Bulletin No. 2022–18

HIGHLIGHTS

OF THIS ISSUE





Bulletin No. 2022–18

May 2, 2022

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.

EMPLOYEE PLANS

Notice 2022-16, page 1044.

This notice sets forth updates on the corporate bond

monthly yield curve, the corresponding spot segment

rates for April 2022 used under § 417(e)(3)(D), the

24-month average segment rates applicable for April

2022, and the 30-year Treasury rates, as reflected by

the application of § 430(h)(2)(C)(iv).

EXCISE TAX

Notice 2022-15, page 1043.

This notice provides relief for the third and fourth calendar quarters of 2022, and the first calendar quarter

of 2023, regarding the failure to deposit penalties imposed by section 6656 of the Internal Revenue Code

(Code) as those penalties relate to the excise taxes

imposed on certain chemicals under section 4661

of the Code and on certain imported substances under section 4671 of the Code (collectively, Superfund

chemical taxes). This notice also provides that during

the first, second, and third calendar quarters of 2023,

the Internal Revenue Service (IRS) will not withdraw a

taxpayer’s right to use the deposit safe harbor rules

of § 40.6302(c)-1(b)(2) of the Excise Tax Procedural

Regulations for failure to make required deposits of Superfund chemical taxes if certain requirements are met.

INCOME TAX

Notice 2022-17, page 1048.

This notice publishes the reference price under § 45K(d)

(2)(C) of the Internal Revenue Code for calendar year

Finding Lists begin on page ii.

2021. The reference price applies in determining the

amount of the enhanced oil recovery credit under § 43,

the marginal well production credit for qualified crude oil

production under § 45I, and the applicable percentage

under § 613A to be used in determining percentage

depletion in the case of oil and natural gas produced

from marginal properties.

Notice 2022-18, page 1048.

The notice provides the applicable reference price for

qualified natural gas production from qualified marginal

wells during taxable years beginning in calendar year

2021 for the purpose of determining the marginal well

production credit under §45I. The applicable reference

price for taxable years beginning in calendar year 2021

is $1.52 per 1,000 cubic feet. The notice also provides

the credit amount used for the purpose of determining

the marginal well production credit. The credit amount

for taxable years beginning in calendar year 2021 is

$0.67 per 1,000 cubic feet.

Notice 2022-19, page 1050.

This notice announces the inflation adjustment factor

and phase-out amount for the enhanced oil recovery

credit for taxable years beginning in the 2022 calendar year. The format of the notice is identical to the

format of previously published notices on this issue.

The notice concludes that because the reference

price for the 2021 calendar year ($65.90) exceeds

$28 multiplied by the inflation adjustment factor for

the 2022 calendar year ($28 multiplied by 1.8607 =

$52.10) by $13.80, the enhanced oil recovery credit

for qualified costs paid or incurred in 2022 is phasedout completely.

Rev. Proc. 2022-23, page 1052.

This revenue procedure provides guidance allowing

a taxpayer to make late elections under §§ 168(j)(8)

and 168(l)(3)(D) of the Internal Revenue Code for the

taxpayer’s taxable year ending in 2018 or in 2019

for certain property placed in service by the taxpayer

after December 31, 2017. This revenue procedure

also provides guidance allowing a taxpayer to make

a late election under § 181(a)(1) of the Code for the

taxpayer’s taxable year ending in 2018 or in 2019

for certain film, television, or live theatrical productions commenced by the taxpayer after December

31, 2017.

Rev. Rul. 2022-9, page 1041.

Federal rates; adjusted federal rates; adjusted federal

long-term 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

May 2022.

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.

May 2, 2022 

Bulletin No. 2022–18

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. 2022-9

This revenue ruling provides various prescribed rates for federal income

Annual

AFR

110% AFR

120% AFR

130% AFR

1.85%

2.03%

2.22%

2.40%

AFR

110% AFR

120% AFR

130% AFR

150% AFR

175% AFR

2.51%

2.76%

3.01%

3.27%

3.77%

4.41%

AFR

110% AFR

120% AFR

130% AFR

2.66%

2.92%

3.20%

3.46%

Short-term adjusted AFR

Mid-term adjusted AFR

Long-term adjusted AFR

Bulletin No. 2022–18

tax purposes for May 2022 (the current

month). Table 1 contains the shortterm, mid-term, and long-term applicable federal rates (AFR) for the current

month for purposes of section 1274(d)

of the Internal Revenue Code. Table 2

contains the short-term, mid-term, and

long-term adjusted applicable federal

rates (adjusted AFR) for the current

month for purposes of section 1288(b).

Table 3 sets forth the adjusted federal long-term rate and the long-term

tax-exempt rate described in section

382(f). Table 4 contains the appropriate

percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in

service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service

after July 30, 2008, shall not be less

than 9%. Finally, Table 5 contains the

federal rate for determining the present

value of an annuity, an interest for life

or for a term of years, or a remainder or

a reversionary interest for purposes of

section 7520.

REV. RUL. 2022-9 TABLE 1

Applicable Federal Rates (AFR) for May 2022

Period for Compounding

Semiannual

Quarterly

Short-term

1.84%

1.84%

2.02%

2.01%

2.21%

2.20%

2.39%

2.38%

Mid-term

2.49%

2.48%

2.74%

2.73%

2.99%

2.98%

3.24%

3.23%

3.74%

3.72%

4.36%

4.34%

Long-term

2.64%

2.63%

2.90%

2.89%

3.17%

3.16%

3.43%

3.42%

Annual

1.40%

1.90%

2.01%

REV. RUL. 2022-9 TABLE 2

Adjusted AFR for May 2022

Period for Compounding

Semiannual

1.40%

1.89%

2.00%

1041

Quarterly

1.40%

1.89%

2.00%

Monthly

1.83%

2.01%

2.20%

2.38%

2.48%

2.72%

2.97%

3.22%

3.71%

4.32%

2.63%

2.88%

3.15%

3.41%

Monthly

1.40%

1.88%

1.99%

May 2, 2022

REV. RUL. 2022-9 TABLE 3

Rates Under Section 382 for May 2022

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.)

2.01%

2.01%

REV. RUL. 2022-9 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for May 2022

Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July

30, 2008, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income housing credit

7.60%

Appropriate percentage for the 30% present value low-income housing credit

3.26%

REV. RUL. 2022-9 TABLE 5

Rate Under Section 7520 for May 2022

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

May 2022. See Rev. Rul. 2022-9, page 1041.

Section 280G.—Golden

Parachute Payments

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

May 2022. See Rev. Rul. 2022-9 page 1041.

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 May 2022. See Rev.

Rul. 2022-9, page 1041.

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

May 2022. See Rev. Rul. 2022-9, page 1041.

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 May 2022. See Rev. Rul.

2022-9, page 1041.

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

May 2022. See Rev. Rul. 2022-9, page 1041.

3.0%

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

May 2022. See Rev. Rul. 2022-9, page 1041.

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

May 2022. See Rev. Rul. 2022-9, page 1041.

Section 7520.—Valuation

Tables

The applicable federal mid-term rates are set

forth for the month of May 2022. See Rev. Rul.

2022-9, page 1041.

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

May 2022. See Rev. Rul. 2022-9, page 1041.

May 2, 2022

1042

Bulletin No. 2022–18

Part III

Temporary Relief from

Penalty for Failure to

Deposit Superfund

Chemical Taxes

Notice 2022-15

SECTION 1. PURPOSE

This notice provides relief for the third

and fourth calendar quarters of 2022, and

the first calendar quarter of 2023, regarding the failure to deposit penalties imposed by section 6656 of the Internal Revenue Code (Code) as those penalties relate

to the excise taxes imposed on certain

chemicals under section 4661 of the Code

and on certain imported substances under

section 4671 of the Code (collectively, Superfund chemical taxes). This notice also

provides that during the first, second, and

third calendar quarters of 2023, the Internal Revenue Service (IRS) will not withdraw a taxpayer’s right to use the deposit

safe harbor rules of § 40.6302(c)-1(b)(2)

of the Excise Tax Procedural Regulations

for failure to make required deposits of

Superfund chemical taxes if certain requirements are met.

SECTION 2. BACKGROUND

(a) Superfund chemical taxes.

The Comprehensive Environmental

Response, Compensation, and Liability Act 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 Superfund chemical taxes.

The Superfund chemical taxes expired on

December 31, 1995.

Effective July 1, 2022, section 80201 of

the Infrastructure Investment and Jobs Act

(IIJA), Public Law 117-58, 135 Stat. 429

(November 15, 2021), reinstates the Superfund chemical taxes with certain modifications. Pursuant to section 80201(c)

(3) of the IIJA, Notice 2021-66, 2021-52

Bulletin No. 2022–18

I.R.B. 901, provided initial guidance related to the Superfund chemical taxes and requested comments on whether any issues

related to the reinstated Superfund chemical taxes require clarification or additional

guidance. To date, the Department of the

Treasury (Treasury Department) and the

IRS have received seven (7) public comments in response to Notice 2021-66. One

of these comments requested relief from

failure to deposit penalties, which is provided by this notice. The Treasury Department and the IRS continue to consider the

other comments. All comments can be accessed via the Federal Rulemaking Portal

at www.regulations.gov (type IRS-20210018 or Notice 2021-66 in the search field

on the regulations.gov homepage to find

the comments).

(b) Collection of Superfund chemical

taxes.

The Superfund chemical taxes are

codified in subtitle D, chapter 38 of the

Code (chapter 38), which pertains to environmental excise taxes. Chapter 38

taxes are reported on Form 6627, Environmental Taxes, which is required to be

attached to the tax return made on Form

720, Quarterly Federal Excise Tax Return

(Form 720 return). See §§ 40.0-1(a) and

40.6011(a)-1(a)(1) of the Excise Tax Procedural Regulations.

Section 6302 of the Code authorizes

the IRS to establish the mode and time

for collecting certain taxes, including

the taxes imposed by chapter 38. Section

40.6302(c)-1(a)(1) requires each person

that is required to file a Form 720 return

to make deposits of tax for each semimonthly period in which the tax liability

is incurred. A semimonthly period is the

first fifteen (15) days of a calendar month

or the portion of a calendar month following the 15th day of the month. See

§ 40.0-1(c) of the Excise Tax Procedural

Regulations.

The tax deposit for each semimonthly

period must not be less than ninety-five

percent (95%) of the amount of net tax

liability incurred during the semimonthly period unless a deposit safe harbor in

§ 40.6302(c)-1(b)(2)(ii) or (iii) applies

(deposit safe harbor). See § 40.6302(c)1(b)(1). Under the deposit safe harbor

1043

applicable to taxes imposed by chapter

38, any person that filed a Form 720 return for the second preceding calendar

quarter (look-back quarter) is considered

to have met the semimonthly deposit

requirement for the current quarter if:

(i) the deposit for each semimonthly period in the current calendar quarter is not

less than 1/6 of the net tax liability reported for the look-back quarter; (ii) each

deposit is made on time; (iii) the amount

of any underpayment is paid by the due

date of the Form 720 return; and (iv) the

person’s liability does not include any

tax that was not imposed during the lookback quarter. Section 40.6302(c)-1(b)(2)

(v) provides that if a person fails to make

deposits as required, the IRS may withdraw the person’s right to use the deposit

safe harbor.

Section 40.6302(c)-1(c)(1) provides

that, in general, the deposit of tax for any

semimonthly period must be made by the

14th day of the following semimonthly period unless such day is a Saturday,

Sunday, or legal holiday in the District of

Columbia, in which case the immediately preceding day which is not a Saturday,

Sunday, or legal holiday in the District of

Columbia is treated as the 14th day. Thus,

generally, the deposit of tax for the first

semimonthly period in a month is due by

the 29th day of that month and the deposit

of tax for the second semimonthly period

in a month is due fourteen (14) days after

the close of the second semimonthly period. (See § 40.6302(c)-2 for special deposit

rules for September.)

Section 6656 imposes a penalty in

the case of any failure by any person

to make timely deposits as required by

section 6302, including as required by

§§ 40.6302(c)-1 and 40.6302(c)-2. A taxpayer may avoid penalties under section

6656 for failure to make deposits of taxes if the taxpayer makes an affirmative

showing that such failure is due to reasonable cause and not due to willful neglect.

See section 6656(a).

(c) Deposit safe harbor not applicable

until first calendar quarter of 2023.

As the Superfund chemical taxes are

effective beginning July 1, 2022, the first

deposit, covering the first fifteen (15) days

May 2, 2022

of July 2022, is due by July 29, 2022.

As noted in section 2(b) of this notice,

§ 40.6302(c)-1(b)(2) provides a deposit

safe harbor for calculating the amount of

semimonthly deposits. Because the deposit safe harbor rules require a second

preceding calendar quarter (look-back

quarter) in which the same taxes are imposed to determine deposit amounts in the

current quarter, a person liable for any Superfund chemical taxes will be ineligible

to use the deposit safe harbor to calculate

semimonthly deposits of Superfund chemical taxes until the first calendar quarter

of 2023. See § 40.6302(c)-1(b)(2)(ii) and

(iii). For purposes of the deposit safe harbor, the third calendar quarter of 2022 is

the look-back quarter for the semimonthly

periods during the first calendar quarter of

2023.

The Treasury Department and the

IRS recognize the short time frame between the reinstatement of the Superfund chemical taxes and the due date of

the first deposit, the unavailability of the

§ 40.6302(c)-1(b)(2) deposit safe harbor

in 2022, the possible difficulties of computing the correct amount of tax during

the third calendar quarter of 2022 (which

is both the first calendar quarter the taxes are in effect and the look-back quarter

for the first calendar quarter of 2023),

and the number of new taxpayers owing

Superfund chemical taxes that have not

previously had to comply with the deposit requirements of section 6302. In consideration of these issues, the Treasury

Department and the IRS have determined

that it is in the interest of sound tax administration to provide relief regarding

the section 6656 penalty with respect to

deposits of Superfund chemical taxes for

the last two calendar quarters of 2022,

and the first calendar quarter of 2023,

as described in section 3 of this notice.

For the foregoing reasons, the Treasury

Department and the IRS have also determined that during the first, second,

and third calendar quarters of 2023, the

IRS will not withdraw the taxpayer’s

right to use the deposit safe harbor of

§ 40.6302(c)-1(b)(2) for failure to make

required deposits of Superfund chemical

taxes if certain requirements are met.

SECTION 3. RELIEF REGARDING

SECTION 6656 PENALTY

(a) Deemed satisfaction of reasonable

cause standard.

As noted in section 2(b) of this notice,

a taxpayer may avoid penalties under section 6656 for underpayment of deposits of

the Superfund chemical taxes if the taxpayer makes an affirmative showing that

such failure is due to reasonable cause

and not due to willful neglect (reasonable

cause standard). For semimonthly periods

in the third and fourth calendar quarters

of 2022 and the first calendar quarter of

2023, a taxpayer owing Superfund chemical taxes will be deemed to have satisfied the reasonable cause standard and no

penalty under section 6656 for failure to

deposit Superfund chemical taxes will be

imposed if (i) the taxpayer makes timely

deposits of applicable Superfund chemical taxes, even if the deposit amounts are

computed incorrectly, and (ii) the amount

of any underpayment of the applicable Superfund chemical taxes for each calendar

quarter is paid in full by the due date for

filing the Form 720 return for that quarter.

(b) Non-exercise of authority to withdraw use of deposit safe harbor.

During the first, second, and third calendar quarters of 2023, the IRS will not

exercise its authority under § 40.6302(c)1(b)(2)(v) to withdraw the taxpayer’s

right to use the deposit safe harbor of

§ 40.6302(c)-1(b)(2) due to a failure to

make deposits of Superfund chemical taxes as required, provided the taxpayer satisfies the requirements of section 3(a) of this

notice for the look-back quarter at issue.

SECTION 4. DRAFTING

INFORMATION

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 this

notice, contact Stephanie Bland or Amanda Dunlap at (202) 317-6855 (not a tollfree number).

Update for Weighted

Average Interest Rates,

Yield Curves, and Segment

Rates

Notice 2022-16

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 30year Treasury weighted average rate under

§ 431(c)(6)(E)(ii)(I).

YIELD CURVE AND SEGMENT

RATES

Section 430 specifies the minimum

funding requirements that apply to single-employer plans (except for CSEC

plans under § 414(y)) pursuant to § 412.

Section 430(h)(2) specifies the interest rates that must be used to determine

a plan’s target normal cost and funding

target. Under this provision, present value is generally determined using three

24-month average interest rates (“segment

rates”), each of which applies to cash

flows during specified periods. To the extent provided under § 430(h)(2)(C)(iv),

these segment rates are adjusted by the applicable percentage of the 25-year average

segment rates for the period ending September 30 of the year preceding the calendar year in which the plan year begins.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.

Notice 2007-81, 2007-44 I.R.B. 899,

provides guidelines for determining the

monthly corporate bond yield curve, and

the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Consistent

with the methodology specified in Notice

2007-81, the monthly corporate bond

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)).

1

May 2, 2022

1044

Bulletin No. 2022–18

yield curve derived from March 2022 data

is in Table 2022-3 at the end of this notice.

The spot first, second, and third segment

rates for the month of March 2022 are, respectively, 2.44, 3.71, and 3.94

The 24-month average segment rates

determined under § 430(h)(2)(C)(i)

through (iii) must be adjusted pursuant to

24-MONTH AVERAGE CORPORATE

BOND SEGMENT RATES

The three 24-month average corporate bond segment rates applicable for

April 2022 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

0.87

2.67

Applicable Month

April 2022

25-YEAR AVERAGE SEGMENT

RATES

Section 9706(a) of the American

Rescue Plan Act of 2021, Pub. L. 117-2

(the ARP), which was enacted on March

11, 2021, changed the 25-year average

segment rates and the applicable minimum and maximum percentages used

under § 430(h)(2)(C)(iv) of the Code to

adjust the 24-month average segment

rates.2 Prior to this change, the applicable minimum and maximum percentages

were 85% and 115% for a plan year beginning in 2021, and 80% and 120% for

For Plan Years

Beginning In

§ 430(h)(2)(C)(iv) to be within the applicable minimum and maximum percentages

of the corresponding 25-year average segment rates. The 25-year average segment

rates for plan years beginning in 2021 and

2022 were published in Notice 2020-72,

2020-40 I.R.B. 789, and Notice 2021-54,

2021-41 I.R.B. 457, respectively.

a plan year beginning in 2022, respectively. After this change, the applicable

minimum and maximum percentages are

95% and 105% for a plan year beginning

in 2021 or 2022. In addition, pursuant

to this change, any 25-year average segment rate that is less than 5% is deemed

to be 5%.3

Pursuant to § 9706(c)(1) of the ARP,

these changes apply with respect to plan

years beginning on or after January 1,

2020. However, § 9706(c)(2) of the ARP

provides that a plan sponsor may elect not

to have these changes apply to any plan

year beginning before January 1, 2022.4

Third Segment

3.29

The adjusted 24-month average segment rates set forth in the chart below

reflect § 430(h)(2)(C)(iv) of the Code

as amended by § 9706(a) of the ARP.

These adjusted 24-month average segment rates apply only for plan years for

which an election under § 9706(c)(2) of

the ARP is not in effect. For a plan year for

which such an election does not apply, the

24-month averages applicable for April

2022, 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

Applicable

First

Second

Month

Segment

Segment

Third

Segment

2021

April 2022

4.75

5.36

6.11

2022

April 2022

4.75

5.18

5.92

The adjusted 24-month average segment rates set forth in the chart below do

not reflect the changes to § 430(h)(2)(C)

(iv) of the Code made by § 9706(a) of the

ARP. These adjusted 24-month average

For Plan Years

Beginning In

2021

segment rates apply only for plan years

for which an election under § 9706(c)(2)

of the ARP is in effect. For a plan year

for which such an election applies, the

24-month averages applicable for April

2022, 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:

Pre-ARP Adjusted 24-Month Average Segment Rates

Applicable

First

Second

Month

Segment

Segment

April 2022

3.32

4.79

Third

Segment

5.47

2

Section 80602 of the Infrastructure Investment and Jobs Act, Pub. L. 117-58, makes further changes to the time periods for which specified applicable minimum and maximum percentages

apply.

3

Pursuant to this change, the 25-year averages of the first segment rate for 2021 and 2022 are increased to 5.00% because those 25-year averages as originally published are below 5.00%.

4

This election may be made either for all purposes for which the amendments under § 9706 of the ARP apply or solely for purposes of determining the adjusted funding target attainment

percentage under § 436 of the Code for the plan year.

Bulletin No. 2022–18

1045

May 2, 2022

30-YEAR TREASURY SECURITIES

INTEREST RATES

Section 431 specifies the minimum

funding requirements that apply to multiemployer plans pursuant to § 412.

Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in § 431(c)(6)(A), based

on the plan’s current liability. Section

431(c)(6)(E)(ii)(I) provides that the

interest rate used to calculate current liability for this purpose must be no more

than 5 percent above and no more than

10 percent below the weighted average of the rates of interest on 30-year

Treasury securities during the four-year

period ending on the last day before the

beginning of the plan year. Notice 8873, 1988-2 C.B. 383, provides guidelines for determining the weighted average interest rate. The rate of interest on

30-year Treasury securities for March

2022 is 2.41 percent. The Service determined this rate as the average of the

daily determinations of yield on the 30year Treasury bond maturing in February 2052. For plan years beginning

in April 2022, 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%

April 2022

2.09

1.88 to 2.20

under § 417(e)(3)(D) are segment rates

computed without regard to a 24-month

average. Notice 2007-81 provides guidelines for determining the minimum

present value segment rates. Pursuant to

that notice, the minimum present value

segment rates determined for March 2022

are as follows:

MINIMUM PRESENT VALUE

SEGMENT RATES

In general, the applicable interest rates

Month

March 2022

Minimum Present Value Segment Rates

First Segment

Second Segment

2.44

3.71

DRAFTING INFORMATION

The principal author of this notice is

Tom Morgan of the Office of the Associate

May 2, 2022

Chief Counsel (Employee Benefits, Exempt Organizations, and Employment

Taxes). However, other personnel from

the IRS participated in the development

1046

Third Segment

3.94

of this guidance. For further information

regarding this notice, contact Mr. Morgan

at 202-317-6700 or Osmundo Bernabe at

626-927-1344 (not toll-free numbers).

Bulletin No. 2022–18

Table 2022-3

Monthly Yield Curve for March 2022

Derived from February 2022 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

1.31

1.79

2.19

2.47

2.65

2.73

2.77

2.80

2.83

2.87

2.92

2.98

3.06

3.14

3.22

3.31

3.39

3.47

3.55

3.61

3.68

3.73

3.78

3.83

3.87

3.90

3.92

3.94

3.96

3.97

3.98

3.99

3.99

4.00

4.00

4.00

4.00

3.99

3.99

3.99

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

Bulletin No. 2022–18

Yield

3.98

3.98

3.98

3.97

3.97

3.97

3.96

3.96

3.96

3.96

3.95

3.95

3.95

3.95

3.95

3.95

3.95

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

3.94

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

3.94

3.94

3.94

3.94

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

1047

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

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.93

3.92

3.92

3.92

3.92

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

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

3.92

May 2, 2022

2021 Section 45K(d)(2)(C)

Reference Price

Notice 2022-17

SECTION 1. PURPOSE

This notice publishes the reference

price under § 45K(d)(2)(C) of the Internal Revenue Code for calendar year 2021.

The credit period for the nonconventional

source production credit under § 45K ended on December 31, 2013, for facilities

producing coke or coke gas (other than

from petroleum based products). However, the reference price continues to apply

in determining the amount of the enhanced

oil recovery credit under § 43, the marginal well production credit for qualified

crude oil production under § 45I, and the

applicable percentage under § 613A to be

used in determining percentage depletion

in the case of oil and natural gas produced

from marginal properties.

SECTION 2. BACKGROUND

Section 45K(d)(2)(C) provides that the

term “reference price” means, with respect

to a calendar year, the Secretary’s estimate

of the annual average wellhead price per

barrel for all domestic crude oil the price

of which is not subject to regulation by the

United States.

Section 43(a) provides that, for purposes of § 38, the enhanced oil recovery

credit for any taxable year is an amount

equal to 15 percent of the taxpayer’s qualified enhanced oil recovery costs for such

taxable year.

Section 43(b)(1) provides that the

amount of enhanced oil recovery credit

for any taxable year shall be reduced by

an amount which bears the same ratio to

the amount of such credit (determined

without regard to this paragraph) as - (A)

the amount by which the reference price

for the calendar year preceding the calendar year in which the taxable year begins exceeds $28, bears to (B) $6. Section

43(b)(2) provides that the term “reference

price” means, with respect to any calendar

year, the reference price determined for

such calendar year under § 45K(d)(2)(C).

May 2, 2022

Section 45I(a) provides that, for purposes of § 38, the marginal well production credit for any taxable year is an

amount equal to the product of the credit

amount and the qualified crude oil production and the qualified natural gas production which is attributable to the taxpayer.

Section 45I(b)(1) provides that for

crude oil production, the amount of the

marginal well production credit is $3 per

barrel of qualified crude oil production.

Section 45I(b)(2) provides that the $3

amount under § 45I(b)(1) shall be reduced

(but not below zero) by an amount which

bears the same ratio to such amount (determined without regard to this paragraph)

as – (i) the excess (if any) of the applicable reference price over $15, bears to (ii)

$3. The applicable reference price for a

taxable year is the reference price of the

calendar year preceding the calendar year

in which the taxable year begins.

Section 45I(b)(2)(C) provides that for

qualified crude oil production the term

“reference price” means, with respect to

any calendar year, the reference price determined under § 45K(d)(2)(C).

Section 613A(c)(6)(A) provides, in

general, that the allowance for depletion

under § 611 shall be computed in accordance with § 613 with respect to - (i) so

much of the taxpayer’s average daily marginal production of domestic crude oil as

does not exceed the taxpayer’s depletable

oil quantity (determined without regard

to paragraph (3)(A)(ii)), and (ii) so much

of the taxpayer’s average daily marginal production of domestic natural gas as

does not exceed the taxpayer’s depletable

natural gas quantity (determined without

regard to paragraph (3)(A)(ii)), and the

applicable percentage shall be deemed to

be specified in subsection (b) of § 613 for

purposes of subsection (a) of that section.

Section 613A(c)(6)(C) provides that

the term “applicable percentage” means

the percentage (not greater than 25 percent) equal to the sum of - (i) 15 percent,

plus (ii) 1 percentage point for each whole

dollar by which $20 exceeds the reference price for crude oil for the calendar

year preceding the calendar year in which

the taxable year begins. For purposes of

this paragraph, the term “reference price”

means, with respect to any calendar year,

the reference price determined for such

calendar year under § 45K(d)(2)(C).

1048

SECTION 3. REFERENCE PRICE

The reference price under § 45K(d)(2)

(C) for calendar year 2021 is $65.90.

SECTION 4. DRAFTING

INFORMATION

The principal author of this notice

is Christopher F. Price of the Office of

Associate Chief Counsel (Passthroughs &

Special Industries). For further information regarding this notice, contact Mr. Price

on (202) 317-6853 (not a toll-free number).

Reference Price for Section

45I Credit for Production of

Natural Gas from Marginal

Wells During Taxable Years

Beginning in Calendar Year

2021

Notice 2022-18

SECTION 1. PURPOSE

This notice provides the applicable

reference price for qualified natural gas

production from qualified marginal wells

during taxable years beginning in calendar

year 2021 for the purpose of determining

the marginal well production credit (MWC)

under §45I of the Internal Revenue Code.

The applicable reference price for taxable

years beginning in calendar year 2021 is

$1.52 per 1,000 cubic feet (Mcf).

This notice also provides the credit

amount used for the purpose of determining the MWC for taxable years beginning

in calendar year 2021. The credit amount

is determined using the 2021 inflation adjustment factor of 1.3402 and the applicable reference price of $1.52 per Mcf. The

credit amount for taxable years beginning

in calendar year 2021 is $0.67 per Mcf.

SECTION 2. BACKGROUND

Section 45I(a), as it relates to qualified natural gas production, provides that,

for purposes of § 38, the MWC for any

taxable year is an amount equal to the

product of (1) the credit amount and (2)

Bulletin No. 2022–18

the qualified natural gas production that is

attributable to the taxpayer.

Section 45I(c)(1) provides that “qualified natural gas production” means domestic natural gas produced from a qualified marginal well. Section 45I(c)(3)(A)

provides that a qualified marginal well is

a domestic well (i) the production from

which during the taxable year is treated as

marginal production under § 613A(c)(6),

or (ii) which, during the taxable year (I)

has average production of not more than

25 barrel-of-oil equivalents per day, and

(II) produces water at a rate not less than

95 percent of total well effluent.

Section 613A(c)(6)(D) and (E) provide

that “marginal production” means domestic natural gas produced during any taxable year from a property which is a stripper well property for the calendar year in

which the taxable year begins. A “stripper

well property” is, with respect to any calendar year, any property producing not

more than 15 barrel equivalents per day,

determined by dividing the average daily

production of domestic crude oil and domestic natural gas from producing wells

on the property for such calendar year by

the number of such wells.

Section 45I(c)(2)(A) provides that

generally only the first 1,095 barrels or

barrel-of-oil equivalents (as defined in

§ 45K(d)(5)) produced during the taxable

year qualify for the MWC. This limitation

is proportionately reduced in the case of a

short taxable year or in the case of a well

that is not capable of production each day

of a taxable year. See § 45I(c)(2)(B). The

number of wells on which a taxpayer may

claim the MWC is not limited.

Section 45I(d)(2) provides that to

claim the credit a taxpayer must hold an

operating interest in the qualified marginal well producing the natural gas to which

the credit relates. Under § 45I(d)(1) if a

well is owned by more than one owner

and the natural gas production exceeds the

limitation under § 45I(c)(2), the qualifying natural gas production attributable to

the taxpayer is determined on the basis of

the ratio which taxpayer’s revenue interest

in the production bears to the aggregate of

the revenue interests of all operating interest owners in the production. Finally,

§ 45I(d)(3) provides that the MWC is not

1

allowable if the taxpayer is also eligible to

claim the § 45K nonconventional sources

credit for the taxable year, unless the taxpayer elects not to claim the credit under

§ 45K for the well.

For purposes of § 45I(a)(1), the credit

amount is 50 cents (adjusted for inflation)

per Mcf of qualified natural gas production (tentative credit amount). See § 45I(b)

(1)(B) and (b)(2)(B).

Section 45I(b)(2)(A) and (B) provide

that the tentative credit amount (adjusted

for inflation) is reduced (but not below

zero) to the extent that the applicable

reference price exceeds $1.67 (adjusted

for inflation). More specifically, § 45I(b)

(2)(A) provides that the tentative credit

amount (adjusted for inflation) is reduced

by an amount which bears the same ratio

to the tentative credit amount (adjusted

for inflation) as the excess (if any) of the

applicable reference price over $1.67 (adjusted for inflation), bears to $0.33 (adjusted for inflation). As a result, the MWC

is not available if the applicable reference

price for qualified natural gas production

is $2.00 (adjusted for inflation) or more.

Section 45I(b)(2)(A) also provides that

the applicable reference price for a taxable

year is the reference price for the calendar

year preceding the calendar year in which

the taxable year begins. Section 45I(b)(2)

(C)(ii) provides that the term “reference

price” means, with respect to any calendar

year, in the case of qualified natural gas

production, the Secretary’s estimate of the

annual average wellhead price per Mcf for

all domestic natural gas.

Section 45I(b)(2)(B) provides that in

the case of any taxable year beginning in a

calendar year after 2005, each of the dollar amounts contained in § 45I(b)(2)(A)

will be increased to an amount equal to

such dollar amount multiplied by the inflation adjustment factor for such calendar

year (determined under § 43(b)(3)(B) by

substituting “2004” for “1990”).

.2 Reference Price. The Secretary’s

estimate of the calendar year 2020 annual average wellhead price per Mcf for

all domestic natural gas under § 45I(b)

(2)(C)(ii) was calculated by applying

the Producer Price Index commodity index for “Natural Gas from the Wellhead”

(WPU053101051)1 published by the Bureau of Labor Statistics (BLS) as part of its

Producer Price Index program, to the 2019

annual average wellhead price ($1.94)

published in Notice 2021-34, 2021-23

I.R.B. 1194. The annual Producer Price

Index commodity index for natural gas

published by the BLS was 60.4 in 2019

and 47.4 in 2020, which implies a ratio of

2020 to 2019 average wellhead prices of

0.785 (47.4 / 60.4). Therefore, the Secretary’s estimate of the calendar year 2020

annual average wellhead price per Mcf for

all domestic natural gas is $1.52 per Mcf

(0.785 x $1.94 per Mcf).

For years after 2020, the Secretary intends to continue calculating the reference

price by application of the Producer Price

Index commodity index for “Natural Gas

from the Wellhead” (WPU053101051)

published by the BLS to the previous

year’s reference price.

SECTION 3. INFLATION

ADJUSTMENT FACTOR AND

REFERENCE PRICE

SECTION 5. EFFECTIVE DATE

.1 Inflation Adjustment. The inflation

adjustment factor under § 45I(b)(2)(B) for

calendar year 2021 is 1.3402.

SECTION 4. CALCULATION OF

CREDIT AMOUNT

Under § 45I(b)(1)(B) and (2)(B), the

tentative credit amount used to calculate the MWC for taxable years beginning in calendar year 2021 is 67 cents

per Mcf ($0.50 x 1.3402 inflation adjustment factor). Because the applicable

reference price ($1.52) does not exceed

$2.24 ($1.67 x 1.3402 inflation adjustment factor), there is no reduction in the

tentative credit amount under § 45I(b)(2)

(A). Therefore, the credit amount used

to calculate the MWC for taxable years

beginning in calendar year 2021 is $0.67

per Mcf.

This notice is effective for qualified

natural gas production during taxable

years beginning in calendar year 2021.

https://data.bls.gov/cgi-bin/srgate. The BLS publishes indexes and not actual or average prices.

Bulletin No. 2022–18

1049

May 2, 2022

SECTION 6. DRAFTING AND

CONTACT INFORMATION

The principal author of this notice is

Charles Hyde of the Office of Associate

Chief Counsel (Passthroughs & Special

Industries). For further information regarding this notice contact Mr. Hyde at

(202) 317-6853 (not a toll-free number).

2022 Section 43 Inflation

Adjustment

Notice 2022-19

Section 43(a) provides that for purposes of section 38, the enhanced oil recovery

credit for any taxable year is an amount

equal to 15 percent of the taxpayer’s qualified enhanced oil recovery costs for such

taxable year.

Section 43(b)(1) provides that the

amount of the credit determined under

subsection (a) for any taxable year shall

be reduced by an amount which bears the

same ratio to the amount of such credit (determined without regard to this paragraph)

as — (A) the amount by which the reference price for the calendar year preceding

the calendar year in which the taxable years

begins exceeds $28, bears to (B) $6.

Section 43(b)(3)(B) of the Internal

Revenue Code requires the Secretary to

publish an inflation adjustment factor. The

enhanced oil recovery credit under § 43 for

any taxable year is reduced if the “reference

price,” determined under § 45K(d)(2)(C),

for the calendar year preceding the calendar year in which the taxable year begins

is greater than $28 multiplied by the inflation adjustment factor for the current

calendar year.

The term “inflation adjustment factor”

means, with respect to any calendar year, a

fraction the numerator of which is the GNP

implicit price deflator for the preceding calendar year and the denominator of which

is the GNP implicit price deflator for 1990.

Because the reference price for the 2021

calendar year ($65.90) exceeds $28 multiplied by the inflation adjustment factor for

the 2022 calendar year ($28 multiplied by

1.8607 = $52.10) by $13.80, the enhanced

oil recovery credit for qualified costs paid or

incurred in 2022 is phased out completely.

Table 1 contains the GNP implicit price

deflator used for the 2022 calendar year,

as well as the previously published GNP

implicit price deflators used for the 1991

through 2021 calendar years.

Notice 2022-19 TABLE 1

GNP IMPLICIT PRICE DEFLATORS

Calendar Year

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

May 2, 2022

GNP Implicit Price Deflator

112.9 (used for 1991)

117.0 (used for 1992)

120.9 (used for 1993)

124.1 (used for 1994)

126.0 (used for 1995)*

107.5 (used for 1996)

109.7 (used for 1997)**

112.35 (used for 1998)

112.64 (used for 1999)***

104.59 (used for 2000)

106.89 (used for 2001)

109.31 (used for 2002)

110.63 (used for 2003)

105.67 (used for 2004)****

108.23 (used for 2005)

112.129 (used for 2006)

116.036 (used for 2007)

119.656 (used for 2008)

122.407 (used for 2009)

109.764 (used for 2010)*****

110.654 (used for 2011)

113.347 (used for 2012)******

115.387 (used for 2013)

106.710 (used for 2014)*******

108.407 (used for 2015)********

109.868 (used for 2016)

111.528 (used for 2017)

113.500 (used for 2018)

110.308 (used for 2019)*********

112.257 (used for 2020)

113.586 (used for 2021)

118.349 (used for 2022)**********

1050

Bulletin No. 2022–18

* Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price deflator used to

compute the 1996 § 43 inflation adjustment factor is 93.6.

** Beginning in 1997, two digits follow the decimal point in the GNP implicit price deflator. The 1990 GNP price deflator used to

compute the 1998 § 43 inflation adjustment factor is 93.63.

*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit price deflator used to

compute the 2000 § 43 inflation adjustment factor is 86.53.

**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the

2004 § 43 inflation adjustment factor is 81.589.

***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the

2010 § 43 inflation adjustment factor is 72.199.

****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation adjustment factor is 72.260.

******* Beginning in 2013, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute

the 2014 § 43 inflation adjustment factor is 66.803.

******** Beginning in 2014, the 1990 GNP implicit price deflator used to compute the 2015 § 43 inflation adjustment factor is

66.732.

********* Beginning in 2018, the 1990 GNP implicit price deflator used to compute the 2019 § 43 inflation adjustment factor is

63.637.

********** Beginning in 2021, the 1990 GNP implicit price deflator used to compute the 2022 § 43 inflation adjustment factor is

63.604.

Table 2 contains the inflation adjustment factor and the phase-out amount for taxable years beginning in the 2022 calendar year as

well as the previously published inflation adjustment factors and phase-out amounts for taxable years beginning in the 1991 through

2021 calendar years.

Notice 2022-19 TABLE 2

INFLATION ADJUSTMENT FACTORS AND

PHASE-OUT AMOUNTS

Calendar

Year

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Bulletin No. 2022–18

Inflation

Factor

1.0000

1.0363

1.0708

1.0992

1.1160

1.1485

1.1720

1.1999

1.2030

1.2087

1.2353

1.2633

1.2785

1.2952

1.3266

1.3743

1.4222

1.4666

1.5003

1.5203

1.5326

1.5686

1.5968

1.5974

1.6245

1051

Adjustment Phase-out

Amount

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

100 percent

100 percent

100 percent

100 percent

100 percent

100 percent

100 percent

100 percent

100 percent

100 percent

May 2, 2022

2016

2017

2018

2019

2020

2021

2022

DRAFTING INFORMATION

The principal author of this notice is

John M. Deininger of the Office of Associate Chief Counsel (Passthroughs and

Special Industries). For further information regarding this notice, contact Mr.

Deininger at (202) 317-6853 (not a tollfree number).

26 CFR 1.181-2: Election to deduct production

costs.

(Also Part I, §§ 168, 181, 446; 1.181, 1.446-1)

Rev. Proc. 2022-23

SECTION 1. PURPOSE

This revenue procedure provides guidance allowing a taxpayer to make late elections under §§ 168(j)(8) and 168(l)(3)(D)

of the Internal Revenue Code (Code) for

the taxpayer’s taxable year ending in 2018

or in 2019 for certain property placed in

service by the taxpayer after December

31, 2017. This revenue procedure also

provides guidance allowing a taxpayer to

make a late election under § 181(a)(1) of

the Code for the taxpayer’s taxable year

ending in 2018 or in 2019 for certain film,

television, or live theatrical productions

commenced by the taxpayer after December 31, 2017.

SECTION 2. BACKGROUND

.01 Amendments to §§ 168(j), 168(l),

and 181.

(1) Section 168(j). Section 168(j)(1)

provides that for purposes of § 168(a), the

applicable recovery period for qualified

Indian reservation property, as defined in

§ 168(j)(4), is determined in accordance

with the table contained in § 168(j)(2), instead of the table contained in § 168(c). Prior to amendment by § 116 of the Taxpayer

Certainty and Disaster Tax Relief Act of

May 2, 2022

1.6464

1.6713

1.7008

1.7334

1.7640

1.7849

1.8607

0

0

1.069 percent

100 percent

100 percent

0

100 percent

2019 (2019 Act), enacted as Division Q of

the Further Consolidated Appropriations

Act, 2020, Pub. L. No. 116-94, 133 Stat.

2534, 3229 (December 20, 2019), § 168(j)

(9) provided that § 168(j) did not apply to

property placed in service after December 31, 2017. Section 116(a) of the 2019

Act amended § 168(j)(9) to provide that

§ 168(j) does not apply to property placed

in service after December 31, 2020, which

made § 168(j) applicable to property placed

in service after December 31, 2017, and on

or before December 31, 2020. Subsequent

legislation further amended § 168(j)(9)

to provide that § 168(j) does not apply to

property placed in service after December

31, 2021, which made § 168(j) applicable

to property placed in service after December 31, 2020, and on or before December

31, 2021. See § 138 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020

(2020 Act), enacted as Division EE of the

Consolidated Appropriations Act, 2021,

Pub. L. No. 116-260, 134 Stat. 1182, 3054

(December 27, 2020).

(2) Section 168(l). Section 168(l)(1)

allows a 50-percent additional first year

depreciation deduction (also sometimes

referred to as a “special depreciation allowance”) for qualified second generation biofuel plant property, as defined in

§ 168(l)(2) and (3), for the taxable year

in which the qualified second generation

biofuel plant property is placed in service

by the taxpayer. Prior to amendment by

§ 130 of the 2019 Act, § 168(l)(2)(D) defined qualified second generation biofuel

plant property, in part, as property placed

in service by the taxpayer before January 1, 2018. Section 130(a) of the 2019

Act amended § 168(l)(2)(D) by inserting

“January 1, 2021” in place of “January 1,

2018,” which made § 168(l)(1) applicable

to property placed in service after December 31, 2017, and before January 1, 2021.

(3) Section 181. Section 181(a)(1) allows a taxpayer to elect to treat the cost

of any qualified film, television, or live

1052

theatrical production, subject to the dollar

limitations in § 181(a)(2), as an expense

that is not chargeable to capital account

(§ 181 election). Prior to amendment by

§ 117 of the 2019 Act, § 181(g) provided

that § 181 did not apply to qualified film,

television, or live theatrical productions

commencing after December 31, 2017.

Section 117(a) of the 2019 Act amended

§ 181(g) to provide that § 181 does not

apply to qualified film, television, or live

theatrical productions commencing after

December 31, 2020, which made § 181

applicable to qualified film, television,

or live theatrical productions commencing after December 31, 2017, and on or

before December 31, 2020. Subsequent

legislation further amended § 181(g) to

provide that § 181 does not apply to qualified film, television, or live theatrical

productions commencing after December

31, 2025, which made § 181 applicable to

qualified film, television, or live theatrical

productions commencing after December

31, 2020, and on or before December 31,

2025. See § 116 of the 2020 Act.

(4) In sum, the 2019 Act retroactively

extended the application of §§ 168(j) and

168(l) to certain property placed in service

by the taxpayer after December 31, 2017,

and before January 1, 2021, and § 181 to

a qualified film, television, or live theatrical production commencing after December 31, 2017, and before January 1, 2021.

Unless otherwise provided, all references

hereinafter in this revenue procedure to

§§ 168(j), 168(l), and 181 are references

to §§ 168(j), 168(l), and 181 as in effect

on the day before the enactment date of

the 2020 Act.

.02 Elections.

(1) Section 168(j)(8) election. Section 168(j)(8) allows a taxpayer to make

an election not to apply § 168(j) for all

property that is in the same class of property and placed in service by the taxpayer

in the same taxable year (§ 168(j)(8) election). For purposes of § 168(j), the term

Bulletin No. 2022–18

“class of property” means each class of

property described in the table contained

in § 168(j)(2) (for example, 3-year property). As set forth in Rev. Proc. 2017-33,

2017-19 I.R.B. 1236, the § 168(j)(8) election generally must be made by the due

date, including extensions, of the Federal

tax return for the taxable year in which the

taxpayer places in service the qualified Indian reservation property. Rev. Proc. 201733 further provides that the § 168(j)(8)

election generally must be made in the

manner prescribed in the instructions for

Form 4562, Depreciation and Amortization. The instructions for Form 4562 for

the 2018 taxable year and the 2019 taxable year provide that the § 168(j)(8) election is made by attaching a statement to

the taxpayer’s timely filed tax return, including extensions, indicating the class of

property for which the taxpayer is making

the § 168(j)(8) election and, for such class,

that the taxpayer is electing not to apply

§ 168(j).

(2) Section 168(l)(3)(D) election. Section 168(l)(3)(D) allows a taxpayer to

elect not to apply § 168(l) for all property

that is in the same class of property and

placed in service in the same taxable year

(§ 168(l)(3)(D) election). The procedures

for making the § 168(l)(3)(D) election

are provided in the instructions for Form

4562. The instructions for Form 4562 for

the 2018 taxable year and the 2019 taxable

year provide that any election not to deduct the additional first year depreciation

for any class of property, which includes

the § 168(l)(3)(D) election, is made by attaching a statement to the taxpayer’s timely filed tax return, including extensions,

indicating the class of property for which

the taxpayer is making the § 168(l)(3)(D)

election and, for such class, that the taxpayer is not claiming the additional first

year depreciation.

(3) Section 181 election. Section 181(c)(1)

provides that the § 181 election for any

qualified film, television, or live theatrical

production is made in such manner as prescribed by the Secretary of the Treasury or

her delegate and by the due date, including extensions, for filing the taxpayer’s

return of tax under chapter 1 of the Code

for the taxable year in which costs of the

production are first incurred.

(a) Last updated in 2012, the rules and

procedures concerning a § 181 election for

Bulletin No. 2022–18

qualified film and television productions

are set forth in § 1.181-0 through § 1.1816 (§ 181 regulations). Congress added

“qualified live theatrical production” to

§ 181 of the Code in 2015. As of the date

of issuance of this revenue procedure, the

§ 181 regulations have not been updated

to incorporate rules and procedures for

qualified live theatrical productions.

(b) Section 1.181-2(a) provides that an

owner, as defined in § 1.181-1(a)(2), generally makes the § 181 election to deduct

production costs, as defined in § 1.1811(a)(3), of a production only if that owner has not deducted in a previous taxable

year any production costs for that production under any provision of the Code other

than § 181. Pursuant to § 1.181-2(b)(1),

the § 181 election generally must be made

by the due date, including any extension,

for filing the owner’s Federal income tax

return for the first taxable year in which

(i) any aggregate production costs, as defined in § 1.181-1(a)(4), have been paid or

incurred, and (ii) the owner reasonably expects, based on all of the facts and circumstances, that the production will be set for

production and will, upon completion, be a

qualified production. Pursuant to § 1.1812(c)(1), an owner must make the § 181

election separately for each production.

Further, for each production to which the

§ 181 election applies, § 1.181-2(c)(2)(i)

provides that the owner must attach a

statement to the owner’s Federal income

tax return for the taxable year of the § 181

election stating that the owner is making

the § 181 election and providing the information specified in § 1.181-2(c)(2)(i)(A)

through (H). If the owner pays or incurs

additional production costs in any taxable

year subsequent to the taxable year for

which production costs are first deducted

under § 181, § 1.181-2(c)(2)(ii) provides

that the owner must attach a statement to the

owner’s Federal income tax return for that

subsequent taxable year providing the information specified in § 1.181-2(c)(2)(ii)(A)

through (H).

.03 Method of accounting.

(1) Section 446(e) of the Code and

§ 1.446-1(e)(2) of the Income Tax Regulations require a taxpayer to secure the consent of the Commissioner of Internal Revenue (Commissioner) before changing a

method of accounting for Federal income

tax purposes. Section 1.446-1(e)(3)(ii)

1053

authorizes the Commissioner to prescribe

administrative procedures setting forth the

limitations, terms, and conditions necessary to permit a taxpayer to obtain consent

to change a method of accounting.

(2) Section 1.446-1(e)(2)(ii)(d)(3)(iii)

provides that the making of a late depreciation election or the revocation of a timely

valid depreciation election is not a change

in method of accounting, except as otherwise expressly provided by the Code,

the regulations under the Code, or other

guidance published in the Internal Revenue Bulletin. Section 1.446-1(e)(2)(ii)(d)

(5)(iii) provides that except as otherwise

expressly provided by the Code, the regulations under the Code, or other guidance

published in the Internal Revenue Bulletin, no § 481 adjustment is required or

permitted for a change from one permissible method of computing depreciation to

another permissible method of computing

depreciation.

(3) Because of the retroactive extension of the application of §§ 168(j),

168(l), and 181, guidance is needed for

taxpayers that want to make late elections under §§ 168(j)(8), 168(l)(3)(D),

and 181(a)(1). The Department of the

Treasury (Treasury Department) and the

Internal Revenue Service (IRS) have determined it appropriate to treat the making of late elections under §§ 168(j)(8),

168(l)(3)(D), and 181(a)(1) for certain

property and certain film, television, or

live theatrical productions as a change

in method of accounting with a § 481(a)

adjustment for a limited period of time.

Accordingly, this revenue procedure permits taxpayers to make these late elections by filing an amended return or an

administrative adjustment request under

§ 6227 of the Code (AAR), as applicable,

or a Form 3115, Application for Change

in Accounting Method. See sections 4

and 6 of this revenue procedure for the

procedures to make these late elections.

SECTION 3. SCOPE

.01 This revenue procedure applies to a

taxpayer that:

(1) Placed in service (a) qualified Indian reservation property after December

31, 2017, during the taxpayer’s taxable

year ending in 2018 (2018 taxable year)

or in 2019 (2019 taxable year), or (b)

May 2, 2022

qualified second generation biofuel plant

property after December 31, 2017, during

the taxpayer’s 2018 taxable year or 2019

taxable year;

(2) Timely filed the taxpayer’s Federal income tax return or Form 1065, U.S.

Return of Partnership, for the placed-inservice year of such property; and

(3) Wants to make a (a) late § 168(j)(8)

election to not apply § 168(j) for the

placed-in-service year for one or more

classes of qualified Indian reservation

property, or (b) late § 168(l)(3)(D) election not to apply § 168(l) for the placedin-service year for one or more classes of

qualified second generation biofuel plant

property.

.02 This revenue procedure also applies to a taxpayer that:

(1) Is the owner, as defined in § 1.1811(a)(2), of a qualified film, television, or

live theatrical production commencing after December 31, 2017;

(2) Wants to make a late § 181 election

for the production costs of such qualified

film, television, or live theatrical production for the taxpayer’s 2018 taxable year

or 2019 taxable year, as applicable; and

(3) Timely filed the taxpayer’s Federal income tax return or Form 1065 for the

taxpayer’s 2018 taxable year or 2019 taxable year, as applicable.

SECTION 4. AUTOMATIC

EXTENSION OF TIME TO FILE

ELECTIONS UNDER SECTIONS

168(j)(8), 168(l)(3)(D), and 181(a)(1)

.01 Time and manner of making a late

§ 168(j)(8) election or late § 168(l)(3)(D)

election. A taxpayer within the scope of

section 3.01 of this revenue procedure may

make a late § 168(j)(8) election or late

§ 168(l)(3)(D) election by filing either:

(1) An amended Federal income tax

return or amended Form 1065 for the

placed-in-service year of the property on

or before December 31, 2022, but in no

event later than the applicable period of

limitations on assessment for the taxable

year for which the amended return is being filed. A partnership subject to the centralized partnership audit regime enacted

as part of the Bipartisan Budget Act of

2015 (BBA partnership) may file an AAR

for the placed-in-service year of the property on or before December 31, 2022, but

May 2, 2022

in no event later than the applicable period

of limitations on making adjustments under § 6235 of the Code for the reviewed

year as defined in § 301.6241-1(a)(8) of

the Procedure and Administration Regulations. This amended return or AAR must

include the adjustment to taxable income

for the late election and any collateral

adjustments to taxable income or to tax

liability. Such collateral adjustments also

must be made on original or amended Federal returns or AARs for any affected succeeding taxable years; or

(2) A Form 3115 with the taxpayer’s

first or second timely filed original Federal income tax return or Form 1065 that is

filed after April 19, 2022. A late § 168(j)(8)

election or late § 168(l)(3)(D) election

made pursuant to this section 4.01(2)

will be treated as a change in method of

accounting with a § 481(a) adjustment.

The procedures for making this change in

method of accounting are described in section 6 of this revenue procedure.

.02 Time and manner of making a late

§ 181 election. A taxpayer within the scope

of section 3.02 of this revenue procedure

may make the late § 181 election by filing

either:

(1) An amended Federal income tax

return or amended Form 1065 for the taxpayer’s 2018 taxable year or 2019 taxable

year, as applicable, on or before December 31, 2022, but in no event later than

the applicable period of limitations on

assessment for the taxable year for which

the amended return is being filed. A BBA

partnership may file an AAR for the taxpayer’s 2018 taxable year or 2019 taxable

year, as applicable, on or before December

31, 2022, but in no event later than the applicable period of limitations on making

adjustments under § 6235 for the reviewed

year as defined in § 301.6241-1(a)(8). This

amended return or AAR must include the

adjustment to taxable income for the late

election, any collateral adjustments to taxable income or to tax liability, and the statement required under § 1.181-2(c)(2)(i).

Such collateral adjustments also must be

made on, and the statement required under

§ 1.181-2(c)(2)(ii) must be included with,

original or amended Federal returns or

AARs for any affected succeeding taxable

years; or

(2) A Form 3115 with the taxpayer’s

first or second timely filed original Federal

1054

income tax return or Form 1065 that is

filed after April 19, 2022. A late § 181 election made pursuant to this section 4.02(2)

will be treated as a change in method of

accounting with a § 481(a) adjustment.

The procedures for making this change in

method of accounting are described in section 6 of this revenue procedure.

SECTION 5. APPLICATION OF

THE § 181 REGULATIONS TO

QUALIFIED LIVE THEATRICAL

PRODUCTIONS FOR 2018 AND 2019

A taxpayer within the scope of this

revenue procedure may treat the § 181

regulations (as described in section

2.02(3) of this revenue procedure) as if

such regulations were amended to apply to the production costs of qualified

live theatrical productions for purposes

of making the late § 181 election under

section 4.02 of this revenue procedure for

the taxpayer’s 2018 taxable year or 2019

taxable year.

SECTION 6. CHANGE IN METHOD

OF ACCOUNTING

.01 In general. The making of a late

election under section 4.01(2) or 4.02(2)

of this revenue procedure is treated as a

change in method of accounting to which

§§ 446(e) and 481, and the corresponding regulations, apply. A taxpayer that

wants to make a late election under section 4.01(2) or 4.02(2) of this revenue

procedure must use the automatic change

procedures in Rev. Proc. 2015-13, 2015-5

I.R.B. 419, or its successor.

.02 New automatic change. Rev. Proc.

2022-14, 2022-7 I.R.B. 502, is modified

to add new section 6.23 to read as follows:

6.23 Late elections under § 168(j)(8),

§ 168(l)(3)(D), and § 181(a)(1).

(1) Description of Change.

(a) Applicability. This change applies

to:

(i) A taxpayer within the scope of section 3.01 of Rev. Proc. 2022-23, 2022-18

I.R.B. XXX, that wants to make the late

election provided in section 4.01(2) of

Rev. Proc. 2022-23 under § 168(j)(8) or

§ 168(l)(3)(D); or

(ii) A taxpayer within the scope of

section 3.02 of Rev. Proc. 2022-23 that

wants to make the late election provided

Bulletin No. 2022–18

in section 4.02(2) of Rev. Proc. 2022-23

under § 181(a)(1).

(b) Inapplicability. The IRS will treat

the making of a late election provided in

section 4 of Rev. Proc. 2022-23 under

§§ 168(j)(8), 168(l)(3)(D), and 181(a)(1)

as a change in method of accounting

with a § 481(a) adjustment only for

the taxable years specified in section

6.23(2) of this revenue procedure. This

treatment does not apply to a taxpayer

that makes these late elections before

or after the time specified in section

6.23(2) of this revenue procedure, and

any such late election is not a change in

method of accounting.

(2) Time for making the change. The

change under section 6.23(1)(a)(i) or (ii)

of this revenue procedure must be made

with the taxpayer’s first or second timely

filed original Federal income tax return or

Form 1065, as applicable, that is filed after

April 19, 2022.

(3) Certain eligibility rules inapplicable.

The eligibility rules in section 5.01(1)(d)

and (f) of Rev. Proc. 2015-13, 2015-5

I.R.B. 419, do not apply to a change under

section 6.23(1)(a)(i) or (ii) of this revenue

procedure.

(4) Certain audit protection exception temporarily inapplicable. Sections

8.02(1) and (7) of Rev. Proc. 2015-13 do

not apply to a change in method of accounting made under section 6.23(1)(a)(i)

or (ii) of this revenue procedure. However, sections 8.02(1) and (7) of Rev. Proc.

2015-13 continue to apply for purposes

of determining the § 481(a) adjustment

Bulletin No. 2022–18

period provided in section 7.03(3)(b) of

Rev. Proc. 2015-13.

(5) Short Form 3115.

(a) A taxpayer making a change under

section 6.23(1)(a)(i) of this revenue procedure is required to complete only the following information on Form 3115 (Rev.

December 2018):

(i) The identification section of page 1

(above Part I);

(ii) The signature section at the bottom

of page 1;

(iii) Part I;

(iv) Part II, lines 6, 7, 8, 9, 14, and 18;

(v) Part IV, all lines except line 25; and

(vi) Schedule E, all lines except lines 1,

4b, 5, and 6.

(b) A taxpayer making the change under

section 6.23(1)(a)(ii) of this revenue procedure is required to attach to the taxpayer’s

Form 3115 the statement required under

§ 1.181-2(c)(2)(i) and, if applicable, the

statement required under § 1.181-2(c)(2)(ii),

and to complete only the following information on Form 3115 (Rev. December 2018):

(i) The identification section of page 1

(above Part I);

(ii) The signature section at the bottom

of page 1;

(iii) Part I;

(iv) Part II, lines 6, 7, 8, 9, 14, and 18;

and

(v) Part IV, all lines except line 25.

(6) Concurrent automatic change. A

taxpayer making one or more late elections under section 4.01(2) or 4.02(2) of

Rev. Proc. 2022-23 for the same year of

change should file a single Form 3115 for

1055

all such changes. The single Form 3115

must provide a single net § 481(a) adjustment for all such changes. See section

6.03(1)(b) of Rev. Proc. 2015-13 for information on making concurrent changes.

(7) Designated automatic accounting

method change number. The designated automatic accounting method change

number for a change to the method of accounting under this section 6.23 is “264.”

(8) Contact information. For further

information regarding a change under this

section 6.23, contact James Liechty at

(202) 317-7005 (not a toll-free number).

SECTION 7. EFFECT ON OTHER

DOCUMENTS

Section 6 of Rev. Proc. 2022-14 is

modified to include the accounting method change provided in section 6.02 of this

revenue procedure.

SECTION 8. EFFECTIVE DATE

This revenue procedure is effective

April 19, 2022.

SECTION 9. DRAFTING

INFORMATION

The principal authors of this revenue

procedure are Kathleen Reed and James

Liechty of the Office of Associate Chief

Counsel (Income Tax & Accounting). For

further information regarding this revenue

procedure, contact Mr. Liechty at (202)

317-7005 (not a toll-free number).

May 2, 2022

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. 2022–18

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.

May 2, 2022

Numerical Finding List1

Revenue Procedures:—Continued

2022-3, 2022-8 I.R.B. 788

2022-4, 2022-9 I.R.B. 789

2022-5, 2022-11 I.R.B. 825

2022-6, 2022-13 I.R.B. 934

2022-7, 2022-15 I.R.B. 946

2022-13, 2022-06 I.R.B. 477

2022-12, 2022-07 I.R.B. 494

2022-14, 2022-07 I.R.B. 502

2022-15, 2022-13 I.R.B. 908

2022-17, 2022-13 I.R.B. 930

2022-17, 2022-13 I.R.B. 933

2022-20, 2022-14 I.R.B. 945

2022-21, 2022-16 I.R.B. 1015

2022-23, 2022-18 I.R.B. 1052

AOD:

Revenue Rulings:

2022-1, 2022-06 I.R.B. 466

2022-2, 2022-12 I.R.B. 903

2022-1, 2022-02 I.R.B. 301

2022-2, 2022-04 I.R.B. 451

2022-3, 2022-06 I.R.B. 467

2022-4, 2022-10 I.R.B. 790

2022-5, 2022-10 I.R.B. 792

2022-6, 2022-12 I.R.B. 904

2022-7, 2022-14 I.R.B. 935

2022-8, 2022-14 I.R.B. 936

2022-9, 2022-18 I.R.B. 1041

Bulletin 2022–18

Announcements:

Notices:

2022-1, 2022-02 I.R.B. 304

2022-2, 2022-02 I.R.B. 304

2022-3, 2022-02 I.R.B. 308

2022-4, 2022-02 I.R.B. 309

2022-5, 2022-05 I.R.B. 457

2022-6, 2022-05 I.R.B. 460

2022-7, 2022-06 I.R.B. 469

2022-8, 2022-07 I.R.B. 491

2022-9, 2022-10 I.R.B. 811

2022-10, 2022-10 I.R.B. 815

2022-12, 2022-12 I.R.B. 906

2022-11, 2022-14 I.R.B. 939

2022-13, 2022-14 I.R.B. 940

2022-14, 2022-14 I.R.B. 941

2022-15, 2022-18 I.R.B. 1043

2022-16, 2022-18 I.R.B. 1044

2022-17, 2022-18 I.R.B. 1048

2022-18, 2022-18 I.R.B. 1048

2022-19, 2022-18 I.R.B. 1050

Treasury Decisions:

9959, 2022-03 I.R.B. 328

9961, 2022-03 I.R.B. 430

9960, 2022-07 I.R.B. 481

9962, 2022-11 I.R.B. 823

Proposed Regulations:

REG-118250-20, 2022-07 I.R.B. 753

REG-105954-20, 2022-11 I.R.B. 828

REG-114209-21, 2022-11 I.R.B. 898

REG-114209-21, 2022-11 I.R.B. 898

REG-121508-18, 2022-15 I.R.B. 996

REG-114339-21, 2022-17 I.R.B. 1030

Revenue Procedures:

2022-1, 2022-01 I.R.B. 1

2022-2, 2022-01 I.R.B. 120

2022-3, 2022-01 I.R.B. 144

2022-4, 2022-01 I.R.B. 161

2022-5, 2022-01 I.R.B. 256

2022-7, 2022-01 I.R.B. 297

2022-9, 2022-02 I.R.B. 310

2022-11, 2022-03 I.R.B. 449

2022-8, 2022-04 I.R.B. 451

2022-10, 2022-06 I.R.B. 473

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2020–27 through 2020–52 is in Internal Revenue Bulletin

2020–52, dated December 27, 2021.

1

May 2, 2022

ii

Bulletin No. 2022–18

Finding List of Current Actions on

Previously Published Items1

Bulletin 2022–18

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2020–27 through 2020–52 is in Internal Revenue Bulletin

2020–52, dated December 27, 2021.

1

Bulletin No. 2022–18

iii

May 2, 2022

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

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