Notice 2011-65

Bulletin No. 2011-34
August 22, 2011

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

INCOME TAX

EXEMPT ORGANIZATIONS

Notice 2011–63, page 172.

Announcement 2011–45, page 178.

This notice provides supplemental guidance on the determination of when state and local bonds (as defined in section 103(c)
of the Code) are considered "issued" for purposes of volume
cap limitations on private activity bonds under section 146 and
other bond volume caps under Federal law. Notice 2010-81
amended and supplemented.

The IRS has revoked its determination that Bentley Foundation
of Sun City, CA; Dance Academy Stars of Marble Falls, TX; Helping Hands Outreach of Victorville, CA; North American Housing
Counseling Community Development Corp., Inc., of Houston,
TX; Prevailer Community Development Corporation of Lufkin,
TX; Silverstein Family Foundation of Watertown, NY; The Sunnyside Foundation, Inc., of Long Island City, NY; and Tradewinds
Foundation, Inc., of New Hartford, NY, qualify as organizations
described in sections 501(c)(3) and 170(c)(2) of the Code.

Notice 2011–65, page 173.
This notice provides for the suspension of certain requirements
under section 42 of the Code for low-income housing credit
projects in order to provide emergency housing relief needed
as a result of the devastation caused by severe storms, tornadoes, straight-line winds, and flooding in Alabama beginning on
April 15, 2011.

EMPLOYEE PLANS
Notice 2011–67, page 174.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted
average interest rate for plan years beginning in August 2011;
the 24-month average segment rates; the funding transitional
segment rates applicable for August 2011; and the minimum
present value transitional rates for July 2011.

Announcement of Declaratory Judgment Proceedings Under Section 7428 begins on page 178.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-

force the law with integrity and fairness to all.

Introduction
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Part III.—Administrative, Procedural, and Miscellaneous.
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For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

August 22, 2011

2011–34 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
State and Local Bonds:
Volume Cap and Timing of
Issuing Bonds
Notice 2011–63
SECTION 1. PURPOSE
This notice provides supplemental
guidance on the determination of when
State and local bonds (as defined in
§ 103(c) of the Internal Revenue Code (the
“Code”)) are considered “issued” for purposes of volume cap limitations on private
activity bonds under § 146 and other bond
volume caps and limitations under Federal
law. This notice amends and supplements
Notice 2010–81.
SECTION 2. BACKGROUND
In Notice 2010–81, 2010–50 I.R.B. 825
(December 13, 2010), the Treasury Department and the IRS provided guidance
regarding when State and local bonds (as
defined in § 103(c)) are considered issued
for purposes of various deadlines on issuing bonds. Under the general rule set forth
in Notice 2010–81, a bond is treated as issued on the “issue date” of the “bond” under § 1.150–1(b) of the Income Tax Regulations (as contrasted with the “issue date”
of the “issue” that includes the bond). This
analysis particularly affects certain financing structures, such as draw-down loans
and commercial paper, in which bonds of
the same issue are issued at different times.
Notice 2010–81 applies to various types
of deadlines on issuing bonds, including,
among others, volume caps on private activity bonds under § 146 and other bond
volume caps under Federal law such as
national limitations for the amount and
timing of bonds issued as Qualified Zone
Academy Bonds or Qualified Gulf Opportunity Zone Bonds.
In general, § 146 imposes annual State
volume caps on private activity bonds and
allows issuers to “carry forward” unused
volume cap for use during a three-year carryforward period after the calendar year in
which the original bond volume cap authorization arose. Other volume caps on
bonds issued by State or local governments
may apply in a similar manner, subject

2011–34 I.R.B.

to different carryforward periods based on
statutory deadlines, depending on the particular program.
The Treasury Department and the IRS
have received comments that prior to Notice 2010–81, various States and issuers
treated a bond as issued on other than its
issue date as provided in Notice 2010–81,
creating concerns for the treatment of
draw-down loans and commercial paper
for purposes of allocation, use, and administration of volume caps on private activity
bonds under § 146.
SECTION 3. SCOPE AND
APPLICATION
01. Bond Issuance for Purposes of Volume Cap Allocations. Solely for purposes
of the private activity bond volume cap under § 146 and other bond volume caps on
State and local bonds under Federal law,
an issuer may treat a bond as issued either:
(1) on the issue date of the bond under the
general rule in Notice 2010–81 or (2) in
the alternative, on the issue date of the issue provided that the issuer meets the additional requirements of this § 3.01. An
issuer that treats the bonds as issued on
the issue date of the issue may not retroactively alter such treatment.
The issuer meets the additional requirements of this § 3.01 if the issuer issues
all of the bonds of the issue, determined
for this purpose by treating each bond of
the issue as issued on the issue date of
that bond under the general rule in Notice
2010–81, by no later than the earlier of: (i)
the statutory deadline for issuing the bonds
or (ii) the end of the maximum carryforward period for unused volume cap under
the applicable statute, treating all of the unused volume cap for the issue as volume
cap arising in the year in which the issue
date of the issue occurs.
02. Example. In Year 1, an issuer receives a $1
million volume cap allocation from state volume cap
that arose in Year 1 under § 146 for a draw-down bond
issue of exempt facility bonds under § 142 and issues
$50,000 in Year 1. Thus the issue date of the issue
under § 1.150–1(c)(4)(i) occurs in Year 1. In Years 2
through 4, the issuer issues the $950,000 in remaining bonds of the issue. Under the general rule in Notice 2010–81, $50,000 of the bonds would be treated
as issued in Year 1 on the issue date of those bonds,
$50,000 of volume cap would be treated as used in
Year 1, the remaining $950,000 of the bonds would be

172

treated as issued upon funding of the draws in Years
2 through 4, respectively, and the issuer would use
carryforward volume cap (or obtain additional volume cap) to cover those remaining bonds. Under the
alternative option, for volume cap purposes, if the issuer in Year 1 treated all of the $1 million in bonds as
issued on the issue date of the issue, the entire $1 million of bonds of the issue is treated as issued on the
issue date of the issue and the entire $1 million of volume cap is treated as used in Year 1. If the $1 million
in volume cap in Year 1 were a carryforward volume
cap, the issuer would have three years from Year 1 to
use the carryforward because the alternative option
in § 3.01 would treat the amount of the carryforward
as volume cap arising in Year 1 (the year in which
the issue date of the issue occurs). If the bonds were
small issue bonds under § 144(a), the alternative option would not be available because under § 146 there
is no carryforward period for unused volume cap for
small issue bonds.

.03. Information Reporting. Section
1.149(e)–1(e)(2)(ii) of the Income Tax
Regulations provides guidance on applicable information reporting requirements
under § 149(e) for State and local bonds
issued as draw-down bonds and commercial paper. For such information reporting
purposes, in the case of issues issued after
August 3, 2011, issuers who apply the
alternative option under § 3.01 of this
notice should write or type “Filed in Accordance with Notice 2011–63 State and
Local Bonds: Volume Cap and Timing of
Issuing Bonds” at the top of the applicable
information reporting return. Pursuant to
§1.149(e)–1(e)(2)(ii), amended information reporting returns are not required for
this purpose for bonds treated as issued
under this notice before August 3, 2011.
SECTION 4. EFFECT ON OTHER
DOCUMENTS
This notice amends and supplements
Notice 2010–81.
SECTION 5. DRAFTING
INFORMATION
The principal authors of this notice
are Vicky Tsilas and Timothy L. Jones
of the Office of Associate Chief Counsel
(Financial Institutions & Products). For
further information regarding this notice,
contact Vicky Tsilas at (202) 622–3980
(not a toll-free call).

August 22, 2011

Alabama Low-Income Housing
Credit Disaster Relief
Notice 2011–65
The Internal Revenue Service is suspending certain requirements under § 42 of
the Internal Revenue Code for low-income
housing credit projects to provide emergency housing relief needed as a result of
the devastation caused by severe storms,
tornadoes, straight-line winds, and flooding in Alabama beginning on April 15,
2011. This relief is being granted pursuant
to the Service’s authority under § 42(n) and
§ 1.42–13(a) of the Income Tax Regulations.
BACKGROUND
On April 28, 2011, the President declared a major disaster for the State of
Alabama. This declaration was made under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act, 42 U.S.C.
5121 et seq. Subsequently, the Federal
Emergency Management Agency (FEMA)
designated jurisdictions for Individual
Assistance. The State of Alabama has
requested that the Service allow owners
of low-income housing credit projects to
provide temporary housing in vacant units
to individuals who resided in jurisdictions
designated for Individual Assistance in
Alabama and who have been displaced
because their residences were destroyed
or damaged as a result of the devastation
caused by the severe storms, tornadoes,
straight-line winds, and flooding. Based
upon this request and because of the
widespread damage to housing caused by
the severe storms, tornadoes, straight-line
winds, and flooding, the Service has
determined that the Alabama Housing
Finance Authority (Authority) may
provide approval to project owners to
provide temporary emergency housing for
displaced individuals in accordance with
this notice.
I. SUSPENSION OF INCOME
LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend certain
income limitation requirements under § 42
for certain qualified low-income projects.
The suspension will apply to low-income

August 22, 2011

housing projects approved by the Authority, in which vacant units are rented to displaced individuals. The Authority will determine the appropriate period of temporary housing for each project, not to extend
beyond August 31, 2012 (temporary housing period).
II. STATUS OF UNITS
A. Units in the first year of the credit
period
A displaced individual temporarily
occupying a unit during the first year of
the credit period under § 42(f)(1) will be
deemed a qualified low-income tenant
for purposes of determining the project’s
qualified basis under § 42(c)(1), and
for meeting the project’s 20–50 test or
40–60 test as elected by the project owner
under § 42(g)(1). After the end of the
temporary housing period established
by the Authority (not to extend beyond
August 31, 2012), a displaced individual
will no longer be deemed a qualified
low-income tenant.
B. Vacant units after the first year of the
credit period
During the temporary housing period
established by the Authority, the status of a
vacant unit (that is, market-rate or low-income for purposes of § 42 or never previously occupied) after the first year of the
credit period that becomes temporarily occupied by a displaced individual remains
the same as the unit’s status before the
displaced individual moves in. Displaced
individuals temporarily occupying vacant
units will not be treated as low-income
tenants under § 42(i)(3)(A)(ii). However,
even if it houses a displaced individual, a
low-income or market rate unit that was
vacant before the effective date of this notice will continue to be treated as a vacant low-income or market rate unit. Similarly, a unit that was never previously occupied before the effective date of this notice will continue to be treated as a unit
that has never been previously occupied
even if it houses a displaced individual.
Thus, the fact that a vacant unit becomes
occupied by a displaced individual will
not affect the building’s applicable fraction under § 42(c)(1)(B) for purposes of
determining the building’s qualified basis,
nor will it affect the 20–50 test or 40–60

173

test of § 42(g)(1). If the income of occupants in low-income units exceeds 140
percent of the applicable income limitation, the temporary occupancy of a unit by
a displaced individual will not cause application of the available unit rule under
§ 42(g)(2)(D)(ii). In addition, the project
owner is not required during the temporary
housing period to make attempts to rent
to low-income individuals the low-income
units that house displaced individuals.
III. SUSPENSION OF
NON-TRANSIENT REQUIREMENTS
The non-transient use requirement of
§ 42(i)(3)(B)(i) shall not apply to any
unit providing temporary housing to a
displaced individual during the temporary
housing period determined by the Authority in accordance with section I of this
notice.
IV. OTHER REQUIREMENTS
All other rules and requirements of
§ 42 will continue to apply during the
temporary housing period established
by the Authority. After the end of the
temporary housing period, the applicable income limitations contained in
§ 42(g)(1), the available unit rule under § 42(g)(2)(D)(ii), the nontransient
requirement of § 42(i)(3)(B)(i), and the
requirement to make reasonable attempts
to rent vacant units to low-income individuals shall resume. If a project owner offers
to rent a unit to a displaced individual after
the end of the temporary housing period,
the displaced individual must be certified
under the requirements of § 42(i)(3)(A)(ii)
and § 1.42–5(b) and (c) to be a qualified
low-income tenant. To qualify for the relief in this notice, the project owner must
additionally meet all of the following requirements:
(1) Major Disaster Area
The displaced individual must have
resided in an Alabama jurisdiction designated for Individual Assistance by FEMA
as a result of severe storms, tornadoes,
straight-line winds, and flooding in Alabama beginning on April 15, 2011.

2011–34 I.R.B.

(2) Approval of the Alabama Housing
Finance Authority
The project owner must obtain approval
from the Authority for the relief described
in this notice. The Authority will determine the appropriate period of temporary
housing for each project, not to extend beyond August 31, 2012.

declaration as a result of the severe storms,
tornadoes, straight-line winds, and flooding in Alabama beginning on April 15,
2011).
PAPERWORK REDUCTION ACT

Rents for the low-income units that
house displaced individuals must not exceed the existing rent-restricted rates for
the low-income units established under
§ 42(g)(2).

The collection of information contained
in this notice has been reviewed and approved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2216.
An Agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this
notice is in the section titled “OTHER
REQUIREMENTS” under “(3) Certifications and Recordkeeping.” This information is required to enable the Service to verify whether individuals are
displaced as a result of the devastation caused by severe storms, tornadoes,
straight-line winds, and flooding in Alabama beginning on April 15, 2011,
and thus warrant temporary housing in
vacant low-income housing units. The
collection of information is required to
obtain a benefit. The likely respondents
are individuals and businesses.
The estimated total annual recordkeeping burden is 150 hours.
The estimated annual burden per
recordkeeper is approximately 15 minutes.
The estimated number of recordkeepers is
600.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.

(5) Protection of Existing Tenants

DRAFTING INFORMATION

Existing tenants in occupied low-income units cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.

The principal author of this notice is
David Selig of the Office of Associate
Chief Counsel (Passthroughs & Special
Industries).
For further information
regarding this notice, contact Mr. Selig at
(202) 622–3040 (not a toll-free call).

(3) Certifications and Recordkeeping
To comply with the requirements of
§ 1.42–5, project owners are required to
maintain and certify certain information
concerning each displaced individual temporarily housed in the project, specifically
the following: name, address of damaged
residence, social security number, and a
statement signed under penalties of perjury
by the displaced individual that, because of
damage to the individual’s residence in an
Alabama jurisdiction designated for Individual Assistance by FEMA as a result of
the severe storms, tornadoes, straight-line
winds, and flooding in Alabama beginning
on April 15, 2011, the individual requires
temporary housing. The owner must notify the Authority that vacant units are
available for rent to displaced individuals.
The owner must also certify the date the
displaced individual began temporary occupancy and the date the project will discontinue providing temporary housing as
established by the Authority. The certifications and recordkeeping for displaced
individuals must be maintained as part of
the annual compliance monitoring process
with the Authority.
(4) Rent Restrictions

EFFECTIVE DATE
This notice is effective April 28, 2011
(the date of the President’s major disaster

2011–34 I.R.B.

174

Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2011–67
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in effect for plan years beginning before 2008.
It also provides guidance on the corporate bond monthly yield curve (and
the corresponding spot segment rates),
and the 24-month average segment rates
under § 430(h)(2). In addition, this notice provides guidance as to the interest
rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections
412(b)(5)(B)(ii)
and
412(l)(7)(C)(i), as amended by the Pension Funding Equity Act of 2004 and by
the Pension Protection Act of 2006 (PPA),
provide that the interest rates used to calculate current liability and to determine
the required contribution under § 412(l)
for plan years beginning in 2004 through
2007 must be within a permissible range
based on the weighted average of the rates
of interest on amounts invested conservatively in long term investment grade
corporate bonds during the 4-year period
ending on the last day before the beginning
of the plan year.
Notice 2004–34, 2004–1 C.B. 848, provides guidelines for determining the corporate bond weighted average interest rate
and the resulting permissible range of interest rates used to calculate current liability. That notice establishes that the corporate bond weighted average is based on the
monthly composite corporate bond rate derived from designated corporate bond indices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to

August 22, 2011

apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
July 2011 is 5.36 percent. Pursuant to Notice 2004–34, the Service has determined
For Plan Years
Beginning in

this rate as the average of the monthly
yields for the included corporate bond indices for that month.
The following corporate bond weighted
average interest rate was determined for

Month

Year

Corporate
Bond Weighted
Average

August

2011

5.94

YIELD CURVE AND SEGMENT
RATES
Generally for plan years beginning
after 2007 (except for delayed effective
dates for certain plans under sections 104,
105, and 106 of PPA), § 430 of the Code
specifies the minimum funding requirements that apply to single employer plans
pursuant to § 412. Section 430(h)(2) specifies the interest rates that must be used
to determine a plan’s target normal cost
and funding target. Under this provision,
present value is generally determined using three 24-month average interest rates

(“segment rates”), each of which applies
to cash flows during specified periods.
However, an election may be made under
§ 430(h)(2)(D)(ii) to use the monthly yield
curve in place of the segment rates. Section 430(h)(2)G) set forth a transitional
rule applicable to plan years beginning in
2008 and 2009 under which the segment
rates were blended with the corporate bond
weighted average described above, including an election under § 430(h)(2)(G)(iv)
for an employer to use the segment rates
without the transitional rule.
Notice 2007–81, 2007–44 I.R.B. 899,
provides guidelines for determining the

plan years beginning in the month shown
below.

Permissible Range
90%
5.35

to

5.94

monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the target normal cost and the funding target.
Pursuant to Notice 2007–81, the monthly
corporate bond yield curve derived from
July 2011 data is in Table I at the end of
this notice. The spot first, second, and
third segment rates for the month of July
2011 are, respectively, 1.72, 4.97, and
6.28. The three 24-month average corporate bond segment rates applicable for
August 2011 are as follows:

First
Segment

Second
Segment

Third
Segment

2.11

5.31

6.32

The transitional rule of § 430(h)(2)(G)
does not apply to plan years beginning after December 31, 2009. Therefore, for a
plan year beginning after 2009 with a lookback month to August 2011, the funding
segment rates are the three 24-month average corporate bond segment rates applicable for August 2011, listed above without
blending for any transitional period.
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the applicable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury securities for the month before the date

August 22, 2011

of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applicable interest rate for a month is the annual
rate of interest on 30-year Treasury securities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Treasury securities for July 2011 is 4.27 percent. The Service has determined this rate
as the average of the daily determinations
of yield on the 30-year Treasury bond maturing in May 2041.
Generally for plan years beginning
after 2007, § 431 specifies the minimum funding requirements that apply to
multiemployer plans pursuant to § 412.

175

100%

Section 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation
described in section 431(c)(6)(A), based
on the plan’s current liability. Section
431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability
for this purpose must be no more than 5
percent above and no more than 10 percent
below the weighted average of the rates of
interest on 30-year Treasury securities during the four-year period ending on the last
day before the beginning of the plan year.
Notice 88–73, 1988–2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The following rates
were determined for plan years beginning
in the month shown below.

2011–34 I.R.B.

Month

Year

30-Year
Treasury
Weighted
Average

August

2011

4.26

For Plan Years
Beginning in

MINIMUM PRESENT VALUE
SEGMENT RATES
Generally for plan years beginning after December 31, 2007, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a

Permissible Range

24-month average. For plan years beginning in 2008 through 2011, the applicable interest rates are the monthly spot segment rates blended with the applicable rate
under § 417(e)(3)(A)(ii)(II) as in effect
for plan years beginning in 2007. Notice
2007–81 provides guidelines for determin-

90%
3.83

to

105%
4.47

ing the minimum present value segment
rates. Pursuant to that notice, the minimum present value transitional segment
rates determined for July 2011, taking into
account the July 2011 30-year Treasury
rate of 4.27 stated above, are as follows:

For Plan Years
Beginning in

First
Segment

Second
Segment

Third
Segment

2010
2011

2.74
2.23

4.69
4.83

5.48
5.88

DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,

2011–34 I.R.B.

Tax Exempt and Government Entities
Division. Mr. Montanaro may be e-mailed
at RetirementPlanQuestions@irs.gov.

176

August 22, 2011

Table I
Monthly Yield Curve for July 2011
Derived from July 2011 Data
Maturity

Yield

Maturity

Yield

Maturity

Yield

Maturity

Yield

Maturity

Yield

0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
14.5
15.0
15.5
16.0
16.5
17.0
17.5
18.0
18.5
19.0
19.5
20.0

0.54
0.74
0.96
1.22
1.51
1.83
2.15
2.46
2.75
3.02
3.26
3.49
3.70
3.88
4.05
4.21
4.35
4.49
4.61
4.72
4.82
4.92
5.01
5.09
5.16
5.23
5.29
5.35
5.41
5.46
5.50
5.55
5.59
5.63
5.66
5.69
5.73
5.76
5.78
5.81

20.5
21.0
21.5
22.0
22.5
23.0
23.5
24.0
24.5
25.0
25.5
26.0
26.5
27.0
27.5
28.0
28.5
29.0
29.5
30.0
30.5
31.0
31.5
32.0
32.5
33.0
33.5
34.0
34.5
35.0
35.5
36.0
36.5
37.0
37.5
38.0
38.5
39.0
39.5
40.0

5.84
5.86
5.88
5.90
5.93
5.95
5.96
5.98
6.00
6.02
6.03
6.05
6.06
6.08
6.09
6.11
6.12
6.13
6.14
6.16
6.17
6.18
6.19
6.20
6.21
6.22
6.23
6.24
6.25
6.26
6.27
6.27
6.28
6.29
6.30
6.30
6.31
6.32
6.33
6.33

40.5
41.0
41.5
42.0
42.5
43.0
43.5
44.0
44.5
45.0
45.5
46.0
46.5
47.0
47.5
48.0
48.5
49.0
49.5
50.0
50.5
51.0
51.5
52.0
52.5
53.0
53.5
54.0
54.5
55.0
55.5
56.0
56.5
57.0
57.5
58.0
58.5
59.0
59.5
60.0

6.34
6.34
6.35
6.36
6.36
6.37
6.37
6.38
6.38
6.39
6.40
6.40
6.41
6.41
6.41
6.42
6.42
6.43
6.43
6.44
6.44
6.45
6.45
6.45
6.46
6.46
6.46
6.47
6.47
6.48
6.48
6.48
6.49
6.49
6.49
6.50
6.50
6.50
6.50
6.51

60.5
61.0
61.5
62.0
62.5
63.0
63.5
64.0
64.5
65.0
65.5
66.0
66.5
67.0
67.5
68.0
68.5
69.0
69.5
70.0
70.5
71.0
71.5
72.0
72.5
73.0
73.5
74.0
74.5
75.0
75.5
76.0
76.5
77.0
77.5
78.0
78.5
79.0
79.5
80.0

6.51
6.51
6.52
6.52
6.52
6.52
6.53
6.53
6.53
6.53
6.54
6.54
6.54
6.54
6.55
6.55
6.55
6.55
6.56
6.56
6.56
6.56
6.56
6.57
6.57
6.57
6.57
6.57
6.58
6.58
6.58
6.58
6.58
6.58
6.59
6.59
6.59
6.59
6.59
6.59

80.5
81.0
81.5
82.0
82.5
83.0
83.5
84.0
84.5
85.0
85.5
86.0
86.5
87.0
87.5
88.0
88.5
89.0
89.5
90.0
90.5
91.0
91.5
92.0
92.5
93.0
93.5
94.0
94.5
95.0
95.5
96.0
96.5
97.0
97.5
98.0
98.5
99.0
99.5
100.0

6.60
6.60
6.60
6.60
6.60
6.60
6.61
6.61
6.61
6.61
6.61
6.61
6.61
6.62
6.62
6.62
6.62
6.62
6.62
6.62
6.63
6.63
6.63
6.63
6.63
6.63
6.63
6.63
6.64
6.64
6.64
6.64
6.64
6.64
6.64
6.64
6.64
6.65
6.65
6.65

August 22, 2011

177

2011–34 I.R.B.

Part IV. Items of General Interest
Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code
Announcement 2011–45
The Internal Revenue Service has revoked its determination that the organizations listed below qualify as organizations described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an organization ceases to qualify under section
170(c)(2) if the organization has not timely
filed a suit for declaratory judgment under
section 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.
If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on August 22, 2011
and would end on the date the court first
determines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For
individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor.

2011–34 I.R.B.

This benefit is not extended to any individual, in whole or in part, for the acts or
omissions of the organization that were the
basis for revocation.
Bentley Foundation
Sun City, CA
Dance Academy Stars
Marble Falls, TX
Helping Hands Outreach
Victorville, CA
North American Housing Counseling
Community Development Corp., Inc.
Houston, TX
Prevailer Community Development
Corporation
Lufkin, TX
Silverstein Family Foundation
Watertown, NY
The Sunnyside Foundation, Inc.
Long Island City, NY
Tradewinds Foundation, Inc.
New Hartford, NY

Notice of Disposition of
Declaratory Judgment
Proceedings Under Section
7428
Announcement 2011–46
This announcement serves notice to
donors that on September 9, 2010, the
United States Tax Court entered a stipulated decision that the organization listed
below is a private foundation described
in I.R.C. § 509(a). Accordingly, the organization continues to be recognized
as an organization described in section
501(c)(3) and exempt from tax under section 501(a).

Section 7428(c) Validation
of Certain Contributions
Made During Pendency
of Declaratory Judgment
Proceedings
Announcement 2011–47
This announcement serves notice to potential donors that the organization listed
below has recently filed a timely declaratory judgment suit under section 7428 of
the Code, challenging revocation of its
status as an eligible donee under section
170(c)(2).
Protection under section 7428(c) of the
Code begins on the date that the notice
of revocation is published in the Internal
Revenue Bulletin and ends on the date
on which a court first determines that an
organization is not described in section
170(c)(2), as more particularly set forth in
section 7428(c)(1).
In the case of individual contributors,
the maximum amount of contributions
protected during this period is limited to
$1,000.00, with a husband and wife being
treated as one contributor. This protection
is not extended to any individual who was
responsible, in whole or in part, for the
acts or omissions of the organizations that
were the basis for the revocation.
This protection also applies (but without limitation as to amount) to organizations described in section 170(c)(2) which
are exempt from tax under section 501(a).
If the organization ultimately prevails in its
declaratory judgment suit, deductibility of
contributions would be subject to the normal limitations set forth under section 170.
First Step, Inc.
Manahawkin, NJ

Fisherman’s Hospital
Marathon, FL

178

August 22, 2011

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.

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.

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.

August 22, 2011

i

2011–34 I.R.B.

Numerical Finding List1

Treasury Decisions— Continued:

Bulletins 2011–27 through 2011–34

9530, 2011-31 I.R.B. 77
9531, 2011-31 I.R.B. 79

Announcements:
2011-37, 2011-27 I.R.B. 37
2011-38, 2011-28 I.R.B. 45

9532, 2011-32 I.R.B. 95
9533, 2011-33 I.R.B. 139
9534, 2011-33 I.R.B. 144

2011-39, 2011-28 I.R.B. 46
2011-40, 2011-29 I.R.B. 56
2011-41, 2011-28 I.R.B. 47
2011-42, 2011-32 I.R.B. 138
2011-44, 2011-33 I.R.B. 164
2011-45, 2011-34 I.R.B. 178
2011-46, 2011-34 I.R.B. 178
2011-47, 2011-34 I.R.B. 178

Notices:
2011-47, 2011-27 I.R.B. 34
2011-50, 2011-27 I.R.B. 35
2011-51, 2011-27 I.R.B. 36
2011-52, 2011-30 I.R.B. 60
2011-53, 2011-32 I.R.B. 124
2011-54, 2011-29 I.R.B. 53
2011-55, 2011-29 I.R.B. 53
2011-56, 2011-29 I.R.B. 54
2011-57, 2011-31 I.R.B. 84
2011-58, 2011-31 I.R.B. 85
2011-59, 2011-31 I.R.B. 86
2011-60, 2011-31 I.R.B. 90
2011-61, 2011-31 I.R.B. 91
2011-62, 2011-32 I.R.B. 126
2011-63, 2011-34 I.R.B. 172
2011-65, 2011-34 I.R.B. 173
2011-67, 2011-34 I.R.B. 174
2011-70, 2011-32 I.R.B. 135

Proposed Regulations:
REG-137128-08, 2011-28 I.R.B. 43
REG-125592-10, 2011-32 I.R.B. 137
REG-101352-11, 2011-30 I.R.B. 75
REG-118809-11, 2011-33 I.R.B. 162

Revenue Procedures:
2011-38, 2011-30 I.R.B. 66
2011-39, 2011-30 I.R.B. 68

Revenue Rulings:
2011-14, 2011-27 I.R.B. 31
2011-15, 2011-30 I.R.B. 57
2011-16, 2011-32 I.R.B. 93
2011-17, 2011-33 I.R.B. 160

Treasury Decisions:
9527, 2011-27 I.R.B. 1
9528, 2011-28 I.R.B. 38
9529, 2011-30 I.R.B. 57

1

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011–1 through 2011–26 is in Internal Revenue Bulletin
2011–26, dated June 27, 2011.

2011–34 I.R.B.

ii

August 22, 2011

Finding List of Current Actions on
Previously Published Items1
Bulletins 2011–27 through 2011–34
Notices:
2010-23
Modified and supplemented by
Notice 2011-54, 2011-29 I.R.B. 53
2010-81
Amended and supplemented by
Notice 2011-63, 2011-34 I.R.B. 172
2010-88
Modified by
Ann. 2011-40, 2011-29 I.R.B. 56

Proposed Regulations:
REG-118761-09
Hearing scheduled by
Ann. 2011-38, 2011-28 I.R.B. 45

Revenue Procedures:
2008-24
Modified and superseded by
Rev. Proc. 2011-38, 2011-30 I.R.B. 66
2008-32
Superseded by
Rev. Proc. 2011-39, 2011-30 I.R.B. 68

Revenue Rulings:
58-225
Obsoleted by
Rev. Rul. 2011-15, 2011-30 I.R.B. 57

1

A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2011–1 through 2011–26 is in Internal Revenue Bulletin 2011–26, dated June 27, 2011.

August 22, 2011

iii

2011–34 I.R.B.

2011–34 I.R.B.

August 22, 2011

August 22, 2011

2011–34 I.R.B.

INTERNAL REVENUE BULLETIN
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