# Bulletin No. 2021–29

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URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A40048a148125daa3

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

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2021–29
July 19, 2021

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

ADMINISTRATIVE
Rev. Proc. 2021-24, page 19.

This revenue procedure provides two procedures for individuals not otherwise required to file 2020 Federal income
tax returns to file returns to receive advance child tax credit
payments, 2020 recovery rebate credit payments, additional
2020 recovery rebate credit payments, and third-round economic impact payments. The first procedure permits these
individuals to file simplified returns. The second procedure
enables these individuals to file complete returns electronically even if they have zero adjusted gross income.

EMPLOYMENT TAX, INCOME TAX
Notice 2021-42, page 19.

This notice extends the federal income and employment tax
treatment provided in Notice 2020-46, 2020-27 I.R.B. 7, to
cash payments made to charitable organizations described
in section 170(c) of the Code (section 170(c) organizations)
after December 31, 2020, and before January 1, 2022,

Finding Lists begin on page ii.

that otherwise would be described in Notice 2020-46. Under leave-based donation programs, employees can elect to
forgo vacation, sick, or personal leave in exchange for cash
payments made by their employers to section 170(c) organizations.

INCOME TAX
Notice 2021-41, page 17.

Beginning of Construction for Sections 45 and 48; Extension of Continuity Safe Harbor to Address Delays Related to
COVID-19 and Clarification of the Continuity Requirement. In
response to the Coronavirus Disease 2019 (COVID-19) pandemic, Notice 2021-41 extends the Continuity Safe Harbor
for both the production tax credit for qualified facilities under
section 45 of the Internal Revenue Code (Code) and the investment tax credit for energy property under section 48
of the Code for property the construction of which began in
2016 through 2020. This notice also provides a clarification
of the methods that taxpayers may use to satisfy the continuity requirement to satisfy the beginning of construction
requirements under sections 45 and 48.

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.

July 19, 2021 

Bulletin No. 2021–29

Part III
Beginning of Construction
for Sections 45 and 48;
Extension of Continuity
Safe Harbor to Address
Delays Related to
COVID-19 and Clarification
of the Continuity
Requirement
Notice 2021-41
SECTION 1. PURPOSE
This notice clarifies and modifies the
prior Internal Revenue Service (IRS) notices1 addressing the beginning of construction requirement for both the production tax credit for qualified facilities
under § 45 of the Internal Revenue Code
(Code) and the investment tax credit for
energy property under § 48 of the Code.
In response to the Coronavirus Disease
2019 (COVID-19) pandemic, this notice
provides that the safe harbor originally
provided in section 3.02 of Notice 201360 and in section 6.05 of Notice 2018-59
and extended in prior IRS notices (Continuity Safe Harbor) is further extended
for property the construction of which
began in 2016 through 2020. This notice
also provides a clarification of the methods that taxpayers may use to satisfy the
Continuity Requirement (as provided in
prior IRS notices and defined in section
2 of this notice) to satisfy the beginning
of construction requirements under §§ 45
and 48.
SECTION 2. BACKGROUND
Section 38 of the Code allows certain
business credits. Among the credits allowed by § 38 are the renewable electricity production tax credit under § 45 and the
investment tax credit determined ­under
§ 46 of the Code (which includes the energy credit under § 48). The credits under

§§ 45 and 48 generally are referred to as
the production tax credit (PTC) and the
investment tax credit for energy property
(ITC), respectively.
To qualify for the PTC, electricity
must, among other things, be produced by
the taxpayer at a qualified facility as defined in § 45(d). The PTC for any taxable
year is calculated by multiplying an inflation-adjusted credit rate by kilowatt hours
of electricity produced and sold by the
taxpayer to an unrelated person. The ITC
is calculated as a percentage of the basis
of energy property (as defined in § 48(a)
(3)) placed in service during the taxable
year. Additionally, under § 48(a)(5), a taxpayer may elect to treat certain renewable
energy facilities that otherwise qualify under § 45(d) as energy property to claim the
ITC in lieu of the PTC with respect to the
facility. Both the PTC and the ITC have
a beginning of construction requirement.
On December 27, 2020, the Taxpayer Certainty and Disaster Tax Relief Act
of 2020 (TCDTRA), enacted as Division
EE of the Consolidated Appropriations
Act, 2021, Pub. L. 116-260, Title I, 134
Stat. 1182, 3052-53, 3057-58, amended
§§ 45 and 48 with regard to the PTC and
the ITC. Section 131(a) of the TCDTRA
extended the deadline to begin construction for certain qualified facilities for
one year to December 31, 2021. Section
131(b) of the TCDTRA extended the beginning of construction deadline applicable to the election to claim the ITC in
lieu of the PTC by one year with respect
to certain qualified facilities to December
31, 2021. Section 132(a) of the TCDTRA
extended the deadlines for the beginning
of construction requirements for certain
ITC-eligible energy property to December
31, 2023. In addition, sections 131(c) and
132(b) of the TCDTRA extended the beginning of construction deadlines for the
phaseout provisions applicable to the PTC
and the ITC. Finally, section 204 of the
TCDTRA amended § 48(a)(5) to provide
special rules for “qualified offshore wind
facilities.”

The Department of the Treasury (Treasury Department) and the IRS have published several notices regarding the beginning of construction requirement. Notice
2013-29 provides two methods to establish that the beginning of construction
requirement under §§ 45 and 48(a)(5) has
been satisfied with respect to a facility:
the Physical Work Test and the Five Percent Safe Harbor. Both methods require
a taxpayer to make continuous progress
towards completion of the facility once
construction has begun (Continuity Requirement).
Section 4 of Notice 2013-29 provides
the Physical Work Test. Section 4.01 of
Notice 2013-29 provides:
Construction of a qualified facility
begins when physical work of a significant nature begins. . . . Whether a
taxpayer has begun construction of a
facility before [the statutory deadline]
will depend on the relevant facts and
circumstances. The Internal Revenue
Service will closely scrutinize a facility, and may determine that construction
has not begun on a facility before [the
statutory deadline] if a taxpayer does
not maintain a continuous program of
construction as determined under section 4.06.
Section 4.06(1) of Notice 2013-29 provides that a continuous program of construction involves continuing physical
work of a significant nature (Continuous Construction Test). Further, section
4.06(1) of Notice 2013-29 provides that
whether the taxpayer has maintained a
continuous program of construction will
be determined by the relevant facts and
circumstances.
Section 5.01 of Notice 2013-29 provides the Five Percent Safe Harbor:
Construction of a facility will be considered as having begun before [the
statutory deadline] if (1) a taxpayer
pays or incurs (within the meaning of
Treas. Reg. § 1.461-1(a)(1) and (2))
five percent or more of the total cost
of the facility, except as provided in

Notice 2013-29, 2013-20 I.R.B. 1085; Notice 2013-60, 2013-44 I.R.B. 431; Notice 2014-46, 2014-36 I.R.B. 520; Notice 2015-25, 2015-13 I.R.B. 814; Notice 2016-31, 2016-23 I.R.B. 1025;
Notice 2017-04, 2017-4 I.R.B. 541; Notice 2018-59, 2018-28 I.R.B. 196; Notice 2019-43, 2019-31 I.R.B. 487; Notice 2020-41, 2020-25 I.R.B. 954; and Notice 2021-5, 2021-3 I.R.B. 479
(collectively, the prior IRS notices).

1

Bulletin No. 2021–29

17

July 19, 2021

section 5.01(2), before [the statutory
deadline] and (2) thereafter, the taxpayer makes continuous efforts to advance
towards completion of the facility (as
determined under section 5.02).
Section 5.02(1) of Notice 2013-29 provides that whether a taxpayer makes continuous efforts to advance towards completion of the facility will be determined
by the relevant facts and circumstances
(Continuous Efforts Test). This section
also provides that facts and circumstances
indicating continuous efforts to advance
towards completion of the facility may include, but are not limited to:
(a) paying or incurring additional
amounts included in the total cost of
the facility;
(b) entering into binding written contracts for components or future work
on construction of the facility;
(c) obtaining necessary permits; and
(d) performing physical work of a significant nature.
Notice 2013-60 clarifies certain concepts provided in Notice 2013-29. Notice
2013-60 provides a Continuity Safe Harbor that allows a facility to be deemed to
have satisfied the Continuity Requirement.
Section 3.02 of Notice 2013-60 provides
that if a facility is placed in service before January 1, 2016, the facility will be
considered to satisfy the Continuous Construction Test (for purposes of satisfying
the Physical Work Test) or the Continuous
Efforts Test (for purposes of satisfying the
Five Percent Safe Harbor). Section 3.02
of Notice 2013-60 also provides that if a
facility is not placed in service before January 1, 2016, whether the facility satisfies
the Continuous Construction or Continuous Efforts Tests will be determined by
the relevant facts and circumstances, as
described in section 4.06 and section 5.02
of Notice 2013-29.
The Treasury Department and the IRS
have published several notices further
extending and modifying the Continuity
Safe Harbor. Notice 2015-25 extended the
Continuity Safe Harbor for one year by
replacing “January 1, 2016” provided in
Notice 2013-60 with “January 1, 2017.”
Notice 2016-31 modified the Continuity
Safe Harbor originally provided in section 3.02 of Notice 2013-60 and extended
by Notice 2015-25. Section 3 of Notice
2016-31 provides that if a taxpayer plac-

July 19, 2021

es a facility in service by the later of (1) a
calendar year that is no more than four calendar years after the calendar year during
which construction of the facility began or
(2) December 31, 2016, the facility will be
considered to satisfy the Continuity Safe
Harbor. Notice 2017-04 further extended
and modified the Continuity Safe Harbor
by providing that if a taxpayer places a
facility in service by the later of (1) a calendar year that is no more than four calendar years after the calendar year during
which construction of the facility began or
(2) December 31, 2018, the facility will be
considered to satisfy the Continuity Safe
Harbor.
Notice 2018-59 provides guidance on
determining when construction has begun on energy property eligible for the
§ 48 credit. It provides two methods to
establish the beginning of construction
(Physical Work Test and Five Percent
Safe Harbor), a Continuity Requirement
for both methods, rules for transferring
energy property, and additional rules applicable to the beginning of construction
requirement of § 48 with respect to “energy property” described in sections 2.02
and 2.03 of Notice 2018-59. Section 6.05
of Notice 2018-59 provides a Continuity
Safe Harbor for energy property under §
48 that mirrors that provided for the PTC
under § 45 in the prior IRS notices:
Except as provided in this section, if a
taxpayer places an energy property 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 energy property began (the Continuity Safe Harbor Deadline), the energy property will be considered to satisfy the Continuity Safe
Harbor. The excusable disruption rules
in section 6.03 do not apply for purposes of applying the Continuity Safe Harbor. However, if an energy property is
not placed in service before the end of
the fourth calendar year after the calendar year during which construction
of the energy property began, whether
the energy property satisfies the Continuity Requirement under either the
Physical Work Test or the Five Percent
Safe Harbor will be determined by the
relevant facts and circumstances.
In response to the COVID-19 pandemic, on May 27, 2020, the Treasury

18

Department and the IRS released Notice
2020-41, which provides that for projects
that began construction in either calendar
year 2016 or 2017, the Continuity Safe
Harbor is satisfied if a taxpayer places
the qualified facility or energy property in
service by the end of a calendar year that
is no more than five calendar years after
the calendar year during which construction with respect to that qualified facility
or energy property began. Notice 2020-41
also provides a 3½ Month Safe Harbor for
services or property paid for by the taxpayer on or after September 16, 2019 and
received by October 15, 2020.
The Treasury Department and the IRS
recognize that regional, national, or global circumstances due to the COVID-19
pandemic have continued to cause delays
in the development of certain facilities
eligible for the PTC and the ITC. These
extraordinary delays have adversely affected the ability of many taxpayers to
place facilities in service in time to meet
the Continuity Safe Harbor. Accordingly, this notice provides relief for projects
on which construction began in 2016
through 2020 by expanding the period
that qualifies for the Continuity Safe Harbor. In addition, in response to requests
from taxpayers, this notice harmonizes
the methods for satisfying the Continuity Requirement under the Physical Work
Test and Five Percent Safe Harbor. Except as otherwise specified in this notice,
the guidance provided in the prior IRS
notices continues to apply.
SECTION 3. EXTENSION OF THE
CONTINUITY SAFE HARBOR FOR
SECTIONS 45 AND 48
This notice provides that for any qualified facility or energy property that began
construction under the Physical Work Test
or the Five Percent Safe Harbor in calendar year 2016, 2017, 2018, or 2019, the
Continuity Safe Harbor is satisfied if a
taxpayer places the qualified facility or
energy property in service by the end of
a calendar year that is no more than six
calendar years after the calendar year
during which construction with respect to
that qualified facility or energy property
began. Additionally, for any qualified facility or energy property that began construction under the Physical Work Test or

Bulletin No. 2021–29

the Five Percent Safe Harbor in calendar
year 2020, the Continuity Safe Harbor is
satisfied if a taxpayer places the qualified
facility or energy property in service by
the end of a calendar year that is no more
than five calendar years after the calendar year during which construction with
respect to that qualified facility or energy
property began.

Treatment of Amounts
Paid to Section 170(c)
Organizations under
Employer Leave-based
Donation Programs to Aid
Victims of the COVID-19
Pandemic

SECTION 4. CLARIFICATION
OF METHODS TO SATISFY THE
CONTINUITY REQUIREMENT

Notice 2021-42

This notice further provides that for
any qualified facility or energy property
to which the Continuity Safe Harbor does
not apply, the Continuity Requirement is
satisfied if the taxpayer demonstrates satisfaction of either the Continuous Construction Test or the Continuous Efforts
Test, regardless of whether the Physical
Work Test or the Five Percent Safe Harbor was used to establish the beginning of
construction.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
Notice 2013-29, Notice 2013-60, Notice 2014-46, Notice 2015-25, Notice
2016-31, Notice 2017-04, Notice 201859, Notice 2019-43, Notice 2020-41, and
Notice 2021-5 are modified.
SECTION 6. NO RULE
The IRS will not issue private letter rulings or determination letters to a taxpayer
regarding the application of this notice, the
prior IRS notices, or the beginning of construction requirement under §§ 45 and 48.
SECTION 7. DRAFTING
INFORMATION
The principal author of this notice is
Jennifer Bernardini of the Office of Associate Chief Counsel (Passthroughs &
Special Industries). For further information regarding this notice contact Jennifer
Bernardini on (202) 317-6853 (not a tollfree number).

1

Subsequent to the March 13, 2020,
emergency declaration issued by the
President of the United States under the
authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(Stafford Act) (42 U.S.C. 5121 et seq.)
in response to the ongoing Coronavirus
Disease 2019 (COVID-19) pandemic, the
President issued major disaster declarations under the authority of the Stafford
Act for each of the 50 states, the District
of Columbia, and five U.S. territories (affected geographic areas).1
Notice 2020-46, 2020-27 I.R.B. 7, provided guidance under the Internal Revenue Code (Code) on the federal income
and employment tax treatment to employers and their employees of cash payments
made before January 1, 2021, for the relief
of victims of the COVID-19 pandemic in
the affected geographic areas under employer sponsored leave-based donation
programs. Under leave-based donation
programs, employees can elect to forgo
vacation, sick, or personal leave in exchange for cash payments made by their
employers to charitable organizations described in section 170(c) of the Code (section 170(c) organizations).
Because of the ongoing nature of the
COVID-19 pandemic, the Department of
the Treasury and the Internal Revenue
Service have determined that it is appropriate to extend the treatment provided in
Notice 2020-46 to cash payments made to
section 170(c) organizations after December 31, 2020, and before January 1, 2022.
Accordingly, this notice extends the
federal income and employment tax treatment provided in Notice 2020-46 to cash
payments made to section 170(c) organizations after December 31, 2020, and be-

fore January 1, 2022, that otherwise would
be described in Notice 2020-46.
EFFECT ON OTHER DOCUMENTS
Notice 2020-46 is modified.
DRAFTING INFORMATION
For further information, please contact
Suzanne R. Sinno of the Office of Associate Chief Counsel (Income Tax and Accounting) at (202) 317-4718 (not a tollfree number).
26 CFR 1.6012-1: Individuals required to make
returns of income.

Rev. Proc. 2021-24
SECTION 1. PURPOSE
.01 This revenue procedure provides
procedures for individuals who are not
otherwise required to file Federal income
tax returns for taxable year 2020 to receive advance child tax credit payments
under § 7527A of the Internal Revenue
Code (Code) and third-round economic
impact payments under § 6428B of the
Code. These procedures also permit individuals to claim the 2020 recovery rebate
credit under § 6428 of the Code and the
additional 2020 recovery rebate credit under § 6428A of the Code. Section 2 of this
revenue procedure describes these credits
in further detail.
.02 Section 4 of this revenue procedure
provides a simplified Federal income tax
return filing procedure for individuals
whose gross income is less than their applicable standard deduction amount and
who are not required to file a Federal income tax return for taxable year 2020.
.03 Section 5 of this revenue procedure
provides a procedure for individuals who
are not required to file a Federal income
tax return, whose gross income is less
than their applicable standard deduction
amount, and who have zero adjusted gross
income (AGI) to file an electronic Federal
income tax return for taxable year 2020.
These individuals generally are not able
to file Federal income tax returns elec-

See https://www.fema.gov/coronavirus/disaster-declarations.

Bulletin No. 2021–29

19

July 19, 2021

tronically due to tax return preparation
software and return processing parameters
that do not accept $0 AGI entries. Because
tax returns filed on paper do not pose this
processing issue, the procedure provided
by section 5 of this revenue procedure
does not apply to a Federal income tax return filed on paper, although the procedure
provided by section 4 of this revenue procedure does apply to paper-filed returns of
individuals who are not required to file a
Federal income tax return for taxable year
2020.
.04 The procedures provided by this
revenue procedure do not apply to a resident of American Samoa, Guam, the
Commonwealth of the Northern Mariana
Islands, the Commonwealth of Puerto
Rico (Puerto Rico), or the U.S. Virgin Islands (each, a U.S. territory). A resident
of a U.S. territory other than Puerto Rico
should contact his or her local territory tax
agency for additional information about
the child tax credit and advance child
tax credit payments. A resident of Puerto
Rico may be eligible to claim the child tax
credit from the Internal Revenue Service
(IRS), under procedures to be announced
at a later date, but is not eligible to receive
advance child tax credit payments. A resident of a U.S. territory should contact his
or her local territory tax agency for additional information about third-round economic impact payments, the 2020 recovery rebate credit, and the additional 2020
recovery rebate credit.
.05 An individual who already filed a
Federal income tax return for taxable year
2020 does not need to file any additional
forms or otherwise contact the IRS to (i)
receive advance child tax credit payments
for each eligible qualifying child, as defined in § 24(c) (2020 CTC qualifying
child) shown on that return; (ii) receive a
third-round economic impact payment for
themselves and for each eligible dependent (as defined in § 152) shown on that
return; or (iii) claim a previously claimed
2020 recovery rebate credit and additional 2020 recovery rebate credit for themselves and for each eligible 2020 CTC
qualifying child.
.06 An individual who filed a Federal
income tax return for taxable year 2019,
including by entering information into the
“Non-Filers: Enter Payment Info Here”
tool in 2020, does not need to file any

July 19, 2021

additional forms or otherwise contact the
IRS to receive an advance child tax credit payment for the 2020 CTC qualifying
children shown on that return or to receive
a third-round economic impact payment
for themselves and for each dependent
shown on that return. Such individual can
claim the 2020 recovery rebate credit and
additional 2020 recovery rebate credit on a
Federal income tax return for taxable year
2020 if the individual did not receive the
full amount of these credits as first- and
second-round economic impact payments.
SECTION 2. BACKGROUND
.01 Child Tax Credit and Credit for
Other Dependents.
(1) Child tax credit. Under § 24(a), a
taxpayer may claim a credit against the
taxpayer’s Federal income tax liability (as
imposed by chapter 1 of subtitle A of the
Code) for the taxable year with respect to
each of the taxpayer’s qualifying children
for whom the taxpayer is allowed a deduction under § 151 of the Code. In the case
of a taxable year beginning after December 31, 2017, and before January 1, 2026,
no child tax credit is allowed for a qualifying child unless the social security number
(SSN) of the child, which must be valid
for employment, is provided on the return.
See § 24(h)(7). If the taxpayer’s child was
a U.S. citizen when the child received the
SSN, the SSN is valid for employment.
(2) Credit for other dependents. For the
taxable years described in section 2.01(1)
of this revenue procedure, a $500 credit (credit for other dependents) may be
available for a dependent of the taxpayer
who is not a qualifying child or who is a
qualifying child but does not have an SSN
valid for employment. See § 24(h)(4).
The credit for other dependents is not addressed by this revenue procedure because
the credit is nonrefundable, and therefore
is not applicable to individuals described
in section 4.02 or 5.02 of this revenue procedure.
(3) Nonresident aliens. Only nonresident aliens who are U.S. nationals; residents of Canada, Mexico, or South Korea;
or students and business apprentices from
India who qualify for benefits under Article 21(2) of the income tax treaty with India may claim the child tax credit or credit
for other dependents.

20

.02 American Rescue Plan Changes to
the Child Tax Credit. Section 9611(a) and
(b)(1) of the American Rescue Plan Act
of 2021 (American Rescue Plan), Public
Law 117-2, 135 Stat. 4, 144-148 (March
11, 2021), added §§ 24(i) and 7527A to
the Code. The American Rescue Plan
amended the provisions under § 24 that
address the child tax credit for qualifying
children but did not amend the provisions
under § 24 that address the credit for other
dependents.
(1) Special child tax credit rules under
§ 24. With regard to any taxable year beginning after December 31, 2020, and before January 1, 2022 (2021 taxable year),
§ 24(i) amends the child tax credit rules
set forth in § 24 to provide the following:
(a) The definition of a qualifying child
has been expanded to include a child who
has not attained the age of 18 as of the end
of the 2021 taxable year (2021 CTC qualifying child). See § 24(i)(2)(A).
(b) The child tax credit for 2021 CTC
qualifying children is fully refundable for
a taxpayer if the taxpayer (or the spouse
of the taxpayer filing a joint return) has
a principal place of abode in the United
States (determined as provided in § 32 of
the Code) for more than one-half of taxable year 2021 (U.S. principal place of
abode status). Full refundability means
that taxpayers can benefit from the maximum credit even if they do not have
earned income or do not owe any Federal
income tax. See § 24(i)(1).
(c) Taxpayers claiming the child tax
credit for the 2021 taxable year will receive up to $3,000 for each 2021 CTC
qualifying child who is between the ages
of 6 and 17 as of the end of the 2021 taxable year, and $3,600 for each 2021 CTC
qualifying child who is under the age of 6
as of the end of the 2021 taxable year. See
§ 24(i)(2) and (3).
(2) Advance payment of the child tax
credit under § 7527A.
(a) Establishment of advance child
tax credit payment program. Section
7527A(a) requires the Secretary of the
Treasury or her delegate (Secretary) to establish a program for making periodic advance child tax credit payments to taxpayers the total of which, during any calendar
year, equals the “annual advance amount”
(as defined in § 7527A(b)(1)) determined
with respect to that taxpayer for that cal-

Bulletin No. 2021–29

endar year. These advance child tax credit
payments must be made no earlier than
July 1, 2021, and no later than December
31, 2021, and generally must be made in
equal amounts. See §§ 7527A(a), (b)(3),
and (f).
(b) Definition of annual advance
amount. In general, § 7527A(b)(1) defines the term “annual advance amount”
to mean, with respect to any taxpayer for any calendar year, the amount (if
any) that the Secretary estimates as being equal to 50 percent of the refundable
child tax credit amount that would be
treated as allowed by reason of § 24(i)(1)
for the taxpayer’s taxable year beginning
in that calendar year if (i) the U.S. principal place of abode status is determined
with respect to the “reference taxable
year” (as defined in § 7527A(b)(2)); (ii)
the taxpayer’s modified adjusted gross
income for that taxable year is equal to
the taxpayer’s modified adjusted gross
income for the reference taxable year;
(iii) the only children of the taxpayer for
that taxable year are qualifying children
properly claimed on the taxpayer’s return of tax for the reference taxable year;
and (iv) the ages of those children (and
the status of those children as 2020 CTC
qualifying children) are determined for
that taxable year by taking into account
the passage of time since the reference
taxable year.
(c) Reference taxable year. In general,
the term “reference taxable year” means,
with respect to any taxpayer for any calendar year, the taxpayer’s taxable year
beginning in the preceding calendar year
(that is, the taxpayer’s 2020 taxable year)
or, in the case of taxpayer who did not file
a Federal income tax return for that taxable year, the taxpayer’s taxable year beginning in the second preceding calendar
year (that is, the taxpayer’s 2019 taxable
year).
(d) Authority to issue guidance. Section 7527A(g) provides, in relevant part,
that the Secretary shall issue such regulations or other guidance as the Secretary
determines to be necessary or appropriate
to carry out the purposes of § 7527A.
.03 2020 Recovery Rebate Credit and
First-Round Economic Impact Payments.
(1) 2020 recovery rebate credit. Section
2201(a) of the Coronavirus Aid, Relief,
and Economic Security Act (or CARES

Bulletin No. 2021–29

Act), Public Law 116-136, 134 Stat. 281,
335-337 (March 27, 2020) added § 6428 to
the Code. Section 6428(a) provides an eligible individual (as defined in § 6428(d))
a refundable tax credit against the eligible
individual’s Federal income tax liability
(as imposed by subtitle A of the Code) for
the eligible individual’s first taxable year
beginning in 2020 (2020 recovery rebate
credit).
(a) Definition of eligible individual.
Section 6428(d) defines the term “eligible
individual” for purposes of § 6428 to mean
any individual other than (i) a nonresident
alien individual, (ii) an individual who can
be claimed as a dependent for a deduction
under § 151 for the taxable year, or (iii) an
estate or trust. To receive a 2020 recovery
rebate credit, § 6428(g) requires that an
eligible individual have an SSN valid for
employment or file a joint return with an
eligible individual who has an SSN valid
for employment.
(b) Amount of 2020 recovery rebate
credit. Section 6428(a) provides that the
amount of the 2020 recovery rebate credit equals the sum of (i) $1,200 per eligible individual ($2,400 in the case of two
eligible individuals filing a joint return)
and (ii) an amount equal to the product
of $500 multiplied by the number of
2020 CTC qualifying children of the eligible individual. Section 6428(g)(1)(C)
and (g)(3) does not take into account a
2020 CTC qualifying child who does not
have an SSN valid for employment or an
adoption taxpayer identification number issued by the IRS (ATIN). Section
6428(g) reduces the $2,400 amount for
joint filers to $1,200 if one spouse does
not have an SSN valid for employment
and neither spouse was a member of the
Armed Forces of the United States at
any time during the taxable year. Section
6428(c) provides phaseouts of the credit
amount based on an eligible individual’s
AGI. Section 6428(e) further reduces the
credit amount by the aggregate refunds
allowed to the eligible individual as an
advance refund in 2020 (first-round economic impact payments).
(2) First-round economic impact payments. Section 6428(f) addresses the
payment of advanced refunds and credits
during calendar year 2020. The IRS has
disbursed the first-round economic impact
payments. See § 6428(f)(3)(A).

21

.04 Additional 2020 Recovery Rebate
Credit and Second-Round Economic Impact Payments.
(1) Additional 2020 recovery rebate
credit. Section 272(a) of the COVID-related Tax Relief Act of 2020, enacted in
Division N of Title II of the Consolidated Appropriations Act, 2021, Public Law
116-260, 134 Stat. 1182, 1965-1971 (December 27, 2020), added § 6428A to the
Code. Section 6428A(a) provides an eligible individual, in addition to the refundable tax credit allowed under § 6428(a), a
refundable tax credit against the eligible
individual’s Federal income tax liability
(as imposed by subtitle A of the Code) for
the eligible individual’s first taxable year
beginning in 2020 (additional 2020 recovery rebate credit).
(a) Definition of eligible individual. Section 6428A(d) defines the term “eligible individual” for purposes of § 6428A to mean
any individual other than (i) a nonresident
alien individual, (ii) an individual who can
be claimed as a dependent for a deduction
under § 151 for the taxable year, or (iii)
an estate or trust. To receive an additional 2020 recovery rebate credit, § 6428A(g)
requires that an eligible individual have an
SSN valid for employment or file a joint return with an eligible individual who has an
SSN valid for employment.
(b) Amount of additional 2020 recovery
rebate credit. Section 6428A(a) provides
that the amount of the additional 2020
recovery rebate credit equals the sum of
(i) $600 per eligible individual ($1,200 in
the case of two eligible individuals filing
a joint return) and (ii) an amount equal to
the product of $600 multiplied by the number of 2020 CTC qualifying children of
the eligible individual. Section 6428A(g)
(3) and (4) does not take into account a
2020 CTC qualifying child who does not
have an SSN valid for employment or
an ATIN. Section 6428A(g) reduces the
$1,200 amount for joint filers to $600 if
one spouse does not have an SSN valid
for employment and neither spouse was a
member of the Armed Forces of the United States at any time during the taxable
year. Section 6428A(c) provides phaseouts of the credit amount based on an eligible individual’s AGI. Section 6428A(e)
further reduces the credit amount by the
aggregate refunds allowed to the eligible
individual as an advance refund in Decem-

July 19, 2021

ber 2020 and January 2021 (second-round
economic impact payments).
(2) Second-round economic impact
payments. Section 6428A(f) addresses the
payment of advanced refunds and credits during calendar year 2020. All second-round economic impact payments have
been disbursed. See § 6428A(f)(3)(A).
.05 2021 Recovery Rebate Credit and
Third-Round Economic Impact Payments.
(1) 2021 recovery rebate credit. Section 9601(a) of the American Rescue
Plan added § 6428B to the Code. Section
6428B(a) provides an eligible individual
a refundable tax credit against the eligible
individual’s Federal income tax liability
(as imposed by subtitle A of the Code) for
the eligible individual’s first taxable year
beginning in 2021 (2021 recovery rebate
credit).
(a) Definition of eligible individual.
Section 6428B(c) defines the term “eligible individual” for purposes of § 6428B to
mean any individual other than (i) a nonresident alien individual, (ii) an individual
who is a dependent of another taxpayer (as
defined in § 152) for the taxable year, or
(iii) an estate or trust.
(b) Amount of 2021 recovery rebate
credit. Section 6428B(a) provides that the
amount of the 2021 recovery rebate credit
equals the sum of (i) $1,400 per eligible
individual ($2,800 in the case of a joint return) and (ii) an amount equal to the product of $1,400 multiplied by the number of
the eligible individual’s dependents (within the meaning of § 152). If an eligible individual does not have an SSN, or if two
eligible individuals who do not have an
SSN file a joint return, § 6428B(e)(2) does
not allow the $1,400 for the eligible individual or $2,800 for the joint return, but
will allow an amount for dependents (as
defined in § 152). Section 6428B(e)(2) reduces the $2,800 amount for a joint return
to $1,400 if one spouse has an SSN, one
spouse does not have an SSN, and neither
spouse was a member of the Armed Forces of the United States at any time during
the taxable year. Only a dependent with an
SSN or an ATIN is counted for purposes
of determining the amount of the 2021 recovery rebate credit. Section 6428B(e)(2)
(C) and (D). For purposes of qualifying for
the 2021 recovery rebate credit, any type
of SSN is sufficient. See § 6428B(e)(2)(D)
(i). Section 6428B(d) provides phaseouts

July 19, 2021

of the credit amount based on an eligible
individual’s AGI.
(2) Third-round economic impact payments. Section 6428B(g) provides eligible
individuals with advance refund payments
of the 2021 recovery rebate credit (thirdround economic impact payments). All
third-round economic impact payments
must be disbursed to eligible individuals
before January 1, 2022. See § 6428B(g)
(3).
(a) Calculation of payment amount. If
available to the Secretary as of the eligibility and payment determination date for
an eligible individual, the amount of the
eligible individual’s third-round economic impact payment is determined based
on the eligible individual’s 2020 Federal
income tax return. See § 6428B(g)(5)(A).
If an eligible individual’s 2020 Federal
income tax return has not been processed
as of the eligibility and payment determination date for the eligible individual, the
eligible individual’s 2019 Federal income
tax return will be used to determine the
amount of the eligible individual’s thirdround economic impact payment. See §
6428B(g)(1), (5)(A).
(b) Plus-up payments. If an eligible individual who receives the third-round economic impact payment determined before
the IRS processes the eligible individual’s
2020 Federal income tax return is entitled
to a larger payment based on the eligible
individual’s 2020 Federal income tax return, the eligible individual will receive
an additional “plus-up” payment making
up the difference when the eligible individual’s 2020 Federal income tax return is
processed. See § 6428B(g)(5)(B).
SECTION 3. SCOPE
.01 Overview. To allow individuals
who are not required to file a federal tax
return or wish to file a federal tax return
electronically to receive advance child
tax credit payments, third-round economic impact payments, the 2020 recovery
rebate credit, and the additional 2020 recovery rebate credit, the IRS needs certain
information about these individuals that
would ordinarily be provided by a federal
tax return. The procedures set forth in section 4 and section 5 of this revenue procedure allow the individuals described in
those sections to provide this information

22

either in the form of a simplified return or
an electronically filed return.
.02 Purpose of Simplified Filing Procedure under Section 4. In order to ensure
that individuals otherwise not required to
file a Federal income tax return in 2020 are
able to receive (i) advance child tax credit
payments and (ii) third-round economic
impact payments, section 4 of this revenue
procedure provides a procedure for these
individuals to file simplified Federal income tax returns for 2020. This procedure
also permits individuals to claim the 2020
recovery rebate credit and additional 2020
recovery rebate credit on that simplified
Federal income tax return.
.03 Purposes of Zero AGI Filing Procedure under Section 5. The Department of
the Treasury (Treasury Department) and the
IRS also are aware that individuals otherwise not required to file Federal income tax
returns may desire to file Federal income
tax returns electronically. These individuals may use tax return preparation software
that does not permit them to file pursuant
to the simplified procedure provided by
section 4 of this revenue procedure, or the
individuals may need to file complete Federal income tax returns to receive certain
State or local benefits. The Treasury Department and the IRS understand that many
Federal income tax returns cannot be filed
electronically if the filer reports an AGI of
zero (as opposed to an AGI of $1 or more)
and does not claim the 2020 recovery rebate credit, the additional 2020 recovery
rebate credit, or any amount as a refund.
To facilitate the processing of electronic returns filed by zero AGI individuals not otherwise required to file Federal income tax
returns, section 5 of this revenue procedure
provides a procedure for these individuals
to file complete electronic Federal income
tax returns to receive (i) advance child tax
credit payments and (ii) third-round economic impact payments.
SECTION 4. SPECIAL PROCEDURE
FOR FILING SIMPLIFIED PAPER
OR ELECTRONIC TAX RETURN IF
INDIVIDUAL IS NOT REQUIRED
TO FILE A FEDERAL INCOME TAX
RETURN FOR TAXABLE YEAR
2020
.01 Federal Income Tax Return Filed
by Mail or Electronically. Under the sim-

Bulletin No. 2021–29

plified procedure set forth in this section
4, a simplified return may be filed, on
paper or electronically, on a Form 1040,
U.S. Individual Income Tax Return, Form
1040-SR, U.S. Tax Return for Seniors, or
Form 1040-NR, U.S. Nonresident Alien
Income Tax Return. A Federal income tax
return for taxable year 2020 filed under
the simplified procedure in this section 4
will result in the following:
(1) The Secretary will use the information provided on the simplified return to
(i) estimate the annual advance amount
for the simplified return filer, and (ii) calculate the third-round economic impact
payment for which the simplified return
filer is eligible. As noted in section 2.05(1)
(a) of this revenue procedure, a nonresident alien is not eligible under § 6428B(c)
to receive third-round economic impact
payments.
(2) The simplified return filer may
claim the 2020 recovery rebate credit and
additional 2020 recovery rebate credit
when filing Form 1040 or Form 1040SR. As noted in sections 2.03(1)(a) and
2.04(1)(a) of this revenue procedure, a
nonresident alien is not eligible under §§
6428(d) and 6428A(d) to claim the 2020
recovery rebate credit or additional 2020
recovery rebate credit.
.02 Definition of Simplified Return Filer. For purposes of this section 4, a “simplified return filer” is an individual (1)
who is not required to file a Federal income tax return for taxable year 2020, (2)
whose gross income for that taxable year
is less than their applicable standard deduction amount, and (3) who has not filed
a paper or electronic Federal income tax
return for that taxable year. A simplified
return filer, however, does not include a
resident of a U.S. territory.
.03 Simplified Filing Method.
(1) Overview. In the case of a simplified return filer, the IRS will process the
simplified return filer’s Form 1040, Form
1040-SR, or Form 1040-NR for taxable
year 2020 to calculate the Federal income
tax benefits described in section 3.01 of
this revenue procedure if the form is prepared in the manner required by this section 4.03. The Form 1040, Form 1040-SR,
or Form 1040-NR must include the information described in this section 4.03.

Bulletin No. 2021–29

(2) Write Rev. Proc. 2021-24 on form. A
simplified return filer who files the Federal income tax return by mail must indicate
“Rev. Proc. 2021-24” above the printed
material at the top of page 1 of the Form
1040, Form 1040-SR, or Form 1040-NR.
(3) Filing status. A simplified return filer must select their filing status for taxable
year 2020 at the top of Form 1040, Form
1040‑SR, or Form 1040-NR.
(4) Required general information.
(a) In general. A simplified return filer
must enter their name, mailing address,
and SSN or IRS individual taxpayer identification number (ITIN), and the name
and SSN or ITIN of their spouse if filing
a joint return, on the appropriate lines
of Form 1040, Form 1040-SR, or Form
1040-NR.
(b) Special rules for certain nonresident or resident alien simplified return
filers. A nonresident or resident alien
simplified return filer who does not have
and is not eligible to receive an SSN and
does not have an ITIN must attach Form
W-7, Application for IRS Individual Taxpayer Identification Number, to Form
1040, Form 1040-SR, or Form 1040-NR
to apply for an ITIN. Such nonresident
alien simplified return filer is not eligible for the 2020 recovery rebate credit,
additional 2020 recovery rebate credit, or
third-round economic impact payments.
Unless filing a joint return with someone
who has an SSN, such resident alien simplified return filer is not eligible for the
2020 recovery rebate credit or additional 2020 recovery rebate credit. Unless a
return includes a dependent who has an
SSN or an ATIN or is filed jointly with
someone who has an SSN, such resident
alien simplified return filer is not eligible
for third-round economic impact payments.
(5) Individuals who could be claimed
as dependents by other individuals. A simplified return filer must check all applicable boxes in the area immediately below
the virtual currency line for each individual who could be claimed as a dependent by
any other individual for taxable year 2020.
(6) General information regarding dependents.
(a) In general. A simplified return filer
should provide information on the appro-

23

priate lines of Form 1040, Form 1040‑SR,
or Form 1040-NR regarding each dependent at the end of taxable year 2020 who
has an SSN or an ATIN. For each dependent, a simplified return filer must provide
the name, SSN or ATIN, and relationship
to the individual.
(b) Qualifying children. A simplified
return filer should check the child tax
credit box in Column (4) for each dependent who has an SSN that is valid for employment and is a 2020 CTC qualifying
child of the simplified return filer for taxable year 2020.
(7) Limited information to provide in
lines 1 through 38. A simplified return filer must leave blank lines 1 through 38 of
Form 1040 or Form 1040-SR, even if the
values for these lines are in fact not zero,
except as provided in this section 4.03(7):
(a) Lines 2b, 9, and 11. A simplified
return filer who files their Federal income
tax return electronically must enter $1 on
lines 2b, 9, and 11.
(b) Line 12. A simplified return filer
must enter the applicable standard deduction amount, if any, for their filing status
on line 12. Form 1040-NR filers who file
their Federal income tax return electronically must enter $1 on lines 7 and 8 of
Schedule A (Form 1040-NR) and line 12
of Form 1040-NR.
(c) Line 15. A simplified return filer
must enter $0 on line 15.
(d) Lines 30, 32, 33, 34, and 35a (2020
recovery rebate credit entries). A simplified
return filer who files Form 1040 or Form
1040-SR may enter the sum of the filer’s
2020 recovery rebate credit and additional
2020 recovery rebate credit on lines 30, 32,
33, 34, and 35a. The credit amounts should
be computed using the Recovery Rebate
Credit Worksheet for line 30 in the 2020
Instructions for Form 1040 and 1040-SR,
available at www.irs.gov/Form1040. Providing the correct amount will speed up
the payment of the 2020 recovery rebate
credit and additional 2020 recovery rebate
credit, as well as the third-round economic
impact payment. The IRS will correct any
incorrect amount (other than $0) claimed
on lines line 30, 32, 33, 34, or 35a, but the
correction will delay processing of the return and therefore enrollment for advance
child tax credit payments.

July 19, 2021

(e) Line 35a checkbox (split direct deposit indicator). A simplified return filer should not check the box on line 35a
because neither advance child tax credit
payments, nor third-round economic impact payments, may be divided among
multiple accounts.
(f) Lines 35b through 35d (direct deposit information). A simplified return
filer may request the direct deposit of
their advance child tax credit payments
and any future third-round economic impact payment into their account at a bank
or other financial institution by entering
their direct deposit information on lines
35b through 35d. A simplified return filer
must not request their advance child tax
credit payment or third-round economic
impact payment to be deposited into an
account that is not in the name of that
simplified return filer (for example, a
simplified return filer must not request a
direct deposit of their advance child tax
credit payment or third-round economic
impact payment into their tax return preparer’s account).
.04 Signature. A simplified return filer must sign the return under penalties
of perjury, including the filer’s identity
protection personal identification number
(that is, the filer’s IP PIN), if applicable,
as part of the filer’s signature. In addition, a simplified return filer may enter the
identifying information of any third-party
designee, if applicable, at the bottom of
page 2 of Form 1040, Form 1040-SR, or
Form 1040-NR. A simplified return filer
who has been assigned an IP PIN, but has
misplaced it, may retrieve the IP PIN at
https://www.irs.gov/identity-theft-fraudscams/retrieve-your-ip-pin.
.05 Simplified Return Is a Federal Income Tax Return. A simplified return is a
Federal income tax return for all purposes,
whether filed electronically or on paper in
accordance with the procedure described
in section 4.03 of this revenue procedure.
.06 Accuracy of Return. Individuals
who report incorrect information regarding qualifying children or other dependents or otherwise provide incorrect information on simplified returns may be liable
for civil or criminal penalties. However,
the IRS will not challenge the accuracy of
the items of income reported by simplified
return filers on a simplified return filed in
accordance with this section 4.

July 19, 2021

SECTION 5. SPECIAL PROCEDURE
FOR FILING COMPLETE
ELECTRONIC TAX RETURN IF
INDIVIDUAL HAS NO TAXABLE
YEAR 2020 ADJUSTED GROSS
INCOME
.01 Federal Income Tax Return Filed
Electronically.
(1) Electronic filing procedure. Subject to section 5.01(2) of this revenue
procedure, under the requirements in this
section 5, a zero AGI filer (as defined in
section 5.02 of this revenue procedure)
may file electronically Form 1040, Form
1040-SR, or Form 1040-NR for taxable
year 2020. A Federal income tax return
for taxable year 2020 filed under the procedure in this section 5, will result in the
following:
(a) The Secretary will use the information provided in the electronic return to
(i) estimate the annual advance amount
for the zero AGI filer, and (ii) calculate
the third-round economic impact payment
for which the zero AGI filer is eligible. As
noted in section 2.05(1)(a) of this revenue
procedure, a nonresident alien is not eligible under § 6428B(c) to receive thirdround economic impact payments.
(b) The zero AGI filer may claim the
2020 recovery rebate credit and additional 2020 recovery rebate credit when
filing Form 1040 or Form 1040-SR. As
noted in sections 2.03(1)(a) and 2.04(1)
(a) of this revenue procedure, a nonresident alien is not eligible under §§ 6428(d)
and 6428A(d) to claim the 2020 recovery
rebate credit and additional 2020 recovery
rebate credit, respectively.
(2) Procedure does not apply to paper returns. The special procedure in this
section 5 applies only to an electronically
filed return for a zero AGI filer and does
not apply to a return filed on paper.
.02 Definition of Zero AGI Filer. For
purposes of this section 5, a “zero AGI
filer” is an individual (1) who is not required to file a Federal income tax return
for taxable year 2020, (2) whose gross
income for that taxable year is less than
the their applicable standard deduction
amount, (3) who has zero AGI for that taxable year (that is, the individual has zero
AGI for that taxable year reportable on
line 11 of Form 1040, Form 1040-SR, or
Form 1040-NR), and (4) has not yet filed a

24

Federal income tax return for that taxable
year. A zero AGI filer, however, does not
include a resident of a U.S. territory.
.03 Required Information. In addition
to all other information required to be entered on Form 1040, Form 1040-SR, or
Form 1040-NR, a zero AGI filer must enter the following:
(1) $1 as taxable interest on line 2b of
the form;
(2) $1 as total income on line 9 of the
form;
(3) $1 as AGI on line 11 of the form;
and
(4) $1 as itemized deductions on lines 7
and 8 of Schedule A (Form 1040-NR) and
line 12 of Form 1040-NR (Form 1040-NR
filers only).
.04 Signature. A zero AGI filer must
sign the return under penalties of perjury
including the filer’s IP PIN, if applicable,
as part of the filer’s signature. In addition,
a zero AGI filer may enter the identifying
information of any third-party designee, if
applicable, at the bottom of page 2 of Form
1040, Form 1040-SR, or Form 1040-NR.
A zero AGI filer who has been assigned an
IP PIN, but has misplaced it, may retrieve
the IP PIN at https://www.irs.gov/identitytheft-fraud-scams/retrieve-your-ip-pin.
.05 Accuracy of Return. Individuals
who report incorrect information regarding qualifying children or other dependents or otherwise provide incorrect information on their returns may be liable for
civil or criminal penalties. However, the
IRS will not challenge the accuracy of the
items of income reported by zero AGI filers on their returns in accordance with this
section 5.
SECTION 6. DRAFTING AND
ADDITIONAL INFORMATION
The principal author of this revenue
procedure is the Office of the Associate
Chief Counsel (Procedure and Administration). Individuals can receive additional information regarding the third-round
economic impact payments, 2020 recovery rebate credit, and additional 2020
recovery rebate credit through the IRS
Economic Impact Payment phone number, 800-919-9835. The IRS will continue
to provide additional information regarding advance child tax credit payments
throughout 2021.

Bulletin No. 2021–29

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

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

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

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

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

Bulletin No. 2021–29

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.

July 19, 2021

Numerical Finding List1
Bulletin 2021–29

Notices:
2021-39, 2021-27 I.R.B. 3
2021-40, 2021-28 I.R.B. 15
2021-41, 2021-29 I.R.B. 17
2021-42, 2021-29 I.R.B. 19

Revenue Procedures:
2021-28, 2021-27 I.R.B. 5
2021-29, 2021-27 I.R.B. 12
2021-24, 2021-29 I.R.B. 19

Revenue Rulings:
2021-12, 2021-27 I.R.B. 1

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

July 19, 2021

ii

Bulletin No. 2021–29

Finding List of Current Actions on
Previously Published Items1
Bulletin 2021–29

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

Bulletin No. 2021–29

iii

July 19, 2021

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

INTERNAL REVENUE BULLETIN

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

We Welcome Comments About the Internal Revenue Bulletin

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A40048a148125daa3. Public record. Not legal advice.