Highlights of This Issue ADMINISTRATIVE EMPLOYEE PLANS INCOME TAX Preface The IRS Mission Introduction Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 T.D. 9851 Rev. Rul. 201906 Rev. Rul. 201908 Rev. Rul. 201909 Part III. Administrative, Procedural, and Miscellaneous Notice 201920 Notice 201921 Notice 201922 Notice 201924 Rev. Proc. 201915 Definition of Terms and Abbreviations Definition of Terms Abbreviations Numerical Finding List Numerical Finding List Effect of Current Actions on Previously Published Items Finding List of Current Actions on Previously Published Items How to get the Internal Revenue Bulletin INTERNAL REVENUE BULLETIN We Welcome Comments About the Internal Revenue Bulletin Internal Revenue Bulletin: 2019-14 April 1, 2019 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. ADMINISTRATIVE Notice 2019–20 Notice 2019–20 This Notice provides penalty relief under sections 6722 (failure to furnish correct payee statements); 6698 (failure to file partnership return); section 6038(b) and (c) (failure to furnish information with respect to certain partnerships); and any other section for filing or furnishing Schedules K–1 or other forms or statements, where a penalty is imposed solely as a result of failing to include information about partners’ negative tax basis capital accounts for the 2018 tax year. Notice 2019–22 Notice 2019–22 Section 30D provides a credit of up to $7,500 for new qualified plug-in electric drive motor vehicles sold after December 31, 2009. This notice announces the credit phase-out schedule for new qualified plug-in electric drive motor vehicles sold by General Motors, LLC. Section 30D of the Internal Revenue Code provides for a credit determined under § 30D(b) for certain new qualified plug-in electric drive motor vehicles. The new qualified plug-in electric drive motor vehicle credit begins to phase out for a manufacturer’s qualified plug-in electric drive motor vehicles in the second calendar quarter after the calendar quarter in which at least 200,000 of the manufacturer’s vehicles that qualify for the credit have been sold for use or lease in the United States (determined on a cumulative basis for sales after December 31, 2009). General Motors, LLC has submitted quarterly reports that indicate that its cumulative sales of qualified plug-in electric drive motor vehicles reached the 200,000-vehicle limit during the calendar quarter ending December 31, 2018. Accordingly, the credit for all new qualified plug-in electric drive motor vehicles sold by General Motors, LLC will begin to phase out on April 1, 2019. EMPLOYEE PLANS Notice 2019–21 Notice 2019–21 This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for March 2019 used under § 417(e)(3)(D), the 24-month average segment rates applicable for March 2019, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv). REV. RUL. 2019–06 REV. RUL. 2019–06 This revenue ruling provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code and the Income Tax Regulations thereunder, effective January 1, 2019. INCOME TAX Notice 2019–24 Notice 2019–24 Notice 2019–24 provides for adjustment to the limitation on housing expenses for purposed of section 911 of the Internal Revenue Code. These adjustments are made on the basic geographical differences in housing costs in the United States. Further, if the limitation on housing expenses is higher for taxable year 2019 than the adjusted limitations on housing expenses provided in Notice 2018–44, qualified taxpayers may apply the adjusted limitations for taxable year 2019 to their 2018 taxable year. REV PROC 2019–15 REV PROC 2019–15 Attached is Revenue Procedure 2019–15, which provides a waiver for the time requirements for individuals electing to exclude their foreign earned income who must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Rev. Proc. 2019–15 adds the Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua to the list of waiver countries for tax year 2018 for which the minimum time requirements are waived. Generally, U.S. citizens or resident aliens living and working abroad are taxed on their worldwide income. However, if their tax home is in a foreign country and they meet either the bona fide residence test or the physical presence test, they can choose to exclude from their income a limited amount of their foreign earned income ($103,900 for 20018). Both the bona fide residence test and the physical presence test contain minimum time requirements. REV. RUL. 2019–08 REV. RUL. 2019–08 Federal rates; adjusted federal rates; adjusted federal long-term rate, the long-term exempt rate, and the blended annual rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for April 2019. REV. RUL. 2019–09 REV. RUL. 2019–09 This revenue ruling suspends Rev. Rul. 57–464, 1957–2 C.B. 244, and Rev. Rul. 57–492, 1957–2 C.B. 247, pending the completion of a study by the Department of the Treasury and the Internal Revenue Service regarding the active trade or business requirement under sections 355(a)(1)(C) and (b) of the Internal Revenue Code. T.D. 9851 T.D. 9851 These final regulations provide guidance on the requirements that are used to determine whether a corporation qualifies as a regulated investment company (RIC) for federal income tax purposes. The final regulations clarify that amounts included in gross income under § 951(a)(1)(A) or 1293(a) are treated as dividends only to the extent that there is an actual distribution out of the earnings and profits of the taxable year that are attributable to the amounts so included. The final regulations also provide that inclusions under §§ 951(a)(1) and 1293(a) derived with respect to a RIC’s business of investing in stock, securities, or currencies are other qualifying income for purposes of the RIC income test under § 851(b)(2). 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 I. Rulings and Decisions Under the Internal Revenue Code of 1986 T.D. 9851 Guidance Under Section 851 Relating to Investments in Stock and Securities DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final Regulations. SUMMARY: This document provides final regulations relating to the income test used to determine whether a corporation may qualify as a regulated investment company (RIC) for Federal income tax purposes. These final regulations provide guidance to corporations that intend to qualify as RICs. DATES: Effective Date: These regulations are effective on March 19, 2019. Applicability Date: For the date of applicability, see § 1.851–2(d). FOR FURTHER INFORMATION CONTACT: Matthew Howard at (202) 317-7053 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background This document contains amendments to the Income Tax Regulations (26 CFR part 1) relating to RICs. Section 851 of the Internal Revenue Code (Code) sets forth requirements for qualifying as a RIC. On September 28, 2016, a notice of proposed rulemaking (REG–123600–16) was published in the Federal Register (81 FR 66576) under section 851. No public hearing was requested or held. Written or electronic comments responding to the notice of proposed rulemaking were received. After consideration of all the comments, the proposed regulations are adopted as revised by this Treasury decision containing final regulations. The revisions to the proposed regulations are discussed in the Summary of Comments and Explanation of Revisions. Summary of Comments and Explanation of Revisions In response to the notice of proposed rulemaking, the IRS received five written comments that are available for public inspection at www.regulations.gov or upon request. A. Revisions Due to Statutory Changes The notice of proposed rulemaking proposed revisions to § 1.851–2(b)(1), which had been published in the Federal Register (25 FR 11910) on November 26, 1960, as part of TD 6500 (1960 final regulations). The proposed revisions would conform § 1.851–2(b)(1) to several changes to the statutory text of section 851(b)(2) enacted after the 1960 final regulations were published. See Pub. L. 95–345, § 2(a)(3), 92 Stat. 481, 481 (1978); Tax Reform Act of 1986, Pub. L. 99–514, § 653(b), 100 Stat. 2085, 2298 (1986); Taxpayer Relief Act of 1997, Pub. L. 105–34, § 1271(a), 111 Stat. 788, 1036 (1997). No comments were received on these proposed revisions. Accordingly, the final regulations adopt the revisions to § 1.851–2(b)(1) as proposed. B. Defining Securities In the notice of proposed rulemaking, the Department of the Treasury (Treasury Department) and the IRS determined that the IRS should no longer issue private letter rulings on questions relating to the treatment of a corporation as a RIC that require a determination of whether a financial instrument or position is a security under the Investment Company Act of 1940, Pub. L. No. 76–768, 54 Stat. 789 (codified as amended at 15 U.S.C. §§ 80a–1 – 80a–64 (2016)) (1940 Act). Contemporaneously with the publication of the notice of proposed rulemaking, the Treasury Department and the IRS issued Rev. Proc. 2016–50 (2016–43 I.R.B. 522), which provides that the IRS ordinarily will not issue rulings or determination letters on any issue relating to the treatment of a corporation as a RIC that requires a determination of whether a financial instrument or position is a security under the 1940 Act. One commenter recommended that the IRS not add this issue to the no-rule list and that the IRS continue to consider ruling requests in situations in which the status of an investment as a security under section 2(a)(36) of the 1940 Act is sufficiently clear under the language of the 1940 Act or under relevant guidance from the SEC. In issuing the notice of proposed rulemaking and Rev. Proc. 2016–50, the Treasury Department and the IRS considered the issues, the resource constraints of the IRS, and the jurisdiction of the SEC under the 1940 Act and determined that the IRS ordinarily should not issue rulings that require a determination by the IRS of whether a financial instrument or position is a security under the 1940 Act. If the security status of an instrument is sufficiently clear under the 1940 Act, or if the SEC has issued relevant guidance, any other requested ruling may be considered by the IRS subject to other limitations applicable to all ruling requests. See, for example, section 6 of Rev. Proc. 2019–1 (2019–1 I.R.B. 1, 18). The IRS therefore declines to adopt the suggestion and has continued to include the issue described in Rev. Proc. 2016–50 in the list of areas in which rulings or determinations letters will not ordinarily be issued. See, for example, section 4.01(44) of Rev. Proc. 2019–3 (2019–1 I.R.B. 130, 140). In the notice of proposed rulemaking, the Treasury Department and the IRS also requested comments as to whether Rev. Rul. 2006–1 (2006–1 C.B. 261), Rev. Rul. 2006–31 (2006–1 C.B. 1133), and other previously issued guidance involving determinations of whether a financial instrument or position held by a RIC is a security under the 1940 Act should be withdrawn. Commenters recommended that Rev. Rul. 2006–1 and Rev. Rul. 2006–31 not be withdrawn because RICs rely on those rulings to invest with confidence in certain derivatives on stocks and securities. The commenters suggested that withdrawal of those rulings would create confusion and uncertainty with respect to investments by a RIC. After consideration of the comments, the Treasury Department and the IRS have decided not to withdraw the revenue rulings at this time. C. Inclusions Under Section 951(a)(1) or 1293(a) In certain circumstances, a U.S. person may be required under section 951(a)(1) or 1293(a) to include in taxable income certain earnings of a foreign corporation in which the U.S. person holds an interest, without regard to whether the foreign corporation makes a distribution to the U.S. person. The Tax Reduction Act of 1975, Pub. L. No. 94–12, § 602, 89 Stat. 26, 58 (1975 Act), substantially increased the overall amount of these inclusions. Because these inclusions are not dividends (even if accompanied by a corresponding distribution), they would have been non-qualifying gross income for RICs. However, the same subsection of the 1975 Act that increased the amount of inclusions also amended section 851(b). This amendment provided that an inclusion under section 951 was treated as a dividend (and therefore qualifying income for purposes of section 851(b)(2)) if the inclusion was accompanied by a distribution out of the earnings and profits of the taxable year that are attributable to the amounts so included. The Tax Reform Act of 1986, Pub. L. No. 99–514, § 1235, 100 Stat. 2085, 2575 (1986 Act), provided the same dividend treatment for amounts included in income under section 1293(a). The current version of the language added by the 1975 and 1986 amendments provides: For purposes of [section 851(b)(2)], there shall be treated as dividends amounts included in gross income under section 951(a)(1)(A) or 1293(a) for the taxable year to the extent that, under section 959(a)(1) or 1293(c) (as the case may be), there is a distribution out of the earnings and profits of the taxable year which are attributable to the amounts so included. The 1986 Act also added to the description of a RIC’s qualifying income “other income (including but not limited to gains from options, futures or forward contracts) derived with respect to its business of investing in . . . stock, securities, or currencies.” The amendments to section 851(b) by the 1975 Act and the 1986 Act unambiguously condition dividend treatment of an inclusion under section 951(a)(1)(A) or 1293(a) on a distribution from the foreign corporation’s earnings and profits attributable to the amount included. Absent a distribution, there is no support in the Code for treating an inclusion under section 951(a)(1)(A) or 1293(a) as a dividend under section 851. The proposed regulations would, therefore, clarify that an inclusion under section 951(a)(1)(A) or 1293(a) is treated as a dividend for purposes of section 851(b)(2) only to the extent that the distribution requirement in section 851(b) is met. All five commenters acknowledged that the distribution requirement for dividend treatment in the proposed regulations is consistent with the statutory language in section 851(b). Accordingly, the final regulations adopt the clarification of the distribution requirement as proposed. The proposed regulations, however, also would provide that dividend treatment is the only manner in which an inclusion under section 951(a)(1) or 1293(a) may be qualifying income. That is, under the proposed regulations, for purposes of section 851(b)(2) neither of these inclusions would be other income derived with respect to a RIC’s business of investing in stock, securities, or currencies (Non-qualifying Income Proposal). Commenters unanimously recommended that the Treasury Department and the IRS exclude the Non-qualifying Income Proposal from the final regulations. Commenters noted that some RICs have no ability to control when, or whether, distributions are made and may have income inclusions in excess of available or allowable distributions. Commenters also suggested that the Non-qualifying Income Proposal would produce inconsistent results. For example, if a RIC has income inclusions with respect to a passive foreign investment company (PFIC) as a result of making a mark-to-market election under section 1296 with respect to the PFIC, the RIC would have qualifying income under section 851(b). See section 1296(h), which specifically treats that income as a dividend even though there has been no distribution. In contrast, if the RIC had made a qualified electing fund election under section 1293 with respect to a PFIC, then the Non-qualifying Income Proposal would prevent income inclusions with respect to that PFIC from being qualifying income. The Treasury Department and the IRS have carefully considered the comments and recognize that the Non-qualifying Income Proposal creates an unintended effect on the RIC income test of section 851(b)(2). For example, certain types of income, such as interest and dividends, would be considered qualifying income if earned directly by a RIC. These types of income, however, would not be qualifying income when received by a controlled foreign corporation or PFIC and included in a RIC’s income under section 951(a)(1) or 1293(a), unless there is a corresponding distribution. Accordingly, the Treasury Department and the IRS have decided not to include the Non-qualifying Income Proposal in these final regulations. One commenter further recommended that the final regulations treat inclusions under sections 951(a)(1)(A) and 1293(a) derived with respect to a RIC’s business of investing in stock, securities, or currencies as other qualifying income for purposes of the RIC income test of section 851(b)(2) (Qualifying Income Proposal). The Treasury Department and the IRS recognize that inclusions under sections 951(a)(1) and 1293(a) with respect to which there are no corresponding distributions may be accelerations of income derived from stock that otherwise would be recognized as a dividend or as gain from the sale or other disposition of stock. The Qualifying Income Proposal recommended by the commenter would treat these inclusions as qualifying income for purposes of section 851(b)(2). That is, it would apply to inclusions with respect to which there are no corresponding contemporaneous distributions and which otherwise would not be treated as dividends even though those inclusions are connected to a RIC’s business of investing in stock, securities, or currencies. After further consideration of the issues raised by the commenter and the provisions in “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” P.L. 115–97, title 1, § 11000, 131 Stat. 2054 (Dec. 22, 2017), affecting the taxation of income earned outside of the United States, the Treasury Department and the IRS adopt the Qualifying Income Proposal in the final regulations. Special Analyses This regulation is not subject to review under section 6(b) of Executive Order 12866 pursuant to the Memorandum of Agreement (April 11, 2018) between the Treasury Department and the Office of Management and Budget regarding review of tax regulations. Because these regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preceding these regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business, and no comments were received. Statement of Availability of IRS Documents The IRS revenue procedures and revenue rulings cited in this document are published in the Internal Revenue Bulletin (or Cumulative Bulletin) and are available from the Superintendent of Documents, U.S. Government Publishing Office, Washington, DC 20402, or by visiting the IRS website at www.irs.gov. Drafting Information The principal author of these final regulations is Matthew Howard, Office of Associate Chief Counsel (Financial Institutions and Products). However, other personnel from the Treasury Department and the IRS participated in their development. * * * * * Adoption of Amendments to the Regulations Accordingly, 26 CFR part 1 is amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.851–2 is amended by revising paragraphs (b)(1) and (b)(2)(i), and adding paragraphs (b)(2)(iii) and (d) to read as follows: § 1.851–2 Limitations. * * * * * (b) * * * (1) General rule. A corporation will not be a regulated investment company for a taxable year unless 90 percent of its gross income for that year is income described in paragraph (b)(1)(i) or (ii) of this section. Any loss from the sale or other disposition of stock or securities is not taken into account in the gross income computation. (i) Gross income amounts. Income is described in this paragraph (b)(1)(i) if it is gross income derived from: (A) Dividends; (B) Interest; (C) Payments with respect to securities loans (as defined in section 512(a)(5)); (D) Gains from the sale or other disposition of stocks or securities (as defined in section 2(a)(36) of the Investment Company Act of 1940, as amended); (E) Gains from the sale or other disposition of foreign currencies; or (F) Other income (including but not limited to gains from options, futures, or forward contracts) derived with respect to a regulated investment company’s business of investing in such stock, securities, or currencies. (ii) Income from a publicly traded partnership. Income is described in this paragraph (b)(1)(ii) if it is net income derived from an interest in a qualified publicly traded partnership (as defined in section 851(h)). (2) * * * (i) For purposes of section 851(b)(2)(A) and paragraph (b)(1)(i)(A) of this section, amounts included in gross income for the taxable year under section 951(a)(1)(A) or 1293(a) are treated as dividends only to the extent that, under section 959(a)(1) or 1293(c) (as the case may be), there is a distribution out of the earnings and profits of the taxable year that are attributable to the amounts included in gross income for the taxable year under section 951(a)(1)(A) or 1293(a). For allocation of distributions to earnings and profits of foreign corporations, see § 1.959–3. * * * * * (iii) If an amount is included in gross income under section 951(a)(1) or 1293(a) and is derived with respect to a corporation’s business of investing in stock, securities, or currencies then the amount is other income described in section 851(b)(2)(A) and paragraph (b)(1)(i)(F) of this section. Notwithstanding paragraph (d) of this section, a taxpayer may rely on the rule in this paragraph (b)(2)(iii) for taxable years that begin after September 28, 2016. * * * * * (d) Applicability date. The rules in paragraphs (b)(1) and (b)(2)(i) and (iii) apply to taxable years that begin after June 17, 2019. Kirsten Wielobob Deputy Commissioner for Services and Enforcement. Approved: February 15, 2019 David J. Kautter Assistant Secretary of the Treasury (Tax Policy). Note (Filed by the Office of the Federal Register on March 18, 2019, 8:45 a.m., and published in the issue of the Federal Register for March 19, 2019, 84 F.R. 9959) Rev. Rul. 2019–06 This revenue ruling provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code and the Income Tax Regulations thereunder, for the 2019 plan year. Section 401(l)(5)(E)(i) defines covered compensation with respect to an employee as the average of the contribution and benefit bases in effect under section 230 of the Social Security Act (the “Act”) for each year in the 35-year period ending with the year in which the employee attains social security retirement age. Section 401(l)(5)(E)(ii) states that the determination for any year preceding the year in which the employee attains social security retirement age shall be made by assuming that there is no increase in covered compensation after the determination year and before the employee attains social security retirement age. Section 1.401(l)–1(c)(34) of the Income Tax Regulations defines the taxable wage base as the contribution and benefit base under section 230 of the Act. Section 1.401(l)–1(c)(7)(i) defines covered compensation for an employee as the average (without indexing) of the taxable wage bases in effect for each calendar year during the 35-year period ending with the last day of the calendar year in which the employee attains (or will attain) social security retirement age. A 35-year period is used for all individuals regardless of the year of birth of the individual. In determining an employee’s covered compensation for a plan year, the taxable wage base for all calendar years beginning after the first day of the plan year is assumed to be the same as the taxable wage base in effect as of the beginning of the plan year. An employee’s covered compensation for a plan year beginning after the 35-year period applicable under § 1.401(l)–1(c)(7)(i) is the employee’s covered compensation for a plan year during which the 35-year period ends. An employee’s covered compensation for a plan year beginning before the 35-year period applicable under § 1.401(l)–1(c)(7)(i) is the taxable wage base in effect as of the beginning of the plan year. Section 1.401(l)–1(c)(7)(ii) provides that, for purposes of determining the amount of an employee’s covered compensation under § 1.401(l)–1(c)(7)(i), a plan may use tables, provided by the Commissioner, that are developed by rounding the actual amounts of covered compensation for different years of birth. For purposes of determining covered compensation for the 2019 year, the taxable wage base is $132,900. The following tables provide covered compensation for 2019. ATTACHMENT I 2019 COVERED COMPENSATION TABLE CALENDAR CALENDAR YEAR OF 2019 COVERED YEAR OF SOCIAL SECURITY COMPENSATION BIRTH RETIREMENT AGE TABLE II 1907 1972 $ 4,488 1908 1973 4,704 1909 1974 5,004 1910 1975 5,316 1911 1976 5,664 1912 1977 6,060 1913 1978 6,480 1914 1979 7,044 1915 1980 7,692 1916 1981 8,460 1917 1982 9,300 1918 1983 10,236 1919 1984 11,232 1920 1985 12,276 1921 1986 13,368 1922 1987 14,520 1923 1988 15,708 1924 1989 16,968 1925 1990 18,312 1926 1991 19,728 1927 1992 21,192 1928 1993 22,716 1929 1994 24,312 1930 1995 25,920 1931 1996 27,576 1932 1997 29,304 1933 1998 31,128 1934 1999 33,060 1935 2000 35,100 1936 2001 37,212 1937 2002 39,444 1938 2004 43,992 1939 2005 46,344 1940 2006 48,816 1941 2007 51,348 1942 2008 53,952 1943 2009 56,628 1944 2010 59,268 1945 2011 61,884 1946 2012 64,560 1947 2013 67,308 1948 2014 69,996 1949 2015 72,636 1950 2016 75,180 1951 2017 77,880 1952 2018 80,532 1953 2019 83,244 1954 2020 85,920 1955 2022 91,056 1956 2023 93,564 1957 2024 96,000 1958 2025 98,328 1959 2026 100,596 1960 2027 102,804 1961 2028 104,964 1962 2029 107,028 1963 2030 109,080 1964 2031 111,084 1965 2032 113,004 1966 2033 114,852 1967 2034 116,580 1968 2035 118,200 1969 2036 119,700 1970 2037 121,068 1971 2038 122,376 1972 2039 123,660 1973 2040 124,884 1974 2041 126,000 1975 2042 127,008 1976 2043 127,884 1977 2044 128,640 1978 2045 129,384 1979 2046 130,128 1980 2047 130,776 1981 2048 131,328 1982 2049 131,784 1983 2050 132,192 1984 2051 132,600 1985 2052 132,768 1986 and Later 2053 and Later 132,900 ATTACHMENT II 2019 ROUNDED COVERED COMPENSATION TABLE CALENDAR 2019 COVERED YEAR OF COMPENSATION BIRTH ROUNDED 1937 $ 39,000 1938 – 1939 45,000 1940 48,000 1941 51,000 1942 54,000 1943 57,000 1944 60,000 1945 63,000 1946 – 1947 66,000 1948 69,000 1949 72,000 1950 75,000 1951 78,000 1952 81,000 1953 84,000 1954 87,000 1955 90,000 1956 93,000 1957 96,000 1958 99,000 1959 – 1960 102,000 1961 105,000 1962 – 1963 108,000 1964 111,000 1965 – 1966 114,000 1967 – 1968 117,000 1969 – 1970 120,000 1971 – 1972 123,000 1973 – 1975 126,000 1976 – 1979 129,000 1980 – 1983 132,000 1984 and Later 132,900 DRAFTING INFORMATION The principal author of this notice is Tom Morgan of the Office of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). However, other personnel from the IRS participated in the development of this guidance. For further information regarding this notice, contact Mr. Morgan at 202-317-6700 or Gregory K. Davis at 443-853-5590 (not toll-free numbers). Rev. Rul. 2019–08 This revenue ruling provides various prescribed rates for federal income tax purposes for April 2019 (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, 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. 2019–08 TABLE 1 Applicable Federal Rates (AFR) for April 2019 Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 2.52% 2.50% 2.49% 2.49% 110% AFR 2.77% 2.75% 2.74% 2.73% 120% AFR 3.02% 3.00% 2.99% 2.98% 130% AFR 3.28% 3.25% 3.24% 3.23% Mid-term AFR 2.55% 2.53% 2.52% 2.52% 110% AFR 2.80% 2.78% 2.77% 2.76% 120% AFR 3.06% 3.04% 3.03% 3.02% 130% AFR 3.32% 3.29% 3.28% 3.27% 150% AFR 3.84% 3.80% 3.78% 3.77% 175% AFR 4.48% 4.43% 4.41% 4.39% Long-term AFR 2.89% 2.87% 2.86% 2.85% 110% AFR 3.18% 3.16% 3.15% 3.14% 120% AFR 3.47% 3.44% 3.43% 3.42% 130% AFR 3.76% 3.73% 3.71% 3.70% REV. RUL. 2019–08 TABLE 2 Adjusted AFR for April 2019 Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 1.91% 1.90% 1.90% 1.89% Mid-term adjusted AFR 1.93% 1.92% 1.92% 1.91% Long-term adjusted AFR 2.19% 2.18% 2.17% 2.17% REV. RUL. 2019–08 TABLE 3 Rates Under Section 382 for April 2019 Adjusted federal long-term rate for the current month 2.19% 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.) 2.20% REV. RUL. 2019–08 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for April 2019 Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit 7.63% Appropriate percentage for the 30% present value low-income housing credit 3.27% REV. RUL. 2019–08 TABLE 5 Rate Under Section 7520 for April 2019 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 3.0% Rev. Rul. 2019–09 This revenue ruling suspends Rev. Rul. 57–464, 1957–2 C.B. 244, and Rev. Rul. 57–492, 1957–2 C.B. 247, pending the completion of a study by the Department of the Treasury (Treasury Department) and the Internal Revenue Service (Service) regarding the active trade or business (ATB) requirement under sections 355(a)(1)(C) and (b) of the Internal Revenue Code. REVENUE RULINGS In Rev. Rul. 57–464, the Service considered the section 355 qualification of a corporation’s separation of a manufacturing business from a group of real estate assets consisting of an old factory building used for storage and four other buildings: a duplex apartment building rented to employees of the corporation, a small office building rented to a single tenant, and two houses, one of which was occupied by a sister-in-law of the president of the corporation. The use of the old factory building for storage “was not in itself the active operation of a business as defined in the regulations.” The rental activities “produced only a nominal rental” and “negligible” net income, and the properties “were acquired either as an investment or as a convenience to employees of the manufacturing business.” The Service held that the separation did not satisfy the ATB requirement. In Rev. Rul. 57–492, a corporation engaged in refining, transporting, and marketing petroleum products began a separate operation to explore for and produce oil. The exploration and production operation incurred substantial expenditures but “did not include any income producing activity or any source of income” until less than five years preceding its separation from the primary refining, transportation, and marketing operation. The Service held that the exploration and production operation failed to qualify as an ATB because, “[b]efore oil was discovered in commercial quantities . . ., the venture . . . did not include any income producing activity or any source of income.” LAW Section 355(a)(1) provides that, if certain requirements are met, a corporation may distribute stock and securities of a controlled corporation to its shareholders and security holders without recognition of gain or loss or income to the recipient shareholders or security holders. Among those requirements, both the distributing corporation and the controlled corporation must be engaged in an ATB immediately after the distribution. Sections 355(a)(1)(C) and (b), and § 1.355–3(a)(1)(i). Each trade or business must have been actively conducted throughout the five-year period ending on the date of the distribution. Section 355(b)(2)(B) and § 1.355–3(b)(3). Section 1.355–3(b)(2)(ii) describes a “trade or business” as “a specific group of activities [that] are being carried on by the corporation for the purpose of earning income or profit, and the activities included in such group include every operation that forms a part of, or a step in, the process of earning income or profit.” In particular, “[s]uch group of activities ordinarily must include the collection of income and the payment of expenses.” Section 1.355–3(b)(2)(ii). ANALYSIS The Treasury Department and the Service are conducting a study to determine, for purposes of section 355, “whether a business can qualify as an ATB if entrepreneurial activities, as opposed to investment or other non-business activities, take place with the purpose of earning income in the future, but no income has yet been collected.” See IRS statement regarding the active trade or business requirement for section 355 distributions, dated September 25, 2018, available at http://www.irs.gov/newsroom/statements-from-office-of-the-chief-counsel. The ATB analysis underlying the holdings in Rev. Rul. 57–464 and Rev. Rul. 57–492 focuses, in significant part, on the lack of income generated by the activities under consideration. Consequently, these rulings could be interpreted as requiring income generation for a business to qualify as an ATB. Accordingly, Rev. Rul. 57–464 and Rev. Rul. 57–492 are suspended pending completion of the study. See IRM 188.8.131.52.1, para. 9 (Aug. 11, 2004) (providing that a revenue ruling can be suspended “only in rare situations to show that previously published guidance will not be applied pending some future action, such as . . . the outcome of a Service study”). EFFECT ON OTHER REVENUE RULINGS Rev. Rul. 57–464 and Rev. Rul. 57–492 are suspended. DRAFTING INFORMATION The principal author of this revenue ruling is Lola L. Johnson of the Office of Chief Counsel (Corporate). For further information regarding this revenue ruling, please contact Ms. Johnson at (202) 317-5024. Part III. Administrative, Procedural, and Miscellaneous Notice 2019–20 Penalty Relief for Missing Negative Tax Basis Capital Account Information This Notice provides penalty relief under sections 6722 (failure to furnish correct payee statements), 6698 (failure to file partnership return), section 6038(b) and (c) (failure to furnish information with respect to certain partnerships), and any other section of the Internal Revenue Code (Code) for filing or furnishing Schedules K–1 or other forms or statements, where a penalty is imposed solely as a result of failing to include information about partners’ negative tax basis capital accounts for taxable years that began after December 31, 2017, but before January 1, 2019. BACKGROUND Item L of Schedule K–1 to Form 1065 and Item F of Schedule K–1 to Form 8865 require reporting a partner’s capital account. Generally, a partnership may report partner capital to a partner using tax basis, Generally Accepted Accounting Principles, section 704(b) book, or some other method. Pursuant to updates, the 2018 Instructions for Form 1065 and Partner’s Instructions for Schedule K–1 (Form 1065) to Item L now require a partnership that does not report tax basis capital accounts to its partners to report, on line 20 of Schedule K–1 (Form 1065) using code AH, the amount of such partner’s tax basis capital both at the beginning of the year and at the end of the year if either amount is negative (negative tax basis capital account information). The Instructions for Form 8865, Schedule K–1, incorporate this requirement by reference to the Instructions for Form 1065. The Treasury Department and Internal Revenue Service (IRS) have become aware that certain persons and partnerships may be unable to comply timely with this new requirement. PENALTY RELIEF The IRS will waive penalties under section 6722 for failure to furnish a partner a Schedule K–1 (Form 1065) and under section 6698 for failure to file a Schedule K–1 (Form 1065) with a partnership return, under section 6038 for failure to furnish a Schedule K–1 (Form 8865), and under any other section of the Code for failure to file or furnish a Schedule K–1 or any other form or statement, for any penalty that arises solely as a result of failing to include negative tax basis capital account information if both the following conditions are met: 1. The Schedule K–1 or other applicable form or statement is timely filed, including extensions, with the IRS; is timely furnished to the appropriate partner, if applicable; and contains all other required information. 2. The person or partnership required to file the Schedule K–1 or other applicable form or statement files with the IRS, no later than one year after the original, unextended due date of the form to which the Schedule K–1 or other applicable form or statement must be attached, a schedule setting forth, for each partner for which negative tax basis capital account information is required: a. the partnership’s name and Employee Identification Number, if any, and Reference ID Number, if any; b. the partner’s name, address, and taxpayer identification number; and c. the amount of the partner’s tax basis capital account at the beginning and end of the tax year at issue. The schedule should be captioned “Filed Under Notice 2019–20” and accord with instructions and additional guidance posted by the IRS on IRS.gov. The due date for this supplemental schedule is determined without consideration of any extensions, automatic or otherwise, that may apply to the due date for the form itself. The schedule should be sent to the following address: 1973 North Rulon White Blvd. Ogden, UT 84404-7843 MS 4700 Attn: Ogden PTE This penalty relief applies only for a taxable year beginning after December 31, 2017, but before January 1, 2019. To receive a penalty waiver, a person or partnership is not required to file or furnish amended Schedules K-1 or other applicable amended forms or statements to partners or the IRS, or to file an administrative adjustment request under section 6227, if applicable. Partnerships or other persons should not delay filing or furnishing Schedules K–1 or other applicable forms or statements on account of this Notice. The timely filing and furnishing, including extensions, of Schedules K–1 or other applicable forms or statements is a requirement to be eligible for relief under this Notice. The IRS will post instructions and additional information about the relief provided by this Notice in the coming weeks on IRS.gov, where forms, instructions, and other tax assistance are available. The penalty relief under this Notice will allow additional time for persons and partnerships to provide the negative tax basis capital account information with respect to their taxable years beginning after December 31, 2017, but before January 1, 2019. CONTACT INFORMATION The principal author of this Notice is Isaac Brooks Fishman of the Office of the Associate Chief Counsel (Procedure and Administration). For further information regarding this Notice contact Isaac Brooks Fishman at (202) 317-6844 (not a toll-free number). Notice 2019–21 Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), 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 and the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I). YIELD CURVE AND SEGMENT RATES Section 430 specifies the minimum funding requirements that apply to single-employer plans (except for CSEC plans under § 414(y)) 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. Consistent with the methodology specified in Notice 2007–81, the monthly corporate bond yield curve derived from February 2019 data is in Table 2019–2 at the end of this notice. The spot first, second, and third segment rates for the month of February 2019 are, respectively, 3.01, 4.11, and 4.41. The 24-month average segment rates determined under § 430(h)(2)(C)(i) through (iii) must be adjusted pursuant to § 430(h)(2)(C)(iv) to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates. For plan years beginning before 2021, the applicable minimum percentage is 90% and the applicable maximum percentage is 110%. The 25-year average segment rates for plan years beginning in 2018 and 2019 were published in Notice 2017–50, 2017–41 I.R.B. 280, and Notice 2018–73, 2018–40 I.R.B. 526, respectively. 24-MONTH AVERAGE CORPORATE BOND SEGMENT RATES The three 24-month average corporate bond segment rates applicable for March 2019 without adjustment for the 25-year average segment rate limits are as follows: 24-Month Average Segment Rates Without 25-Year Average Adjustment Applicable Month First Segment Second Segment Third Segment March 2019 2.65 3.95 4.48 Based on § 430(h)(2)(C)(iv), the 24-month averages applicable for March 2019, adjusted to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates, are as follows: Adjusted 24-Month Average Segment Rates For Plan Years Beginning In Applicable Month First Segment Second Segment Third Segment 2018 March 2019 3.92 5.52 6.29 2019 March 2019 3.74 5.35 6.11 30-YEAR TREASURY SECURITIES INTEREST RATES Section 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 § 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 February 2019 is 3.02 percent. The Service determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in November 2048 determined each day through February 6, 2019 and the yield on the 30-year Treasury bond maturing in February 2049 determined each day for the balance of the month. For plan years beginning in March 2019, the weighted average of the rates of interest on 30-year Treasury securities and the permissible range of rates used to calculate current liability are as follows: Treasury Weighted Average Rates For Plan Years Beginning In 30-Year Treasury Weighted Average Permissible Range 90% to 105% March 2019 2.93 2.64 to 3.08 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 February 2019 are as follows: Minimum Present Value Segment Rates Month First Segment Second Segment Third Segment February 2019 3.01 4.11 4.41 DRAFTING INFORMATION The principal author of this notice is Tom Morgan of the Office of the Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). However, other personnel from the IRS participated in the development of this guidance. For further information regarding this notice, contact Mr. Morgan at 202-317-6700 or Paul Stern at 202-317-8702 (not toll-free numbers). Table 2019–2 Monthly Yield Curve for February 2019 Derived from February 2019 Data Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield 0.5 2.72 20.5 4.43 40.5 4.41 60.5 4.41 80.5 4.41 1.0 2.84 21.0 4.43 41.0 4.41 61.0 4.41 81.0 4.41 1.5 2.94 21.5 4.42 41.5 4.41 61.5 4.41 81.5 4.41 2.0 3.00 22.0 4.42 42.0 4.41 62.0 4.41 82.0 4.41 2.5 3.04 22.5 4.42 42.5 4.41 62.5 4.41 82.5 4.41 3.0 3.06 23.0 4.42 43.0 4.41 63.0 4.41 83.0 4.41 3.5 3.07 23.5 4.41 43.5 4.41 63.5 4.41 83.5 4.41 4.0 3.09 24.0 4.41 44.0 4.41 64.0 4.41 84.0 4.41 4.5 3.13 24.5 4.41 44.5 4.41 64.5 4.41 84.5 4.41 5.0 3.18 25.0 4.41 45.0 4.41 65.0 4.41 85.0 4.41 5.5 3.24 25.5 4.41 45.5 4.41 65.5 4.41 85.5 4.41 6.0 3.32 26.0 4.41 46.0 4.41 66.0 4.41 86.0 4.41 6.5 3.40 26.5 4.41 46.5 4.41 66.5 4.41 86.5 4.41 7.0 3.49 27.0 4.40 47.0 4.41 67.0 4.41 87.0 4.41 7.5 3.59 27.5 4.40 47.5 4.41 67.5 4.41 87.5 4.41 8.0 3.68 28.0 4.40 48.0 4.41 68.0 4.41 88.0 4.41 8.5 3.77 28.5 4.40 48.5 4.41 68.5 4.41 88.5 4.41 9.0 3.85 29.0 4.40 49.0 4.41 69.0 4.41 89.0 4.41 9.5 3.93 29.5 4.40 49.5 4.41 69.5 4.41 89.5 4.41 10.0 4.01 30.0 4.40 50.0 4.41 70.0 4.41 90.0 4.41 10.5 4.07 30.5 4.40 50.5 4.41 70.5 4.41 90.5 4.41 11.0 4.13 31.0 4.40 51.0 4.41 71.0 4.41 91.0 4.41 11.5 4.19 31.5 4.40 51.5 4.41 71.5 4.41 91.5 4.41 12.0 4.24 32.0 4.40 52.0 4.41 72.0 4.41 92.0 4.41 12.5 4.28 32.5 4.40 52.5 4.41 72.5 4.41 92.5 4.41 13.0 4.31 33.0 4.40 53.0 4.41 73.0 4.41 93.0 4.41 13.5 4.34 33.5 4.40 53.5 4.41 73.5 4.41 93.5 4.41 14.0 4.36 34.0 4.40 54.0 4.41 74.0 4.41 94.0 4.41 14.5 4.38 34.5 4.40 54.5 4.41 74.5 4.41 94.5 4.41 15.0 4.40 35.0 4.40 55.0 4.41 75.0 4.41 95.0 4.41 15.5 4.41 35.5 4.40 55.5 4.41 75.5 4.41 95.5 4.41 16.0 4.42 36.0 4.40 56.0 4.41 76.0 4.41 96.0 4.41 16.5 4.42 36.5 4.40 56.5 4.41 76.5 4.41 96.5 4.41 17.0 4.43 37.0 4.40 57.0 4.41 77.0 4.41 97.0 4.41 17.5 4.43 37.5 4.40 57.5 4.41 77.5 4.41 97.5 4.41 18.0 4.43 38.0 4.41 58.0 4.41 78.0 4.41 98.0 4.41 18.5 4.43 38.5 4.41 58.5 4.41 78.5 4.41 98.5 4.41 19.0 4.43 39.0 4.41 59.0 4.41 79.0 4.41 99.0 4.41 19.5 4.43 39.5 4.41 59.5 4.41 79.5 4.41 99.5 4.41 20.0 4.43 40.0 4.41 60.0 4.41 80.0 4.41 100.0 4.41  Pursuant to § 433(h)(3)(A), the 3rd segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount of the full funding limitation under § 433(c)(7)(C)). Notice 2019–22 Phase-out of Credit for New Qualified Plug-in Electric Drive Motor Vehicles SECTION 1. PURPOSE This notice announces the credit phase-out schedule for new qualified plug-in electric drive motor vehicles sold by General Motors, LLC. SECTION 2. BACKGROUND Section 30D(a) of the Internal Revenue Code provides for a credit for certain new qualified plug-in electric drive motor vehicles. The new qualified plug-in electric drive motor vehicle credit begins to phase out for a manufacturer’s vehicles in the second calendar quarter after the calendar quarter in which at least 200,000 of the manufacturer’s vehicles that qualify for the credit have been sold for use or lease in the United States (determined on a cumulative basis for sales after December 31, 2009). Taxpayers purchasing the manufacturer’s vehicles during the first two calendar quarters of the phase-out period may claim 50 percent of the otherwise allowable credit. Taxpayers purchasing the manufacturer’s vehicles during the third and fourth calendar quarters of the phase-out period may claim 25 percent of the otherwise allowable credit. No credit is available for vehicles purchased after the last day of the fourth calendar quarter of the phase-out period. Notice 2009–89, 2009–48 I.R.B. 714, provides procedures for a vehicle manufacturer (or in the case of a foreign vehicle manufacturer, its domestic distributor) to certify to the Internal Revenue Service (Service) both (1) that a particular make, model and model year of vehicle qualifies as a plug-in electric drive motor vehicle and (2) the amount of the credit allowable with respect to that vehicle. Section 5.05 of Notice 2009–89 requires a manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) that has received from the Service an acknowledgement of its certification for a particular make, model, and model year of vehicle to submit to the Service a report of the number of qualified vehicles sold by the manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) to consumers or retail dealers during the calendar quarter. A qualified vehicle is defined for this purpose as any vehicle that is a new qualified plug-in electric drive motor vehicle. In accordance with section 5.05 of Notice 2009–89, General Motors, LLC has submitted reports that indicate that its cumulative sales of qualified vehicles reached the 200,000-vehicle limit during the calendar quarter ending December 31, 2018. Accordingly, the credit for all new qualified plug-in electric drive motor vehicles sold by General Motors, LLC will begin to phase out April 1, 2019. SECTION 3. SCOPE OF NOTICE This notice applies to any make, model, or model year of new qualified plug-in electric drive motor vehicle that is – (1) sold by General Motors, LLC; and (2) purchased for use or lease in the United States on or after April 1, 2019. SECTION 4. CREDIT AMOUNT If a new qualified plug-in electric drive motor vehicle sold by General Motors, LLC is purchased for use or lease on or after April 1, 2019, the allowable credit is as follows: (1) For vehicles purchased for use or lease on or after April 1, 2019, and on or before September 30, 2019, the credit is 50 percent of the otherwise allowable amount determined under § 30D(b); (2) For vehicles purchased for use or lease on or after October 1, 2019, and on or before March 31, 2020, the credit is 25 percent of the otherwise allowable amount determined under § 30D(b); (3) For vehicles purchased for use or lease on or after April 1, 2020, no credit is allowable. Qualifying Vehicle Full Credit When Purchased through 3/31/2019; (first quarter =100% credit allowed) Reduced Credit When Purchased from 4/1/2019 through 9/30/2019 (2nd & 3rd quarters = 50% credit allowed) Reduced Credit When Purchased from 10/1/2019 through 3/31/2020 (4th & 5th quarters = 25% credit allowed) Credit available starting 4/1/2020 Chevrolet Volt 2011–2019 $7,500 $3,750 $1,875 $0 Chevrolet Spark EV 2014–2016 $7,500 $3,750 $1,875 $0 Chevrolet Bolt 2017–2019 $7,500 $3,750 $1,875 $0 Cadillac ELR 2014, 2016 $7,500 $3,750 $1,875 $0 Cadillac CT6 Plug-In 2017–2018 $7,500 $3,750 $1,875 $0 SECTION 5: DRAFTING INFORMATION The principal author of this notice is Maggie Stehn of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice contact Ms. Stehn at (202) 317-4547 (not a toll-free number). Notice 2019–24 Determination of Housing Cost Amounts Eligible for Exclusion or Deduction for 2019 SECTION 1. PURPOSE This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for specific locations for 2019. 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) allows a qualified individual to elect to exclude from gross income the foreign earned income and housing cost amount of such individual. The term “housing cost amount” is generally the total of the housing expenses for the taxable year minus a base housing amount. See section 911(c)(1). For this purpose, the housing expenses taken into account are limited to an amount that is tied to the maximum foreign earned income exclusion. Specifically, the limit on such housing expenses equals 30 percent (adjusted as may be provided under the Secretary’s authority under section 911(c)(2)(B)) of the maximum exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the taxable year. See sections 911(c)(2)(A) and 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 $31,770 ($105,900 x .30) for 2019. Similarly, the computation of the base housing amount is also tied to the maximum foreign earned income exclusion. Specifically, the base housing amount is 16% of the maximum exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the taxable year. See sections 911(c)(1)(B) and 911(d)(1). Assuming that the entire taxable year of a qualified individual is within the applicable period, the base housing amount for 2019 is $16,944 ($105,900 x .16). Section 911(c)(2)(B) authorizes the Secretary to issue regulations or other guidance to adjust the percentage under section 911(c)(2)(A)(i) (which determines the limit on housing expenses) based on geographic differences in housing costs relative to housing costs in the United States. Pursuant to this authority, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) have published annual notices concerning the limitation on the section 911 housing cost amounts since the 2006 taxable year. For more background on the foreign housing exclusion, https://www.irs.gov/individuals/international-taxpayers/foreign-housing-exclusion-or-deduction. SECTION 3. TABLE OF ADJUSTED LIMITATIONS FOR 2019 The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $31,770) for 2019. 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 Perth 32,300 88.49 Australia Sydney 61,000 167.12 Austria Vienna 35,400 96.99 Bahamas, The Nassau 49,700 136.16 Bahrain Bahrain 48,300 132.33 Barbados Barbados 37,700 103.29 Barbados Bridgetown 37,700 103.29 Belgium Brussels 41,900 114.79 Belgium Gosselies 37,300 102.19 Belgium Mons 37,300 102.19 Belgium SHAPE/Chievres 37,300 102.19 Bermuda Bermuda 90,000 246.58 Brazil Rio de Janeiro 35,100 96.16 Brazil Sao Paulo 56,600 155.07 Canada Calgary 38,500 105.48 Canada Montreal 52,500 143.84 Canada Ottawa 43,600 119.45 Canada Quebec 34,900 95.62 Canada Toronto 50,200 137.53 Canada Vancouver 43,700 119.73 Canada Victoria 39,500 108.22 Cayman Islands Grand Cayman 48,000 131.51 Chile Santiago 39,100 107.12 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 Democratic Republic of the Congo Kinshasa 42,000 115.07 Denmark Copenhagen 43,704 119.74 Dominican Republic Santo Domingo 45,500 124.66 Ecuador Quito 38,200 104.66 El Salvador San Salvador 32,000 87.67 Estonia Tallinn 46,600 127.67 France Garches 71,800 196.71 France Lyon 39,700 108.77 France Marseille 38,700 106.03 France Montpellier 32,000 87.67 France Paris 71,800 196.71 France Sevres 71,800 196.71 France Suresnes 71,800 196.71 France Versailles 71,800 196.71 France All cities other than Garches, Le Havre, Lyon, Marseille, Montpellier, Paris, Sevres, Suresnes, and Versailles 31,900 87.40 Germany Babenhausen 35,200 96.44 Germany Baumholder 35,000 95.89 Germany Berlin 43,000 117.81 Germany Birkenfeld 35,000 95.89 Germany Boeblingen 42,300 115.89 Germany Bonn 42,000 115.07 Germany Cologne 56,200 153.97 Germany Darmstadt 35,200 96.44 Germany Frankfurt am Main 36,800 100.82 Germany Garmisch-Partenkirchen 33,100 90.68 Germany Gelnhausen 44,400 121.64 Germany Giessen 36,000 98.63 Germany Grafenwoehr 35,600 97.53 Germany Hanau 44,400 121.64 Germany Heidelberg 32,900 90.14 Germany Idar-Oberstein 35,000 95.89 Germany Ingolstadt 50,300 137.81 Germany Kaiserslautern, Landkreis 43,200 118.36 Germany Karlsruhe 34,000 93.15 Germany Koblenz 34,600 94.79 Germany Leimen 32,900 90.14 Germany Ludwigsburg 42,300 115.89 Germany Mainz 48,100 131.78 Germany Mannheim 32,900 90.14 Germany Munich 50,300 137.81 Germany Nellingen 42,300 115.89 Germany Neubruecke 35,000 95.89 Germany Ober Ramstadt 35,200 96.44 Germany Oberammergau 33,100 90.68 Germany Pfullendorf 34,600 94.79 Germany Pirmasens 43,200 118.36 Germany Rheinau 32,900 90.14 Germany Schwetzingen 32,900 90.14 Germany Seckenheim 32,900 90.14 Germany Sembach 43,200 118.36 Germany Stuttgart 42,300 115.89 Germany Vilseck 35,600 97.53 Germany Wahn 42,000 115.07 Germany Wiesbaden 48,100 131.78 Germany Zweibrueken 43,200 118.36 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, Pfullendorf, Pirmasens, Rheinau, Rheinberg, Schwabach, Schwetzingen, Seckenheim, Sembach, Stuttgart, Twisteden, Vilseck, Wahn, Wertheim, Wiesbaden, Worms, Wuerzburg, Zirndorf and Zweibrueken 34,600 94.79 Ghana Accra 36,000 98.63 Greece Athens 35,200 96.44 Greece Elefsis 35,200 96.44 Greece Ellinikon 35,200 96.44 Greece Mt. Parnis 35,200 96.44 Greece Mt. Pateras 35,200 96.44 Greece Nea Makri 35,200 96.44 Greece Piraeus 35,200 96.44 Greece Tanagra 35,200 96.44 Guatemala Guatemala City 42,000 115.07 Guinea Conakry 51,300 140.55 Guyana Georgetown 35,000 95.89 Holy See, The Holy See, The 47,900 131.23 Hungary Budapest 32,500 89.04 India Mumbai 67,920 186.08 India New Delhi 56,124 153.76 Indonesia Jakarta 37,776 103.50 Ireland Dublin 41,600 113.97 Ireland Shannon Area 32,900 90.14 Israel Beer Sheva 54,100 148.22 Israel Tel Aviv 50,800 139.18 Italy Genoa 41,800 114.52 Italy La Spezia 40,400 110.68 Italy Milan 71,500 195.89 Italy Naples 49,100 134.52 Italy Parma 36,300 99.45 Italy Pordenone-Aviano 38,100 104.38 Italy Rome 47,900 131.23 Italy Turin 35,800 98.08 Italy Vicenza 39,900 109.32 Jamaica Kingston 41,200 112.88 Japan Atsugi 41,600 113.97 Japan Camp Zama 41,600 113.97 Japan Chiba-Ken 41,600 113.97 Japan Fussa 41,600 113.97 Japan Gifu 74,300 203.56 Japan Haneda 41,600 113.97 Japan Iwakuni 32,800 89.86 Japan Kanagawa-Ken 41,600 113.97 Japan Komaki 74,300 203.56 Japan Machidi-Shi 41,600 113.97 Japan Misawa 33,200 90.96 Japan Nagoya 74,300 203.56 Japan Okinawa Prefecture 58,600 160.55 Japan Osaka-Kobe 90,664 248.39 Japan Sagamihara 41,600 113.97 Japan Saitama-Ken 41,600 113.97 Japan Sasebo 34,700 95.07 Japan Tachikawa 41,600 113.97 Japan Tokyo 93,200 255.34 Japan Tokyo-to 41,600 113.97 Japan Yokohama 49,600 135.89 Japan Yokosuka 50,200 137.53 Japan Yokota 39,200 107.40 Jerusalem Jerusalem 49,000 134.25 Jerusalem West Bank 49,000 134.25 Kazakhstan Almaty 48,000 131.51 Korea Camp Colbern 54,200 148.49 Korea Camp Market 57,600 157.81 Korea Camp Mercer 54,200 148.49 Korea K–16 57,600 157.81 Korea Kimpo Airfield 57,600 157.81 Korea Munsan 32,900 90.14 Korea Osan AB 37,100 101.64 Korea Pyongtaek 41,000 112.33 Korea Seoul 57,600 157.81 Korea Suwon 57,600 157.81 Korea Taegu 34,900 95.62 Korea Tongduchon 35,200 96.44 Korea Uijongbu 31,800 87.12 Kuwait Kuwait City 64,400 176.44 Kuwait All cities other than Kuwait City 57,700 158.08 Luxembourg Luxembourg 39,200 107.40 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 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 35,100 96.16 Netherlands Eygelshoven 35,100 96.16 Netherlands Hague, The 57,000 156.16 Netherlands Heerlen 35,100 96.16 Netherlands Hoensbroek 35,100 96.16 Netherlands Hulsberg 35,100 96.16 Netherlands Kerkrade 35,100 96.16 Netherlands Landgraaf 35,100 96.16 Netherlands Maastricht 35,100 96.16 Netherlands Papendrecht 34,400 94.25 Netherlands Rotterdam 34,400 94.25 Netherlands Schaesburg 35,100 96.16 Netherlands Schinnen 35,100 96.16 Netherlands Schiphol 52,900 144.93 Netherlands Ypenburg 57,000 156.16 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. 33,900 92.88 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 35,200 96.44 Oman Muscat 41,300 113.15 Panama Panama City 39,500 108.22 Peru Lima 39,100 107.12 Philippines Cavite 32,400 88.77 Philippines Manila 37,380 102.41 Portugal Alverca 43,800 120.00 Portugal Lisbon 43,800 120.00 Qatar Doha 45,888 125.72 Qatar All cities other than Doha 32,400 88.77 Romania Bucharest 41,200 112.88 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 Saudi Arabia Riyadh 40,000 109.59 Singapore Singapore 82,900 227.12 Slovenia Ljubljana 50,200 137.53 South Africa Pretoria 39,300 107.67 Spain Barcelona 40,600 111.23 Spain Madrid 58,300 159.73 Spain Rota 35,600 97.53 Spain Valencia 33,500 91.78 Suriname Paramaribo 33,000 90.41 Switzerland Bern 66,200 181.37 Switzerland Geneva 94,300 258.36 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 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 Brookwood 35,500 97.26 United Kingdom Cambridge 34,400 94.25 United Kingdom Caversham 73,800 202.19 United Kingdom Cheltenham 41,900 114.79 United Kingdom Croughton 36,200 99.18 United Kingdom Fairford 34,200 93.70 United Kingdom Farnborough 54,700 149.86 United Kingdom Felixstowe 33,200 90.96 United Kingdom Gibraltar 44,616 122.24 United Kingdom Harrogate 37,400 102.47 United Kingdom High Wycombe 62,100 170.14 United Kingdom Huntingdon 35,500 97.26 United Kingdom Kemble 34,200 93.70 United Kingdom Lakenheath 45,600 124.93 United Kingdom London 69,200 189.59 United Kingdom Loudwater 54,600 149.59 United Kingdom Menwith Hill 37,400 102.47 United Kingdom Mildenhall 45,600 124.93 United Kingdom Oxfordshire 34,800 95.34 United Kingdom Plymouth 34,800 95.34 United Kingdom Portsmouth 34,800 95.34 United Kingdom Reading 62,100 170.14 United Kingdom Rochester 35,700 97.81 United Kingdom Samlesbury 35,500 97.26 United Kingdom Southampton 44,200 121.10 United Kingdom Surrey 48,402 132.61 United Kingdom Waterbeach 35,500 97.26 United Kingdom Wiltshire 33,500 91.78 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, Huntingdon, Hythe, Kemble, Lakenheath, Liverpool, London, Loudwater, Menwith Hill, Mildenhall, Nottingham, Oxfordshire, Plymouth, Portsmouth, Reading, Rochester, Samlesbury, Southampton, Surrey, Waterbeach, Welford, West Byfleet, and Wiltshire. 35,500 97.26 Venezuela Caracas 57,000 156.16 Vietnam Hanoi 46,800 128.22 Vietnam Ho Chi Minh City 42,000 115.07 SECTION 4. OPTION TO APPLY 2019 ADJUSTED LIMITATIONS TO 2018 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 2018” in Notice 2018–44. A qualified individual incurring housing expenses in such a location during 2018 may apply the adjusted limitation on housing expenses provided in Section 3 of this notice for 2019 in lieu of the amounts provided in the “Table of Adjusted Limitations for 2018” in Notice 2018–44 (and as set forth in the Instructions to Form 2555, Foreign Earned Income, for 2018). The Treasury Department and the IRS anticipate that future annual notices providing adjustments to housing expense limitations will make a similar option available to qualified individuals that incur housing expenses in the immediately preceding year. For example, when adjusted housing expense limitations for 2020 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2019 taxable year. SECTION 5. Filing Prior Year or Amended Tax Returns 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; Notice 2014–29, 2014–18 I.R.B. 991; Notice 2015–33, 2015–18 I.R.B. 934; Notice 2016–21, 2016–12 I.R.B. 465; Notice 2017–21, 2017–13 I.R.B. 1026; and Notice 2018–44, 2018–21 I.R.B. 611 are relisted to assist those individuals who are filing prior year or amended tax returns. SECTION 6. EFFECT ON OTHER DOCUMENTS This notice supersedes Notice 2006–87, 2006–43 I.R.B. 766; Notice 2007–25, 2007–12 I.R.B. 760; Notice 2007–77, 2007–40 I.R.B. 735; Notice 2008–107, 2008–50 I.R.B. 1265; 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; Notice 2014–29, 2014–18 I.R.B. 991; Notice 2015–33, 2015–18 I.R.B. 934; Notice 2016–21, 2016–12 I.R.B. 465; Notice 2017–21, 2017–13 I.R.B. 1026, and Notice 2018–44, 2018–21 I.R.B. 611. SECTION 7. EFFECTIVE DATE This notice is effective for taxable years beginning on or after January 1, 2019. However, as provided in Section 4, a taxpayer may apply the 2019 adjusted housing limitations contained in Section 3 of this notice to his or her taxable year beginning in 2018. SECTION 8. DRAFTING INFORMATION The principal author of this notice is Kate Y. Hwa of the Office of Associate Chief Counsel (International). For further information regarding this notice contact Kate Y. Hwa at (202) 317-5001 (not a toll-free number). Rev. Proc. 2019–15 SECTION 1. PURPOSE .01 This revenue procedure provides information to any individual who failed to meet the eligibility requirements of section 911(d)(1) of the Internal Revenue Code because adverse conditions in a foreign country precluded the individual from meeting those requirements. .02 The Internal Revenue Service previously has listed countries for which the eligibility requirements of section 911(d)(1) of the Code are waived under section 911(d)(4) because of adverse conditions in those countries. See Rev. Proc. 2018–23, 2018–17, I.R.B. 516. SECTION 2. BACKGROUND .01 Section 911(a) of the Code allows a “qualified individual,” as defined in section 911(d)(1), to exclude from gross income the individual’s foreign earned income and the housing cost amount. .02 Section 911(d)(1) of the Code defines the term “qualified individual” as an individual whose tax home is in a foreign country and who is (A) a citizen of the United States and establishes to the satisfaction of the Secretary of the Treasury that the individual has been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire taxable year, or (B) a citizen or resident of the United States who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days. .03 Section 911(d)(4) of the Code provides an exception to the eligibility requirements of section 911(d)(1). An individual will be treated as a qualified individual with respect to a period in which the individual was a bona fide resident of, or was present in, a foreign country if the individual left the country during a period for which the Secretary of the Treasury, after consultation with the Secretary of State, determines that individuals were required to leave because of war, civil unrest, or similar adverse conditions that precluded the normal conduct of business. An individual must establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements. SECTION 3. APPLICATION .01 For 2018, the Secretary of the Treasury, in consultation with the Secretary of State, has determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business in the following countries beginning on the specified date: Country Date of Departure On or After Congo, Democratic Republic of the December 14, 2018 Cuba January 4, 2018 Iraq September 28, 2018 Nicaragua July 6, 2018 For example, for purposes of section 911 of the Code, an individual who left the Democratic Republic of Congo on or after December 14, 2018, will be treated as a qualified individual with respect to the period during which that individual was present in, or was a bona fide resident of, the Democratic Republic of Congo if the individual establishes a reasonable expectation that he or she would have met the requirements of section 911(d) but for those conditions. .02 To qualify for relief under section 911(d)(4) of the Code, an individual must have established residency, or have been physically present, in the foreign country on or before the date that the Secretary of the Treasury determines that individuals were required to leave the foreign country. For example, individuals who were first physically present or established residency in the Democratic Republic of Congo after December 14, 2018, are not eligible to qualify for the exception provided in section 911(d)(4) of the Code for taxable year 2018. SECTION 4. EFFECT ON OTHER DOCUMENTS Previously issued revenue procedures under section 911(d)(4) remain in full force and effect. However, Rev. Proc. 2018–23, 2018–17, I.R.B. 516, is supplemented. SECTION 5. INQUIRIES A taxpayer who needs assistance on how to claim this exclusion, or on how to file an amended return, should consult the section under the heading Foreign Earned Income Exclusion at https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad; consult the section under the heading How to Get Tax Help at the same web address; or contact a local IRS office. SECTION 6. DRAFTING INFORMATION The principal author of this revenue procedure is Kate Y. Hwa of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure contact Kate Y. Hwa at (202) 317-5001 (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 2018–27 through 2018–52 is in Internal Revenue Bulletin 2018–52, dated December 27, 2018. Bulletin 2019–14 Action on Decision: Article Issue Link Page 2019-1 2019-08 I.R.B. 2019-08 569 Announcements: Article Issue Link Page 2019-1 2019-06 I.R.B. 2019-06 566 2019-2 2019-12 I.R.B. 2019-12 910 Notices: Article Issue Link Page 2019-01 2019-02 I.R.B. 2019-02 275 2019-02 2019-02 I.R.B. 2019-02 281 2019-03 2019-03 I.R.B. 2019-03 350 2019-04 2019-02 I.R.B. 2019-02 282 2019-05 2019-02 I.R.B. 2019-02 283 2019-06 2019-03 I.R.B. 2019-03 353 2019-07 2019-09 I.R.B. 2019-09 740 2019-08 2019-03 I.R.B. 2019-03 354 2019-09 2019-04 I.R.B. 2019-04 403 2019-10 2019-13 I.R.B. 2019-13 913 2019-11 2019-05 I.R.B. 2019-05 430 2019-13 2019-08 I.R.B. 2019-08 580 2019-16 2019-10 I.R.B. 2019-10 763 2019-17 2019-12 I.R.B. 2019-12 907 2019-18 2019-13 I.R.B. 2019-13 915 2019-19 2019-12 I.R.B. 2019-12 907 2019-20 2019-14 I.R.B. 2019-14 927 2019-21 2019-14 I.R.B. 2019-14 927 2019-22 2019-14 I.R.B. 2019-14 931 2019-24 2019-14 I.R.B. 2019-14 932 Proposed Regulations: Article Issue Link Page REG-104259-18 2019-02 I.R.B. 2019-02 300 REG-104352-18 2019-03 I.R.B. 2019-03 357 REG-106089-18 2019-05 I.R.B. 2019-05 431 REG-134652-18 2019-09 I.R.B. 2019-09 747 REG-141739-08 2019-09 I.R.B. 2019-09 757 Revenue Procedures: Article Issue Link Page 2019-1 2019-01 I.R.B. 2019-01 1 2019-2 2019-01 I.R.B. 2019-01 106 2019-3 2019-01 I.R.B. 2019-01 130 2019-4 2019-01 I.R.B. 2019-01 146 2019-5 2019-01 I.R.B. 2019-01 230 2019-6 2019-02 I.R.B. 2019-02 284 2019-7 2019-01 I.R.B. 2019-01 268 2019-8 2019-03 I.R.B. 2019-03 347 2019-9 2019-02 I.R.B. 2019-02 293 2019-10 2019-02 I.R.B. 2019-02 296 2019-11 2019-09 I.R.B. 2019-09 742 2019-12 2019-04 I.R.B. 2019-04 401 2019-13 2019-09 I.R.B. 2019-09 744 2019-15 2019-14 I.R.B. 2019-14 939 Revenue Rulings: Article Issue Link Page 2019-03 2019-02 I.R.B. 2019-02 272 2019-04 2019-07 I.R.B. 2019-07 567 2019-05 2019-11 I.R.B. 2019-11 766 2019-06 2019-14 I.R.B. 2019-14 919 2019-07 2019-10 I.R.B. 2019-10 761 2019-08 2019-14 I.R.B. 2019-14 923 2019-09 2019-14 I.R.B. 2019-14 925 Treasury Decisions: Article Issue Link Page 9844 2019-11 I.R.B. 2019-11 781 9845 2019-08 I.R.B. 2019-08 570 9846 2019-09 I.R.B. 2019-09 583 9847 2019-09 I.R.B. 2019-09 670 9848 2019-11 I.R.B. 2019-11 897 9850 2019-12 I.R.B. 2019-12 904 9851 2019-14 I.R.B. 2019-14 917 Effect of Current Actions on Previously Published Items Finding List of Current Actions on Previously Published Items A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin 2018–52, dated December 27, 2018. Bulletin 2019–14 How to get the Internal Revenue Bulletin INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/. 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 Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave. NW, IR-6230 Washington, DC 20224.