Internal Revenue Bulletin: 2014-18

April 28, 2014


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

Announcement 2014–17 Announcement 2014–17

Announcement 2014–17 provides guidance to foreign financial institutions (FFIs) in jurisdictions that have not signed an intergovernmental FATCA agreement, but that have reached an agreement in substance with the United States on the terms of an IGA. Announcement 2014–17 also provides that the GIIN of a registering FFI will be included on the June 2 IRS FFI List if the FFI's registration is finalized by May 5, 2014, rather than April 25, 2014, as originally announced In addition, Announcement 2014–17 provides that the GIIN of a registering FFI will be included on the July 1 FFI List if the FFI's registration is finalized by June 3, 2014.

Notice 2014–28 Notice 2014–28

This notice provides guidance regarding the treatment of United States persons that own stock of a PFIC through certain tax exempt organization and accounts.

Notice 2014–29 Notice 2014–29

This notice provides adjusted limitations on housing expenses for tax year 2014 for purpose of sections 911 of the code. This notice supersedes Notice 2006–87, 2006–2 C.B. 766, Notice 2007–25, 2007–1 C.B. 760, Notice 2007–77, 2007–2 C.B. 735, Notice 2008–107, 2008–2 C.B. 1266, Notice 2010–27, 2010–1 C.B. 531, Notice 2011–8, 2011–1 C.B. 503, Notice 2012–19, 2012–1 C.B. 440, and Notice 2013–31, 2013–1 C.B. 1099.

EMPLOYEE PLANS

Notice 2014–27 Notice 2014–27

This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in April 2014; the 24-month average segment rates; the funding segment rates applicable for April 2014; and the minimum present value rates for March 2014. The rates in this notice reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112–141 (MAP–21).

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.

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 III. Administrative, Procedural, and Miscellaneous

Notice 2014–27

Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

This notice provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007. These rates reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112–141 (MAP–21). MAP–21 provides that for purposes of § 430(h)(2), the segment rates are limited by the applicable maximum percentage or the applicable minimum percentage based on the average of segment rates over a 25 year period.

YIELD CURVE AND SEGMENT RATES

Generally, except for certain plans under sections 104 and 105 of the Pension Protection Act of 2006, § 430 of the Code specifies the minimum funding requirements that apply to single employer plans pursuant to § 412. Section 430(h)(2) specifies the interest rates that must be used to determine a plan’s target normal cost and funding target. Under this provision, present value is generally determined using three 24-month average interest rates (“segment rates”), each of which applies to cash flows during specified periods. To the extent provided under § 430(h)(2)(C)(iv), these segment rates are adjusted by the applicable percentage of the 25-year average segment rates for the period ending September 30 of the year preceding the calendar year in which the plan year begins. However, an election may be made under § 430(h)(2)(D)(ii) to use the monthly yield curve in place of the segment rates.

Notice 2007–81, 2007–44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Pursuant to Notice 2007–81, the monthly corporate bond yield curve derived from March 2014 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of March 2014 are, respectively, 1.23, 4.23, and 5.31. For plan years beginning on or after January 1, 2012, the 24-month average segment rates determined under § 430(h)(2)(C)(iv) must be adjusted by the applicable percentage of the corresponding 25-year average segment rates. The 25-year average segment rates for plan years beginning in 2012, 2013, and 2014 were published in Notice 2012–55, 2012–36 I.R.B. 332, Notice 2013–11, 2013–11 I.R.B. 610, and Notice 2013–58, 2013–40 I.R.B. 294, respectively. The three 24-month average corporate bond segment rates applicable for April 2014 without adjustment, and the adjusted 24-month average segment rates taking into account the applicable percentages of the corresponding 25-year average segment rates, are as follows:

For Plan Years Beginning In 24-Month Average Segment Rates Not Adjusted Adjusted 24-Month Average Segment Rates, Based on Applicable Percentage of 25-Year Average Rates
Applicable Month First Segment Second Segment Third Segment First Segment Second Segment Third Segment
2013 April 2014 1.19 4.06 5.11 4.94 6.15 6.76
2014 April 2014 1.19 4.06 5.11 4.43 5.62 6.22

30-YEAR TREASURY SECURITIES INTEREST RATES

Generally for plan years beginning after 2007, § 431 specifies the minimum funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in section 431(c)(6)(A), based on the plan’s current liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88–73, 1988–2 C.B. 383, provides guidelines for determining the weighted average interest rate. The rate of interest on 30-year Treasury securities for March 2014 is 3.62 percent. The Service has determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in February 2044. The following rates were determined for plan years beginning in the month shown below.

For Plan Years Beginning in 30-Year Treasury Weighted Average Permissible Range
Month Year 90% to 105%
April 2014 3.44 3.10 3.62

MINIMUM PRESENT VALUE SEGMENT RATES

In general, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average. Notice 2007–81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum present value segment rates determined for March 2014 are as follows:

First Segment Second Segment Third Segment
1.23 4.23 5.31

DRAFTING INFORMATION

The principal author of this notice is Tony Montanaro of the Employee Plans, Tax Exempt and Government Entities Division. Mr. Montanaro may be e-mailed at RetirementPlanQuestions@irs.gov.

Table I
Monthly Yield Curve for March 2014
Derived from March 2014 Data
Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield
0.5 0.26 20.5 5.00 40.5 5.34 60.5 5.47 80.5 5.53
1.0 0.43 21.0 5.02 41.0 5.35 61.0 5.47 81.0 5.53
1.5 0.62 21.5 5.03 41.5 5.35 61.5 5.47 81.5 5.53
2.0 0.83 22.0 5.05 42.0 5.36 62.0 5.47 82.0 5.53
2.5 1.07 22.5 5.06 42.5 5.36 62.5 5.47 82.5 5.53
3.0 1.32 23.0 5.07 43.0 5.37 63.0 5.48 83.0 5.53
3.5 1.58 23.5 5.09 43.5 5.37 63.5 5.48 83.5 5.53
4.0 1.83 24.0 5.10 44.0 5.37 64.0 5.48 84.0 5.53
4.5 2.08 24.5 5.11 44.5 5.38 64.5 5.48 84.5 5.53
5.0 2.31 25.0 5.12 45.0 5.38 65.0 5.48 85.0 5.54
5.5 2.54 25.5 5.13 45.5 5.38 65.5 5.48 85.5 5.54
6.0 2.75 26.0 5.14 46.0 5.39 66.0 5.49 86.0 5.54
6.5 2.95 26.5 5.15 46.5 5.39 66.5 5.49 86.5 5.54
7.0 3.13 27.0 5.16 47.0 5.39 67.0 5.49 87.0 5.54
7.5 3.31 27.5 5.17 47.5 5.40 67.5 5.49 87.5 5.54
8.0 3.47 28.0 5.18 48.0 5.40 68.0 5.49 88.0 5.54
8.5 3.62 28.5 5.19 48.5 5.40 68.5 5.49 88.5 5.54
9.0 3.76 29.0 5.20 49.0 5.41 69.0 5.50 89.0 5.54
9.5 3.89 29.5 5.21 49.5 5.41 69.5 5.50 89.5 5.54
10.0 4.00 30.0 5.22 50.0 5.41 70.0 5.50 90.0 5.55
10.5 4.11 30.5 5.22 50.5 5.42 70.5 5.50 90.5 5.55
11.0 4.21 31.0 5.23 51.0 5.42 71.0 5.50 91.0 5.55
11.5 4.30 31.5 5.24 51.5 5.42 71.5 5.50 91.5 5.55
12.0 4.38 32.0 5.25 52.0 5.43 72.0 5.50 92.0 5.55
12.5 4.45 32.5 5.25 52.5 5.43 72.5 5.51 92.5 5.55
13.0 4.52 33.0 5.26 53.0 5.43 73.0 5.51 93.0 5.55
13.5 4.58 33.5 5.27 53.5 5.43 73.5 5.51 93.5 5.55
14.0 4.63 34.0 5.27 54.0 5.44 74.0 5.51 94.0 5.55
14.5 4.68 34.5 5.28 54.5 5.44 74.5 5.51 94.5 5.55
15.0 4.72 35.0 5.29 55.0 5.44 75.0 5.51 95.0 5.55
15.5 4.76 35.5 5.29 55.5 5.44 75.5 5.51 95.5 5.56
16.0 4.80 36.0 5.30 56.0 5.45 76.0 5.52 96.0 5.56
16.5 4.83 36.5 5.30 56.5 5.45 76.5 5.52 96.5 5.56
17.0 4.86 37.0 5.31 57.0 5.45 77.0 5.52 97.0 5.56
17.5 4.88 37.5 5.32 57.5 5.45 77.5 5.52 97.5 5.56
18.0 4.91 38.0 5.32 58.0 5.45 78.0 5.52 98.0 5.56
18.5 4.93 38.5 5.33 58.5 5.46 78.5 5.52 98.5 5.56
19.0 4.95 39.0 5.33 59.0 5.46 79.0 5.52 99.0 5.56
19.5 4.97 39.5 5.34 59.5 5.46 79.5 5.52 99.5 5.56
20.0 4.99 40.0 5.34 60.0 5.46 80.0 5.53 100.0 5.56

Notice 2014–28

Treatment of United States Persons that Own Stock of Passive Foreign Investment Companies Through Certain Organizations and Accounts that Are Tax Exempt

SECTION 1. PURPOSE

This notice announces that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) will amend the regulations under section 1291 of the Internal Revenue Code (Code) to provide guidance concerning the treatment of United States persons (U.S. persons) that own stock of a passive foreign investment company within the meaning of section 1297(a) (PFIC) through: an organization or an account that is exempt from tax under section 501(a) because it is described in section 501(c), 501(d), or 401(a); a state college or university described in section 511(a)(2)(B); a plan described in section 403(b) or 457(b); an individual retirement plan or annuity as defined in section 7701(a)(37); or a qualified tuition program described in section 529 or 530.

SECTION 2. BACKGROUND

.01 Sections 1291 and 1298

Section 1291 imposes a special tax and interest charge on a U.S. person that is a shareholder of a PFIC and receives an excess distribution (within the meaning of section 1291(b)) from the PFIC or recognizes gain derived from a disposition of the PFIC that is treated as an excess distribution (within the meaning of section 1291(a)(2)). Section 1298(a) sets forth attribution rules that treat a U.S. person as the owner of PFIC stock that is owned by another person. The section 1298(a) attribution rules will not apply to treat stock owned (or treated as owned) by a U.S. person as owned by any other person, except to the extent provided in regulations. Section 1298(a)(1)(B). Section 1298(f) provides that a U.S. person that is a shareholder of a PFIC must file an annual report containing the information required by the Secretary. Section 1298(g) provides that the Secretary shall provide such regulations as may be necessary or appropriate to carry out the purposes of sections 1291 through 1298.

.02 Regulations under Sections 1291 and 1298

On December 31, 2013, the Treasury Department and the IRS published temporary and proposed regulations under sections 1291 and 1298 (2014–3 I.R.B. 394) that defined the terms shareholder and indirect shareholder for purposes of section 1291. See § 1.1291–1T(b)(7) and (8). These definitions are cross-referenced in the definition of shareholder and indirect shareholder in the section 1298(f) information reporting regulations, as well as in other PFIC regulations. See §§ 1.1291–9T(j) 1.1298–1T(a). Under § 1.1291–1T(b)(7), the term shareholder means any U.S. person that owns stock of a PFIC directly or indirectly. Section 1.1291–1T(b)(8) defines the term indirect shareholder as a U.S. person that indirectly owns stock of a PFIC, and provides rules for attributing ownership of PFIC stock through domestic and foreign corporations, partnerships, S corporations, estates, and trusts. For example, § 1.1291–1T(b)(8)(iii)(C) provides that, in general, each beneficiary of a foreign or domestic nongrantor trust that directly or indirectly owns stock of a PFIC is considered to own a proportionate amount of the PFIC stock and, thus, each beneficiary that is a U.S. person is an indirect shareholder of the PFIC.

.03 Tax Exempt Organizations

In general, § 1.1291–1(e) provides that section 1291 applies to a PFIC shareholder that is an organization exempt from tax under chapter 1 of the Code only if a dividend from the PFIC owned by the organization would be taxable to the organization under subchapter F of Subtitle A of the Code (sections 501 through 530) (subchapter F). Section 1.1298–1T(c)(1) provides that a PFIC shareholder that is an organization exempt from tax under section 501(a) because it is described in section 501(c), 501(d), or 401(a), a state college or university described in section 511(a)(2)(B), a plan described in section 403(b) or 457(b), an individual retirement plan or annuity as defined in section 7701(a)(37), or a qualified tuition program described in section 529 or 530 (each a tax exempt organization or account) is required to file an annual report under section 1298(f) with respect to a PFIC only if income derived with respect to the PFIC would be taxable to the organization or account under subchapter F.

Neither the Code nor the section 1291 regulations provide specific guidance on the application of section 1291 to a U.S. person that owns stock of a PFIC through a tax exempt organization or account, other than an employees’ trust described in section 401(a) that is exempt from tax under section 501(a) (section 401(a) trust). The attribution rules that generally apply to treat a U.S. beneficiary of a nongrantor trust as owning PFIC stock owned by the trust do not apply to a U.S. person that owns an interest in a section 401(a) trust. § 1.1291–1T(b)(8)(iii)(C). Thus, a U.S. person that is a beneficiary of a section 401(a) trust is not treated as an indirect shareholder with respect to any PFIC stock held by the trust for purposes of section 1291.

Although § 1.1291–1(e) provides that organizations exempt from tax under chapter 1 of the Code generally are not subject to section 1291 with respect to their direct or indirect ownership of PFIC stock, a U.S. person that is a beneficiary of or has an interest in a tax exempt organization or account may be treated as a direct or indirect shareholder of the PFIC stock owned by the organization or account under § 1.1291–1T(b)(7) and (8), and thus may be subject to taxation under section 1291.

SECTION 3. TREATMENT OF U.S. PERSONS THAT OWN STOCK OF A PFIC THROUGH CERTAIN ORGANIZATIONS AND ACCOUNTS THAT ARE TAX EXEMPT

The Treasury Department and the IRS believe that the application of the PFIC rules to a U.S. person treated as owning stock of a PFIC through a tax exempt organization or account described in § 1.1298–1T(c)(1) would be inconsistent with the tax policies underlying the PFIC rules and the tax provisions applicable to tax exempt organizations and accounts. For example, applying the PFIC rules to a U.S. person that is treated as a shareholder of a PFIC through the U.S. person’s ownership of an individual retirement account (IRA) described in section 408(a) that owns stock of a PFIC would be inconsistent with the principle of deferred taxation provided by IRAs. Accordingly, the Treasury Department and the IRS will amend the definition of shareholder in the section 1291 regulations to provide that a U.S. person that owns stock of a PFIC through a tax exempt organization or account (as described in § 1.1298–1T(c)(1)) is not treated as a shareholder of the PFIC. This amendment will affect all regulations that cross-reference the § 1.1291–1T(b)(7) and (8) definitions of shareholder and indirect shareholder, including § 1.1298–1T(a).

SECTION 4. EFFECTIVE DATE

The regulations incorporating the guidance described in this notice will be effective for taxable years of U.S. persons that own stock of a PFIC through a tax exempt organization or account ending on or after December 31, 2013.

SECTION 5. DRAFTING INFORMATION

The principal author of this notice is Susan E. Massey of the Office of Associate Chief Counsel (International). For further information regarding this notice contact Susan Massey at (202) 317-6934 (not a toll-free number).

Notice 2014–29

Determination of Housing Cost Amounts Eligible for Exclusion or Deduction for 2014

SECTION 1. PURPOSE

This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code (Code) for specific locations for 2014. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.

SECTION 2. BACKGROUND

Section 911(a) of the Code allows a qualified individual to elect to exclude from gross income the foreign earned income and housing cost amount of such individual. Section 911(c)(1) defines the term “housing cost amount” as an amount equal to the excess of (A) the housing expenses of an individual for the taxable year to the extent such expenses do not exceed the amount determined under section 911(c)(2), over (B) 16 percent of the exclusion amount (computed on a daily basis) in effect under section 911(b)(2)(D) for the calendar year in which such taxable year begins ($271.78 per day for 2014, or $99,200 for the full year), multiplied by the number of days of that taxable year within the applicable period described in section 911(d)(1). The applicable period is the period during which the individual meets the tax home requirement of section 911(d)(1) and either the bona fide residence requirement of section 911(d)(1)(A) or the physical presence requirement of section 911(d)(1)(B). Assuming that the entire taxable year of a qualified individual is within the applicable period, the section 911(c)(1)(B) amount for 2014 is $15,872 ($99,200 x .16).

Section 911(c)(2)(A) of the Code limits the housing expenses taken into account in section 911(c)(1)(A) to an amount equal to (i) 30 percent (adjusted as may be provided under the Secretary’s authority under section 911(c)(2)(B)) of the amount in effect under section 911(b)(2)(D) for the calendar year in which the taxable year of the individual begins, multiplied by (ii) the number of days of that taxable year within the applicable period described in section 911(d)(1). Thus, under this general limitation, a qualified individual whose entire taxable year is within the applicable period is limited to maximum housing expenses of $29,760 ($99,200 x .30) in 2014.

Section 911(c)(2)(B) of the Code authorizes the Secretary to issue regulations or other guidance to adjust the percentage under section 911(c)(2)(A)(i) based on geographic differences in housing costs relative to housing costs in the United States. Pursuant to this authority, the Internal Revenue Service (IRS) and the Treasury Department published Notice 2006–87, 2006–2 C.B. 766, and Notice 2007–25, 2007–1 C.B. 760, for 2006, Notice 2007–77, 2007–2 C.B. 735, for 2007, Notice 2008–107, 2008–2 C.B. 1266, for 2008 and 2009, Notice 2010–27, 2010–1 C.B. 531, for 2009 and 2010, Notice 2011–8, 2011–1 C.B. 503, for 2010 and 2011, Notice 2012–19, 2012–1 C.B. 440 for 2011 and 2012, and Notice 2013–31, 2013–1 C.B. 1099, for 2012 and 2013, to provide adjustments to the limitation on housing expenses for qualified individuals incurring housing expenses in countries with high housing costs relative to housing costs in the United States.

SECTION 3. TABLE OF ADJUSTED LIMITATIONS FOR 2014

The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $29,760) for 2014.

Country Location Limitation on Housing Expenses (full year) Limitation on Housing Expenses (daily)
Angola Luanda 84,000 230.14
Argentina Buenos Aires 56,500 154.79
Australia Adelaide 29,900 81.92
Australia Darwin, Northern Country 30,600 83.84
Australia Melbourne 37,800 103.56
Australia Perth 40,400 110.68
Australia Sydney 32,782 89.81
Austria Vienna 35,400 96.99
Bahamas, The Grand Bahama Island 30,900 84.66
Bahamas, The Nassau 49,700 136.16
Bahrain Bahrain 44,000 120.55
Barbados Barbados 37,700 103.29
Belgium Antwerp 36,600 100.27
Belgium Brussels 49,000 134.25
Belgium Gosselies 43,800 120.00
Belgium Hoogbuul 36,600 100.27
Belgium Mons 43,800 120.00
Belgium SHAPE/Chievres 43,800 120.00
Bermuda Bermuda 90,000 246.58
Bosnia-Herzegovina Sarajevo 31,300 85.75
Brazil Brasilia 41,100 112.60
Brazil Rio de Janeiro 35,100 96.16
Brazil Sao Paulo 56,600 155.07
Canada Calgary 44,200 121.10
Canada Dartmouth 36,700 100.55
Canada Edmonton 35,100 96.16
Canada Halifax 36,700 100.55
Canada London, Ontario 30,000 82.19
Canada Montreal 56,500 154.79
Canada Ottawa 50,600 138.63
Canada Quebec 42,900 117.53
Canada Toronto 52,400 143.56
Canada Vancouver 46,500 127.40
Canada Victoria 33,200 90.96
Canada Winnipeg 31,700 86.85
Cayman Islands Grand Cayman 48,000 131.51
Chile Santiago 50,400 138.08
China Beijing 71,200 195.07
China Hong Kong 114,300 313.15
China Shanghai 57,001 156.17
Colombia Bogota 58,700 160.82
Colombia All cities other than Bogota 49,400 135.34
Costa Rica San Jose 32,000 87.67
Denmark Copenhagen 43,704 119.74
Dominican Republic Santo Domingo 45,500 124.66
Ecuador Guayaquil 30,800 84.38
Ecuador Quito 37,500 102.74
Estonia Tallinn 46,600 127.67
France Garches 86,000 235.62
France Le Havre 34,700 95.07
France Lyon 47,700 130.68
France Marseille 46,400 127.12
France Montpellier 38,400 105.21
France Paris 86,000 235.62
France Sevres 86,000 235.62
France Suresnes 86,000 235.62
France Versailles 86,000 235.62
Germany Babenhausen 42,200 115.62
Germany Bad Aibling 36,000 98.63
Germany Bad Nauheim 33,700 92.33
Germany Baumholder 40,800 111.78
Germany Berlin 51,500 141.10
Germany Birkenfeld 40,800 111.78
Germany Boeblingen 51,200 140.27
Germany Bonn 42,000 115.07
Germany Butzbach 33,000 90.41
Germany Cologne 56,200 153.97
Germany Darmstadt 42,200 115.62
Germany Frankfurt am Main 44,000 120.55
Germany Friedberg 33,700 92.33
Germany Garmisch-Partenkirchen 39,000 106.85
Germany Gelnhausen 53,100 145.48
Germany Germersheim 31,900 87.40
Germany Giebelstadt 36,400 99.73
Germany Giessen 36,000 98.63
Germany Grafenwoehr 42,000 115.07
Germany Hanau 53,100 145.48
Germany Hannover 31,500 86.30
Germany Heidelberg 39,400 107.95
Germany Idar-Oberstein 40,800 111.78
Germany Ingolstadt 59,400 162.74
Germany Kaiserslautern, Landkreis 50,900 139.45
Germany Kitzingen 36,400 99.73
Germany Leimen 39,400 107.95
Germany Ludwigsburg 51,200 140.27
Germany Mainz 57,000 156.16
Germany Mannheim 39,400 107.95
Germany Munich 59,400 162.74
Germany Nellingen 51,200 140.27
Germany Neubruecke 40,800 111.78
Germany Ober Ramstadt 42,200 115.62
Germany Oberammergau 39,000 106.85
Germany Pfullendorf 41,400 113.42
Germany Pirmasens 50,900 139.45
Germany Rheinau 39,400 107.95
Germany Schwetzingen 39,400 107.95
Germany Seckenheim 39,400 107.95
Germany Sembach 50,900 139.45
Germany Stuttgart 51,200 140.27
Germany Vilseck 42,000 115.07
Germany Wahn 42,000 115.07
Germany Wertheim 36,400 99.73
Germany Wiesbaden 57,000 156.16
Germany Wuerzburg 36,400 99.73
Germany Zweibruecken 50,900 139.45
Germany All cities other than Augsburg, Babenhausen, Bad Aibling, Bad Kreuznach, Bad Nauheim, Baumholder, Berchtesgaden, Berlin, Birkenfeld, Boeblingen, Bonn, Bremen, Bremerhaven, Butzbach, Cologne, Darmstadt, Delmenhorst, Duesseldorf, Erlangen, Flensburg, Frankfurt am Main, Friedberg, Fuerth, Garlstedt, Garmisch-Partenkirchen, Geilenkirchen, Gelnhausen, Germersheim, Giebelstadt, Giessen, Grafenwoehr, Grefrath, Greven, Gruenstadt, Hamburg, Hanau, Handorf, Hannover, Heidelberg, Heilbronn, Herongen, Idar-Oberstein, Ingolstadt, Kaiserslautern, Landkreis, Kalkar, Karlsruhe, Kerpen, Kitzingen, Koblenz, Leimen, Leipzig, Ludwigsburg, Mainz, Mannheim, Mayen, Moenchen-Gladbach, Muenster, Munich, Nellingen, Neubruecke, Noervenich, Nuernberg, Ober Ramstadt, Oberammergau, Osterholz-Scharmbeck, Pirmasens, Rheinau, Rheinberg, Schwabach, Schwetzingen, Seckenheim, Sembach, Stuttgart, Twisteden, Vilseck, Wahn, Wertheim, Wiesbaden, Worms, Wuerzburg, Zirndorf and Zweibruecken 41,400 113.42
Ghana Accra 36,000 98.63
Greece Argyroupolis 32,900 90.14
Greece Athens 42,200 115.62
Greece Elefsis 42,200 115.62
Greece Ellinikon 42,200 115.62
Greece Mt. Hortiatis 32,900 90.14
Greece Mt. Parnis 42,200 115.62
Greece Mt. Pateras 42,200 115.62
Greece Nea Makri 42,200 115.62
Greece Perivolaki 32,900 90.14
Greece Piraeus 42,200 115.62
Greece Tanagra 42,200 115.62
Greece Thessaloniki 32,900 90.14
Guatemala Guatemala City 41,800 114.52
Guyana Georgetown 35,000 95.89
Holy See, The Holy See, The 57,300 156.99
Hungary Budapest 32,500 89.04
Hungary Papá 44,500 121.92
India Mumbai 67,920 186.08
India New Delhi 56,124 153.76
Indonesia Jakarta 37,776 103.50
Ireland Dublin 49,800 136.44
Ireland Shannon Area 39,300 107.67
Israel Tel Aviv 50,800 139.18
Italy Catania 33,500 91.78
Italy Genoa 41,800 114.52
Italy Gioia Tauro 31,200 85.48
Italy La Spezia 40,400 110.68
Italy Leghorn 35,900 98.36
Italy Milan 85,600 234.52
Italy Naples 54,400 149.04
Italy Parma 43,500 119.18
Italy Pisa 35,900 98.36
Italy Pordenone-Aviano 43,500 119.18
Italy Rome 57,300 156.99
Italy Sigonella 33,500 91.78
Italy Turin 42,800 117.26
Italy Vicenza 45,100 123.56
Italy All cities other than Avellino, Brindisi, Catania, Florence, Gaeta, Genoa, Gioia Tauro, La Spezia, Leghorn, Milan, Mount Vergine, Naples, Nettuno, Parma, Pisa, Pordenone-Aviano, Rome, Sardinia, Sigonella, Turin, Verona, and Vicenza 35,000 95.89
Jamaica Kingston 41,200 112.88
Japan Akashi 32,000 87.67
Japan Atsugi 40,900 112.05
Japan Camp Zama 40,900 112.05
Japan Chiba-Ken 40,900 112.05
Japan Fussa 40,900 112.05
Japan Gifu 74,300 203.56
Japan Gotemba 30,600 83.84
Japan Haneda 40,900 112.05
Japan Iwakuni 33,000 90.41
Japan Kanagawa-Ken 40,900 112.05
Japan Komaki 74,300 203.56
Japan Machidi-Shi 40,900 112.05
Japan Misawa 34,800 95.34
Japan Nagoya 74,300 203.56
Japan Okinawa Prefecture 59,400 162.74
Japan Osaka-Kobe 90,664 248.39
Japan Sagamihara 40,900 112.05
Japan Saitama-Ken 40,900 112.05
Japan Sasebo 35,400 96.99
Japan Tachikawa 40,900 112.05
Japan Tokyo 96,000 263.01
Japan Tokyo-to 40,900 112.05
Japan Yokohama 52,600 144.11
Japan Yokosuka 47,700 130.68
Japan Yokota 40,900 112.05
Kazakhstan Almaty 48,000 131.51
Korea Ammo Depot #9 30,100 82.47
Korea Camp Carroll 32,600 89.32
Korea Camp Colbern 57,100 156.44
Korea Camp Market 57,100 156.44
Korea Camp Mercer 57,100 156.44
Korea Chinhae 30,900 84.66
Korea K-16 57,100 156.44
Korea Kimhae 31,100 85.21
Korea Kimpo Airfield 57,100 156.44
Korea Munsan 35,000 95.89
Korea Osan AB 36,000 98.63
Korea Pusan 31,100 85.21
Korea Pyongtaek 35,700 97.81
Korea Seoul 57,100 156.44
Korea Suwon 57,100 156.44
Korea Taegu 34,300 93.97
Korea Tongduchon 31,900 87.40
Korea Uijongbu 33,800 92.60
Korea Waegwan 32,600 89.32
Korea All cities other than Ammo Depot #9, Camp Carroll, Camp Colbern, Camp Market, Camp Mercer, Changwon, Chinhae, Chunchon, K-16, Kimhae, Kimpo Airfield, Kunsun, Kwangju, Munsan, Osan AB, Pusan, Pyongtaek, Seoul, Suwon, Taegu, Tongduchon, Uijongbu, and Waegwan 33,000 90.41
Kuwait Kuwait City 64,400 176.44
Kuwait All cities other than Kuwait City 57,700 158.08
Luxembourg Luxembourg 47,000 128.77
Macedonia Skopje 35,400 96.99
Malaysia Kuala Lumpur 46,200 126.58
Malaysia All cities other than Kuala Lumpur 33,700 92.33
Malta Malta 55,100 150.96
Mexico Mazatlan 31,000 84.93
Mexico Merida 37,900 103.84
Mexico Mexico City 47,900 131.23
Mexico Monterrey 33,200 90.96
Mexico All cities other than Ciudad Juarez, Cuernavaca, Guadalajara, Hermosillo, Matamoros, Mazatlan, Merida, Metapa, Mexico City, Monterrey, Nogales, Nuevo Laredo, Reynosa, Tapachula, Tijuana, Tuxtla Gutierrez, and Veracruz 39,400 107.95
Mozambique Maputo 39,500 108.22
Namibia Windhoek 32,100 87.95
Netherlands Amsterdam 52,900 144.93
Netherlands Aruba 36,000 98.63
Netherlands Brunssum 41,000 112.33
Netherlands Eygelshoven 41,000 112.33
Netherlands Hague, The 68,300 187.12
Netherlands Heerlen 41,000 112.33
Netherlands Hoensbroek 41,000 112.33
Netherlands Hulsberg 41,000 112.33
Netherlands Kerkrade 41,000 112.33
Netherlands Landgraaf 41,000 112.33
Netherlands Maastricht 41,000 112.33
Netherlands Papendrecht 41,100 112.60
Netherlands Rotterdam 41,100 112.60
Netherlands Schaesburg 41,000 112.33
Netherlands Schinnen 41,000 112.33
Netherlands Schiphol 52,900 144.93
Netherlands Ypenburg 68,300 187.12
Netherlands All cities other than Amsterdam, Aruba, Brunssum, Coevorden, Eygelshoven, The Hague, Heerlen, Hoensbroek, Hulsberg, Kerkrade, Landgraaf, Maastricht, Margraten, Papendrecht, Rotterdam, Schaesburg, Schinnen, Schiphol, and Ypenburg 40,600 111.23
Netherlands Antilles Curacao 45,800 125.48
New Zealand Auckland 35,700 97.81
New Zealand Christchurch 32,100 87.95
New Zealand Wellington 33,800 92.60
Nicaragua Managua 31,800 87.12
Nigeria Abuja 36,000 98.63
Norway Oslo 49,000 134.25
Norway Stavanger 41,600 113.97
Norway All cities other than Oslo and Stavanger 37,700 103.29
Panama Panama City 35,500 97.26
Paraguay Asuncion 31,100 85.21
Peru Lima 39,100 107.12
Philippines Cavite 39,000 106.85
Philippines Manila 39,000 106.85
Poland Poland 29,400 80.55
Portugal Alverca 52,400 143.56
Portugal Lisbon 52,400 143.56
Qatar Doha 36,264 99.35
Qatar All cities other than Doha 32,400 88.77
Russia Moscow 108,000 295.89
Russia Saint Petersburg 60,000 164.38
Russia Sakhalin Island 77,500 212.33
Russia Vladivostok 77,500 212.33
Russia Yekaterinburg 47,400 129.86
Rwanda Kigali 31,500 86.30
Saudi Arabia Jeddah 30,667 84.02
Saudi Arabia Riyadh 40,000 109.59
Singapore Singapore 86,300 236.44
South Africa Pretoria 39,300 107.67
Spain Barcelona 40,600 111.23
Spain Madrid 69,800 191.23
Spain Rota 42,600 116.71
Spain Valencia 40,100 109.86
Spain All cities other than Barcelona, Madrid, Rota, Seville, Seville Province, and Valencia 30,300 83.01
Suriname Paramaribo 33,000 90.41
Switzerland Bern 72,200 197.81
Switzerland Geneva 100,500 275.34
Switzerland Zurich 39,219 107.45
Switzerland All cities other than Bern, Geneva and Zurich 32,900 90.14
Taiwan Taipei 46,188 126.54
Tanzania Dar Es Salaam 44,000 120.55
Thailand Bangkok 59,000 161.64
Trinidad and Tobago Port of Spain 54,500 149.32
Turkey Izmir-Cigli 31,600 86.58
Turkey Yamanlar 31,600 86.58
Ukraine Kiev 72,000 197.26
United Arab Emirates Abu Dhabi 49,687 136.13
United Arab Emirates Dubai 57,174 156.64
United Kingdom Basingstoke 41,099 112.60
United Kingdom Bath 41,000 112.33
United Kingdom Bracknell 62,100 170.14
United Kingdom Bristol 40,500 110.96
United Kingdom Brookwood 44,200 121.10
United Kingdom Cambridge 44,100 120.82
United Kingdom Caversham 73,800 202.19
United Kingdom Cheltenham 53,600 146.85
United Kingdom Croughton 45,000 123.29
United Kingdom Fairford 43,700 119.73
United Kingdom Farnborough 54,700 149.86
United Kingdom Felixstowe 42,500 116.44
United Kingdom Gibraltar 44,616 122.24
United Kingdom Harrogate 47,400 129.86
United Kingdom High Wycombe 62,100 170.14
United Kingdom Kemble 43,700 119.73
United Kingdom Lakenheath 55,900 153.15
United Kingdom Liverpool 39,800 109.04
United Kingdom London 88,700 243.01
United Kingdom Loudwater 69,900 191.51
United Kingdom Menwith Hill 47,400 129.86
United Kingdom Mildenhall 55,900 153.15
United Kingdom Oxfordshire 44,500 121.92
United Kingdom Plymouth 44,500 121.92
United Kingdom Portsmouth 44,500 121.92
United Kingdom Reading 62,100 170.14
United Kingdom Rochester 45,700 125.21
United Kingdom Samlesbury 44,200 121.10
United Kingdom Southampton 44,200 121.10
United Kingdom Surrey 48,402 132.61
United Kingdom Waterbeach 45,500 124.66
United Kingdom Wiltshire 42,300 115.89
United Kingdom All cities other than Basingstoke, Bath, Belfast, Birmingham, Bracknell, Bristol, Brookwood, Brough, Cambridge, Caversham, Chelmsford, Cheltenham, Chicksands, Croughton, Dunstable, Edinburgh, Edzell, Fairford, Farnborough, Felixstowe, Ft. Halstead, Gibraltar, Glenrothes, Greenham Common, Harrogate, High Wycombe, Hythe, Kemble, Lakenheath, Liverpool, London, Loudwater, Menwith Hill, Mildenhall, Nottingham, Oxfordshire, Plymouth, Portsmouth, Reading, Rochester, Samlesbury, Southampton, Surrey, Waterbeach, Welford, West Byfleet, and Wiltshire 44,200 121.10
Venezuela Caracas 57,000 156.16
Vietnam Hanoi 46,800 128.22
Vietnam Ho Chi Minh City 42,000 115.07

SECTION 4. ELECTION TO APPLY 2014 ADJUSTED LIMITATIONS TO 2013 TAXABLE YEAR

For some locations, the limitation on housing expenses provided in section 3 of this notice may be higher than the limitation on housing expenses provided in the “Table of Adjusted Limitations for 2013” in Notice 2013–31. A qualified individual incurring housing expenses in such a location during 2013 may apply the adjusted limitation on housing expenses provided in section 3 of this notice in lieu of the amounts provided in the “Table of Adjusted Limitations for 2013” in Notice 2013–31 (and as set forth in the Instructions to Form 2555 (2013)).

Treasury and the IRS anticipate that future annual notices providing adjustments to housing expense limitations will make a similar election available to qualified individuals that incur housing expenses in the immediately preceding year. For example, when adjusted housing expense limitations for 2015 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2014 taxable year.

EFFECT ON OTHER DOCUMENTS

This notice supersedes Notice 2006–87, 2006–2 C.B. 766, Notice 2007–25, 2007–1 C.B. 760, Notice 2007–77, 2007–2 C.B. 735, Notice 2008–107, 2008–2 C.B. 1266, Notice 2010–27, 2010–1 C.B. 531, Notice 2011–8, 2011–1 C.B. 503, Notice 2012–19, 2012–1 C.B. 440, and Notice 2013–31, 2013–1 C.B. 1099.

EFFECTIVE DATE

This notice is effective for taxable years beginning on or after January 1, 2014. However, as provided in section 4, a taxpayer may elect to apply the 2014 adjusted housing limitations contained in section 3 of this notice to his or her taxable year beginning in 2013.

DRAFTING INFORMATION

The principal author of this notice is Susan E. Massey of the Office of Associate Chief Counsel (International). For further information regarding this notice contact Ms. Massey at (202) 317-6934 (not a toll-free number).

Part IV. Items of General Interest

Announcement 2014–17

Update on Jurisdictions Treated as Having an IGA in Effect and on FATCA Financial Institution Registration

Since the 2012 release of the Model 1 and Model 2 intergovernmental agreements (IGAs) to implement the Foreign Account Tax Compliance Act (FATCA), there has been robust and growing interest from jurisdictions worldwide to enter into IGAs. To date, the United States has signed IGAs with 26 jurisdictions and has reached agreements in substance or is in advanced discussions with many others. Foreign financial institutions (FFIs) and other stakeholders continue to express strong support for a broad IGA network as a way to facilitate FATCA compliance while avoiding legal conflicts, and to more effectively and efficiently implement cross-border tax information reporting. They have also expressed practical concerns about the status of FFIs in jurisdictions that are known to be in an advanced stage of concluding an IGA, but have not yet signed an agreement. For this reason, the U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) are issuing this announcement to provide FFIs in jurisdictions that already have reached an agreement in substance on the terms of an IGA with the clarity they need to prepare to comply with FATCA. This announcement also addresses stakeholders’ practical concerns by allowing an FFI ten additional days to register in preparation for FATCA implementation on July 1 and still ensure that its Global Intermediary Identification Number (GIIN) will appear on the first public list of GIINs.

Background

The final regulations provide that the IRS will publish a list identifying all countries that are treated as having a Model 1 or Model 2 IGA in effect. Reg. §§ 1.1471–1(b)(78) and (79). Notice 2013–43, 2013–31 I.R.B. 113, provides that this list is maintained on the Treasury website at http://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA-Archive.aspx. A link to the list is also available on the IRS website at http://www.irs.gov/Businesses/Corporations/Information-for-Foreign-Financial-Institutions. Notice 2013–43 further provides that Treasury and the IRS intend to include on this list jurisdictions that have signed, but may not yet have brought into force, an IGA.

The final regulations generally provide that, in order for withholding not to apply, a withholding agent must obtain an FFI’s GIIN for payments made after June 30, 2014, and must confirm that the GIIN appears on the IRS FFI List. A special rule, however, provides that a withholding agent does not need to obtain a reporting Model 1 FFI’s GIIN for payments made before January 1, 2015. See Reg. § 1.1471–3(d)(4)(iv)(A). Notice 2013–43 and Announcement 2014–1, 2014–2 I.R.B. 393, indicate that FFIs must register on the FATCA registration website by April 25, 2014 (GMT -5), to ensure they are included on the first IRS FFI List, which is expected to be electronically available on June 2, 2014 (GMT -5).

Stakeholders generally have expressed concerns that FFIs located in jurisdictions that are expected to sign an IGA, but have not yet signed the agreement, are unable to plan effectively and efficiently for the July 1 implementation of FATCA given the uncertainty regarding when the relevant IGA may be signed and therefore treated as being in effect. More specifically, stakeholders have expressed concern that certain jurisdictions will not have signed an IGA by April 25, 2014, and accordingly that FFIs in those jurisdictions will not be able to timely register consistent with their expected IGA status. For example, some FFIs that expect to be reporting Model 2 FFIs may not be able to register by April 25 if legal impediments would prevent them from agreeing to the terms of the FFI Agreement that would apply absent the modifications applicable to reporting Model 2 FFIs under a signed Model 2 IGA. Some FFIs that expect to be reporting Model 1 FFIs and therefore to rely on the special rule providing that withholding agents do not need to obtain GIINs of reporting Model 1 FFIs before January 1, 2015, are concerned about missing the April 25 deadline in case the relevant IGA is not in fact signed, and therefore treated as being in effect, by July 1. Other FFIs that expect to be reporting Model 1 FFIs wish to ensure their inclusion on the first IRS FFI List in order to simplify the documentation of their status with withholding agents (even though withholding agents should not require reporting Model 1 FFIs to provide GIINs until January 1, 2015), but are concerned that they will not be able to register as reporting Model 1 FFIs before April 25 if their jurisdiction’s IGA is not signed, and therefore treated as being in effect, by that date.

Expansion of IGAs Treated as Being in Effect to Include Agreements in Substance

This announcement aims to address these concerns by providing that the jurisdictions listed on the Treasury and IRS websites as jurisdictions that are treated as having an IGA in effect will also include jurisdictions that, before July 1, 2014, have reached agreements in substance with the United States on the terms of an IGA and have consented to be included on the Treasury and IRS list, even if those agreements have not yet been signed. Such jurisdictions will be treated as having an IGA in effect from the date that the jurisdiction provides its consent (or April 2, 2014, the date of the public release of this announcement, if later) until December 31, 2014, the date by which the IGA must be signed in order for this status to continue without interruption. Treasury expects to add jurisdictions to this list in the coming weeks as additional jurisdictions consent to inclusion on the list and additional agreements in substance are reached. Jurisdictions that reach agreements in substance on or after July 1, 2014, will not be included in the list of jurisdictions that are treated as having an IGA in effect until the IGA is signed.

The text of the agreements in substance that are treated as being in effect will not be published by the IRS or Treasury until the IGA is signed. Instead, the list will specify only whether the relevant IGA is a Model 1 or a Model 2 IGA. Until the IGA is signed, the jurisdiction will be treated as having in effect the relevant model provisions. This means that an FFI resident in, or organized under the laws of, a jurisdiction that is listed on the Treasury and IRS websites as having reached an agreement in substance will be permitted to register on the FATCA registration website consistent with its treatment under the relevant model IGA and will be permitted to certify its status to a withholding agent consistent with that treatment. Treasury generally has a policy of not deviating from the model text except in limited circumstances in Annex II. Any modifications made in the relevant IGA to the model Annex II categories of exempt beneficial owners, deemed compliant FFIs, and accounts excluded from the definition of financial accounts will therefore not be applicable until the IGA is signed.

A jurisdiction may be removed from the list of jurisdictions that are treated as having an IGA in effect if Treasury determines that the jurisdiction is not taking the steps necessary to bring the IGA into force within a reasonable period of time, and, as noted above, a jurisdiction will be removed from the list if the jurisdiction fails to sign the IGA by December 31, 2014. If a jurisdiction is removed from the list, FFIs that are resident in, or organized under the laws of, that jurisdiction, and branches that are located in that jurisdiction, will, from the first day of the month following the month of removal, no longer be entitled to the status that would be provided under the IGA, and will be required to update their status on the FATCA registration website accordingly.

New Dates for Registering to Ensure GIIN Inclusion on the IRS FFI List

As described in Notice 2013–43, FFIs resident in, or organized under the laws of, a jurisdiction that is treated as having an IGA in effect, which, pursuant to this announcement includes jurisdictions listed on the Treasury and IRS websites as having reached agreements in substance on IGAs before July 1, 2014, should register on the FATCA registration website as a registered deemed-compliant FFI (which would include all reporting Model 1 FFIs) or a participating FFI (which would include all reporting Model 2 FFIs), as applicable. Importantly, withholding agents are still not required to obtain the GIINs of FFIs that are treated as reporting Model 1 FFIs before January 1, 2015.

Based on the IRS experience with the registration system and GIIN generation process to date, the IRS now believes that it can ensure registering FFIs that their GIINs will be included on the June 2 IRS FFI List if their registrations are finalized by May 5, 2014 (GMT -5), rather than April 25, 2014, as originally announced. Further, the IRS believes it can ensure registering FFIs that their GIINs will be included on the July 1 IRS FFI List if their registrations are finalized by June 3, 2014 (GMT -5). FFIs that finalize their registrations after May 5 or June 3 may still be included on the June 2 or July 1 IRS FFI List, respectively; however, the IRS cannot provide assurance that this will be the case. The IRS will continue processing registrations in the order received; however, processing times may increase as the May 5 and June 3 dates approach.

Finally, Treasury and the IRS remind all withholding agents that, in accordance with Reg. § 1.1471–3(e)(3), a withholding agent that receives a Form W–8 from a payee with a GIIN that does not yet appear on the published IRS FFI List has 90 days to verify that the GIIN appears on the list before the withholding agent will be treated as having reason to know that the chapter 4 status of the payee is unreliable or incorrect. In addition, a withholding agent that receives a Form W–8 from a payee indicating that the payee has applied for a GIIN has 90 days to obtain the GIIN from the payee and verify it against the IRS FFI List before the withholding agent will be treated as having reason to know that the chapter 4 status of the payee is unreliable or incorrect.

DRAFTING INFORMATION

The principal author of this announcement is Michael Kaercher of the Office of Associate Chief Counsel (International). For further information regarding this announcement, contact Mr. Kaercher at 202-317-6942 (not a toll-free number).

Definition of Terms and Abbreviations

Definition of Terms

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

Amplified describes a situation where no change is being made in a prior 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.

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 2013–27 through 2013–52 is in Internal Revenue Bulletin 2013–52, dated December 23, 2013.

Bulletins 2014–1 through 2014–18

Announcements

Article Issue Link Page
2014-1 2014-2 I.R.B. 2014-2 393
2014-2 2014-4 I.R.B. 2014-4 448
2014-4 2014-7 I.R.B. 2014-7 523
2014-05 2014-6 I.R.B. 2014-6 507
2014-06 2014-6 I.R.B. 2014-6 508
2014-07 2014-6 I.R.B. 2014-6 508
2014-08 2014-6 I.R.B. 2014-6 508
2014-09 2014-6 I.R.B. 2014-6 508
2014-10 2014-6 I.R.B. 2014-6 508
2014-11 2014-6 I.R.B. 2014-6 508
2014-12 2014-6 I.R.B. 2014-6 509
2014-13 2014-10 I.R.B. 2014-10 620
2014-14 2014-16 I.R.B. 2014-16 948
2014-15 2014-16 I.R.B. 2014-16 973
2014-16 2014-17 I.R.B. 2014-17 983
2014-17 2014-18 I.R.B. 2014-18 1004
2014-18 2014-17 I.R.B. 2014-17 983
2014-19 2014-17 I.R.B. 2014-17 984


Notices

Article Issue Link Page
2014-1 2014-2 I.R.B. 2014-2 270
2014-2 2014-3 I.R.B. 2014-3 407
2014-3 2014-3 I.R.B. 2014-3 408
2014-4 2014-2 I.R.B. 2014-2 274
2014-5 2014-2 I.R.B. 2014-2 276
2014-6 2014-2 I.R.B. 2014-2 279
2014-7 2014-4 I.R.B. 2014-4 445
2014-8 2014-5 I.R.B. 2014-5 452
2014-9 2014-5 I.R.B. 2014-5 455
2014-10 2014-9 I.R.B. 2014-9 605
2014-11 2014-13 I.R.B. 2014-13 880
2014-12 2014-9 I.R.B. 2014-9 606
2014-13 2014-10 I.R.B. 2014-10 616
2014-14 2014-13 I.R.B. 2014-13 881
2014-15 2014-12 I.R.B. 2014-12 661
2014-16 2014-14 I.R.B. 2014-14 920
2014-17 2014-13 I.R.B. 2014-13 881
2014-18 2014-15 I.R.B. 2014-15 926
2014-19 2014-17 I.R.B. 2014-17 979
2014-20 2014-16 I.R.B. 2014-16 937
2014-21 2014-16 I.R.B. 2014-16 938
2014-22 2014-16 I.R.B. 2014-16 940
2014-23 2014-16 I.R.B. 2014-16 942
2014-24 2014-16 I.R.B. 2014-16 942
2014-25 2014-17 I.R.B. 2014-17 981
2014-27 2014-18 I.R.B. 2014-18 987
2014-28 2014-18 I.R.B. 2014-18 990
2014-29 2014-18 I.R.B. 2014-18 991


Proposed Regulations

Article Issue Link Page
REG-154890-03 2014-6 I.R.B. 2014-6 504
REG-159420-04 2014-2 I.R.B. 2014-2 374
REG-144468-05 2014-6 I.R.B. 2014-6 474
REG-163195-05 2014-15 I.R.B. 2014-15 930
REG-119305-11 2014-8 I.R.B. 2014-8 524
REG-140974-11 2014-3 I.R.B. 2014-3 438
REG-121534-12 2014-6 I.R.B. 2014-6 473
REG-122706-12 2014-11 I.R.B. 2014-11 647
REG-134361-12 2014-13 I.R.B. 2014-13 895
REG-136984-12 2014-2 I.R.B. 2014-2 378
REG-113350-13 2014-3 I.R.B. 2014-3 440
REG-130967-13 2014-13 I.R.B. 2014-13 884
REG-141036-13 2014-7 I.R.B. 2014-7 516
REG-143172-13 2014-2 I.R.B. 2014-2 383
REG-108641-14 2014-15 I.R.B. 2014-15 928


Revenue Procedures

Article Issue Link Page
2014-1 2014-1 I.R.B. 2014-1 1
2014-2 2014-1 I.R.B. 2014-1 90
2014-3 2014-1 I.R.B. 2014-1 111
2014-4 2014-1 I.R.B. 2014-1 125
2014-5 2014-1 I.R.B. 2014-1 169
2014-6 2014-1 I.R.B. 2014-1 198
2014-7 2014-1 I.R.B. 2014-1 238
2014-8 2014-1 I.R.B. 2014-1 242
2014-9 2014-2 I.R.B. 2014-2 281
2014-10 2014-2 I.R.B. 2014-2 293
2014-11 2014-3 I.R.B. 2014-3 411
2014-12 2014-3 I.R.B. 2014-3 415
2014-13 2014-3 I.R.B. 2014-3 419
2014-14 2014-2 I.R.B. 2014-2 295
2014-15 2014-5 I.R.B. 2014-5 456
2014-16 2014-9 I.R.B. 2014-9 606
2014-17 2014-12 I.R.B. 2014-12 661
2014-18 2014-7 I.R.B. 2014-7 513
2014-19 2014-10 I.R.B. 2014-10 619
2014-20 2014-9 I.R.B. 2014-9 614
2014-21 2014-11 I.R.B. 2014-11 641
2014-22 2014-11 I.R.B. 2014-11 646
2014-23 2014-12 I.R.B. 2014-12 685
2014-24 2014-13 I.R.B. 2014-13 879
2014-25 2014-15 I.R.B. 2014-15 927
2014-28 2014-16 I.R.B. 2014-16 944


Revenue Rulings

Article Issue Link Page
2014-1 2014-2 I.R.B. 2014-2 263
2014-2 2014-2 I.R.B. 2014-2 255
2014-3 2014-2 I.R.B. 2014-2 259
2014-4 2014-5 I.R.B. 2014-5 449
2014-6 2014-7 I.R.B. 2014-7 510
2014-8 2014-11 I.R.B. 2014-11 624
2014-9 2014-17 I.R.B. 2014-17 975
2014-10 2014-14 I.R.B. 2014-14 906
2014-11 2014-14 I.R.B. 2014-14 906
2014-12 2014-15 I.R.B. 2014-15 923


Treasury Decisions

Article Issue Link Page
9649 2014-2 I.R.B. 2014-2 265
9650 2014-3 I.R.B. 2014-3 394
9651 2014-4 I.R.B. 2014-4 441
9652 2014-12 I.R.B. 2014-12 655
9653 2014-6 I.R.B. 2014-6 460
9654 2014-6 I.R.B. 2014-6 461
9655 2014-9 I.R.B. 2014-9 541
9656 2014-11 I.R.B. 2014-11 626
9657 2014-13 I.R.B. 2014-13 687
9658 2014-13 I.R.B. 2014-13 748
9659 2014-12 I.R.B. 2014-12 653
9660 2014-13 I.R.B. 2014-13 842
9661 2014-13 I.R.B. 2014-13 855
9662 2014-16 I.R.B. 2014-16 933


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 2013–27 through 2013–52 is in Internal Revenue Bulletin 2013–52, dated December 23, 2013.

Bulletins 2014–1 through 2014–18

Announcements

Old Article Action New Article Issue Link Page
2007-44 Modified by Ann. 2014-4 2014-7 I.R.B. 2014-7 523
2011-49 Modified by Ann. 2014-4 2014-7 I.R.B. 2014-7 523


Notices

Old Article Action New Article Issue Link Page
2003-37 Obsoleted by REG-163195-05 2014-15 I.R.B. 2014-15 930
2006-87, 2006-2 C.B. 766 Superseded by Notice 2014-29 2014-18 I.R.B. 2014-18 991
2006-109 Modified by Notice 2014-4 2014-2 I.R.B. 2014-2 274
2007-25, 2007-1 C.B. 760 Superseded by Notice 2014-29 2014-18 I.R.B. 2014-18 991
2007-59 Obsoleted by REG-163195-05 2014-15 I.R.B. 2014-15 930
2007-77, 2007-2 C.B. 735 Superseded by Notice 2014-29 2014-18 I.R.B. 2014-18 991
2008-107, 2008-2 C.B. 1266 Superseded by Notice 2014-29 2014-18 I.R.B. 2014-18 991
2009-78 Superseded by T.D. 9654 2014-6 I.R.B. 2014-6 461
2010-27, 2010-1 C.B. 531 Superseded by Notice 2014-29 2014-18 I.R.B. 2014-18 991
2013-1 Superseded by Notice 2014-22 2014-16 I.R.B. 2014-16 940
2013-1 Modified by Notice 2014-22 2014-16 I.R.B. 2014-16 940
2013-13 Obsoleted by REG-163195-05 2014-15 I.R.B. 2014-15 930
2013-17 Amplified by Notice 2014-1 2014-2 I.R.B. 2014-2 270


Revenue Procedures

Old Article Action New Article Issue Link Page
2003-49 Modified and superseded by Rev. Proc. 2014-14 2014-2 I.R.B. 2014-2 295
2004-42 Obsoleted by REG-163195-05 2014-15 I.R.B. 2014-15 930
2004-43 Obsoleted by REG-163195-05 2014-15 I.R.B. 2014-15 930
2011-4 Modified by Rev. Proc. 2014-17 2014-12 I.R.B. 2014-12 661
2011-14 Modified by Rev. Proc. 2014-16 2014-9 I.R.B. 2014-9 606
2011-14 Clarified by Rev. Proc. 2014-16 2014-9 I.R.B. 2014-9 606
2011-14 Modified by Rev. Proc. 2014-17 2014-12 I.R.B. 2014-12 661
2011-44 Modified and Superseded by Rev. Proc. 2014-11 2014-3 I.R.B. 2014-3 411
2011-49 Modified by Rev. Proc. 2014-6 2014-1 I.R.B. 2014-1 198
2012-14 Modified by Rev. Proc. 2014-17 2014-12 I.R.B. 2014-12 661
2012-19 Modified by Rev. Proc. 2014-16 2014-9 I.R.B. 2014-9 606
2012-19 Superseded by Rev. Proc. 2014-16 2014-9 I.R.B. 2014-9 606
2012-20 Modified by Rev. Proc. 2014-17 2014-12 I.R.B. 2014-12 661
2012-20 Superseded by Rev. Proc. 2014-17 2014-12 I.R.B. 2014-12 661
2013-1 Superseded by Rev. Proc. 2014-1 2014-1 I.R.B. 2014-1 1
2013-2 Superseded by Rev. Proc. 2014-2 2014-1 I.R.B. 2014-1 90
2013-3 Superseded by Rev. Proc. 2014-3 2014-1 I.R.B. 2014-1 111
2013-4 Superseded by Rev. Proc. 2014-4 2014-1 I.R.B. 2014-1 125
2013-5 Superseded by Rev. Proc. 2014-5 2014-1 I.R.B. 2014-1 169
2013-6 Superseded by Rev. Proc. 2014-6 2014-1 I.R.B. 2014-1 198
2013-7 Superseded by Rev. Proc. 2014-7 2014-1 I.R.B. 2014-1 238
2013-8 Superseded by Rev. Proc. 2014-8 2014-1 I.R.B. 2014-1 242
2013-9 Superseded by Rev. Proc. 2014-9 2014-2 I.R.B. 2014-2 281
2013-10 Superseded by Rev. Proc. 2014-10 2014-2 I.R.B. 2014-2 293
2013-22 Modified by Rev. Proc. 2014-28 2014-16 I.R.B. 2014-16 944
2013-24 Obsoleted by Rev. Proc. 2014-23 2014-12 I.R.B. 2014-12 685
2013-27 Obsoleted by Rev. Proc. 2014-23 2014-12 I.R.B. 2014-12 685
2013-32 Superseded in part by Rev. Proc. 2014-1, and 2014-1 I.R.B. 2014-1 1
Rev. Proc. 2014-3 2014-1 I.R.B. 2014-1 111
2014-1 Amplified by Rev. Proc. 2014-18 2014-7 I.R.B. 2014-7 513
2014-1 I.R.B. 111 Amplified by Rev. Proc. 2014-24 2014-13 I.R.B. 2014-13 879
2014-3 Amplified by Rev. Proc. 2014-18 2014-7 I.R.B. 2014-7 513
2014-3 I.R.B 111 Amplified by Rev. Proc. 2014-24 2014-13 I.R.B. 2014-13 879
2014-4 Modified by Rev. Proc. 2014-19 2014-10 I.R.B. 2014-10 619


Proposed Regulations

Old Article Action New Article Issue Link Page
209054-87 A portion withdrawn by REG-113350-13 2014-3 I.R.B. 2014-3 440


Revenue Rulings

Old Article Action New Article Issue Link Page
2005-48 (2005-2 CB 259) Obsoleted by T.D. 9659 2014-12 I.R.B. 2014-12 653
2013-17 Amplified by Notice 2014-19 2014-17 I.R.B. 2014-17 979
2013-17 Amplified by Notice 2014-25 2014-17 I.R.B. 2014-17 981


Treasury Decision

Old Article Action New Article Issue Link Page
9644 Correction by Ann. 2014-18 2014-17 I.R.B. 2014-17 983
9644 Correction by Ann. 2014-19 2014-17 I.R.B. 2014-17 984


INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/.

CUMULATIVE BULLETINS

The contents of the weekly Bulletins were consolidated semiannually into permanent, indexed, Cumulative Bulletins through the 2008–2 edition.

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.

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:P:SPA, Washington, DC 20224.