These synopses are intended only as aids to the reader in

HIGHLIGHTS

OF THIS ISSUE





Bulletin No. 2021–4

January 25, 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.

EXEMPT ORGANIZATIONS

Rev. Proc. 2021-8, page 502.

This revenue procedure makes certain modifications to Rev.

Proc. 2021-5 to allow for the new electronic submission

process on www.pay.gov for the Form 1024-A, Application

for Recognition of Exemption Under Section 501(c)(4) of the

Internal Revenue Code. It also provides a 90-day transition

relief period, during which paper Form 1024-A applications

will be accepted by EO Determinations.

the Independent Office of Appeals (Appeals) of a proposed

adverse determination made by the office that is responsible

for examinations of tax-advantaged bonds, presently the Office of Tax Exempt Bonds, with respect to issues within the

scope of this revenue procedure.

Rev. Rul. 2021-2, page 495.

EMPLOYEE PLANS

This revenue ruling obsoletes Notice 2020-32, 2020-21

I.R.B. 837 and Revenue Ruling 2020-27, 2050-50 I.R.B.

1552, relating to the deductibility of certain expenses paid

for with proceeds from a Paycheck Protection Program loan,

due to the enactment of section 276(a) of the COVID-related

Tax Relief Act of 2020.

T.D. 9937, page 495.

TAX CONVENTIONS

This document sets forth final regulations relating to amendments made to section 402(c) of the Internal Revenue Code

(Code) by section 13613 of the Tax Cuts and Jobs Act, Public Law 115-97 (131 Stat. 2054) (TCJA). Section 13613 of

TCJA provides an extended rollover period for a qualified plan

loan offset, which is a type of plan loan offset.

INCOME TAX

Rev. Proc. 2021-10, page 503.

Rev. Proc. 2021-10 provides procedures for an issuer of

tax-advantaged bonds to request an administrative appeal to

Finding Lists begin on page ii.

Ann. 2021-1, page 506.

The Competent Authorities of the United States and Italy

entered into a Competent Authority Arrangement under

paragraph 3 of Article 25 (Mutual Agreement Procedure)

clarifying the application of subparagraph 1(b) of Article

19 (Government Services) with respect to remuneration

paid by the United States to U.S. citizens or dual nationals

who are residents of Italy and who are rendering services

to the United States in U.S. embassies and consulates in

Italy.

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.

January 25, 2021 

Bulletin No. 2021–4

Part I

Rev. Rul. 2021-2

This ruling obsoletes Notice 2020-32,

2020-21 I.R.B. 837 (May 18, 2020), and

Rev. Rul. 2020-27, 2020-50 I.R.B. 1552

(Dec. 7, 2020), due to the enactment of

§ 276(a) of the COVID-related Tax Relief

Act of 2020 (Act), enacted as Subtitle B

of Title II of Division N of the Consolidated Appropriations Act, 2021, Public Law

116-260, 134 Stat. 1182 (Dec. 27, 2020).

Notice 2020-32 and Rev. Rul. 2020-27

provide that certain taxpayers (eligible recipients) may not deduct certain otherwise

deductible expenses to the extent that the

payment of such expenses results (or is

expected to result) in the forgiveness of a

loan (covered loan) guaranteed under the

Paycheck Protection Program authorized

under § 7(a)(36) of the Small Business Act

(15 U.S.C. 636(a)(36)) (SBA), as enacted

by § 1102 of the Coronavirus Aid, Relief,

and Economic Security Act (CARES Act),

Public Law 116-136, 134 Stat. 281, 28693 (Mar. 27, 2020). Section 1106(b) of

the CARES Act provides for the forgiveness of covered loans and § 1106(i) of the

CARES Act provides, for purposes of the

Internal Revenue Code, that any amount

that otherwise would be includible in an

eligible recipient’s gross income by reason of such forgiveness is excluded from

gross income.

Section 1106(i) of the CARES Act was

redesignated, and transferred to § 7A(i) of

the SBA, and amended by the Economic

Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which was enacted as Title III of Division N of the Consolidated Appropriations Act, 2021. Section

276(a) of the Act amended § 7A(i) of the

SBA to provide that no amount shall be

included in the gross income of the eligible recipient by reason of forgiveness of

indebtedness described in § 7A(b) of the

SBA. See § 7A(i)(1) of the SBA. In addition, § 276(a) provides that no deduction

shall be denied, no tax attribute shall be

reduced, and no basis increase shall be

denied, by reason of the exclusion from

gross income provided by § 7A(i)(1)

1

of the SBA. See § 7A(i)(2) of the SBA.

The amendment made by § 276(a) of the

Act applies to taxable years ending after

March 27, 2020, the date of the enactment

of the CARES Act. See § 276(a)(2) of the

Act.

As a result of the amendment made by

§ 276(a) of the Act regarding the Federal income tax consequences of covered

loan forgiveness, the conclusion stated in

Notice 2020-32, and the holding stated in

Rev. Rul. 2020-27, are no longer accurate

statements of the law. Accordingly, Notice

2020-32 and Rev. Rul. 2020-27 are declared obsolete as of the effective date of

the amendment made by § 276(a) of the

Act.

DRAFTING INFORMATION

The principal authors of this revenue ruling are Charles Gorham, Charles

Magee and Bruce Chang, Office of the

Associate Chief Counsel (Income Tax &

Accounting). For further information regarding this revenue ruling, please contact

Mr. Chang at (202) 317-4870 or Patrick

Clinton at (202) 317-4651 (not toll-free

numbers).

26 CFR 1.402(c)-3

T.D. 9937

DEPARTMENT OF THE

TREASURY

Internal Revenue Service

26 CFR Part 1

Rollover Rules for Qualified

Plan Loan Offset Amounts

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document sets forth

final regulations relating to amendments

made to section 402(c) of the Internal

Revenue Code (Code) by section 13613

of the Tax Cuts and Jobs Act (TCJA). Section 13613 of TCJA provides an extended

rollover period for a qualified plan loan

offset, which is a type of plan loan offset.

These regulations affect participants, beneficiaries, sponsors, and administrators of

qualified employer plans.

DATES: Effective Date: These regulations are effective on January 6, 2021.

Applicability Date: For date of applicability, see §1.402(c)-3(b)(2).

FOR FURTHER INFORMATION

CONTACT: Naomi Lehr at (202) 3174102, Vernon Carter at (202) 317-6799,

or Pamela Kinard at (202) 317-6000 (not

toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

This document amends 26 CFR part 1,

by adding §1.402(c)-3 to the Income Tax

Regulations to reflect changes to section

402(c) of the Code, as amended by section 13613 of TCJA (Public Law 115-97

(131 Stat. 2054)).

1. Plan Loans, Eligible Rollover

Distributions, and Plan Loan Offset

Amounts

Section 72(p)(1) of the Code provides

that if, during any taxable year, a participant or beneficiary receives (directly or

indirectly) any amount as a loan from a

qualified employer plan (as defined in

section 72(p)(4)(A)),1 that amount shall

be treated as having been received by the

individual as a distribution from the plan.

For certain plan loans, section 72(p)(2)

provides an exception to the general treatment of loans as distributions under section 72(p)(1).

For the exception under section 72(p)

(2) to apply so that a plan loan is not treated as a distribution under section 72(p)(1)

Under section 72(p)(4), a qualified employer plan means a qualified plan, a section 403(a) annuity plan, a section 403(b) plan, and any governmental plan.

Bulletin No. 2021–4

495

January 25, 2021

for the taxable year in which the loan is

received, the loan generally must satisfy

three requirements:

(1) The loan, by its terms, must satisfy

the limits on loan amounts, as described in

section 72(p)(2)(A);

(2) The loan, by its terms, generally

must be repayable within 5 years, as described in section 72(p)(2)(B); and

(3) The loan must require substantially level amortization over the term of the

loan, as described in section 72(p)(2)(C).

Section 401(a)(31) requires that a plan

qualified under section 401(a) provide

for the direct transfer of eligible rollover

distributions. A similar rule applies to section 403(a) annuity plans, section 403(b)

tax-sheltered annuities, and section 457

eligible governmental plans. See generally sections 403(a)(1), 403(b)(10), and

457(d)(1)(C).

Sections 402(c)(3) and 408(d)(3) provide that any amount distributed from a

qualified plan or individual retirement account or annuity (IRA) will be excluded

from income if it is transferred to an eligible retirement plan no later than the 60th

day following the day the distribution is

received. A similar rule applies to section 403(a) annuity plans, section 403(b)

tax-sheltered annuities, and section 457

eligible governmental plans. See generally sections 403(a)(4)(B), 403(b)(8)(B),

and 457(e)(16)(B).

Sections 402(c)(3)(B) and 408(d)(3)

(I) provide that the Secretary may waive

the 60-day rollover requirement “where

the failure to waive such requirement

would be against equity or good conscience, including casualty, disaster,

or other events beyond the reasonable

control of the individual subject to such

requirement.” See generally Rev. Proc.

2020-46, 2020-45 I.R.B. 995, which sets

forth a self-certification procedure that

taxpayers may use in certain circumstances to claim a waiver of the 60-day

deadline for completing a rollover under

section 402(c)(3)(B) or 408(d)(3)(I), and

Rev. Proc. 2020-4, 2020-1 I.R.B. 148,

which sets forth procedures that taxpayers may use to request a waiver of the

60-day rollover deadline by submitting a

request for a private letter ruling.2

Section 1.402(c)-2, Q&A-3(a), provides that, unless specifically excluded,

an eligible rollover distribution means any

distribution to an employee (or to a spousal distributee described in §1.402(c)-2,

Q&A-12(a)) of all or any portion of the

balance to the credit of the employee in a

qualified plan. Section 1.402(c)-2, Q&A3(b), provides that certain distributions

(for example, required minimum distributions under section 401(a)(9)) are not

eligible rollover distributions.

Section 1.402(c)-2, Q&A-9(a), provides that a distribution of a plan loan

offset amount (as defined in §1.402(c)-2,

Q&A-9(b)) is an eligible rollover distribution if it satisfies §1.402(c)-2, Q&A-3.

Thus, an amount not exceeding the plan

loan offset amount may be rolled over by

the employee (or spousal distributee) to

an eligible retirement plan within the 60day period described in section 402(c)(3),

unless the plan loan offset amount fails to

be an eligible rollover distribution for another reason.

Section 1.402(c)-2, Q&A-9(b), provides that a distribution of a plan loan

offset amount is a distribution that occurs

when, under the plan terms governing

the loan, the employee’s accrued benefit

is reduced (offset) in order to repay the

loan. This may occur when, for example,

the terms governing a plan loan require

that, in the event of an employee’s termination of employment or request for

a distribution, the loan is to be repaid

immediately or treated as in default. A

plan loan offset may also occur when,

under the terms of the plan loan, the loan

is canceled, accelerated, or treated as if

it is in default (for example, if the plan

treats a loan as in default upon an employee’s termination of employment or

within a specified period thereafter). See

also §1.72(p)-1, Q&A-13(a)(2). Because

a plan loan offset is an actual distribution

for purposes of the Code, not a deemed

distribution under section 72(p), a plan

loan offset cannot occur prior to a distributable event. See generally §1.72(p)1, Q&A-13(b).

2. Qualified Plan Loan Offset Amounts

Section 13613 of TCJA amended section 402(c)(3) of the Code to provide an

extended rollover deadline for qualified

plan loan offset (QPLO) amounts (as defined in section 402(c)(3)(C)(ii)).3 Any

portion of a QPLO amount (up to the entire QPLO amount) may be rolled over to

an eligible retirement plan by the individual’s tax filing due date (including extensions) for the taxable year in which the

offset occurs.

A QPLO amount is defined in section 402(c)(3)(C)(ii) as a plan loan offset

amount that is treated as distributed from

a qualified employer plan to an employee

or beneficiary solely by reason of:

(1) The termination of the qualified

employer plan, or

(2) The failure to meet the repayment

terms of the loan from such plan because

of the severance from employment of the

employee.

In addition, section 402(c)(3)(C)(iv)

provides that the extended rollover period will not apply “to any plan loan offset amount unless such plan loan offset

amount relates to a loan to which section 72(p)(1) does not apply by reason of

section 72(p)(2).”

Section 301.9100-2(b) of the regulations provides rules for automatic sixmonth extensions to make regulatory or

statutory elections. Under this rule, a taxpayer will receive an automatic extension

of 6 months from the due date of a return,

excluding extensions, to make elections

that otherwise must be made by the due

date of the return plus extensions, provided that:

Note that the 60-day rollover deadline can also be extended to provide temporary relief during a disaster or an emergency response. For example, in response to the COVID-19 pandemic,

Notice 2020-23, 2020-18 I.R.B. 742, extended the 60-day rollover deadline to July 15, 2020, for distributions made between April 1, 2020, and July 14, 2020.

3

In addition to TCJA, other statutory provisions may extend the period to roll over a plan loan offset. For example, section 2202(a) of the Coronavirus Aid, Relief, and Economic Security

Act, Public Law 116-136, 134 Stat. 281 (2020) (CARES Act), permits an individual to receive from an eligible retirement plan up to $100,000 for a coronavirus-related distribution (which

may include a plan loan offset that otherwise meets the requirements to be a coronavirus-related distribution). A qualified individual with a coronavirus-related distribution (which may be

included in gross income ratably over the 3-year period beginning with the taxable year of the distribution) may recontribute up to the amount of the distribution to an applicable eligible

retirement plan in which the individual is a beneficiary and to which a rollover can be made. For further information relating to the interaction of section 2202 of the CARES Act and plan

loan offsets, see Notice 2020-50, 2020-28 I.R.B. 35.

2

January 25, 2021

496

Bulletin No. 2021–4

(1) The taxpayer’s return was timely

filed for the year the election should have

been made; and

(2) The taxpayer takes appropriate corrective action within the six-month period.

Section 301.9100-2(b) further provides

that paragraph (b) does not apply to regulatory or statutory elections that must be

made by the due date of the return excluding extensions.

Notice of Proposed Rulemaking

1. In General

On August 20, 2020, the Department of

the Treasury (Treasury Department) and

the IRS published a notice of proposed

rulemaking (REG-116475-19) in the Federal Register (85 FR 51369) setting forth

rules in new §1.402(c)-3 for qualified

plan loan offsets (QPLO proposed regulations). As described in the background of

the preamble to the QPLO proposed regulations, the Treasury Department and IRS

anticipate providing separate guidance

with respect to Division O of the Further

Consolidated Appropriations Act of 2020,

Public Law 116-94 (133 Stat. 2534), titled

“Setting Every Community Up for Retirement Enhancement Act of 2019” (SECURE Act). As part of that guidance, the

Treasury Department and IRS anticipate

amending §1.402(c)-2 to reflect changes made by section 114 of the SECURE

Act (relating to changes to section 401(a)

(9) of the Code to the required beginning

date applicable to section 401(a) plans and

other eligible retirement plans described

in section 402(c)(8)) and to add new level designations for each paragraph in the

questions and answers to satisfy Federal

Register requirements. It is anticipated

that §1.402(c)-3, which includes both the

new QPLO rules and already existing plan

loan offset rules in Q&A-9 of §1.402(c)2, will be combined with §1.402(c)-2 in

connection with that project (including replacing Q&A-9 of §1.402(c)-2 with paragraph (a) of §1.402(c)-3).

As an initial matter, the QPLO proposed regulations confirm that a QPLO

is a type of plan loan offset; accordingly, most of the general rules relating to

plan loan offset amounts apply to QPLO

amounts. For example, the rule that a plan

loan offset amount is an eligible rollover

distribution applies to a QPLO amount.

In addition, the rules in §1.401(a)(31)-1,

Q&A-16 (guidance concerning the offering of a direct rollover of a plan loan

offset amount), and §31.3405(c)-1, Q&A11 (guidance concerning special withholding rules with respect to plan loan

offset amounts), applicable to plan loan

offset amounts in general, apply to QPLO

amounts. The QPLO proposed regulations

provide examples to illustrate the interaction of the special rules for QPLOs with

the general rules for plan loan offsets.

2. Rollover Period for Plan Loan Offset

Amounts, Including QPLO Amounts

Section 1.402(c)-3(a)(2)(ii)(A) of the

QPLO proposed regulations provides that

a distribution of a plan loan offset amount

that is an eligible rollover distribution and

not a QPLO amount may be rolled over

by the employee (or spousal distributee)

to an eligible retirement plan (as defined

in section 402(c)(8)(B)) within the 60-day

period set forth in section 402(c)(3)(A).

While a plan loan offset generally is subject to this 60-day rollover period, there

are special rules for the waiver of the 60day rollover deadline.

Section 1.402(c)-3(a)(2)(ii)(B) of the

QPLO proposed regulations provides that

a distribution of a plan loan offset amount

that is an eligible rollover distribution and

a QPLO amount may be rolled over by the

employee (or spousal distributee) to an eligible retirement plan through the period

ending on the individual’s tax filing due

date (including extensions) for the taxable

year in which the offset is treated as distributed from a qualified employer plan.

Thus, a taxpayer with an eligible rollover

distribution that is a QPLO amount may

roll over any portion of the distribution

to an eligible retirement plan, including

another qualified retirement plan (if that

plan permits) or an IRA, by the taxpayer’s

deadline for filing income taxes for the

year of the distribution, including extensions.4

3. Definitions of Plan Loan Offset

Amount, QPLO Amount, and Qualified

Employer Plan

Section 1.402(c)-3(a)(2)(iii)(A) of the

QPLO proposed regulations provides that

a plan loan offset amount is the amount by

which, under plan terms governing a plan

loan, an employee’s accrued benefit is reduced (offset) in order to repay the loan

(including the enforcement of the plan’s

security interest in the employee’s accrued

benefit). A distribution of a plan loan offset amount is an actual distribution, not a

deemed distribution under section 72(p).

Section 1.402(c)-3(a)(2)(iii)(B) of

the QPLO proposed regulations defines

a QPLO amount as a plan loan offset

amount that satisfies two requirements.

First, the plan loan offset amount must be

treated as distributed from a qualified employer plan to an employee or beneficiary

solely by reason of the termination of the

qualified employer plan, or the failure to

meet the repayment terms of the loan from

such plan because of the severance from

employment of the employee. Second,

the plan loan offset amount must relate to

a plan loan that met the requirements of

section 72(p)(2) immediately prior to the

termination of the qualified employer plan

or the severance from employment of the

employee, as applicable.

Section 1.402(c)-3(a)(2)(iii)(C) of the

QPLO proposed regulations define a qualified employer plan, for purposes of the

QPLO amount definition, as a qualified

employer plan as defined in section 72(p)

(4).

4. Special Rules for QPLO

Determinations

Section 1.402(c)-3(a)(2)(iv) of the

QPLO proposed regulations provides several special rules for purposes of determining whether a plan loan offset amount

is a QPLO amount. First, the QPLO pro-

For a detailed discussion of the application of §301.9100-2(b) (which provides rules for automatic six-month extensions to make regulatory or statutory elections) to the extended rollover period for

QPLO amounts, see the preamble discussion in the Explanation of Provisions section of the QPLO proposed regulations, under the heading, Rollover Period for Plan Loan Offset Amounts,

Including QPLO Amounts.

4

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497

January 25, 2021

posed regulations provide that whether an

employee has a severance from employment with the employer that maintains the

qualified employer plan is determined in

the same manner as under §1.401(k)-1(d)

(2). Thus, an employee has a severance

from employment when the employee

ceases to be an employee of the employer

maintaining the plan.

Second, the QPLO proposed regulations provide that a plan loan offset

amount is treated as distributed from a

qualified employer plan to an employee

or beneficiary solely by reason of the failure to meet the plan loan repayment terms

because of severance from employment if

the plan loan offset:

(1) Relates to a failure to meet the repayment terms of the plan loan, and

(2) Occurs within the period beginning

on the date of the employee’s severance

from employment and ending on the first

anniversary of that date.

Whether a plan loan offset amount is

a QPLO amount is relevant to plan administrators because those administrators

are responsible for reporting whether a

distribution is a plan loan offset amount

or a QPLO amount on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,

Insurance Contracts, etc., and furnishing

that form to the taxpayer.5 In the QPLO

proposed regulations, the Treasury Department and the IRS indicated that the

proposed 12-month rule would assist

plan administrators in identifying QPLO

amounts by providing a bright-line rule

for determining whether a plan loan offset amount following a severance from

employment satisfies the first requirement

in §1.402(c)-3(a)(2)(iii)(B) to be a QPLO

amount.

The QPLO proposed regulations proposed to apply the subsequent final regulations to plan loan offset amounts, including qualified plan loan offset amounts,

treated as distributed on or after the date of

publication of a Treasury decision adopting the proposed rules as final regulations.

The preamble to the QPLO proposed regulations also stated that taxpayers (including a filer of a Form 1099-R) may rely on

the proposed regulations with respect to

plan loan offset amounts, including qualified plan loan offset amounts, treated as

distributed on or after August 20, 2020,

and before the date the regulations are

published as final regulations in the Federal Register.

The Treasury Department and the IRS

received one written comment relating to

the QPLO proposed regulations. No request for a public hearing was made, and

no public hearing was held. After consideration of the comment, this Treasury

decision adopts the QPLO proposed regulations with one important modification

relating to the applicability date.

Summary of Comments and

Explanation of Revisions

The commenter stated that the brightline 12-month rule in the QPLO proposed

regulations is a helpful approach in determining whether a plan loan offset amount

is a QPLO amount, but expressed concern

that recordkeepers may not currently have

procedures to track a terminated employee’s date of severance or the one-year

anniversary of that date. To address this

concern, the commenter recommended

that the Treasury Department and the IRS

(i) consider an alternative bright-line rule

under which a plan loan offset amount is

treated as satisfying the requirement in

§1.402(c)-3(a)(2)(iv)(B) if the plan loan

offset occurs by the end of the year following the calendar year in which the employee has a severance from employment, and

(ii) delay by one year the effective date of

the final regulations (or, alternatively, provide for a one-year period of time during

which a person responsible for reporting a

QPLO amount on Form 1099-R will not

be viewed as improperly reporting it, provided that a reasonable, good faith effort

is made to determine if a plan loan offset

is a QPLO).

With respect to the first recommendation, the Treasury Department and the IRS

have considered the alternative brightline rule suggested by the commenter, but

have retained in the final regulations the

12-month rule in §1.402(c)-3(a)(2)(iv)

(B) of the QPLO proposed regulations.

Although the 12-month rule is a brightline rule that may assist plan administrators and recordkeepers in satisfying

their reporting obligations, it is also an

interpretation of a statutory requirement

that should apply to all taxpayers in the

same manner. The alternative rule recommended by the commenter could result in significantly different treatment of

participants based solely on when during

a calendar year each participant severs

from employment. For example, Taxpayer A, who severs from employment on

December 31, 2020, could experience a

plan loan offset during a 366-day period

following the severance and be treated as

having a QPLO (and thus be eligible for

the extended rollover rule), whereas Taxpayer B, who severs from employment

one day later, on January 1, 2021, could

experience a plan loan offset during a

729-day period and receive the same

treatment.

With respect to the commenter’s second recommendation to delay the effective date of the final regulations, the Treasury Department and the IRS agree that

additional time to implement §1.402(c)-3

is appropriate. Accordingly, the applicability date in these final regulations is

revised from the QPLO proposed regulations, which had proposed to apply the

regulations to plan loan offset amounts

treated as distributed on or after the date

of publication of final regulations. Under

the revised applicability date, the final

regulations will apply to plan loan offset

amounts, including qualified plan loan

offset amounts, treated as distributed on

or after January 1, 2021. Thus, for example, the rules in §1.402(c)-3 will first

apply to 2021 Form 1099-Rs required to

be filed and furnished in 2022 (more than

one year after the date of publication of

the final regulations). This delayed applicability date will give plan administrators and recordkeepers additional time to

program systems and otherwise establish

procedures for obtaining the exact date

of severance from employment of a plan

participant and tracking the one-year anniversary of that date.

The Instructions to the 2020 Form 1099-R provide that if an employee’s accrued benefit is offset to repay a loan (a plan loan offset amount), the administrator should report the distribution

as an actual distribution and not use Code L (for deemed distributions) in box 7. For a QPLO amount, the Instructions to the 2020 Form 1099-R provide that the administrator should enter

Code M (for QPLO amounts) in box 7.

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498

Bulletin No. 2021–4

The applicability date in these final regulations is also revised to provide that taxpayers (including a filer of a Form 1099-R)

may apply these regulations with respect

to plan loan offset amounts, including

qualified plan loan offset amounts, treated

as distributed on or after August 20, 2020,

which is the date of the publication of the

QPLO proposed regulations.

Applicability Date

These regulations apply to plan loan

offset amounts, including qualified plan

loan offset amounts, treated as distributed on or after January 1, 2021. Thus, for

example, the rules in §1.402(c)-3 will first

apply to 2021 Form 1099-Rs required to

be filed and furnished in 2022. However, taxpayers (including a filer of a Form

1099-R) may apply these regulations with

respect to plan loan offset amounts, including qualified plan loan offset amounts,

treated as distributed on or after August

20, 2020.

Statement of Availability for IRS

Documents

For copies of recently issued Revenue

Procedures, Revenue Rulings, Notices,

and other guidance published in the Internal Revenue Bulletin, please visit the IRS

website at https://www.irs.gov.

Special Analyses

These regulations are not subject to review under section 6(b) of Executive Order 12866 pursuant to the Memorandum

of Agreement (April 11, 2018) between

the Treasury Department and the Office

of Management and Budget regarding review of tax regulations.

In addition, it is hereby certified that

these regulations will not have a significant

economic impact on a substantial number

of small entities pursuant to the Regulatory

Flexibility Act (5 U.S.C. chapter 6). This

certification is based on the fact that the

regulations reflect the statutory changes to

section 402(c) made by section 13613 of

TCJA. The regulations reflect the extended rollover period for QPLO amounts, as

amended by TCJA. Specifically, the regulations reflect the statute in a manner that

(i) is consistent with the statutory language,

Bulletin No. 2021–4

(ii) provides certain clarifications, and (iii)

eases and facilitates plan administration.

Although the regulations might affect a

substantial number of individuals, the economic impact of the regulations is not expected to be significant. The regulations do

not impose any new compliance burdens

on taxpayers and are not expected to result

in any economically meaningful changes in

behavior.

Pursuant to section 7805(f), the notice

of proposed rulemaking preceding these

regulations was submitted to the Chief

Counsel for Advocacy of the Small Business Administration for comment on their

impact on small business, and no comments were received.

Drafting Information

The principal authors of these regulations are Naomi Lehr and Pamela R

Kinard of the Office of Associate Chief

Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes), although other persons in the IRS and the

Treasury Department participated in their

development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 1 is amended as follows:

PART 1—INCOME TAXES

1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

2. Section 1.402(c)-3 is added to read

as follows:

§1.402(c)-3 Eligible rollover

distributions; Qualified plan loan

offsets.

(a)(1) Q-1. What special rollover rules

apply to a plan loan offset amount (including a qualified plan loan offset amount)?

(2) A-1—(i) In general—(A) Eligible

rollover distribution. A distribution of a

499

plan loan offset amount, as defined in paragraph (a)(2)(iii)(A) of this section (including a qualified plan loan offset amount, a

type of plan loan offset amount defined in

paragraph (a)(2)(iii)(B) of this section), is

an eligible rollover distribution if it satisfies §1.402(c)-2, Q&A-3 and 4.

(B) Other rules relating to plan loan

offset amounts. See §1.401(a)(31)-1,

Q&A-16, for guidance concerning the offering of a direct rollover of a plan loan

offset amount. See also § 31.3405(c)-1,

Q&A-11, of this chapter for guidance

concerning special withholding rules with

respect to plan loan offset amounts.

(ii) Rollover period for a plan loan

offset amount—(A) Plan loan offset

amount that is not a qualified plan loan

offset amount. A distribution of a plan loan

offset amount that is an eligible rollover

distribution and not a qualified plan loan

offset amount may be rolled over by the

employee (or spousal distributee) to an

eligible retirement plan (as defined in §

1.402(c)-2, Q&A-2) within the 60-day period set forth in section 402(c)(3)(A).

(B) Plan loan offset amount that is a

qualified plan loan offset amount. A distribution of a plan loan offset amount that

is an eligible rollover distribution and that

is a qualified plan loan offset amount may

be rolled over by the employee (or spousal distributee) to an eligible retirement

plan within the period set forth in section

402(c)(3)(C), which is the individual’s

tax filing due date (including extensions)

for the taxable year in which the offset is

treated as distributed from a qualified employer plan.

(iii) Definitions—(A) Plan loan offset

amount. For purposes of section 402(c), a

plan loan offset amount is the amount by

which, under the plan terms governing a

plan loan, an employee’s accrued benefit

is reduced (offset) in order to repay the

loan (including the enforcement of the

plan’s security interest in an employee’s

accrued benefit). A distribution of a plan

loan offset amount can occur in a variety

of circumstances, for example, when the

terms governing a plan loan require that,

in the event of the employee’s termination of employment or request for a distribution, the loan be repaid immediately or treated as in default. A distribution

of a plan loan offset amount also occurs

when, under the terms governing the plan

January 25, 2021

loan, the loan is cancelled, accelerated,

or treated as if it were in default (for example, when the plan treats a loan as in

default upon an employee’s termination of

employment or within a specified period

thereafter). A distribution of a plan loan

offset amount is an actual distribution, not

a deemed distribution under section 72(p).

(B) Qualified plan loan offset amount.

For purposes of section 402(c), a qualified plan loan offset amount is a plan loan

offset amount that satisfies the following

requirements:

(1) The plan loan offset amount is

treated as distributed from a qualified employer plan to an employee or beneficiary

solely by reason of the termination of the

qualified employer plan, or the failure to

meet the repayment terms of the loan because of the severance from employment

of the employee; and

(2) The plan loan offset amount relates

to a plan loan that met the requirements of

section 72(p)(2) immediately prior to the

termination of the qualified employer plan

or the severance from employment of the

employee, as applicable.

(C) Qualified employer plan. For purposes of section 402(c) and this section, a

qualified employer plan is a qualified employer plan as defined in section 72(p)(4).

(iv) Special rules for qualified plan

loan offset amounts—(A) Definition of

severance from employment. For purposes

of paragraph (a)(2)(iii)(B)(1) of this section, whether an employee has a severance

from employment with the employer that

maintains the qualified employer plan is

determined in the same manner as under

§1.401(k)-1(d)(2). Thus, an employee has

a severance from employment when the

employee ceases to be an employee of the

employer maintaining the plan.

(B) Offset because of severance from

employment. A plan loan offset amount is

treated as distributed from a qualified employer plan to an employee or beneficiary

solely by reason of the failure to meet the

repayment terms of a plan loan because of

severance from employment of the employee if the plan loan offset:

(1) Relates to a failure to meet the repayment terms of the plan loan; and

(2) Occurs within the period beginning

on the date of the employee’s severance

from employment and ending on the first

anniversary of that date.

January 25, 2021

(v) Examples. The following examples

illustrate the rules with respect to plan

loan offset amounts, including qualified

plan loan offset amounts, in this paragraph

(a) and in §§1.401(a)(31)-1, Q&A-16, and

31.3405(c)-1, Q&A-11, of this chapter.

For purposes of the examples in this paragraph (a)(2)(v), each reference to a plan

refers to a qualified employer plan as described in section 72(p)(4).

(A) Example 1. (1) In 2020, Employee A has

an account balance of $10,000 in Plan Y, of which

$3,000 is invested in a plan loan to Employee A

that is secured by Employee A’s account balance in

Plan Y. Employee A has made no after-tax employee

contributions to Plan Y. The plan loan meets the requirements of section 72(p)(2). Plan Y does not provide any direct rollover option with respect to plan

loans. Employee A severs from employment on June

15, 2020. After severance from employment, Plan Y

accelerates the plan loan and provides Employee A

90 days to repay the remaining balance of the plan

loan. Employee A, who is under the age set forth in

section 401(a)(9)(C)(i)(II), does not repay the loan

within the 90 days and instead elects a direct rollover

of Employee A’s entire account balance in Plan Y.

On September 18, 2020 (within the 12-month period

beginning on the date that Employee A severed from

employment), Employee A’s outstanding loan is offset against the account balance.

(2) In order to satisfy section 401(a)(31), Plan

Y must make a direct rollover by paying $7,000 directly to the eligible retirement plan chosen by Employee A. When Employee A’s account balance was

offset by the amount of the $3,000 unpaid loan balance, Employee A received a plan loan offset amount

(equivalent to $3,000) that is an eligible rollover distribution. However, under §1.401(a)(31)-1, Q&A16, Plan Y satisfies section 401(a)(31), even though a

direct rollover option was not provided with respect

to the $3,000 plan loan offset amount.

(3) No withholding is required under section

3405(c) on account of the distribution of the $3,000

plan loan offset amount because no cash or other

property (other than the plan loan offset amount) is

received by Employee A from which to satisfy the

withholding.

(4) The $3,000 plan loan offset amount is a qualified plan loan offset amount within the meaning of

paragraph (a)(2)(iii)(B) of this section. Accordingly,

Employee A may roll over up to the $3,000 qualified

plan loan offset amount to an eligible retirement plan

within the period that ends on the employee’s tax filing due date (including extensions) for the taxable

year in which the offset occurs.

(B) Example 2. (1) The facts are the same as in

paragraph (a)(2)(v)(A) of this section (Example 1),

except that, rather than accelerating the plan loan,

Plan Y permits Employee A to continue making

loan installment payments after severance from employment. Employee A continues making loan installment payments until January 1, 2021, at which

time Employee A does not make the loan installment

payment due on January 1, 2021. In accordance with

§1.72(p)-1, Q&A-10, Plan Y allows a cure period that continues until the last day of the calendar

quarter following the quarter in which the required

500

installment payment was due. Employee A does not

make a plan loan installment payment during the

cure period. Plan Y offsets the unpaid $3,000 loan

balance against Employee A’s account balance on

July 1, 2021 (which is after the 12-month period beginning on the date that Employee A severed from

employment).

(2) The conclusion is the same as in paragraph

(a)(2)(v)(A) of this section (Example 1), except that

the $3,000 plan loan offset amount is not a qualified

plan loan offset amount (because the offset did not

occur within the 12-month period beginning on the

date that Employee A severed from employment).

Accordingly, Employee A may roll over up to the

$3,000 plan loan offset amount to an eligible retirement plan within the 60-day period provided in section 402(c)(3)(A) (rather than within the period that

ends on Employee A’s tax filing due date (including

extensions) for the taxable year in which the offset

occurs).

(C) Example 3. (1) The facts are the same as in

paragraph (a)(2)(v)(A) of this section (Example 1),

except that the terms governing the plan loan to Employee A provide that, upon severance from employment, Employee A’s account balance is automatically offset by the amount of any unpaid loan balance to

repay the loan. Employee A severs from employment

but does not request a distribution from Plan Y. Nevertheless, pursuant to the terms governing the plan

loan, Employee A’s account balance is automatically

offset on June 15, 2020, by the amount of the $3,000

unpaid loan balance.

(2) The $3,000 plan loan offset amount is a qualified plan loan offset amount within the meaning of

paragraph (a)(2)(iii)(B) of this section. Accordingly,

Employee A may roll over up to the $3,000 qualified

plan loan offset amount to an eligible retirement plan

within the period that ends on Employee A’s tax filing due date (including extensions) for the taxable

year in which the offset occurs.

(D) Example 4. (1) The facts are the same as in

paragraph (a)(2)(v)(A) of this section (Example 1),

except that Employee A elects to receive a cash distribution of the account balance that remains after the

$3,000 plan loan offset amount, instead of electing

a direct rollover of the remaining account balance.

(2) The amount of the distribution received by

Employee A is $10,000 ($3,000 relating to the plan

loan offset and $7,000 relating to the cash distribution). Because the amount of the $3,000 plan loan

offset amount attributable to the loan is included in

determining the amount of the eligible rollover distribution to which withholding applies, withholding

in the amount of $2,000 (20 percent of $10,000)

is required under section 3405(c). The $2,000 is

required to be withheld from the $7,000 to be distributed to Employee A in cash, so that Employee A

actually receives a cash amount of $5,000.

(3) The $3,000 plan loan offset amount is a qualified plan loan offset amount within the meaning of

paragraph (a)(2)(iii)(B) of this section. Accordingly,

Employee A may roll over up to the $3,000 qualified

plan loan offset to an eligible retirement plan within

the period that ends on the Employee A’s tax filing

due date (including extensions) for the taxable year

in which the offset occurs. In addition, Employee A

may roll over up to $7,000 (the portion of the distribution that is not related to the offset) within the

60-day period provided in section 402(c)(3).

Bulletin No. 2021–4

(E) Example 5. (1) The facts are the same as in

paragraph (a)(2)(v)(D) of this section (Example 4),

except that the $7,000 distribution to Employee A

after the offset consists solely of employer securities

within the meaning of section 402(e)(4)(E).

(2) No withholding is required under section

3405(c) because the distribution consists solely of

the $3,000 plan loan offset amount and the $7,000

distribution of employer securities. This is the result

because the total amount required to be withheld

does not exceed the sum of the cash and the fair

market value of other property distributed, excluding

plan loan offset amounts and employer securities.

(3) Employee A may roll over up to the $7,000

of employer securities to an eligible retirement plan

within the 60-day period provided in section 402(c)

(3). The $3,000 plan loan offset amount is a qualified plan loan offset amount within the meaning of

paragraph (a)(2)(iii)(B) of this section. Accordingly,

Employee A may roll over up to the $3,000 qualified

plan loan offset amount to an eligible retirement plan

within the period that ends on Employee A’s tax filing due date (including extensions) for the taxable

year in which the offset occurs.

(F) Example 6. (1) Employee B, who is age 40,

has an account balance in Plan Z. Plan Z provides for

no after-tax employee contributions. In 2022, Employee B receives a loan from Plan Z, the terms of

which satisfy section 72(p)(2), and which is secured

by elective contributions subject to the distribution

restrictions in section 401(k)(2)(B).

(2) Employee B fails to make an installment

payment due on April 1, 2023, or any other monthly

payments thereafter. In accordance with §1.72(p)-1,

Q&A-10, Plan Z allows a cure period that continues

until the last day of the calendar quarter following

the quarter in which the required installment payment was due (September 30, 2023). Employee

Bulletin No. 2021–4

B does not make a plan loan installment payment

during the cure period. On September 30, 2023,

pursuant to section 72(p)(1), Employee B is taxed

on a deemed distribution equal to the amount of the

unpaid loan balance. Pursuant to §1.402(c)-2, Q&A4(d), the deemed distribution is not an eligible rollover distribution.

(3) Because Employee B has not severed from

employment or experienced any other event that permits the distribution under section 401(k)(2)(B) of

the elective contributions that secure the loan, Plan Z

is prohibited from executing on the loan. Accordingly, Employee B’s account balance is not offset by the

amount of the unpaid loan balance at the time of the

deemed distribution. Thus, there is no distribution of

an offset amount that is an eligible rollover distribution on September 30, 2023.

(G) Example 7. (1) The facts are the same as in

in paragraph (a)(2)(v)(F) of this section (Example 6),

except that Employee B has a severance from employment on November 1, 2023. On that date, Employee B’s unpaid loan balance is offset against the

account balance on distribution.

(2) The plan loan offset amount is not a qualified plan loan offset amount. Although the offset

occurred within 12 months after Employee B severed from employment, the plan loan does not meet

the requirement in paragraph (a)(2)(iii)(B) of this

section (that the plan loan meet the requirements of

section 72(p)(2) immediately prior to Employee B’s

severance from employment). Instead, the loan was

taxable on September 30, 2023 (prior to Employee

B’s severance from employment on November 1,

2023), because of the failure to meet the level amortization requirement in section 72(p)(2)(C). Accordingly, Employee B may roll over the plan loan offset

amount to an eligible retirement plan within the 60day period provided in section 402(c)(3)(A) (rather

501

than within the period that ends on Employee B’s tax

filing due date (including extensions) for the taxable

year in which the offset occurs).

(b)(1) Q-2. When are the rules in this

section applicable to plan loan offset

amounts, including qualified plan loan

offset amounts?

(2) A-2. The rules provided in paragraph (a) of this section are applicable to

plan loan offset amounts, including qualified plan loan offset amounts, treated as

distributed on or after January 1, 2021.

However, taxpayers (including a filer of

a Form 1099-R) may choose to apply the

regulations in this section with respect to

plan loan offset amounts, including qualified plan loan offset amounts, treated as

distributed on or after August 20, 2020.

Sunita Lough,

Deputy Commissioner for Services

and Enforcement.

Approved: December 1, 2020.

David J. Kautter,

Assistant Secretary of the Treasury

(Tax Policy).

(Filed by the Office of the Federal Register on January 5, 2021, 8:45 a.m., and published in the issue

of the Federal Register for January 6, 2021, 86 F.R.

464)

January 25, 2021

Part III

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2021-8

SECTION 1. PURPOSE

This revenue procedure modifies Revenue Procedure 2021-5, 2021-1 I.R.B.

250, by updating the procedures for

Exempt Organizations determination

letters with respect to the electronically

submitted Form 1024-A, Application for

Recognition of Exemption Under Section

501(c)(4) of the Internal Revenue Code,

which is the application used to apply

for recognition of exemption as an entity described in § 501(c)(4). The modifications to Rev. Proc. 2021-5 made by

this revenue procedure provide that the

electronic submission process is the exclusive means of submitting a completed Form 1024-A, except for submissions

eligible for the 90-day transition relief

provided in section 4 of this revenue procedure.

SECTION 2. CHANGED

SUBMISSION PROCESS

The IRS has revised and updated Form

1024-A and provided for it to be electronically submitted at www.pay.gov. The electronic submission process for Form 1024A replaces the paper submission process

for Form 1024-A after January 5, 2021,

subject to the transition relief provided in

section 4 of this revenue procedure. Section 3 of this revenue procedure modifies

Rev. Proc. 2021-5 to set forth procedures

for issuing determination letters in response to electronically submitted Form

1024-A applications. Unless otherwise

modified in this revenue procedure, the

provisions of Rev. Proc. 2021-5 continue

to apply.

SECTION 3. MODIFICATIONS TO

REVENUE PROCEDURE 2021-5

.01 Section 4.01 of Rev. Proc. 2021-5

is modified to read as follows:

.01 This section explains the general

instructions for requesting determination

January 25, 2021

letters. However, certain procedures do

not apply to requests submitted on Form

1023, Application for Recognition of Exemption Under Section 501(c)(3) of the

Internal Revenue Code, Form 1023-EZ,

Streamlined Application for Recognition

of Exemption Under Section 501(c)(3)

of the Internal Revenue Code, or Form

1024-A, Application for Recognition of

Exemption Under Section 501(c)(4) of

the Internal Revenue Code, as indicated

in this revenue procedure or in the forms

and their instructions. In addition to these

general instructions, specific procedures

apply to requests submitted by letter (as

described in section 5), applications for

recognition of exemption from Federal

income tax under § 501 or § 521 (as described in section 6), and to requests for

determinations submitted on Form 8940,

Request for Miscellaneous Determination

(as described in section 7).

.02 Paragraph (4) of section 4.02 of

Rev. Proc. 2021-5 is modified to read as

follows:

(4) Form 1024-A application. An organization seeking a determination letter

from the Service recognizing tax-exempt

status under § 501(c)(4) must electronically submit a completed Form 1024-A at

www.pay.gov. In the case of an organization that provides credit counseling services and seeks recognition of exemption

under § 501(c)(4), see § 501(q).

Section 501(c)(4) organizations may

choose to seek a determination letter recognizing tax-exempt status under § 501(c)

(4) by filing Form 1024-A, but are not

required to do so except in certain cases

(see, for example, § 6033(j)(2) regarding

failures to file annual information returns

or annual electronic notifications required

under § 6033(a) or (i)).

Submission of Form 1024-A does not

relieve an organization of the requirement

to submit Form 8976, Notice of Intent to

Operate Under Section 501(c)(4). For additional information about the electronic

submission process, refer to Form 1024-A

and its Instructions.

.03 Paragraph 4.04(3) of Rev. Proc.

2021-5 is modified to read as follows:

(3) Individual or representative authorized to sign Form 1024-A. In the

502

case of a request for a determination letter

made by filing Form 1024-A, an officer,

a director, a trustee, or other official who

is authorized to sign for the organization

must sign the application. The signature

of a representative authorized by a power

of attorney who is not an officer, director,

trustee, or other official of the organization

will not satisfy the signature requirement

for Form 1024-A. See the instructions to

the Form 1024-A for more information on

who may sign the application on behalf of

an organization.

.04 The first paragraph of section

4.09(1) of Rev. Proc. 2021-5 is modified

to read as follows:

(1) Procedures for requesting expedited handling. Except for a request on

the electronically submitted Form 1023

or Form 1024-A, the request for expedited handling must be made in writing,

preferably in a separate letter sent with, or

soon after filing, the request for the determination letter. If the request is not made

in a separate letter, then the letter in which

the determination letter request is made

should say, at the top of the first page:

“Expedited Handling Is Requested. See

page ___ of this letter.”

In the case of the electronically submitted Form 1023 or Form 1024-A, a request

for expedited handling must be indicated

on the form and a supporting written statement must be submitted as an attachment

with the completed application.

.05 Section 6.04 of Rev. Proc. 2021-5

is modified to read as follows:

.04 An organization applying for recognition of exemption must attach a completed Form 8718, User Fee for Exempt

Organization Determination Letter Request, to its application, unless the organization is submitting Form 1023, Form

1023-EZ, or Form 1024-A. Form 8718 is

an attachment related to user fees that is

not, itself, a determination letter application.

.06 Section 6.06(1)(a) of Rev. Proc.

2021-5 is modified to read as follows:

(1) A completed application (other than

a Form 1023-EZ), including a letter application, is one that:

(a) is signed or, in the case of a Form

1023 or Form 1024-A, is electronically

Bulletin No. 2021–4

signed by an authorized individual under

penalties of perjury (see sections 4.04 and

4.06 of this revenue procedure);

.07 Section 6.06(1)(c) of Rev. Proc.

2021-5 is modified to read as follows:

(c) (i) for organizations other than those

described in § 501(c)(3) or § 501(c)(4), includes a statement of receipts and expenditures and a balance sheet for the current

year and the three preceding years (or the

years the organization was in existence, if

less than four years), and if the organization has not yet commenced operations or

has not completed one accounting period,

a proposed budget for two full accounting

periods and a current statement of assets

and liabilities;

(ii) for organizations described in §

501(c)(3) or § 501(c)(4), see Form 1023

and Instructions for Form 1023 or Form

1024-A and Instructions for Form 1024A, respectively.

.08 Paragraph (2) of section 6.08 of

Rev. Proc. 2021-5 is modified to read as

follows:

(2) When an application is not submitted within 27 months of formation.

An organization that otherwise meets the

requirements for tax-exempt status and the

issuance of a determination letter but does

not meet the requirements for recognition

from date of formation will be recognized

from the postmark date of its application

or the submission date of its Form 1023,

Form 1023-EZ, or Form 1024-A, as applicable.

.09 Paragraph (1) of section 14.06 of

Rev. Proc. 2021-5 is modified to read as

follows:

(1) Payment of user fees for applications of recognition of exemption on

Form 1023, Form 1023-EZ, or Form

1024-A. User fees for applications for

recognition of exemption on Form 1023,

Form 1023-EZ, or Form 1024-A must be

paid through www.pay.gov.

.10 Section 14.07 of Rev. Proc. 2021-5

is modified to read as follows:

.07 Form 8718 is intended to be used

as an attachment to applications other

than Form 1023, Form 1023-EZ, or Form

1024-A for the attachment of the applicable user fee check.

.11 Section 15.01(1)(a) of Rev. Proc.

2021-5 is modified to read as follows:

(1) The following types of requests and

applications handled by the EO Determi-

Bulletin No. 2021–4

nations Office should be sent to the Internal Revenue Service Center, at the address

in section 15.01(2):

(a) applications for recognition of exemption on Form 1024 and Form 1028;

.12 Section 15.02 of Rev. Proc. 2021-5

is modified to read as follows:

.02 Applications for recognition of exemption on Form 1023, Form 1023-EZ,

and Form 1024-A are handled by the EO

Determinations Office but must be submitted electronically online at www.pay.

gov. Paper submissions of Form 1023,

Form 1023-EZ, and Form 1024-A will not

be accepted.

SECTION 4. TRANSITION RELIEF

.01 Except as provided in section 4.02,

an organization seeking recognition of

tax-exempt status under § 501(c)(4) using

Form 1024-A must electronically submit

the form and user fee online at www.pay.

gov.

.02 The Internal Revenue Service will

accept for processing a completed paper

Form 1024-A accompanied by the correct

user fee, as described in Rev. Proc. 20215, without applying the modifications of

this revenue procedure, if the submission

of the Form 1024-A is postmarked on or

before the date that is 90 days after the effective date of this revenue procedure.

SECTION 5. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2021-5 is modified.

SECTION 6. EFFECTIVE DATE

This revenue procedure is effective

January 5, 2021, the date this revenue procedure was announced by news release.

SECTION 7. DRAFTING

INFORMATION

The principal author of this revenue

procedure is Patrick Sternal of the Office

of Associate Chief Counsel (Employee

Benefits, Exempt Organizations, and Employment Taxes). For further information

regarding this revenue procedure contact

Mr. Sternal at (202) 317-5800 (not a tollfree number).

503

26 CFR 601.106: Appeals functions.

(Also Part I, § 1.148-3)

Rev. Proc. 2021-10

SECTION 1. PURPOSE

This revenue procedure provides procedures for an issuer of tax-advantaged

bonds (as defined in § 1.150-1(b) of the

Income Tax Regulations (Regulations))

to request an administrative appeal to the

Independent Office of Appeals (Appeals)

within the Internal Revenue Service (IRS)

of a proposed adverse determination made

by the office that is responsible for examinations of tax-advantaged bonds, presently the Office of Tax Exempt Bonds

(and including any successor IRS office

performing such examinations, the TEB

Examination Office), with respect to issues within the scope of this revenue procedure.

SECTION 2. BACKGROUND

.01 Appeals jurisdiction. Section 3105

of the Internal Revenue Service Restructuring and Reform Act of 1998, P.L. 105206, 112 Stat. 685 (1998 IRS Restructuring Act), directed the IRS to modify its

administrative procedures to allow issuers an expeditious appeal of a proposed

adverse determination by the IRS with

respect to a bond issue to a senior officer

in Appeals before the IRS proceeds to tax

bondholders.

.02 Bond appeals guidance. Rev. Proc.

2006-40, 2006-2 C.B. 691, sets forth procedures for an issuer of bonds to appeal a

proposed adverse determination regarding

the qualification of an issue of bonds as

tax-exempt bonds (as defined in § 150(a)

(6) of the Internal Revenue Code (Code))

or a claim for recovery of asserted overpayments of arbitrage rebate under § 148.

However, the procedures in Rev. Proc.

2006-40 do not apply to an appeal of a

proposed adverse determination regarding

the qualification of other types of tax-advantaged bonds, such as tax-credit bonds.

.03 Other applicable appeals procedures. Procedures under § 601.106 et seq.

of the Statement of Procedural Rules, including those governing submissions and

taxpayer conferences, apply to appeals

regarding bond issues, bondholders, and

January 25, 2021

arbitrage rebate. A bondholder’s appeal

rights under § 601.106 of the Statement

of Procedural Rules are independent and

separate from an issuer’s appeal rights under this revenue procedure. Section 1.1483(i)(3)(iii) of the Regulations also applies

to appeals concerning an Arbitrage Rebate

Claim Denial (as defined in section 4.02

of this revenue procedure).

.04 Issuers as taxpayers. To conduct an

examination (including any related administrative appeal) of a tax-advantaged bond

expeditiously, the IRS generally treats an

issuer as the taxpayer for the bond issue

under examination.

.05 Conduit borrowers as taxpayers.

In appropriate circumstances, Appeals

may consider, concurrently with an issuer’s appeal, issues relating to those

raised in a Proposed Adverse Bond Determination (as defined in section 4.02

of this revenue procedure) that affect

the tax liability (other than any potential penalties) of the borrower of bond

proceeds of a conduit financing issue.

Appeals will consider an issue relating

to the borrower’s tax liability only if the

borrower is under examination with respect to the issue, the resolution of that

issue is affected by the Proposed Adverse

Bond Determination (for example, issues

under § 150(b) or 168(g)), and the borrower agrees to resolve the issue concurrently with the issuer’s appeal under this

revenue procedure. See § 601.106 of the

Statement of Procedural Rules for procedures applicable to the borrower.

.06 Technical advice. An issuer may

submit a request to the TEB Examination

Office or Appeals for referral of a tax matter to the IRS Office of Chief Counsel for

technical advice while a tax-advantaged

bond issue is under the jurisdiction of the

TEB Examination Office or Appeals, respectively. See Rev. Proc. 2021-2, 202101 I.R.B. 116, or annual successor revenue procedure.

.07 Alternative dispute resolution programs. Alternative dispute resolution

methods permit Appeals officers to mediate, facilitate, or propose settlements in

the resolution of matters identified during

the course of an examination prior to the

issuance of a Proposed Adverse Bond

Determination or an Arbitrage Rebate

Claim Denial. Alternative dispute resolution methods within Appeals applicable to

January 25, 2021

bonds currently include TE/GE Fast Track

Settlement (FTS) (Announcement 201234, 2012-36 I.R.B 334), Post Appeals

Mediation (Rev. Proc. 2014-63, 2014-53

I.R.B. 1014), and Early Referral (Rev.

Proc. 99-28, 1999-2 C.B. 109).

SECTION 3. SCOPE

This revenue procedure applies to Proposed Adverse Bond Determinations and

Arbitrage Rebate Claim Denials as defined in section 4.02 of this revenue procedure.

SECTION 4. INITIATING THE

APPEAL PROCESS

.01 In general. Section 4.02 through

4.06 of this revenue procedure set forth

the circumstances and procedures under

which an issuer may request that certain

adverse determinations by the TEB Examination Office be reviewed by Appeals.

.02 Availability of appeal request to

issuer. An issuer is eligible to request

an appeal under this revenue procedure

upon the receipt from the TEB Examination Office of a: (1) proposed adverse

determination that an issue of bonds fails

to qualify for the exclusion of the interest on the bonds from the gross income

of the bondholders under § 103 (a Proposed Adverse Bond Determination);

(2) proposed adverse determination that

an issue of bonds fails to qualify for the

tax credits for the bondholders or direct

payments to the issuer with respect to

the bonds under provisions of the Code

applicable to tax-advantaged bonds, such

as former §§ 54, 54A, 54AA, 1397E, and

6431 (also a Proposed Adverse Bond

Determination); or (3) proposed adverse

determination that denies a claim for recovery of an asserted overpayment of arbitrage rebate under § 148 with respect

to tax-exempt bonds or under § 148 as

modified by relevant provisions of the

Code with respect to other tax-advantaged bonds (an Arbitrage Rebate Claim

Denial). Except as provided in alternate

dispute resolution programs, including

any applicable programs referenced in

section 2.07 of this revenue procedure

or in any subsequently issued published

guidance, appeal rights are not available

to an issuer prior to the receipt of a Pro-

504

posed Adverse Bond Determination or an

Arbitrage Rebate Claim Denial.

.03 Requesting an appeal. An issuer’s appeal request must be submitted

in writing to the TEB Examination Office within 30 days of the date of the

Proposed Adverse Bond Determination

or Arbitrage Rebate Claim Denial. The

appeal request must include the information listed in section 4.04 of this revenue

procedure. The TEB Examination Office

may extend this 30-day submission period based on an issuer’s written request to

the TEB Examination Office within the

30-day submission period that justifies

such extension.

.04 Required information and signature. An appeal request made under this

revenue procedure must include the information listed in this section 4.04.

(1) A detailed written response to the

Proposed Adverse Bond Determination or

Arbitrage Rebate Claim Denial, including

a detailed explanation of the issuer’s position regarding each issue in dispute.

(2) A declaration in the following form:

“Under penalties of perjury, I declare that

I have examined this request for an appeal, including accompanying documents,

and that, to the best of my knowledge and

belief, the facts presented are true, correct,

and complete.”

(3) The issuer or the issuer’s authorized

representative must sign an appeal request. An issuer may designate an authorized representative by submitting a duly

executed Form 2848, Power of Attorney

and Declaration of Representative, when

making an appeal request under this revenue procedure.

.05 Response to an appeal request.

Upon receipt of an appeal request, the

TEB Examination Office will review the

request to determine whether it meets

the requirements of this revenue procedure. If the request does not meet such

requirements, the TEB Examination Office will notify the issuer in writing of

the request’s deficiencies and the issuer

will have 30 days from the date of the

notification to correct the deficiencies.

If the request meets the requirements of

this revenue procedure and contains no

new information or analysis of the taxpayer’s position, the TEB Examination

Office will transfer the case file to Appeals. If the request meets the require-

Bulletin No. 2021–4

ments of this revenue procedure and

contains new information or analysis of

the taxpayer’s position, the TEB Examination Office will notify the issuer that

such new information or analysis may

change the case’s outcome and requires

the TEB Examination Office’s further

consideration prior to transfer of the

case file to Appeals.

.06 Failure to make appeal request. If

an issuer does not submit a written appeal

request in the manner and within the time

periods described in section 4.03 through

4.05 of this revenue procedure, the Proposed Adverse Bond Determination or Arbitrage Rebate Claim Denial will become

final.

.07 Jurisdiction over tax matters. Once

the TEB Examination Office sends the

case file to Appeals, jurisdiction over the

issues raised in the Proposed Adverse

Bond Determination or Arbitrage Rebate

Claim Denial will transfer from the TEB

Examination Office to Appeals. Except

for matters considered by Appeals under

section 2.05 of this revenue procedure

(relating to the tax liability of the conduit

borrower of the bond proceeds), the TEB

Examination Office will retain jurisdiction

over all tax matters related to the bond issue under examination that are not specifically raised as an issue in the Proposed

Adverse Bond Determination or Arbitrage

Rebate Claim Denial.

.08 Notification to issuer. Simultaneously with the transfer of the case file to

Appeals, the TEB Examination Office will

furnish to the issuer a copy of the TEB Examination Office’s transmittal letter and

response, if any, to the issuer’s positions

stated in its appeal request.

Bulletin No. 2021–4

SECTION 5. ARBITRAGE REBATE

CLAIM DENIAL FOR TIMELINESS

When an appeal of a claim described

in either § 1.148-3(i)(3)(iii)(A) or (B) of

the Regulations (regarding timeliness) is

determined in favor of the issuer, Appeals

will release jurisdiction and return the

case to the TEB Examination Office for

further consideration of the substance of

the claim.

SECTION 6. EFFECT OF

CERTAIN FINAL ADVERSE BOND

DETERMINATIONS OR FINAL

ARBITRAGE REBATE CLAIM

DENIALS

.01 Final Adverse Bond Determination.

If a Proposed Adverse Bond Determination

becomes final under section 4.06 of this revenue procedure or because Appeals sustains

the Proposed Adverse Bond Determination

without entering into a closing agreement

with the issuer, then, depending on the type

of bond that was issued: (i) the interest on

those bonds will no longer be treated as excludable from gross income under § 103 of

the Code, (ii) holders will not be allowed

any credit against income tax with respect

to interest on those bonds, or (iii) issuers

will not be allowed a direct payment. In

addition, IRS functions other than Appeals

may initiate procedures with respect to

open years to, respectively, (i) impose tax

on interest on the bonds, (ii) disallow the

tax credits, or (iii) if it has not already done

so, disallow direct payments with respect to

the interest on the bonds. Further, a notice

of deficiency may be issued to recover overpayments of direct payments.

505

.02 Final Arbitrage Rebate Claim Denial. If an Arbitrage Rebate Claim Denial

becomes final under section 4.06 of this

revenue procedure or Appeals sustains the

Arbitrage Rebate Claim Denial in full, the

IRS will notify the issuer of the final determination and the issuer’s right to bring

suit for recovery.

SECTION 7. NO USER FEE

No user fee applies to either a request

for an appeal pursuant to this revenue procedure or a closing agreement resulting

from the appeal.

SECTION 8. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2006-40 is modified and superseded.

SECTION 9. EFFECTIVE DATE

This revenue procedure applies to Proposed Adverse Bond Determinations or

Arbitrage Rebate Claim Denials issued by

the TEB Examination Office on or after

February 4, 2021.

SECTION 10. DRAFTING

INFORMATION

The principal authors of this revenue

procedure are B. Darrell Smelcer, Office of

Tax-Exempt Bonds (Technical), and Lewis Bell, Office of Associate Chief Counsel

(Financial Institutions & Products). For

further information regarding this revenue

procedure, contact Mr. Smelcer at 470639-2425 (not a toll-free number).

January 25, 2021

Part IV

Part II – Treaties and Tax Legislation

Subpart A – Tax Conventions and Other Related Items

U.S.-Italy Competent Authority Arrangement

Announcement 2021-1

The following is a copy of the Competent Authority Arrangement entered into by the competent authorities of the United States of

America and Italy under paragraph 3 of Article 25 (Mutual Agreement Procedure) clarifying the application of subparagraph 1(b) of

Article 19 (Government Services) with respect to remuneration paid by the United States to U.S. citizens or dual nationals who are

residents of Italy and who are rendering services to the United States in U.S. embassies and consulates in Italy.

The text of the Competent Authority Agreement is as follows:

COMPETENT AUTHORITY ARRANGEMENT

The Competent Authorities of the United States and Italy enter into the following arrangement (“Arrangement”) regarding the application of paragraph 1 of Article 19 (Government Service) under the Convention Between the Government of the United States of

America and the Government of the Italian Republic for the Avoidance of Double Taxation with Respect to Taxes on Income and

the Prevention of Fraud or Fiscal Evasion, signed at Washington on August 25, 1999 (the “Treaty”), and the Protocol, also signed

at Washington on August 25, 1999 (the “Protocol”), both of which entered into force on December 16, 2009. The Arrangement is

entered into under paragraph 3 of Article 25 (Mutual Agreement Procedure).

Paragraph 1 of Article 19 (Government Service) of the Treaty states:

(a) Remuneration, other than a pension, paid by a Contracting State or a political or administrative subdivision or local authority

thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the

individual is a resident of that State who:

(i) is a national of that State and is not a national of the other State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services;

provided that the provisions of clause (ii) shall not apply to the spouse or dependent children of an individual who is receiving

remuneration to which the provisions of subparagraph (a) apply and who does not come within the terms of clause (i) or (ii).

Thus, of particular relevance for purposes of this Arrangement, pursuant to subparagraph 1(b) of Article 19, remuneration shall be

taxable only in the Contracting State where the services are rendered (i.e., the host State) if either clause (i) or (ii) of that subparagraph

is satisfied, subject to the Treaty’s saving clause of paragraph 2 of Article 1 (Personal Scope).

It has come to the attention of the Competent Authorities, however, that difficulties have arisen as to the application of subparagraph

1(b) of Article 19 with respect to remuneration paid by the United States to U.S. citizens or dual nationals who are residents of Italy

and who are rendering services to the United States in U.S. embassies and consulates in Italy. The U.S. Treasury Department’s Technical Explanation of paragraph 1 of Article 19 of the Treaty (“TE”) states:

 ubparagraph (a) provides that remuneration paid by one of the States or its political subdivisions or local authorities to any

S

individual who is rendering services to that State, political subdivision or local authority, is exempt from tax by the other State.

Under subparagraph (b), such payments are, however, taxable exclusively in the other State (i.e., the host State) if the services are

rendered in that other State and the individual is a resident of that State who is either (i) a national of that State who is not also a

national of the other State, or (ii) a person who did not become resident of that State solely for purposes of rendering the services.

The Competent Authorities understand that an example that follows this explanation in the TE may cause confusion because it does

not comprehensively describe the application of subparagraph 1(b) of Article 19 of the Treaty. The TE example at issue states:

[ A]ssume that the U.S. Embassy in Rome hires a local resident who did not become a resident of Italy solely for purposes of rendering services to the Embassy. If that individual is an Italian national and not a U.S. citizen, the salary paid to him will be taxable

January 25, 2021

506

Bulletin No. 2021–4

only by Italy. However, if the individual is not an Italian national, or is both an Italian national and a U.S. citizen, the salary will

be taxable only by the United States.

The third sentence in the TE example illustrates the application of clause (i) of subparagraph 1(b) of Article 19. It is incomplete,

however, because it does not consider nor provide guidance on the application of clause (ii) of subparagraph 1(b) of Article 19 which

might modify the result. Because the TE does not consider nor provide an example of how to apply clause (ii) of subparagraph 1(b)

of Article 19, there has been confusion regarding how, in particular, subparagraph 1(b) of Article 19 should be applied in the case of

remuneration, other than a pension, paid by the United States to a resident of Italy who is also a U.S. citizen or dual national and who

is a local hire who did not become an Italian resident solely for purposes of rendering services to the United States at a U.S. embassy

or consulate in Italy.

Therefore, the Competent Authorities have entered into this Arrangement to clarify the application of subparagraph 1(b) of Article

19 of the Treaty. It is understood that under subparagraph 1(b)(ii) of Article 19, remuneration, other than a pension, paid by the United States to a resident of Italy who is also a U.S. citizen or dual national of the United States and Italy, who renders services to the

United States in Italy, and who did not become an Italian resident (as determined under Article 4 (Resident)) solely for purposes of

rendering services to the United States shall be taxable only in Italy, subject to the Treaty’s saving clause of paragraph 2 of Article 1

(Personal Scope).

Pursuant to the saving clause of paragraph 2 of Article 1, the United States retains its right to tax the income of its citizens and lawful

permanent residents “as if there were no convention between the Government of the United States of America and the Government

of the Italian Republic for the avoidance of double taxation with respect to taxes on income and the prevention of fraud or fiscal evasion.” As such, a U.S. citizen or lawful permanent resident would not be entitled to claim the benefit of subparagraph 1(b) of Article

19 to exempt remuneration from U.S. federal income tax. Rather, the individual would be subject to tax in both the United States and

Italy.

 urther, in the case where the United States asserts its right to tax its citizens solely under paragraph 2 of Article 1, the individual

F

may be able to mitigate double taxation under Article 23 (Relief from Double Taxation) of the Treaty.

___________________________

Douglas W. O’Donnell

United States Competent Authority

Internal Revenue Service

_________________________

Fabrizia Lapecorella

Italian Competent Authority

Ministry of Economy and Finance

Date: _______________________

Date: _____________________

Bulletin No. 2021–4

507

January 25, 2021

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

­effect:

Amplified describes a situation where

no change is being made in a prior published position, but the prior position is

being extended to apply to a variation of

the fact situation set forth therein. Thus, if

an earlier ruling held that a principle applied to A, and the new ruling holds that

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

where the language in a prior ruling is being made clear because the language has

caused, or may cause, some confusion. It

is not used where a position in a prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously published ruling and points out an essential

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions.

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

new ruling does more than restate the substance of a prior ruling, a combination of

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

restate the valid portion of the previously published ruling in a new ruling that is

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

which a list, such as a list of the names of

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to

show that the previous published rulings

will not be applied pending some future

action such as the issuance of new or

amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

Abbreviations

The following abbreviations in current use

and formerly used will appear in material

published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2021–4

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.

January 25, 2021

Numerical Finding List1

Bulletin 2021–4

Announcements:

2021-01, 2021-04 I.R.B. 506

Notices:

2021-01, 2021-02 I.R.B. 315

2021-03, 2021-02 I.R.B. 316

2021-04, 2021-02 I.R.B. 319

2021-02, 2021-03 I.R.B. 478

2021-05, 2021-03 I.R.B. 479

2021-07, 2021-03 I.R.B. 482

Proposed Regulations:

REG-130081-19, 2021-02 I.R.B. 321

REG-114615-16, 2021-03 I.R.B. 489

Revenue Procedures:

2021-01, 2020-01 I.R.B. 1

2021-02, 2020-01 I.R.B. 116

2021-03, 2020-01 I.R.B. 140

2021-04, 2020-01 I.R.B. 157

2021-05, 2020-01 I.R.B. 250

2021-07, 2020-01 I.R.B. 290

2021-09, 2020-03 I.R.B. 485

2021-08, 2020-04 I.R.B. 502

2021-10, 2020-04 I.R.B. 503

Revenue Rulings:

2021-01, 2021-02 I.R.B. 294

2021-02, 2021-04 I.R.B. 495

Treasury Decisions:

9925, 2021-02 I.R.B. 296

9940, 2021-02 I.R.B. 311

9932, 2021-03 I.R.B. 345

9939, 2021-03 I.R.B. 376

9941, 2021-03 I.R.B. 396

9942, 2021-03 I.R.B. 450

9937, 2021-04 I.R.B. 495

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, 2020.

1

January 25, 2021

ii

Bulletin No. 2021–4

Finding List of Current Actions on

Previously Published Items1

Bulletin 2021–4

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, 2020.

1

Bulletin No. 2021–4

iii

January 25, 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.