Internal Revenue Bulletin: 2012-1 |
January 3, 2012 |
Specific revenue procedures and notices supplement the general instructions for requests explained in section 7 of this revenue procedure and apply to requests for letter rulings or determination letters regarding the Code sections and matters listed in this section.
.01For requests relating to the following Code sections and subject matters, refer to the following checklists, guideline revenue procedures, and notices.
| CODE OR REGULATION SECTION | REVENUE PROCEDURE AND NOTICE | |
| 103, 141 - 150, 1394, 1400L(d), 1400N(a), 1400U-1, 1400U-3, 7478, and 7871 Issuance of state or local obligations | Rev. Proc. 96-16, 1996-1 C.B. 630 (for a reviewable ruling under § 7478 and a nonreviewable ruling); Rev. Proc. 88-31, 1988-1 C.B. 832 (for approval of areas of chronic economic distress); and Rev. Proc. 82-26, 1982-1 C.B. 476 (for “on behalf of” and similar issuers). For approval of areas of chronic economic distress, Rev. Proc. 88-31 explains how this request for approval must be submitted to the Assistant Secretary for Housing/Federal Housing Commissioner of the Department of Housing and Urban Development. | |
| 1.166-2(d)(3) Uniform express determination letter for making election | Rev. Proc. 92-84, 1992-2 C.B. 489. | |
| Subchapter C-Corporate Distributions, Adjustments, Transfers, and Reorganizations | Rev. Proc. 77-37, 1977-2 C.B. 568, as modified by Rev. Proc. 89-30, 1989-1 C.B. 895, and as amplified by Rev. Proc. 77-41, 1977-2 C.B. 574, Rev. Proc. 83-81, 1983-2 C.B. 598 (see also Rev. Proc. 2012-3, this Bulletin), Rev. Proc. 84-42, 1984-1 C.B. 521 (superseded as to no-rule areas by Rev. Proc. 2012-3, this Bulletin), Rev. Proc. 86-42, 1986-2 C.B. 722, and Rev. Proc. 89-50, 1989-2 C.B. 631. But see section 3.01 of Rev. Proc. 2012-3, this Bulletin, (corporate distributions, transfers, and reorganizations under §§ 332, 351, 368(a)(1)(A), 368(a)(1)(B), 368(a)(1)(C), 368(a)(1)(E), 368(a)(1)(F), and 1036), which describes certain corporate transactions where, generally, the Service will not issue letter rulings or determination letters. | |
| 301 Nonapplicability on sales of stock of employer to defined contribution plan | Rev. Proc. 87-22, 1987-1 C.B. 718. | |
| 302, 311 Checklist questionnaire | Rev. Proc. 86-18, 1986-1 C.B. 551; and Rev. Proc. 77-41, 1977-2 C.B. 574. | |
| 302(b)(4) Checklist questionnaire | Rev. Proc. 81-42, 1981-2 C.B. 611. | |
| 311 Checklist questionnaire | Rev. Proc. 86-16, 1986-1 C.B. 546. | |
| 332 Checklist questionnaire | Rev. Proc. 90-52, 1990-2 C.B. 626. Butsee section 3.01 of Rev. Proc. 2012-3, this Bulletin, which describes certain corporate transactions where the Service will not issue letter rulings or determination letters. | |
| 338 Extension of time to make elections | Rev. Proc. 2003-33, 2003-1 C.B. 803, provides guidance as to how an automatic extension of time under § 301.9100-3 of the Treasury Regulations may be obtained to file elections under § 338. This revenue procedure also informs taxpayers who do not qualify for the automatic extension, of the information necessary to obtain a letter ruling. | |
| 351 Checklist questionnaire | Rev. Proc. 83-59, 1983-2 C.B. 575. Butsee section 3.01 of Rev. Proc. 2012-3, this Bulletin, which describes certain transfers to controlled corporations where the Service will not issue letter rulings or determination letters. | |
| 355 Checklist questionnaire | Rev. Proc. 96-30, 1996-1 C.B. 696, as amplified and modified by Rev. Proc. 2003-48, 2003-2 C.B. 86. | |
| 368(a)(1)(E) Checklist questionnaire | Rev. Proc. 81-60, 1981-2 C.B. 680. Butsee section 3.01 of Rev. Proc. 2012-3, this Bulletin, which describes circumstances under which the Service will not issue letter rulings or determination letters as to whether a transaction constitutes a corporate recapitalization within the meaning of § 368(a)(1)(E) (or a transaction that also qualifies under § 1036). | |
| 461(h) Alternative method for the inclusion of common improvement costs in basis | Rev. Proc. 92-29, 1992-1 C.B. 748. | |
| 482 Advance pricing agreements | Rev. Proc. 2006-9, 2006-1 C.B. 278, as amplified by Rev. Proc. 2006-54, 2006-2 C.B. 1035, and modified by Rev. Proc. 2008-31, 2008-1 C.B. 1133. | |
| 521 Appeal procedure with regard to adverse determination letters and revocation or modification of exemption letter rulings and determination letters | Rev. Proc. 90-27, 1990-1 C.B. 514. | |
| 817(h) Closing agreement for inadvertent failures of variable contracts | Rev. Proc. 2008-41, 2008-2 C.B. 155. | |
| 860 Self Determination of Deficiency Dividend | Rev. Proc. 2009-28, 2009-20 I.R.B. 1011. | |
| 877, 2107, and 2501(a)(3) Individuals who lose U.S. citizenship or cease to be taxed as long-term U.S. residents with a principal purpose to avoid U.S. taxes | Notice 97-19, 1997-1 C.B. 394, as modified by Notice 98-34, 1998-2 C.B. 29, and as obsoleted in part by Notice 2005-36, 2005-1 C.B. 1007. | |
| 1362(b)(5) and 1362(f) Relief for late S corporation and related elections under certain circumstances | Rev. Proc. 2004-49, 2004-2 C.B. 210; Rev. Proc. 2003-43, 2003-1 C.B. 998, as supplemented by Rev. Proc. 2007-62, 2007-2 C.B. 786; Rev. Proc. 97-48, 1997-2 C.B. 521. | |
| 1362(b)(5) and 301.7701-3 Automatic extensions of time for late S corporation election and late corporate entity classification | Rev. Proc. 2004-48, 2004-2 C.B. 172, as supplemented by Rev. Proc. 2007-62, 2007-2 C.B. 786. | |
| 1.1502-13(e)(3) Consent to treat intercompany transactions on a separate entity basis and revocation of this consent | Rev. Proc. 2009-31, 2009-2 C.B. 107. | |
| 1.1502-76(a)(1) Consent to file a consolidated return where member(s) of the affiliated group use a 52-53 week taxable year | Rev. Proc. 89-56, 1989-2 C.B. 643, as modified by Rev. Proc. 2006-21, 2006-1 C.B. 1050. | |
| 1504(a)(3)(A) and (B) Waiver of application of § 1504(a)(3)(A) for certain corporations | Rev. Proc. 2002-32, 2002-1 C.B. 959, as modified by Rev. Proc. 2006-21, 2006-1 C.B. 1050. | |
| 1552 Consent to elect or change method of allocating affiliated group’s consolidated federal income tax liability | Rev. Proc. 90-39, 1990-2 C.B. 365, as clarified by Rev. Proc. 90-39A, 1990-2 C.B. 367, and as modified by Rev. Proc. 2006-21, 2006-1 C.B. 1050. | |
| 2642 Allocations of generation-skipping transfer tax exemption | Rev. Proc. 2004-46, 2004-2 C.B. 142, provides an alternative method for requesting relief to make a late allocation of the generation-skipping transfer tax exemption. This revenue procedure also informs taxpayers who are denied relief or who are outside the scope of the revenue procedure of the information necessary for obtaining a letter ruling. | |
| 2652(a)(3) Reverse qualified terminable interest property elections | Rev. Proc. 2004-47, 2004-2 C.B. 169, provides an alternative method for certain taxpayers to obtain an extension of time to make a late reverse qualified terminable interest property election under § 2652(a)(3). This revenue procedure also informs taxpayers who are denied relief or who are outside the scope of the revenue procedure of the information necessary to obtain a letter ruling. | |
| 4980B Failure to satisfy continuation coverage requirements of group health plans | Rev. Proc. 87-28, 1987-1 C.B. 770 (treating references to former § 162(k) as if they were references to § 4980B). | |
| 7701 Relief for a late initial classification election for a newly formed entity | Rev. Proc. 2009-41, 2009-39 I.R.B. 439. | |
| 7701(a)(40) and 7871(d) Indian tribal governments and subdivision of Indian tribal governments | Rev. Proc. 84-37, 1984-1 C.B. 513, as modified by Rev. Proc. 86-17, 1986-1 C.B. 550, and Rev. Proc. 2012-1, this revenue procedure, (provides guidelines for obtaining letter rulings recognizing Indian tribal government or tribal government subdivision status; also provides for inclusion in list of federally recognized Indian tribes published annually by the Department of the Interior, Bureau of Indian Affairs, or in list of recognized subdivisions of Indian tribal governments in revised versions of Rev. Proc. 84-36, 1984-1 C.B. 510, as modified and made permanent by Rev. Proc. 86-17). | |
| 301.7701-2(a) Classification of undivided fractional interests in rental real estate | Rev. Proc. 2002-22, 2002-1 C.B. 733 (specifies the conditions under which the Service will consider a letter ruling request that an undivided fractional interest in rental real property (other than a mineral property as defined in § 614) is not an interest in a business entity). | |
| 301.7701-3 Automatic extensions of time for late S corporation election and late corporate entity classification | Rev. Proc. 2004-48, 2004-2 C.B. 172. | |
| 301.9100-3 Extension of time to make entity classification election | Rev. Proc. 2009-41, 2009-39 I.R.B. 439. | |
| 7702 Closing agreement for failure to account for charges for qualified additional benefits | Rev. Proc. 2010-26, 2010-30 I.R.B. 91. | |
| 7702 Closing agreement for failed life insurance contracts | Rev. Proc. 2008-40, 2008-2 C.B. 151. | |
| 7702A Closing agreement for inadvertent non-egregious failure to comply with modified endowment contract rules | Rev. Proc. 2008-39, 2008-2 C.B. 143. | |
| 7704(g) Revocation of election | Notice 98-3, 1998-1 C.B. 333. | |
| SUBJECT MATTERS | REVENUE PROCEDURE | |
| Accounting periods; changes in period | Rev. Proc. 2002-39, 2002-1 C.B. 1046, as clarified and modified by Notice 2002-72, 2002-2 C.B. 843, as modified by Rev. Proc. 2003-34, 2003-1 C.B. 856, and modified by Rev. Proc. 2003-79, 2003-2 C.B. 1036; and Rev. Proc. 2012-1, this revenue procedure, for which sections 1, 2.01, 2.02, 2.05, 3.03, 5.02, 6.03, 6.05, 6.07, 6.11, 7.01(1), 7.01(2), 7.01(3), 7.01(4), 7.01(5), 7.01(6), 7.01(8), 7.01(9), 7.01(10), 7.01(13), 7.01(14), 7.01(15), 7.02(2), 7.02(4), 7.02(5), 7.02(6), 7.03, 7.04, 7.05, 7.07, 8.01, 8.03, 8.04, 8.05, 8.06, 10, 11, 15, 17, 18, Appendix A, and Appendix E are applicable. | |
| Classification of liquidating trusts | Rev. Proc. 82-58, 1982-2 C.B. 847, as modified and amplified by Rev. Proc. 94-45, 1994-2 C.B. 684, and as amplified by Rev. Proc. 91-15, 1991-1 C.B. 484 (checklist questionnaire), as modified and amplified by Rev. Proc. 94-45. | |
| Earnings and profits determinations | Rev. Proc. 75-17, 1975-1 C.B. 677; Rev. Proc. 2012-1, this revenue procedure, sections 2.05, 3.03, 7, 8, and 10.05; and Rev. Proc. 2012-3, this Bulletin, section 3.01. | |
| Estate, gift, and generation-skipping transfer tax issues | Rev. Proc. 91-14, 1991-1 C.B. 482 (checklist questionnaire). | |
| Intercompany transactions; election not to defer gain or loss | Rev. Proc. 2009-31, 2009-2 C.B. 107. | |
| Leveraged leasing | Rev. Proc. 2001-28, 2001-1 C.B. 1156, and Rev. Proc. 2001-29, 2001-1 C.B. 1160. | |
| Rate orders; regulatory agency; normalization | A letter ruling request that involves a question of whether a rate order that is proposed or issued by a regulatory agency will meet the normalization requirements of § 168(f)(2) (pre-Tax Reform Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will not be considered unless the taxpayer states in the letter ruling request whether— | |
| (1) the regulatory authority responsible for establishing or approving the taxpayer’s rates has reviewed the request and believes that the request is adequate and complete; and | ||
| (2) the taxpayer will permit the regulatory authority to participate in any Associate office conference concerning the request. | ||
| If the taxpayer or the regulatory authority informs a consumer advocate of the request for a letter ruling and the advocate wishes to communicate with the Service regarding the request, any such communication should be sent to: Internal Revenue Service, Associate Chief Counsel (Procedure and Administration), Attn: CC:PA:LPD:DRU, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044 (or, if a private delivery service is used: Internal Revenue Service, Associate Chief Counsel (Procedure and Administration), Attn: CC:PA:LPD:DRU, Room 5336, 1111 Constitution Ave., NW, Washington, DC 20224). These communications will be treated as third party contacts for purposes of § 6110. | ||
| Unfunded deferred compensation | Rev. Proc. 71-19, 1971-1 C.B. 698, as amplified by Rev. Proc. 92-65, 1992-2 C.B. 428. See Rev. Proc. 92-64, 1992-2 C.B. 422, as modified by Notice 2000-56, 2000-2 C.B. 393, for the model trust for use in Rabbi Trust Arrangements. |
.02 For requests relating to the following Code sections and subject matters, refer to the following safe harbor revenue procedures.
| CODE OR REGULATION SECTION | REVENUE PROCEDURE | |
| 23 and 36C Adoption credit for foreign adoptions | Rev. Proc. 2010-31, 2010-40 I.R.B. 413. | |
| 103 and 141-150 Issuance of state or local obligations | Rev. Proc. 93-17, 1993-1 C.B. 507 (change of use of proceeds); Rev. Proc. 97-13, 1997-1 C.B. 632, as modified by Rev. Proc. 2001-39, 2001-2 C.B. 38 (management contracts); and Rev. Proc. 2007-47, 2007-2 C.B. 108 (research agreements). | |
| 61 Utility Cost Recovery Securitization Transactions | Rev. Proc. 2005-62, 2005-2 C.B. 507. | |
| 137 Exclusion for Employer Reimbursements | Rev. Proc. 2010-31, 2010-40 I.R.B. 413. | |
| 162 Restaurant Small Wares Costs | Rev. Proc. 2002-12, 2002-1 C.B. 374. | |
| 165 Losses from corrosive drywall | Rev. Proc. 2010-36, 2010-42 I.R.B. 439. | |
| 165 Theft losses from fraudulent investment arrangements | Rev. Proc. 2009-20, 2009-14 I.R.B. 749. | |
| 167 Recovery period for depreciation of certain tangible assets used by wireless carriers | Rev. Proc. 2011-22, 2011-18 I.R.B. 737. | |
| 168 Depreciation of original and replacement tires for certain vehicles | Rev. Proc. 2002-27, 2002-1 C.B. 802. | |
| 168 Depreciation of fiber optic node and trunk line of a cable television distribution system | Rev. Proc. 2003-63, 2003-2 C.B. 304. | |
| 263 Treatment of rotable spare parts as depreciable assets | Rev. Proc. 2007-48, 2007-2 C.B. 110. | |
| 263 Determination whether expenditures to maintain, replace or improve wireline network assets must be capitalized | Rev. Proc. 2011-27, 2011-18 I.R.B. 740. | |
| 263 Determination whether expenditures to maintain, replace or improve wireless network assets must be capitalized | Rev. Proc. 2011-28, 2011-18 I.R.B. 743. | |
| 263 Allocating success-based fees paid in business acquisitions or reorganizations | Rev. Proc. 2011-29, 2011-18 I.R.B. 746. | |
| 263 Electric trade and distribution property assets | Rev. Proc. 2011-43, 2011-37 I.R.B. 326. | |
| 263A Safe harbor methods for certain motor vehicle dealerships | Rev. Proc. 2010-44, 2010-49 I.R.B. 811. | |
| 280B Certain structural modifications to a building not treated as a demolition | Rev. Proc. 95-27, 1995-1 C.B. 704. | |
| 446 Film producer’s treatment of certain creative property costs | Rev. Proc. 2004-36, 2004-1 C.B. 1063. | |
| 446 Bank’s treatment of uncollected interest | Rev. Proc. 2007-33, 2007-1 C.B. 1289. | |
| 448 Nonaccrual-experience method - book safe harbor method | Rev. Proc. 2011-46, 2011-42 I.R.B. 518. | |
| 451 Treatment of gift cards issued to customers in exchange for returned merchandise | Rev. Proc. 2011-17, 2011-5 I.R.B. 441. | |
| 461 Accrual of payroll tax liabilities for compensation | Rev. Proc. 2008-25, 2008-1 C.B. 686. | |
| 471 Estimating inventory shrinkage | Rev. Proc. 98-29, 1998-1 C.B. 857. | |
| 471 Valuation of automobile dealer vehicle parts inventory | Rev. Proc. 2002-17, 2002-1 C.B. 676. | |
| 471 Valuation of remanufactured cores | Rev. Proc. 2003-20, 2003-1 C.B. 445. | |
| 471 Valuation of heavy equipment dealer parts inventory | Rev. Proc. 2006-14, 2006-1 C.B. 350. | |
| 471 Rolling-average method of accounting for inventories | Rev. Proc. 2008-43, 2008-30 I.R.B. 186. | |
| 475 Eligible positions | Rev. Proc. 2007-41, 2007-1 C.B. 1492. | |
| 584(a) Qualification of a proposed common trust fund plan | Rev. Proc. 92-51, 1992-1 C.B. 988. | |
| 642(c)(5) Qualification of trusts as pooled income funds | Rev. Proc. 88-53, 1988-2 C.B. 712. | |
| 664 Charitable remainder trusts | Rev. Proc. 2005-24, 2005-1 C.B. 909, as modified by Notice 2006-15, 2006-1 C.B. 501. | |
| 664(d)(1) Qualification of trusts as charitable remainder annuity trusts | Rev. Proc. 2003-53, 2003-2 C.B. 230; Rev. Proc. 2003-54, 2003-2 C.B. 236; Rev. Proc. 2003-55, 2003-2 C.B. 242; Rev. Proc. 2003-56, 2003-2 C.B. 249; Rev. Proc. 2003-57, 2003-2 C.B. 257; Rev. Proc. 2003-58, 2003-2 C.B. 262; Rev. Proc. 2003-59, 2003-2 C.B. 268; Rev. Proc. 2003-60, 2003-2 C.B. 274. | |
| 664(d)(2) and (3) Qualification of trusts as charitable remainder unitrusts | Rev. Proc. 2005-52, 2005-2 C.B. 326; Rev. Proc. 2005-53, 2005-2 C.B. 339; Rev. Proc. 2005-54, 2005-2 C.B. 353; Rev. Proc. 2005-55, 2005-2 C.B. 367; Rev. Proc. 2005-56, 2005-2 C.B. 383; Rev. Proc. 2005-57, 2005-2 C.B. 392; Rev. Proc. 2005-58, 2005-2 C.B. 402; Rev. Proc. 2005-59, 2005-2 C.B. 412. | |
| 832 Insurance company premium acquisition expenses | Rev. Proc. 2002-46, 2002-2 C.B. 105. | |
| 856(c) Certain loans treated as real estate assets | Rev. Proc. 2003-65, 2003-2 C.B. 336. | |
| 860H Transfers of ownership interests in Financial Asset Securitization Investment Trusts | Rev. Proc. 2001-12, 2001-1 C.B. 335. | |
| 1031(a) Qualification as a qualified exchange accommodation arrangement | Rev. Proc. 2000-37, 2000-2 C.B. 308, as modified by Rev. Proc. 2004-51, 2004-2 C.B. 294. | |
| 1031 Safe harbor with respect to exchanges of residential real property | Rev. Proc. 2008-16, 2008-1 C.B. 547. | |
| 1031 Safe harbor for reporting gain or loss on failed exchanges | Rev. Proc. 2010-14, 2010-12 I.R.B. 456. | |
| 1286 Determination of reasonable compensation under mortgage servicing contracts | Rev. Proc. 91-50, 1991-2 C.B. 778. | |
| 1362(f) Automatic inadvertent termination relief to certain corporations | Rev. Proc. 2003-43, 2003-1 C.B. 998, as supplemented by Rev. Proc. 2007-62, 2007-2 C.B. 786. | |
| 2056A Qualified Domestic Trust | Rev. Proc. 96-54, 1996-2 C.B. 386. | |
| 2702(a)(3)(A) and 25.2702-5(c) Qualified Personal Residence Trust | Rev. Proc. 2003-42, 2003-1 C.B. 993. | |
| 4051(a)(2) Imposition of tax on heavy trucks and trailers sold at retail | Rev. Proc. 2005-19, 2005-1 C.B. 832. | |
| 1.7704-2(d) New business activity of existing partnership is closely related to pre-existing business | Rev. Proc. 92-101, 1992-2 C.B. 579. | |
| SUBJECT MATTERS | REVENUE PROCEDURE | |
| Certain rent-to-own contracts treated as leases | Rev. Proc. 95-38, 1995-2 C.B. 397. |
.03 For requests for an automatic change in accounting period, refer to the following automatic change revenue procedures published and/or in effect as of December 31, 2011:
Rev. Proc. 2006-45, 2006-2 C.B. 851, as clarified and modified by Rev. Proc. 2007-64, 2007-2 C.B. 818 (certain corporations); Rev. Proc. 2006-46, 2006-2 C.B. 859 (certain partnerships, subchapter S corporations, personal service corporations, and trusts); and Rev. Proc. 2003-62, 2003-2 C.B. 299 (individuals seeking a calendar year);
The Commissioner’s consent to an otherwise qualifying automatic change in accounting period is granted only if the taxpayer timely complies with the applicable automatic change revenue procedure.
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