- Highlights of This Issue
- Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
- Part III. Administrative, Procedural, and Miscellaneous
- Definition of Terms and Abbreviations
- Numerical Finding List
- Effect of Current Actions on Previously Published Items
Internal Revenue Bulletin: 2015-18
May 4, 2015
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.
Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for May 2015.
The notice provides adjusted limitations on housing expenses for tax year 2015 for purposes of section 911 of the Code.
Section 301 of James Zadroga 9/11 Health and Compensation Act of 2010, Public Law 111–347 (124 Stat. 3623) (the “Act”) added section 5000C to the Internal Revenue Code that imposes a 2 percent tax on payments made by the U.S. government to foreign persons pursuant to certain contracts. In addition, section 301(c) of the Act requires that section 5000C be applied in a manner consistent with the United States’ obligations under international agreements. Accordingly, section 5000C will not be applied if the payment is made to a foreign person entitled to relief from the tax imposed under section 5000C pursuant to an international agreement with the United States, including relief pursuant to a non-discrimination provision of a qualified income tax treaty when the foreign person is entitled to the benefit of that provision. Notice 2015–35 provides a current list of all "qualified income tax treaties" for purposes of section 5000C.
This notice advises taxpayers that they may continue to rely on Rev. Proc. 2014–35, which provides safe harbors for applying the general welfare exclusion to Indian tribal government programs, following passage of the Tribal General Welfare Exclusion Act of 2014 and requests comments on interpreting certain provisions of the Act.
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.
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.
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 2015. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.
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 ($276.16 per day for 2015, or $100,800 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 2015 is $16,128 ($100,800 × .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 $30,240 ($100,800 × .30) in 2015.
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, 2010–15 I.R.B. 531, for 2009 and 2010, Notice 2011–8, 2011–8 I.R.B. 503, for 2010 and 2011, Notice 2012–19, 2012–10 I.R.B. 440 for 2011 and 2012, Notice 2013–31, 2013–21 I.R.B. 1099, for 2012 and 2013, and Notice 2014–29, 2014–18 I.R.B. 991 for 2013 and 2014 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.
The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $30,240) for 2015.
|Country||Location||Limitation on Housing Expenses (full year)||Limitation on Housing Expenses (daily)|
|Australia||Darwin, Northern Country||30,600||83.84|
|Bahamas, The||Grand Bahama Island||30,900||84.66|
|Brazil||Rio de Janeiro||35,100||96.16|
|Cayman Islands||Grand Cayman||48,000||131.51|
|Colombia||All cities other than Bogota||49,400||135.34|
|Costa Rica||San Jose||32,000||87.67|
|Democratic Republic of the Congo||Kinshasa||42,000||115.07|
|Dominican Republic||Santo Domingo||45,500||124.66|
|El Salvador||San Salvador||32,000||87.67|
|France||All cities other than Garches, Le Havre, Lyon, Marseille, Paris, Sevres, Suresnes and Versailles||31,900||87.40|
|Germany||Frankfurt am Main||40,100||109.86|
|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, 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 Zweibrueken||37,700||103.29|
|Holy See, The||Holy See, The||52,100||142.74|
|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.||31,800||87.12|
|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||31,900||87.40|
|Kuwait||All cities other than Kuwait City||57,700||158.08|
|Malaysia||All cities other than Kuala Lumpur||33,700||92.33|
|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|
|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.||37,000||101.37|
|Norway||All cities other than Oslo and Stavanger.||34,200||93.70|
|Qatar||All cities other than Doha||32,400||88.77|
|Switzerland||All cities other than Bern, Geneva and Zurich||32,900||90.14|
|Tanzania||Dar Es Salaam||44,000||120.55|
|Trinidad and Tobago||Port of Spain||54,500||149.32|
|United Arab Emirates||Abu Dhabi||49,687||136.13|
|United Arab Emirates||Dubai||57,174||156.64|
|United Kingdom||High Wycombe||62,100||170.14|
|United Kingdom||Menwith Hill||45,700||125.21|
|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.||42,600||116.71|
|Vietnam||Ho Chi Minh City||42,000||115.07|
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 2014” in Notice 2014–29. A qualified individual incurring housing expenses in such a location during 2014 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 2014” in Notice 2014–29 (and as set forth in the Instructions to Form 2555 (2014)).
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 2016 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2015 taxable year.
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, 2010–15 I.R.B. 531, Notice 2011–8, 2011–8 I.R.B. 503, Notice 2012–19, 2012–10 I.R.B. 440, Notice 2013–31, 2013–21 I.R.B. 1099, and Notice 2014–29, 2014–18 I.R.B. 991.
This notice is effective for taxable years beginning on or after January 1, 2015. However, as provided in section 4, a taxpayer may elect to apply the 2015 adjusted housing limitations contained in section 3 of this notice to his or her taxable year beginning in 2014.
The Tribal General Welfare Exclusion Act of 2014 (the Act), Pub. L. No. 113–168, 128 Stat. 1883 (2014), added § 139E to the Internal Revenue Code. This notice provides guidance to taxpayers about the effect of the Act on Rev. Proc. 2014–35, 2014–26 I.R.B. 1110. Taxpayers may continue to rely on Rev. Proc. 2014–35, which provides safe harbors under which certain benefits provided under Indian tribal government programs may be excluded from income under the general welfare exclusion.
This notice also requests comments about the interpretation and application of § 139E.
Under § 61(a), except as otherwise provided in subtitle A, gross income means all income from whatever source derived. Indians are citizens subject to the payment of income taxes as are other citizens. Squire v. Capoeman, 351 U.S. 1, 6 (1956), 1956–1 C.B. 605, 607. The Internal Revenue Service (IRS) has consistently concluded, however, that certain payments made to or on behalf of individuals by governmental units under governmentally provided social benefit programs for the promotion of general welfare are not included in a recipient’s gross income (general welfare exclusion). To qualify under the general welfare exclusion the payments must (1) be made pursuant to a governmental program; (2) be for the promotion of general welfare (that is, based on need); and (3) not represent compensation for services.
Rev. Proc. 2014–35 provides safe harbors under which the IRS will conclusively presume that the need requirement of the general welfare exclusion is met for benefits provided under Indian tribal government programs described in section 5.02 or 5.03 of the revenue procedure, and will not assert that benefits provided under programs described in section 5.03 of the revenue procedure represent compensation for services.
New § 139E(a) provides that gross income does not include the value of any Indian general welfare benefit. Section 139E(b) defines “Indian general welfare benefit” as any payment made or service provided to or on behalf of a member of an Indian tribe (or a spouse or dependent of a member) under an Indian tribal government program but only if (1) the program is administered under specified guidelines and does not discriminate in favor of members of the governing body of the tribe; and (2) the benefits provided under the program are available to any tribal member who meets the guidelines, are for the promotion of general welfare, are not lavish or extravagant, and are not compensation for services.
Section 139E(c)(3) provides that the Secretary shall, in consultation with the Tribal Advisory Committee (established under section 3(a) of the Act), create guidelines for what constitutes lavish or extravagant benefits in the context of Indian tribal government programs.
Section 139E(c)(4) provides that an Indian tribal government program may be established by tribal custom or government practice.
Section 139E(c)(5) provides that any items of cultural significance, reimbursement of costs, or cash honoraria for participation in cultural or ceremonial activities for the transmission of tribal culture are not treated as compensation for services.
Section 139E codifies (but does not supplant) the general welfare exclusion for certain benefits provided under Indian tribal government programs. Compare Rev. Rul. 2003–12, 2003–1 C.B. 283 (§ 139(b)(4) codifies but does not supplant the general welfare exclusion for certain governmental disaster relief payments). Taxpayers may continue to rely on Rev. Proc. 2014–35, which is broader than § 139E in some respects, and which provides certainty that the need requirement is satisfied for the benefits described in section 5.02 or 5.03 of the revenue procedure and that the benefits described in section 5.03 of the revenue procedure are not compensation for services.
Other exclusions from income, such as § 139D (Indian health care benefits), continue to apply to benefits provided under Indian tribal governmental programs independently of whether the benefits qualify for exclusion under § 139E or the general welfare exclusion.
The Treasury Department and the IRS request comments on the following issues arising under § 139E that may be addressed in future published guidance:
(1) What guidelines would be helpful to Indian tribal governments in determining whether benefits provided under governmental programs are lavish or extravagant?
(2) What tribal customs or government practices may establish an Indian tribal government program administered through specific guidelines under § 139E(b)(1) and § 139E(c)(4)? How may programs established by tribal custom or government practice be identified?
(3) How should items of cultural significance, cash honoraria, and cultural or ceremonial activities for the transmission of tribal culture under § 139E(c)(5) be defined?
The Treasury Department and the IRS also invite comments on other issues pertaining to § 139E or other provisions of the Act.
Comments may be submitted in writing on or before October 14, 2015. Comments should be mailed to Internal Revenue Service, CC:PA:LPD:PR (Notice 2015–34), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or sent electronically to Notice.Comments@irscounsel.treas.gov. Please include “Notice 2015–34” in the subject line of any electronic communications. Alternatively, comments may be hand delivered Monday through Friday between the hours of 8:00 a.m. and 4:00 p.m. to CC:PA:LPD:PR (Notice 2015–34), Courier’s Desk, Internal Revenue Service, 1111 Constitution Ave., NW, Washington, DC. All comments will be available for public inspection and copying.
Section 5000C, added to the Internal Revenue Code by section 301 of the James Zadroga 9/11 Health and Compensation Act of 2010, Public Law 111–347 (124 Stat. 3623) (the “Act”), imposes on any foreign person that receives a specified Federal procurement payment a tax equal to 2 percent of the amount of the payment. Section 5000C(b) defines a specified Federal procurement payment as any payment made to a foreign person pursuant to a procurement contract with the Government of the United States (“U.S. government”) entered into on and after January 2, 2011, to provide goods or services if the goods are manufactured or produced in, or the services are provided in, any country that is not a party to an international procurement agreement with the United States.
Section 301(c) of the Act requires that section 5000C be applied in a manner consistent with the United States’ obligations under international agreements. Accordingly, section 5000C will not be applied if the payment is made to a foreign person entitled to relief from the tax imposed under section 5000C pursuant to an international agreement with the United States, including relief pursuant to a nondiscrimination provision of a qualified income tax treaty when the foreign person is entitled to the benefit of that provision.
A “qualified income tax treaty” means a U.S. income tax treaty in force that contains a nondiscrimination article that applies to the tax imposed by section 5000C and prohibits taxation that is more burdensome on a foreign national than on a U.S. national (or in the case of certain income tax treaties, taxation that is more burdensome on a foreign citizen than a U.S. citizen), regardless of residence. A foreign person that is entitled to relief from tax under section 5000C pursuant to a qualified income tax treaty is exempt from the tax under section 5000C, regardless of whether the payment it receives is for goods manufactured or produced, or for services provided, in a country that is not a party to an international procurement agreement with the United States.
To assist both the U.S. government and foreign persons in determining whether the tax shall be imposed under section 5000C and the regulations thereunder, the Appendices to this notice identify all “qualified income tax treaties” as of the date of publication of this notice.
U.S. income tax treaties are bilateral agreements that eliminate double taxation on cross-border investments and activities of residents of the two contracting states. These agreements also generally prevent discriminatory taxation. In general, nondiscrimination articles include a provision that prevents taxation that is more burdensome on foreign nationals than U.S. nationals, where nationality is the sole basis for the more burdensome treatment (“the nationality provision”). The tax imposed under section 5000C applies only to specified Federal procurement payments made to foreign persons, regardless of their residence, and not U.S. persons. Therefore, in general, the tax imposed under section 5000C constitutes taxation more burdensome on foreign nationals than U.S. nationals. Thus, depending on the particular terms of the nondiscrimination provision in an income tax treaty, the tax may not be imposed on nationals who benefit from this protection.
The definition of national in U.S. income tax treaties generally includes citizens or nationals of a contracting state as well as legal persons, such as corporations, whose status as such is derived from the laws of that country. See Article 3(1)(j) of the 2006 U.S. Model Tax Treaty. There is no requirement that the legal person be a taxable entity or that the national be treated as a resident of that country under its treaty with the United States. In addition, there is no requirement that the national satisfy the limitation on benefits article, if any, in the treaty between the national’s country of residence and the United States. Some treaties apply only to nationals who are natural persons (that is, individuals) and not entities. Other treaties apply only to natural persons who are also residents of the United States. The tax imposed by section 5000C would not apply to payments to nationals resident in the United States.
Not all treaty nondiscrimination articles cover taxes of every kind and description, such as the tax imposed by section 5000C. Some apply only to federal income taxes, in which case, the article would not cover the tax imposed under section 5000C.
Appendix A provides a list of qualified income tax treaties that exempt all nationals of that country from the tax imposed under section 5000C. Appendix B provides a list of qualified income tax treaties that exempt only individual nationals of that treaty country.
This notice is effective for all payments received pursuant to specified Federal procurement contracts entered into on and after January 2, 2011. The list of qualified income tax treaties will be updated as necessary in subsequent IRS Forms, Instructions, Publications or other media (including electronic media).
The principal author of this notice is Rosy Lor of the Office of Associate Chief Counsel (International). For further information regarding this notice contact Rosy Lor at (202) 317-6933 (not a toll-free number).
The following qualified income tax treaties cover all nationals of the treaty country and exempt all such nationals from the tax imposed by section 5000C:
|Netherlands||Portugal||Slovak Republic||Slovenia||South Africa|
This revenue ruling provides various prescribed rates for federal income tax purposes for May 2015 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2015 shall not be less than 9%.
Finally,Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.
|REV. RUL. 2015–8 TABLE 1|
|Applicable Federal Rates (AFR) for May 2015|
|Period for Compounding|
|REV. RUL. 2015–8 TABLE 2|
|Adjusted AFR for May 2015|
|Period for Compounding|
|Short-term adjusted AFR||.43%||.43%||.43%||.43%|
|Mid-term adjusted AFR||1.43%||1.42%||1.42%||1.42%|
|Long-term adjusted AFR||2.30%||2.29%||2.28%||2.28%|
|REV. RUL. 2015–8 TABLE 3|
|Rates Under Section 382 for May 2015|
|Adjusted federal long-term rate for the current month||2.30%|
|Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.)||2.47%|
|REV. RUL. 2015–8 TABLE 4|
|Appropriate Percentages Under Section 42(b)(1) for May 2015|
|Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2015, shall not be less than 9%.|
|Appropriate percentage for the 70% present value loW–income housing credit||7.44%|
|Appropriate percentage for the 30% present value loW–income housing credit||3.19%|
|REV. RUL. 2015–8 TABLE 5|
|Rate Under Section 7520 for May 2015|
|Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest||1.8%|
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.
The following abbreviations in current use and formerly used will appear in material published in the Bulletin.
B.T.A.—Board of Tax Appeals.
CFR—Code of Federal Regulations.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
ERISA—Employee Retirement Income Security Act.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
FUTA—Federal Unemployment Tax Act.
G.C.M.—Chief Counsel’s Memorandum.
I.R.B.—Internal Revenue Bulletin.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T.I.R.—Technical Information Release.
U.S.C.—United States Code.
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2014–27 through 2014–52 is in Internal Revenue Bulletin 2014–52, dated December 28, 2014.
Bulletin 2015–1 through 2015–18
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2014–27 through 2014–52 is in Internal Revenue Bulletin 2014–52, dated December 28, 2014.
Bulletin 2015–1 through 2015–18
|Old Article||Action||New Article||Issue||Link||Page|
|2010-3||Amplified by||Ann. 2015-3||2015-3 I.R.B.||2015-3||328|
|Old Article||Action||New Article||Issue||Link||Page|
|2014-01||Superseded by||Rev. Proc. 2015-01||2015-01 I.R.B.||2015-1||1|
|2014-02||Superseded by||Rev. Proc. 2015-02||2015-01 I.R.B.||2015-1||105|
|2014-03||Superseded by||Rev. Proc. 2015-03||2015-01 I.R.B.||2015-1||129|
|2014-04||Superseded by||Rev. Proc. 2015-04||2015-01 I.R.B.||2015-1||144|
|2014-05||Superseded by||Rev. Proc. 2015-05||2015-01 I.R.B.||2015-1||186|
|2014-06||Superseded by||Rev. Proc. 2015-06||2015-01 I.R.B.||2015-1||194|
|2014-07||Superseded by||Rev. Proc. 2015-07||2015-01 I.R.B.||2015-1||231|
|2014-08||Superseded by||Rev. Proc. 2015-08||2015-01 I.R.B.||2015-1||235|
|2014-10||Superseded by||Rev. Proc. 2015-10||2015-2 I.R.B.||2015-2||261|
|2003-63||Superseded by||Rev. Proc. 2015-12||2015-2 I.R.B.||2015-2||265|
|2011-14||Modified by||Rev. Proc. 2015-12||2015-2 I.R.B.||2015-2||265|
|2011-14||Modified by||Rev. Proc. 2015-13||2015-5 I.R.B.||2015-5||419|
|2011-14||Amplified by||Rev. Proc. 2015-13||2015-5 I.R.B.||2015-5||419|
|2011-14||Clarified by||Rev. Proc. 2015-13||2015-5 I.R.B.||2015-5||419|
|1997-27||Clarified by||Rev. Proc. 2015-13||2015-5 I.R.B.||2015-5||419|
|1997-27||Modified by||Rev. Proc. 2015-13||2015-5 I.R.B.||2015-5||419|
|2012-11||Superseded by||Rev. Proc. 2015-17||2015-7 I.R.B.||2015-7||599|
|2015-9||Modified by||Rev. Proc. 2015-17||2015-7 I.R.B.||2015-7||599|
|2015-14||Modified by||Rev. Proc. 2015-20||2015-9 I.R.B.||2015-9||694|
|2013-22||Modified by||Rev. Proc. 2015-22||2015-11 I.R.B.||2015-11||754|
|2015-8||Modified by||Rev. Proc. 2015-22||2015-11 I.R.B.||2015-11||754|
|2014-59||Modified by||Rev. Proc. 2015-24||2015-13 I.R.B.||2015-13||822|
|2002-43||Modified by||Rev. Proc. 2015-26||2015-15 I.R.B.||2015-15||875|
|2002-43||Obsoleted by||Rev. Proc. 2015-26||2015-15 I.R.B.||2015-15||875|
|Old Article||Action||New Article||Issue||Link||Page|
|92-19||Supplemented by||Rev. Rul. 2015-02||2015-3 I.R.B.||2015-3||321|
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/.
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 theInternal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave. NW, IR-6230 Washington, DC 20224.