B. 669

2010-90, 2010-50 I.R.B. 816

Notices:

2010-48, 2010-27 I.R.B. 9

2010-49, 2010-27 I.R.B. 10

Notices— Continued:

2010-50, 2010-27 I.R.B. 12

2010-51, 2010-29 I.R.B. 83

2010-52, 2010-30 I.R.B. 88

2010-53, 2010-31 I.R.B. 182

2010-54, 2010-40 I.R.B. 403

2010-55, 2010-33 I.R.B. 253

2010-56, 2010-33 I.R.B. 254

2010-57, 2010-34 I.R.B. 267

2010-58, 2010-37 I.R.B. 326

2010-59, 2010-39 I.R.B. 396

2010-60, 2010-37 I.R.B. 329

2010-61, 2010-40 I.R.B. 408

2010-62, 2010-40 I.R.B. 411

2010-63, 2010-41 I.R.B. 420

2010-64, 2010-41 I.R.B. 421

2010-65, 2010-41 I.R.B. 424

2010-66, 2010-42 I.R.B. 437

2010-67, 2010-43 I.R.B. 529

2010-68, 2010-44 I.R.B. 576

2010-69, 2010-44 I.R.B. 576

2010-70, 2010-44 I.R.B. 576

2010-72, 2010-46 I.R.B. 661

2010-73, 2010-46 I.R.B. 662

2010-74, 2010-46 I.R.B. 663

2010-75, 2010-48 I.R.B. 781

2010-76, 2010-47 I.R.B. 712

2010-78, 2010-49 I.R.B. 808

2010-79, 2010-49 I.R.B. 809

Proposed Regulations:

REG-138637-07, 2010-44 I.R.B. 581

REG-132554-08, 2010-48 I.R.B. 783

REG-139343-08, 2010-33 I.R.B. 256

REG-119921-09, 2010-45 I.R.B. 626

REG-137486-09, 2010-46 I.R.B. 668

REG-142800-09, 2010-44 I.R.B. 580

REG-144762-09, 2010-45 I.R.B. 637

REG-151605-09, 2010-31 I.R.B. 184

REG-153340-09, 2010-42 I.R.B. 469

REG-112841-10, 2010-27 I.R.B. 41

REG-118412-10, 2010-29 I.R.B. 85

REG-119046-10, 2010-40 I.R.B. 415

REG-120391-10, 2010-35 I.R.B. 310

REG-120399-10, 2010-32 I.R.B. 239

REG-125592-10, 2010-43 I.R.B. 556

Revenue Procedures:

2010-25, 2010-27 I.R.B. 16

2010-26, 2010-30 I.R.B. 91

2010-27, 2010-31 I.R.B. 183

2010-28, 2010-34 I.R.B. 270

2010-29, 2010-35 I.R.B. 309

2010-30, 2010-36 I.R.B. 316

2010-31, 2010-40 I.R.B. 413

2010-32, 2010-36 I.R.B. 320

Revenue Procedures— Continued:

2010-33, 2010-38 I.R.B. 347

2010-34, 2010-41 I.R.B. 426

2010-35, 2010-42 I.R.B. 438

2010-36, 2010-42 I.R.B. 439

2010-37, 2010-42 I.R.B. 440

2010-38, 2010-43 I.R.B. 530

2010-39, 2010-42 I.R.B. 459

2010-40, 2010-46 I.R.B. 663

2010-41, 2010-48 I.R.B. 781

2010-42, 2010-47 I.R.B. 715

2010-43, 2010-47 I.R.B. 738

2010-44, 2010-49 I.R.B. 811

2010-45, 2010-49 I.R.B. 813

2010-46, 2010-49 I.R.B. 814

Revenue Rulings:

2010-18, 2010-27 I.R.B. 1

2010-19, 2010-31 I.R.B. 174

2010-20, 2010-36 I.R.B. 312

2010-21, 2010-39 I.R.B. 388

2010-22, 2010-39 I.R.B. 388

2010-23, 2010-39 I.R.B. 388

2010-24, 2010-40 I.R.B. 400

2010-25, 2010-44 I.R.B. 571

2010-26, 2010-44 I.R.B. 573

2010-27, 2010-45 I.R.B. 620

2010-28, 2010-49 I.R.B. 804

Tax Conventions:

2010-48, 2010-32 I.R.B. 234

2010-52, 2010-36 I.R.B. 315

Treasury Decisions:

9486, 2010-27 I.R.B. 3

9487, 2010-28 I.R.B. 48

9488, 2010-28 I.R.B. 51

9489, 2010-29 I.R.B. 55

9490, 2010-31 I.R.B. 176

9491, 2010-32 I.R.B. 186

9492, 2010-33 I.R.B. 242

9493, 2010-35 I.R.B. 273

9494, 2010-43 I.R.B. 500

9495, 2010-43 I.R.B. 477

9496, 2010-43 I.R.B. 484

9497, 2010-44 I.R.B. 558

9498, 2010-45 I.R.B. 605

9499, 2010-45 I.R.B. 622

9500, 2010-46 I.R.B. 649

9501, 2010-46 I.R.B. 651

9502, 2010-46 I.R.B. 641

9503, 2010-47 I.R.B. 706

9504, 2010-47 I.R.B. 670

9505, 2010-48 I.R.B. 755

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2010–1 through 2010–26 is in Internal Revenue Bulletin2010–26, dated June 28, 2010.

December 6, 2010 ii 2010–49 I.R.B.

Finding List of Current Actions onPreviously Published Items1

Bulletins 2010–27 through 2010–49

Notices:

96-53

Modified by

Notice 2010-59, 2010-39 I.R.B. 396

2003-19

Revoked by

Notice 2010-53, 2010-31 I.R.B. 182

2004-2

Modified by

Notice 2010-59, 2010-39 I.R.B. 396

2004-50

Modified by

Notice 2010-59, 2010-39 I.R.B. 396

2005-90

Supplemented by

Notice 2010-65, 2010-41 I.R.B. 424

2006-69

Amplified by

Notice 2010-59, 2010-39 I.R.B. 396

2008-51

Modified by

Notice 2010-59, 2010-39 I.R.B. 396

2008-52

Modified by

Notice 2010-59, 2010-39 I.R.B. 396

2009-47

Obsoleted by

Rev. Proc. 2010-28, 2010-34 I.R.B. 270

2009-80

Corrected by

Ann. 2010-59, 2010-39 I.R.B. 399

2009-90

Superseded by

Notice 2010-54, 2010-40 I.R.B. 403

Proposed Regulations:

REG-115037-00

Withdrawn by

Ann. 2010-60, 2010-40 I.R.B. 417

REG-146893-02

Withdrawn by

Ann. 2010-60, 2010-40 I.R.B. 417

Revenue Procedures:

81-18

Obsoleted by

Rev. Proc. 2010-27, 2010-31 I.R.B. 183

Revenue Procedures— Continued:

2007-44

Modified by

Notice 2010-48, 2010-27 I.R.B. 9

2008-33

Superseded by

Rev. Proc. 2010-42, 2010-47 I.R.B. 715

2008-49

Superseded by

Rev. Proc. 2010-38, 2010-43 I.R.B. 530

2008-52

Modified by

Rev. Proc. 2010-44, 2010-49 I.R.B. 811T.D. 9504, 2010-47 I.R.B. 670

2009-18

Obsoleted in part by

Rev. Proc. 2010-25, 2010-27 I.R.B. 16

2009-30

Superseded by

Rev. Proc. 2010-26, 2010-30 I.R.B. 91

2009-35

Superseded by

Rev. Proc. 2010-33, 2010-38 I.R.B. 347

2009-46

Superseded by

Rev. Proc. 2010-37, 2010-42 I.R.B. 440

2009-47

Superseded by

Rev. Proc. 2010-39, 2010-42 I.R.B. 459

2009-48

Superseded by

Rev. Proc. 2010-43, 2010-47 I.R.B. 738

2009-50

Modified by

Rev. Proc. 2010-35, 2010-42 I.R.B. 438

2010-3

Modified by

Notice 2010-62, 2010-40 I.R.B. 411

Revenue Rulings:

67-436

Obsoleted by

T.D. 9504, 2010-47 I.R.B. 670

2003-102

Obsoleted by

Rev. Rul. 2010-23, 2010-39 I.R.B. 388

Treasury Decisions:

9487

Corrected by

Ann. 2010-50, 2010-33 I.R.B. 260

1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–1 through 2010–26 is in Internal Revenue Bulletin 2010–26, dated June 28, 2010.

2010–49 I.R.B. iii December 6, 2010

December 6, 2010 2010–49 I.R.B.

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