Breadcrumb Region

Internal Revenue Bulletin: 2012-20

May 14, 2012


Highlights of This Issue

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

T.D. 9584 T.D. 9584

Final regulations under section 6049 of the Code provide guidance regarding the reporting requirements for interest paid to the U.S. accounts of certain nonresident alien individuals. The reporting required by these final regulations will support the U.S. government’s efforts to combat offshore tax evasion.

Notice 2012-31 Notice 2012-31

This notice describes and requests comments on several approaches for determining whether health coverage under an eligible employer-sponsored plan provides minimum value for purposes of sections 36B and 4980H of the Code.

Notice 2012-32 Notice 2012-32

This notice requests comments on information reporting under section 6055 of the Code by health insurance issuers, government agencies, employers that sponsor self-insured plans, and other persons that provide minimum essential coverage to an individual.

Notice 2012-33 Notice 2012-33

This notice invites comments on reporting under section 6056 of the Code by applicable large employers (as defined in section 4980H(c)(2)) that are subject to section 4980H. Section 6056 requires reporting of certain information on employer-provided health care coverage provided on or after January 1, 2014. The notice also advises the public that the Treasury and IRS intend to propose regulations implementing section 6056 and invites comments on issues arising under section 6056, including on possible approaches for coordinating and minimizing duplication between the information required to be reported and furnished by employers under section 6056 and information required to be reported and/or furnished by employers or other persons under other applicable Code provisions.

Rev. Proc. 2012-24 Rev. Proc. 2012-24

This procedure provides guidance for implementing final regulations under section 6049 of the Code. The procedure contains two lists of countries with which the IRS has an income tax or other convention or bilateral agreement relating to the exchange of information for tax administration purposes.

Rev. Proc. 2012-26 Rev. Proc. 2012-26

This procedure provides the 2013 inflation adjusted amounts for Health Savings Accounts (HSAs) under section 223 of the Code.

EMPLOYEE PLANS

Notice 2012-31 Notice 2012-31

This notice describes and requests comments on several approaches for determining whether health coverage under an eligible employer-sponsored plan provides minimum value for purposes of sections 36B and 4980H of the Code.

EXEMPT ORGANIZATIONS

Announcement 2012-19 Announcement 2012-19

This announcement makes it optional for Form 990 filers for Tax Year 2011 to report their interests in the income, expenses, and assets of partnerships using information from Schedule K-1 of Form 1065, as opposed to using their books and records.

ADMINISTRATIVE

T.D. 9584 T.D. 9584

Final regulations under section 6049 of the Code provide guidance regarding the reporting requirements for interest paid to the U.S. accounts of certain nonresident alien individuals. The reporting required by these final regulations will support the U.S. government’s efforts to combat offshore tax evasion.

Notice 2012-32 Notice 2012-32

This notice requests comments on information reporting under section 6055 of the Code by health insurance issuers, government agencies, employers that sponsor self-insured plans, and other persons that provide minimum essential coverage to an individual.

Notice 2012-33 Notice 2012-33

This notice invites comments on reporting under section 6056 of the Code by applicable large employers (as defined in section 4980H(c)(2)) that are subject to section 4980H. Section 6056 requires reporting of certain information on employer-provided health care coverage provided on or after January 1, 2014. The notice also advises the public that the Treasury and IRS intend to propose regulations implementing section 6056 and invites comments on issues arising under section 6056, including on possible approaches for coordinating and minimizing duplication between the information required to be reported and furnished by employers under section 6056 and information required to be reported and/or furnished by employers or other persons under other applicable Code provisions.

Rev. Proc. 2012-24 Rev. Proc. 2012-24

This procedure provides guidance for implementing final regulations under section 6049 of the Code. The procedure contains two lists of countries with which the IRS has an income tax or other convention or bilateral agreement relating to the exchange of information for tax administration purposes.

Rev. Proc. 2012-25 Rev. Proc. 2012-25

This procedure provides issuers of qualified mortgage bonds (QMBs) and qualified mortgage credit certificates (MCCs) with average area purchase price safe harbors for statistical areas in the United States and with a nationwide average purchase price for residences in the United States for purposes of the QMB rules under section 143 of the Code and the MCC rules under section 25. Rev. Proc. 2011-23 obsoleted in part.

Preface

The IRS Mission

Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement).

Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period.

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

T.D. 9584

Guidance on Reporting Interest Paid to Nonresident Aliens

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 31

AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Final Regulations.

SUMMARY:

This document contains final regulations regarding the reporting requirements for interest that relates to deposits maintained at U.S. offices of certain financial institutions and is paid to certain nonresident alien individuals. These regulations will affect commercial banks, savings institutions, credit unions, securities brokerages, and insurance companies that pay interest on deposits.

DATES:

Effective Date: These regulations are effective April 19, 2012.

Applicability Date: These regulations apply to payments of interest made on or after January 1, 2013.

FOR FURTHER INFORMATION CONTACT:

Kathryn Holman, (202) 622-3840 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information contained in these final regulations has been reviewed and approved by the Office of Management and Budget for review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under control number 1545-1725. The collection of information in these proposed regulations is in §1.6049-4(b)(5)(i) and §1.6049-6(e)(4)(i) and (ii). The collection of information is mandatory and the respondents are commercial banks, savings institutions, credit unions, securities brokerages, and insurance companies that maintain deposit accounts for nonresident alien individuals.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and Budget.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Information collected under these regulations will be return information as defined in 26 U.S.C. 6103. Tax returns and return information are confidential as required by 26 U.S.C. 6103.

Background

On January 7, 2011, the Treasury Department and the IRS published a notice of proposed rulemaking (REG-146097-09, 2011-8 I.R.B. 516) (the 2011 proposed regulations) in the Federal Register (76 FR 1105, corrected by 76 FR 2852, 76 FR 20595, and 76 FR 22064) under section 6049 of the Internal Revenue Code (Code). The 2011 proposed regulations withdrew proposed regulations that had been issued on August 2, 2002 (67 FR 50386) (the 2002 proposed regulations). The 2002 proposed regulations would have required reporting of interest payments to nonresident alien individuals that are residents of certain specified countries. The 2011 proposed regulations provide that payments of interest aggregating $10 or more on a deposit maintained at a U.S. office of a financial institution and paid to any nonresident alien individual are subject to information reporting.

Written comments were received by the Treasury Department and the IRS in response to the 2011 proposed regulations. A public hearing on the 2011 proposed regulations was held on May 18, 2011, at which further comments were received. All comments were considered and are available for public inspection at http://www.regulations.gov or upon request. After consideration of the written comments and the comments provided at the public hearing, the 2011 proposed regulations are adopted as revised by this Treasury decision.

Explanation and Summary of Comments

Objectives of This Regulatory Action

The reporting required by these regulations is essential to the U.S. Government’s efforts to combat offshore tax evasion for several reasons. First, it ensures that the IRS can, in appropriate circumstances, exchange information relating to tax enforcement with other jurisdictions. In order to ensure that U.S. taxpayers cannot evade U.S. tax by hiding income and assets offshore, the United States must be able to obtain information from other countries regarding income earned and assets held in those countries by U.S. taxpayers. Under present law, the measures available to assist the United States in obtaining this information include both treaty relationships and statutory provisions. The effectiveness of these measures depends significantly, however, on the United States’ ability to reciprocate.

The United States has constructed an expansive network of international agreements, including income tax or other conventions and bilateral agreements relating to the exchange of tax information (collectively referred to as information exchange agreements), which provide for the exchange of information related to tax enforcement under appropriate circumstances. These information exchange relationships are based on cooperation and reciprocity. A jurisdiction’s willingness to share information with the IRS to combat offshore tax evasion by U.S. taxpayers depends, in large part, on the ability of the IRS to exchange information that will assist that jurisdiction in combating offshore tax evasion by its own residents. These regulations, by requiring reporting of deposit interest to the IRS, will ensure that the IRS is in a position to exchange such information reciprocally with a treaty partner when it is appropriate to do so.

Second, in 2010, Congress supplemented the established network of information exchange agreements by enacting, as part of the Hiring Incentives to Restore Employment Act of 2010 (Public Law 111 -147), provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) that require overseas financial institutions to identify U.S. accounts and report information (including interest payments) about those accounts to the IRS. In many cases, however, the implementation of FATCA will require the cooperation of foreign governments in order to overcome legal impediments to reporting by their resident financial institutions. Like the United States, those foreign governments are keenly interested in addressing offshore tax evasion by their own residents and need tax information from other jurisdictions, including the United States, to support their efforts. These regulations will facilitate intergovernmental cooperation on FATCA implementation by better enabling the IRS, in appropriate circumstances, to reciprocate by exchanging information with foreign governments for tax administration purposes.

Finally, the reporting of information required by these regulations will also directly enhance U.S. tax compliance by making it more difficult for U.S. taxpayers with U.S. deposits to falsely claim to be nonresidents in order to avoid U.S. taxation on their deposit interest income.

International Standard for Transparency and Information Exchange

Under the international standard for transparency and exchange of information, which is reflected in the Organisation for Economic Cooperation and Development (OECD) Model Agreement on Exchange of Information on Tax Matters, the OECD Model Tax Convention, and the United Nations Model Double Tax Convention between Developed and Developing Countries, exchange of tax information cannot be limited by domestic bank secrecy laws or the absence of a specific domestic tax interest in the information to be exchanged. Accordingly, under this global standard a country cannot refuse to share tax information based on domestic laws that do not require banks to share the information. In addition, under the global standard, a country cannot opt out of information exchange based on the fact that the country does not itself need the information to enforce its own tax rules. Thus, even countries that do not impose income taxes, and therefore do not have tax enforcement concerns, have entered into information exchange agreements to provide information about the accounts of nonresidents.

Comments Regarding Confidentiality and Improper Use of Information

Some comments on the 2011 proposed regulations expressed concerns that the information required to be reported under those regulations might be misused. For example, comments expressed concern that deposit interest information may be shared with a country that does not have laws in place to protect the confidentiality of the information exchanged or that would use the information for purposes other than the enforcement of its tax laws. These comments further suggested that these concerns could affect nonresident alien investors’ decisions about the location of their deposits.

The Treasury Department and the IRS believe that the concerns raised by the comments are addressed by existing legal limitations and administrative safeguards governing tax information exchange. As discussed herein, information reported pursuant to these regulations will be exchanged only with foreign governments with which the United States has an agreement providing for the exchange and when certain additional requirements are satisfied. Even when such an agreement exists, the IRS is not compelled to exchange information, including information collected pursuant to these regulations, if there is concern regarding the use of the information or other factors exist that would make exchange inappropriate.

First, information reported pursuant to these regulations is return information under section 6103. Section 6103 imposes strict confidentiality rules with respect to all return information. Moreover, section 6103(k)(4) allows the IRS to exchange return information with a foreign government only to the extent provided in, and subject to the terms and conditions of an information exchange agreement. Thus, the IRS can share the information reported under these regulations only with foreign governments with which the United States has an information exchange agreement. Absent such an agreement, the IRS is statutorily barred from sharing return information with another country, and these regulations cannot and do not change that rule.

Second, consistent with established international standards, all of the information exchange agreements to which the United States is a party require that the information exchanged under the agreement be treated and protected as secret by the foreign government. In addition, information exchange agreements generally prohibit foreign governments from using any information exchanged under such an agreement for any purpose other than the purpose of administering, collecting, and enforcing the taxes covered by the agreement. Accordingly, under these agreements, neither country is permitted to release the information shared under the agreement or use it for any other law enforcement purposes.

Third, consistent with the international standard for information exchange and United States law, the United States will not enter into an information exchange agreement unless the Treasury Department and the IRS are satisfied that the foreign government has strict confidentiality protections. Specifically, prior to entering into an information exchange agreement with another jurisdiction, the Treasury Department and the IRS closely review the foreign jurisdiction’s legal framework for maintaining the confidentiality of taxpayer information. In order to conclude an information exchange agreement with another country, the Treasury Department and the IRS must be satisfied that the foreign jurisdiction has the necessary legal safeguards in place to protect exchanged information and that adequate penalties apply to any breach of that confidentiality.

Finally, even if an information exchange agreement is in effect, the IRS will not exchange information on deposit interest or otherwise with a country if the IRS determines that the country is not complying with its obligations under the agreement to protect the confidentiality of information and to use the information solely for collecting and enforcing taxes covered by the agreement. The IRS also will not exchange any return information with a country that does not impose tax on the income being reported because the information could not be used for the enforcement of tax laws within that country.

In addition, the IRS has options regarding the appropriate form of exchange. For example, the IRS might exchange information with another jurisdiction only upon specific request. In the case of specific exchange requests, the IRS evaluates the requesting country’s current practices with respect to information confidentiality. The IRS also requires the requesting country to explain the intended permitted use of the information and justify the relevance of that information to the permitted use. Alternatively, in appropriate circumstances, the IRS might exchange certain information on an automatic basis. The IRS currently exchanges deposit interest information on an automatic basis with only one jurisdiction (Canada). The IRS will not enter into a new automatic exchange relationship with a jurisdiction unless it has reviewed the country’s policies and practices and has determined that such an exchange relationship is appropriate. Further, the IRS generally will not enter into an automatic exchange relationship with respect to the information collected under these regulations unless the other jurisdiction is willing and able to reciprocate effectively.

The Treasury Department and the IRS believe that the legal and administrative safeguards described in the preceding paragraphs regarding the use of information collected under these regulations should adequately address the concerns identified by the comments and, therefore, these regulations should not significantly impact the investment and savings decisions of the vast majority of nonresidents who are aware of and understand these safeguards and existing law and practice. Nevertheless, to enhance awareness and further address concerns, these final regulations revise the 2011 proposed regulations to require reporting only in the case of interest paid to a nonresident alien individual resident in a country with which the United States has in effect an information exchange agreement pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate.

For this purpose, the Treasury Department and the IRS will publish a Revenue Procedure contemporaneously with these final regulations specifically identifying the countries with which the United States has in force such an information exchange agreement. The Revenue Procedure will be updated as appropriate. With respect to any calendar year, payors will only be required to report interest on deposits maintained at an office within the United States and paid to a nonresident alien individual who is a resident of a country identified in the Revenue Procedure as of December 31 of the prior calendar year as being a country with which the United States has in effect such an information exchange agreement. To address any potential burden associated with reporting on this basis, the final regulations provide that for any year for which the information return under §1.6049-4(b)(5) is required, a payor may elect to report interest payments to all nonresident alien individuals.

As previously discussed, the identification of a country as having an information exchange agreement with the United States does not necessarily mean that the information collected under these regulations will be reported to such foreign jurisdiction. As an additional measure to further increase awareness among concerned nonresidents regarding the IRS’ use of information collected under these regulations, the Revenue Procedure also will include a second list identifying the countries with which the Treasury Department and the IRS have determined that it is appropriate to have an automatic exchange relationship with respect to the information collected under these regulations. This determination will be made only after further assessment of a country’s confidentiality laws and practices and the extent to which the country is willing and able to reciprocate.

In addition, in response to comments, and given the information exchange practices described in the preceding paragraphs and the information that will be available in the Revenue Procedure, these final regulations eliminate the requirement in the 2011 proposed regulations for financial institutions to include in the information statement provided to nonresident alien individuals a statement informing the individual that the information may be furnished to the government of the country where the recipient resides. In addition, these final regulations clarify that a payor or middleman may rely on the permanent residence address provided on a valid Form W-8BEN, “Beneficial Owners Certificate of Foreign Status for U.S. Tax Withholding”, for purposes of determining the country of residence of a nonresident alien to whom reportable interest is paid unless the payor or middleman knows or has reason to know that such documentation of the country of residence is unreliable or incorrect. The final regulations also modify §31.3406(g)-1 of the proposed regulations to clarify that, consistent with the backup withholding rules generally, a payment of interest described in §1.6049-8(a) is not subject to withholding under section 3406 if the payor may treat the payee as a foreign person, without regard to whether the payor reported such interest (although a payor may be subject to penalties if it fails to report as required). As under the prior regulations requiring the reporting of interest paid to Canadian non-resident alien individuals, the final regulations define interest subject to reporting to mean interest paid on deposits as defined under section 871(i)(2)(A) (including deposits with persons carrying on a banking business, deposits with certain savings institutions, and certain amounts held by insurance companies under agreements to pay interest thereon).

Comments Regarding Authority and Congressional Intent

Some comments expressed the view that the Treasury Department and the IRS lack the authority to require the reporting required under the 2011 proposed regulations, or that the 2011 proposed regulations are contrary to Congressional intent. The relevant statutory provisions expressly contemplate that the Treasury Department and the IRS have authority to require reporting on deposit interest paid to nonresidents. Section 6049(a) provides generally for reporting with respect to interest payments. Section 6049(b)(2)(B) and (5) provides that, except to the extent otherwise provided in regulations, reportable interest does not include interest paid to nonresident alien individuals on deposits described in section 871(i)(2)(A). Section 6049(b)(2)(B) and (5) thus provides express authority for the Treasury Department and the IRS to issue regulations requiring reporting of such interest.

Special Analyses

It has been determined that these regulations are not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations.

When an agency promulgates a final rule, the Regulatory Flexibility Act, 5 U.S.C. chapter 6 (RFA), requires the agency to prepare a final regulatory flexibility analysis describing the impact of the final rule on small entities. 5 U.S.C. 604. Section 605 of the RFA allows an agency to certify a rule, in lieu of preparing a regulatory flexibility analysis, if the final rule is not expected to have a significant economic impact on a substantial number of small entities.

These regulations impose a collection of information, and thus, the Regulatory Flexibility Act (5 U.S.C. chapter 6) applies. It is hereby certified that the collection of information contained in these regulations will not have a significant economic impact on a substantial number of small entities.

The preamble to the 2011 proposed regulations sets forth an analysis of the number of small entities that may be required to report under these regulations. Although this rule may affect a substantial number of small entities, the IRS has determined that the impact on entities affected by these final regulations will not be significant.

Some comments expressed concern that the regulations would impose a new administrative burden on U.S. financial institutions. In addition, some comments objected that collecting and reporting this information imposes burdens on certain types of financial institutions, including community banks and banks in certain states that have a larger percentage of customers who are nonresident alien individuals.

The Treasury Department and the IRS disagree. Under existing law, all U.S. financial institutions have responsibilities to withhold on and report with respect to depositors who are U.S. citizens, U.S. resident individuals, and Canadian resident individuals, and have developed the systems to perform such withholding and reporting.

All nonresident alien individual account holders who maintain accounts in the United States are already required to complete a Form W-8BEN, declaring their non-U.S. status and the country in which they reside. U.S. financial institutions can use their existing W-8 information to produce Form 1042-S disclosures for the relevant nonresident alien individual account holders. Nearly all U.S. banks and other financial institutions have automated systems to produce Form 1099-INT, “Interest Income”, for U.S. accountholders and Form 1042-S, “Foreign Person’s U.S. Source Income Subject to Withholding”, for Canadian accountholders. As a result, the information collection requirements in these regulations build on reporting and information collection systems familiar to and currently used by U.S. financial institutions, including small business entities. The amount of time required to complete the Form 1042 and Form 1042-S is minimal, and the statement that is required to be collected is brief. Accordingly, it should not be a significant burden to adapt those systems to report with respect to depositors who are resident in other countries with which the United States has an information exchange agreement. Therefore, a regulatory flexibility analysis is not required.

Pursuant to section 7805(f) of the Code, the notice of proposed rulemaking preceding these final regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small businesses. The Chief Counsel for Advocacy of the Small Business Administration did not comment on the notice of proposed rulemaking.

Adoption of Amendments to the Regulations

Accordingly, 26 CFR parts 1 and 31 are amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority 26 U.S.C. 7805 * * *

Par. 2. In §1.6049-4, paragraph (b)(5) is revised to read as follows:

§1.6049-4 Return of information as to interest paid and original issue discount includible in gross income after December 31, 1982.

(b) * * *

(5) Interest payments to certain nonresident alien individuals—(i) General rule. In the case of interest aggregating $10 or more paid to a nonresident alien individual (as defined in section 7701(b)(1)(B)) that is reportable under §1.6049-8(a), the payor shall make an information return on Form 1042-S, “Foreign Person’s U.S. Source Income Subject to Withholding,” for the calendar year in which the interest is paid. The payor or middleman shall prepare and file Form 1042-S at the time and in the manner prescribed by section 1461 and the regulations under that section and by the form and its accompanying instructions. See §§1.1461-1(b) (rules regarding the preparation of a Form 1042) and 1.6049-6(e)(4) (rules for furnishing a copy of the Form 1042-S to the recipient). To determine whether an information return is required for original issue discount, see §§1.6049-5(f) and 1.6049-8(a).

(ii) Effective/applicability date. Paragraph (b)(5)(i) of this section shall be applicable for payments made on or after January 1, 2013. (For interest paid to a Canadian nonresident alien individual on or before December 31, 2012, see paragraph (b)(5) of this section as in effect and contained in 26 CFR part 1 revised April 1, 2000.)

* * * * *

Par. 3. Section 1.6049-5 is amended as follows:

1. In paragraph (b)(12), the last sentence is revised.

2. In paragraph (f), the last sentence is revised.

The revisions read as follows:

§1.6049-5 Interest and original issue discount subject to reporting after December 31, 1982.

* * * * *

(b) * * *

(12) * * * This paragraph (b)(12) does not apply to interest paid on or after January 1, 2013, to a nonresident alien individual to the extent provided in §1.6049-8.

* * * * *

(f) * * * Original issue discount on an obligation (including an obligation with a maturity of not more than six months from the date of original issue) held by a nonresident alien individual or foreign corporation is interest described in paragraph (b)(1)(vi)(A) or (B) of this section and, therefore is not interest subject to reporting under section 6049 unless it is described in §1.6049-8(a) (relating to deposit interest paid on or after January 1, 2013, to certain nonresident alien individuals).

* * * * *

Par. 4. Section 1.6049-6 is amended as follows:

1. The paragraph heading and text of paragraph (e)(4) is revised.

2. In paragraph (e)(5), the paragraph heading and first sentence are revised and a new sentence is added at the end of the paragraph.

The additions and revisions read as follows:

§1.6049-6 Statements to recipients of interest payments and holders of obligations for attributed original issue discount.

* * * * *

(e) * * *

(4) Special rule for amounts described in §1.6049-8(a). In the case of amounts described in §1.6049-8(a) (relating to payments of deposit interest to certain nonresident alien individuals) paid on or after January 1, 2013, any person who makes a Form 1042-S, “Foreign Person’s U.S. Source Income Subject to Withholding,” under section 6049(a) and §1.6049-4(b)(5) shall furnish a statement to the recipient either in person or by first class mail to the recipient’s last known address. The statement shall include a copy of the Form 1042-S required to be prepared pursuant to §1.6049-4(b)(5) and a statement to the effect that the information on the form is being furnished to the United States Internal Revenue Service.

(5) Effective/applicability date. Paragraph (e)(4) of this section applies to payee statements reporting payments of deposit interest to nonresident alien individuals paid on or after January 1, 2013. * * * (For interest paid to a Canadian nonresident alien individual on or before December 31, 2012, see paragraph (e)(4) of this section as in effect and contained in 26 CFR part 1 revised April 1, 2000.)

Par. 5. In §1.6049-8, the section heading and paragraph (a) are revised to read as follows:

§1.6049-8 Interest and original issue discount paid to certain nonresident aliens.

(a) Interest subject to reporting requirement. For purposes of §§1.6049-4, 1.6049-6, and this section, and except as provided in paragraph (b) of this section, the term interest means interest described in section 871(i)(2)(A) that relates to a deposit maintained at an office within the United States, and that is paid to a nonresident alien individual who is a resident of a country that is identified, in an applicable revenue procedure (see §601.601(d)(2) of this chapter) as of December 31 prior to the calendar year in which the interest is paid, as a country with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4), under which the competent authority is the Secretary of the Treasury or his delegate and the United States agrees to provide, as well as receive, information. Notwithstanding the foregoing, for purposes of §§1.6049-4, 1.6049-6, and this section, for any year for which the information return under §1.6049-4(b)(5) is required, a payor may elect to treat interest as including all interest described in section 871(i)(2)(A) that relates to a deposit maintained at an office within the United States and that is paid to any nonresident alien individual. A payor shall make this election by reporting all such interest. For purposes of the regulations under section 6049 (§§1.6049-1 through 1.6049-8), a nonresident alien individual is a person described in section 7701(b)(1)(B). A payor or middleman may rely upon the permanent residence address provided on a valid Form W-8BEN, “Beneficial Owners Certificate of Foreign Status for U.S. Tax Withholding”, to determine the country in which a nonresident alien individual is resident unless such payor or middleman knows or has reason to know that such documentation of the country of residence is unreliable or incorrect. Amounts described in this paragraph (a) are not subject to backup withholding under section 3406 if the payor may treat the payee as a foreign beneficial owner or foreign payee under the rules of §1.6049-5(b)(12). See §31.3406(g)-1(d) of this chapter. However, if the payor or middleman does not have either a valid Form W-8BEN or valid Form W-9, “Request for Taxpayer Identification Number and Certification”, the payor or middleman must report the payment as made to a U.S. non-exempt recipient if it must so treat the payee under the presumption rules of §1.6049-5(d)(2) and §1.1441-1(b)(3)(iii), and the payor must also backup withhold under section 3406. (For interest paid to a Canadian nonresident alien individual on or before December 31, 2012, see paragraph (a) of this section as in effect and contained in 26 CFR part 1 revised April 1, 2000).

* * * * *

PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT THE SOURCE

Par. 6. The authority citation for part 31 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 7. In §31.3406(g)-1, paragraph (d) is revised to read as follows:

§31.3406(g)-1 Exception for payments to certain payees and certain other payments.

* * * * *

(d) Reportable payments made to nonresident alien individuals. A payment of interest to a nonresident alien individual that is described in §1.6049-(8)(a) of this chapter is not subject to withholding under section 3406 if the payor may treat the payee as a foreign beneficial owner or foreign payee under the rules of §1.6049-5(b)(12). (For interest paid to a Canadian nonresident alien individual on or before December 31, 2012, see paragraph (d) of this section as in effect and contained in 26 CFR part 1 revised April 1, 2000.)

* * * * *

Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.

Approved April 12, 2012.

Emily S. McMahon,
(Acting) Assistant Secretary
of the Treasury (Tax Policy).

Note

(Filed by the Office of the Federal Register on April 17, 2012, 4:15 p.m., and published in the issue of the Federal Register for April 19, 2012, 77 F.R. 23391)

Drafting Information

The principal author of the regulations is Kathryn Holman, Office of Associate Chief Counsel (International). However, other personnel from the Treasury Department and the IRS participated in their development.

* * * * *

Part III. Administrative, Procedural, and Miscellaneous

Notice 2012-31

Minimum Value of an Employer-Sponsored Health Plan

I. PURPOSE AND OVERVIEW

This notice describes and requests comments on several possible approaches to determining whether health coverage under an eligible employer-sponsored plan, as defined in § 5000A of the Internal Revenue Code (“employer-sponsored plan”), provides minimum value within the meaning of § 36B(c)(2)(C)(ii). Beginning in 2014, eligible individuals who purchase coverage under a qualified health plan through an Affordable Insurance Exchange may receive a premium tax credit under § 36B unless they are eligible for other minimum essential coverage, including coverage under an employer-sponsored plan that is affordable to the employee and provides minimum value. Under § 36B(c)(2)(C)(ii), a plan fails to provide minimum value if “the plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs.” If the coverage offered by the employer fails to provide minimum value, an employee may be eligible to receive a premium tax credit. An applicable large employer (as defined in § 4980H(c)(2)) may be liable for an assessable payment under § 4980H if any full-time employee receives a premium tax credit.

The Treasury Department and the Internal Revenue Service intend to issue proposed regulations on determining minimum value and are considering incorporating the approach described in this notice. As described below, under anticipated future guidance, an employer-sponsored plan would be able to use one of several alternative approaches to ascertain that the plan provides minimum value. Specifically, this notice seeks comment on the following three potential approaches that could be used to determine whether an employer-sponsored plan provides minimum value:

  • The actuarial value calculator (AV calculator), referred to below, or a minimum value calculator (MV calculator) to be made available by the Department of Health and Human Services (HHS) and the Treasury Department. In either case, the calculator would permit an employer-sponsored plan to enter information about the plan’s benefits, coverage of services, and cost-sharing terms to determine whether the plan provides minimum value. The data underlying the MV calculator (which would be designed for use by employer-sponsored self-insured plans and insured large group plans) are expected to be claims data reflecting typical self-insured employer plans.

  • An array of design-based safe harbors in the form of checklists that would provide a simple, straightforward way to ascertain that employer-sponsored plans provide minimum value without the need to perform any calculations or obtain the assistance of an actuary.

  • For plans with nonstandard features that preclude the use of the AV calculator or the MV calculator without adjustments, an appropriate certification by a certified actuary, in accordance with prescribed continuance tables, recognized actuarial standards, and other conditions that may be prescribed in administrative guidance, that the plan provides minimum value.

Section VI of this notice describes these potential approaches in greater detail.

Under the statute, certain of the rules for determining whether an employer-sponsored plan provides minimum value are to be based on forthcoming regulations to be issued by HHS that will specify the methods for determining the actuarial value of a qualified health plan (QHP) offered through an Affordable Insurance Exchange and non-grandfathered plans in the individual and small group markets. On February 24, 2012, HHS issued the “Actuarial Value and Cost-Sharing Bulletin” (HHS actuarial value bulletin) describing the assumptions and methodology that HHS anticipates will govern the calculation of actuarial value.[1] (See http://cciio.cms.gov/resources/files/Files2/02242012/Av-csr-bulletin.pdf.) This notice describes how guidance issued by HHS on the determination of actuarial value is expected to be applied in determining minimum value. This notice also outlines ways in which the determination of minimum value is expected to differ from the determination of the actuarial value of QHPs in order to reflect differences between QHPs and employer-sponsored plans, such as differences in their levels of standardization and the populations covered.

Employer-sponsored self-insured and insured large group plans are not required to conform their plans to any of the essential health benefit (EHB) benchmarks that HHS intends to propose to apply to QHPs.[2] These employer-sponsored plans need not offer all of the EHBs or even cover each of the ten statutory EHB categories.

This notice provides information regarding the actuarial value of existing employer-sponsored plans (Section II) and the statutory background of the premium tax credit and the minimum value provision (Section III). The notice then describes, by way of background, the intended methodology laid out in the HHS actuarial value bulletin for determining the actuarial value of a QHP (Section IV) and explains the assumptions expected to be used to determine whether an employer-sponsored plan meets the minimum value threshold (Section V). The notice describes the options that are being considered for determining whether an employer-sponsored plan has an actuarial value of at least 60 percent and therefore provides minimum value (Section VI). Finally, the notice also invites public comments (Section VII).

II. ACTUARIAL VALUE OF EXISTING EMPLOYER-SPONSORED PLANS

The actuarial value of a health plan is a measure of the percentage of health care costs, on average, that the plan is expected to cover. A report issued last fall by HHS found that approximately 98 percent of individuals currently covered by employer-sponsored plans are enrolled in plans that have an actuarial value of at least 60 percent using methods and assumptions similar to those described in this notice for determining minimum value. (See Actuarial Value and Employer-Sponsored Insurance, ASPE Research Brief, U.S. Department of Health and Human Services (November 2011) http://aspe.hhs.gov/health/reports/2011/AV-ESI/rb.shtml.) The HHS report also concludes that four core categories of benefits and services are the greatest contributors to a health plan’s actuarial value: physician and mid-level practitioner care; hospital and emergency room services; pharmacy benefits; and laboratory and imaging services. Because they account for only a very small portion of overall medical expenditures, benefits and services beyond these four core categories of benefits that are covered by a plan generally have only a limited impact on the plan’s actuarial value. For example, a plan that does not include coverage for rehabilitative services, durable medical equipment, acupuncture and chiropractic services, and home health services may have an actuarial value that is only 5 percent less than a plan that includes coverage for these services. (See ASPE Research Brief.) We seek input on whether other analyses using different data or assumptions produce similar or different results.

III. STATUTORY BACKGROUND

Section 36B was added by § 1401 of the Patient Protection and Affordable Care Act, Public Law 111-148, and modified by the Health Care and Education Reconciliation Act of 2010, Public Law 111-152 (collectively, the Affordable Care Act). Beginning in 2014, certain taxpayers are allowed a refundable premium tax credit under § 36B to assist in purchasing QHP coverage through an Affordable Insurance Exchange. The premium tax credit is designed to make QHP coverage affordable by reducing an eligible taxpayer’s out-of-pocket premium cost. (Under § 1402 of the Affordable Care Act, eligible individuals are entitled to an advance payment of the premium tax credit, which is paid directly to the QHP issuer selected by the individual.)

An employee, or a member of the employee’s family, who is eligible to enroll in an employer-sponsored plan is not eligible for a premium tax credit unless the plan’s coverage for the employee either is unaffordable, as defined in § 36B(c)(2)(C)(i)(II), or does not provide minimum value, as defined in § 36B(2)(c)(2)(C)(ii). An employee (or member of the employee’s family) also is not eligible if he or she actually enrolls in the employer-sponsored plan, even if the plan is not affordable or fails to provide minimum value. Under § 4980H, an “applicable large employer” is generally liable for an assessable payment if any full-time employee receives a premium tax credit.

To satisfy the minimum value requirement under § 36B(c)(2)(C)(ii), a plan’s share of the “total allowed costs of benefits provided under the plan” must equal or exceed 60 percent of such costs. Section 1302(d)(2)(C) of the Affordable Care Act directs that the statutory phrase — “percentage of the total allowed costs of benefits provided under a group health plan” — is determined under rules contained in the regulations to be promulgated by HHS under § 1302(d)(2) (titled “Actuarial Value”). The requirements applicable to these HHS regulations are set forth in subparagraphs (A) and (B) of § 1302(d)(2).[3] Consistent with these statutory requirements, the determination of whether an employer-sponsored plan provides minimum value will be based on the actuarial value rules with appropriate modifications.

Subparagraph (B) of § 1302(d)(2) requires HHS to issue regulations under which employer contributions to a health savings account (HSA) may be taken into account in determining the actuarial value of an employer-sponsored plan. In addition, § 1302(d)(3) of the Affordable Care Act authorizes the Secretary of HHS to determine a reasonable “de minimis” variation in the actuarial values used in determining the level of coverage of a plan to account for differences in actuarial estimates.

IV. HHS INTENTIONS WITH RESPECT TO ACTUARIAL VALUE FOR QUALIFIED HEALTH PLANS

The HHS actuarial value bulletin explains that, in accordance with the requirements of subparagraph (A) of § 1302(d)(2) of the Affordable Care Act, the actuarial value of QHPs offered through an Affordable Insurance Exchange (and of non-grandfathered plans in the individual and small group insurance markets) is determined by computing the ratio of (1) the total expected payments by the plan, computed in accordance with the plan’s cost-sharing rules (deductibles, co-insurance, co-payments, out-of-pocket limits), toward the costs a standard population is expected to incur at standard pricing for EHBs; over (2) the total costs a standard population is expected to incur at standard pricing for the EHBs.[4] This actuarial value is used to determine the “metal level” of a QHP (that is, platinum, gold, silver, or bronze). For example, bronze plans must have a 60 percent actuarial value.

HHS announced that it intends to make available to the public an AV calculator that could be used to determine the actuarial value of QHPs (and non-grandfathered plans in the individual and small group insurance markets). The AV calculator would be designed so that issuers would be able to input a limited set of information on the benefits provided under the plan, and the calculator would provide the actuarial value of the plan. The claims data underlying the AV calculator would represent the entire range of EHB benchmark benefits that states would be permitted to select.

Although HHS anticipates that the overwhelming majority of issuers of QHPs would be able to calculate the actuarial value of their health plans using the AV calculator, HHS requested comments on whether a QHP issuer whose plan design does not fit into the basic AV calculator logic should be able to obtain an actuarial certification in limited circumstances. HHS is considering options to permit such QHP issuers to obtain an actuarial certification that the plan design fits into the calculator logic or to obtain an actuarial certification that adjustments to the AV calculator-produced value are appropriate.

The HHS actuarial value bulletin also states that HHS intends to permit a de minimis variation of plus or minus 2 percent (so that, for example, a bronze plan could have an actuarial value between 58 and 62 percent). The bulletin also provides that amounts contributed by an employer to an HSA or first made available to an employee under a health reimbursement arrangement (HRA) would be taken into account by the AV calculator. The intended method for accounting for these contributions is discussed further below.

V. ASSUMPTIONS TO BE USED IN THE MINIMUM VALUE DETERMINATION

As discussed above, an employer-sponsored plan provides minimum value if its actuarial value is at least 60 percent. For employer-sponsored plans in the small group market, minimum value must be determined using a method that is consistent with the actuarial value rules under § 1302(d) of the Affordable Care Act and HHS guidance provided under that provision. It is expected that whether an employer-sponsored self-insured plan or insured large group plan provides minimum value would be determined in a manner generally consistent with the rules proposed by HHS for the calculation of actuarial value for plans subject to the actuarial value rules under § 1302(d), with appropriate modifications that reflect differences in the markets and also account for the fact that employer-sponsored self-insured and insured large group plans are not required to offer EHBs in each of the 10 categories. Accordingly, it is expected that the minimum value of an employer-sponsored self-insured plan and insured large group plan would be determined in the same manner as actuarial value under § 1302(b) of the Affordable Care Act, except that these plans might be valued using a comparison to claims data reflecting typical self-insured employer plans, which would be based on continuance tables[5] published specifically for use by such plans.[6] Moreover, employer-sponsored self-insured and insured large group plans, as noted above, are neither required to cover each of the categories of EHBs nor to conform their plans to any of the EHB benchmarks that HHS intends to apply to QHPs, but would be permitted to take into account all benefits provided by the plan that are included in any of the EHB benchmarks.

In addition, an employer-sponsored plan would be permitted to add to the plan’s value the employer contributions to an HSA and amounts made available under an HRA using a method similar to the method used by QHPs that are offered through a SHOP Exchange, as defined in § 1311(b)(1)(B) of the Affordable Care Act.

A. Standard Population and Utilization

Section 1302(d)(2)(A) of the Affordable Care Act specifies that actuarial value is computed based on the health expenses that are expected to be incurred by a standard population, rather than the population that a plan actually covers. For purposes of determining minimum value in a manner that meets this standard, it is expected that two types of continuance tables would be made available for use by employer-sponsored plans. First, as described in the AV bulletin, HHS intends to publish continuance tables based on claims representing the entire range of EHB benchmark benefits and population data for employer-sponsored and individual market plans, with permissible state or regional adjustments to the standard population, utilization and pricing. These continuance tables would be incorporated into the AV calculator and would be used by QHPs and employer-sponsored plans in the small group market. Second, to reflect the differences between the population covered by QHPs (and plans in the small group market) and the population covered by employer-sponsored self-insured and insured large group plans, HHS intends to publish continuance tables based on claims and population data for typical self-insured employer-sponsored plans. This second set of continuance tables would be incorporated into an MV calculator, which would be provided and could be used to calculate the actuarial value of an employer-sponsored self-insured plan or an insured large group plan. This set of continuance tables would not include claims or population data for plans that are required under the law to provide EHBs or to meet state benefit mandates.

B. Treatment of HSAs and HRAs in Calculating Minimum Value

As noted above, the HHS actuarial value bulletin provides a potential approach to the calculation of actuarial value for a high deductible health plan (HDHP) that is linked to an HSA, as defined in § 223, or a group health plan that is integrated with an HRA described in Notice 2002-45, 2002-2 C.B. 93, and Rev. Rul. 2002-41, 2002-2 C.B. 75.

The HHS actuarial value bulletin says that HHS intends to propose that, in calculating the actuarial value of the combined HDHP and HSA or combined employer-sponsored plan and HRA, the calculation would assume that the employer contribution to the HSA or amount first made available under an HRA is used by the employee to pay for cost-sharing. Accordingly, an appropriate portion of these amounts would be credited to the numerator of the actuarial value calculation. This means that any current year HSA contributions and amounts first made available under an HRA could be used to determine the actuarial value of an employer-sponsored plan. Generally, the employer would receive the same credit for HSA contributions in the numerator of the actuarial value calculation as it would receive for the same amount of first-dollar insurance coverage. The same rule would apply for amounts first made available under an HRA. (See HHS actuarial value bulletin, “Treatment of Health Savings Accounts and Health Reimbursement Arrangements in Calculating Actuarial Value.”)

Treasury and the Service intend to follow HHS’s rules for including employer contributions to an HSA and amounts made available under an HRA in the value of an employer-sponsored HDHP combined with an HSA or an employer-sponsored plan combined with an HRA when calculating the actuarial value of an employer-sponsored plan for purposes of determining whether it provides minimum value.

VI. OPTIONS FOR DETERMINING MINIMUM VALUE

Under guidance to be issued by Treasury and the Service, and consistent with rules to be promulgated by HHS, employer-sponsored plans would be able to use any one of several tests to determine whether the plan meets minimum value. Comments are requested on three potential approaches described below.

A. AV and MV Calculators

Under this option, employer-sponsored plans would be able to determine their actuarial value by entering information about the cost-sharing features of the plan for different categories of benefits into a calculator. As described in the HHS actuarial value bulletin (in the section entitled “Operational Method for AV Calculation Using Standard Data”), HHS intends to provide an AV calculator that QHPs and plans in the small group market could use to determine the actuarial value of their plans. In addition, HHS and Treasury intend to develop an MV calculator, into which an employer-sponsored self-insured plan and insured large group plan would be able to enter cost sharing information that would be similar in design to the AV calculator but based on continuance tables reflecting claims data of typical self-insured employer plans. As such, the data underlying the MV calculator would represent the range of benefits covered by self-insured plans.

A calculator generally would be used to make minimum value determinations by employer-sponsored plans that have standard cost-sharing features. An employer-sponsored plan would be able to input a limited set of information on the benefits offered under the plan and specified cost-sharing features (for example, deductibles, co-insurance, and maximum out-of-pocket costs) for the four core categories of benefits: physician and mid-level practitioner care, hospital and emergency room services, pharmacy benefits, and laboratory and imaging services. The calculator would also take into consideration the annual employer contributions to an HSA or amounts made available under an HRA, if applicable.

B. Design-Based Safe Harbor Checklists

Based on analysis and information provided by HHS, Treasury and the Service intend to issue guidance that would give certain employer-sponsored plans an easy means to determine whether a plan provides minimum value without using a calculator or performing any calculations and without the need for actuarial expertise. This alternative would provide an array of safe harbor checklists that employer-sponsored plans may compare to their plan’s coverage. If the employer-sponsored plan’s terms are consistent with or more generous than any one of the safe harbor checklists, the plan would be treated as providing minimum value.

The safe harbor checklists would be used to make minimum value determinations for plans that cover all of the four core categories of benefits and services and have specified cost-sharing amounts. Each safe harbor checklist would describe the cost-sharing attributes of a plan (such as deductibles, co-pays, co-insurance and maximum out of pocket costs) that apply to the four core categories of benefits and services.[7] The guidance would provide several safe harbor options, including coverage equivalent to an HDHP combined with an employer-funded HSA, that would satisfy the MV requirement. An employer-sponsored plan providing the four core categories would be treated as providing minimum value if its cost-sharing attributes are at least as generous as any one of the safe harbor checklist options.

Treasury and the Service expect to release the safe harbor checklists when HHS and Treasury release the MV calculator.

C. Actuarial Certification

Neither a calculator nor the safe harbor checklists would be able to accommodate employer-sponsored plans with “nonstandard” features, such as quantitative limits on any of the four core categories of benefits (including, for example, a limit on the number of physician visits or covered days in the hospital). Under a third option, consistent with the options proposed in the HHS actuarial value bulletin, employer-sponsored plans with nonstandard features would be able to generate an initial value using a calculator and then engage a certified actuary to make appropriate adjustments that take into consideration the nonstandard features.

Employer-sponsored plans with nonstandard features of a certain type and magnitude would also have the option of engaging a certified actuary to determine the plan’s actuarial value without the use of a calculator. The actuarial value would be determined in such case in accordance with the Actuarial Standards of Practice established by the Actuarial Standards Board. The certified actuary would make this determination based on the plan’s benefits and coverage data and the standard population, utilization and pricing tables published by HHS in consultation with Treasury in the form of the continuance tables available for purposes of the valuation of employer-sponsored plans and consistent with applicable administrative guidance.

VII. REQUEST FOR COMMENTS

Comments are requested on issues to be addressed in guidance on determining minimum value for an employer-sponsored plan. Comments are requested on issues plan sponsors, issuers, and employers may face in evaluating plan designs that will cover part or all of 2014, including suggestions for transitional relief for plan years that start before and end in 2014.

Comments are requested on the potential alternative methods for determining whether an employer-sponsored plan provides minimum value. Comments are specifically requested on the following points:

  1. The AV calculator or MV calculator would permit sponsors and issuers of employer-sponsored plans to enter information reflecting the benefits they cover and the cost-sharing features relating to the four core categories of benefits. Comments are requested on whether and how the actuarial value initially generated by the AV calculator or the MV calculator could be adjusted to take into consideration other benefits provided under the plan. For example, how could benefits such as wellness benefits be added to the actuarial value initially generated by the AV calculator or the MV calculator to determine whether an employer-sponsored plan provides minimum value? Are there other examples of benefits that employer-sponsored plans cover today or are likely to cover that might not be captured by the MV calculator and, if so, are employer-sponsored plans that cover those benefits typically near 60 percent actuarial value or more likely to be well above 60 percent actuarial value?

  2. As discussed above, employer-sponsored plans with nonstandard features, such as quantitative limits on the four core categories of benefits, would not be able to use the AV calculator or the MV calculator (without an adjustment) to determine whether the plan provides minimum value. Comments are requested on nonstandard features within the four core categories that are sufficiently narrow that the AV calculator or the MV calculator could still be used without adjustment to determine whether a plan provides minimum value and on the quantitative limits that employer-sponsored plans commonly use today. Comments are also requested on other plan features that could require the plan to adjust the valuation generated by the AV calculator or MV calculator.

  3. Comments are requested on the terms that should be included in the safe harbor checklists and the types of plans for which safe harbor checklists should be developed.

  4. With respect to a possible independent actuarial value certification, comments are requested on standards and safeguards that should be applied to ensure that the plan meets the 60 percent actuarial value threshold for the minimum value determination.

Comments may be submitted in writing on or before June 11, 2012. Comments should be submitted to Internal Revenue Service, CC:PA:LPD:PR (Notice 2012-31), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or electronically to Notice.Comments@irscounsel.treas.gov. Please include “Notice 2012-31” in the subject line of any electronic communications. Alternatively, comments may be hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (Notice 2012-31), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, D.C. All comments will be available for public inspection and copying.

FOR ADDITIONAL INFORMATION

For further information on this notice, call the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities) at (202) 927-9639 (not a toll-free call).



[1] The actuarial value rules under § 1302(d) and the essential health benefit provision under § 1302(b) apply to QHPs offered on an Affordable Insurance Exchange and also to non-grandfathered plans in the individual and small group insurance market. See § 2707(a) of the Public Health Service Act, as added by § 1201 of the Affordable Care Act, which provides that non-grandfathered plans in the individual and small group insurance markets must cover the “essential health benefits package,” as defined in § 1302(a) of the Affordable Care Act.

[2] The EHB benchmarks that HHS intends to propose also apply to non-grandfathered plans in the individual and small group insurance markets.

[3] Subparagraph (A) of § 1302(d)(2) requires the level of coverage of a plan to be “determined on the basis that the essential health benefits described in subsection [1302](b) shall be provided to a standard population. . . .”

[4] On December 16, 2011, HHS issued the “Essential Health Benefits Bulletin,” which outlined the approach HHS plans to use to define the EHBs. (See http://cciio.cms.gov/resources/files/Files2/12162011/essential_health_benefits_bulletin.pdf.) Under this approach, each state would have the flexibility to select a “benchmark plan” from a list of permissible options specified by HHS in the bulletin. The scope of benefits provided under the state-specific benchmark plan would determine the scope of EHBs for QHPs in that state. In addition, the EHBs must encompass the ten categories of benefits listed in § 1302(a) of the Affordable Care Act. If the benchmark plan in a state does not offer coverage in each of the ten categories, the bulletin provides an intended method for supplementing deficient categories of benefits so all QHPs in the state would include benefits in all ten categories. The bulletin also provides an intended method for determining the benchmark plan in a state if the state fails to make a selection.

[5] A health insurance continuance table is a distribution of annual paid claims arranged in a format that shows the amount of claims paid at each increasing level of expenditure, adding up to the total amount of expenditures for a covered group of enrollees.

[6] This use of claims data reflected in the continuance tables would be relevant only for the purpose of determining minimum value, and does not imply that a plan must provide a particular set of benefits.

[7] Although employer-sponsored plans are not required to cover all four categories of coverage, it is anticipated that plans failing to cover these categories would not satisfy any of the design-based safe harbors.

Notice 2012-32

Request for Comments on Reporting of Health Insurance Coverage

I. PURPOSE

This notice invites comments concerning the reporting requirements under § 6055 of the Internal Revenue Code for health insurance issuers, government agencies, employers that sponsor self-insured plans, and other persons that provide minimum essential coverage to an individual. Section 6055 was added by § 1502(a) of the Patient Protection and Affordable Care Act, Public Law 111-148, which was amended by the Health Care and Education Reconciliation Act of 2010, Public Law 111-152 (collectively, the Affordable Care Act). The reporting requirements apply to coverage provided on or after January 1, 2014. The first information returns will be filed in 2015. The Department of the Treasury and the Internal Revenue Service plan to propose regulations implementing the reporting requirements under § 6055. The proposed regulations are expected to include guidance intended to minimize administrative burden and duplicative reporting. To assist in the development of the proposed regulations, this notice invites comments on issues arising under § 6055.

II. BACKGROUND

“Minimum essential coverage” is a term defined to include health insurance coverage offered in the individual market (such as a qualified health plan enrolled in through an Affordable Insurance Exchange (Exchange)), an eligible employer-sponsored plan, or government-sponsored coverage such as Medicare, Medicaid, the Children’s Health Insurance Program, TRICARE, or veterans’ health care under chapter 17 or 18 of Title 38 U.S.C. Section 5000A(f). Under § 5000A(f)(1)(E), the Department of Health and Human Services, in coordination with the Treasury Department, may designate other health benefits coverage as minimum essential coverage.

Section 6055(a) requires every health insurance issuer, sponsor of a self-insured health plan, government agency that administers government-sponsored health insurance programs and other entity that provides minimum essential coverage to file annual returns reporting information for each individual for whom minimum essential coverage is provided. If health insurance coverage is provided by a health insurance issuer and consists of coverage provided through a group health plan of an employer, it is anticipated that the regulations would make the health insurance issuer responsible for the reporting.

Section 6055(b)(1) provides that all information returns reporting minimum essential coverage are to contain (1) the name, address, and taxpayer identification number of the primary insured and each other individual covered under the policy or plan, (2) the dates each individual was covered under minimum essential coverage during the calendar year, (3) in the case of health insurance coverage, whether the coverage is a qualified health plan offered through an Exchange, (4) if the coverage is a qualified health plan offered through an Exchange, the amount (if any) of any advance payment of the premium tax credit under § 1412 of the Affordable Care Act or of any cost-sharing reduction under § 1402 of the Affordable Care Act for each covered individual, and (5) other information that the Secretary requires.

Section 6055(b)(2) provides that information returns for minimum essential coverage provided by a health insurance issuer through an employer’s group health plan also include the name, address, and employer identification number of the employer maintaining the plan, the portion of the premium to be paid by the employer, and any other information that the Secretary may require for administering the tax credit under § 45R (credit for employee health insurance expenses of small employers).

Section 6055(c)(1) directs the entity filing an information return reporting minimum essential coverage to furnish a written statement to each individual listed on the return that shows the information that must be reported to the Service for that individual.

In addition, effective for years beginning after 2013, § 6056 directs every applicable large employer (within the meaning of § 4980H(c)(2)) that is required to meet the shared employer responsibility requirements of § 4980H during a calendar year to file a return with the Service that reports the terms and conditions of the health care coverage provided to the employer’s full-time employees for the year. The return also is required to include information on the employer’s full-time employees, including those who received the coverage and when they received it. Section 6056(d) permits the Secretary to provide, to the maximum extent feasible, that any return or statement required under § 6056 may be provided as part of a return or statement under § 6055 or § 6051 (relating to reporting by employers on the Form W-2, Wage and Tax Statement), and that an applicable large employer offering coverage of an issuer may agree with the issuer to include information under § 6056 with the return and statement provided by the issuer under § 6055. See Notice 2012-33, 2012-20 I.R.B. 912 (May 14, 2012).

III. REQUEST FOR COMMENTS

The Treasury Department and the Service request comments on issues that should be addressed in regulations implementing reporting under § 6055, including but not limited to:

  1. How to determine when an individual’s coverage begins and ends for purposes of reporting the dates of coverage.

  2. How to minimize duplication between the reporting by health insurance issuers and employers under § 6055 and the reporting by Exchanges under § 36B(f)(3).

  3. How to coordinate and minimize duplication between the reporting under § 6055, § 6056, and any other applicable Code provision for employers that sponsor self-insured plans, including but not limited to the potential combined reporting referred to in § 6056(d), as described above.

  4. When minimum essential coverage is provided through a voluntary employees’ beneficiary association or other type of welfare benefit fund, who is required to report under § 6055 and what, if any, special rules should apply.

  5. Whether there are any specific concerns that should be taken into account in any of the following circumstances:

    1. In the case of electronic information reporting and delivery of statements to individuals and the Service;

    2. If a third party administrator has information that is relevant to reporting for a self-insured plan;

    3. If an individual is covered under one type of coverage for part of the year and another type of coverage for another part of the year; or

    4. When minimum essential coverage is provided under a multiemployer plan.

  6. Whether any difficulties exist in identifying the person responsible for administering information reporting for governmental coverage, for example in state-administered programs such as Medicaid.

  7. Any additional suggestions for minimizing burden on entities reporting information under § 6055.

Comments may be submitted in writing on or before June 11, 2012. Comments should be submitted to Internal Revenue Service, CC:PA:LPD:PR (Notice 2012-32), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or electronically to Notice.Comments@irscounsel.treas.gov. Please include “Notice 2012-32” in the subject line of any electronic communications. Alternatively, comments may be hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (Notice 2012-32), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, D.C. All comments will be available for public inspection and copying.

IV. DRAFTING INFORMATION

The principal authors of this notice are Andrew Braden and Frank W. Dunham III of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information, please contact Mr. Braden or Mr. Dunham at (202) 622-4960 (not a toll-free call).

Notice 2012-33

Request for Comments on Reporting by Applicable Large Employers on Health Insurance Coverage Under Employer-Sponsored Plans

I. PURPOSE

This notice invites comments on reporting under § 6056 of the Internal Revenue Code for applicable large employers (as defined in § 4980H(c)(2)) that are subject to § 4980H. Section 6056 was enacted by § 1514(a) of the Patient Protection and Affordable Care Act, Pub. L. 111-148 (enacted on March 23, 2010), which was amended by the Health Care and Education Reconciliation Act, Pub. L. 111-152 (enacted on March 30, 2010) (collectively, the Affordable Care Act). Section 6056 requires reporting of certain information on employer-provided health care coverage provided on or after January 1, 2014 and the furnishing of related statements to employees. The first information returns will be filed in 2015. The Internal Revenue Service will use the information that employers report under § 6056 to verify employer-sponsored coverage and to administer the shared employer responsibility provisions under § 4980H(a) and (b). See generally Notice 2011-36, 2011-21 I.R.B. 792, and Notice 2011-73, 2011-40 I.R.B. 74.

The Department of the Treasury and the Service intend to propose regulations implementing the reporting requirements of § 6056. The proposed regulations are expected to include guidance intended to minimize administrative burden and duplicative reporting. To assist in the development of the proposed regulations, this notice invites comments on issues arising under § 6056, including on possible approaches for coordinating and minimizing duplication between the information required to be reported and furnished by employers under § 6056 and information required to be reported and/or furnished by employers or other persons under other applicable Code provisions. For example, § 6056(d) permits the Secretary of the Treasury to provide, to the maximum extent feasible, that any return or statement required under § 6056 may be provided as part of a return or statement under § 6055 (relating to reporting by entities that provide minimum essential coverage) or § 6051 (relating to reporting by employers on the Form W-2, Wage and Tax Statement), and that an applicable large employer offering coverage of an issuer may agree with the issuer to include information under § 6056 with the return and statement required to be provided by the issuer under § 6055.

II. BACKGROUND

A. Reporting to the Service

Section 6056(a), effective for years beginning after December 31, 2013, directs every applicable large employer (within the meaning of § 4980H(c)(2)) that must meet the shared employer responsibility requirements of § 4980H during a calendar year to file a return with the Service that reports the terms and conditions of the health care coverage provided to the employer’s full-time employees for the year.

Section 6056(b) generally provides that the return used to satisfy the requirements under § 6056 must:

  • Include the name and Employer Identification Number (EIN) of the applicable large employer;

  • Include the date the return is filed;

  • Certify whether the applicable large employer offers its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan (as defined in § 5000A(f)(2)) and, if so, certify

    1. The duration of any waiting period (as defined in § 6056(b)(2)(C)) with respect to such coverage;

    2. The months during the calendar year when coverage under the plan was available;

    3. The monthly premium for the lowest cost option in each enrollment category under the plan; and

    4. The employer’s share of the total allowed costs of benefits provided under the plan.

  • Report the number of full-time employees for each month of the calendar year;

  • Report, for each full-time employee, the name, address, and taxpayer identification number (TIN) of the employee and the months (if any) during which the full-time employee (or any dependents) were covered under the eligible employer-sponsored plan; and

  • Include such other information as may be required by the Secretary of the Treasury.

B. Reporting to Employees

Section 6056(c) provides that, no later than January 31 following the calendar year referred to in § 6056(a) and (b), the applicable large employer will furnish to each full-time employee whose information is required to be reported to the Service under § 6056(b) a written statement that includes:

  • The applicable large employer’s name and address;

  • The applicable large employer’s contact information (including a contact phone number);

  • The information relating to coverage provided to that employee (and dependents) that is required to be reported on the § 6056 return.

Section 6056(e) generally permits governmental units or any agency or instrumentality thereof to designate a person to comply with the § 6056 reporting on behalf of the governmental unit, agency or instrumentality.

III. REQUEST FOR COMMENTS

Treasury and the Service anticipate proposing regulations under § 6056, and this notice requests comments on issues arising under § 6056 that would be helpful for the regulations to address, including how to coordinate and minimize duplication between the data employers must report under § 6056 and the data they must report under § 6055 (which provides for annual reporting by employers that sponsor self-insured plans) or other applicable Code or Affordable Care Act provisions. See Notice 2012-32, 2012-20 I.R.B. 910 (May 14, 2012).

Comments must be submitted by June 11, 2012. Comments should be submitted to Internal Revenue Service, CC:PA:LPD:RU (Notice 2012-33), Room 5203, PO Box 7604, Ben Franklin Station, Washington, DC 20224. Submissions may also be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to the Courier’s Desk, 1111 Constitution Avenue, NW, Washington, DC 20224, Attn: CC:PA:LPD:RU (Notice 2012-33), Room 5203. Submissions may also be sent electronically via the internet to the following e-mail address: Notice.Comments@irscounsel.treas.gov. Include the notice number (Notice 2012-33) in the subject line.

IV. DRAFTING INFORMATION

The principal author of this notice is R. Lisa Mojiri-Azad of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), though other Treasury Department and Service officials participated in its development. For further information on all other provisions of this notice, contact R. Lisa Mojiri-Azad at (202) 622-6080 (not a toll-free number).

Rev. Proc. 2012-24

Implementation of Nonresident Alien Deposit Interest Regulations

SECTION 1. PURPOSE

Sections 1.6049-4(b)(5) and 1.6049-8 of the Income Tax Regulations, as revised by T.D. 9584, require the reporting of certain deposit interest paid to nonresident alien individuals on or after January 1, 2013. The purpose of this revenue procedure is to list, in Section 3, the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of information within the meaning of section 6103(k)(4) pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate, as described in §1.6049-8(a). As discussed in the preamble to the regulations, even when such an agreement exists, the Internal Revenue Service (IRS) is not compelled to exchange information, including information collected pursuant to the regulations, if there is concern regarding the use of the information or other factors exist that would make exchange inappropriate. This revenue procedure also identifies in Section 4 the countries with which the Treasury Department and the IRS have determined that it is appropriate to have an automatic exchange relationship with respect to the information collected under the regulations. This revenue procedure will be updated as appropriate.

SECTION 2. BACKGROUND

The regulations provide that in the case of reportable interest aggregating $10 or more paid to a nonresident alien individual (as defined in section 7701(b)(1)(B) of the Internal Revenue Code), the payor shall make an information return on Form 1042-S for the calendar year in which the interest is paid. Reportable interest is interest described in section 871(i)(2)(A) that relates to a deposit maintained at an office within the United States, and that is paid to a nonresident alien individual who is a resident of a country identified, in an applicable revenue procedure (see §601.601(d)(2) of this chapter) as of December 31 prior to the calendar year in which the interest is paid, as a country with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of information within the meaning of section 6103(k)(4) pursuant to which United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate. This revenue procedure constitutes the revenue procedure referenced in §1.6049-8(a) and will be updated by subsequent revenue procedures as appropriate.

SECTION 3. COUNTRIES OF RESIDENCE WITH RESPECT TO WHICH THE REPORTING REQUIREMENT APPLIES

The following are countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4) pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate:

Antigua & Barbuda
Aruba
Australia
Austria
Azerbaijan
Bangladesh
Barbados
Belgium
Bermuda
British Virgin Islands
Bulgaria
Canada
China
Costa Rica
Cyprus
Czech Republic
Denmark
Dominica
Dominican Republic
Egypt
Estonia
Finland
France
Germany
Gibraltar
Greece
Grenada
Guernsey
Guyana
Honduras
Hungary
Iceland
India
Indonesia
Ireland
Isle of Man
Israel
Italy
Jamaica
Japan
Jersey
Kazakhstan
Korea (South)
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Marshall Islands
Mexico
Monaco
Morocco
Netherlands
Netherlands island territories: Bonaire, Curacao, Saba, St. Eustatius and St. Maarten (Dutch part)
New Zealand
Norway
Pakistan
Panama
Peru
Philippines
Poland
Portugal
Romania
Russian Federation
Slovak Rep.
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Thailand
Trinidad and Tobago
Tunisia
Turkey
Ukraine
United Kingdom
Venezuela

SECTION 4. COUNTRIES WITH WHICH TREASURY AND THE IRS HAVE DETERMINED THAT AUTOMATIC EXCHANGE OF DEPOSIT INTEREST INFORMATION IS APPROPRIATE

The following list identifies the countries with which the automatic exchange of the information collected under §§1.6049-4(b)(5) and 1.6049-8 has been determined by the Treasury Department and the IRS to be appropriate:

Canada

SECTION 5. EFFECTIVE DATE

This revenue procedure is effective for interest paid on or after January 1, 2013.

SECTION 6. DRAFTING INFORMATION

The principal author of this revenue procedure is Kathryn T. Holman of the Office of Chief Counsel International (International). For further information regarding this revenue procedure, contact Kathryn T. Holman at (202) 622-3840 (not a toll-free call).

Rev. Proc. 2012-25

SECTION 1. PURPOSE

This revenue procedure provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates, as defined in section 25(c), with (1) the nationwide average purchase price for residences located in the United States, and (2) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam.

SECTION 2. BACKGROUND

.01 Section 103(a) provides that, except as provided in section 103(b), gross income does not include interest on any state or local bond. Section 103(b)(1) provides that section 103(a) shall not apply to any private activity bond that is not a “qualified bond” within the meaning of section 141. Section 141(e) provides, in part, that the term “qualified bond” means any private activity bond if such bond (1) is a qualified mortgage bond under section 143, (2) meets the volume cap requirements under section 146, and (3) meets the applicable requirements under section 147.

.02 Section 143(a)(1) provides that the term “qualified mortgage bond” means a bond that is issued as part of a qualified mortgage issue. Section 143(a)(2)(A) provides that the term “qualified mortgage issue” means an issue of one or more bonds by a state or political subdivision thereof, but only if: (i) all proceeds of the issue (exclusive of issuance costs and a reasonably required reserve) are to be used to finance owner-occupied residences; (ii) the issue meets the requirements of subsections (c), (d), (e), (f), (g), (h), (i), and (m)(7) of section 143; (iii) the issue does not meet the private business tests of paragraphs (1) and (2) of section 141(b); and (iv) with respect to amounts received more than 10 years after the date of issuance, repayments of $250,000 or more of principal on mortgage financing provided by the issue are used by the close of the first semiannual period beginning after the date the prepayment (or complete repayment) is received to redeem bonds that are part of the issue.

Average Area Purchase Price

.03 Section 143(e)(1) provides that an issue of bonds meets the purchase price requirements of section 143(e) if the acquisition cost of each residence financed by the issue does not exceed 90 percent of the average area purchase price applicable to such residence. Section 143(e)(5) provides that, in the case of a targeted area residence (as defined in section 143(j)), section 143(e)(1) shall be applied by substituting 110 percent for 90 percent.

.04 Section 143(e)(2) provides that the term “average area purchase price” means, with respect to any residence, the average purchase price of single-family residences (in the statistical area in which the residence is located) that were purchased during the most recent 12-month period for which sufficient statistical information is available. Under sections 143(e)(3) and (4), respectively, separate determinations are to be made for new and existing residences, and for two-, three-, and four-family residences.

.05 Section 143(e)(2) provides that the determination of the average area purchase price for a statistical area shall be made as of the date on which the commitment to provide the financing is made or, if earlier, the date of the purchase of the residence.

.06 Section 143(k)(2)(A) provides that the term “statistical area” means (i) a metropolitan statistical area (MSA), and (ii) any county (or the portion thereof) that is not within an MSA. Section 143(k)(2)(C) further provides that if sufficient recent statistical information with respect to a county (or portion thereof) is unavailable, the Secretary may substitute another area for which there is sufficient recent statistical information for such county (or portion thereof). In the case of any portion of a State which is not within a county, section 143(k)(2)(D) provides that the Secretary may designate as a county any area that is the equivalent of a county. Section 6a.103A-1(b)(4)(i) of the Temporary Income Tax Regulations (issued under section 103A of the Internal Revenue Code of 1954, the predecessor of section 143) provides that the term “State” includes a possession of the United States and the District of Columbia.

.07 Section 6a.103A-2(f)(5)(i) provides that an issuer may rely upon the average area purchase price safe harbors published by the Department of the Treasury for the statistical area in which a residence is located. Section 6a.103A-2(f)(5)(i) further provides that an issuer may use an average area purchase price limitation different from the published safe harbor if the issuer has more accurate and comprehensive data for the statistical area.

Qualified Mortgage Credit Certificate Program

.08 Section 25(c) permits a state or political subdivision to establish a qualified mortgage credit certificate program. In general, a qualified mortgage credit certificate program is a program under which the issuing authority elects not to issue an amount of private activity bonds that it may otherwise issue during the calendar year under section 146, and in their place, issues mortgage credit certificates to taxpayers in connection with the acquisition of their principal residences. Section 25(a)(1) provides, in general, that the holder of a mortgage credit certificate may claim a federal income tax credit equal to the product of the credit rate specified in the certificate and the interest paid or accrued during the tax year on the remaining principal of the indebtedness incurred to acquire the residence. Section 25(c)(2)(A)(iii)(III) generally provides that residences acquired in connection with the issuance of mortgage credit certificates must meet the purchase price requirements of section 143(e).

Income Limitations for Qualified Mortgage Bonds and Mortgage Credit Certificates

.09 Section 143(f) imposes limitations on the income of mortgagors for whom financing may be provided by qualified mortgage bonds. In addition, section 25(c)(2)(A)(iii)(IV) provides that holders of mortgage credit certificates must meet the income requirement of section 143(f). Generally, under sections 143(f)(1) and 25(c)(2)(A)(iii)(IV), the income requirement is met only if all owner-financing under a qualified mortgage bond and all mortgage credit certificates issued under a qualified mortgage credit certificate program are provided to mortgagors whose family income is 115 percent or less of the applicable median family income. Section 143(f)(5), however, generally provides for an upward adjustment to the percentage limitation in high housing cost areas. High housing cost areas are defined in section 143(f)(5)(C) as any statistical area for which the housing cost/income ratio is greater than 1.2.

.10 Under section 143(f)(5)(D), the housing cost/income ratio with respect to any statistical area is determined by dividing (a) the applicable housing price ratio for such area by (b) the ratio that the area median gross income for such area bears to the median gross income for the United States. The applicable housing price ratio is the new housing price ratio (new housing average area purchase price divided by the new housing average purchase price for the United States) or the existing housing price ratio (existing housing average area purchase price divided by the existing housing average purchase price for the United States), whichever results in the housing cost/income ratio being closer to 1.

Average Area and Nationwide Purchase Price Limitations

.11 Average area purchase price safe harbors for each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam were last published in Rev. Proc. 2011-23, 2011-15 I.R.B. 626.

.12 The nationwide average purchase price limitation was last published in section 4.02 of Rev. Proc. 2011-23. Guidance with respect to the United States and area median gross income figures that are to be used in computing the housing cost/income ratio described in section 143(f)(5) was last published in Rev. Proc. 2012-16, 2012-10 I.R.B. 452.

.13 This revenue procedure uses FHA loan limits for a given statistical area to calculate the average area purchase price safe harbor for that area. FHA sets limits on the dollar value of loans it will insure based on median home prices and conforming loan limits established by the Federal Home Loan Mortgage Corporation. In particular, FHA sets an area’s loan limit at 95 percent of the median home sales price for the area, subject to certain floors and caps measured against conforming loan limits.

.14 To calculate the average area purchase price safe harbors in this revenue procedure, the FHA loan limits are adjusted to take into account the differences between average and median purchase prices. Because FHA loan limits do not differentiate between new and existing residences, this revenue procedure contains a single average area purchase price safe harbor for both new and existing residences in a statistical area. The Treasury Department and the Internal Revenue Service have determined that FHA loan limits provide a reasonable basis for determining average area purchase price safe harbors. If the Treasury Department and the Internal Revenue Service become aware of other sources of average purchase price data, including data that differentiate between new and existing residences, consideration will be given as to whether such data provide a more accurate method for calculating average area purchase price safe harbors.

.15 The average area purchase price safe harbors listed in section 4.01 of this revenue procedure are based on FHA loan limits released December 02, 2011. FHA loan limits are available for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam. See section 3.03 of this revenue procedure with respect to FHA loan limits revised after December 02, 2011.

.16 OMB Bulletin No. 03-04, dated and effective June 6, 2003, revised the definitions of the nation’s metropolitan areas and recognized 49 new metropolitan statistical areas. The OMB bulletin no longer includes primary metropolitan statistical areas.

SECTION 3. APPLICATION

Average Area Purchase Price Safe Harbors

.01 Average area purchase price safe harbors for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam are set forth in section 4.01 of this revenue procedure. Average area purchase price safe harbors are provided for single-family and two to four-family residences. For each type of residence, section 4.01 of this revenue procedure contains a single safe harbor that may be used for both new and existing residences. Issuers of qualified mortgage bonds and issuers of mortgage credit certificates may rely on these safe harbors to satisfy the requirements of sections 143(e) and (f). Section 4.01 of this revenue procedure provides safe harbors for MSAs and for certain counties and county equivalents. If no purchase price safe harbor is available for a statistical area, the safe harbor for “ALL OTHER AREAS” may be used for that statistical area.

.02 If a residence is in an MSA, the safe harbor applicable to it is the limitation of that MSA. If an MSA falls in more than one state, the MSA is listed in section 4.01 of this revenue procedure under each state.

.03 If the FHA revises the FHA loan limit for any statistical area after December 02, 2011, an issuer of qualified mortgage bonds or mortgage credit certificates may use the revised FHA loan limit for that statistical area to compute (as provided in the next sentence) a revised average area purchase price safe harbor for the statistical area provided that the issuer maintains records evidencing the revised FHA loan limit. The revised average area purchase price safe harbor for that statistical area is computed by dividing the revised FHA loan limit by .975.

.04 If, pursuant to section 6a.103A-2(f)(5)(i), an issuer uses more accurate and comprehensive data to determine the average area purchase price for a statistical area, the issuer must make separate average area purchase price determinations for new and existing residences. Moreover, when computing the average area purchase price for a statistical area that is an MSA, as defined in OMB Bulletin No. 03-04, the issuer must make the computation for the entire applicable MSA. When computing the average area purchase price for a statistical area that is not an MSA, the issuer must make the computation for the entire statistical area and may not combine statistical areas. Thus, for example, the issuer may not combine two or more counties.

.05 If an issuer receives a ruling permitting it to rely on an average area purchase price limitation that is higher than the applicable safe harbor in this revenue procedure, the issuer may rely on that higher limitation for the purpose of satisfying the requirements of section 143(e) and (f) for bonds sold, and mortgage credit certificates issued, not more than 30 months following the termination date of the 12-month period used by the issuer to compute the limitation.

Nationwide Average Purchase Price

.06 Section 4.02 of this revenue procedure sets forth a single nationwide average purchase price for purposes of computing the housing cost/income ratio under section 143(f)(5).

.07 Issuers must use the nationwide average purchase price set forth in section 4.02 of this revenue procedure when computing the housing cost/income ratio under section 143(f)(5) regardless of whether they are relying on the average area purchase price safe harbors contained in this revenue procedure or using more accurate and comprehensive data to determine average area purchase prices for new and existing residences for a statistical area that are different from the published safe harbors in this revenue procedure.

.08 If, pursuant to section 6.02 of this revenue procedure, an issuer relies on the average area purchase price safe harbors contained in Rev. Proc. 2011-23, the issuer must use the nationwide average purchase price set forth in section 4.02 of Rev. Proc. 2011-23 in computing the housing cost/income ratio under section 143(f)(5). Likewise, if, pursuant to section 6.05 of this revenue procedure, an issuer relies on the nationwide average purchase price published in Rev. Proc. 2011-23, the issuer may not rely on the average area purchase price safe harbors published in this revenue procedure.

SECTION 4. AVERAGE AREA AND NATIONWIDE AVERAGE PURCHASE PRICES

.01 Average area purchase prices for single-family and two to four-family residences in MSAs, and for certain counties and county equivalents are set forth below. The safe harbor for “ALL OTHER AREAS” (found at the end of the table below) may be used for a statistical area that is not listed below.

2012 Average Area Purchase Prices for Mortgage Revenue Bonds
County Name State One-Unit Limit Two-Unit Limit Three-Unit Limit Four-Unit Limit
ALEUTIANS WEST AK $365,641 $468,051 $565,795 $703,128
ANCHORAGE AK $356,410 $456,256 $551,538 $685,385
BRISTOL BAY AK $300,769 $385,026 $465,385 $578,410
DENALI AK $324,359 $415,231 $501,897 $623,744
DILLINGHAM AK $341,026 $436,564 $527,692 $655,795
FAIRBANKS NORTH AK $324,359 $415,231 $501,897 $623,744
JUNEAU AK $408,974 $523,538 $632,872 $786,513
KETCHIKAN GATEW AK $330,256 $422,769 $511,026 $635,128
KODIAK ISLAND AK $343,231 $439,385 $531,128 $660,051
MATANUSKA-SUSIT AK $356,410 $456,256 $551,538 $685,385
NOME AK $281,897 $360,872 $436,205 $542,103
NORTH SLOPE AK $314,923 $403,128 $487,333 $605,641
PETERSBURG CENS AK $297,231 $380,513 $459,949 $571,590
SITKA AK $442,308 $566,205 $684,462 $850,615
VALDEZ-CORDOVA AK $278,359 $356,359 $430,718 $535,282
YAKUTAT CITY AK $398,667 $510,359 $616,923 $766,667
BALDWIN AL $292,308 $374,205 $452,308 $562,103
RUSSELL AL $297,231 $380,513 $459,949 $571,590
APACHE AZ $288,462 $369,282 $446,359 $554,718
COCONINO AZ $461,538 $590,821 $714,205 $887,590
GILA AZ $333,333 $426,718 $515,795 $641,026
MARICOPA AZ $355,128 $454,615 $549,538 $682,923
MOHAVE AZ $330,769 $423,436 $511,846 $636,103
NAVAJO AZ $316,667 $405,385 $490,000 $608,974
PIMA AZ $324,359 $415,231 $501,897 $623,744
PINAL AZ $355,128 $454,615 $549,538 $682,923
YAVAPAI AZ $400,000 $512,051 $618,974 $769,231
ALAMEDA CA $748,462 $958,154 $1,158,205 $1,439,385
ALPINE CA $561,538 $718,872 $868,923 $1,079,897
AMADOR CA $455,128 $582,615 $704,256 $875,231
BUTTE CA $410,256 $525,179 $634,821 $788,974
CALAVERAS CA $474,359 $607,231 $734,051 $912,256
COLUSA CA $407,692 $521,897 $630,872 $784,000
CONTRA COSTA CA $748,462 $958,154 $1,158,205 $1,439,385
DEL NORTE CA $319,231 $408,667 $494,000 $613,897
EL DORADO CA $594,872 $761,538 $920,513 $1,144,000
FRESNO CA $391,026 $500,564 $605,077 $751,949
GLENN CA $294,872 $377,487 $456,308 $567,077
HUMBOLDT CA $403,846 $516,974 $624,923 $776,615
IMPERIAL CA $333,333 $426,718 $515,795 $641,026
INYO CA $448,718 $574,410 $694,359 $862,923
KERN CA $378,205 $484,154 $585,231 $727,333
KINGS CA $333,333 $426,718 $515,795 $641,026
LAKE CA $411,538 $526,821 $636,821 $791,436
LASSEN CA $292,308 $374,205 $452,308 $562,103
LOS ANGELES CA $748,462 $958,154 $1,158,205 $1,439,385
MADERA CA $435,897 $558,000 $674,513 $838,256
MARIN CA $748,462 $958,154 $1,158,205 $1,439,385
MARIPOSA CA $423,077 $541,590 $654,667 $813,590
MENDOCINO CA $525,641 $672,923 $813,385 $1,010,872
MERCED CA $484,615 $620,410 $749,897 $931,949
MONO CA $542,564 $694,564 $839,590 $1,043,385
MONTEREY CA $748,462 $958,154 $1,158,205 $1,439,385
NAPA CA $748,462 $958,154 $1,158,205 $1,439,385
NEVADA CA $576,923 $738,564 $892,769 $1,109,487
ORANGE CA $748,462 $958,154 $1,158,205 $1,439,385
PLACER CA $594,872 $761,538 $920,513 $1,144,000
PLUMAS CA $420,513 $538,308 $650,718 $808,667
RIVERSIDE CA $512,821 $656,513 $793,538 $986,205
SACRAMENTO CA $594,872 $761,538 $920,513 $1,144,000
SAN BENITO CA $748,462 $958,154 $1,158,205 $1,439,385
SAN BERNARDINO CA $512,821 $656,513 $793,538 $986,205
SAN DIEGO CA $715,385 $915,846 $1,107,026 $1,375,744
SAN FRANCISCO CA $748,462 $958,154 $1,158,205 $1,439,385
SAN JOAQUIN CA $501,282 $641,744 $775,692 $964,000
SAN LUIS OBISPO CA $705,128 $902,667 $1,091,128 $1,356,051
SAN MATEO CA $748,462 $958,154 $1,158,205 $1,439,385
SANTA BARBARA CA $748,462 $958,154 $1,158,205 $1,439,385
SANTA CLARA CA $748,462 $958,154 $1,158,205 $1,439,385
SANTA CRUZ CA $748,462 $958,154 $1,158,205 $1,439,385
SHASTA CA $434,615 $556,359 $672,513 $835,795
SIERRA CA $312,564 $400,103 $483,641 $601,077
SISKIYOU CA $301,282 $385,692 $466,205 $579,385
SOLANO CA $571,795 $732,000 $884,821 $1,099,641
SONOMA CA $679,487 $869,846 $1,051,487 $1,306,718
STANISLAUS CA $434,615 $556,359 $672,513 $835,795
SUTTER CA $435,897 $558,000 $674,513 $838,256
TEHAMA CA $320,513 $410,308 $495,949 $616,359
TULARE CA $333,333 $426,718 $515,795 $641,026
TUOLUMNE CA $448,718 $574,410 $694,359 $862,923
VENTURA CA $748,462 $958,154 $1,158,205 $1,439,385
YOLO CA $594,872 $761,538 $920,513 $1,144,000
YUBA CA $435,897 $558,000 $674,513 $838,256
ADAMS CO $416,667 $533,385 $644,769 $801,282
ARAPAHOE CO $416,667 $533,385 $644,769 $801,282
ARCHULETA CO $325,641 $416,872 $503,897 $626,205
BOULDER CO $471,795 $603,949 $730,051 $907,282
BROOMFIELD CO $416,667 $533,385 $644,769 $801,282
CHAFFEE CO $287,179 $367,641 $444,359 $552,256
CLEAR CREEK CO $416,667 $533,385 $644,769 $801,282
DENVER CO $416,667 $533,385 $644,769 $801,282
DOUGLAS CO $416,667 $533,385 $644,769 $801,282
EAGLE CO $748,462 $958,154 $1,158,205 $1,439,385
ELBERT CO $416,667 $533,385 $644,769 $801,282
EL PASO CO $333,333 $426,718 $515,795 $641,026
GARFIELD CO $435,897 $558,000 $674,513 $838,256
GILPIN CO $416,667 $533,385 $644,769 $801,282
GRAND CO $365,385 $467,744 $565,385 $702,667
GUNNISON CO $444,872 $569,487 $688,410 $855,538
HINSDALE CO $571,795 $732,000 $884,821 $1,099,641
JEFFERSON CO $416,667 $533,385 $644,769 $801,282
LAKE CO $748,462 $958,154 $1,158,205 $1,439,385
LA PLATA CO $455,128 $582,615 $704,256 $875,231
LARIMER CO $320,513 $410,308 $495,949 $616,359
MESA CO $380,769 $487,436 $589,231 $732,256
MINERAL CO $307,692 $393,897 $476,103 $591,692
OURAY CO $494,872 $633,538 $765,795 $951,692
PARK CO $416,667 $533,385 $644,769 $801,282
PITKIN CO $748,462 $958,154 $1,158,205 $1,439,385
ROUTT CO $692,308 $886,256 $1,071,333 $1,331,385
SAN JUAN CO $435,897 $558,000 $674,513 $838,256
SAN MIGUEL CO $667,949 $855,077 $1,033,590 $1,284,513
SUMMIT CO $748,462 $958,154 $1,158,205 $1,439,385
TELLER CO $333,333 $426,718 $515,795 $641,026
WELD CO $428,205 $548,154 $662,615 $823,487
FAIRFIELD CT $726,923 $930,615 $1,124,872 $1,397,949
HARTFORD CT $451,282 $577,692 $698,308 $867,846
LITCHFIELD CT $384,615 $492,359 $595,179 $739,641
MIDDLESEX CT $451,282 $577,692 $698,308 $867,846
NEW HAVEN CT $397,436 $508,769 $614,974 $764,308
NEW LONDON CT $408,974 $523,538 $632,872 $786,513
TOLLAND CT $451,282 $577,692 $698,308 $867,846
WINDHAM CT $279,487 $357,795 $432,462 $537,487
DISTRICT OF COL DC $748,462 $958,154 $1,158,205 $1,439,385
KENT DE $385,897 $494,000 $597,128 $742,103
NEW CASTLE DE $430,769 $551,436 $666,564 $828,410
SUSSEX DE $384,615 $492,359 $595,179 $739,641
BAKER FL $397,436 $508,769 $614,974 $764,308
BAY FL $406,410 $520,256 $628,872 $781,538
BREVARD FL $298,718 $382,410 $462,256 $574,462
BROWARD FL $434,615 $556,359 $672,513 $835,795
CHARLOTTE FL $303,846 $388,974 $470,154 $584,308
CLAY FL $397,436 $508,769 $614,974 $764,308
COLLIER FL $544,872 $697,538 $843,128 $1,047,846
DUVAL FL $397,436 $508,769 $614,974 $764,308
FLAGLER FL $294,872 $377,487 $456,308 $567,077
FRANKLIN FL $312,821 $400,462 $484,051 $601,590
HERNANDO FL $300,000 $384,051 $464,205 $576,923
HILLSBOROUGH FL $300,000 $384,051 $464,205 $576,923
INDIAN RIVER FL $291,026 $372,564 $450,308 $559,641
LAKE FL $362,821 $464,462 $561,436 $697,744
LEE FL $365,385 $467,744 $565,385 $702,667
MANATEE FL $453,846 $580,974 $702,308 $872,769
MARTIN FL $384,615 $492,359 $595,179 $739,641
MIAMI-DADE FL $434,615 $556,359 $672,513 $835,795
MONROE FL $748,462 $958,154 $1,158,205 $1,439,385
NASSAU FL $397,436 $508,769 $614,974 $764,308
OKALOOSA FL $320,513 $410,308 $495,949 $616,359
ORANGE FL $362,821 $464,462 $561,436 $697,744
OSCEOLA FL $362,821 $464,462 $561,436 $697,744
PALM BEACH FL $434,615 $556,359 $672,513 $835,795
PASCO FL $300,000 $384,051 $464,205 $576,923
PINELLAS FL $300,000 $384,051 $464,205 $576,923
ST. JOHNS FL $397,436 $508,769 $614,974 $764,308
ST. LUCIE FL $384,615 $492,359 $595,179 $739,641
SARASOTA FL $453,846 $580,974 $702,308 $872,769
SEMINOLE FL $362,821 $464,462 $561,436 $697,744
SUMTER FL $285,897 $366,000 $442,410 $549,795
VOLUSIA FL $311,538 $398,821 $482,051 $599,128
WALTON FL $372,092 $476,308 $575,795 $715,538
BARROW GA $355,128 $454,615 $549,538 $682,923
BARTOW GA $355,128 $454,615 $549,538 $682,923
BRANTLEY GA $283,333 $362,718 $438,410 $544,872
BUTTS GA $355,128 $454,615 $549,538 $682,923
CARROLL GA $355,128 $454,615 $549,538 $682,923
CHATTAHOOCHEE GA $297,231 $380,513 $459,949 $571,590
CHEROKEE GA $355,128 $454,615 $549,538 $682,923
CLARKE GA $306,410 $392,256 $474,154 $589,231
CLAYTON GA $355,128 $454,615 $549,538 $682,923
COBB GA $355,128 $454,615 $549,538 $682,923
COWETA GA $355,128 $454,615 $549,538 $682,923
DAWSON GA $355,128 $454,615 $549,538 $682,923
DEKALB GA $355,128 $454,615 $549,538 $682,923
DOUGLAS GA $355,128 $454,615 $549,538 $682,923
FAYETTE GA $355,128 $454,615 $549,538 $682,923
FORSYTH GA $355,128 $454,615 $549,538 $682,923
FULTON GA $355,128 $454,615 $549,538 $682,923
GLYNN GA $283,333 $362,718 $438,410 $544,872
GREENE GA $679,487 $869,846 $1,051,487 $1,306,718
GWINNETT GA $355,128 $454,615 $549,538 $682,923
HARALSON GA $355,128 $454,615 $549,538 $682,923
HARRIS GA $297,231 $380,513 $459,949 $571,590
HEARD GA $355,128 $454,615 $549,538 $682,923
HENRY GA $355,128 $454,615 $549,538 $682,923
JASPER GA $355,128 $454,615 $549,538 $682,923
LAMAR GA $355,128 $454,615 $549,538 $682,923
MCINTOSH GA $283,333 $362,718 $438,410 $544,872
MADISON GA $306,410 $392,256 $474,154 $589,231
MARION GA $297,231 $380,513 $459,949 $571,590
MERIWETHER GA $355,128 $454,615 $549,538 $682,923
MUSCOGEE GA $297,231 $380,513 $459,949 $571,590
NEWTON GA $355,128 $454,615 $549,538 $682,923
OCONEE GA $306,410 $392,256 $474,154 $589,231
OGLETHORPE GA $306,410 $392,256 $474,154 $589,231
PAULDING GA $355,128 $454,615 $549,538 $682,923
PICKENS GA $355,128 $454,615 $549,538 $682,923
PIKE GA $355,128 $454,615 $549,538 $682,923
ROCKDALE GA $355,128 $454,615 $549,538 $682,923
SPALDING GA $355,128 $454,615 $549,538 $682,923
WALTON GA $355,128 $454,615 $549,538 $682,923
HAWAII HI $634,615 $812,410 $982,051 $1,220,410
HONOLULU HI $814,103 $1,042,205 $1,259,795 $1,565,590
KALAWAO HI $734,615 $940,462 $1,136,769 $1,412,769
KAUAI HI $793,590 $1,015,949 $1,228,051 $1,526,154
MAUI HI $810,256 $1,037,282 $1,253,846 $1,558,205
ADA ID $311,538 $398,821 $482,051 $599,128
ADAMS ID $280,769 $359,436 $434,462 $539,949
BLAINE ID $748,462 $958,154 $1,158,205 $1,439,385
BOISE ID $311,538 $398,821 $482,051 $599,128
CANYON ID $311,538 $398,821 $482,051 $599,128
GEM ID $311,538 $398,821 $482,051 $599,128
KOOTENAI ID $293,590 $375,846 $454,308 $564,564
OWYHEE ID $311,538 $398,821 $482,051 $599,128
TETON ID $711,538 $910,872 $1,101,077 $1,368,359
VALLEY ID $474,359 $607,231 $734,051 $912,256
BOND IL $288,462 $369,282 $446,359 $554,718
BOONE IL $347,949 $445,436 $538,410 $669,128
CALHOUN IL $288,462 $369,282 $446,359 $554,718
CLINTON IL $288,462 $369,282 $446,359 $554,718
COOK IL $420,513 $538,308 $650,718 $808,667
DEKALB IL $420,513 $538,308 $650,718 $808,667
DUPAGE IL $420,513 $538,308 $650,718 $808,667
GRUNDY IL $420,513 $538,308 $650,718 $808,667
JERSEY IL $288,462 $369,282 $446,359 $554,718
KANE IL $420,513 $538,308 $650,718 $808,667
KENDALL IL $420,513 $538,308 $650,718 $808,667
LAKE IL $420,513 $538,308 $650,718 $808,667
MCHENRY IL $420,513 $538,308 $650,718 $808,667
MACOUPIN IL $288,462 $369,282 $446,359 $554,718
MADISON IL $288,462 $369,282 $446,359 $554,718
MONROE IL $288,462 $369,282 $446,359 $554,718
ST. CLAIR IL $288,462 $369,282 $446,359 $554,718
WILL IL $420,513 $538,308 $650,718 $808,667
WINNEBAGO IL $347,949 $445,436 $538,410 $669,128
CLARK IN $310,256 $397,179 $480,103 $596,667
DEARBORN IN $346,154 $443,128 $535,641 $665,692
FLOYD IN $310,256 $397,179 $480,103 $596,667
FRANKLIN IN $346,154 $443,128 $535,641 $665,692
HARRISON IN $310,256 $397,179 $480,103 $596,667
JASPER IN $420,513 $538,308 $650,718 $808,667
LAKE IN $420,513 $538,308 $650,718 $808,667
NEWTON IN $420,513 $538,308 $650,718 $808,667
OHIO IN $346,154 $443,128 $535,641 $665,692
PORTER IN $420,513 $538,308 $650,718 $808,667
WASHINGTON IN $310,256 $397,179 $480,103 $596,667
BOONE KY $346,154 $443,128 $535,641 $665,692
BRACKEN KY $346,154 $443,128 $535,641 $665,692
BULLITT KY $310,256 $397,179 $480,103 $596,667
CAMPBELL KY $346,154 $443,128 $535,641 $665,692
GALLATIN KY $346,154 $443,128 $535,641 $665,692
GRANT KY $346,154 $443,128 $535,641 $665,692
HENRY KY $310,256 $397,179 $480,103 $596,667
JEFFERSON KY $310,256 $397,179 $480,103 $596,667
KENTON KY $346,154 $443,128 $535,641 $665,692
MEADE KY $310,256 $397,179 $480,103 $596,667
NELSON KY $310,256 $397,179 $480,103 $596,667
OLDHAM KY $310,256 $397,179 $480,103 $596,667
PENDLETON KY $346,154 $443,128 $535,641 $665,692
SHELBY KY $310,256 $397,179 $480,103 $596,667
SPENCER KY $310,256 $397,179 $480,103 $596,667
TRIMBLE KY $310,256 $397,179 $480,103 $596,667
ASCENSION LA $287,179 $367,641 $444,359 $552,256
EAST BATON ROUG LA $287,179 $367,641 $444,359 $552,256
EAST FELICIANA LA $287,179 $367,641 $444,359 $552,256
IBERVILLE LA $287,179 $367,641 $444,359 $552,256
JEFFERSON LA $294,872 $377,487 $456,308 $567,077
LIVINGSTON LA $287,179 $367,641 $444,359 $552,256
ORLEANS LA $294,872 $377,487 $456,308 $567,077
PLAQUEMINES LA $294,872 $377,487 $456,308 $567,077
POINTE COUPEE LA $287,179 $367,641 $444,359 $552,256
ST. BERNARD LA $294,872 $377,487 $456,308 $567,077
ST. CHARLES LA $294,872 $377,487 $456,308 $567,077
ST. HELENA LA $287,179 $367,641 $444,359 $552,256
ST. JOHN THE BA LA $294,872 $377,487 $456,308 $567,077
ST. TAMMANY LA $294,872 $377,487 $456,308 $567,077
WEST BATON ROUG LA $287,179 $367,641 $444,359 $552,256
WEST FELICIANA LA $287,179 $367,641 $444,359 $552,256
BARNSTABLE MA $474,359 $607,231 $734,051 $912,256
BRISTOL MA $487,179 $623,692 $753,897 $936,872
DUKES MA $748,462 $958,154 $1,158,205 $1,439,385
ESSEX MA $537,179 $687,692 $831,231 $1,033,026
FRANKLIN MA $326,923 $418,513 $505,897 $628,718
HAMPDEN MA $326,923 $418,513 $505,897 $628,718
HAMPSHIRE MA $326,923 $418,513 $505,897 $628,718
MIDDLESEX MA $537,179 $687,692 $831,231 $1,033,026
NANTUCKET MA $748,462 $958,154 $1,158,205 $1,439,385
NORFOLK MA $537,179 $687,692 $831,231 $1,033,026
PLYMOUTH MA $537,179 $687,692 $831,231 $1,033,026
SUFFOLK MA $537,179 $687,692 $831,231 $1,033,026
WORCESTER MA $394,872 $505,487 $611,026 $759,385
ANNE ARUNDEL MD $574,359 $735,282 $888,769 $1,104,564
BALTIMORE MD $574,359 $735,282 $888,769 $1,104,564
CALVERT MD $748,462 $958,154 $1,158,205 $1,439,385
CARROLL MD $574,359 $735,282 $888,769 $1,104,564
CECIL MD $430,769 $551,436 $666,564 $828,410
CHARLES MD $748,462 $958,154 $1,158,205 $1,439,385
FREDERICK MD $748,462 $958,154 $1,158,205 $1,439,385
GARRETT MD $448,718 $574,410 $694,359 $862,923
HARFORD MD $574,359 $735,282 $888,769 $1,104,564
HOWARD MD $574,359 $735,282 $888,769 $1,104,564
KENT MD $352,564 $451,333 $545,538 $678,000
MONTGOMERY MD $748,462 $958,154 $1,158,205 $1,439,385
PRINCE GEORGE’S MD $748,462 $958,154 $1,158,205 $1,439,385
QUEEN ANNE’S MD $574,359 $735,282 $888,769 $1,104,564
ST. MARY’S MD $410,256 $525,179 $634,821 $788,974
SOMERSET MD $337,179 $431,641 $521,744 $648,410
TALBOT MD $455,128 $582,615 $704,256 $875,231
WASHINGTON MD $387,179 $495,641 $599,128 $744,564
WICOMICO MD $337,179 $431,641 $521,744 $648,410
WORCESTER MD $448,718 $574,410 $694,359 $862,923
BALTIMORE CITY MD $574,359 $735,282 $888,769 $1,104,564
CUMBERLAND ME $346,154 $443,128 $535,641 $665,692
HANCOCK ME $279,487 $357,795 $432,462 $537,487
KNOX ME $286,615 $366,923 $443,487 $551,179
LINCOLN ME $326,923 $418,513 $505,897 $628,718
SAGADAHOC ME $346,154 $443,128 $535,641 $665,692
YORK ME $346,154 $443,128 $535,641 $665,692
BERRIEN MI $306,410 $392,256 $474,154 $589,231
KALAMAZOO MI $293,590 $375,846 $454,308 $564,564
LAPEER MI $305,128 $390,615 $472,154 $586,769
LENAWEE MI $305,128 $390,615 $472,154 $586,769
LIVINGSTON MI $305,128 $390,615 $472,154 $586,769
MACOMB MI $305,128 $390,615 $472,154 $586,769
MONROE MI $305,128 $390,615 $472,154 $586,769
OAKLAND MI $305,128 $390,615 $472,154 $586,769
ST. CLAIR MI $305,128 $390,615 $472,154 $586,769
VAN BUREN MI $293,590 $375,846 $454,308 $564,564
WASHTENAW MI $353,846 $452,974 $547,538 $680,462
WAYNE MI $305,128 $390,615 $472,154 $586,769
ANOKA MN $374,359 $479,231 $579,282 $719,897
CARVER MN $374,359 $479,231 $579,282 $719,897
CHISAGO MN $374,359 $479,231 $579,282 $719,897
COOK MN $303,846 $388,974 $470,154 $584,308
DAKOTA MN $374,359 $479,231 $579,282 $719,897
HENNEPIN MN $374,359 $479,231 $579,282 $719,897
ISANTI MN $374,359 $479,231 $579,282 $719,897
RAMSEY MN $374,359 $479,231 $579,282 $719,897
SCOTT MN $374,359 $479,231 $579,282 $719,897
SHERBURNE MN $374,359 $479,231 $579,282 $719,897
WASHINGTON MN $374,359 $479,231 $579,282 $719,897
WRIGHT MN $374,359 $479,231 $579,282 $719,897
CRAWFORD MO $288,462 $369,282 $446,359 $554,718
FRANKLIN MO $288,462 $369,282 $446,359 $554,718
JEFFERSON MO $288,462 $369,282 $446,359 $554,718
LINCOLN MO $288,462 $369,282 $446,359 $554,718
ST. CHARLES MO $288,462 $369,282 $446,359 $554,718
ST. LOUIS MO $288,462 $369,282 $446,359 $554,718
WARREN MO $288,462 $369,282 $446,359 $554,718
WASHINGTON MO $288,462 $369,282 $446,359 $554,718
ST. LOUIS CITY MO $288,462 $369,282 $446,359 $554,718
CARBON MT $298,718 $382,410 $462,256 $574,462
FLATHEAD MT $309,026 $395,590 $478,205 $594,256
GALLATIN MT $396,154 $507,128 $613,026 $761,846
JEFFERSON MT $350,000 $448,051 $541,590 $673,077
LAKE MT $308,974 $395,538 $478,103 $594,154
LEWIS AND CLARK MT $350,000 $448,051 $541,590 $673,077
MADISON MT $288,974 $369,949 $447,179 $555,692
MISSOULA MT $298,718 $382,410 $462,256 $574,462
RAVALLI MT $311,538 $398,821 $482,051 $599,128
SWEET GRASS MT $355,128 $454,615 $549,538 $682,923
YELLOWSTONE MT $298,718 $382,410 $462,256 $574,462
ANSON NC $311,538 $398,821 $482,051 $599,128
BRUNSWICK NC $311,538 $398,821 $482,051 $599,128
BUNCOMBE NC $311,538 $398,821 $482,051 $599,128
CABARRUS NC $311,538 $398,821 $482,051 $599,128
CAMDEN NC $748,462 $958,154 $1,158,205 $1,439,385
CARTERET NC $294,872 $377,487 $456,308 $567,077
CHATHAM NC $343,231 $439,385 $531,128 $660,051
CURRITUCK NC $470,615 $602,462 $728,256 $905,026
DARE NC $471,795 $603,949 $730,051 $907,282
DURHAM NC $343,231 $439,385 $531,128 $660,051
FRANKLIN NC $302,564 $387,333 $468,205 $581,846
GASTON NC $311,538 $398,821 $482,051 $599,128
HAYWOOD NC $311,538 $398,821 $482,051 $599,128
HENDERSON NC $311,538 $398,821 $482,051 $599,128
HYDE NC $495,385 $634,154 $766,564 $952,667
JOHNSTON NC $302,564 $387,333 $468,205 $581,846
MADISON NC $311,538 $398,821 $482,051 $599,128
MECKLENBURG NC $311,538 $398,821 $482,051 $599,128
NEW HANOVER NC $311,538 $398,821 $482,051 $599,128
ONSLOW NC $314,103 $402,103 $486,051 $604,051
ORANGE NC $343,231 $439,385 $531,128 $660,051
PASQUOTANK NC $748,462 $958,154 $1,158,205 $1,439,385
PENDER NC $311,538 $398,821 $482,051 $599,128
PERQUIMANS NC $748,462 $958,154 $1,158,205 $1,439,385
PERSON NC $343,231 $439,385 $531,128 $660,051
TRANSYLVANIA NC $301,282 $385,692 $466,205 $579,385
UNION NC $311,538 $398,821 $482,051 $599,128
WAKE NC $302,564 $387,333 $468,205 $581,846
WATAUGA NC $292,308 $374,205 $452,308 $562,103
BILLINGS ND $312,564 $400,103 $483,641 $601,077
STARK ND $312,564 $400,103 $483,641 $601,077
BELKNAP NH $288,462 $369,282 $446,359 $554,718
GRAFTON NH $288,462 $369,282 $446,359 $554,718
HILLSBOROUGH NH $412,821 $528,462 $638,821 $793,897
MERRIMACK NH $310,256 $397,179 $480,103 $596,667
ROCKINGHAM NH $537,179 $687,692 $831,231 $1,033,026
STRAFFORD NH $537,179 $687,692 $831,231 $1,033,026
ATLANTIC NJ $465,385 $595,744 $720,154 $894,974
BERGEN NJ $748,462 $958,154 $1,158,205 $1,439,385
BURLINGTON NJ $430,769 $551,436 $666,564 $828,410
CAMDEN NJ $430,769 $551,436 $666,564 $828,410
CAPE MAY NJ $500,000 $640,103 $773,692 $961,538
CUMBERLAND NJ $415,385 $531,744 $642,769 $798,821
ESSEX NJ $748,462 $958,154 $1,158,205 $1,439,385
GLOUCESTER NJ $430,769 $551,436 $666,564 $828,410
HUDSON NJ $748,462 $958,154 $1,158,205 $1,439,385
HUNTERDON NJ $748,462 $958,154 $1,158,205 $1,439,385
MERCER NJ $451,282 $577,692 $698,308 $867,846
MIDDLESEX NJ $748,462 $958,154 $1,158,205 $1,439,385
MONMOUTH NJ $748,462 $958,154 $1,158,205 $1,439,385
MORRIS NJ $748,462 $958,154 $1,158,205 $1,439,385
OCEAN NJ $748,462 $958,154 $1,158,205 $1,439,385
PASSAIC NJ $748,462 $958,154 $1,158,205 $1,439,385
SALEM NJ $430,769 $551,436 $666,564 $828,410
SOMERSET NJ $748,462 $958,154 $1,158,205 $1,439,385
SUSSEX NJ $748,462 $958,154 $1,158,205 $1,439,385
UNION NJ $748,462 $958,154 $1,158,205 $1,439,385
WARREN NJ $412,821 $528,462 $638,821 $793,897
LOS ALAMOS NM $390,410 $499,795 $604,103 $750,769
SAN JUAN NM $288,462 $369,282 $446,359 $554,718
SANTA FE NM $438,462 $561,282 $678,462 $843,179
TAOS NM $293,692 $375,949 $454,462 $564,769
CLARK NV $410,256 $525,179 $634,821 $788,974
DOUGLAS NV $480,769 $615,487 $743,949 $924,564
ELKO NV $333,333 $426,718 $515,795 $641,026
EUREKA NV $333,333 $426,718 $515,795 $641,026
LYON NV $339,744 $434,923 $525,744 $653,333
NYE NV $333,333 $426,718 $515,795 $641,026
STOREY NV $414,103 $530,103 $640,769 $796,359
WASHOE NV $414,103 $530,103 $640,769 $796,359
CARSON CITY NV $408,974 $523,538 $632,872 $786,513
ALBANY NY $320,513 $410,308 $495,949 $616,359
BRONX NY $748,462 $958,154 $1,158,205 $1,439,385
COLUMBIA NY $283,333 $362,718 $438,410 $544,872
DUTCHESS NY $455,128 $582,615 $704,256 $875,231
ERIE NY $283,333 $362,718 $438,410 $544,872
KINGS NY $748,462 $958,154 $1,158,205 $1,439,385
MADISON NY $288,462 $369,282 $446,359 $554,718
NASSAU NY $748,462 $958,154 $1,158,205 $1,439,385
NEW YORK NY $748,462 $958,154 $1,158,205 $1,439,385
NIAGARA NY $283,333 $362,718 $438,410 $544,872
ONONDAGA NY $288,462 $369,282 $446,359 $554,718
ORANGE NY $455,128 $582,615 $704,256 $875,231
OSWEGO NY $288,462 $369,282 $446,359 $554,718
PUTNAM NY $748,462 $958,154 $1,158,205 $1,439,385
QUEENS NY $748,462 $958,154 $1,158,205 $1,439,385
RENSSELAER NY $320,513 $410,308 $495,949 $616,359
RICHMOND NY $748,462 $958,154 $1,158,205 $1,439,385
ROCKLAND NY $748,462 $958,154 $1,158,205 $1,439,385
SARATOGA NY $320,513 $410,308 $495,949 $616,359
SCHENECTADY NY $320,513 $410,308 $495,949 $616,359
SCHOHARIE NY $320,513 $410,308 $495,949 $616,359
SUFFOLK NY $748,462 $958,154 $1,158,205 $1,439,385
ULSTER NY $416,667 $533,385 $644,769 $801,282
WESTCHESTER NY $748,462 $958,154 $1,158,205 $1,439,385
ASHTABULA OH $298,718 $382,410 $462,256 $574,462
ATHENS OH $443,590 $567,846 $686,410 $853,077
BROWN OH $346,154 $443,128 $535,641 $665,692
BUTLER OH $346,154 $443,128 $535,641 $665,692
CARROLL OH $284,615 $364,359 $440,410 $547,333
CLERMONT OH $346,154 $443,128 $535,641 $665,692
CUYAHOGA OH $306,410 $392,256 $474,154 $589,231
DELAWARE OH $350,000 $448,051 $541,590 $673,077
FAIRFIELD OH $350,000 $448,051 $541,590 $673,077
FRANKLIN OH $350,000 $448,051 $541,590 $673,077
GEAUGA OH $306,410 $392,256 $474,154 $589,231
GREENE OH $278,205 $356,154 $430,513 $535,026
HAMILTON OH $346,154 $443,128 $535,641 $665,692
LAKE OH $306,410 $392,256 $474,154 $589,231
LICKING OH $350,000 $448,051 $541,590 $673,077
LORAIN OH $306,410 $392,256 $474,154 $589,231
MADISON OH $350,000 $448,051 $541,590 $673,077
MEDINA OH $306,410 $392,256 $474,154 $589,231
MERCER OH $300,000 $384,051 $464,205 $576,923
MIAMI OH $278,205 $356,154 $430,513 $535,026
MONTGOMERY OH $278,205 $356,154 $430,513 $535,026
MORROW OH $350,000 $448,051 $541,590 $673,077
PICKAWAY OH $350,000 $448,051 $541,590 $673,077
PORTAGE OH $338,462 $433,282 $523,744 $650,872
PREBLE OH $278,205 $356,154 $430,513 $535,026
STARK OH $284,615 $364,359 $440,410 $547,333
SUMMIT OH $338,462 $433,282 $523,744 $650,872
UNION OH $350,000 $448,051 $541,590 $673,077
VAN WERT OH $308,974 $395,538 $478,103 $594,154
WARREN OH $346,154 $443,128 $535,641 $665,692
BENTON OR $346,154 $443,128 $535,641 $665,692
CLACKAMAS OR $429,487 $549,795 $664,615 $825,949
CLATSOP OR $356,410 $456,256 $551,538 $685,385
COLUMBIA OR $429,487 $549,795 $664,615 $825,949
CURRY OR $360,256 $461,179 $557,487 $692,821
DESCHUTES OR $458,974 $587,538 $710,205 $882,667
HOOD RIVER OR $403,846 $516,974 $624,923 $776,615
JACKSON OR $433,333 $554,718 $670,564 $833,333
JOSEPHINE OR $333,333 $426,718 $515,795 $641,026
LANE OR $352,564 $451,333 $545,538 $678,000
LINCOLN OR $320,513 $410,308 $495,949 $616,359
MARION OR $302,564 $387,333 $468,205 $581,846
MULTNOMAH OR $429,487 $549,795 $664,615 $825,949
POLK OR $302,564 $387,333 $468,205 $581,846
TILLAMOOK OR $352,564 $451,333 $545,538 $678,000
WASHINGTON OR $429,487 $549,795 $664,615 $825,949
YAMHILL OR $429,487 $549,795 $664,615 $825,949
ALLEGHENY PA $335,897 $430,000 $519,795 $645,949
ARMSTRONG PA $335,897 $430,000 $519,795 $645,949
BEAVER PA $335,897 $430,000 $519,795 $645,949
BERKS PA $307,692 $393,897 $476,103 $591,692
BUCKS PA $430,769 $551,436 $666,564 $828,410
BUTLER PA $335,897 $430,000 $519,795 $645,949
CARBON PA $412,821 $528,462 $638,821 $793,897
CENTRE PA $287,179 $367,641 $444,359 $552,256
CHESTER PA $430,769 $551,436 $666,564 $828,410
DELAWARE PA $430,769 $551,436 $666,564 $828,410
FAYETTE PA $335,897 $430,000 $519,795 $645,949
LANCASTER PA $393,590 $503,846 $609,026 $756,923
LEHIGH PA $412,821 $528,462 $638,821 $793,897
MONTGOMERY PA $430,769 $551,436 $666,564 $828,410
NORTHAMPTON PA $412,821 $528,462 $638,821 $793,897
PHILADELPHIA PA $430,769 $551,436 $666,564 $828,410
PIKE PA $748,462 $958,154 $1,158,205 $1,439,385
WASHINGTON PA $335,897 $430,000 $519,795 $645,949
WESTMORELAND PA $335,897 $430,000 $519,795 $645,949
YORK PA $435,897 $558,000 $674,513 $838,256
BRISTOL RI $487,179 $623,692 $753,897 $936,872
KENT RI $487,179 $623,692 $753,897 $936,872
NEWPORT RI $487,179 $623,692 $753,897 $936,872
PROVIDENCE RI $487,179 $623,692 $753,897 $936,872
WASHINGTON RI $487,179 $623,692 $753,897 $936,872
BEAUFORT SC $397,436 $508,769 $614,974 $764,308
BERKELEY SC $343,590 $439,846 $531,692 $660,769
CHARLESTON SC $343,590 $439,846 $531,692 $660,769
DORCHESTER SC $343,590 $439,846 $531,692 $660,769
GEORGETOWN SC $405,128 $518,615 $626,923 $779,077
GREENVILLE SC $302,564 $387,333 $468,205 $581,846
HORRY SC $293,590 $375,846 $454,308 $564,564
JASPER SC $397,436 $508,769 $614,974 $764,308
LAURENS SC $302,564 $387,333 $468,205 $581,846
PICKENS SC $302,564 $387,333 $468,205 $581,846
YORK SC $311,538 $398,821 $482,051 $599,128
CANNON TN $443,590 $567,846 $686,410 $853,077
CHEATHAM TN $443,590 $567,846 $686,410 $853,077
DAVIDSON TN $443,590 $567,846 $686,410 $853,077
DICKSON TN $443,590 $567,846 $686,410 $853,077
HICKMAN TN $443,590 $567,846 $686,410 $853,077
MACON TN $443,590 $567,846 $686,410 $853,077
ROBERTSON TN $443,590 $567,846 $686,410 $853,077
RUTHERFORD TN $443,590 $567,846 $686,410 $853,077
SMITH TN $443,590 $567,846 $686,410 $853,077
SUMNER TN $443,590 $567,846 $686,410 $853,077
TROUSDALE TN $443,590 $567,846 $686,410 $853,077
WILLIAMSON TN $443,590 $567,846 $686,410 $853,077
WILSON TN $443,590 $567,846 $686,410 $853,077
ATASCOSA TX $341,026 $436,564 $527,692 $655,795
BANDERA TX $341,026 $436,564 $527,692 $655,795
BASTROP TX $296,154 $379,128 $458,256 $569,538
BEXAR TX $341,026 $436,564 $527,692 $655,795
CALDWELL TX $296,154 $379,128 $458,256 $569,538
COMAL TX $341,026 $436,564 $527,692 $655,795
GUADALUPE TX $341,026 $436,564 $527,692 $655,795
HAYS TX $296,154 $379,128 $458,256 $569,538
JEFF DAVIS TX $278,205 $356,154 $430,513 $535,026
KENDALL TX $341,026 $436,564 $527,692 $655,795
MEDINA TX $341,026 $436,564 $527,692 $655,795
TRAVIS TX $296,154 $379,128 $458,256 $569,538
WILLIAMSON TX $296,154 $379,128 $458,256 $569,538
WILSON TX $341,026 $436,564 $527,692 $655,795
DAGGETT UT $310,205 $397,128 $480,000 $596,564
DAVIS UT $407,692 $521,897 $630,872 $784,000
JUAB UT $332,051 $425,077 $513,795 $638,564
KANE UT $393,590 $503,846 $609,026 $756,923
MORGAN UT $407,692 $521,897 $630,872 $784,000
RICH UT $304,308 $389,538 $470,872 $585,179
SALT LAKE UT $748,462 $958,154 $1,158,205 $1,439,385
SUMMIT UT $748,462 $958,154 $1,158,205 $1,439,385
TOOELE UT $748,462 $958,154 $1,158,205 $1,439,385
UTAH UT $332,051 $425,077 $513,795 $638,564
WASATCH UT $442,308 $566,205 $684,462 $850,615
WASHINGTON UT $382,051 $489,077 $591,179 $734,718
WEBER UT $407,692 $521,897 $630,872 $784,000
ALBEMARLE VA $448,205 $573,795 $693,538 $861,949
AMELIA VA $549,641 $703,641 $850,513 $1,057,026
AMHERST VA $299,590 $383,538 $463,590 $576,103
APPOMATTOX VA $299,590 $383,538 $463,590 $576,103
ARLINGTON VA $748,462 $958,154 $1,158,205 $1,439,385
BEDFORD VA $299,590 $383,538 $463,590 $576,103
BOTETOURT VA $287,179 $367,641 $444,359 $552,256
CAMPBELL VA $299,590 $383,538 $463,590 $576,103
CAROLINE VA $549,641 $703,641 $850,513 $1,057,026
CHARLES CITY VA $549,641 $703,641 $850,513 $1,057,026
CHESTERFIELD VA $549,641 $703,641 $850,513 $1,057,026
CLARKE VA $748,462 $958,154 $1,158,205 $1,439,385
CRAIG VA $287,179 $367,641 $444,359 $552,256
CULPEPER VA $392,308 $502,205 $607,077 $754,462
CUMBERLAND VA $549,641 $703,641 $850,513 $1,057,026
DINWIDDIE VA $549,641 $703,641 $850,513 $1,057,026
ESSEX VA $384,615 $492,359 $595,179 $739,641
FAIRFAX VA $748,462 $958,154 $1,158,205 $1,439,385
FAUQUIER VA $748,462 $958,154 $1,158,205 $1,439,385
FLUVANNA VA $448,205 $573,795 $693,538 $861,949
FRANKLIN VA $287,179 $367,641 $444,359 $552,256
FREDERICK VA $487,179 $623,692 $753,897 $936,872
GILES VA $299,590 $383,538 $463,590 $576,103
GLOUCESTER VA $470,615 $602,462 $728,256 $905,026
GOOCHLAND VA $549,641 $703,641 $850,513 $1,057,026
GREENE VA $448,205 $573,795 $693,538 $861,949
HANOVER VA $549,641 $703,641 $850,513 $1,057,026
HENRICO VA $549,641 $703,641 $850,513 $1,057,026
HIGHLAND VA $294,872 $377,487 $456,308 $567,077
ISLE OF WIGHT VA $470,615 $602,462 $728,256 $905,026
JAMES CITY VA $470,615 $602,462 $728,256 $905,026
KING AND QUEEN VA $549,641 $703,641 $850,513 $1,057,026
KING GEORGE VA $396,154 $507,128 $613,026 $761,846
KING WILLIAM VA $549,641 $703,641 $850,513 $1,057,026
LANCASTER VA $558,974 $715,590 $864,974 $1,074,974
LOUDOUN VA $748,462 $958,154 $1,158,205 $1,439,385
LOUISA VA $549,641 $703,641 $850,513 $1,057,026
MADISON VA $284,615 $364,359 $440,410 $547,333
MATHEWS VA $470,615 $602,462 $728,256 $905,026
MIDDLESEX VA $338,462 $433,282 $523,744 $650,872
MONTGOMERY VA $299,590 $383,538 $463,590 $576,103
NELSON VA $448,205 $573,795 $693,538 $861,949
NEW KENT VA $549,641 $703,641 $850,513 $1,057,026
NORTHUMBERLAND VA $402,564 $515,333 $622,923 $774,154
ORANGE VA $339,744 $434,923 $525,744 $653,333
POWHATAN VA $549,641 $703,641 $850,513 $1,057,026
PRINCE GEORGE VA $549,641 $703,641 $850,513 $1,057,026
PRINCE WILLIAM VA $748,462 $958,154 $1,158,205 $1,439,385
PULASKI VA $299,590 $383,538 $463,590 $576,103
RAPPAHANNOCK VA $369,179 $472,615 $571,282 $709,949
RICHMOND VA $307,692 $393,897 $476,103 $591,692
ROANOKE VA $287,179 $367,641 $444,359 $552,256
ROCKINGHAM VA $284,256 $363,897 $439,846 $546,615
SPOTSYLVANIA VA $748,462 $958,154 $1,158,205 $1,439,385
STAFFORD VA $748,462 $958,154 $1,158,205 $1,439,385
SURRY VA $470,615 $602,462 $728,256 $905,026
SUSSEX VA $549,641 $703,641 $850,513 $1,057,026
WARREN VA $748,462 $958,154 $1,158,205 $1,439,385
YORK VA $470,615 $602,462 $728,256 $905,026
ALEXANDRIA VA $748,462 $958,154 $1,158,205 $1,439,385
BEDFORD IND VA $299,590 $383,538 $463,590 $576,103
CHARLOTTESVILLE VA $448,205 $573,795 $693,538 $861,949
CHESAPEAKE VA $470,615 $602,462 $728,256 $905,026
COLONIAL HEIGHT VA $549,641 $703,641 $850,513 $1,057,026
FAIRFAX IND VA $748,462 $958,154 $1,158,205 $1,439,385
FALLS CHURCH VA $748,462 $958,154 $1,158,205 $1,439,385
FREDERICKSBURG VA $748,462 $958,154 $1,158,205 $1,439,385
HAMPTON VA $470,615 $602,462 $728,256 $905,026
HARRISONBURG VA $284,256 $363,897 $439,846 $546,615
HOPEWELL VA $549,641 $703,641 $850,513 $1,057,026
LEXINGTON VA $303,846 $388,974 $470,154 $584,308
LYNCHBURG VA $299,590 $383,538 $463,590 $576,103
MANASSAS VA $748,462 $958,154 $1,158,205 $1,439,385
MANASSAS PARK VA $748,462 $958,154 $1,158,205 $1,439,385
NEWPORT NEWS VA $470,615 $602,462 $728,256 $905,026
NORFOLK VA $470,615 $602,462 $728,256 $905,026
PETERSBURG VA $549,641 $703,641 $850,513 $1,057,026
POQUOSON VA $470,615 $602,462 $728,256 $905,026
PORTSMOUTH VA $470,615 $602,462 $728,256 $905,026
RADFORD VA $299,590 $383,538 $463,590 $576,103
RICHMOND IND VA $549,641 $703,641 $850,513 $1,057,026
ROANOKE IND VA $287,179 $367,641 $444,359 $552,256
SALEM VA $287,179 $367,641 $444,359 $552,256
SUFFOLK VA $470,615 $602,462 $728,256 $905,026
VIRGINIA BEACH VA $470,615 $602,462 $728,256 $905,026
WILLIAMSBURG VA $470,615 $602,462 $728,256 $905,026
WINCHESTER VA $487,179 $623,692 $753,897 $936,872
BENNINGTON VT $284,256 $363,897 $439,846 $546,615
CHITTENDEN VT $326,923 $418,513 $505,897 $628,718
FRANKLIN VT $326,923 $418,513 $505,897 $628,718
GRAND ISLE VT $326,923 $418,513 $505,897 $628,718
LAMOILLE VT $283,077 $362,359 $438,051 $544,359
ORANGE VT $288,462 $369,282 $446,359 $554,718
WINDSOR VT $288,462 $369,282 $446,359 $554,718
BENTON WA $282,051 $361,077 $436,462 $542,410
CHELAN WA $351,487 $449,949 $543,897 $675,949
CLALLAM WA $393,949 $504,308 $609,590 $757,590
CLARK WA $429,487 $549,795 $664,615 $825,949
DOUGLAS WA $351,487 $449,949 $543,897 $675,949
FRANKLIN WA $282,051 $361,077 $436,462 $542,410
ISLAND WA $391,026 $500,564 $605,077 $751,949
JEFFERSON WA $448,718 $574,410 $694,359 $862,923
KING WA $582,051 $745,128 $900,667 $1,119,333
KITSAP WA $487,179 $623,692 $753,897 $936,872
KITTITAS WA $337,179 $431,641 $521,744 $648,410
MASON WA $317,949 $407,026 $492,000 $611,436
PIERCE WA $582,051 $745,128 $900,667 $1,119,333
SAN JUAN WA $608,974 $779,590 $942,359 $1,171,128
SKAGIT WA $383,333 $490,718 $593,179 $737,179
SKAMANIA WA $429,487 $549,795 $664,615 $825,949
SNOHOMISH WA $582,051 $745,128 $900,667 $1,119,333
THURSTON WA $370,513 $474,308 $573,333 $712,513
WHATCOM WA $384,615 $492,359 $595,179 $739,641
COLUMBIA WI $301,282 $385,692 $466,205 $579,385
DANE WI $301,282 $385,692 $466,205 $579,385
IOWA WI $301,282 $385,692 $466,205 $579,385
KENOSHA WI $420,513 $538,308 $650,718 $808,667
MILWAUKEE WI $323,077 $413,590 $499,949 $621,282
OZAUKEE WI $323,077 $413,590 $499,949 $621,282
PIERCE WI $374,359 $479,231 $579,282 $719,897
ST. CROIX WI $374,359 $479,231 $579,282 $719,897
WALWORTH WI $285,897 $366,000 $442,410 $549,795
WASHINGTON WI $323,077 $413,590 $499,949 $621,282
WAUKESHA WI $323,077 $413,590 $499,949 $621,282
BERKELEY WV $387,179 $495,641 $599,128 $744,564
HAMPSHIRE WV $487,179 $623,692 $753,897 $936,872
JEFFERSON WV $748,462 $958,154 $1,158,205 $1,439,385
MORGAN WV $387,179 $495,641 $599,128 $744,564
SHERIDAN WY $279,487 $357,795 $432,462 $537,487
SUBLETTE WY $306,410 $392,256 $474,154 $589,231
TETON WY $711,538 $910,872 $1,101,077 $1,368,359
MANUA AS $312,821 $400,462 $484,051 $601,590
GUAM GU $667,949 $855,077 $1,033,590 $1,284,513
NORTHERN ISLAND MP $620,513 $794,359 $960,205 $1,193,333
ROTA MP $485,897 $622,051 $751,897 $934,410
SAIPAN MP $625,641 $800,923 $968,154 $1,203,179
TINIAN MP $629,487 $805,846 $974,103 $1,210,564
AGUAS BUENAS PR $621,795 $796,000 $962,205 $1,195,795
AIBONITO PR $621,795 $796,000 $962,205 $1,195,795
ARECIBO PR $621,795 $796,000 $962,205 $1,195,795
BARCELONETA PR $621,795 $796,000 $962,205 $1,195,795
BARRANQUITAS PR $621,795 $796,000 $962,205 $1,195,795
BAYAMON PR $621,795 $796,000 $962,205 $1,195,795
CAGUAS PR $621,795 $796,000 $962,205 $1,195,795
CAMUY PR $621,795 $796,000 $962,205 $1,195,795
CANOVANAS PR $621,795 $796,000 $962,205 $1,195,795
CAROLINA PR $621,795 $796,000 $962,205 $1,195,795
CATANO PR $621,795 $796,000 $962,205 $1,195,795
CAYEY PR $621,795 $796,000 $962,205 $1,195,795
CEIBA PR $333,333 $426,718 $515,795 $641,026
CIALES PR $621,795 $796,000 $962,205 $1,195,795
CIDRA PR $621,795 $796,000 $962,205 $1,195,795
COMERIO PR $621,795 $796,000 $962,205 $1,195,795
COROZAL PR $621,795 $796,000 $962,205 $1,195,795
DORADO PR $621,795 $796,000 $962,205 $1,195,795
FAJARDO PR $333,333 $426,718 $515,795 $641,026
FLORIDA PR $621,795 $796,000 $962,205 $1,195,795
GUAYNABO PR $621,795 $796,000 $962,205 $1,195,795
GURABO PR $621,795 $796,000 $962,205 $1,195,795
HATILLO PR $621,795 $796,000 $962,205 $1,195,795
HUMACAO PR $621,795 $796,000 $962,205 $1,195,795
JUNCOS PR $621,795 $796,000 $962,205 $1,195,795
LAS PIEDRAS PR $621,795 $796,000 $962,205 $1,195,795
LOIZA PR $621,795 $796,000 $962,205 $1,195,795
LUQUILLO PR $333,333 $426,718 $515,795 $641,026
MANATI PR $621,795 $796,000 $962,205 $1,195,795
MAUNABO PR $621,795 $796,000 $962,205 $1,195,795
MOROVIS PR $621,795 $796,000 $962,205 $1,195,795
NAGUABO PR $621,795 $796,000 $962,205 $1,195,795
NARANJITO PR $621,795 $796,000 $962,205 $1,195,795
OROCOVIS PR $621,795 $796,000 $962,205 $1,195,795
QUEBRADILLAS PR $621,795 $796,000 $962,205 $1,195,795
RIO GRANDE PR $621,795 $796,000 $962,205 $1,195,795
SAN JUAN PR $621,795 $796,000 $962,205 $1,195,795
SAN LORENZO PR $621,795 $796,000 $962,205 $1,195,795
TOA ALTA PR $621,795 $796,000 $962,205 $1,195,795
TOA BAJA PR $621,795 $796,000 $962,205 $1,195,795
TRUJILLO ALTO PR $621,795 $796,000 $962,205 $1,195,795
VEGA ALTA PR $621,795 $796,000 $962,205 $1,195,795
VEGA BAJA PR $621,795 $796,000 $962,205 $1,195,795
YABUCOA PR $621,795 $796,000 $962,205 $1,195,795
ST. CROIX VI $336,154 $430,308 $520,154 $646,462
ST. JOHN VI $639,282 $818,410 $989,231 $1,229,385
ST. THOMAS VI $457,641 $585,846 $708,154 $880,103
All other areas (floor): $278,000 $355,897 $430,154 $534,615

.02 The nationwide average purchase price (for use in the housing cost/income ratio for new and existing residences) is $214,000.

SECTION 5. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2011-23 is obsolete except as provided in section 6 of this revenue procedure.

SECTION 6. EFFECTIVE DATES

.01 Issuers may rely on this revenue procedure to determine average area purchase price safe harbors for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the period that begins on April 25, 2012, and ends on the date as of which the safe harbors contained in section 4.01 of this revenue procedure are rendered obsolete by a new revenue procedure.

.02 Notwithstanding section 5 of this revenue procedure, issuers may continue to rely on the average area purchase price safe harbors contained in Rev. Proc. 2011-23, with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, before May 25, 2012, if the commitments to provide financing or issue mortgage credit certificates are made on or before June 24, 2012.

.03 Except as provided in section 6.04, issuers must use the nationwide average purchase price limitation contained in this revenue procedure for commitments to provide financing or issue mortgage credit certificates that are made, or (if the purchase precedes the commitment) for residences that are purchased, in the period that begins on April 25, 2012, and ends on the date when the nationwide average purchase price limitation is rendered obsolete by a new revenue procedure.

.04 Notwithstanding sections 5 and 6.03 of this revenue procedure, issuers may continue to rely on the nationwide average purchase price set forth in Rev. Proc. 2011-23 with respect to bonds sold, or for mortgage credit certificates issued with respect to bond authority exchanged, before May 25, 2012, if the commitments to provide financing or issue mortgage credit certificates are made on or before June 24, 2012.

SECTION 7. REQUEST FOR COMMENTS

Code section 143 requires that the average area purchase prices be based on the most recent 12-month period for which sufficient statistical information is available. In order to ensure that the safe harbors reflect accurate and timely price information, the Treasury Department and the IRS are considering possible changes in the data source and method used for these safe harbors beginning in 2013. The alternative method under consideration would involve the use of certain currently available data from the Department of Housing and Urban Development (“HUD”) regarding county median housing purchase prices instead of the FHA loan limits. Certain aggregate HUD price data are available at http://www.hud.gov/pub/chums under CY2012 FHA Forward Limits, and certain HUD price data for individual counties is available at https://entp.hud.gov/idapp/html/hicostlook.cfm.

Absent modifications, the use of HUD data on county median housing purchase prices potentially would result in significant declines in purchase price limits compared to prior limits, particularly in rural areas. The Treasury Department and the IRS are considering certain appropriate modifications to the HUD price data in implementing this alternative method.

One potential modification would be to consider setting floors on purchase price safe harbors. Potential approaches to setting floors on purchase prices might include national average prices, county average prices, rural county average prices, or some percentile of county average prices. For illustrative purposes only, set forth below are the floors on mean purchase prices that would result from using one of these approaches with 2012 data: (1) national average price ($214,000); (2) county average price ($174,862); (3) rural county average price ($112,864); (4) 25th percentile of county average price ($92,308); (5) 50th percentile of county average price ($138,462); or (6) 75th percentile of county average price ($214,103).

Another potential modification would be to consider transitional relief to phase in the effects of the changes over an extended period, as compared with a baseline of the 2012 purchase price safe harbors in section 4.01 of this revenue procedure. Potential phase-in periods might include a period of three years to five years. In addition, a technical modification will make adjustments for differences between HUD median prices and the required average prices.

The Treasury Department and the IRS solicit public comments on this alternative method using current HUD data on county median housing purchase prices, including particularly comments on potential floors on prices and phase-in periods for the method, and on whether other methods or data sources should be used to calculate these safe harbors. Comments should be submitted in writing and can be e-mailed to notice.comments@irscounsel.treas.gov (include “Rev. Proc. 2012-25” in the subject line) or mailed to Office of Associate Chief Counsel (Financial Institutions & Products), Re: Rev. Proc. 2012-25, CC:FIP:B5, Room 3547, 1111 Constitution Avenue, NW, Washington, DC 20224. The due date for the public comments is July 15, 2012. Comments that are submitted will be made available to the public.

SECTION 8. PAPERWORK REDUCTION ACT

The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1877.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

This revenue procedure contains a collection of information requirement in section 3.03. The purpose of the collection of information is to verify the applicable FHA loan limit that issuers of qualified mortgage bonds and qualified mortgage certificates have used to calculate the average area purchase price for a given metropolitan statistical area for purposes of section 143(e) and 25(c). The collection of information is required to obtain the benefit of using revisions to FHA loan limits to determine average area purchase prices. The likely respondents are state and local governments.

The estimated total annual reporting and/or recordkeeping burden is: 15 hours.

The estimated annual burden per respondent and/or recordkeeper: 15 minutes.

The estimated number of respondents and/or recordkeepers: 60.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

SECTION 9. DRAFTING INFORMATION

The principal authors of this revenue procedure are David E. White and Timothy L. Jones of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure, contact David E. White at (202) 622-3980 (not a toll-free call).

Rev. Proc. 2012-26

SECTION 1. PURPOSE

This revenue procedure provides the 2013 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code.

SECTION 2. 2013 INFLATION ADJUSTED ITEMS

Annual contribution limitation. For calendar year 2013, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,250. For calendar year 2013, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,450.

High deductible health plan. For calendar year 2013, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,250 for self-only coverage or $12,500 for family coverage.

SECTION 3. EFFECTIVE DATE

This revenue procedure is effective for calendar year 2013.

SECTION 4. DRAFTING INFORMATION

The principal author of this revenue procedure is Bill Ruane of Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding § 223 and HSAs, contact Leslie Paul at (202) 622-6080 (not a toll-free call). For further information regarding the calculation of the inflation adjustments in this revenue procedure, contact Mr. Ruane at (202) 622-4920 (not a toll-free call).

Part IV. Items of General Interest

Announcement 2012-19

Reporting Information Regarding Joint Ventures and Other Partnerships on Forms 990 and 990-EZ for Tax Year 2011

This announcement notifies filers of Form 990, Return of Organization Exempt from Income Tax and Form 990-EZ, Short Form Return of Organization Exempt from Income Tax, of a change in the 2011 Form 990-EZ and Form 990 Instructions. Except as noted below, it is now optional for tax year 2011 for filers to report their interests in the income, expenses, and assets of joint ventures and other partnerships in which they have an ownership interest using information from Form 1065, U.S. Return of Partnership Income, Schedule K-1.

The 2010 Form 990 Instructions state, in Appendix F, that the filing organization should report in Parts VIII, IX, and X its proportionate interests in a joint venture’s or other partnership’s revenue, expenses, and assets in accordance with the organization’s books and records. To promote greater consistency, accuracy, and transparency in reporting this information, including unrelated business income from partnerships, the IRS revised the 2011 Form 990 and Form 990-EZ Instructions to require the filing organization to report such interests using information from the Form 1065, Schedule K-1 provided by the partnership.

Since publishing the 2011 Form 990 and Form 990-EZ Instructions in January 2012, the IRS has received comments from the public arguing that reporting organizations’ interests in partnership assets using the organization’s books and records provides a more accurate value of those assets than does reporting using Schedule K-1 information. Other commenters noted that using Schedule K-1 information can be burdensome and that organizations cannot report information from all Forms 1065, Schedules K-1 they receive because some partnerships do not submit those Forms until after the Form 990 filing due date. To more fully consider these comments, and to determine how best to promote compliance and transparency while minimizing burden in reporting of partnership interests, the IRS has decided to make the new Schedule K-1 reporting instructions for Forms 990 and 990-EZ optional for tax year 2011.

In reporting on the 2011 Form 990 or Form 990-EZ its proportionate interests in the income, expenses, and assets of partnerships in which it has an ownership interest, an organization generally may continue to report these interests based on its books and records. However, as in prior years, organizations that complete Form 990, Schedule H and Form 990, Schedule R must continue to use information from Form 1065, Schedule K-1 in reporting certain partnership information on those schedules, as explained in the instructions for 2011 Form 990, Schedule H and 2011 Form 990, Schedule R.

The IRS welcomes further comments on whether and how the use of Form 1065, Schedule K-1 in reporting certain information on partnerships, as is currently required on Schedules H and R, should be extended to Parts VIII-X of the core Form 990, Form 990-EZ, and/or to other schedules. Comments may be submitted to Form990Revision@irs.gov or to:

Internal Revenue Service
Attn: Stephen Clarke
(Announcement 2012-19)
SE:T:EO
1111 Constitution Avenue, N.W. -
NCA 570-14
Washington, D.C. 20224

The principal author of this announcement is Stephen Clarke of the Tax Exempt and Government Entities Division. For further information regarding this announcement, please contact Mr. Clarke at (202) 283-9474 (not a toll-free number).

Definition of Terms and Abbreviations

Definition of Terms

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below).

Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed.

Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them.

Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling.

Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded.

Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect:

Abbreviations

The following abbreviations in current use and formerly used will appear in material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D. —Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

Numerical Finding List

Numerical Finding List

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011-27 through 2011-52 is in Internal Revenue Bulletin 2011-52, dated December 27, 2011.

Bulletins 2012-1 through 2012-20

Announcements

Article Issue Link Page
2012-1 2012-1 I.R.B. 2012-1 249
2012-2 2012-2 I.R.B. 2012-2 285
2012-3 2012-4 I.R.B. 2012-4 335
2012-4 2012-4 I.R.B. 2012-4 335
2012-5 2012-5 I.R.B. 2012-5 348
2012-6 2012-6 I.R.B. 2012-6 366
2012-7 2012-6 I.R.B. 2012-6 367
2012-8 2012-7 I.R.B. 2012-7 373
2012-9 2012-7 I.R.B. 2012-7 377
2012-11 2012-13 I.R.B. 2012-13 611
2012-12 2012-12 I.R.B. 2012-12 562
2012-13 2012-16 I.R.B. 2012-16 805
2012-14 2012-14 I.R.B. 2012-14 721
2012-15 2012-15 I.R.B. 2012-15 794
2012-16 2012-18 I.R.B. 2012-18 876
2012-17 2012-18 I.R.B. 2012-18 876
2012-18 2012-16 I.R.B. 2012-16 845
2012-19 2012-20 I.R.B. 2012-20
2012-20 2012-18 I.R.B. 2012-18 876
2012-21 2012-19 I.R.B. 2012-19 898
2012-22 2012-19 I.R.B. 2012-19 899


Notices

Article Issue Link Page
2012-1 2012-2 I.R.B. 2012-2 260
2012-3 2012-3 I.R.B. 2012-3 289
2012-4 2012-3 I.R.B. 2012-3 290
2012-5 2012-3 I.R.B. 2012-3 291
2012-6 2012-3 I.R.B. 2012-3 293
2012-7 2012-4 I.R.B. 2012-4 308
2012-8 2012-4 I.R.B. 2012-4 309
2012-9 2012-4 I.R.B. 2012-4 315
2012-10 2012-5 I.R.B. 2012-5 343
2012-11 2012-5 I.R.B. 2012-5 346
2012-12 2012-6 I.R.B. 2012-6 365
2012-13 2012-9 I.R.B. 2012-9 421
2012-14 2012-8 I.R.B. 2012-8 411
2012-15 2012-9 I.R.B. 2012-9 424
2012-16 2012-9 I.R.B. 2012-9 427
2012-17 2012-9 I.R.B. 2012-9 430
2012-18 2012-10 I.R.B. 2012-10 438
2012-19 2012-10 I.R.B. 2012-10 440
2012-20 2012-13 I.R.B. 2012-13 574
2012-21 2012-10 I.R.B. 2012-10 450
2012-22 2012-13 I.R.B. 2012-13 576
2012-23 2012-11 I.R.B. 2012-11 483
2012-24 2012-13 I.R.B. 2012-13 578
2012-25 2012-15 I.R.B. 2012-15 789
2012-26 2012-17 I.R.B. 2012-17 847
2012-27 2012-17 I.R.B. 2012-17 849
2012-28 2012-17 I.R.B. 2012-17 850
2012-29 2012-18 I.R.B. 2012-18 872
2012-30 2012-18 I.R.B. 2012-18 874
2012-31 2012-20 I.R.B. 2012-20
2012-32 2012-20 I.R.B. 2012-20
2012-33 2012-20 I.R.B. 2012-20


Proposed Regulations

Article Issue Link Page
168745-03 2012-14 I.R.B. 2012-14 718
109369-10 2012-9 I.R.B. 2012-9 434
110980-10 2012-13 I.R.B. 2012-13 581
113770-10 2012-13 I.R.B. 2012-13 587
113903-10 2012-11 I.R.B. 2012-11 486
120282-10 2012-11 I.R.B. 2012-11 487
130302-10 2012-8 I.R.B. 2012-8 412
135491-10 2012-16 I.R.B. 2012-16 803
149625-10 2012-2 I.R.B. 2012-2 279
102988-11 2012-4 I.R.B. 2012-4 326
115809-11 2012-13 I.R.B. 2012-13 598
124627-11 2012-8 I.R.B. 2012-8 417
124791-11 2012-15 I.R.B. 2012-15 791
130777-11 2012-5 I.R.B. 2012-5 347
132736-11 2012-15 I.R.B. 2012-15 793
135071-11 2012-12 I.R.B. 2012-12 561
136008-11 2012-19 I.R.B. 2012-19 881
141268-11 2012-19 I.R.B. 2012-19 896
145474-11 2012-11 I.R.B. 2012-11 495


Revenue Procedures

Article Issue Link Page
2012-1 2012-1 I.R.B. 2012-1 1
2012-2 2012-1 I.R.B. 2012-1 92
2012-3 2012-1 I.R.B. 2012-1 113
2012-4 2012-1 I.R.B. 2012-1 125
2012-5 2012-1 I.R.B. 2012-1 169
2012-6 2012-1 I.R.B. 2012-1 197
2012-7 2012-1 I.R.B. 2012-1 232
2012-8 2012-1 I.R.B. 2012-1 235
2012-9 2012-2 I.R.B. 2012-2 261
2012-10 2012-2 I.R.B. 2012-2 273
2012-11 2012-7 I.R.B. 2012-7 368
2012-12 2012-2 I.R.B. 2012-2 275
2012-13 2012-3 I.R.B. 2012-3 295
2012-14 2012-3 I.R.B. 2012-3 296
2012-15 2012-7 I.R.B. 2012-7 369
2012-16 2012-10 I.R.B. 2012-10 452
2012-17 2012-10 I.R.B. 2012-10 453
2012-18 2012-10 I.R.B. 2012-10 455
2012-19 2012-14 I.R.B. 2012-14 689
2012-20 2012-14 I.R.B. 2012-14 700
2012-21 2012-11 I.R.B. 2012-11 484
2012-22 2012-17 I.R.B. 2012-17 853
2012-23 2012-14 I.R.B. 2012-14 712
2012-24 2012-20 I.R.B. 2012-20
2012-25 2012-20 I.R.B. 2012-20
2012-26 2012-20 I.R.B. 2012-20


Revenue Rulings

Article Issue Link Page
2012-1 2012-2 I.R.B. 2012-2 255
2012-2 2012-3 I.R.B. 2012-3 286
2012-3 2012-8 I.R.B. 2012-8 383
2012-4 2012-8 I.R.B. 2012-8 386
2012-5 2012-5 I.R.B. 2012-5 337
2012-6 2012-6 I.R.B. 2012-6 349
2012-7 2012-6 I.R.B. 2012-6 362
2012-8 2012-13 I.R.B. 2012-13 563
2012-9 2012-11 I.R.B. 2012-11 475
2012-10 2012-14 I.R.B. 2012-14 614
2012-11 2012-14 I.R.B. 2012-14 686
2012-12 2012-15 I.R.B. 2012-15 748
2012-13 2012-19 I.R.B. 2012-19 878


Treasury Decisions

Article Issue Link Page
9559 2012-2 I.R.B. 2012-2 252
9560 2012-4 I.R.B. 2012-4 299
9561 2012-5 I.R.B. 2012-5 341
9562 2012-5 I.R.B. 2012-5 339
9563 2012-6 I.R.B. 2012-6 354
9564 2012-14 I.R.B. 2012-14 614
9565 2012-8 I.R.B. 2012-8 378
9566 2012-8 I.R.B. 2012-8 389
9567 2012-8 I.R.B. 2012-8 395
9568 2012-12 I.R.B. 2012-12 499
9569 2012-11 I.R.B. 2012-11 465
9570 2012-11 I.R.B. 2012-11 477
9571 2012-11 I.R.B. 2012-11 468
9572 2012-11 I.R.B. 2012-11 471
9573 2012-12 I.R.B. 2012-12 498
9574 2012-12 I.R.B. 2012-12 559
9575 2012-15 I.R.B. 2012-15 749
9576 2012-15 I.R.B. 2012-15 723
9577 2012-15 I.R.B. 2012-15 730
9579 2012-16 I.R.B. 2012-16 796
9580 2012-16 I.R.B. 2012-16 801
9581 2012-16 I.R.B. 2012-16 798
9582 2012-18 I.R.B. 2012-18 868
9583 2012-18 I.R.B. 2012-18 866
9584 2012-20 I.R.B. 2012-20


Effect of Current Actions on Previously Published Items

Finding List of Current Actions on Previously Published Items

A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2011-27 through 2011-52 is in Internal Revenue Bulletin 2011-52, dated December 27, 2011.

Bulletins 2012-1 through 2012-20

Announcements

Old Article Action New Article Issue Link Page
2002-44 Supplemented by Notice 2012-13 2012-9 I.R.B. 2012-9 421
2010-19 Obsoleted by Ann. 2012-12 2012-12 I.R.B. 2012-12 562
2011-63 Corrected by Ann. 2012-9 2012-7 I.R.B. 2012-7 377


Notices

Old Article Action New Article Issue Link Page
2006-52 As clarified and amplified by Notice 2008-40, is modified by Notice 2012-26 2012-17 I.R.B. 2012-17 847
2006-87 Superseded by Notice 2012-19 2012-10 I.R.B. 2012-10 440
2006-99 Superseded in part by Notice 2012-20 2012-13 I.R.B. 2012-13 574
2007-25 Superseded by Notice 2012-19 2012-10 I.R.B. 2012-10 440
2007-77 Superseded by Notice 2012-19 2012-10 I.R.B. 2012-10 440
2007-95 Obsoleted in part by T.D. 9576 2012-15 I.R.B. 2012-15 723
2008-98 Modified by Notice 2012-29 2012-18 I.R.B. 2012-18 872
2008-107 Superseded by Notice 2012-19 2012-10 I.R.B. 2012-10 440
2009-86 Modified by Notice 2012-29 2012-18 I.R.B. 2012-18 872
2010-27 Superseded by Notice 2012-19 2012-10 I.R.B. 2012-10 440
2010-88 As modified by Ann. 2011-40, is superseded by Notice 2012-1 2012-2 I.R.B. 2012-2 260
2010-92 Obsoleted by T.D. 9577 2012-15 I.R.B. 2012-15 730
2011-8 Superseded by Notice 2012-19 2012-10 I.R.B. 2012-10 440
2011-28 Superseded by Notice 2012-9 2012-4 I.R.B. 2012-4 315


Proposed Regulations

Old Article Action New Article Issue Link Page
208274-86 Withdrawn by Ann. 2012-11 2012-13 I.R.B. 2012-13 611


Revenue Procedures

Old Article Action New Article Issue Link Page
2000-43 Amplified, modified and superseded by Rev. Proc. 2012-18 2012-10 I.R.B. 2012-10 455
2003-61 Superseded by Notice 2012-8 2012-4 I.R.B. 2012-4 309
2007-44 Modified by Ann. 2012-3 2012-4 I.R.B. 2012-4 335
2010-43 Superseded by Rev. Proc. 2012-22 2012-17 I.R.B. 2012-17 853
2011-1 Superseded by Rev. Proc. 2012-1 2012-1 I.R.B. 2012-1 1
2011-2 Superseded by Rev. Proc. 2012-2 2012-1 I.R.B. 2012-1 92
2011-3 Superseded by Rev. Proc. 2012-3 2012-1 I.R.B. 2012-1 113
2011-4 Superseded by Rev. Proc. 2012-4 2012-1 I.R.B. 2012-1 125
2011-5 Superseded by Rev. Proc. 2012-5 2012-1 I.R.B. 2012-1 169
2011-6 Superseded by Rev. Proc. 2012-6 2012-1 I.R.B. 2012-1 197
2011-7 Superseded by Rev. Proc. 2012-7 2012-1 I.R.B. 2012-1 232
2011-8 Superseded by Rev. Proc. 2012-8 2012-1 I.R.B. 2012-1 235
2011-9 Superseded by Rev. Proc. 2012-9 2012-2 I.R.B. 2012-2 261
2011-10 Superseded by Rev. Proc. 2012-10 2012-2 I.R.B. 2012-2 273
2011-14 Modified and clarified by Rev. Proc. 2012-19 2012-14 I.R.B. 2012-14 689
2011-14 Modified and clarified by Rev. Proc. 2012-20 2012-14 I.R.B. 2012-14 700
2011-23 Obsoleted in part by Rev. Proc. 2012-25 2012-20 I.R.B. 2012-20
2011-37 Obsoleted in part by Rev. Proc. 2012-16 2012-10 I.R.B. 2012-10 452
2011-40 Corrected by Ann. 2012-6 2012-6 I.R.B. 2012-6 366
2011-49 Modified by Ann. 2012-3 2012-4 I.R.B. 2012-4 335
2011-50 Corrected by Ann. 2012-6 2012-6 I.R.B. 2012-6 366
2011-51 Corrected by Ann. 2012-6 2012-6 I.R.B. 2012-6 366
2011-62 Corrected by Ann. 2012-17 2012-18 I.R.B. 2012-18 876
2012-8 Corrected by Ann. 2012-7 2012-6 I.R.B. 2012-6 367


Revenue Rulings

Old Article Action New Article Issue Link Page
92-19 Supplemented in part by Rev. Rul. 2012-6 2012-6 I.R.B. 2012-6 349
2008-40 Modified by Notice 2012-6 2012-3 I.R.B. 2012-3 293
2011-1 Modified by Notice 2012-6 2012-3 I.R.B. 2012-3 293
2012-9 Modified by Rev. Rul. 2012-12 2012-15 I.R.B. 2012-15 748


Treasury Decision

Old Article Action New Article Issue Link Page
9517 Corrected by Ann. 2012-4 2012-4 I.R.B. 2012-4 335
9517 Corrected by Ann. 2012-5 2012-5 I.R.B. 2012-5 348


How to get the Internal Revenue Bulletin

INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of Documents when their subscriptions must be renewed.

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The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the Superintendent of Documents.

ACCESS THE INTERNAL REVENUE BULLETIN ON THE INTERNET

You may view the Internal Revenue Bulletin on the Internet at www.irs.gov. Select Businesses. Under Businesses Topics, select More Topics. Then select Internal Revenue Bulletins.

INTERNAL REVENUE BULLETINS ON CD-ROM

Internal Revenue Bulletins are available annually as part of Publication 1796 (Tax Products CD-ROM). The CD-ROM can be purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders) or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January.

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We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the

IRS Bulletin Unit, SE:W:CAR:MP:T:T:SP, Washington, DC 20224.