# Bulletin No. 2021–52

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A26e914adfd9a096e

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2021–52
December 27, 2021

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.

EXCISE TAX
Notice 2021-66, page 901.

Notice 2021-66 provides the initial list of taxable substances
under section 4672(a) required by section section 80201(c)
(3) of the Infrastructure Investment and Jobs Act (Public Law
117-58, 135 Stat. 429) to be published by the Secretary of
the Treasury no later than January 1, 2022. The notice also
addresses the registration requirements imposed by section
4662(b)(10)(C) and (c)(2)(B) to exempt certain sales and
uses of taxable chemicals from tax, and provides the procedural rules that apply to taxpayers subject to the reinstated
Superfund chemical taxes. In addition, pending further guidance, the notice suspends Notice 89-61, 1989-1 C.B. 717,
as modified by Notice 95-39, 1995-1 C.B. 312, which prescribed the former process for certain persons to request
that certain substances be added to or removed from the list
of taxable substances under section 4672(a)(3) as previously
in effect. Finally, the notice requests comments on whether
any issues related to the reinstated Superfund chemical
taxes require clarification or additional guidance.

EXEMPT ORGANIZATIONS
Announcement 2021-18, page 910.

This announcement revokes Announcement 2001-33, 200117 IRB 1137. Announcement 2001-33 provided tax-exempt
organizations with reasonable cause for purposes of relief
from the penalty imposed under § 6652(c)(1)(A)(ii) of the
Internal Revenue Code if they reported compensation on
their annual information returns in the manner described in
Announcement 2001-33 instead of in accordance with cer-

Finding Lists begin on page ii.

tain form instructions. The Announcement instructs affected
tax-exempt organizations to follow the specific instructions to
the Form 990, Form 990-EZ, and Form 990-PF, effective for
annual information returns required for taxable years beginning on or after January 1, 2022 (the earliest of which will be
filed in May 2023).

TAX CONVENTIONS
Announcement 2021-19, page 912.

The Competent Authorities of the United States and the Republic of Malta entered into a Competent Authority Arrangement
under paragraph 3 of Article 25 (Mutual Agreement Procedure) of the U.S.-Malta Treaty (Treaty) confirming that certain
pension or other retirement arrangements, including Maltese
personal retirement schemes, are not treated as “pension
funds” for purposes of the Treaty and that distributions from
these schemes are not “pensions or other similar remuneration” for purposes of the Treaty. Consequently, treaty benefits cannot be obtained with respect to these schemes.

INCOME TAX
Rev. Proc. 2021-54, page 903.
The revenue procedure sets forth the unpaid loss discount factors for the 2021 accident year for purposes
of section 846 of the Internal Revenue Code. The revenue procedure also prescribes the salvage discount
factors for the 2021 accident year, which must be used
to compute discounted estimated salvage recoverable
under section 832 of the Internal Revenue Code.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.

Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

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.

December 20, 2021 

Bulletin No. 2021–51

Part III
Superfund; Initial List
of Taxable Substances;
Registration; Procedural
Rules; Request for
Comments; Suspension
of Notice 89-61
Notice 2021-66
SECTION 1. PURPOSE
This notice relates to section 80201 of
the Infrastructure Investment and Jobs Act
(IIJA), Public Law 117-58, 135 Stat. 429
(November 15, 2021), which reinstates,
effective July 1, 2022, the excise taxes
imposed on certain chemical substances by
sections 4661 and 4671 of the Internal Revenue Code (Code) (collectively, Superfund
chemical taxes) and modifies the applicable
rates of tax and other provisions related to
those taxes. (Unless otherwise stated, all section references in this notice are to the Code.)
Pursuant to section 80201(c)(3) of the
IIJA, this notice provides the initial list of
taxable substances under section 4672(a)
required to be published by the Secretary of
the Treasury or her delegate (Secretary) no
later than January 1, 2022. This notice also
addresses the registration requirements
imposed by section 4662(b)(10)(C) and (c)
(2)(B) to exempt certain sales and uses of
taxable chemicals from tax, and provides
the procedural rules that apply to taxpayers
subject to the reinstated Superfund chemical taxes. In addition, pending further guidance, this notice suspends Notice 89-61,
1989-1 C.B. 717, as modified by Notice
95-39, 1995-1 C.B. 312, which prescribed
the former process for certain persons to
request that certain substances be added
to or removed from the list of taxable substances under section 4672(a)(3) as previously in effect. Finally, this notice requests
comments on whether any issues related
to the reinstated Superfund chemical taxes
require clarification or additional guidance.
SECTION 2. BACKGROUND
The Comprehensive Environmental
Response, Compensation, and Liability Act

Bulletin No. 2021–52

of 1980 (CERCLA), Public Law 96-510,
94 Stat. 2767 (1980), informally referred
to as “Superfund,” was enacted, in part,
to create a hazardous substance cleanup
program. Section 221 of CERCLA established the “Hazardous Substance Response
Trust Fund,” which was funded, in part, by
the section 4661(a) tax on sales of taxable
chemicals (enacted by section 211 of CERCLA) and the section 4671(a) tax on sales
or uses of imported taxable substances that
use one or more taxable chemicals in their
manufacture or production (enacted by
section 515 of the Superfund Amendments
and Reauthorization Act of 1986, Public
Law 99-499, 100 Stat. 1613 (1986)). The
Superfund chemical taxes as previously in
effect expired on December 31, 1995.
Effective July 1, 2022, section 80201 of
the IIJA reinstates the Superfund chemical
taxes with several modifications, including
to the applicable rates of tax. In addition,
section 80201(c)(1) of the IIJA modifies
the method under section 4672(a)(2)(B)
for determining whether a substance is a
taxable substance by lowering the required
percentage of taxable chemicals used to
produce the substance from 50 percent to 20
percent of the weight (or the value) of the
materials used to produce such substance.
SECTION 3. LAW
Section 4661(a) imposes a tax on any
taxable chemical sold by the manufacturer, producer, or importer.
Section 4661(b) provides a list of taxable chemicals and the amount of tax
imposed by section 4661(a) on those
chemicals.
Section 4662 provides definitions and
special rules applicable to the section
4661(a) tax.
Section 4662(b)(10)(C) and (c)(2)(B)
requires parties to sales of certain intermediate hydrocarbon streams and inventory
exchanges to be registered by the IRS in
order to qualify for the exceptions in section 4662(b)(10)(A) and (c)(2)(A).
Section 4671(a) imposes a tax on any
taxable substance sold or used by the
importer.
Section 4671(b) provides that the
amount of tax imposed by section 4671(a)
with respect to any taxable substance

901

is equal to the amount of tax that would
have been imposed by section 4661 on
the taxable chemicals used as materials in
the manufacture of the taxable substance
if such taxable chemicals had been sold
in the United States for use in the manufacture or production of the taxable substance.
Section 4672 provides definitions and
special rules applicable to the section
4671(a) tax.
Section 4672(a)(1) generally provides
that the term “taxable substance” means
any substance which, at the time of sale or
use by the importer, is listed as a taxable
substance. Section 4672(a)(3) provides a
list of taxable substances.
Section 4672(a)(2), as modified by section 80201(c)(1) of the IIJA, generally provides that a substance shall be listed under
section 4672(a)(1) if (A) the substance
is contained in the list in section 4672(a)
(3), or (B) the Secretary determines, in
consultation with the Administrator of the
Environmental Protection Agency and the
Commissioner of U.S. Customs and Border Protection, that taxable chemicals constitute more than 20 percent of the weight
(or more than 20 percent of the value) of
the materials used to produce such substance (determined on the basis of the
predominant method of production). Section 4672(a)(2) further provides that an
importer or exporter of any substance may
request a determination on whether that
substance should be added to or removed
from the list of taxable substances.
Notice 89-61 provides rules for filing
a petition to request a modification of the
list of taxable substances under section
4672(a).
SECTION 4. INITIAL LIST OF
TAXABLE SUBSTANCES UNDER
SECTION 4672(a)
Section 80201(c)(2) of the IIJA creates a presumption that any substance that
was determined to be a taxable substance
under section 4672(a)(2) prior to November 15, 2021 (the date of enactment of the
IIJA), continues to be treated as a taxable
substance for purposes of section 4672(a)
(2). As noted above, section 80201(c)(3)
of the IIJA requires the Secretary to pub-

December 27, 2021

lish an initial list of taxable substances
under section 4672(a) by January 1, 2022.
Based on the presumption in section
80201(c)(2) of the IIJA and other considerations, such as the reduction of the
weight and value thresholds in section
4672(a)(2)(B) from 50 percent to 20 percent made by section 80201(c)(1) of the
IIJA and determinations regarding taxable
substances previously made pursuant to
the process described in Notice 89-61,
the Department of the Treasury (Treasury
Department) and the Internal Revenue
Service (IRS) have determined that the
initial list of taxable substances required
to be published by section 80201(c)(3)
of the IIJA includes only the taxable substances listed in section 4672(a)(3) and
the following substances:
1,4 butanediol
1,3-butylene glycol
1,5,9-cyclododecatriene
2-ethyl hexanol
2-ethylhexyl acrylate
2 , 2 , 4 - tr imeth y l- 1 , 3 - p en tan ed io l
diisobutyrate
2 , 2 , 4 - tr imeth y l- 1 , 3 - p en tan ed io l
monoisobutyrate
acetic acid
acetylene black
adipic acid
adiponitrile
allyl chloride
alpha-methylstyrene
aniline
benzaldehyde
benzoic acid
bisphenol-A
butanol
butyl acrylate
butyl benzyl phthalate
chlorinated polyethylene
cyclododecanol
decabromodiphenyl oxide
di-2 ethyl hexyl phthalate
di-n-hexyl adipate
diethanolamine
diglycidyl ether of bisphenol-A
diisopropanolamine
dimethyl terephthalate
dimethyl-2, 6-naphthalene dicarboxylate
diphenyl oxide
diphenylamine
epichlorohydrin
ethyl acetate
ethyl acrylate

December 27, 2021

ethyl chloride
ethylene dibromide
ethylenebistetrabromophthalimide
formic acid
glycerine
hexabromocyclododecane
hexamethylenediamine
isobutyl acetate
isopropyl acetate
linear alpha olefins
methyl acrylate
methyl chloroform
methyl isobutyl ketone
methyl methacrylate
monochlorobenzene
monoethanolamine
monoisopropanolamine
normal butyl acetate
normal propyl acetate
nylon 6/6
ortho-dichlorobenzene
ortho-nitrochlorobenzene
paraformaldehyde
para-dichlorobenzene
para-nitrochlorobenzene
para-nitrophenol
pentaerythritol
perchloroethylene
phenol
phosphorous pentasulfide
phosphorous trichloride
poly 1,4 butyleneterephthalate
poly (69/31 ethylene/cyclohexylenedimethylene terephthalate)
poly (96.5/3.5 ethylene/cyclohexylenedimethylene terephthalate)
poly (98.5/1.5 ethylene/cyclohexylenedimethylene terephthalate)
poly(ethyleneoxy)glycerol
poly(propylene)glycol
poly(propylene/ethylene)glycol
poly(propyleneoxy)glycerol
poly(propyleneoxy)sucrose
poly(propyleneoxy/ethyleneoxy)benzenediamine
poly(propyleneoxy/ethyleneoxy)
diamine
poly(propyleneoxy/ethyleneoxy)glycerol
poly(propyleneoxy/ethyleneoxy)
sucrose
polyalphaolefins
polybutene
polybutylene
polybutylene/ethylene
polycarbonate
polyethylene terephthalate pellets

902

propanol
sodium nitriolotriacetate monohydrate
synthetic linear fatty alcohols
synthetic linear fatty alcohol ethoxylates
terephthalic acid
tetrabromobisphenol-A
tetrachlorophthalic anhydride
tetrahydrofuran
texanol benzyl phthalate
toluene diisocyanate
toluenediamine
trichloroethylene
triethanolamine
triisopropanolamine
trimethylolpropane
vinyl acetate
SECTION 5. PETITIONS TO
MODIFY THE LIST OF TAXABLE
SUBSTANCES
Notice 89-61, issued when the Superfund chemical taxes were previously
in effect, prescribes the process under
section 4672(a)(2) by which importers
or exporters may request a determination that the list of taxable substances be
modified by either adding or removing a
substance. The Treasury Department and
the IRS intend to update Notice 89-61
to reflect the changes made to section
4672(a)(2) by the IIJA, and to make other
changes that may be necessary. Accordingly, Notice 89-61 is suspended pending
the issuance of additional guidance. See
IRM 32.2.2.8.1, para. 9 (Aug. 11, 2004)
(providing that previously published guidance can be suspended in rare situations
“to show that previously published guidance will not be applied pending some
future action, such as the issuance of new
or amended regulations”).
SECTION 6. REGISTRATION FOR
CERTAIN EXCEPTIONS
Section 4662(b)(10)(A) provides that
no tax is imposed on any organic taxable
chemical while the chemical is part of an
intermediate hydrocarbon stream containing one or more organic taxable chemicals. Section 4662(b)(10)(C) provides that
the exception in section 4662(b)(10)(A)
does not apply to the sale of any intermediate hydrocarbon stream unless the registration requirements of section 4662(c)(2)
(B) are satisfied.

Bulletin No. 2021–52

Section 4662(c)(2)(A) provides that
no tax is imposed on inventory exchanges
of taxable chemicals. Section 4662(c)(2)
(B) provides that the exception in section 4662(c)(2)(A) does not apply to any
inventory exchange unless the registration
requirements of section 4662(c)(2)(B) are
satisfied.
The registration requirements of section 4662(c)(2)(B) are not satisfied unless
(i) both parties are registered by the IRS
as manufacturers, producers, or importers
of taxable chemicals; and (ii) the person
receiving the taxable chemical has notified
the manufacturer, producer, or importer of
such person’s registration number.
Application for section 4662(b)(10)(C)
intermediate hydrocarbon stream registration and section 4662(c)(2)(B) inventory
exchange registration must be made on
Form 637, Application for Registration
(For Certain Excise Tax Activities), under
Activity Letter “G” (persons making
inventory exchanges of taxable chemicals under section 4662(c)(2) or persons
selling or buying intermediate hydrocarbon streams under section 4662(b)(10))
in accordance with the instructions for
that form. The IRS is revising Form 637
to add Activity Letter G. Until the revised
Form 637 is released, applicants may use
the current Form 637 by writing in Activity Letter G and providing the following
information: (i) a list of the taxable chemicals the applicant exchanges and/or the
intermediate hydrocarbon streams the
applicant sells or buys; and (ii) a description of the applicant’s processing plants,
the products produced, the handling
and storage facilities, and the processes
involving hydrocarbon streams, as applicable.
SECTION 7. APPLICABLE
PROCEDURAL RULES
The Superfund chemical taxes are part
of Subtitle D, chapter 38 of the Code.
Accordingly, the procedural rules in 26
C.F.R. part 40 regarding filing, deposits,
etc., apply to persons subject to the reinstated Superfund chemical taxes. Such
persons must report the reinstated Superfund chemical taxes on Form 6627, Environmental Taxes, which is attached to
Form 720, Quarterly Federal Excise Tax
Return.

Bulletin No. 2021–52

SECTION 8. REQUEST FOR
COMMENTS

SECTION 11. DRAFTING
INFORMATION

The Treasury Department and the IRS
request comments on whether any issues
related to the reinstated Superfund chemical taxes require clarification or additional guidance. Comments should be
submitted in writing by January 28, 2022,
and should include a reference to Notice
2021-66. Comments may be submitted
electronically via the Federal Rulemaking Portal at www.regulations.gov (type
IRS-2021-0018 or Notice 2021-66 in the
search field on the regulations.gov homepage to find this notice and submit comments). Alternatively, comments may be
mailed to: Internal Revenue Service, Attn:
CC:PA:LPD:PR (Notice 2021-66), Room
5203, P.O. Box 7604, Ben Franklin Station,
Washington D.C. 20044. All commenters
are strongly encouraged to submit public
comments electronically. The IRS expects
to have limited personnel available to process public comments that are submitted
on paper through mail. Until further notice,
any comments submitted on paper will be
considered to the extent practicable. The
Treasury Department and the IRS will publish for public availability any comment
submitted electronically, and, to the extent
practicable, on paper, to its public docket.

The principal authors of this notice are
Stephanie Bland, Amanda Dunlap, and
Natalie Payne of the Office of Associate
Chief Counsel (Passthroughs & Special
Industries). For questions regarding the
registration process, contact Diane M.
Williams at (856) 792-9362. For all other
questions regarding this notice, contact
Ms. Payne at (202) 317-6855.

SECTION 9. EFFECT ON OTHER
DOCUMENTS
Notice 89-61 is suspended.
SECTION 10. PAPERWORK
REDUCTION ACT
Section 6 of this notice sets forth a
collection of information to be provided
to the IRS with Form 637. This collection of information will be reflected in the
submission to the Office of Management
and Budget (OMB) for review in accordance with the Paperwork Reduction Act
(44 U.S.C. 3507(c)) that is associated with
Form 637 (OMB control number 15451835). This submission will be updated
in the ordinary course. 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.

903

26 CFR 601.201: Rulings and determination letters.
(Also: Part I, Sections 832, 846; 1.832-4, 1.846-1.)

Rev. Proc. 2021-54
SECTION 1. PURPOSE
This revenue procedure prescribes discount factors for the 2021 accident year
for use by insurance companies in computing discounted unpaid losses under
§ 846 of the Internal Revenue Code and
discounted estimated salvage recoverable
under § 832. This revenue procedure also
provides, for convenience, discount factors for losses incurred in the 2020 accident year and earlier accident years for use
in taxable years beginning in 2021. The
discount factors for accident years before
2021 were prescribed in Rev. Proc. 202048, 2020-49 I.R.B. 1459. See Rev. Proc.
2019-31, 2019-33 I.R.B. 643, and Rev.
Proc. 2019-06, 2019-02 I.R.B. 284, for
background concerning the loss payment
patterns and application of the discount
factors.
SECTION 2. SCOPE
This revenue procedure applies to any
insurance company that is required to
discount unpaid losses under § 846 for a
line of business using the discount factors published by the Secretary, and also
applies to any insurance company that is
required to discount estimated salvage
recoverable under § 832.
SECTION 3. DISCOUNT FACTORS
FOR THE 2021 ACCIDENT YEAR
.01 The tables in this section 3 present separately for each line of business

December 27, 2021

the discount factors for losses incurred in
the 2021 accident year for use by insurance companies in computing discounted
unpaid losses under § 846 and estimated
salvage recoverable under § 832. The discount factors presented in this section are
generally determined by using the applicable interest rate for 2021 under § 846(c),
which is 2.84 percent, compounded semiannually. The exceptions are the discount
factors for long-tail lines of business provided for taxable years beginning in 2031,
which are computed using discount factors
applicable to multiple accident years. All

discount factors are determined by assuming all loss payments occur in the middle
of the calendar year.
.02 Section V of Notice 88-100, 1988-2
C.B. 439, sets forth a composite method
for computing discounted unpaid losses
for accident years that are not separately
reported on the annual statement. Tables 1
and 2 separately provide discount factors
for insurance companies that have elected
to use the composite method of Notice
88-100. See Rev. Proc. 2002-74, 2002-2
C.B. 980. The discount factors computed
using the composite method are unrelated

to the composite discount factors referred
to in § 1.846-1(b)(1)(ii) and (4) of the
Income Tax Regulations, which apply
to lines of business for which the Secretary has not published discount factors.
The composite discount factors for use
with respect to such lines of business are
labelled “Short-Tail Composite” (in Table
1, part B) and “Long-Tail Composite”
(in Table 2, part B). The “Miscellaneous
Casualty” discount factors referenced in
§ 1.846-1(b)(2) are not set forth in tables,
but are equivalent to the “Short-Tail Composite” discount factors.

Table 1 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2021 in Short-Tail Lines of Business
Taxable Year
Fidelity/
Financial Guaranty/
Beginning in
Auto Physical Damage
Surety
Mortgage Guaranty
International
Other*
2021
98.4430
96.1212
95.8926
96.4227
97.1971
2022
97.2290
97.2290
97.2290
97.2290
97.2290
Taxpayer Not Using Composite Method
Years after 2022
98.5999
98.5999
98.5999
98.5999
98.5999
Taxpayer Using the Composite Method
2023
98.5999
98.5999
98.5999
98.5999
98.5999
Years after 2023
Use composite method discount factors published in Table 1 for the relevant accident year.**
* For Accident and Health lines of business (other than disability income or credit disability insurance), the discount factor
for taxable year 2021 is 98.5999 percent. This is also the discount factor used in later taxable years for taxpayers not using
the composite method. For taxpayers using the composite method, the discount factor for losses incurred in 2021 is the
discount factor published for Accident and Health lines of business for losses incurred in the accident year coinciding with
the taxable year.
**The relevant accident year is the accident year that is two years prior to the specified taxable year.
Table 1 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2021 in Short-Tail Lines of Business
Special Property
Reinsurance Reinsurance Reinsurance (Fire, Allied Lines,
Taxable
Nonproportional Nonproportional Nonproportional
Inland Marine,
Year
Assumed
Assumed
Assumed
Earthquake,
Beginning in Financial Lines
Liability
Property
Burglary & Theft) Warranty
2021
95.7494
95.0072
96.4056
97.5958
98.2549
2022
97.2290
97.2290
97.2290
97.2290
97.2290
Taxpayer Not Using Composite Method
Years after
98.5999
98.5999
98.5999
98.5999
98.5999
2022
Taxpayer Using the Composite Method
2023
98.5999
98.5999
98.5999
98.5999
98.5999
Years after
2023
Use composite discount factors published in Table 1 for the relevant accident year.*

Short-Tail
Composite
97.0943
97.2290
98.5999

98.5999

*The relevant accident year is the accident year that is two years prior to the specified taxable year.

December 27, 2021

904

Bulletin No. 2021–52

Table 2 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2021 in Long-Tail Lines of Business
Medical
Medical
Other
Taxable
Commercial
Professional
Professional
Liability Year
Auto/Truck
Liability Liability Multiple Peril
ClaimsBeginning in Liability/Medical
Claims-Made
Occurrence
Lines
Made
2021
94.2466
91.9173
87.2985
95.4554
91.1762
2022
94.9297
92.8717
89.2979
93.8725
91.9550
2023
95.4344
93.0842
90.7809
94.1554
92.4448
2024
95.4717
93.3572
92.0790
93.4173
92.4864
2025
95.3575
93.4953
92.9976
91.6759
92.3482
2026
95.2101
93.5188
93.7158
91.8684
92.8399
2027
95.4780
94.4288
94.5029
91.5907
93.2995
2028
95.1447
95.2881
95.1626
91.3051
94.0375
2029
96.5290
96.1473
96.2499
93.7295
95.0924
2030
98.4134
97.8252
97.8637
95.0210
96.7971
Taxpayer Not Using Composite Method
2031
98.5999
98.5999
98.5999
96.3150
98.0698
2032
98.5999
98.5999
98.5999
97.5874
98.5999
Years after
98.5999
98.5999
98.5999
98.5999
98.5999
2032
Taxpayer Using the Composite Method
2031
98.5999
98.5999
98.5999
96.9392
98.1368
Years after
2031
Use composite discount factors published in Table 2 for the relevant accident year.*

Other
Liability Occurrence
89.6959
90.5083
91.0405
91.2022
90.9746
91.0447
91.0706
92.2390
92.8607
94.6766
95.9875
97.3100
98.5999

96.7452

*The relevant accident year is the accident year that is ten years prior to the specified taxable year.

Bulletin No. 2021–52

905

December 27, 2021

Table 2 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2021 in Long-Tail Lines of Business
Private
Taxable
Passenger
Products
Products
Year
Auto Liability/
Liability Liability Workers'
Beginning in
Medical
Claims-Made
Occurrence
Compensation
2021
95.8143
86.3181
88.1921
88.3902
2022
95.4438
86.7679
89.4762
86.9319
2023
95.4048
88.4963
90.1990
85.8758
2024
95.0561
84.2953
91.4658
84.4348
2025
94.4178
85.5424
90.1962
83.9002
2026
94.4666
86.8355
90.2467
83.3968
2027
94.6980
88.1822
91.1419
83.7563
2028
95.2164
89.3819
92.0685
84.5824
2029
95.7906
90.6034
92.4505
85.1799
2030
97.8038
91.8471
94.5952
87.0064
Taxpayer Not Using Composite Method
2031
98.5999
93.1129
95.9128
88.1846
2032
98.5999
94.4005
97.2514
89.3844
2033
98.5999
95.7084
98.5999
90.6060
2034
98.5999
97.0315
98.5999
91.8498
2035
98.5999
98.3441
98.5999
93.1157
2036
98.5999
98.5999
98.5999
94.4034
2037
98.5999
98.5999
98.5999
95.7116
2038
98.5999
98.5999
98.5999
97.0350
2039
98.5999
98.5999
98.5999
98.3484
Years after
98.5999
98.5999
98.5999
98.5999
2039
Taxpayer Using the Composite Method
2031
98.5999
94.6915
96.7042
91.1782
Years after
2031
Use composite discount factors published in Table 2 for the relevant accident year.*

Long-Tail
Composite
92.9811
91.9840
91.7095
90.5906
89.0997
88.9927
88.9796
89.5061
90.6906
92.3972
93.6657
94.9515
96.2473
97.5271
98.5999
98.5999
98.5999
98.5999
98.5999
98.5999

95.0674

*The relevant accident year is the accident year that is ten years prior to the specified taxable year.

SECTION 4. DISCOUNT FACTORS
FOR TAXABLE YEARS BEGINNING
IN 2021
.01 The tables in this section 4 present separately for each line of business
discount factors for losses incurred in the
2021 accident year and earlier accident
years for use by insurance companies in
computing discounted unpaid losses under
§ 846 and estimated salvage recoverable

December 27, 2021

under § 832 in taxable years beginning in
2021.
.02 Tables 3 and 4 separately provide
discount factors for insurance companies
that have elected to use the composite
method of Notice 88-100. See Rev. Proc.
2002-74. The discount factors computed
using the composite method are unrelated to the composite discount factors
referred to in § 1.846-1(b)(1)(ii) and
(4), which apply to lines of business for

906

which the Secretary has not published
discount factors. The composite discount factors for use with respect to such
lines of business are labelled “ShortTail Composite” (in Table 3, part B) and
“Long-Tail Composite” (in Table 4, part
B). The “Miscellaneous Casualty” discount factors referenced in § 1.846-1(b)
(2) are not set forth in tables, but are
equivalent to the “Short-Tail Composite”
discount factors.

Bulletin No. 2021–52

Accident Year

Auto Physical
Damage
2021
98.4430
2020
97.0010
Taxpayer Not Using Composite Method
2019
98.4785
Years before
98.5513
2019
Taxpayer Using the Composite Method
Years before
98.4785
2020

Table 3 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2021
Short-Tail Lines of Business
Fidelity/Surety
Financial Guaranty/
Mortgage Guaranty
96.1212
95.8926
97.0010
97.0010

International

Other*

96.4227
97.0010

97.1971
97.0010

98.4785
98.5513

98.4785
98.5513

98.4785
98.5513

98.4785
98.5513

98.4785

98.4785

98.4785

98.4785

* For Accident and Health lines of business (other than disability income or credit disability insurance), the discount factor
for taxable year 2021 is 98.5999 percent.

Table 3 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2021
Short-Tail Lines of Business
Special Property
Reinsurance Reinsurance Reinsurance (Fire, Allied Lines,
Nonproportional Nonproportional Nonproportional
Accident Year
Inland Marine,
Assumed
Assumed
Assumed
Earthquake,
Financial Lines
Liability
Property
Burglary & Theft)
2021
95.7494
95.0072
96.4056
97.5958
2020
97.0010
97.0010
97.0010
97.0010
Taxpayer Not Using Composite Method
2019
98.4785
98.4785
98.4785
98.4785
Years before
2019
98.5513
98.5513
98.5513
98.5513
Taxpayer Using the Composite Method
Years before
98.4785
98.4785
98.4785
98.4785
2020

Bulletin No. 2021–52

907

Warranty

Short-Tail
Composite

98.2549
97.0010

97.0943
97.0010

98.4785

98.4785

98.5513

98.5513

98.4785

98.4785

December 27, 2021

Table 4 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2021
Long-Tail Lines of Business
Medical
Commercial
Professional
Accident
Auto/Truck
Liability - ClaimsYear
Liability/Medical
Made
2021
94.2466
91.9173
2020
94.5252
92.3148
2019
95.0543
92.5197
2018
95.3204
93.1388
2017
95.2024
93.2805
2016
95.0498
93.3035
2015
95.3260
94.2423
2014
94.9804
95.1291
2013
96.4102
96.0160
2012
98.3585
97.7503
Taxpayer Not Using the Composite Method
2011
98.5513
98.5513
2010
98.5513
98.5513
Years
98.5513
98.5513
before 2010
Taxpayer Using the Composite Method
Years
98.5513
98.5513
before 2012

Medical
Professional
Liability Occurrence
87.2985
88.4733
90.0344
91.8194
92.7664
93.5069
94.3189
94.9993
96.1220
97.7902

Multiple
Peril Lines
95.4554
93.3939
93.6815
93.2041
91.4064
91.6039
91.3154
91.0177
93.5200
94.8530

Other
Liability Claims-Made
91.1762
91.3319
91.8334
92.2415
92.0976
92.6040
93.0770
93.8378
94.9264
96.6876

Other
Liability Occurrence
89.6959
89.7843
90.3264
90.9196
90.6836
90.7542
90.7788
91.9830
92.6228
94.4974

98.5513
98.5513
98.5513

96.1895
97.5045
98.5513

98.0033
98.5513
98.5513

95.8511
97.2176
98.5513

98.5513

96.9185

98.0920

96.7300

December 27, 2021

908

Bulletin No. 2021–52

Table 4 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2021
Long-Tail Lines of Business
Private
Passenger
Products
Auto Liability/
Liability Accident Year
Medical
Claims-Made
2021
95.8143
86.3181
2020
95.0805
85.7949
2019
95.0239
87.6130
2018
94.8920
83.8076
2017
94.2325
85.0889
2016
94.2824
86.4184
2015
94.5205
87.8040
2014
95.0550
89.0388
2013
95.6473
90.2969
2012
97.7282
91.5785
Taxpayer Not Using the Composite Method
2011
98.5513
92.8838
2010
98.5513
94.2124
2009
98.5513
95.5629
2008
98.5513
96.9299
2007
98.5513
98.2868
2006
98.5513
98.5513
2005
98.5513
98.5513
2004
98.5513
98.5513
2003
98.5513
98.5513
Years before 2003
98.5513
98.5513
Taxpayer Using the Composite Method
Years before 2012
98.5513
94.7288

SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Megan McGuire of the Office
of Associate Chief Counsel (Financial
Institutions & Products). For further information regarding this revenue procedure
contact Ms. McGuire at (202) 317-6995
(not a toll-free number).

Bulletin No. 2021–52

Products
Liability Occurrence
88.1921
88.6772
89.4203
91.1924
89.8810
89.9309
90.8527
91.8072
92.1992
94.4133

Workers'
Compensation
88.3902
85.9962
84.8235
83.9662
83.4129
82.8905
83.2567
84.1036
84.7150
86.5946

Long-Tail
Composite
92.9811
91.3753
91.0564
90.2933
88.7546
88.6421
88.6258
89.1661
90.3858
92.1457

95.7739
97.1571
98.5513
98.5513
98.5513
98.5513
98.5513
98.5513
98.5513
98.5513

87.8065
89.0414
90.2995
91.5813
92.8867
94.2154
95.5661
96.9334
98.2913
98.5513

93.4541
94.7812
96.1195
97.4421
98.5513
98.5513
98.5513
98.5513
98.5513
98.5513

96.6903

91.2579

95.0968

Section 846.—Discounted
Unpaid Losses Defined.

Section 832.—Insurance
company taxable income.

26 C.F.R. 1.846-1: Application of discount factors.
Applicable unpaid loss discount factors for the
2021 accident year for purposes of section 846. See
Rev. Proc. 2021-54, page 903.

26 C.F.R. 1.832-4: Gross income.
Applicable salvage discount factors for the 2021
accident year, which must be used to compute discounted estimated salvage recoverable under section
832. See Rev. Proc. 2021-54, page 903.

909

December 27, 2021

Part IV
Revocation of
Announcement 2001-33
Announcement 2021-18
INTRODUCTION
This announcement revokes Announcement 2001-33, 2001-17 IRB 1137, which
deemed organizations exempt from taxation under § 501(a) of the Internal Revenue Code (Code) (tax-exempt organizations) to have reasonable cause for purposes of relief from the penalty imposed
under § 6652(c)(1)(A)(ii) of the Code
if they reported compensation on their
annual information returns in the manner described in Announcement 2001-33
instead of in accordance with certain form
instructions.
BACKGROUND
In general, § 6033(a)(1) of the Code
provides that every tax-exempt organization must file an annual return, stating
specifically the items of gross income,
receipts, and disbursements, and such
other information for the purpose of carrying out the internal revenue laws as the
Secretary of the Treasury or her delegate
may by forms or regulations prescribe.
Section 1.6033-2 of the Income Tax Regulations recites the language in § 6033(a)
(1), and requires that the organization
provide certain specified information,
including: (1) the names and addresses
of all officers, directors, or trustees (or
any person having similar responsibilities
or powers), and, in the case of a private
foundation, names and addresses of the
foundation’s managers; (2) a schedule
showing the names and addresses and/or
total numbers of key employees, highly
compensated employees, and independent
contractors; and (3) a schedule showing
the compensation and other payments

made to each of the persons listed. Section
6652(c)(1)(A)(ii) imposes a daily penalty
for the failure to include any of the information required to be shown on a return
filed under § 6033(a)(1).
The annual information returns
required under § 6033(a)(1) are Form
990, Return of Organization Exempt From
Income Tax; Form 990-EZ, Short Form
Return of Organization Exempt From
Income Tax; and Form 990-PF, Return of
Private Foundation (collectively, for purposes of this announcement, Form 990
series).
Beginning in 1999, in response to concerns that tax-exempt organizations were
paying excessive compensation to employees and avoiding reporting by channeling
the compensation through management
services companies and other entities, the
Internal Revenue Service (IRS) added to
the Form 990 series instructions the following statement: “If you pay any other
person, such as a management services
company, for the services provided by any
of your officers, directors, trustees or key
employees [or foundation managers for
private foundations], report the compensation and other items as if you had paid
them directly.”
The IRS received numerous comments concerning these new instructions
and issued Announcement 2001-33 to
solicit additional comments. Announcement 2001-33 provided that, until the IRS
notifies organizations otherwise by an
Announcement published in the Internal
Revenue Bulletin, a tax-exempt organization will be deemed to have reasonable
cause, for purposes of the penalty imposed
under § 6652(c)(1)(A)(ii), if it reports in
the compensation section of the Form 990
series1 return the amount paid to the management company (or other entity or person) for services, rather than reporting the
compensation paid to the person(s) who
provided services to the tax-exempt organization on behalf of that management
company.

In 2007, the IRS extensively redesigned the Form 990 for the tax year 2008,
including the parts of the form for reporting of compensation. Specifically, the
instructions to new Part VII of the 2008
Form 990 changed the reporting requirements for payments to management companies, treating them as independent contractors to be reported in Form 990, Part
VII, Section B, and requiring payments
from related management companies (but
not other management companies) to a
current or former officer, director, trustee,
or key employee (ODTKE) or highly compensated employee (HCE) to be reported
in Form 990, Part VII, Section A, columns
(E) and (F).
In response to questions and comments
received from the public, the IRS continued to refine Form 990, its schedules,
and instructions for tax years 2009 and
2010, including the instructions on reporting compensation paid through management companies. For example, the 2009
Form 990 instructions added an exception to the direction to report payments
to management companies as payments
to independent contractors, requiring that
employees of a management company be
reported as the tax-exempt organization’s
own employees if they are common law
employees of the tax-exempt organization
under state law.
In 2011, the IRS issued Announcement
2011-36, 2011-26 IRB 933, to, in part,
solicit comments from the public on transitional issues involving the redesigned
Form 990, including with respect to the
reporting of compensation paid to management and leasing companies. Announcement 2011-36 described Announcement
2001-33, the updated instructions to the
Form 990, and the concerns raised by the
public (1) that the instructions may allow
tax-exempt organizations to shield compensation to highly-paid executives from
disclosure by paying those executives
indirectly through management companies and (2) that determining whether a

Specifically, Announcement 2001-33 deems organizations to have reasonable cause for the “failure to provide the information required by the relevant portions of Parts IV, V, or VII” of Form
990-EZ, Form 990, and Form 990-PF, respectively. At the time Announcement 2001-33 was issued, Part V of the Form 990 addressed compensation and was titled List of Officers, Directors,
Trustees, and Key Employees. However, beginning with the 2008 Form 990 to the present, Part VII now addresses compensation and is titled Compensation of Officers, Directors, Trustees,
Key Employees, Highly Compensated Employees, and Independent Contractors.
1

December 27, 2021

910

Bulletin No. 2021–52

person is a common law employee under
state law is difficult. Based on some of
the comments received in response to
Announcement 2011-36, the IRS made
additional changes to the Form 990 and its
instructions.
Throughout the years, the IRS has continued to make revisions to the Form 990
and its instructions, including with regard
to compensation reporting, and to further
solicit and consider public feedback. Presently, the Form 990 instructions require
reporting on compensation that is similar
to the reporting described in Announcement 2011-36. However, the instructions
now clarify that if a tax-exempt organization’s current or former ODTKEs or HCEs
receive compensation from a related
management company that provided services to the tax-exempt organization, the
tax-exempt organization must report the
compensation separately. In addition,
the current instructions provide that, if a
tax-exempt organization has delegated
management duties to a management
company (or other entity or person), then
the tax-exempt organization must report
the details of the arrangement on Form
990, Schedule O, including the name(s) of
any of its current or former ODTKEs and
HCEs that were compensated under the

2

arrangement, and the amount(s) received
by the management company for the services provided to the tax-exempt organization. The current instructions also
explain how the tax-exempt organization
should treat employees of an employee
leasing company, a professional employer
organization (PEO) (whether or not a certified PEO), or a management company.
While the Forms 990-EZ and 990-PF2
were not redesigned to align with the Form
990, minor changes to their instructions
regarding compensation reporting have
been made over the years, and tax-exempt
organizations have had the opportunity to
comment on the Forms 990-EZ and 990PF as well as on their instructions.

and related instructions over the years,
including as part of the Form 990 redesign
process and in response to Announcement
2011-36. Having all tax-exempt organizations report compensation in accordance with the specific Form 990 series
instructions will improve transparency
and compliance by making it easier for
the public and the IRS to understand the
financial operations, including compensation arrangements, of tax-exempt organizations that file Form 990 series returns.
Accordingly, this announcement revokes
Announcement 2001-33, effective for
annual information returns required to
be filed for taxable years beginning on or
after January 1, 2022.

ANNOUNCEMENT 2001-33
REVOKED

DRAFTING INFORMATION

The Department of the Treasury and
the IRS have determined that it is no longer appropriate for tax-exempt organizations that file Form 990 series returns to
rely on Announcement 2001-33 rather
than follow the specific instructions to the
Form 990, Form 990-EZ, and Form 990PF. Tax-exempt organizations have had
multiple opportunities to comment on the
Form 990, Form 990-EZ, Form 990-PF,

The principal author of this announcement is La Vonne Fischer of the Office of
Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For further information
regarding this announcement, contact La
Vonne Fischer at (202) 317-5800 (not a
toll-free number).

The Form 990-PF instructions currently reference Announcement 2001-33; the reference will be removed.

Bulletin No. 2021–52

911

December 27, 2021

Subpart A – Tax Conventions and Other Related Items
U.S. - Malta Competent Authority Arrangement
Announcement 2021-19
The following is a copy of the Competent Authority Arrangement entered into by the competent authorities of the United States
of America and the Republic of Malta under paragraph 3 of Article 25 (Mutual Agreement Procedure) of the Convention between
the Government of the United States of America and the Government of Malta for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed on August 8, 2008, and entered into effect on January 1, 2011 (the
“Treaty”), regarding the meaning of “pension fund” for purposes of the Treaty.
The text of the Competent Authority Arrangement is as follows:
COMPETENT AUTHORITY ARRANGEMENT
The competent authorities of the United States of America and the Republic of Malta enter into the following arrangement (Arrangement) regarding the definition of the term “pension fund” under the Convention between the Government of the United States of
America and the Government of Malta for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to
Taxes on Income signed on August 8, 2008, and entered into effect on January 1, 2011 (Treaty). This Arrangement is entered into
under paragraph 3 of Article 25 (Mutual Agreement Procedure) of the Treaty.
It has come to the attention of the competent authorities that U.S. citizens and residents are establishing personal retirement schemes
in Malta under the Retirement Pensions Act of 2011 with no limitation based on earnings from employment or self-employment, and
are making contributions to these schemes in forms other than cash (e.g., securities). Questions have arisen in the United States about
whether these personal retirement schemes are “pension funds” for purposes of applying the Treaty.
The term “pension fund” is defined in paragraph 1(k) of Article 3 (General Definitions) and is relevant for the application of Articles
1 (General Scope), 4 (Resident), 10 (Dividends), 17 (Pensions, Social Security, Annuities, Alimony, and Child Support), 18 (Pension
Funds), and 22 (Limitation on Benefits) of the Treaty. Paragraph 1(k) of Article 3 of the Treaty states in relevant part that a pension
fund means:

any person established in a Contracting State that is:
i) in the case of pension funds established in the United States, generally exempt from income taxation, and in the case of pension
funds established in Malta, a licensed fund or scheme subject to tax only on income derived from immovable property situated in
Malta; and
ii) operated principally either:
A) to administer or provide pension or retirement benefits; or
 ) to earn income for the benefit of one or more persons meeting the requirements of subparagraph i) and clause A) of this subB
paragraph.
Under paragraph 3 of Article 25 of the Treaty, the competent authorities may resolve by mutual agreement any difficulties or doubts
arising as to the interpretation or application of the Treaty.
The competent authorities confirm that a fund, scheme or arrangement established in a Contracting State that, except in the case of a
qualified rollover from a pension fund established in the same Contracting State,
(a) is allowed to accept contributions from a participant in a form other than cash, or
( b) does not limit contributions by reference to earned income from personal services (including self-employment) of the participant or the participant’s spouse,
is not operated principally to administer or provide pension or retirement benefits within the meaning of paragraph 1(k) of Article 3
of the Treaty, and is therefore not a “pension fund”. The competent authorities therefore also confirm that distributions from this type

December 27, 2021

912

Bulletin No. 2021–52

of fund, scheme or arrangement are not “pensions or other similar remuneration” in consideration of past employment for purposes
of paragraph 1(b) of Article 17 of the Treaty. This type of fund, scheme, or arrangement includes a personal retirement scheme established in Malta under the Retirement Pensions Act of 2011.
Accordingly, U.S. citizens and residents may not claim benefits under paragraph 1(b) of Article 17 and Article 18 of the Treaty with
respect to the type of fund, scheme or arrangement described in the paragraph immediately above, including a personal retirement
scheme established in Malta under the Retirement Pensions Act of 2011. Additionally, these funds, schemes or arrangements may not
apply paragraph 2(e) of Article 22 of the Treaty to be treated as a qualified resident and may not claim the benefits of paragraph 3 of
Article 10 of the Treaty.
The competent authorities confirm that the interpretation in this Arrangement reflects the original intent of the Contracting States
regarding the definition of “pension fund” for purposes of the Treaty.
Any fund, scheme or arrangement, or any participant thereof, established in Malta that is not described in this Arrangement, including
any fund, scheme or arrangement established pursuant to Maltese legislation enacted after the date of signature of this Arrangement,
may present its case to the U.S. or Maltese competent authority under Article 25 of the Treaty to determine whether the fund, scheme
or arrangement qualifies as a “pension fund” within the meaning of paragraph 1(k) of Article 3 of the Treaty. Any such determination
will be made only by the mutual agreement of the competent authorities.
The competent authorities will notify each other of any material changes in their respective legislation concerning retirement or pension benefits that is enacted after the date of signature of this Arrangement, provided that such changes may impact this Arrangement.
In that event, the competent authorities will discuss whether such legislative changes warrant an update to this Arrangement.

Agreed to by the undersigned competent authorities:
/s/ /s/
____________________________ _______________________________
United States Competent Authority Malta Competent Authority
Date: November 30, 2021

Bulletin No. 2021–52

913

Date: December 3, 2021

December 27, 2021

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
­effect:
Amplified describes a situation where
no change is being made in a prior published position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confusion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously published ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the

new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the

new ruling does more than restate the substance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rulings in the series.
Suspended is used in rare situations
to show that the previous published rulings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.

Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.

A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.

Bulletin No. 2021–52

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.

i

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.

December 27, 2021

Numerical Finding List1
Bulletin 2021–52

Announcements:
2021-12, 2021-31 I.R.B. 267
2021-13, 2021-33 I.R.B. 314
2021-14, 2021-33 I.R.B. 315
2021-15, 2021-49 I.R.B. 846
2021-16, 2021-50 I.R.B. 872
2021-17, 2021-51 I.R.B. 889
2021-18, 2021-52 I.R.B. 910
2021-19, 2021-52 I.R.B. 912

AOD:
2021-4, 2021-47 I.R.B. 725

Notices:
2021-39, 2021-27 I.R.B. 3
2021-40, 2021-28 I.R.B. 15
2021-41, 2021-29 I.R.B. 17
2021-42, 2021-29 I.R.B. 19
2021-38, 2021-30 I.R.B. 155
2021-44, 2021-31 I.R.B. 166
2021-45, 2021-31 I.R.B. 170
2021-47, 2021-32 I.R.B. 269
2021-46, 2021-33 I.R.B. 303
2021-48, 2021-33 I.R.B. 305
2021-49, 2021-34 I.R.B. 316
2021-43, 2021-35 I.R.B. 332
2021-50, 2021-35 I.R.B. 333
2021-51, 2021-36 I.R.B. 361
2021-52, 2021-38 I.R.B. 381
2021-53, 2021-39 I.R.B. 438
2021-54, 2021-41 I.R.B. 457
2021-55, 2021-41 I.R.B. 461
2021-58, 2021-43 I.R.B. 660
2021-59, 2021-43 I.R.B. 664
2021-57, 2021-44 I.R.B. 706
2021-56, 2021-45 I.R.B. 716
2021-60, 2021-45 I.R.B. 719
2021-35, 2021-46 I.R.B. 723
2021-61, 2021-47 I.R.B. 738
2021-62, 2021-49 I.R.B. 831
2021-63, 2021-49 I.R.B. 835
2021-64, 2021-50 I.R.B. 869
2021-65, 2021-51 I.R.B. 880
2021-66, 2021-52 I.R.B. 901

Proposed Regulations:
REG-107705-21, 2021-30 I.R.B. 162
REG-102951-16, 2021-32 I.R.B. 272
REG-109077-21, 2021-39 I.R.B. 445
REG-100718-21, 2021-42 I.R.B. 653
REG-107707-21, 2021-42 I.R.B. 657
REG 117575-21, 2021-49 I.R.B. 847
REG-109128-21, 2021-51 I.R.B. 890

Revenue Procedures:
2021-28, 2021-27 I.R.B. 5
2021-29, 2021-27 I.R.B. 12
2021-24, 2021-29 I.R.B. 19
2021-14, 2021-30 I.R.B. 158
2021-30, 2021-31 I.R.B. 172
2021-31, 2021-33 I.R.B. 324
2021-33, 2021-34 I.R.B. 327
2021-34, 2021-35 I.R.B. 337
2021-35, 2021-35 I.R.B. 355
2021-36, 2021-35 I.R.B. 357
2021-37, 2021-38 I.R.B. 385
2021-38, 2021-38 I.R.B. 425
2021-39, 2021-38 I.R.B. 426
2021-40, 2021-38 I.R.B. 426
2021-41, 2021-39 I.R.B. 443
2021-32, 2021-42 I.R.B. 465
2021-44, 2021-42 I.R.B. 469
2021-42, 2021-43 I.R.B. 666
2021-46, 2021-47 I.R.B. 740
2021-45, 2021-48 I.R.B. 764
2021-47, 2021-48 I.R.B. 775
2021-48, 2021-49 I.R.B. 835
2021-49, 2021-49 I.R.B. 838
2021-50, 2021-49 I.R.B. 844
2021-43, 2021-51 I.R.B. 882
2021-52, 2021-51 I.R.B. 883
2021-53, 2021-51 I.R.B. 887
2021-54, 2021-52 I.R.B. 903

Revenue Rulings:
2021-12, 2021-27 I.R.B. 1
2021-13, 2021-30 I.R.B. 152
2021-14, 2021-31 I.R.B. 164
2021-19, 2021-42 I.R.B. 470
2021-15, 2021-35 I.R.B. 331
2021-16, 2021-36 I.R.B. 359
2021-17, 2021-37 I.R.B. 362
2021-18, 2021-40 I.R.B. 447
2021-21, 2021-44 I.R.B. 704
2021-22, 2021-47 I.R.B. 726
2021-23, 2021-49 I.R.B. 779
2021-24, 2021-50 I.R.B. 850
2021-20, 2021-51 I.R.B. 875

Treasury Decisions:
9951, 2021-30 I.R.B. 25
9952, 2021-39 I.R.B. 428
9953, 2021-39 I.R.B. 430
9956, 2021-41 I.R.B. 449
9957, 2021-41 I.R.B. 452
9955, 2021-42 I.R.B. 471
9958, 2021-49 I.R.B. 781

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.
1

December 27, 2021

ii

Bulletin No. 2021–52

Finding List of Current Actions on
Previously Published Items1
Bulletin 2021–52

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.
1

Bulletin No. 2021–52

iii

December 27, 2021

Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

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

We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A26e914adfd9a096e. Public record. Not legal advice.