# Bulletin No. 2025–36

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## Record

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

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2025–36
September 2, 2025

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

ADMINISTRATIVE, INCOME TAX
REG-108822-25, page 361.

The proposed regulations modify information reporting obligations with respect to sales or exchanges of certain interests in partnerships owning inventory or unrealized receivables. Specifically, the proposed regulations would eliminate
a regulatory requirement that partnerships furnish partners
that bought or sold interests in the partnership certain computational information by January 31 of the year following the
calendar year in which the sale or exchange occurred. As a
result, the proposed regulations would result in partnerships
having additional time (generally, until the due date of the
partnership’s return) to compute and furnish such information.

EMPLOYMENT TAX
Notice 2025-43, page 356.

This notice sets forth updates on the corporate bond
monthly yield curve, the corresponding spot segment
rates for July 2025 used under § 417(e)(3)(D), the
24-month average segment rates applicable for August
2025, and the 30-year Treasury rates, as reflected by
the application of § 430(h)(2)(C)(iv).

EXEMPT ORGANIZATIONS
Announcement 2025-24, page 359.

The Internal Revenue Service has revoked its determination that Foundation for Those With Special Needs qualifies as an organization described in sections 501(c)(3)
and 170(c)(2) of the Internal Revenue Code of 1986. The
revocation is effective January 1, 2026.

Finding Lists begin on page ii.

Announcement 2025-25, page 360.

Revocation of IRC 501(c)(3) Organizations for failure to meet
the code section requirements. Contributions made to the
organizations by individual donors are no longer deductible
under IRC 170(b)(1)(A).

INCOME TAX
Notice 2025-42, page 351.

This notice provides guidance regarding beginning of construction for qualified wind and solar facilities under §§ 45Y
and 48E, as amended by Public Law 119-21, 139 Stat. 72
(July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA). Sections 70512(a) and 70513(a) of the
OBBBA add new §§ 45Y(d)(4) and 48E(e)(4), respectively, to
the Code which terminate the § 45Y credit and § 48E credit,
respectively, for applicable wind and solar facilities placed
in service after December 31, 2027. Sections 70512(l)(4)
and 70513(g)(5) of the OBBBA provide that the amendments
made by §§ 70512(a) and 70513(a) of the OBBBA, respectively, apply to facilities the construction of which begins
after the date which is 12 months after the date of enactment of the OBBBA (July 4, 2026). This notice provides new
“beginning of construction” guidance, consistent with Executive Order 14315, 90 FR 30821 (July 7, 2025), to strictly
enforce when construction of an “applicable wind facility” or
“applicable solar facility” (each as defined in section 2.02(1)
of the notice) has begun solely for purposes of determining
whether such facility is subject to credit termination provisions added to §§ 45Y and 48E of the Code by §§ 70512
and 70513 of the OBBBA.

Rev. Rul. 2025-17, page 349.

Federal rates; adjusted federal rates; adjusted federal longterm rate, and the long-term tax exempt rate. For purposes
of sections 382, 1274, 1288, 7872 and other sections of
the Code, tables set forth the rates for September 2025.

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.

September 2, 2025 

Bulletin No. 2025–36

Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also, Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)

Rev. Rul. 2025-17
This revenue ruling provides various prescribed rates for federal income

AFR
110% AFR
120% AFR
130% AFR
AFR
110% AFR
120% AFR
130% AFR
150% AFR
175% AFR
AFR
110% AFR
120% AFR
130% AFR

Short-term adjusted AFR
Mid-term adjusted AFR
Long-term adjusted AFR

Bulletin No. 2025–36

tax purposes for September 2025 (the
current month). Table 1 contains the
short-term, mid-term, and long-term
applicable federal rates (AFR) for the
current month for purposes of section
1274(d) of the Internal Revenue Code.
Table 2 contains the short-term, midterm, and long-term adjusted applicable federal rates (adjusted AFR) for the
current month for purposes of section
1288(b). Table 3 sets forth the adjusted
federal long-term rate and the longterm tax-exempt rate described in section 382(f). Table 4 contains the appro-

priate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service
after July 30, 2008, shall not be less
than 9%. Finally, Table 5 contains the
federal rate for determining the present
value of an annuity, an interest for life
or for a term of years, or a remainder or
a reversionary interest for purposes of
section 7520.

REV. RUL. 2025-17 TABLE 1
Applicable Federal Rates (AFR) for September 2025
Period for Compounding
Annual
Semiannual
Quarterly
Short-term
4.00%
3.96%
3.94%
4.41%
4.36%
4.34%
4.81%
4.75%
4.72%
5.22%
5.15%
5.12%
Mid-term
4.04%
4.00%
3.98%
4.45%
4.40%
4.38%
4.86%
4.80%
4.77%
5.27%
5.20%
5.17%
6.09%
6.00%
5.96%
7.12%
7.00%
6.94%
Long-term
4.83%
4.77%
4.74%
5.32%
5.25%
5.22%
5.80%
5.72%
5.68%
6.30%
6.20%
6.15%

Annual
3.03%
3.06%
3.65%

REV. RUL. 2025-17 TABLE 2
Adjusted AFR for September 2025
Period for Compounding
Semiannual
3.01%
3.04%
3.62%

349

Quarterly
3.00%
3.03%
3.60%

Monthly
3.93%
4.32%
4.70%
5.10%
3.97%
4.36%
4.75%
5.14%
5.93%
6.90%
4.72%
5.19%
5.65%
6.12%

Monthly
2.99%
3.02%
3.59%

September 2, 2025

REV. RUL. 2025-17 TABLE 3
Rates Under Section 382 for September 2025
Adjusted federal long-term rate for the current month
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal
long-term rates for the current month and the prior two months.)

3.65%
3.71%

REV. RUL. 2025-17 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for September 2025
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after
July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit
8.03%
Appropriate percentage for the 30% present value low-income housing credit
3.44%
REV. RUL. 2025-17 TABLE 5
Rate Under Section 7520 for September 2025
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest

Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2025. See Rev. Rul. 2025-17, page 349.

Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2025. See Rev. Rul. 2025-17, page 349.

Section 382.—Limitation
on Net Operating Loss
Carryforwards and
Certain Built-In Losses
Following Ownership
Change
The adjusted applicable federal long-term rate
is set forth for the month of September 2025. See
Rev. Rul. 2025-17, page 349.

Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2025. See Rev. Rul. 2025-17, page 349.

Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of September 2025. See Rev.
Rul. 2025-17, page 349.

Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2025. See Rev. Rul. 2025-17, page 349.

4.80%

Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2025. See Rev. Rul. 2025-17, page 349.

Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of September 2025. See Rev. Rul. 2025-17, page 349.

Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of September 2025. See Rev.
Rul. 2025-17, page 349.

Section 7872.—Treatment
of Loans With BelowMarket Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2025. See Rev. Rul. 2025-17, page 349.

September 2, 2025

350

Bulletin No. 2025–36

Part III
Beginning of Construction
Requirements for Purposes
of the Termination of Clean
Electricity Production
Credits and Clean
Electricity Investment
Credits for Applicable Wind
and Solar Facilities
Notice 2025-42
SECTION 1. PURPOSE
This notice provides guidance, consistent with Executive Order 14315 of July
7, 2025, Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled
Energy Sources, 90 F.R. 30821 (Executive Order 14315), regarding when construction of an applicable wind facility or
applicable solar facility (each as defined
in section 2.02 of this notice) has begun
for purposes of determining whether
such facility is subject to credit termination provisions added to §§ 45Y and 48E
of the Internal Revenue Code (Code)1
by §§ 70512 and 70513 of Public Law
119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful
Bill Act (OBBBA). Section 70512(a)
and (l)(4) of the OBBBA terminates the
clean electricity production credit determined under § 45Y (§ 45Y credit), and
§ 70513(a) and (g)(5) of the OBBBA terminates the clean electricity investment
credit determined under § 48E (§ 48E
credit), in the case of an applicable wind
facility or applicable solar facility that
is placed in service after December 31,
2027 (credit termination date). The credit
termination date applies to applicable
wind and solar facilities the construction of which begins after July 4, 2026
(beginning of construction deadline), the
date that is 12 months after the date of
enactment of the OBBBA.

SECTION 2. BACKGROUND
.01 Overview of pre-OBBBA §§ 45Y
and 48E.
Sections 45Y and 48E were added to
the Code by §§ 13701(a) and 13702(a),
respectively, of Public Law 117-169, 136
Stat. 1818, 1982 (August 16, 2022), commonly known as the Inflation Reduction
Act of 2022. The § 45Y credit is determined with respect to electricity produced
by a taxpayer at a “qualified facility” and
either sold by the taxpayer to an unrelated
party during the taxable year or, if the
facility is equipped with a metering device
which is owned or operated by an unrelated person, sold, consumed, or stored by
the taxpayer during the taxable year. The
§ 48E credit is determined with respect
to a taxpayer’s “qualified investment” in
a qualified facility. A taxpayer’s qualified
investment in a qualified facility is determined with respect to the taxpayer’s basis
in “qualified property” placed in service
by the taxpayer that is part of the qualified facility as well as expenditures paid
or incurred for certain qualified interconnection property.
Sections 45Y(b)(1)(A) and 48E(b)(3)
(A) define a “qualified facility” for purposes of §§ 45Y and 48E, respectively,
as a facility which is used for the generation of electricity, which is placed in
service after December 31, 2024, and for
which the greenhouse gas emissions rate
(for § 45Y) or anticipated greenhouse gas
emissions rate (for § 48E) is not greater
than zero. The Department of the Treasury
(Treasury Department) and the Internal
Revenue Service (IRS) published final
regulations under §§ 45Y and 48E on
January 15, 2025 (90 FR 4006). Sections
1.45Y-2 and 1.48E-2 clarify the definition
of a “qualified facility” for purposes of
§§ 45Y and 48E, respectively.
Section 45Y(b)(2)(C)(i) requires that
the Secretary of the Treasury or the Secretary’s delegate annually publish a table that
sets forth the greenhouse gas emissions

rates for types or categories of facilities,
which a taxpayer must use for purposes
of § 45Y. The Treasury Department and
the IRS published the initial annual table
required by § 45Y(b)(2)(C)(i) in Revenue
Procedure 2025-14, 2025-7 I.R.B. 770.
That table lists both wind facilities and
solar facilities as having a greenhouse gas
emissions rate of not greater than zero.
As noted in section 2.02 of Notice
2022-61, 87 FR 73580, 2022-52 I.R.B.
560, the IRS has issued several notices,
collectively referred to in this notice as
the “IRS Notices,”2 which provide that
taxpayers may establish the beginning of
construction using the “Physical Work
Test” or the “Five Percent Safe Harbor,”
and may satisfy either the “Continuity
Requirement” or the “Continuity Safe
Harbor,” with respect to the credits determined under §§ 45, 45Q, and 48.
Section 5 of Notice 2022-61 provides
guidance, in part, to determine when construction begins for purposes of the credit
determined under §§ 45Y and 48E. Section 5 of Notice 2022-61 states that principles similar to those under Notice 2013-29
regarding the Physical Work Test and Five
Percent Safe Harbor apply, and taxpayers
satisfying either test will be considered
to have begun construction. Section 5 of
Notice 2022-61 additionally provides, in
part, that principles similar to those provided in the IRS Notices regarding the
Continuity Requirement and the Continuity Safe Harbor apply for purposes of
§§ 45Y and 48E, and that taxpayers may
rely on the Continuity Safe Harbor provided the facility is placed in service no
more than four calendar years after the
calendar year during which construction
began.
.02 Overview of OBBBA Changes to
§§ 45Y and 48E.
Sections 70512(a) and 70513(a) of
the OBBBA added new §§ 45Y(d)(4)
and 48E(e)(4), respectively, to the Code.
These new Code provisions terminate the
§ 45Y credit and the § 48E credit, respec-

Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).
See Notice 2013-29, 2013-20 I.R.B. 1085; clarified by Notice 2013-60, 2013-44 I.R.B. 431; clarified and modified by Notice 2014-46, 2014-36 I.R.B. 520; updated by Notice 2015-25,
2015-13 I.R.B. 814; clarified and modified by Notice 2016-31, 2016-23 I.R.B. 1025; updated, clarified, and modified by Notice 2017-04, 2017-4 I.R.B. 541; Notice 2018-59, 2018-28 I.R.B.
196; modified by Notice 2019-43, 2019-31 I.R.B. 487; modified by Notice 2020-41, 2020-25 I.R.B. 954; clarified and modified by Notice 2021-5, 2021-3 I.R.B. 479; clarified and modified
by Notice 2021-41, 2021-29 I.R.B. 17; Notice 2020-12, 2020-11 I.R.B. 495.
1
2

Bulletin No. 2025–36

351

September 2, 2025

tively, for applicable wind and solar facilities placed in service after December 31,
2027. For purposes of this notice, the term
“applicable wind facility” means an applicable facility as provided in §§ 45Y(d)(4)
(B)(i) and 48E(e)(4)(B)(i) (except as provided in § 48E(e)(4)(C) relating to energy
storage technology) and “applicable solar
facility” means an applicable facility
as provided in §§ 45Y(d)(4)(B)(ii) and
48E(e)(4)(B)(ii) (except as provided in
§ 48E(e)(4)(C)). Sections 70512(l)(4) and
70513(g)(5) of the OBBBA provide that
the amendments made by §§ 70512(a)
and 70513(a) of the OBBBA, respectively, apply to facilities the construction
of which begins after the date which is 12
months after the date of enactment of the
OBBBA (that is, July 4, 2026).
.03 Executive Order 14315.
Section 3(a) of Executive Order 14315
directs the Secretary of the Treasury,
within 45 days following enactment of
the OBBBA, to take action he deems necessary and appropriate to strictly enforce
the termination provisions with respect
to the § 45Y credit and the § 48E credit
for wind and solar facilities. Such action
includes issuing new and revised guidance
for applicable wind and solar facilities to
ensure that policies concerning “beginning of construction” are not circumvented, including guidance to prevent the
artificial acceleration or manipulation of
eligibility and to restrict the use of broad
safe harbors unless a substantial portion
of an applicable wind or solar facility has
been built.3
The Treasury Department and the
IRS have determined that the guidance
contained in this notice is necessary and
appropriate to properly enforce the credit
termination date for applicable wind
and solar facilities. Congress provided a
beginning of construction deadline after
which the new credit termination date
for applicable wind and solar facilities
applies. This notice provides beginning
of construction guidance to prevent taxpayers from circumventing the statutory

credit termination date, prevent the artificial manipulation of eligibility for the
§ 45Y credit and § 48E credit for applicable wind and solar facilities, and ensure
that a substantial portion of any applicable wind or solar facility not subject
to the credit termination date is built by
the beginning of construction deadline.
Accordingly, except as provided in section 6 of this notice, the Five Percent Safe
Harbor provided under the IRS notices is
not available for purposes of determining
whether an applicable wind or solar facility has met the beginning of construction
deadline and, thus, is not subject to the
credit termination date.
SECTION 3. METHOD FOR
ESTABLISHING BEGINNING OF
CONSTRUCTION
.01 In general. For purposes of the
beginning of construction deadline in
§§ 70512(l)(4) and 70513(g)(5) of the
OBBBA, a taxpayer may establish that
construction has begun before July 5,
2026, by satisfying the Physical Work Test
as described in section 3.02 of this notice.
Except as provided in section 6 of this
notice, the Physical Work Test described
in section 3.02 of this notice is the sole
method that a taxpayer may use for these
purposes. The Physical Work Test also
requires that a taxpayer maintain a continuous program of construction (Continuity
Requirement). Section 4 of this notice
discusses the Continuity Requirement
and section 4.04 of this notice provides a
safe harbor for satisfying this requirement
(Continuity Safe Harbor).
.02 Physical Work Test. Construction of
an applicable wind or solar facility begins
when physical work of a significant nature
begins. Work performed by the taxpayer
and work performed for the taxpayer by
other persons under a binding written contract that is entered into prior to the manufacture, construction, or production of the
applicable wind or solar facility for use
by the taxpayer in the taxpayer’s trade or

business (or for the taxpayer’s production
of income) is taken into account in determining whether construction has begun.
See section 5.01 of this notice. Whether
physical work of a significant nature has
begun with respect to an applicable wind
or solar facility before July 5, 2026, will
depend on the relevant facts and circumstances.
.03 Physical work of a significant
nature. The Physical Work Test requires
that physical work of a significant nature
be performed. This test focuses on the
nature of the work performed, not the
amount or the cost. Provided that physical
work performed is of a significant nature,
there is no fixed minimum amount of
work or monetary or percentage threshold
required to satisfy the Physical Work Test.
Both off-site and on-site work (performed
either by the taxpayer or by another person
under a binding written contract) may be
taken into account for purposes of demonstrating that physical work of a significant
nature has begun.
(1) Off-site physical work of a significant nature. Generally, off-site physical
work of a significant nature may include
the manufacture of components, mounting equipment, support structures such as
racks and rails, inverters, and transformers
and other power conditioning equipment.
(2) On-site physical work of a significant nature. The following non-exclusive
list of examples is intended to illustrate
what constitutes on-site physical work of
a significant nature for applicable wind
and solar facilities:
(a) Applicable wind facility. On-site
physical work of a significant nature
begins with the beginning of the excavation for the foundation, the setting
of anchor bolts into the ground, or the
pouring of the concrete pads of the foundation. If the applicable wind facility’s
wind turbines and tower units are to be
assembled on-site from components
manufactured off-site by a person other
than the taxpayer and delivered to the
site, physical work of a significant nature

In addition, § 3(b) of Executive Order 14315 directs the Secretary of the Treasury, within 45 days following enactment of the OBBBA, to take prompt action as the Secretary of the Treasury
deems appropriate and consistent with applicable law to implement the enhanced “Foreign Entity of Concern” restrictions in the OBBBA (also known as “Prohibited Foreign Entities”).
Section 70512 of the OBBBA added those new restrictions regarding certain foreign entities in order to qualify for the § 45Y credit and the § 48E credit, among others, and included separate
beginning of construction rules for those new provisions. See § 7701(a)(51) and (52) of the Code. The guidance in this notice is not intended to address the beginning of construction rules
for the purposes of those foreign entity restrictions. The Treasury Department and the IRS are currently drafting additional guidance as is necessary and appropriate to implement those
restrictions, as enacted by the OBBBA.
3

September 2, 2025

352

Bulletin No. 2025–36

begins when the manufacture of the components begins at the off-site location,
but only if: (i) the manufacturer’s work is
done pursuant to a binding written contract (as described in section 5.01(1) of
this notice); and (ii) these components
are not held in the manufacturer’s inventory (as described in section 3.05 of this
notice). If a manufacturer produces components for multiple applicable facilities, a reasonable method must be used
to associate individual components with
particular applicable facilities.
(b) Applicable solar facility. On-site
physical work of a significant nature may
include the installation of racks or other
structures to affix photovoltaic (PV) panels, collectors, or solar cells to a site.
.04 Preliminary activities. Physical
work of a significant nature does not
include preliminary activities, even if
the cost of those preliminary activities is
properly included in the depreciable basis
of the applicable wind or solar facility.
Generally, preliminary activities for applicable wind or solar facilities include, but
are not limited to:
(a) planning or designing;
(b) securing financing;
(c) exploring;
(d) researching;
(e) conducting mapping and modeling
to assess a resource;
(f) obtaining permits and licenses;
(g) conducting geophysical, gravity,
magnetic, seismic and resistivity surveys;
(h) conducting environmental and
engineering studies;
(i) clearing a site;
(j) conducting test drilling to determine soil condition (including to test the
strength of a foundation);
(k) excavating to change the contour of
the land (as distinguished from excavation
for a foundation); and
(l) removing existing foundations, turbines, and towers, solar panels, or any
components that will no longer be part
of the applicable wind or solar facility
(including those on or attached to building
structures).
.05 Inventory. Physical work of a significant nature does not include work
(performed either by the taxpayer or by
another person under a binding written
contract) to produce a component/part of
an applicable wind or solar facility that is

Bulletin No. 2025–36

either in existing inventory or is normally
held in inventory by one selling the component/part to the taxpayer.
SECTION 4. CONTINUITY
REQUIREMENT
.01 Continuous program of construction. A taxpayer will satisfy the Continuity Requirement of this section 4 only if
the taxpayer maintains a continuous program of construction with respect to an
applicable wind or solar facility. A continuous program of construction involves
continuing physical work of a significant
nature (as described in section 3.03 of this
notice). Unless the Continuity Safe Harbor provided in section 4.04 of this notice
applies, whether a taxpayer maintains a
continuous program of construction to
satisfy the Continuity Requirement will
be determined by the relevant facts and
circumstances.
.02 Excusable disruptions to continuous program of construction. Certain
disruptions in a taxpayer’s continuous
construction to advance towards completion of an applicable wind or solar facility
that are beyond the taxpayer’s control will
not be considered as indicating that a taxpayer has failed to satisfy the Continuity
Requirement.
The following is a non-exclusive list
of construction disruptions that will not
be considered as indicating that a taxpayer has failed to satisfy the Continuity
Requirement:
(a) delays due to severe weather conditions;
(b) delays due to natural disasters;
(c) delays in obtaining permits or
licenses from federal, state, local, or
Indian tribal governments, including,
but not limited to, delays in obtaining permits or licenses from the Federal Energy Regulatory Commission
(FERC), the Environmental Protection
Agency (EPA), the Bureau of Land
Management (BLM), and the Federal
Aviation Agency (FAA);
(d) delays at the written request of
a federal, state, local, or Indian tribal
government regarding matters of public
safety, security, or similar concerns;
(e) interconnection-related delays,
such as those relating to the completion
of construction on a new transmission or

353

distribution line or necessary transmission
or distribution upgrades to resolve grid
congestion issues that may be associated
with an applicable wind or solar facility’s
planned interconnection;
(f) delays in the manufacture of custom
components;
(g) delays due to labor stoppages;
(h) delays due to the inability to obtain
specialized equipment of limited availability;
(i) delays due to the presence of endangered species;
(j) financing delays; and
(k) delays due to supply shortages.
.03 Timing of excusable disruption
determination. In the case of a single
project comprised of multiple facilities
(as described in section 5.02(2) of this
notice), whether an excusable disruption
has occurred for purposes of the Continuity Requirement must be determined
in the calendar year during which the last
of multiple facilities is placed in service.
In the case of a single applicable wind or
solar facility, whether an excusable disruption has occurred for purposes of the
Continuity Requirement must be determined in the calendar year during which
the applicable wind or solar facility is
placed in service.
.04 Continuity safe harbor: deemed
satisfaction of continuity requirement.
Except as provided in this section 4.04,
if a taxpayer places an applicable wind
or solar facility in service by the end of
a calendar year that is no more than four
calendar years after the calendar year
during which construction of the applicable wind or solar facility began (Continuity Safe Harbor Deadline), the applicable
wind or solar facility will be considered
to satisfy the Continuity Requirement
(Continuity Safe Harbor). The excusable disruption rules in section 4.02 of
this notice do not apply for purposes of
applying the Continuity Safe Harbor. If
an applicable wind or solar facility is not
placed in service before the end of the
fourth calendar year after the calendar
year during which construction of the
applicable wind or solar facility began,
whether the applicable wind or solar
facility satisfies the Continuity Requirement under the Physical Work Test will
be determined by the relevant facts and
circumstances.

September 2, 2025

For example, if construction begins
on an applicable wind or solar facility
on August 20, 2025, and the applicable
wind or solar facility is placed in service by December 31, 2029, the applicable wind or solar facility will be considered to satisfy the Continuity Safe
Harbor. If the applicable wind or solar
facility is not placed in service before
January 1, 2030, whether the Continuity Requirement was satisfied will be
determined by the relevant facts and
circumstances.
SECTION 5. OTHER RULES
.01 Construction by contract. For
property that is manufactured, constructed, or produced for the taxpayer by
another person under a binding written
contract (as described in section 5.01(1)
of this notice), the work performed
under the contract is taken into account
in determining when physical work of a
significant nature begins, provided the
contract is entered into prior to the work
taking place.
(1) Binding written contract. A contract is binding only if it is enforceable
under local law against the taxpayer or a
predecessor and does not limit damages
to a specified amount (for example, by
use of a liquidated damages provision).
For this purpose, a contractual provision
that limits damages to an amount equal
to at least five percent of the total contract price will not be treated as limiting
damages to a specified amount. For additional guidance regarding the definition
of a binding contract, see § 1.168(k)-1(b)
(4)(ii)(A)-(D).
(2) Master contract. If a taxpayer
enters into a binding written contract for
a specific number of components to be
manufactured, constructed, or produced
for the taxpayer by another person (a
“master contract”), and then through a
new binding written contract (a “project
contract”) the taxpayer assigns its rights
to certain components to an affiliated
special purpose vehicle that will own the
applicable wind or solar facility for which
such property is to be used, work performed with respect to the master contract
may be taken into account in determining
when physical work of a significant nature

September 2, 2025

begins with respect to the applicable wind
or solar facility.
.02 Qualified facility – (1) In general.
Physical work of a significant nature with
respect to an applicable wind or solar
facility must be performed with respect to
property included in a qualified facility, as
defined in § 1.45Y-2(b) or § 1.48E-2(d), as
applicable.
(2) Single project. Solely for purposes
of determining whether construction of an
applicable wind or solar facility has begun
for purposes of this notice, multiple facilities that are operated as part of a single
project (along with any property, such as a
computer control system, that serves some
or all such facilities) will be treated as a
single applicable wind or solar facility.
Whether multiple facilities are operated as
part of a single project will depend on the
relevant facts and circumstances. Factors
indicating that multiple facilities are operated as part of a single project include, but
are not limited to:
(a) The facilities are owned by a single
legal entity;
(b) The facilities are constructed on
contiguous pieces of land;
(c) The facilities are described in a
common power purchase agreement or
agreements;
(d) The facilities have a common intertie;
(e) The facilities share a common substation;
(f) The facilities are described in one
or more common environmental or other
regulatory permits;
(g) The facilities were constructed pursuant to a single master construction contract; and
(h) The construction of the facilities
was financed pursuant to the same loan
agreement.
(3) Timing of single project determination. The determination of whether
multiple facilities are operated as part of
a single project and are therefore treated
as a single applicable wind or solar facility for purposes of this notice must be
made in the calendar year during which
the last of the multiple facilities is placed
in service.
.03 Property integral to the applicable wind or solar facility. Only physical
work of a significant nature on tangible

354

personal property and other tangible
property used as an integral part of the
activity performed by the applicable
wind or solar facility will be considered
for purposes of determining whether a
taxpayer has begun construction of an
applicable wind or solar facility. This
includes property integral to the production of electricity, but does not include
property used for electrical transmission.
See §§ 1.45Y-2(b)(3) and 1.48E-2(d)(3)
for additional descriptions of property
integral to a qualified facility.
.04 Application of 80/20 rule to retrofitted applicable wind or solar facilities
– (1) In general. A retrofitted applicable
wind or solar facility may qualify as originally placed in service even though it contains some used components of property,
provided the fair market value of the used
components of property is not more than
20 percent of the applicable wind or solar
facility’s total value (the cost of the new
components of property plus the value of
the used components of property) (80/20
Rule). See §§ 1.45Y-4(d) and 1.48E-4(c).
In the case of a single project comprised
of multiple facilities (as described in section 5.02(2) of this notice), the 80/20 Rule
is applied to each facility comprising the
single project. For purposes of the 80/20
Rule, the cost of a new applicable wind or
solar facility includes all properly capitalized costs of the new applicable wind or
solar facility.
(2) Beginning of construction. In situations where the 80/20 Rule applies,
the Physical Work Test applies only with
respect to the work performed on, or
amounts paid or incurred for, new components of property used to retrofit an existing applicable wind or solar facility. The
total cost of the applicable wind or solar
facility does not include the cost of land
(including lease payments) or any property that is not part of the applicable wind
or solar facility, as described in section
5.03 of this notice.
.05 Transfer of an applicable wind or
solar facility – (1) In general. A taxpayer
may claim either the § 45Y credit with
respect to electricity produced by such
taxpayer at an applicable wind or solar
facility or the § 48E credit with respect to
the taxpayer’s qualified investment with
respect to an applicable wind or solar

Bulletin No. 2025–36

facility. Neither § 45Y nor § 48E requires
the taxpayer to own the applicable wind
or solar facility at the time construction
began on the applicable wind or solar
facility. Accordingly, except as provided
in section 5.05(3) of this notice, a fully
or partially developed applicable wind or
solar facility may be transferred without
losing its qualification under the Physical
Work Test for purposes of the § 45Y credit
or the § 48E credit.
(2) Relocation of equipment by a taxpayer. A taxpayer may begin construction
of an applicable wind or solar facility with
the intent to develop the applicable wind
or solar facility at a certain site, and thereafter transfer components of property of
the applicable wind or solar facility to a
different site, complete its development,
and place it in service. The work performed or the amounts paid or incurred
prior to the site transfer by such a taxpayer
may be taken into account for purposes of
determining when the applicable wind or
solar facility satisfies the Physical Work
Test.
(3) Transfers of equipment between
unrelated parties. In the case of a transfer consisting solely of tangible personal
property (including contractual rights to
such property under a binding written
contract) to a transferee not related (within
the meaning of §§ 197(f)(9)(C) and 1.1972(h)(6)) to the transferor, any work performed or amounts paid or incurred by the
transferor with respect to such transferred
property will not be taken into account
with respect to the transferee for purposes
of the Physical Work Test.
For example, a developer, X, intends
to develop and operate Facility A at a
location to be determined. In 2025, X
pays or incurs $60,000 to have tangible
personal property integral to Facility
A manufactured off-site pursuant to a
binding written contract. Thereafter, X
incurs no further development costs and
engages in no further development activity with respect to Facility A. In January
2026, X sells the tangible personal property to another developer, Y, a party unrelated to X. Y is developing and intends to
operate Facility B, located on a parcel of
land owned by Y. Y incorporates the tangible personal property acquired from X
into Facility B. In October 2026, Y places

Bulletin No. 2025–36

Facility B in service on the parcel of land.
The total cost of Facility B is $1,000,000.
Work performed for X in 2025 on the tangible personal property cannot be taken
into account by Y for purposes of satisfying the Physical Work Test with respect
to Facility B, because X and Y are not
related persons (within the meaning
of §§ 197(f)(9)(C) and 1.197-2(h)(6))
as described in section 5.05(3) of this
notice. However, if without regard to the
tangible personal property acquired from
X, Y has otherwise satisfied the Physical
Work Test with respect to Facility B in
2025, Y will be considered to have begun
construction in 2025.
SECTION 6. FIVE PERCENT SAFE
HARBOR FOR LOW OUTPUT
SOLAR FACILITIES
.01 In general. In the case of a low
output solar facility (as defined in section
6.02 of this notice), a taxpayer may establish that construction has begun before
July 5, 2026, by satisfying either the Physical Work Test described in section 3.02 of
this notice, or by applying principles similar to those provided in section 5 of Notice
2013-29 regarding the Five Percent Safe
Harbor (as described in section 2.02(2)(ii)
of Notice 2022-61).
.02 Low output solar facility.
(1) Definition. A low output solar facility is an applicable solar facility that has
maximum net output of not greater than
1.5 megawatt (MW) (as measured in
alternating current) (1.5-Megawatt Maximum). For purposes of the 1.5-Megawatt
Maximum, output is measured at the level
of the qualified facility.
(2) Property included in an applicable solar facility. An applicable solar
facility includes a unit of a qualified
solar facility, which, in turn, includes all
functionally interdependent components
of property owned by the taxpayer that
are operated together and that can operate apart from other property to produce
electricity. Components of property are
functionally interdependent if the placing in service of each of the components
is dependent upon the placing in service
of each of the other components to produce electricity. A qualified solar facility also includes property owned by the

355

taxpayer that is an integral part of the
qualified solar facility. A component of
property owned by the taxpayer is an
integral part of the qualified facility if
it is used directly in the intended function of the facility and is essential to
the completeness of such function. See
§§ 1.45Y-2(b)(3) and 1.48E-2(d)(3) for
additional descriptions of property integral to a qualified facility.
.03 Measurement of output.
(1) In general. The maximum net
output of an applicable solar facility is
measured only by nameplate generating
capacity (in alternating current) of the
unit of qualified facility (as described
in §§ 1.45Y-2(b)(2) and 1.48E-2(d)(2)),
which does not include the nameplate
capacity of any component that is an
integral part (as described in §§ 1.45Y2(b)(3) and 1.48E-2(d)(3)) of the applicable solar facility, at the time the applicable solar facility is placed in service.
The nameplate generating capacity of
the applicable solar facility is measured
independently from any other applicable solar facility that shares an integral
part with the applicable solar facility.
Notwithstanding this rule, the nameplate
generating capacity of two or more applicable solar facilities having integrated
operations are measured in the aggregate
for purposes of the 1.5-Megawatt Maximum.
(2) Nameplate capacity. For purposes of section 6.02(1) of this notice,
the determination of whether a qualified
facility has a maximum net output of not
greater than 1.5 MW (as measured in
alternating current) is based on the nameplate capacity. The nameplate capacity
for purposes of the 1.5-Megawatt Maximum is the maximum electrical generating output in megawatts that the unit of
qualified facility is capable of producing
on a steady state basis and during continuous operation under standard conditions, as measured by the manufacturer
and consistent with the definition of
nameplate capacity provided in 40 CFR
96.202. If applicable, taxpayers should
use the International Standard Organization (ISO) conditions to measure the
maximum electrical generating output of
a unit of qualified facility. For applicable
solar facilities that generate electricity

September 2, 2025

in direct current, a taxpayer determines
whether an applicable solar facility has a
maximum net output of not greater than
1.5 MW (in alternating current) by using
the lesser of:
(a) The sum of the nameplate generating capacities within the applicable solar
facility in direct current, which is deemed
the nameplate generating capacity of the
unit of applicable solar facility in alternating current; or
(b) The nameplate capacity of the first
component of the applicable solar facility
that inverts the direct current electricity
into alternating current.
(3) Integrated operations. For the purposes of the 1.5-Megawatt Maximum, an
applicable solar facility is treated as having integrated operations with one or more
other applicable solar facilities of the same
technology type if the facilities are:
(a) Owned by the same or related taxpayers;
(b) Placed in service in the same taxable year; and
(c) Transmit electricity generated by
the facilities through the same point of
interconnection or, if the facilities are not
grid-connected or are delivering electricity directly to an end user behind a utility
meter, are able to support the same end
user.
(4) Related taxpayers. For purposes
of section 6.03(3) of this notice, the term
“related taxpayers” means members of
a group of trades or businesses that are
under common control (as defined in
§ 1.52-1(b)). Related taxpayers are treated
as one taxpayer in determining whether an
applicable facility has integrated operations.
SECTION 7. EFFECTIVE DATE
This notice is effective for applicable
wind and solar facilities the construction
of which did not begin (as determined
under section 5 of Notice 2022-61) prior
to September 2, 2025.

SECTION 8. EFFECT ON OTHER
DOCUMENTS

YIELD CURVE AND SEGMENT
RATES

Except as provided in sections 6 and 7
of this notice, this notice modifies Notice
2022-61 to provide that section 5 of such
notice is not applicable for determining
whether construction of an applicable
wind or solar facility began prior to the
beginning of construction deadline in
§§ 70512(l)(4) and 70513(g)(5) of the
OBBBA.

Section 430 specifies the minimum
funding requirements that apply to single-employer plans (except for CSEC plans
under § 414(y)) pursuant to § 412. Section
430(h)(2) specifies the interest rates that
must be used to determine a plan’s target
normal cost and funding target. Under this
provision, present value is generally determined using three 24-month average interest rates (“segment rates”), each of which
applies to cash flows during specified periods. To the extent provided under § 430(h)
(2)(C)(iv), these segment rates are adjusted
by the applicable percentage of the 25-year
average segment rates for the period ending
September 30 of the year preceding the calendar year in which the plan year begins.1
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 1.430(h)(2)-1(d) provides
rules for determining the monthly corporate bond yield curve,2 and § 1.430(h)
(2)-1(c) provides rules for determining
the 24-month average corporate bond
segment rates used to compute the target normal cost and the funding target.
Consistent with the methodology specified in § 1.430(h)(2)-1(d), the monthly
corporate bond yield curve derived from
July 2025 data is in Table 2025-7 at the
end of this notice. The spot first, second,
and third segment rates for the month of
July 2025 are, respectively, 4.38, 5.41,
and 6.13.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates. Those percentages are
95% and 105% for plan years beginning
in 2024 and 2025. For this purpose, any
25-year average segment rate that is less
than 5% is deemed to be 5%. The 25-year

SECTION 9. DRAFTING
INFORMATION
The principal author of this notice is
the Office of Associate Chief Counsel
(Energy, Credits, and Excise Tax); however, other personnel from the Treasury
Department and the IRS participated in
its development. For further information
regarding this notice contact (202) 3176853 (not a toll-free number).

Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2025-43
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month
average segment rates under § 430(h)
(2) of the Internal Revenue Code. In
addition, this notice provides guidance
as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)
(II) as in effect for plan years beginning
before 2008 and the 30-year Treasury
weighted average rate under § 431(c)
(6)(E)(ii)(I).

Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
2
For months before February 2024, the monthly corporate bond yield curve was determined in accordance with Notice 2007-81, 2007-44 I.R.B. 899. Section 1.430(h)(2)-1(d) generally adopts
the methodology for determining the monthly corporate bond yield curve under Notice 2007-81 but includes two enhancements to take into account subsequent changes in the bond market.
Those enhancements are described in the preamble to TD 9986 (89 FR 2127).
1

September 2, 2025

356

Bulletin No. 2025–36

average segment rates for plan years
beginning in 2024 and 2025 were published in Notice 2023-66, 2023-40 I.R.B.
992 and Notice 2024-67, 2024-41 I.R.B.
726, respectively.

Applicable Month
August 2025

24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate bond segment rates applicable for

August 2025 without adjustment for
the 25-year average segment rate limits
are as follows:

24-Month Average Segment Rates Without 25-Year Average Adjustment
First Segment
Second Segment
Third Segment
4.86
5.36
5.67

The adjusted 24-month average segment rates set forth in the chart below
reflect § 430(h)(2)(C)(iv) of the Code. The

24-month averages applicable for August
2025, adjusted to be within the applicable
minimum and maximum percentages of

the corresponding 25-year average segment rates in accordance with § 430(h)(2)
(C)(iv) of the Code, are as follows:

Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning In

Applicable Month

First Segment

Second Segment

Third Segment

2024

August 2025

4.86

5.36

5.67

2025

August 2025

4.86

5.31

5.67

Section 431 specifies the minimum
funding requirements that apply to multiemployer plans pursuant to § 412. Section
431(c)(6)(B) specifies a minimum amount
for the full-funding limitation described in
§ 431(c)(6)(A), based on the plan’s current
liability. Section 431(c)(6)(E)(ii)(I) pro-

vides that the interest rate used to calculate
current liability for this purpose must be
no more than 5 percent above and no more
than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period
ending on the last day before the beginning
of the plan year. Notice 88-73, 1988-2 C.B.
383, provides guidelines for determining
the weighted average interest rate. The rate

of interest on 30-year Treasury securities
for July 2025 is 4.92 percent. The Service
determined this rate as the average of the
daily determinations of yield on the 30-year
Treasury bond maturing in May 2055. For
plan years beginning in August 2025, the
weighted average of the rates of interest on
30-year Treasury securities and the permissible range of rates used to calculate current
liability are as follows:

For Plan Years Beginning In

Treasury Weighted Average Rates
30-Year Treasury Weighted Average

Permissible Range 90% to 105%

August 2025

4.17

3.75 to 4.38

under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Section 1.417(e)-1(d)(3) provides guidelines for determining the min-

imum present value segment rates. Pursuant to that section, the minimum present
value segment rates determined for July
2025 are as follows:

30-YEAR TREASURY SECURITIES
INTEREST RATES

MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates

Month
July 2025

Minimum Present Value Segment Rates
First Segment
Second Segment
4.38
5.41

DRAFTING INFORMATION
The principal author of this notice
is Tom Morgan of the Office of Associ-

Bulletin No. 2025–36

ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development

357

Third Segment
6.13

of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Tony Montanaro at
626-927-1475 (not toll-free number).

September 2, 2025

Table 2025-7
Monthly Yield Curve for July 2025
Derived from July 2025 Data
Maturity
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

Yield
4.44
4.38
4.33
4.30
4.30
4.32
4.35
4.39
4.45
4.51
4.58
4.65
4.72
4.80
4.88
4.95
5.02
5.09
5.16
5.22
5.28
5.33
5.39
5.44
5.49
5.53
5.57
5.61
5.65
5.68
5.71
5.74
5.77
5.80
5.82
5.84
5.86
5.88
5.90
5.91

September 2, 2025

Maturity
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

Yield
5.93
5.94
5.95
5.96
5.97
5.97
5.98
5.98
5.99
5.99
6.00
6.00
6.00
6.01
6.01
6.02
6.02
6.03
6.03
6.04
6.05
6.05
6.06
6.07
6.07
6.08
6.08
6.09
6.10
6.10
6.11
6.11
6.12
6.12
6.13
6.13
6.14
6.14
6.14
6.15

Maturity
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

Yield
6.15
6.16
6.16
6.16
6.17
6.17
6.17
6.18
6.18
6.18
6.19
6.19
6.19
6.20
6.20
6.20
6.21
6.21
6.21
6.21
6.22
6.22
6.22
6.22
6.23
6.23
6.23
6.23
6.23
6.24
6.24
6.24
6.24
6.25
6.25
6.25
6.25
6.25
6.25
6.26

358

Maturity
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

Yield
6.26
6.26
6.26
6.26
6.27
6.27
6.27
6.27
6.27
6.27
6.27
6.28
6.28
6.28
6.28
6.28
6.28
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.29
6.30
6.30
6.30
6.30
6.30
6.30
6.30
6.30
6.30
6.31
6.31
6.31
6.31
6.31
6.31

Maturity
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

Yield
6.31
6.31
6.31
6.31
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Bulletin No. 2025–36

Part IV
Deletions From Cumulative List of Organizations, Contributions to Which are
Deductible Under Section 170 of the Code
Announcement 2025-24
The Internal Revenue Service has revoked its determination that the organization listed below qualifies as an organization described
in sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986.
Generally, the IRS 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 IRS 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
January 1, 2018 and would end on the date the court first determines the organization is not described in section 170(c)(2) as more
particularly set for in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband
and wife treated as one contributor. 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.
The Following organization is no longer qualified as an organization exempt from income tax under Internal Revenue Code (the
“Code”) Section 501(a) as an organization described in Section 501(c)(3) of the Code:
NAME OF ORGANIZATION

EFFECTIVE DATE OF REVOCATION

LOCATION

1/1/2026

Orlando, FL

Foundation for Those With Special Needs

Bulletin No. 2025–36

359

September 2, 2025

Deletions From Cumulative List of Organizations, Contributions to Which are
Deductible Under Section 170 of the Code
Announcement 2025-25
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 IRS 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 IRS 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 15, 2025, and would end on the date the court first determines the organization is not described in section 170(c)(2) as more
particularly set for in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband
and wife treated as one contributor. 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.
Effective Date of Revocation

Location

John Derner Foundation

01/01/2021

Milford, IA

Second Paw Dog Rescue

01/01/2022

Abilene, TX

Second Paw Dog Rescue

01/01/2022

Jonesville, LA

Second Paw Dog Rescue

01/01/2022

Newton, MS

Second Paw Dog Rescue

01/01/2022

Knox City, TX

Second Paw Dog Rescue

01/01/2022

McCall Creek, MS

Legacy of Faith Partners

01/01/2022

Rocklin, CA

Name Of Organization

September 2, 2025

360

Bulletin No. 2025–36

Notice of Proposed
Rulemaking
Returns Relating to Sales
or Exchanges of Certain
Partnership Interests
REG-108822-25
Agency: Internal Revenue Service (IRS),
Treasury.
Action: Notice of proposed rulemaking.
Summary: This document contains proposed regulations modifying information
reporting obligations with respect to sales
or exchanges of certain interests in partnerships owning inventory or unrealized
receivables. The proposed regulations
affect partnerships.
DATES: Written or electronic comments
and requests for a public hearing must be
received by September 18, 2025.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
and requests for a public hearing electronically via the Federal eRulemaking Portal
at https://www.regulations.gov (indicate
IRS and REG-108822-25) by following
the online instructions for submitting
comments and requests for a public hearing. Requests for a public hearing must
be submitted as prescribed in the “Comments and Requests for a Public Hearing”
section. Once submitted to the Federal
eRulemaking Portal, comments cannot be
edited or withdrawn. The Department of
the Treasury (Treasury Department) and
the IRS will publish for public availability any comment submitted to the IRS’s
public docket. Send paper submissions to:
CC:PA:01:PR (REG-108822-25), Room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Jeremy Brown, (202) 3175279 (not a toll-free number); concerning the submission of comments, contact

Bulletin No. 2025–36

the Publications and Regulations Section
of the Office of Associate Chief Counsel
(Procedure and Administration) by email
at publichearings@irs.gov (preferred) or
by telephone at (202) 317-6901 (not a tollfree number).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed
amendments to the Income Tax Regulations (26 CFR part 1) under section
6050K of the Internal Revenue Code
(Code). Section 6050K(a) provides that,
except as provided in regulations prescribed by the Secretary of the Treasury
or the Secretary’s delegate (Secretary),
a partnership is required to file a return
if there is an exchange described in section 751(a) of the Code of any interest in
the partnership during any calendar year.
Section 6050K(a) also contains express
delegations of authority for the Secretary
to promulgate regulations prescribing the
information required to be disclosed on
such partnership returns, the manner in
which such returns are made, and the due
date of such returns.
Section 6031(a) of the Code provides
an express grant of authority for the Secretary to prescribe in forms or regulations
partnership reporting information required
“for the purpose of carrying out the provisions of subtitle A.”
Section 7805(a) of the Code authorizes
the Secretary to “prescribe all needful
rules and regulations for the enforcement
of [the Code], including all rules and regulations as may be necessary by reason of
any alteration of law in relation to internal
revenue.”
Background
Section 741 of the Code provides that
gain or loss recognized by a transferor
partner upon sale or exchange of a partnership interest is considered as gain or
loss from the sale or exchange of a capital
asset, except as provided in section 751.
Section 751(a) provides that the amount of
any money, or the fair market value of any
property, received by a transferor partner
in exchange for all or a part of the transferor partner’s interest in the partnership

361

attributable to (1) unrealized receivables
of the partnership, or (2) inventory items
of the partnership, will be considered as an
amount realized from the sale or exchange
of property other than a capital asset. Section 1.6050K-1(a)(4)(i) refers to a sale or
exchange to which section 751(a) applies
as a “section 751(a) exchange.”
Section 6050K(a) requires a partnership to file a return if there is a section
751(a) exchange of any interest in the
partnership during any calendar year. Section 6050K(a) further provides that the
return must state the name and address of
the transferee and transferor in the section
751(a) exchange and such other information as the Secretary may by regulations
prescribe.
Section 1.6050K-1(a)(1) generally
requires a partnership to make a separate
return using Form 8308, Report of a Sale
or Exchange of Certain Partnership Interests, with respect to each section 751(a)
exchange. Section 1.6050K-1(b) requires
the Form 8308 to include the following
information: (1) the names, addresses,
and taxpayer identification numbers of the
transferee and transferor in the exchange
and of the partnership filing the return;
(2) the date of the exchange; and (3) such
other information as may be required
by Form 8308 or its instructions. Section 1.6050K-1(f)(1) requires a partnership to file Form 8308 as an attachment to
its Form 1065, U.S. Return of Partnership
Income, for the partnership’s taxable year
that includes the last day of the calendar
year in which the section 751(a) exchange
took place.
Section 6050K(b) requires a partnership to provide certain information to
transferors and transferees that are parties
to a section 751(a) exchange on or before
January 31 of the year following the calendar year of the section 751(a) exchange.
Among other things, the information provided to each transferor and transferee
must include the information required
to be shown on the partnership’s return
under section 6050K(a) with respect to
such person.
Section 6050K(c)(1) provides that the
transferor of the partnership interest must
notify the partnership of any exchange
described in section 6050K(a). Under
section 6050K(c)(2), a partnership is
not required to make a return under sec-

September 2, 2025

tion 6050K with respect to any exchange
until the partnership is notified of such
exchange.
Section 1.6050K-1(c)(1) clarifies that
each partnership that is required to file a
Form 8308 must furnish a statement to the
transferor and transferee by the later of
(1) January 31 of the year following the
calendar year in which the section 751(a)
exchange occurs, or (2) 30 days after the
partnership receives notice of the exchange
as specified under section 6050K(c) and
§1.6050K-1(e). A partnership generally
must use a copy of the completed Form
8308 as the required statement.
On November 30, 2020, the Treasury
Department and the IRS published in the
Federal Register final regulations (TD
9926, 85 FR 76910) that added §1.6050K1(c)(2) to require a partnership to furnish
to a transferor partner the information
necessary for the transferor to make the
transferor partner’s required statement
in §1.751-1(a)(3). Section 1.751-1(a)(3)
requires a transferor partner in a section
751(a) exchange to submit with the transferor partner’s income tax return for the
taxable year in which the sale or exchange
occurs a statement separately stating the
date of the sale or exchange, the amount of
any gain or loss attributable to section 751
property, and the amount of any gain or
loss attributable to capital gain or loss on
the sale of the partnership interest. After
the promulgation of §1.6050K-1(c)(2), the
IRS revised Form 8308.
Part IV of the revised Form 8308
requires a partnership to report, among
other items, the partnership’s gain or loss
from a deemed sale under section 751
and the transferor partner’s share of such
amount. As a result of the changes to Part
IV of Form 8308, a partnership’s obligation
to report the gain or loss attributable to a
section 751(a) exchange to a transferor is
effectively accelerated to January 31 of the
year following the section 751(a) exchange,
even though §1.751-1(a)(3) generally does
not require the transferor partner to report
such information to the IRS until the transferor partner files the partner’s income tax
return for the taxable year in which the sale
or exchange occurs, the due date of which
can be several months after January 31.
Following the revisions to Form 8308,
the Treasury Department and the IRS

September 2, 2025

received comments from stakeholders
that many partnerships are unable to
furnish the information required in Part
IV of the Form 8308 to transferors and
transferees by the January 31 due date
because, in many cases, partnerships do
not have all the information required by
Part IV of the Form 8308 by January 31
of the year following the calendar year
in which the section 751(a) exchange
occurred.
On January 11, 2024, the IRS published Notice 2024-19, 2024-5 I.R.B. 627,
which provided limited relief from penalties under section 6722 of the Code for
partnerships that failed to furnish a completed Part IV of Form 8308 by January
31, 2024, for section 751(a) exchanges
during calendar year 2023. Penalty relief
in Notice 2024-19 was contingent on the
partnership (1) timely and correctly furnishing to the transferor and transferee a
copy of Parts I, II, and III of Form 8308,
or a statement that includes the same information, by the later of January 31, 2024,
or 30 days after the partnership is notified
of the section 751(a) exchange, and (2)
furnishing to the transferor and transferee
a copy of the complete Form 8308, including Part IV, or a statement that includes
the same information and any additional
information required under §1.6050K1(c), by the later of (a) the due date of the
partnership’s Form 1065 (including extensions), or (b) 30 days after the partnership
is notified of the section 751(a) exchange.
On December 13, 2024, the IRS published
Notice 2025-2, 2025-3 I.R.B. 418, which
extended the relief provided in Notice
2024-19 for partnerships that fail to complete Part IV of Form 8308 by January
31, 2025, with respect to section 751(a)
exchanges occurring during calendar year
2024.
After considering stakeholder feedback
regarding the undue burdens imposed by
§1.6050K-1(c)(2) after the revision of
Form 8308, the Treasury Department and
the IRS are issuing these proposed regulations to propose the removal of §1.6050K1(c)(2).
Explanation of Provisions
The proposed regulations would
remove §1.6050K-1(c)(2) to eliminate

362

the requirement that partnerships furnish
the information required in Part IV of
the Form 8308 by January 31 of the year
following the calendar year in which the
section 751(a) exchange occurred. The
proposed regulations would also modify §1.6050K-1(c)(1) by removing the
reference to a “completed copy of Form
8308” and replacing it with a reference to
“a copy of Form 8308 filled out in accordance with the instructions to the form.”
In addition, the Treasury Department and
the IRS would update the instructions for
Form 8308 to provide that only the information in Parts I, II, and III is required by
the due dates of section 6050K.
As a result of the proposed changes to
§1.6050K-1 and the associated changes
in the instructions to Form 8308, a partnership would be required to furnish
the information reported on only Parts
I, II, and III of Form 8308, or a statement that includes the same information, to the transferor and transferee in
a section 751(a) exchange by the later
of (1) January 31 of the year following
the calendar year in which the section
751(a) exchange occurred, or (2) 30 days
after the partnership has received notice
of the exchange as specified under section 6050K and §1.6050K-1.
Further, the Treasury Department and
the IRS would update the Instructions for
Form 8308 to make clear that a partnership must file a completed Form 8308,
including Part IV, as an attachment to its
Form 1065. Accordingly, and pursuant to
§1.6031(a)-1(a)(2), which provides that a
partnership return must contain the information required by the prescribed form
and the accompanying instructions, a
partnership would be required to file the
completed Form 8308, including Part IV,
as an attachment to its Form 1065, for
the taxable year of the partnership that
includes the last day of the calendar year
in which the section 751(a) exchange took
place. Thus, the current requirement that
a partnership file a completed Form 8308,
including Part IV, as an attachment to its
Form 1065 would remain unchanged by
these proposed regulations.
Pursuant to §1.6031(b)-1T(a)(3),
which provides, in part, that a partnership
generally must furnish a written statement
to each partner containing any additional

Bulletin No. 2025–36

information that may be required by
form or instructions, the partnership will
also continue to be required to report the
information required of the transferor in
§1.751-1(a)(3) to the transferor (including
the information required in Part IV of the
Form 8308), in the Schedule K-1 (Form
1065), Partner’s Share of Income, Deductions, Credits, etc. issued to the transferor
partner as provided by the Form and
Instructions to the Schedule K-1 (Form
1065).
Finally, the proposed regulations would
modify §1.6050K-1(c)(1)(i) to clarify that
the partnership will be providing to the
IRS the information included on a substitute statement furnished in lieu of a Form
8308 under §1.6050K-1(c)(1).
Proposed Applicability Date
Section 1.6050K-1(c)(2) is proposed
to be removed on the date these regulations are published as final regulations
in the Federal Register. The amendment
to §1.6050K-1(c)(1)(i) is proposed to
apply to returns filed for taxable years
ending on or after the date these regulations are published as final regulations
in the Federal Register. However, a
partnership may rely on these proposed
regulations, and the description of the
anticipated changes to the instructions
to Form 8308 contained in this preamble, with respect to section 751(a)
exchanges occurring on or after January
1, 2025, and before the date these regulations are published as final regulations
in the Federal Register.
Special Analyses
I. Regulatory Planning and Review
These proposed regulations are not
subject to review under section 6(b) of
Executive Order 12866 pursuant to the
Memorandum of Agreement (July 4,
2025) between the Treasury Department
and the Office of Management and Budget (OMB) regarding review of tax regulations. Therefore, a regulatory impact
assessment is not required.
The Executive Order 14192 designation for this rule is expected to be deregulatory.

Bulletin No. 2025–36

II. Paperwork Reduction Act
The Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3520) generally
requires that a Federal agency obtain the
approval of the OMB before collecting
information from the public, whether
such collection of information is mandatory, voluntary, or required to obtain
or retain a benefit. 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 control
number. These proposed regulations do
not impose a new or modify an existing
collection of information.
III. Regulatory Flexibility Act
It is hereby certified that the proposed
regulations would not have a significant
economic impact on a substantial number
of small entities pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6).
This rule would affect partnerships for
which there is a section 751(a) exchange
(as defined in §1.6050K-1(a)(4)(i)). These
proposed regulations would likely affect
a substantial number of small entities
organized as partnerships for Federal tax
purposes, but the impact of the proposed
regulations would be limited because the
proposed regulations would delay the date
by which partnerships must provide transferors of interests in the partnership the
information necessary for the transferor to
make the transferor’s required statement
under §1.751-1(a)(3). This delay would
benefit the partnerships by providing
additional time to furnish the information
but would not have a significant economic
impact. Accordingly, a regulatory flexibility analysis under the Regulatory Flexibility Act is not required. The Treasury
Department and the IRS invite comments
on the impact of the proposed regulations
on small entities.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandate
Reform Act of 1995 (UMRA) requires
that agencies assess anticipated costs and
benefits and take certain other actions
before issuing a final rule that includes any

363

Federal mandate that may result in expenditures in any one year by a State, local,
or Tribal government, in the aggregate,
or by the private sector, of $100 million
(updated annually for inflation). These
proposed regulations do not include any
Federal mandate that may result in expenditures by State, local, or Tribal governments or by the private sector in excess of
that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on State and local governments, and is not required by statute,
or preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of the Executive order. These proposed regulations do
not have federalism implications and do
not impose substantial, direct compliance
costs on State and local governments or
preempt State law within the meaning of
the Executive order.
VI. Small Business Administration
Pursuant to section 7805(f), this notice
of proposed rulemaking has been submitted to the Chief Counsel for the Office of
Advocacy of the Small Business Administration for comment on its impact on small
business.
Comments and Request for a Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to comments that are submitted timely to the IRS as prescribed in
the preamble under the ADDRESSES
section. The Treasury Department and
the IRS request comments on all aspects
of the proposed regulations. Any comments submitted will be made available
at https://www.regulations.gov or upon
request. Once submitted to the Federal
eRulemaking Portal, comments cannot
be edited or withdrawn. A public hearing
will be scheduled if requested in writing
by any person that timely submits written

September 2, 2025

comments. If a public hearing is scheduled, notice of the date, time, and place for
the public hearing will be published in the
Federal Register.
Statement of Availability of IRS
Documents
IRS notices and other guidance cited in
this preamble are published in the Internal
Revenue Bulletin (or Cumulative Bulletin)
and are available from the Superintendent
of Documents, U.S. Government Publishing Office, Washington, DC 20402, or by
visiting the IRS website at https://www.
irs.gov.
Drafting Information
The principal authors of these proposed
regulations are Jeremy Brown and Benjamin Weaver of the Office of Associate
Chief Counsel (Passthroughs, Trusts and
Estates). However, other personnel from
the Treasury Department and the IRS participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and IRS propose to amend 26 CFR part 1
as follows:

September 2, 2025

PART 1--INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
*****
Section 1.6050K-1 also issued under
26 U.S.C. 6050K(a).
*****
Par. 2. Section 1.6050K-1 is amended
by:
1. Adding a heading for paragraph (c);
2. Revising the introductory text of
paragraph (c)(1);
3. Revising paragraph (c)(1)(i);
4. Removing paragraph (c)(2) and
redesignating paragraph (c)(3) as new
paragraph (c)(2); and
5. Revising paragraph (h).
The revisions read as follows:
§1.6050K-1 Returns relating to sales
or exchanges of certain partnership
interests.
*****
(c) Statement to be furnished to transferor and transferee—(1) In general.
Every partnership required to file a return
under paragraph (a) of this section must
furnish to each person whose name is
required to be set forth in such return a
written statement on or before January
31 of the calendar year following the calendar year in which the section 751(a)
exchange occurred to which the return
under paragraph (a) relates (or, if later,

364

30 days after the partnership is notified
of the exchange as defined in paragraph
(e) of this section). The partnership must
use a copy of the Form 8308, filled out in
accordance with the instructions accompanying the form, as a statement unless
the Form 8308 contains information with
respect to more than one section 751(a)
exchange (see paragraph (a)(3) of this
section). If the partnership does not use
a copy of Form 8308 as a statement, the
statement shall include the information
required to be shown on Form 8308 with
respect to the section 751(a) exchange to
which the person to whom the statement
is furnished is a party. In addition, it shall
state that—
(i) The information shown on the statement will be supplied to the Internal Revenue Service.
*****
(h) Applicability date. Paragraphs (c)
(1) introductory text and (c)(1)(i) of this
section apply to returns filed for taxable
years ending on or after [date of publication of final regulations in the Federal
Register]. Paragraph (c)(2) of this section
applies to returns filed on or after November 30, 2020. Paragraph (d)(3) of this section applies to transfers that occur on or
after November 30, 2020.
Edward T. Killen,
Acting Chief Tax Compliance Officer.
(Filed by the Office of the Federal Register August
18, 2025, 8:45 a.m., and published in the issue of the
Federal Register for August 19, 2025, 90 FR 40269)

Bulletin No. 2025–36

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. 2025–36

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.

September 2, 2025

Numerical Finding List1
Bulletin 2025–36

Announcements:
2025-19, 2025-29 I.R.B. 191
2025-20, 2025-31 I.R.B. 271
2025-21, 2025-32 I.R.B. 312
2025-24, 2025-36 I.R.B. 359
2025-25, 2025-36 I.R.B. 360

Notices:
2025-32, 2025-27 I.R.B. 1
2025-33, 2025-27 I.R.B. 4
2025-34, 2025-27 I.R.B. 6
2025-35, 2025-27 I.R.B. 8
2025-31, 2025-28 I.R.B. 14
2025-36, 2025-30 I.R.B. 192
2025-37, 2025-30 I.R.B. 198
2025-40, 2025-31 I.R.B. 266
2025-39, 2025-32 I.R.B. 308
2025-28, 2025-34 I.R.B. 316
2025-41, 2025-34 I.R.B. 325
2025-42, 2025-36 I.R.B. 351
2025-43, 2025-36 I.R.B. 356

Proposed Regulations:
REG-125710-18, 2025-30 I.R.B. 263
REG-107459-24, 2025-32 I.R.B. 313
REG-132805-17, 2025-35 I.R.B. 342
REG-108822-25, 2025-36 I.R.B. 361

Revenue Procedures:
2025-22, 2025-30 I.R.B. 200
2025-24, 2025-31 I.R.B. 273
2025-25, 2025-32 I.R.B. 311
2025-26, 2025-33 I.R.B. 315

Revenue Rulings:
2025-13, 2025-28 I.R.B. 11
2025-14, 2025-32 I.R.B. 300
2025-15, 2025-32 I.R.B. 302
2025-16, 2025-35 I.R.B. 342
2025-17, 2025-36 I.R.B. 349

Treasury Decisions:
10021, 2025-31 I.R.B. 264
10031, 2025-32 I.R.B. 304

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2025–52, dated December 22, 2025.
1

September 2, 2025

ii

Bulletin No. 2025–36

Finding List of Current Actions on
Previously Published Items1
Bulletin 2025–36

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2025–52, dated December 22, 2025.
1

Bulletin No. 2025–36

iii

September 2, 2025

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.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A2bf1a5e171d49d32. Public record. Not legal advice.