Bulletin No. 2012-3 January 17, 2012 HIGHLIGHTS OF THIS ...Bulletin No. 2012-3 January 17, 2012 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying

Bulletin No. 2012-3January 17, 2012

HIGHLIGHTSOF THIS ISSUEThese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2012–2, page 286.Federal rates; adjusted federal rates; adjusted federallong-term rate and the long-term exempt rate. For pur-poses of sections 382, 642, 1274, 1288, and other sectionsof the Code, tables set forth the rates for January 2012.

Notice 2012–3, page 289.This notice provides guidance on current refunding issues (asdefined in Treas. Reg. section 1.150–1(d)(3)) that refund out-standing prior issues of bonds that qualify for tax-exempt bondfinancing under certain disaster relief bond programs. The no-tice applies to current refunding issues that are used to refundoriginal tax-exempt bonds that met the qualification require-ments for one of the following programs: (1) “qualified GulfOpportunity Zone Bonds” under section 1400N of the Code;(2) “qualified Midwestern disaster area bonds” under section702(d)(1) of the Heartland Disaster Tax Relief Act of 2008 (the“Heartland Disaster Act”); and (3) “qualified Hurricane Ike disas-ter area bonds” under section 704(a) of the Heartland DisasterAct.

Notice 2012–5, page 291.This notice provides a safe harbor reporting method that an eli-gible real estate mortgage investment conduit (REMIC) may useto satisfy its reporting obligations with respect to informationregarding REMIC assets that the REMIC must report to residualinterest holders.

Rev. Proc. 2012–13, page 295.Maximum vehicle values. This procedure provides the max-imum vehicle values for use with the special valuation rules un-der regulations section 1.61–21(d) and (e). These values are

adjusted for inflation and must be adjusted annually by refer-ence to the Consumer Price Index.

Rev. Proc. 2012–14, page 296.Section 856 — REIT safe harbor for certain REMIC in-vestments. Safe harbor providing the extent to which invest-ments by a real estate investment trust (REIT) in a regularor a residual interest in certain real estate mortgage invest-ment conduits (REMICs) are qualifying investments and gener-ate qualifying income for REIT purposes under section 856(c)of the Code.

EMPLOYEE PLANS

Notice 2012–6, page 293.This notice extends and expands the transition relief providedunder Rev. Rul. 2011–1, 2011–2 I.R.B. 251, and Rev. Rul.2008–40, 2008–2 C.B. 166, for certain group trusts, certainretirement trusts that qualify under the Puerto Rico Internal Rev-enue Code, and that participate in group trusts, and certainqualified retirement plans that benefit Puerto Rico residents.This notice also provides additional time for governmental re-tiree benefit plans described in section 401(a)(24) of the Code(section 401(a)(24) plans) to be amended to satisfy the appli-cable requirements of Rev. Rul. 2011–1. Rev. Ruls. 2011–1and 2008–40 modified.

(Continued on the next page)

Actions Relating to Court Decisions is on the page following the Introduction.Finding Lists begin on page ii.

EXEMPT ORGANIZATIONS

Notice 2012–4, page 290.This notice notifies tax-exempt organizations that the IRS Mod-ernized eFile system will not be available from January 1, 2012through February 29, 2012 for electronic filing for Form 990,Return of Organization Exempt From Income Tax, Form 990-EZ,Short Form Return of Organization Exempt From Income Tax,Form 990-PF, Return of Private Foundation, or Form 1120-POL,U.S. Income Tax Return for Certain Political Organizations. Inaddition, this notice describes options available to organiza-tions affected by this two month suspension period and pro-vides relief under sections 6081, 6651 and 6652 of the Codewith respect to certain filing requirements.

ADMINISTRATIVE

Rev. Proc. 2012–13, page 295.Maximum vehicle values. This procedure provides the max-imum vehicle values for use with the special valuation rules un-der regulations section 1.61–21(d) and (e). These values areadjusted for inflation and must be adjusted annually by refer-ence to the Consumer Price Index.

January 17, 2012 2012–3 I.R.B.

The IRS MissionProvide America’s taxpayers top-quality service by helpingthem understand and meet their tax responsibilities and en-

force the law with integrity and fairness to all.

IntroductionThe Internal Revenue Bulletin is the authoritative instrument ofthe Commissioner of Internal Revenue for announcing officialrulings and procedures of the Internal Revenue Service and forpublishing Treasury Decisions, Executive Orders, Tax Conven-tions, legislation, court decisions, and other items of generalinterest. It is published weekly and may be obtained from theSuperintendent of Documents on a subscription basis. Bulletincontents are compiled semiannually into Cumulative Bulletins,which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all sub-stantive rulings necessary to promote a uniform application ofthe tax laws, including all rulings that supersede, revoke, mod-ify, or amend any of those previously published in the Bulletin.All published rulings apply retroactively unless otherwise indi-cated. Procedures relating solely to matters of internal man-agement are not published; however, statements of internalpractices and procedures that affect the rights and duties oftaxpayers are published.

Revenue rulings represent the conclusions of the Service on theapplication of the law to the pivotal facts stated in the revenueruling. In those based on positions taken in rulings to taxpayersor technical advice to Service field offices, identifying detailsand information of a confidential nature are deleted to preventunwarranted invasions of privacy and to comply with statutoryrequirements.

Rulings and procedures reported in the Bulletin do not have theforce and effect of Treasury Department Regulations, but theymay be used as precedents. Unpublished rulings will not berelied on, used, or cited as precedents by Service personnel inthe disposition of other cases. In applying published rulings andprocedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,and Service personnel and others concerned are cautionedagainst reaching the same conclusions in other cases unlessthe 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 ofthe 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, Leg-islation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references to thesesubjects are contained in the other Parts and Subparts. Alsoincluded in this part are Bank Secrecy Act Administrative Rul-ings. Bank Secrecy Act Administrative Rulings are issued bythe Department of the Treasury’s Office of the Assistant Secre-tary (Enforcement).

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

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

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

2012–3 I.R.B. January 17, 2012

Actions Relating to Decisions of the Tax CourtIt is the policy of the Internal Rev-

enue Service to announce at an early datewhether it will follow the holdings in cer-tain cases. An Action on Decision is thedocument making such an announcement.An Action on Decision will be issued atthe discretion of the Service only on unap-pealed issues decided adverse to the gov-ernment. Generally, an Action on Decisionis issued where its guidance would be help-ful to Service personnel working with thesame or similar issues. Unlike a TreasuryRegulation or a Revenue Ruling, an Actionon Decision is not an affirmative statementof Service position. It is not intended toserve as public guidance and may not becited as precedent.

Actions on Decisions shall be reliedupon within the Service only as conclu-sions applying the law to the facts in theparticular case at the time the Action onDecision was issued. Caution should beexercised in extending the recommenda-tion of the Action on Decision to similarcases where the facts are different. More-over, the recommendation in the Action onDecision may be superseded by new legis-lation, regulations, rulings, cases, or Ac-tions on Decisions.

Prior to 1991, the Service publishedacquiescence or nonacquiescence only in

certain regular Tax Court opinions. TheService has expanded its acquiescenceprogram to include other civil tax caseswhere guidance is determined to be help-ful. Accordingly, the Service now mayacquiesce or nonacquiesce in the holdingsof memorandum Tax Court opinions, aswell as those of the United States DistrictCourts, Claims Court, and Circuit Courtsof Appeal. Regardless of the court decid-ing the case, the recommendation of anyAction on Decision will be published inthe Internal Revenue Bulletin.

The recommendation in every Actionon Decision will be summarized as ac-quiescence, acquiescence in result only,or nonacquiescence. Both “acquiescence”and “acquiescence in result only” meanthat the Service accepts the holding ofthe court in a case and that the Servicewill follow it in disposing of cases withthe same controlling facts. However, “ac-quiescence” indicates neither approvalnor disapproval of the reasons assignedby the court for its conclusions; whereas,“acquiescence in result only” indicatesdisagreement or concern with some or allof those reasons. “Nonacquiescence” sig-nifies that, although no further review wassought, the Service does not agree withthe holding of the court and, generally,

will not follow the decision in disposingof cases involving other taxpayers. Inreference to an opinion of a circuit courtof appeals, a “nonacquiescence” indicatesthat the Service will not follow the hold-ing on a nationwide basis. However, theService will recognize the precedentialimpact of the opinion on cases arisingwithin the venue of the deciding circuit.

The Actions on Decisions published inthe weekly Internal Revenue Bulletin areconsolidated semiannually and appear inthe first Bulletin for July and the Cumula-tive Bulletin for the first half of the year. Asemiannual consolidation also appears inthe first Bulletin for the following Januaryand in the Cumulative Bulletin for the lasthalf of the year.

The Commissioner does ACQUIESCEin the following decision:

Ronald Andrew Mayo andLeslie Archer Mayo v.Commissioner,1

136 T.C. 81 (2011)

1 Acquiescence relating to the court’s holding that business expenses incurred by a professional gambler are deductible under section 162 of the Code and are not subject to section 165(d).

January 17, 2012 2012–3 I.R.B.

Part I. Rulings and Decisions Under the Internal Revenue Codeof 1986Section 42.—Low-IncomeHousing Credit

The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the monthof January 2012. See Rev. Rul. 2012-2, page 286.

Section 280G.—GoldenParachute Payments

Federal short-term, mid-term, and long-term ratesare set forth for the month of January 2012. See Rev.Rul. 2012-2, page 286.

Section 382.—Limitationon Net Operating LossCarryforwards and CertainBuilt-In Losses FollowingOwnership Change

The adjusted applicable federal long-term rate isset forth for the month of January 2012. See Rev.Rul. 2012-2, page 286.

Section 412.—MinimumFunding Standards


Section 467.—CertainPayments for the Use ofProperty or Services


Section 468.—SpecialRules for Mining and SolidWaste Reclamation andClosing Costs


Section 482.—Allocationof Income and DeductionsAmong Taxpayers


Section 483.—Interest onCertain Deferred Payments


Section 642.—SpecialRules for Credits andDeductions


Section 807.—Rules forCertain Reserves


Section 846.—DiscountedUnpaid Losses Defined


Section 1274.—Determi-nation of Issue Price in theCase of Certain Debt Instru-ments Issued for Property(Also Sections 42, 280G, 382, 412, 467, 468, 482,483, 642, 807, 846, 1288, 7520, 7872.)

Federal rates; adjusted federal rates;adjusted federal long-term rate and thelong-term exempt rate. For purposes of

sections 382, 642, 1274, 1288, and othersections of the Code, tables set forth therates for January 2012.

Rev. Rul. 2012–2

This revenue ruling provides variousprescribed rates for federal income taxpurposes for January 2012 (the currentmonth). Table 1 contains the short-term,mid-term, and long-term applicable fed-eral rates (AFR) for the current monthfor purposes of section 1274(d) of theInternal Revenue Code. Table 2 containsthe short-term, mid-term, and long-termadjusted applicable federal rates (ad-justed AFR) for the current month forpurposes of section 1288(b). Table 3 setsforth the adjusted federal long-term rateand the long-term tax-exempt rate de-scribed in section 382(f). Table 4 containsthe appropriate percentages for deter-mining the low-income housing creditdescribed in section 42(b)(1) for build-ings placed in service during the currentmonth. However, under section 42(b)(2),the applicable percentage for non-feder-ally subsidized new buildings placed inservice after July 30, 2008, and beforeDecember 31, 2013, shall not be less than9%. Table 5 contains the federal ratefor determining the present value of anannuity, an interest for life or for a termof years, or a remainder or a reversionaryinterest for purposes of section 7520.Finally, Table 6 contains the deemedrate of return for transfers made duringcalendar year 2012 to pooled income fundsdescribed in section 642(c)(5) that havebeen in existence for less than 3 taxableyears immediately preceding the taxableyear in which the transfer was made.

2012–3 I.R.B. 286 January 17, 2012

REV. RUL. 2012–2 TABLE 1

Applicable Federal Rates (AFR) for January 2012

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

AFR .19% .19% .19% .19%110% AFR .21% .21% .21% .21%120% AFR .23% .23% .23% .23%130% AFR .25% .25% .25% .25%

Mid-term

AFR 1.17% 1.17% 1.17% 1.17%110% AFR 1.29% 1.29% 1.29% 1.29%120% AFR 1.40% 1.40% 1.40% 1.40%130% AFR 1.53% 1.52% 1.52% 1.52%150% AFR 1.77% 1.76% 1.76% 1.75%175% AFR 2.06% 2.05% 2.04% 2.04%

Long-term

AFR 2.63% 2.61% 2.60% 2.60%110% AFR 2.89% 2.87% 2.86% 2.85%120% AFR 3.15% 3.13% 3.12% 3.11%130% AFR 3.42% 3.39% 3.38% 3.37%


Adjusted AFR for January 2012

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjustedAFR

.38% .38% .38% .38%

Mid-term adjusted AFR 1.50% 1.49% 1.49% 1.49%

Long-term adjustedAFR

3.47% 3.44% 3.43% 3.42%


Rates Under Section 382 for January 2012

Adjusted federal long-term rate for the current month 3.47%

Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjustedfederal long-term rates for the current month and the prior two months.) 3.55%


Appropriate Percentages Under Section 42(b)(1) for January 2012

Note: Under Section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service afterJuly 30, 2008, and before December 31, 2013, 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%

January 17, 2012 287 2012–3 I.R.B.


Rate Under Section 7520 for January 2012

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 1.4%


Deemed Rate for Transfers to New Pooled Income Funds During 2012

Deemed rate of return for transfers during 2012 to pooled income funds that have been in existence forless than 3 taxable years 1.8%

Section 1288.—Treatmentof Original Issue Discounton Tax-Exempt Obligations


Section 7520.—ValuationTables


Section 7872.—Treatmentof Loans With Below-MarketInterest Rates


2012–3 I.R.B. 288 January 17, 2012

Part III. Administrative, Procedural, and MiscellaneousCurrent Refundings ofTax-Exempt Bonds in CertainDisaster Relief Bond Programs

Notice 2012–3

SECTION 1. PURPOSE

This notice provides guidance on “cur-rent refunding issues” (as defined in§ 1.150–1(d)(3)) that refund outstand-ing prior issues of bonds that qualify fortax-exempt bond financing under certaindisaster relief bond programs. In particu-lar, this notice applies to current refundingissues that are used (directly or indirectlyin a series of current refunding issues) torefund original tax-exempt bonds that metthe qualification requirements for one ofthe following programs: (1) qualified GulfOpportunity Zone Bonds under § 1400N(“GO Zone Bonds”) of the Internal Rev-enue Code (the “Code”); (2) qualifiedMidwestern disaster area bonds under§ 702(d)(1) of the Heartland Disaster TaxRelief Act of 2008 (the “Heartland Disas-ter Act”), Subtitle A of Title VII of the TaxExtenders and Alternative Minimum TaxRelief Act of 2008, Division C of Pub-lic Law 110–343, 122 Stat. 3765 (2008)(“Midwest Disaster Area Bonds”); and(3) qualified Hurricane Ike disaster areabonds under § 704(a) of the Heartland Dis-aster Act (“Hurricane Ike Disaster AreaBonds”). These original qualified tax-ex-empt bonds are referred to collectively inthis notice as “Qualified Bonds.”

SECTION 2. BACKGROUND

Section 101 of the Gulf OpportunityZone Act of 2005, Pub. L. No. 109–135,119 Stat. 2577, 2578 (2005) (“GO ZoneAct”) added §§ 1400M and 1400N to theCode to provide certain tax benefits in adefined portion of the Hurricane Katrinadisaster area. Section 1400N(a)(2) autho-rizes the issuance of tax-exempt GO ZoneBonds. Section 1400N(a)(2) sets forth cer-tain requirements for issuing these bonds,including a requirement that such bonds be“designated” as qualified GO Zone Bondsby a specified State or local governmentalofficial or state bond commission. Section1400N(a)(3) imposes a bond volume capon the maximum aggregate face amount

of bonds that may be designated as qual-ified GO Zone Bonds. Section 764 ofthe Tax Relief, Unemployment InsuranceReauthorization, and Job Creation Act of2010, Pub. L. No. 111–312, 124 Stat.3296, 3324 (2010), extended the dead-line for the issuance of GO Zone Bondsthrough December 31, 2011. For furtherguidance on GO Zone Bonds, see Notice2006–41, 2006–1 C.B. 857 (May 1, 2006).

Sections 702(d)(1) and 704(a) of theHeartland Disaster Act provide generallythat the special provisions for tax-exemptprivate activity bond financing in the GOZone under § 1400N of the Code applywith certain modifications to tax-exemptprivate activity bond financing in the Mid-western Disaster Area and Hurricane IkeDisaster Area, respectively. Midwest Dis-aster Area bonds and Hurricane Ike Dis-aster Area bonds must be issued by De-cember 31, 2012. For further guidance onMidwest Disaster Area Bonds and Hurri-cane Ike Disaster Area Bonds, see Notice2010–10, 2010–3 I.R.B. 299 (January 19,2010).

The statutory provisions relating tothe Qualified Bonds are silent regardingthe permissibility of current refundingsof these bonds after the applicable bondissuance deadlines. Under a substantiallysimilar predecessor provision for qualifiedNew York Liberty Bonds, the Treasury De-partment and the IRS previously providedguidance on the allowability of currentrefundings within certain size limitationsfor purposes of bond issuance deadlinesapplicable to those bonds. See Notice2003–40, 2003–2 C.B. 10, at Question 5(July 7, 2003). Cf. Staff of Joint Commit-tee on Taxation, Technical Explanation ofthe Revenue Provisions of H.R. 4440, The“Gulf Opportunity Zone Act of 2005,” asPassed by the House of Representativesand the Senate 5–6, JCX–88–05 (Decem-ber 16, 2005) (including a description ofthe Liberty Bond provision in the discus-sion of present law and also stating that“[c]urrent refundings of outstanding [GOZone] bonds issued under the provisiondo not count against the aggregate vol-ume limit to the extent that the principalamount of the refunding bonds does notexceed the outstanding principal amountof the bonds being refunded”).

SECTION 3. SCOPE ANDAPPLICATION

3.01. Guidance and Reliance. Pendingthe promulgation and effective date of fu-ture administrative or regulatory guidance,taxpayers may rely on the guidance pro-vided in this notice.

3.02. Scope of Application. This noticeapplies to any current refunding issue thatis used (directly or indirectly in a series ofcurrent refunding issues) to refund originalQualified Bonds described in Section 1 ofthis notice if the following requirementsare met:

(1) The original Qualified Bonds wereissued before the deadline for the issuanceof such bonds under § 1400N(a)(2)(D) forGO Zone Bonds or under the modified ver-sion of such provision for Midwest Disas-ter Area Bonds or Hurricane Ike DisasterArea Bonds, as applicable, or any statutoryextension of such deadline.

(2) Except as provided herein, the “is-sue price” (as defined in § 1.148–1(b)) ofthe current refunding issue is no greaterthan the outstanding stated principalamount of the refunded bonds. For re-funded bonds originally issued with morethan a de minimis amount of original is-sue discount or premium (as defined in§ 1.148–1(b)) the present value of therefunded bonds (as determined under§ 1.148–4(e)) must be used in lieu of theoutstanding stated principal amount todetermine the maximum issue price of thecurrent refunding issue.

(3) The current refunding issue other-wise meets all applicable requirements forthe issuance of tax-exempt private activ-ity bonds as Qualified Bonds, including,without limitation, the requirement under§ 147(b) that the average bond maturity beno longer than 120 percent of the averagereasonably expected economic life of thefacilities financed or refinanced with thenet proceeds of such issue.

3.03. Guidance. A current refundingissue that meets the requirements of Sec-tion 3.02 of this notice may be issued afterthe specified deadline for the issuanceof the original Qualified Bonds under§ 1400N(a)(2)(D) for GO Zone Bonds (orunder the modified version of such pro-vision for Midwest Disaster Area Bondsor Hurricane Ike Disaster Area Bonds,

January 17, 2012 289 2012–3 I.R.B.

as applicable) and be treated as an issueof Qualified Bonds. In addition, in thecase of such a current refunding issue,a designation of the original QualifiedBonds by a specified State or local govern-mental official or state bond commissionthat meets the designation requirementof § 1400N(a)(2)(C) for GO Zone Bonds(or the modified version of such provi-sion for Midwest Disaster Area Bondsor Hurricane Ike Disaster Area Bonds,as applicable) is treated as meeting thisdesignation requirement for the current re-funding issue without further designationor further official State or local govern-mental action.

3.04. No Inferences. Other thanbonds issued to currently refund Quali-fied Bonds, to which this notice expresslyapplies, no inference should be drawnfrom this notice that bonds issued to re-fund other types of bonds, such as buildAmerica bonds under § 54AA, after theirstatutory deadline for issuance meet thequalifications for such types of bonds.

SECTION 4. DRAFTINGINFORMATION

The principal authors of this noticeare Timothy L. Jones and Vicky Tsilasof the Office of Associate Chief Counsel(Financial Institutions & Products). Forfurther information regarding this notice,contact Vicky Tsilas at (202) 622–3980(not a toll-free call).

Certain Filing Changes forTax-Exempt Organizations

Notice 2012–4

This notice notifies tax-exempt organi-zations (organizations) that the IRS Mod-ernized eFile (MeF) system will not beavailable from January 1, 2012 throughFebruary 29, 2012 for electronic filing ofForm 990, Return of Organization ExemptFrom Income Tax, Form 990–EZ, ShortForm Return of Organization Exempt FromIncome Tax, Form 990–PF, Return of Pri-vate Foundation, or Form 1120–POL, U.S.Income Tax Return for Certain PoliticalOrganizations (affected returns). In ad-dition, this notice describes options avail-able to organizations affected by this two

month suspension period and provides re-lief under sections 6081, 6651, and 6652of the Internal Revenue Code with respectto certain filing requirements. This no-tice also notifies tax-exempt hospital or-ganizations that, beginning with the 2011tax year, Form 990, Schedule H, Part V,Section B (Part V.B) is no longer optional,with the exception of lines 1 through 7.

Two-Month Suspension of IRS MeFSystem for 990 and 1120–POL Filers

In order to facilitate systems and pro-gramming changes, the IRS is suspend-ing the availability of its MeF system forfiling Forms 990, 990–EZ, 990–PF, and1120–POL from January 1, 2012 throughFebruary 29, 2012 (the suspension period).Although no organizations will be able tofile these forms electronically during thesuspension period, only organizations withfiling due dates (or extended due dates)for such returns in the suspension periodare considered “affected organizations” forpurposes of this notice. Paper forms maycontinue to be filed during the suspensionperiod and affected organizations may takeadvantage of the relief provided in this no-tice including the ability to file electron-ically by March 30, 2012. Organizationsthat file Form 990–N (e-Postcard) maycontinue to file electronically during thisperiod.

Extended Filing Date for EligibleAffected Organizations

In order to minimize the impact onaffected organizations, the IRS is grant-ing an extension of time to file affectedreturns to March 30, 2012 to organiza-tions whose original due date (or firstthree-month extended due date) for theaffected return occurs during the suspen-sion period. The extension of time tofile applies to all such organizations withaffected return filings due during this pe-riod, whether or not they are required tofile electronically. Affected organizationsrequired to file electronically may fileelectronically prior to January 1, 2012 orbetween March 1, 2012 and March 30,2012. Affected organizations that arenot required to file electronically maydo the same or may file on paper byMarch 30, 2012. This extension of timeto file is automatic; therefore, affected

organizations need not file Form 8868,Application for Extension of Time To Filean Exempt Organization Return, if theyfile their returns by March 30, 2012.

Because extensions of time to file, gen-erally, may not exceed six months, theextension of time to file to March 30, 2012provided by this notice is not available foraffected organizations that have alreadyobtained two three-month extensionsof time to file (i.e., the full six-monthextension allowed by statute). However,as discussed in more detail below, the IRSwill provide relief from any late filingpenalty to affected organizations thatwere previously granted two three-monthextensions of time to file that expire duringthe suspension period, provided theirreturns are filed by March 30, 2012. Inaddition, as indicated in more detail below,this notice provides such organizationsnormally required to file electronicallythe option of filing on paper during thesuspension period.

Interaction between the March 30, 2012Extension and Other Extensions

An affected organization that has notpreviously received an extension andwishes to extend its filing due date un-til after March 30, 2012, may request anautomatic three-month extension of timeto file by properly completing and filingForm 8868 by its original due date. Forexample, an organization with an originalForm 990 due date of February 15, 2012that properly completes and files Form8868 by February 15, 2012 will receivea three-month extension of time to filethat ends on May 15, 2012. In the case ofan organization that has already obtainedan automatic three-month extension thatends during the suspension period, the IRSwill grant the organization an additional3-month extension if the organizationproperly completes and files Form 8868by its extended due date. For example, aFebruary 15, 2012 extended due date willbe further extended to May 15, 2012 ifthe organization properly completes andfiles Form 8868 by February 15, 2012.An affected organization that has alreadyreceived two three-month extensions, thesecond of which ends during the suspen-sion period, may not request a furtherextension (but as discussed below, nopenalty for failure to file will apply if the

2012–3 I.R.B. 290 January 17, 2012

organization files its return by March 30,2012).

Extension of Time to File Does NotExtend Time to Pay Any Tax Liability

Organizations are reminded that anextension of time to file, including theautomatic extension of time to file toMarch 30, 2012 provided in this notice,is not an extension of time to pay any taxliabilities that may be due for the year.Therefore, an organization that has a taxliability for a return that has a due date thatfalls within the suspension period mustmake a timely payment of the amount dueeither by making an estimated tax paymentor by filing its return on paper, if permittednormally or under this notice as describedbelow, and remitting payment with itsreturn or by electronic funds transfer ifrequired.

Relief from Late Filing Penalty

An affected organization with a secondextended filing due date that falls duringthe suspension period is not eligible foran additional extension of time to file.However, if such an organization files itsreturn by March 30, 2012, it will havereasonable cause for its late filing and,therefore, will not be subject to a latefiling penalty. Such an organization thatfiles by March 30, 2012 is not requiredto file a Reasonable Cause Statementin order to take advantage of this latefiling penalty relief. However, in orderto avoid receiving a system-generatedpenalty notice for late filing, each affectedorganization should attach a ReasonableCause Statement to its return. AppendixA of this notice contains an exampleof a Reasonable Cause Statement thatorganizations can use. If an affectedorganization erroneously receives asystem-generated penalty notice for latefiling from the IRS, the organizationshould call the telephone number on thepenalty notice to request that the IRS abatethe penalty in accordance with Notice2012–4.

Limited Option to File on Paper duringthe Suspension Period

The automatic extension and automaticpenalty relief provisions of this notice are

designed to ensure that any affected or-ganization whose filing is delayed by rea-son of the suspension of the MeF systemwill not suffer adverse consequences andwill be accorded the same results as if itfiled a return by the normal filing dead-line. The IRS recognizes, however, thatsome affected organizations generally re-quired to file electronically that have al-ready obtained two three-month filing ex-tensions may be uncomfortable relying onthe late filing penalty relief provided in thisnotice. In that circumstance, the affectedorganization may file its return on paper.Organizations that are normally requiredto file electronically and choose to file onpaper pursuant to this notice may receivea system-generated form asking for an ex-planation of why they did not file electron-ically. It will be sufficient to respond “Pa-per Filing Pursuant to Notice 2012–4.”

Schedule H for Hospitals

Section 9007 of the Patient Protec-tion and Affordable Care Act (AffordableCare Act), Pub. L. No. 111–148, 124Stat. 119 (March 23, 2010), included newrequirements for tax-exempt hospital or-ganizations and their hospital facilities,including information return reportingrequirements. To gather information onhospital organizations’ compliance withthese requirements and on related policiesand practices, the IRS revised the Form990, Schedule H for tax year 2010 to add anew Part V.B. To give the hospital commu-nity more time to familiarize itself with thetypes of information the IRS is requesting,the IRS made Part V.B optional for taxyear 2010. See Announcement 2011–37,2011–27 I.R.B. 37. Beginning in tax year2011, Part V.B is no longer optional, withthe exception of lines 1 through 7, regard-ing community health needs assessments(CHNAs), as the CHNA requirements ofthe Affordable Care Act are only effectivefor tax years beginning after March 23,2012. Accordingly, hospital organizationsthat are reqiired to file the 2011 Form990 are required to complete all parts andsections of the 2011 Schedule H, includingPart V.B, except lines 1 through 7 of PartV.B.

The IRS has considered public input onPart V.B, and has made revisions to PartV.B for tax year 2011. The IRS antici-pates making further revisions to Part V.B

for future years and welcomes further pub-lic input. To be considered for the taxyear 2012 form revisions, input must bereceived by January 15, 2012. Input sub-mitted after such date will be consideredfor future years. Input can be submitted [email protected] or the follow-ing address:

Internal Revenue ServiceAttn: Stephen Clarke (Notice 2012–4)SE:T:EO1111 Constitution Avenue, N.W.Washington, D.C. 20224

The principal author of this notice isStephen Clarke of the Tax Exempt andGovernment Entities Division. For furtherinformation regarding this notice, pleasecontact Mr. Clarke at (202) 283–9474 (nota toll-free number).

APPENDIX A

Reasonable Cause Statement

This return is being filed betweenMarch 1, 2012, and March 30, 2012, asdirected by the IRS in Notice 2012–4,because electronic filing was not avail-able January 1, 2012 through February 29,2012. We request that penalties be waivedbecause it would be inequitable to imposea penalty on us due to the unusual circum-stances requiring us to delay the filing ofthis return.

Safe Harbor Reporting Methodfor Eligible REMICS Requiredto Report on Schedule QInformation with Respect toREMIC Assets

Notice 2012–5

PURPOSE

This notice provides a safe harbor re-porting method that an eligible real estatemortgage investment conduit (REMIC)may use to satisfy its reporting obliga-tions under § 1.860F–4(e)(1)(ii) of theIncome Tax Regulations with respect toinformation regarding REMIC assets thatthe REMIC must report to residual interestholders on a Schedule Q (Form 1066),Quarterly Notice to Residual Interest

January 17, 2012 291 2012–3 I.R.B.

Holder of REMIC Taxable Income or NetLoss Allocation (Schedule Q).

THE HOME AFFORDABLEREFINANCE PROGRAM (HARP)

In April 2009, the Federal HousingFinance Agency (FHFA) and the UnitedStates Department of the Treasury intro-duced the Home Affordable RefinanceProgram (HARP) as part of the UnitedStates Government’s Making Home Af-fordable Program. On October 24, 2011,FHFA, with Federal National MortgageAssociation (Fannie Mae) and FederalHome Loan Mortgage Corporation (Fred-die Mac), announced an expansion ofHARP in an effort to serve additional el-igible borrowers who can benefit fromrefinancing their home mortgages. De-tails of the expansion were announced onNovember 15, 2011.

HARP serves borrowers who may nototherwise qualify for refinancing, eitherbecause the value of their homes hasdeclined or because they cannot obtainmortgage insurance. The program is avail-able to borrowers who owe more on theirmortgages than the value of their homes.HARP provides these homeowners withthe ability to refinance their mortgagesinto more affordable and sustainable mort-gages.

LAW

REMICs are widely used securitizationvehicles for mortgages. REMICs are gov-erned by sections 860A through 860G ofthe Internal Revenue Code. For an en-tity to qualify as a REMIC, all of the in-terests in the entity must consist of one ormore classes of regular interests and a sin-gle class of residual interests, see section860D(a), and those interests must be issuedon the startup day, within the meaning of§ 1.860G–2(k).

Under section 860D(a)(4), an entityqualifies as a REMIC only if, among otherthings, as of the close of the third monthbeginning after the startup day and atall times thereafter, substantially all ofits assets consist of qualified mortgagesand permitted investments. In general,

the term “qualified mortgage” means anobligation that is principally secured byan interest in real property. See section860G(a)(3)(A). That is, an obligation se-cured by an “interest in real property” isnot a qualified mortgage unless the obli-gation is “principally secured” by such aninterest.

An obligation is “principally secured” ifthe fair market value of the interest in realproperty securing the obligation equals atleast 80 percent of the adjusted issue priceof the obligation (the 80-percent test). See§ 1.860G–2(a)(1). The regulations requirethe 80-percent test to be satisfied eitherat the time the obligation was originatedor at the time the sponsor contributes theobligation to the REMIC. After the startupday, the regulations generally do not re-quire retesting of the value of the interestin real property that secures the obligation.

The REMIC regulations cross-ref-erence the real estate investment trust(REIT) regulations to define the term“interest in real property.” Specifically,§ 1.860G–2(a)(4) provides that the def-inition of “interests in real property”in § 1.856–3(c) and the definition of“real property” in § 1.856–3(d) applyfor purposes of section 860G(a)(3) and§ 1.860G–2(a). In addition, a mortgagepass-thru certificate that is guaranteed byFannie Mae or Freddie Mac is includedas an obligation secured by an interestin real property for purposes of section860G(a)(3)(A). See § 1.860G–2(a)(5).

Section 1.860F–4(e) provides that,at the close of each calendar quarter, aREMIC must provide to each person whoheld a residual interest in the REMIC dur-ing that quarter notice on Schedule Q ofcertain information, including informationwith respect to REMIC assets. Under§ 1.860F–4(e)(1)(ii)(A), a REMIC mustprovide to each of its residual interestholders the following information: (1) thepercentage of REMIC assets that are de-scribed in section 7701(a)(19) (Category1); and (2) the percentage of REMIC assetsthat are real estate assets defined in section856(c)(5)(B) (Category 2),1 computed byreference to the average adjusted basis (asdefined in section 1011) of the REMIC

assets during the calendar quarter.2 If thepercentage of REMIC assets representedby either Category 1 or Category 2 is atleast 95 percent, then the REMIC needonly specify on Schedule Q that the per-centage for that category was at least 95percent (the 95-percent asset-reportingtest).

Under § 1.860F–4(e)(1)(ii)(B), if,for any calendar quarter after 1988, the95-percent asset-reporting test is not metwith respect to assets in Category 2 (thatis, real estate assets as defined in section856(c)(5)(B)), then for that calendar quar-ter, the REMIC must provide the followingadditional information to any REIT thatholds a residual interest:

(1) The percentage of REMIC as-sets described in section 856(c)(4)(A),computed by reference to the averageadjusted basis of the REMIC assets dur-ing the calendar quarter (as described in§ 1.860F–4(e)(1)(iii)),

(2) The percentage of REMIC grossincome (other than gross income fromprohibited transactions defined in sec-tion 860F(a)(2)) described in section856(c)(3)(A) through (E), computed as ofthe close of the calendar quarter, and

(3) The percentage of REMIC grossincome (other than gross income fromprohibited transactions defined in section860F(a)(2)) that is described in section856(c)(3)(F) (which refers to income orgain from foreclosure property), computedas of the close of the calendar quarter. Forthis purpose, the term “foreclosure prop-erty” has the meaning specified in section860G(a)(8) (which governs REMICs),rather than the closely related definition of“foreclosure property” in section 856(e)(which otherwise would determine theincome or gain that is described in section856(c)(3)(F)).

Section 1.860G–2(a)(1) generally treatsa mortgage loan as an obligation “princi-pally secured by an interest in real prop-erty” for purposes of section 860G(a)(3)if the loan is secured by an interest inreal property that is worth at least 80 per-cent of the outstanding stated principal ofthe loan (in other words, the loan-to-valueratio of the loan—commonly referred to

1 The regulation refers to former section 856(c)(6)(B). Section 1255 of the Taxpayer Relief Act of 1997 (P.L. 105–34) redesignated former section 856(c)(6)(B) as current section 856(c)(5)(B).

2 Section 1.860F–4(e)(1)(ii)(A) also requires a REMIC to provide information with respect to the percentage of REMIC assets that are qualifying real property loans under section 593. Section1616(a) of the Small Business Job Protection Act of 1996 (P. L. 104–188), however, repealed the section 593 reserve method of accounting for bad debts of thrift institutions for tax yearsbeginning after December 31, 1995. Accordingly, whether assets are “qualifying real property loans under section 593” is no longer relevant, and the reporting of this information to residualinterest holders is unnecessary.

2012–3 I.R.B. 292 January 17, 2012

as “LTV”—is not greater than 125 per-cent).3 If, however, a REMIC holds one ormore qualified mortgages that are less than95-percent secured by an interest in realproperty, the REMIC may fail the 95-per-cent asset-reporting test and may be re-quired to report additional information toresidual interest holders with respect to theREMIC assets.

SAFE HARBOR REPORTINGMETHOD

As a safe harbor for purposesof a REMIC’s reporting obligationto residual interest holders under§ 1.860F–4(e)(1)(ii), if a REMIC is an“eligible REMIC” as defined below and ifthe percentage of its assets represented byeither Category 1 or Category 2 is less than95 percent but at least 80 percent, then theREMIC need only specify on Schedule Qthat the percentage for that category wasat least 80 percent.

To qualify as an “eligible REMIC” un-der this notice—

1. The REMIC must have a guaranteefrom Fannie Mae or Freddie Mac thatwill supplement amounts received bythe REMIC as required to permit thepayment of principal and interest, asapplicable, on both the regular inter-ests and residual interests issued bythe REMIC; and

2. All of the qualified mortgages (includ-ing mortgage pass-thru certificates)that are held by the REMIC must besecured by interests in single-family(one-to-four unit) dwellings.

See also Rev. Proc. 2012–14, this bul-letin, for guidance to REITs that hold aregular or residual interest in an eligibleREMIC.

EFFECTIVE DATE

The safe harbor reporting method de-scribed in this notice applies to reportingfor calendar quarters ending on or after De-cember 31, 2011.

DRAFTING INFORMATION

The principal author of this notice isDiana Imholtz of the Office of Associate

Chief Counsel (Financial Institutions andProducts). For further information regard-ing this notice, contact Ms. Imholtz at202–622–3920 (not a toll-free call).

(Also 26 CFR 1.414(l)–1, 1.933–1, 1.501(a)–1, and301.7805–1.)

Qualified Pension,Profit-Sharing, and StockBonus Plans; Exemption fromTax on Corporations, CertainTrusts, Etc.

Notice 2012–6

I. PURPOSE

This notice extends and expands thetransition relief provided under Rev. Rul.2011–1, 2011–2 I.R.B. 251, and Rev.Rul. 2008–40, 2008–2 C.B. 166, for cer-tain group trusts, certain retirement truststhat qualify under the Puerto Rico Inter-nal Revenue Code (Puerto Rico Code)and that participate in group trusts, andcertain qualified retirement plans that ben-efit Puerto Rico residents. This noticealso provides additional time for govern-mental retiree benefit plans described in§ 401(a)(24) of the Internal Revenue Code(Code) (§ 401(a)(24) plans) to be amendedto satisfy the applicable requirements ofRev. Rul. 2011–1.

II. BACKGROUND

Rev. Rul. 81–100, 1981–1 C.B. 326,provides that qualified retirement plansand individual retirement accounts are per-mitted to pool their assets for investmentpurposes in a group trust (“81–100 grouptrusts”) if certain specified requirementsare satisfied. Rev. Rul. 81–100 was clari-fied and modified by Rev. Rul. 2004–67,2004–2 C.B. 28. Rev. Rul. 2011–1 revisesand restates the generally applicable rulesfor group trusts described in Rev. Rul.81–100, 1981–1 C.B. 326, as clarified andmodified by Rev. Rul. 2004–67. Rev.Rul. 2011–1 permits the participation in81–100 group trusts of certain retiree ben-efit plans, such as governmental retiree

benefit plans under § 401(a)(24), in addi-tion to § 401(a) qualified retirement plans,if certain requirements are met.

Section 1022(i)(1) of the EmployeeRetirement Income Security Act of 1974,Pub. L. 93–406 (ERISA) provides a taxexemption under § 501(a) of the Code forcertain plans that satisfy the qualificationrequirements under the Puerto Rico Code(“section 1022(i)(1) plans”).

Rev. Rul. 2008–40 holds that a transferof amounts from a trust under a plan qual-ified under § 401(a) to a nonqualified for-eign trust is treated as a distribution fromthe transferor plan. Rev. Rul. 2008–40holds further that a transfer of assets andliabilities from a qualified plan to a planthat satisfies the plan qualification require-ments under section 1165 of the PuertoRico Code is also treated as a distributionfrom the transferor plan, even if the planis a section 1022(i)(1) plan. Rev. Rul.2008–40 provided transition relief for atransfer from a qualified plan to a section1022(i)(1) plan that occurred before Jan-uary 1, 2011.

Rev. Rul. 2011–1 provides tempo-rary relief relating to investments of theassets of certain section 1022(i)(1) plansin 81–100 group trusts, and modifies thetransition relief provided in Rev. Rul.2008–40 relating to transfers from qual-ified plans to section 1022(i)(1) plans.Specifically, under the heading “Plans De-scribed in Section 1022(i)(1) of ERISA,”Rev. Rul. 2011–1 provides that:

The Service anticipates issuing guid-ance as to whether a plan described insection 1022(i)(1) of ERISA may par-ticipate in an 81–100 group trust. Untilsuch guidance is issued, the Servicewill not treat a group trust as failingto satisfy the requirements of this rev-enue ruling merely because the grouptrust includes the assets of a section1022(i)(1) plan as long as the section1022(i)(1) plan (1) was participating inthe group trust as of January 10, 2011,or (2) holds assets that had been heldby a qualified plan immediately priorto the transfer of those assets to thesection 1022(i)(1) plan pursuant to thetransition relief in Rev. Rul. 2008–40,as modified by this revenue ruling. Inaddition, Rev. Rul. 2008–40 is hereby

3 In general, the adjusted issue price of a home mortgage loan is equal to or slightly less than the outstanding stated principal of the loan. Thus, although LTV is based on stated principalrather than on adjusted issue price, if LTV is not greater than 125 percent, then the criterion for “principally secured” will generally be satisfied (that is, the value of the real property collateralwill be at least 80 percent of the adjusted issue price).

January 17, 2012 293 2012–3 I.R.B.

modified to extend the transition relieffor transfers from a qualified plan to asection 1022(i)(1) transferee plan foran additional year. Thus, “January 1,2012” is substituted for “January 1,2011” each place it appears in theTransition Relief section of Rev. Rul.2008–40.When Rev Rul. 2011–1 and 2008–40

were issued, the qualification provisionsfor retirement plans were contained insection 1165 of the Puerto Rico Code.On January 31, 2011, the retirement planqualification provisions of the Puerto RicoCode were extensively amended.1 Theseprovisions, which now appear at section1081.01 of the Puerto Rico Code, applyto plans qualified under both U.S. andPuerto Rico law (sometimes referred toas “dual-qualified plans”), as well as tosection 1022(i)(1) plans.

III. EXTENSION AND EXPANSIONOF RELIEF

The Service anticipates issuing guid-ance responding to comments received inconnection with Rev. Rul. 2011–1. Ac-cordingly, the following relief is provided.

A. ERISA Section 1022(i)(1) Plans

1. Expansion of relief under Rev. Rul.2011–1 relating to 81–100 group truststatus of certain trusts containingsection 1022(i)(1) plan investments

The relief provided in Rev. Rul.2011–1 under the heading “Plans De-scribed in Section 1022(i)(1) of ERISA”continues to apply. In addition, that reliefis expanded to cover an 81–100 grouptrust with respect to an investment by asection 1022(i)(1) plan that is the recipientof a transfer of assets from a qualifiedretirement plan pursuant to the transitionrelief under Rev. Rul. 2008–40, as modi-fied by Rev. Rul. 2011–1 and this notice,if assets of the transferor plan were heldin the 81–100 group trust on January 10,2011.

2. Extension of transition relief underRev. Rul. 2008–40 relating to taxconsequences of certain transfers tosection 1022(i)(1) plans

(i) Extension of transfer deadline untilfurther guidance for certain qualifiedplans invested in group trusts

The relief provided in paragraphs 2,3, and 4(b) under the Transition Reliefheading in Rev. Rul. 2008–40 is ex-tended for transfers to a section 1022(i)(1)transferee plan from a qualified retirementplan that participated in an 81–100 grouptrust on January 10, 2011, until a deadlineto be set forth in future published guid-ance. It is expected that, when furtherguidance relating to participation of sec-tion 1022(i)(1) plans in group trusts is pub-lished, that guidance will set a future dead-line for transfers covered by this extension.

(ii) One-year general extension oftransfer deadline

The Service recognizes that a sponsorof a qualified retirement plan that benefitsPuerto Rico residents may need additionaltime to evaluate whether to spin off theportion of the plan benefiting Puerto Ricoresidents to a section 1022(i)(1) plan in or-der to consider the effect of the changes tothe Puerto Rico Code enacted earlier thisyear. Accordingly, Rev. Rul. 2008–40is hereby further modified to extend therelief provided in paragraphs 2, 3, and 4(b)under the Transition Relief heading in Rev.Rul. 2008–40 for transfers to a section1022(i)(1) transferee plan from any qual-ified retirement plan until December 31,2012, regardless of whether the qualifiedretirement plan participates in a grouptrust.

B. Governmental Retiree Benefit Plans

In order to ensure that the governingdocuments of § 401(a)(24) plans may betimely amended to satisfy the require-ments of Rev. Rul. 2011–1, the rulingis modified to provide that, in the caseof a § 401(a)(24) plan for which the au-thority to amend the plan is held by alegislative body that meets in legislativesession, the plan will not fail to satisfy therequirements of Rev. Rul. 2011–1 if the

governing document is modified to satisfythe applicable requirements of Rev. Rul.2011–1 by the earlier of:

1. The close of the first regular legisla-tive session of the legislative bodywith the authority to amend the planthat begins on or after January 1,2012; or

2. January 1, 2015.

IV. COMMENTS REQUESTED

In general, if an entity that is not a grouptrust retiree benefit plan as defined in theholding of Rev. Rul. 2011–1 (an “ineli-gible entity”) participates in a group trust,the consequences described in the hold-ings of Rev. Rul. 2011–1, including thetax status of the group trust being derivedfrom the tax status of the participating enti-ties to the extent of their equitable interestin the group trust, would not apply to thegroup trust or to any of the entities that areinvested in the trust. Comments are re-quested on whether the rule stating that thetax status of the group trust is derived fromthe tax status of the participating entitiesto the extent of their equitable interest inthe group trust should be extended to caseswhere the equitable interest in the grouptrust is held by an ineligible entity that isan employee benefit plan if (a) the plan istax exempt under § 501 or a similar ruleand (b) in all other respects the require-ments in paragraphs (1) through (8) ofthe holding of Rev. Rul. 2011–1 (includ-ing the exclusive benefit requirement in(5) and the separate account requirementin (6)) are satisfied. Comments shouldbe submitted by April 16, 2012 (Notice2012–6), Room 5203, Internal RevenueService, POB 7604 Ben Franklin Station,Washington, D.C. 20044. Comments maybe hand delivered Monday through Fridaybetween the hours of 8 a.m. and 4 p.m. toCC:PA:LPD:PR (Notice 2012–6),Courier’s Desk, Internal RevenueService, 1111 Constitution Ave., N.W.,Washington D.C. Alternatively, commentsmay be submitted via the Internet [email protected] include “Notice 2012–6” inthe subject line of any electroniccommunication. All materials submittedwill be available for public inspection andcopying.

1 See Código de Rentas Internas para un Nuevo Puerto Rico de la Ley Núm. 1 de 31 de enero de 2011.

2012–3 I.R.B. 294 January 17, 2012

V. EFFECT ON OTHERDOCUMENTS

Rev. Ruls. 2011–1 and 2008–40 aremodified.


The principal authors of this noticeare Diane Bloom and Robert Walsh ofthe Employee Plans, Tax Exempt andGovernment Entities Division. For fur-ther information regarding this notice,please call the Employee Plans’ tax-payer assistance telephone service at1–877–829–5500 (a toll-free number) be-tween the hours of 8:00 a.m. and 4:30 p.m.Eastern Time, Monday through Friday, orat [email protected].

26 CFR 1.61–21: Taxation of fringe benefits.(Also: Internal Revenue Code §§ 61, 280F.)

Rev. Proc. 2012–13

SECTION 1. PURPOSE

.01 This revenue procedure provides:(1) the maximum value of employer-pro-vided vehicles first made available to em-ployees for personal use in calendar year2012 for which the vehicle cents-per-milevaluation rule provided under section1.61–21(e) of the Income Tax Regula-tions may be applicable is $15,900 for apassenger automobile and $16,700 for atruck or van; (2) the maximum value ofemployer-provided vehicles first madeavailable to employees for personal use incalendar year 2012 for which the fleet-av-erage valuation rule provided under sec-tion 1.61–21(d) of the regulations maybe applicable is $21,100 for a passengerautomobile and $21,900 for a truck or van.

SECTION 2. BACKGROUND

.01 If an employer provides an em-ployee with a vehicle that is availableto the employee for personal use, thevalue of the personal use must generallybe included in the employee’s incomeand wages. Internal Revenue Code § 61;Treas. Reg. § 1.61–21.

.02 For employer-provided passen-ger automobiles (including trucks andvans) made available to employees for

personal use that meet the requirementsof section 1.61–21(e)(1) of the regula-tions, generally the value of the personaluse may be determined under the vehiclecents-per-mile valuation rule of section1.61–21(e). However, regulations section1.61–21(e)(1)(iii)(A) provides that for apassenger automobile first made avail-able after 1988 to any employee of theemployer for personal use, the value ofthe personal use may not be determinedunder the vehicle cents-per-mile valuationrule for a calendar year if the fair marketvalue of the passenger automobile (de-termined pursuant to regulations section1.61–21(d)(5)(i) through (iv)) on the firstdate the passenger automobile is madeavailable to the employee exceeds a spec-ified dollar limit.

.03 For employer-provided vehiclesavailable to employees for personal use foran entire year, generally the value of thepersonal use may be determined under theautomobile lease valuation rule of section1.61–21(d) of the regulations. Under thisvaluation rule, the value of the personaluse is the Annual Lease Value. Providedthe requirements of regulation section1.61–21(d)(5)(v) are met, an employerwith a fleet of 20 or more automobilesmay use a fleet-average value for purposesof calculating the Annual Lease Values ofthe automobiles in the employer’s fleet.The fleet-average value is the averageof the fair market values of all the auto-mobiles in the fleet. However, section1.61–21(d)(5)(v)(D) of the regulationsprovides that for an automobile first madeavailable after 1988 to an employee of theemployer for personal use, the value of thepersonal use may not be determined underthe fleet-average valuation rule for a cal-endar year if the fair market value of theautomobile (determined pursuant to reg-ulations section 1.61–21(d)(5)(i) through(v)) on the first date the passenger auto-mobile is made available to the employeeexceeds a specified dollar limit.

.04 The maximum passenger automo-bile values for applying the vehicle cents-per-mile and the fleet-average value rulesreflect the automobile price inflation ad-justment of Code section 280F(d)(7). Themethod of calculating this price inflationamount for automobiles other than trucksand vans uses the “new car” component ofthe CPI “automobile component”. Whencalculating this price inflation adjustment

for trucks and vans, the “new trucks” com-ponent of the CPI is used. This resultsin somewhat higher maximum values fortrucks and vans. This change reflects thehigher rate of price inflation that trucks andvans have been subject to since 1988, andis consistent with the change announced inRev. Proc. 2003–75, 2003–2 C.B. 1018,for purposes of calculating depreciationdeductions. See also Rev. Proc. 2011–21,2011–12 I.R.B. 560. For purposes of thisrevenue procedure, the term “trucks andvans” refers to passenger automobiles thatare built on a truck chassis, including mini-vans and sport utility vehicles (SUVs) thatare built on a truck chassis.

SECTION 3. PROCEDURE

.01 Maximum Automobile Value forUsing the Cents-per-mile Valuation Rule.An employer providing a passenger auto-mobile for the first time in calendar year2012 for the personal use of any employeemay determine the value of the personaluse by using the vehicle cents-per-milevaluation rule in section 1.61–21(e) of theregulations if its fair market value on thedate it is first made available does notexceed $15,900 for a passenger automo-bile other than a tuck or van, or $16,700for a truck or van. If the fair marketvalue of the passenger automobile exceedsthis amount, the employer may determinethe value of the personal use under thegeneral valuation rules of regulation sec-tion 1.61–21(b) or under the special valua-tion rules of section 1.61–21(d) (Automo-bile lease valuation) or section 1.61–21(f)(Commuting valuation) if the applicablerequirements are met. See Rev. Proc.2010–10, 2010–3 I.R.B. 300, for guidanceon determining the maximum value of pas-senger automobiles first made availableduring calendar year 2010, and Rev. Proc.2011–11, 2011–4 I.R.B. 329, for guidanceon determining the maximum value of pas-senger automobiles first made availableduring calendar year 2011.

.02 Maximum Automobile Value forUsing the Fleet-Average Valuation Rule.An employer with a fleet of 20 or moreautomobiles providing an automobile forthe first time in calendar year 2012 forthe personal use of any employee for anentire year may determine the value ofthe personal use by using the fleet-aver-age valuation rule in regulations section

January 17, 2012 295 2012–3 I.R.B.

1.61–21(d)(5)(v) to calculate the AnnualLease Values of the automobiles in thefleet. The fleet-average valuation rule maynot be used to determine the Annual LeaseValue of any automobile if its fair marketvalue on the date it is first made availableexceeds $21,100 for a passenger automo-bile other than a truck or van, or $21,900for a truck or van. If all other appli-cable requirements are met, an employerwith a fleet of 20 or more vehicles consist-ing of passenger automobiles other thantrucks or vans as well as trucks and vansmay use the fleet-average valuation ruleas long as none of the vehicles exceedtheir respective maximum allowable val-ues. If the fair market value of any passen-ger automobile in the fleet exceeds theseamounts, the employer may determine thevalue of the personal use under regulationssection 1.61–21(f) (Commuting valuationrule) or the general valuation rules of sec-tion 1.61–21(b) or may determine the An-nual Lease Value of such automobile sepa-rately under the automobile lease valuationrule of section 1.61–21(d)(2) if the applica-ble requirements are met.

SECTION 4. EFFECTIVE DATE

This revenue procedure applies to em-ployer-provided passenger automobilesfirst made available to employees for per-sonal use in calendar year 2012.

SECTION 5. DRAFTINGINFORMATION

The principal author of this revenueprocedure is Don M. Parkinson of theOffice of the Division Counsel/AssociateChief Counsel (Tax Exempt & Govern-ment Entities). For further informationregarding the maximum automobile val-ues for applying the valuation rules ofregulations section 1.61–21(e)(1)(iii)(A)(the vehicle cents-per-mile valuationrule), and section 1.61–21(d)(5)(v)(D)(the fleet average valuation rule), contactDon M. Parkinson at (202) 622–6040 (nota toll-free call).

26 CFR 601.105: Examination of returns and claimsfor refund, credit or abatement; determination ofcorrect tax liability.(Also Part 1, §§ 856; 1.856–3, 1.856–5, and1.860F–4.)

Rev. Proc. 2012–14

SECTION 1. PURPOSE

This revenue procedure sets forth a safeharbor that provides the extent to whichan investment by a real estate investmenttrust (REIT) in a regular or a residual inter-est in certain real estate mortgage invest-ment conduits (REMICs) may be treatedas a real estate asset for purposes of sec-tions 856(c)(4)(A) and 856(c)(5)(B) of theInternal Revenue Code and the extent towhich interest from that investment maybe treated as derived from interest on anobligation secured by a mortgage on realproperty or on an interest in real propertyfor purposes of section 856(c)(3)(B).

SECTION 2. BACKGROUND—HARP

.01 In April 2009, the Federal HousingFinance Agency (FHFA) and the UnitedStates Department of the Treasury intro-duced the Home Affordable RefinancingProgram (HARP) as part of the UnitedStates Government’s Making Home Af-fordable Program. On October 24, 2011,FHFA, with Federal National MortgageAssociation (Fannie Mae) and FederalHome Loan Mortgage Corporation (Fred-die Mac), announced an expansion ofHARP in an effort to serve additional el-igible borrowers who can benefit fromrefinancing their home mortgages. De-tails of the expansion were announced onNovember 15, 2011.

HARP serves borrowers who may nototherwise qualify for refinancing, eitherbecause the value of their homes hasdeclined or because they cannot obtainmortgage insurance. The program is avail-able to borrowers who owe more on theirmortgages than the value of their homes.HARP provides these homeowners withthe ability to refinance their mortgagesinto more affordable and sustainable mort-gages.

.02 It is expected that many mortgagesrefinanced under HARP will be held byREMICs.

SECTION 3. BACKGROUND-REMICS

.01 REMICs are widely used securitiza-tion vehicles for mortgages. REMICs aregoverned by sections 860A through 860G.

.02 For an entity to qualify as a REMIC,all of the interests in the entity must consistof one or more classes of regular interestsand a single class of residual interests, seesection 860D(a), and those interests mustbe issued on the startup day, within themeaning of § 1.860G–2(k) of the IncomeTax Regulations.

.03 In addition to being issued on thestartup day with fixed terms, a regularinterest must (1) unconditionally entitlethe holder to receive a specified principalamount (or other similar amount), and (2)provide that interest payments, if any, at orbefore maturity are based on a fixed rate(or to the extent provided in regulations,at a variable rate). See section 860G(a)(1).

.04 Under section 860D(a)(4), an entityqualifies as a REMIC only if, among otherthings, as of the close of the third monthbeginning after the startup day and at alltimes thereafter, substantially all of itsassets consist of qualified mortgages andpermitted investments. This asset test issatisfied if the entity owns no more thana de minimis amount of other assets. See§ 1.860D–1(b)(3)(i). As a safe harbor,the amount of assets other than qualifiedmortgages and permitted investments isde minimis if the aggregate of the ad-justed bases of those assets is less than onepercent of the aggregate of the adjustedbases of all of the entity’s assets. Section1.860D–1(b)(3)(ii).

.05 A mortgage loan is a qualifiedmortgage only if it is principally securedby an interest in real property. Section860G(a)(3)(A).

.06 In general, for purposes of section860G(a)(3)(A), an obligation is principallysecured by an interest in real property onlyif it satisfies the “80-percent test” set forthin § 1.860G–2(a)(1)(i).

.07 Under the 80-percent test, an obli-gation is principally secured by an inter-est in real property if the fair market valueof the interest in real property securing theobligation—

(1) Was at least equal to 80 percent ofthe adjusted issue price of the obligation atthe time the obligation was originated; or

(2) Is at least equal to 80 percent of theadjusted issue price of the obligation at the

2012–3 I.R.B. 296 January 17, 2012

time the sponsor contributes the obligationto the REMIC.

.08 With limited exceptions, a mort-gage loan is not a qualified mortgageunless it is transferred to the REMIC onthe startup day in exchange for regularor residual interests in the REMIC. Seesection 860G(a)(3)(A)(i).

.09 The legislative history of theREMIC provisions indicates that Congressintended the provisions to apply only toan entity that holds a substantially fixedpool of real estate mortgages and relatedassets and that “has no powers to varythe composition of its mortgage assets.”S. Rep. No. 99–313, 99th Cong., 2d Sess.791–92, 1986–3 (Vol. 3) C.B. 791–92.

SECTION 4. BACKGROUND—REMICREPORTING

.01 Section 1.860F–4(e)(1)(ii)(A) pro-vides that for calendar quarters after 1988,a REMIC must provide to each of its resid-ual interest holders information regarding(among other items) the percentage ofREMIC assets that are real estate assetsdefined in section 856(c)(5)(B),1 com-puted by reference to the average adjustedbasis (as defined in section 1011) of theREMIC assets during the calendar quarter(as described in § 1.860F–4(e)(1)(iii)). Ifthe percentage of REMIC assets repre-sented by real estate assets is at least 95percent, then the REMIC need only spec-ify that the percentage of real estate assetswas at least 95 percent.

.02 Section 1.860F–4(e)(1)(ii)(B) pro-vides that if, for any calendar quarter after1988, less than 95 percent of the assets ofthe REMIC are real estate assets defined insection 856(c)(5)(B), then, for that calen-dar quarter, the REMIC must also provideto any REIT that holds a residual interestthe following information—

(1) The percentage of REMIC as-sets described in section 856(c)(4)(A),computed by reference to the averageadjusted basis of the REMIC assets dur-ing the calendar quarter (as described in§ 1.860F–4(e)(1)(iii)),

(2) The percentage of REMIC grossincome (other than gross income fromprohibited transactions defined in sec-tion 860F(a)(2)) described in section

856(c)(3)(A) through (E), computed as ofthe close of the calendar quarter, and

(3) The percentage of REMIC grossincome (other than gross income fromprohibited transactions defined in sec-tion 860F(a)(2)) described in section856(c)(3)(F) (which refers to income orgain from foreclosure property), computedas of the close of the calendar quarter. Forthis purpose, the term “foreclosure prop-erty” has the meaning specified in section860G(a)(8) (which governs REMICs),rather than the closely related definition of“foreclosure property” in section 856(e)(which otherwise would determine theincome or gain that is described in section856(c)(3)(F)).

.03 Notice 2012–5, this bulletin,provides that for purposes of an el-igible REMIC’s reporting obliga-tion to residual interest holders under§ 1.860F–4(e)(1)(ii), if the percentage ofREMIC assets represented by real estateassets is less than 95 percent but at least80 percent, then the REMIC need onlyspecify on Schedule Q (Form 1066), Quar-terly Notice to Residual Interest Holderof REMIC Taxable Income or Net LossAllocation, that the percentage for thatcategory was at least 80 percent.

SECTION 5. BACKGROUND—REITS

.01 Many REITs invest in real estateloans that are secured by real property.REITs may also invest in REMIC reg-ular or residual interests (see section856(c)(5)(E)).

.02 Section 856(a) provides that an en-tity shall not be considered a REIT for anytaxable year unless certain requirementsare satisfied. Under section 856(c)(4)(A),at the close of each quarter of its taxableyear, at least 75 percent of the value of aREIT’s total assets must be represented byreal estate assets, cash and cash items (in-cluding receivables), and Government se-curities.

.03 Section 856(c)(5)(B) provides thatthe term “real estate assets” means realproperty (including interests in real prop-erty and interests in mortgages on realproperty) and shares (or transferable cer-tificates of beneficial interest) in otherREITs that meet the requirements of sec-tions 856 through 859. Section 1.856–3(d)

provides that the term “real property”means land or improvements thereon, suchas buildings and that the term “real prop-erty” includes interests in real property.Section 1.856–3(d) further provides thatlocal law definitions are not controlling forpurposes of determining the meaning ofthe term “real property” as used in section856 and the regulations thereunder.

.04 Section 856(c)(3)(B) provides thatat least 75 percent of a REIT’s gross in-come must be derived from certain items,including interest on obligations securedby mortgages on real property or on inter-ests in real property.

.05 Section 1.856–5(c)(1) provides thatif a mortgage covers both real property andother property, an apportionment of the in-terest income must be made for purposesof the 75-percent requirement of section856(c)(3). Section 1.856–5(c)(1)(i) pro-vides that if the loan value of the real prop-erty is equal to or exceeds the amount ofthe loan, the entire amount of interest in-come shall be apportioned to the real prop-erty. Section 1.856–5(c)(2) provides thatthe loan value of the real property is the fairmarket value of the property, determinedon the date the commitment by the trust topurchase the loan or to make the loan be-comes binding on the trust.

.06 Section 856(c)(5)(E) provides thatfor purposes of Part II of subchapter M,a regular or residual interest in a REMICshall be treated as a real estate asset, andany amount includible in gross incomewith respect to such an interest shall betreated as interest on an obligation securedby a mortgage on real property, exceptthat a REIT shall be treated as holding andreceiving directly its proportionate shareof the assets and income of a REMIC ifless than 95 percent of the assets of suchREMIC are real estate assets (determinedas if the REIT held such assets). For pur-poses of determining whether any interestin a REMIC qualifies under the precedingsentence, any interest held by such REMICin another REMIC shall be treated as areal estate asset under principles similar tothe principles of the preceding sentence,except that, if such REMICs are part ofa tiered structure, they shall be treatedas one REMIC for purposes of section856(c)(5)(E).

1 Both §§ 1.860F–4(e)(1)(ii)(A) and § 1.860F–4(e)(1)(ii)(B) refer to former section 856(c)(6)(B), and § 1.860F–4(e)(1)(ii)(B)(1) refers to former section 856(c)(5)(A). Section 1255 of theTaxpayer Relief Act of 1997 (P.L. 105–34) redesignated former sections 856(c)(6)(B) and 856(c)(5)(A) as current sections 856(c)(5)(B) and 856(c)(4)(A), respectively.

January 17, 2012 297 2012–3 I.R.B.

.07 The REMIC provisions do notrequire REMICs to provide holders ofregular interests with information regard-ing the percentage of REMIC assets thatare real estate assets for purposes of PartII of subchapter M. Furthermore, if thepercentage of an eligible REMIC’s assetsthat are real estate assets is less than 95percent but at least 80 percent, then theREMIC need only inform a REIT holdinga residual interest in that REMIC that thepercentage of assets described in section856(c)(5)(B) was at least 80 percent. SeeNotice 2012–5, this bulletin.

.08 To qualify as an “eligible REMIC”under Notice 2012–5, the REMIC musthave a guarantee from Fannie Mae or Fred-die Mac that will supplement amounts re-ceived by the REMIC as required to per-mit the payment of principal and interest,as applicable, on both the regular inter-ests and residual interests issued by theREMIC; and all of the qualified mortgages(including mortgage pass-thru certificates)that are held by the REMIC must be se-cured by interests in single-family (one-to-four unit) dwellings.

.09 Although eligible REMICs are notrequired to provide more than limited in-formation to REITs holding residual inter-ests in those REMICs regarding the per-centage of the REMICs’ assets describedin section 856(c)(5)(B), it is important forthose REITs to know—

(1) The extent to which both regularand residual interests may be treated as

real estate assets for purposes of sections856(c)(4)(A) and 856(c)(5)(B); and

(2) The extent to which gross in-come with respect to those investmentsmay be treated for purposes of section856(c)(3)(B) as derived from interest onobligations secured by a mortgage on realproperty or on an interest in real property.

SECTION 6. SCOPE

.01 Section 7 of this revenue procedureapplies to a regular interest that is held bya REIT in an eligible REMIC as defined inNotice 2012–5.

.02 Section 7 of this revenue procedureapplies to a residual interest that is held bya REIT in an eligible REMIC as defined inNotice 2012–5, if, in accordance with No-tice 2012–5, the REMIC informs the REITholding the residual interest in that REMICthat the percentage of the REMIC’s assetsdescribed in section 856(c)(5)(B) was atleast 80 percent.

SECTION 7. APPLICATION

If a REIT holds a regular or a residualinterest in an eligible REMIC that meetsthe requirements of either section 6.01 orsection 6.02 of this revenue procedure,then—

.01 The REIT may treat 80 percent ofthe value of the regular or residual inter-est as a real estate asset. If the REIT hasinformation establishing that, as a result

of holding the interest, its proportion-ate share of the eligible REMIC’s assetsunder section 856(c)(5)(E) produces ahigher percentage for purposes of section856(c)(4)(A), then the REIT may use thathigher percentage.

.02 Any amount includible by the REITin gross income with respect to the reg-ular or residual interest may be treatedas 80 percent derived from interest on anobligation secured by a mortgage on realproperty within the meaning of section856(c)(3)(B). If the REIT has informationestablishing that, as a result of holdingthe interest, its proportionate share of theeligible REMIC’s income under section856(c)(5)(E) produces a higher percentagefor purposes of section 856(c)(3), then theREIT may use that higher percentage.

SECTION 8. EFFECTIVE DATE

This revenue procedure is effective forregular or residual interests in an eligi-ble REMIC that has a startup date afterNovember 30, 2011.


The principal author of this revenueprocedure is David B. Silber of the Officeof Associate Chief Counsel (FinancialInstitutions and Products). For furtherinformation, contact Mr. Silber at (202)622–3930 (not a toll-free call).

2012–3 I.R.B. 298 January 17, 2012

Definition of TermsRevenue rulings and revenue procedures(hereinafter referred to as “rulings”) thathave an effect on previous rulings use thefollowing defined terms to describe the ef-fect:

Amplified describes a situation whereno change is being made in a prior pub-lished position, but the prior position is be-ing extended to apply to a variation of thefact situation set forth therein. Thus, ifan earlier ruling held that a principle ap-plied to A, and the new ruling holds that thesame principle also applies to B, the earlierruling is amplified. (Compare with modi-fied, below).

Clarified is used in those instanceswhere the language in a prior ruling is be-ing made clear because the language hascaused, or may cause, some confusion.It is not used where a position in a priorruling is being changed.

Distinguished describes a situationwhere a ruling mentions a previously pub-lished ruling and points out an essentialdifference between them.

Modified is used where the substanceof a previously published position is beingchanged. Thus, if a prior ruling held that aprinciple applied to A but not to B, and thenew ruling holds that it applies to both A

and B, the prior ruling is modified becauseit corrects a published position. (Comparewith amplified and clarified, above).

Obsoleted describes a previously pub-lished ruling that is not considered deter-minative with respect to future transac-tions. This term is most commonly used ina ruling that lists previously published rul-ings that are obsoleted because of changesin laws or regulations. A ruling may alsobe obsoleted because the substance hasbeen included in regulations subsequentlyadopted.

Revoked describes situations where theposition in the previously published rulingis not correct and the correct position isbeing stated in a new ruling.

Superseded describes a situation wherethe new ruling does nothing more than re-state the substance and situation of a previ-ously published ruling (or rulings). Thus,the term is used to republish under the1986 Code and regulations the same po-sition published under the 1939 Code andregulations. The term is also used whenit is desired to republish in a single rul-ing a series of situations, names, etc., thatwere previously published over a period oftime in separate rulings. If the new rul-ing does more than restate the substance

of a prior ruling, a combination of termsis used. For example, modified and su-perseded describes a situation where thesubstance of a previously published rulingis being changed in part and is continuedwithout change in part and it is desired torestate the valid portion of the previouslypublished ruling in a new ruling that is selfcontained. In this case, the previously pub-lished ruling is first modified and then, asmodified, is superseded.

Supplemented is used in situations inwhich a list, such as a list of the names ofcountries, is published in a ruling and thatlist is expanded by adding further names insubsequent rulings. After the original rul-ing has been supplemented several times, anew ruling may be published that includesthe list in the original ruling and the ad-ditions, and supersedes all prior rulings inthe series.

Suspended is used in rare situations toshow that the previous published rulingswill not be applied pending some futureaction such as the issuance of new oramended regulations, the outcome of casesin litigation, or the outcome of a Servicestudy.

AbbreviationsThe following abbreviations in current useand formerly used will appear in materialpublished 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.

January 17, 2012 i 2012–3 I.R.B.

Numerical Finding List1

Bulletins 2012–1 through 2012–3

Announcements:

2012-1, 2012-1 I.R.B. 249

2012-2, 2012-2 I.R.B. 285

Notices:

2012-1, 2012-2 I.R.B. 260

2012-3, 2012-3 I.R.B. 289

2012-4, 2012-3 I.R.B. 290

2012-5, 2012-3 I.R.B. 291

2012-6, 2012-3 I.R.B. 293

Proposed Regulations:

REG-149625-10, 2012-2 I.R.B. 279

Revenue Procedures:

2012-1, 2012-1 I.R.B. 1

2012-2, 2012-1 I.R.B. 92

2012-3, 2012-1 I.R.B. 113

2012-4, 2012-1 I.R.B. 125

2012-5, 2012-1 I.R.B. 169

2012-6, 2012-1 I.R.B. 197

2012-7, 2012-1 I.R.B. 232

2012-8, 2012-1 I.R.B. 235

2012-9, 2012-2 I.R.B. 261

2012-10, 2012-2 I.R.B. 273

2012-12, 2012-2 I.R.B. 275

2012-13, 2012-3 I.R.B. 295

2012-14, 2012-3 I.R.B. 296

Revenue Rulings:

2012-1, 2012-2 I.R.B. 255

2012-2, 2012-3 I.R.B. 286

Treasury Decisions:

9559, 2012-2 I.R.B. 252

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011–27 through 2011–52 is in Internal Revenue Bulletin2011–52, dated December 27, 2011.

2012–3 I.R.B. ii January 17, 2012

Finding List of Current Actions onPreviously Published Items1

Bulletins 2012–1 through 2012–3

Notices:

2010-88

As modified by Ann. 2011-40, is superseded by

Notice 2012-1, 2012-2 I.R.B. 260

Revenue Procedures:

2011-1

Superseded by

Rev. Proc. 2012-1, 2012-1 I.R.B. 1

2011-2

Superseded by

Rev. Proc. 2012-2, 2012-1 I.R.B. 92

2011-3

Superseded by

Rev. Proc. 2012-3, 2012-1 I.R.B. 113

2011-4

Superseded by

Rev. Proc. 2012-4, 2012-1 I.R.B. 125

2011-5

Superseded by

Rev. Proc. 2012-5, 2012-1 I.R.B. 169

2011-6

Superseded by

Rev. Proc. 2012-6, 2012-1 I.R.B. 197

2011-7

Superseded by

Rev. Proc. 2012-7, 2012-1 I.R.B. 232

2011-8

Superseded by

Rev. Proc. 2012-8, 2012-1 I.R.B. 235

2011-9

Superseded by

Rev. Proc. 2012-9, 2012-2 I.R.B. 261

2011-10

Superseded by

Rev. Proc. 2012-10, 2012-2 I.R.B. 273

Revenue Rulings:

2008-40

Modified by

Notice 2012-6, 2012-3 I.R.B. 293

2011-1

Modified by

Notice 2012-6, 2012-3 I.R.B. 293

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

January 17, 2012 iii 2012–3 I.R.B.

2012–3 I.R.B. January 17, 2012

January 17, 2012 2012–3 I.R.B.

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