Bulletin No. 2022–12

HIGHLIGHTS

OF THIS ISSUE





Bulletin No. 2022–12

March 21, 2022

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

EMPLOYMENT TAX

AOD 2022-2, page 903.

Nonacquiescence to the holding that relocation benefits provided by a railroad to its employees are exempt

from Railroad Retirement Tax Act (RRTA) taxation under

I.R.C. § 3231(e)(1)(iii).

INCOME TAX

Notice 2022-12, page 906.

Resident populations of the 50 states, the District of Columbia, Puerto Rico, and the insular areas for purposes

Finding Lists begin on page ii.

of determining the 2022 calendar year (1) state housing credit ceiling under section 42(h) of the Code, (2)

private activity bond volume cap under section 146,

and (3) private activity bond volume limit under section

142(k) are reproduced.

Rev. Rul. 2022-6, page 904.

Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the Income Tax Regulations, relating to the rule for valuing non-commercial

flights on employer-provided aircraft, the Standard

Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the first half of 2022 are

set forth.

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.

March 21, 2022 

Bulletin No. 2022–12

Actions Relating to Court

Decisions

It is the policy of the Internal Reve­

nue Service to announce at an early date

whether it will follow the holdings in cer­

tain cases. An Action on Decision is the

document making such an announcement.

An Action on Decision will be issued at

the discretion of the Service only on un­

appealed issues decided adverse to the

government. Generally, an Action on De­

cision is issued where its guidance would

be helpful to Service personnel working

with the same or similar issues. Unlike a

Treasury Regulation or a Revenue Ruling,

an Action on Decision is not an affirma­

tive statement of Service position. It is not

intended to serve as public guidance and

may not be cited as precedent.

Actions on Decisions shall be relied

upon within the Service only as conclu­

sions applying the law to the facts in the

particular case at the time the Action on

Decision was issued. Caution should be ex­

ercised in extending the recommenda­tion

1

of the Action on Decision to similar cases

where the facts are different. More­over,

the recommendation in the Action on De­

cision may be superseded by new legisla­

tion, regulations, rulings, cases, or Actions

on Decisions.

Prior to 1991, the Service published

acquiescence or nonacquiescence only in

certain regular Tax Court opinions. The

Service has expanded its acquiescence

program to include other civil tax cases

where guidance is determined to be help­

ful. Accordingly, the Service now may

acquiesce or nonacquiesce in the holdings

of memorandum Tax Court opinions, as

well as those of the United States District

Courts, Claims Court, and Circuit Courts

of Appeal. Regardless of the court decid­

ing the case, the recommendation of any

Action on Decision will be published in

the Internal Revenue Bulletin.

The recommendation in every Action

on Decision will be summarized as ac­

quiescence, acquiescence in result only,

or nonacquiescence. Both “acquies­

cence” and “acquiescence in result only”

mean that the Service accepts the holding

of the court in a case and that the Ser­

vice will follow it in disposing of cases

with the same controlling facts. How­

ever, “acqui­

escence” indicates neither

approval nor disapproval of the reasons

assigned by the court for its conclusions;

whereas, “acqui­escence in result only”

indicates disagree­ment or concern with

some or all of those reasons. “Nonacqui­

escence” signifies that, although no fur­

ther review was sought, the Service does

not agree with the hold­ing of the court

and, generally, will not follow the deci­

sion in disposing of cases involving other

taxpayers. In reference to an opinion of a

circuit court of appeals, a “nonacquies­

cence” indicates that the Ser­vice will not

follow the holding on a na­tionwide ba­

sis. However, the Service will recognize

the precedential impact of the opinion on

cases arising within the venue of the de­

ciding circuit.

The Commissioner does NOT ACQUI­

ESCE in the following decision:

CSX Corp. v. United States, 18 F.4th

672 (11th Cir. 2021).1

Nonacquiescence to the holding that relocation benefits provided by a railroad to its employees are exempt from Railroad Retirement Tax Act (RRTA) taxation under I.R.C. § 3231(e)(1)(iii).

Bulletin No. 2022–12

903

March 21, 2022

Part I

Rev. Rul. 2022-6

For purposes of the taxation of fringe

benefits under section 61 of the Internal

Revenue Code, section 1.61-21(g) of the

Income Tax Regulations provides a rule

for valuing noncommercial flights on

employer-provided aircraft. Section 1.6121(g)(5) provides an aircraft valuation

formula to determine the value of such

flights. The value of a flight is determined

under the base aircraft valuation formula

(also known as the Standard Industry Fare

Level formula or SIFL) by multiplying

the SIFL cents-per-mile rates applicable

for the period during which the flight was

taken by the appropriate aircraft multiple

provided in section 1.61-21(g)(7) and then

adding the applicable terminal charge. The

SIFL cents-per-mile rates in the formula

and the terminal charge are calculated by

the Department of Transportation (DOT)

and are reviewed semi-annually.

According to DOT, due to the effect of

the COVID-19 pandemic, airline indus­

try capacity (as measured by airline seat

miles) was reduced faster than airline in­

dustry expenses were reduced. Generally,

the SIFL rate is the result of airline indus­

try expenses divided by airline seat miles.

Because airline seat miles were reduced

faster than airline industry expenses, the

SIFL rate for the 6-month Tax Period Ef­

fective 1/1/2021 increased substantially.

Furthermore, in March 2020, the Coro­

navirus Aid, Relief, and Economic Securi­

ty Act was enacted, directing the Treasury

Department to allot up to $25 billion for

domestic carriers to cover payroll ex­

penses via grants and promissory notes,

known as the Payroll Support Program

(PSP). The PSP grants and PSP promisso­

ry notes offset airline industry expenses.

Accordingly, DOT provided two alterna­

tives to incorporate differing levels of the

PSP into the SIFL rate calculations to both

account for the PSP in the rate calcula­

tions and to mitigate the pandemic impact

on the SIFL rate. One calculation adjusts

the SIFL rates to account for PSP grants

only while the other calculation adjusts

the SIFL rates to account for both the PSP

grants and PSP promissory notes.

This revenue ruling contains these

three SIFL rates: (1) the Unadjusted SIFL

Rate, (2) the SIFL Rate Adjusted for PSP

Grants, and (3) the SIFL Rate Adjusted

for PSP Grants and Promissory Notes.

Taxpayers may use any of the three rates

when determining the value on noncom­

mercial flights of employer-provided air­

craft under section 1.61-21(g).

The following charts set forth the ter­

minal charges and SIFL mileage rates:

Unadjusted SIFL Rate

Period During Which

the Flight Is Taken

Terminal

Charge

SIFL Mileage

Rates

1/1/22 - 6/30/22

$44.98

Up to 500 miles

= $.2460 per mile

501-1500 miles

= $.1876 per mile

SIFL Rate Adjusted for PSP Grants

Over 1500 miles

= $.1803 per mile

1/1/22 - 6/30/22

$33.88

Up to 500 miles

= $.1853 per mile

501-1500 miles

= $.1413 per mile

SIFL Rate Adjusted for PSP Grants and Promissory Notes

Over 1500 miles

= $.1359 per mile

1/1/22 - 6/30/22

$29.45

Up to 500 miles

= $.1611 per mile

501-1500 miles

= $.1228 per mile

Over 1500 miles

= $.1181 per mile

March 21, 2022

904

Bulletin No. 2022–12

DRAFTING INFORMATION

The principal author of this revenue rul­

ing is Kathleen Edmondson of the Office

Bulletin No. 2022–12

of Associate Chief Counsel (Employee

Benefits, Exempt Organizations and Em­

ployment Taxes). For further information

regarding this revenue ruling, contact Ms.

905

Edmondson at (202) 317-6798 (not a tollfree number).

March 21, 2022

Part III

2022 Calendar Year

Resident Population

Figures

Notice 2022-12

This notice advises State and local hous­

ing credit agencies that allocate low-in­

come housing tax credits under § 42 of

the Internal Revenue Code, and States and

other issuers of tax-exempt private activ­

ity bonds under § 141, of the population

figures to use in calculating: (1) the 2022

calendar year population-based component

of the State housing credit ceiling (Credit

Ceiling) under § 42(h)(3)(C)(ii); (2) the

2022 calendar year volume cap (Volume

Cap) under § 146; and (3) the 2022 volume

limit (Volume Limit) under § 142(k)(5).

Generally, the population-based com­

ponent of both the Credit Ceiling and

the Volume Cap are determined under §

146(j), which requires determining the

population figures for any calendar year

on the basis of the most recent census es­

timate of the resident population of a State

(or issuing authority) released by the U.S.

Census Bureau before the beginning of the

calendar year. Similarly, § 142(k)(5) bases

the Volume Limit on the State population.

Sections 42(h)(3)(H) and 146(d)(2)

require adjusting for inflation the popula­

tion-based component of the Credit Ceil­

ing and the Volume Cap. The Credit Ceil­

ing adjustment for the 2022 calendar year

is in Rev. Proc. 2021-45, 2021-48 I.R.B

764. Section 3.09 of Rev. Proc. 2021-45

provides that, for calendar year 2022, the

amount for calculating the Credit Ceil­

ing under § 42(h)(3)(C)(ii) is the greater

of $2.60 multiplied by the State popula­

tion, or $2,975,000. Further, section 3.20

of Rev. Proc. 2021-45 provides that the

amount for calculating the Volume Cap

Alabama

Alaska

American Samoa

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

District of Columbia

Florida

Georgia

Guam

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

March 21, 2022

under § 146(d)(1) for calendar year 2022

is the greater of $110 multiplied by the

State population, or $335,115,000.

For the 50 states, the District of Colum­

bia, and Puerto Rico, the population fig­

ures for calculating the Credit Ceiling, the

Volume Cap, and the Volume Limit for the

2022 calendar year are the resident pop­

ulation estimates released electronically

by the U.S. Census Bureau on December

21, 2021, and described in Press Release

CB21-208. For American Samoa, Guam,

the Northern Mariana Islands, and the

U.S. Virgin Islands, the population figures

for the 2022 calendar year are the 2021

midyear population figures in the U.S.

Census Bureau’s International Data Base

(IDB). The U.S. Census Bureau electron­

ically announced an update of the IDB

on December 21, 2021, in Press Release

CB21-TPS.148.

For convenience, these figures are re­

printed below.

Resident Population Figures

5,039,877

732,673

46,366

7,276,316

3,025,891

39,237,836

5,812,069

3,605,597

1,003,384

670,050

21,781,128

10,799,566

168,801

1,441,553

1,900,923

12,671,469

6,805,985

3,193,079

2,934,582

4,509,394

4,624,047

1,372,247

6,165,129

6,984,723

10,050,811

5,707,390

2,949,965

6,168,187

1,104,271

906

Bulletin No. 2022–12

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Northern Mariana Islands

Ohio

Oklahoma

Oregon

Pennsylvania

Puerto Rico

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Virgin Islands, U.S.

Washington

West Virginia

Wisconsin

Wyoming

The principal authors of this notice are

Michael J. Torruella Costa, Office of the

Associate Chief Counsel (Passthroughs

Bulletin No. 2022–12

Resident Population Figures

1,963,692

3,143,991

1,388,992

9,267,130

2,115,877

19,835,913

10,551,162

774,948

51,659

11,780,017

3,986,639

4,246,155

12,964,056

3,263,584

1,095,610

5,190,705

895,376

6,975,218

29,527,941

3,337,975

645,570

8,642,274

105,870

7,738,692

1,782,959

5,895,908

578,803

and Special Industries), and Lewis Bell,

Office of the Associate Chief Counsel

(Financial Institutions and Products). For

907

further information regarding this notice,

please contact Mr. Torruella Costa at (202)

317-4137 (not a toll-free number).

March 21, 2022

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

­effect:

Amplified describes a situation where

no change is being made in a prior pub­

lished 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 ap­

plied 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 be­

ing made clear because the language has

caused, or may cause, some confusion. It

is not used where a position in a prior rul­

ing is being changed.

Distinguished describes a situation

where a ruling mentions a previously pub­

lished 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 pub­

lished ruling that is not considered deter­

minative 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 sub­

stance 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 previous­

ly 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 rul­

ings 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 cas­

es in litigation, or the outcome of a Ser­

vice study.

Abbreviations

The following abbreviations in current

use and formerly used will appear in

material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2022–12

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.

March 21, 2022

Numerical Finding List1

Bulletin 2022–12

Announcements:

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

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

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

Treasury Decisions:

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

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

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

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

AOD:

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

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

Notices:

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

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

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

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

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

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

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

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

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

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

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

Proposed Regulations:

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

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

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

Revenue Procedures:

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

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

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

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

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

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

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

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

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

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

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

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

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

Revenue Rulings:

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

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

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

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

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

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

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

2020–52, dated December 27, 2021.

1

March 21, 2022

ii

Bulletin No. 2022–12

Finding List of Current Actions on

Previously Published Items1

Bulletin 2022–12

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

2020–52, dated December 27, 2021.

1

Bulletin No. 2022–12

iii

March 21, 2022

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

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