# Bulletin No. 2026–26

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## Record

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

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2026–26
June 22, 2026

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.

ESTATE TAX
REG-103193-26, page 1593.

These proposed regulations would amend the current regulations to increase the amount of the user fee for authorized
persons who wish to request the issuance of IRS Letter 627,
also referred to as an estate tax closing letter. Pursuant to
the guidelines in OMB Circular A-25, the IRS has calculated
its cost of providing the estate tax closing letter to be $76.

EXCISE TAX, EXEMPT
ORGANIZATIONS
Notice 2026-36, page 1587.

This notice announces intent to issue proposed regulations
under section 4960 pertaining to the tax on excess tax-exempt organization executive compensation. It is anticipated
that the proposed regulations will address the expanded definition of covered employee made to section 4960 by the

Finding Lists begin on page ii.

OBBBA. This notice also provides transition relief for applicable tax-exempt organizations (ATEOs) and their related organizations, allowing for certain exceptions to the definition of
covered employee provided in the section 4960 regulations
to continue to apply until further guidance is issued. This
notice also solicits public comments.

INCOME TAX
Notice 2026-37, page 1589.

This notice publishes the inflation adjustment factor and
reference price for calendar year 2026 for the renewable
electricity production credit under section 45 of the Internal
Revenue Code. The 2026 inflation adjustment factor and
reference price are used in determining the availability of
the credit and apply to calendar year 2026 sales of kilowatt hours of electricity produced in the United States or
a possession thereof from qualified energy resources. This
notice also provides the credit amounts for calendar year
2026 under section 45.

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.

June 22, 2026 

Bulletin No. 2026–26

Part III
Notice of Intent to Issue
Regulations Under
Section 4960
Notice 2026-36
SECTION 1. PURPOSE
This notice announces that the Department of the Treasury (Treasury Department) and the Internal Revenue Service
(IRS) intend to issue proposed regulations under section 4960 of the Internal
Revenue Code (Code)1 pertaining to the
tax on excess tax-exempt organization
executive compensation. It is anticipated
that the proposed regulations will address
the effective date of the amendment to
the definition of covered employee made
by section 70416 of Public Law 119-21,
139 Stat. 72 (July 4, 2025), commonly
known as the One, Big, Beautiful Bill
Act (OBBBA) and will also propose
exceptions to the definition of covered
employee that are similar to the limited
hours and nonexempt funds exceptions in
the existing section 4960 regulations. This
notice also solicits public comments on
the matters addressed in this notice.
SECTION 2. BACKGROUND
.01 Overview of section 4960. Section
4960 generally imposes an excise tax on
any applicable tax-exempt organization
(ATEO) or related person or governmental
entity that pays a covered employee remuneration in excess of $1 million in a taxable year or an excess parachute payment.
.02 Pre-OBBBA definition of covered
employee. As originally enacted in 2017
under Section 13602 of the Tax Cuts
and Jobs Act, Pub. L. No. 115-97, 131
Stat. 2054, 2157 (Dec. 22, 2017), section 4960(c)(2) of the Code defined a covered employee as any employee (including any former employee) of an ATEO if
the employee (1) is one of the five high-

1

est-compensated employees of the ATEO
for the taxable year, or (2) was a covered
employee of the ATEO (or any predecessor) for any preceding taxable year beginning after December 31, 2016. On January 19, 2021, the Treasury Department
and IRS published final regulations under
section 4960 in the Federal Register (T.D.
9938, 86 FR 6196) (section 4960 regulations).
.03 Exceptions to five highest-compensated employees under the section
4960 regulations. Section 53.4960-1(d)
(2) defines the term “five highest-compensated employees” of an ATEO. Section 53.4960-1(d)(2)(ii), (iii), and (iv) provide “limited hours,” “nonexempt funds,”
and “limited services” exceptions to this
definition, respectively. Under the section
4960 regulations, an individual meeting
any of these exceptions is disregarded for
purposes of determining an ATEO’s five
highest-compensated employees for a taxable year. An individual who was a covered employee of an ATEO (not qualifying
for an exception to being one of the five
highest-compensated employees) for any
taxable year beginning after December 31,
2016, remains a covered employee for all
future years because covered employee
status is permanent.
.04 Reason for the exceptions in the
section 4960 regulations. The limited
hours exception and nonexempt funds
exception were adopted in response to
commenters requesting exceptions for situations in which employees of non-ATEO
related organizations perform limited or
temporary services for the related ATEO
(in particular, while receiving no compensation from the ATEO). The limited services exception was adopted to prevent
an employee to whom the ATEO paid
minimal remuneration from displacing
an employee who would otherwise have
been one of the five highest-compensated
employees (and thus a covered employee)
of the ATEO.
.05 OBBBA changes to the definition
of covered employee. Section 70416 of
the OBBBA revised the definition of

“covered employee.” For taxable years
beginning after December 31, 2025, the
term “covered employee” means any
employee of an ATEO (or any predecessor of an ATEO) and any former employee
of an ATEO (or its predecessor) who was
such an employee during any taxable
year beginning after December 31, 2016.
Thus, after the OBBBA, the definition of
covered employee in section 4960 is no
longer limited to an ATEO’s five highest-compensated employees, and the section 4960 regulations’ exceptions to the
“five highest-compensated employees” of
an ATEO no longer apply by their terms.
SECTION 3. APPLICABILITY OF
POST-OBBBA DEFINITION OF
COVERED EMPLOYEE
Section 70416(b) of the OBBBA provides that the amendment to the definition of covered employee applies to
taxable years beginning after December
31, 2025. The Treasury Department and
the IRS interpret this effective-date provision to broaden the definition of covered employee only for taxable years of
an ATEO beginning after December 31,
2025, and to retain the prior definition of
covered employee for taxable years beginning on or before December 31, 2025,
including for purposes of determining for
a taxable year beginning after December
31, 2025, whether a former employee
was a covered employee in a taxable
year beginning on or before December
31, 2025. Accordingly, the definition of
covered employee under section 4960(c)
(2), as amended by the OBBBA, includes
only—
• Any individual who was an employee
of an ATEO in any taxable year beginning after December 31, 2016, and on
or before December 31, 2025, if the
individual was a covered employee
for the taxable year under prior law,
and
• Any individual who is an employee of
an ATEO in any taxable year beginning after December 31, 2025 (subject

Unless otherwise provided, all “section” references are to sections of the Code or the Regulations on Foundation and Similar Excise Taxes (26 CFR Part 53).

Bulletin No. 2026–26

1587

June 22, 2026

to any exceptions provided in future
guidance, such as those described in
section 4.01 of this notice).
SECTION 4. FORTHCOMING
PROPOSED REGULATIONS
.01 Intent to issue regulations. The
Treasury Department and the IRS intend
to issue proposed regulations (forthcoming proposed regulations) revising the
section 4960 regulations by removing references to an ATEO’s five highest-compensated employees and making conforming
changes. It is anticipated that the forthcoming proposed regulations would provide the interpretation of the post-OBBBA
definition of covered employee described
in section 3 of this notice. It is also anticipated that the proposed regulations would
provide covered employee exceptions
for limited hours and nonexempt funds
similar to those in section 53.4960-1(d)
(2)(ii) and (iii), but would not provide a
limited services exception to the amended
definition of covered employee because
the concern that motivated that exception—displacement of an employee who
would otherwise have been one of the
five highest-compensated employees of
the ATEO—is no longer relevant. The
forthcoming proposed regulations may
also address other issues, such as issues
reserved in the existing section 4960 regulations.
.02 Prospective changes. It is anticipated that the forthcoming proposed regulations would be prospective and would
not apply to taxable years beginning
before the issuance of final regulations.
SECTION 5. RELIANCE
.01 Interpretation of the post-OBBBA
definition of covered employee and limited
hours and nonexempt funds exceptions.
Until the forthcoming proposed regulations are issued, ATEOs may rely on the
rules described in section 4.01 of this
notice that are anticipated to be included
in the proposed regulations.

June 22, 2026

.02 Example.

Facts. ATEO 1 (an ATEO) and CORP 2 (a taxable-related organization) use a calendar taxable
year. Employees A and B have been employees of
CORP 2 and ATEO 1 since 2017. Employee A was a
covered employee for ATEO 1’s taxable year beginning on January 1, 2025, because Employee A was
one of ATEO 1’s five highest-compensated employees and did not qualify for an exception to such status for 2025. Employee B has never been one of the
five highest-compensated employees of ATEO 1 and
meets the requirements of the limited hours exception for ATEO 1’s taxable year beginning on January
1, 2026. Employee C has been an employee of CORP
2 since 2017 and was an employee of ATEO 1 only
in 2020, but not one of its five highest-compensated
employees because there were more than 5 individuals with higher remuneration than Employee C for
the 2020 taxable year.
Conclusion. Employee A is a covered employee
of ATEO 1 for taxable year 2026 because Employee
A was a covered employee for 2025 and covered
employee status, once obtained, is permanent.
In accordance with section 5.01 of this notice,
ATEO 1 may rely on the interpretation of the postOBBBA definition of covered employee described in
section 3 of this notice and the limited hours exception to determine that Employee B is not a covered
employee of ATEO 1 for taxable year 2026.
In accordance with section 5.01 of this
notice, ATEO 1 may rely on the interpretation of the post-OBBBA definition of covered
employee described in section 3 of this notice
to determine that Employee C is not a covered
employee of ATEO 1 for taxable year 2026 by
reason of being a former employee of ATEO
1. Although Employee C was an employee of
ATEO 1 in 2020, Employee C was not a covered employee for that taxable year under the
interpretation of the post-OBBBA definition of
covered employee described in section 3 of this
notice and thus was not a covered employee for
any taxable year through 2025 under prior law.
If Employee C becomes an employee of ATEO
1 in a post-2025 taxable year and does not meet
any applicable exception to covered employee
status, Employee C will be a covered employee
of ATEO 1 for that taxable year and all future
taxable years.

SECTION 6. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments regarding all issues
raised by this notice, in particular: (1)
any changes that are needed or appropriate to adapt the current limited hours and
nonexempt funds exceptions to the new

1588

definition of covered employee under
the OBBBA and the appropriateness of
applying these exceptions to officers of
the ATEO, and (2) any other issues that
should be addressed in the forthcoming
proposed regulations.
SECTION 7. SUBMISSION OF
COMMENTS
.01 Written comments should be submitted on or before August 4, 2026. Consideration will be given, however, to any
written comment submitted after such
date, if such consideration will not delay
the issuance of guidance. The subject line
for the comments should include a reference to Notice 2026-36. Comments may
be submitted in one of two ways:
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2026-0233 in the search
field on the regulations.gov homepage to
find this notice and submit comments).
(2) Alternatively, by mail to: Internal
Revenue Service, CC:PA:01:PR (Notice
2026-36), Room 5503, P.O. Box 7604,
Ben Franklin Station, Washington, DC
20044.
.02 All commenters are strongly
encouraged to submit comments electronically. The Treasury Department and the
IRS will publish for public availability
any comment submitted electronically,
or on paper, to the IRS’s public docket on
www.regulations.gov.
SECTION 8. DRAFTING
INFORMATION
The principal authors of this notice are
Robert C. Weedman and Ward L. Thomas
of the Office of Associate Chief Counsel
(Employee Benefits, Exempt Organizations, and Employment Taxes). For further information regarding this notice,
contact Mr. Weedman at (202) 317-3517
or Mr. Thomas at (202) 317-6173 (not a
toll-free number).

Bulletin No. 2026–26

Credit for Renewable
Electricity Production and
Publication of Inflation
Adjustment Factor and
Reference Price for
Calendar Year 2026
Notice 2026-37
This notice publishes the inflation
adjustment factor and reference price for
calendar year 2026 for the renewable electricity production credit under section 45
of the Internal Revenue Code (section 45
credit). The 2026 inflation adjustment factor and reference price are used in determining the availability of the credit and
apply to calendar year 2026 sales of kilowatt hours of electricity produced in the
United States or a possession thereof from
qualified energy resources.
BACKGROUND
Section 45 was amended by section
13101 of Public Law 117-169, 136 Stat.
1818 (August 16, 2022), commonly
known as the Inflation Reduction Act of
2022 (IRA). The IRA changed the manner
in which the section 45 credit amounts are
calculated for any qualified facility placed
in service after December 31, 2021.
As amended by the IRA, section 45(b)
(6)(A) provides that, in the case of any
qualified facility that satisfies the requirements of section 45(b)(6)(B), the credit
amount determined under section 45(a)
(determined after the application of section 45(b)(1) through (5) and without
regard to section 45(b)(6)) is equal to
such amount multiplied by 5. A qualified
facility satisfies the requirements of section 45(b)(6)(B) if it is placed in service
after December 31, 2021, and it is one of
the following: (i) a facility with a maximum net output of less than 1 megawatt
(as measured in alternating current); (ii)
a facility the construction of which began

prior to January 29, 2023, which is the
date that is 60 days after the publication of
the guidance with respect to the requirements of section 45(b)(7)(A) (prevailing
wage requirements) and section 45(b)(8)
(apprenticeship requirements);1 or (iii) a
facility that satisfies the requirements of
section 45(b)(7)(A) and (8). The IRA also
added bonus credit amounts with respect
to qualified facilities placed in service after
December 31, 2022, that meet domestic
content requirements under section 45(b)
(9)2 or energy community requirements
under section 45(b)(11).3
The IRA amended the phaseout of the
section 45 credit for wind facilities under
section 45(b)(5) such that it does not apply
to facilities placed in service after December 31, 2021. The IRA also added a new
phaseout of the section 45 credit under
section 45(b)(10) in the case of qualified
facilities placed in service after December
31, 2022, for taxpayers making an elective payment election under section 6417.
The IRA also amended the credit amount
reduction under section 45(b)(3) in the
case of qualified facilities the construction
of which began after August 16, 2022.
The IRA amended section 45(d)(4) to
restore the section 45 credit for electricity produced in solar energy facilities in
the case of qualified facilities placed in
service after December 31, 2021, and the
construction of which began before January 1, 2025. Effective for facilities placed
in service after December 31, 2022, the
IRA (1) removed the one-half reduction
of the credit amount under section 45(b)
(4)(A) for qualified hydropower facilities
and marine and hydrokinetic renewable
energy facilities and (2) amended the definition of marine and hydrokinetic renewable energy under section 45(c)(10) and
the definition of a marine and hydrokinetic
renewable energy facility under section
45(d)(11). The IRA also extended certain
deadlines in the definitions under section
45(d) for wind facilities, closed-loop biomass facilities, open-loop biomass facilities, geothermal facilities, landfill gas
facilities, trash facilities, qualified hydro-

power facilities, and marine and hydrokinetic renewable energy facilities.
Section 45(a) provides that the renewable electricity production credit for any
tax year is an amount equal to the product
of the kilowatt hours of specified electricity produced by the taxpayer and sold to
an unrelated person during the tax year
multiplied by 1.5 cents (in the case of a
qualified facility placed in service before
January 1, 2022) or 0.3 cents (in the case
of a qualified facility placed in service
after December 31, 2021). This electricity
must be produced from qualified energy
resources and at a qualified facility during
the 10-year period beginning on the date
the facility was originally placed in service.
Section 45(b)(1) provides that the
amount of the credit determined under
section 45(a) is reduced by an amount
which bears the same ratio to the amount
of the credit as the amount by which the
reference price for the calendar year in
which the sale occurs exceeds 8 cents,
bears to 3 cents. Under section 45(b)(2),
the 1.5 cent (or 0.3 cent) amount in section 45(a) and the 8 cent amount in section
45(b)(1) are each adjusted by multiplying
such amount by the inflation adjustment
factor for the calendar year in which the
sale occurs. In the case of any qualified
facility placed in service before January
1, 2022, if any amount as increased under
section 45(b)(2) is not a multiple of 0.1
cent, such amount is rounded to the nearest multiple of 0.1 cent. In the case of any
qualified facility placed in service after
December 31, 2021, if the 0.3 cent amount
as increased under section 45(b)(2) is not
a multiple of 0.05 cent, such amount is
rounded to the nearest multiple of 0.05
cent.
In the case of electricity produced in
open-loop biomass facilities, landfill gas
facilities, trash facilities, qualified hydropower facilities, and, if placed in service before January 1, 2023, marine and
hydrokinetic renewable energy facilities,
section 45(b)(4)(A) requires the amount in
effect under section 45(a)(1) for such cal-

See §§ 1.45-6, 1.45-7, 1.45-8, and 1.45-12 of the Income Tax Regulations for additional information regarding the requirements of section 45(b)(6)(B).
See Notice 2023-38, 2023-22 I.R.B. 872 (May 12, 2023), Notice 2024-41, 2024-24 I.R.B. 1615 (May 16, 2024), corrected at IR 2024-147 (May 24, 2024), and Notice 2025-08, 2025-8 I.R.B.
800 (February 18, 2025), for additional information regarding the domestic content bonus credit.
3
See Notice 2024-30, 2024-16 I.R.B. 878 (April 15, 2024), for additional information regarding the energy community bonus credit.
1
2

Bulletin No. 2026–26

1589

June 22, 2026

endar year (determined before rounding as
required by section 45(b)(2)) to be reduced
by one-half. As amended by the IRA, the
one-half reduction under section 45(b)(4)
(A) no longer applies to qualified hydropower facilities and marine and hydrokinetic renewable energy facilities placed in
service after December 31, 2022.
Section 45(b)(5) provides that in the
case of any qualified wind facility placed
in service before January 1, 2022, the
amount of the credit determined under
section 45(a) (determined after the application of section 45(b)(1), (2), and (3) and
without regard to section 45(b)(5)) shall
be reduced by (A) in the case of any facility the construction of which began after
December 31, 2016, and before January 1,
2018, 20 percent, (B) in the case of any
facility the construction of which began
after December 31, 2017, and before January 1, 2019, 40 percent, (C) in the case
of any facility the construction of which
began after December 31, 2018, and
before January 1, 2020, 60 percent, and
(D) in the case of any facility the construction of which began after December
31, 2019, and before January 1, 2022, 40
percent.
Section 45(c)(1) defines qualified
energy resources as wind, closed-loop
biomass, open-loop biomass, geothermal energy, solar energy, municipal solid
waste, qualified hydropower production,
and marine and hydrokinetic renewable
energy.
Section 45(d)(1) defines a qualified
facility using wind to produce electricity as any facility owned by the taxpayer
that was originally placed in service after
December 31, 1993, and the construction
of which began before January 1, 2025.
See section 45(e)(7) for rules relating to
the inapplicability of the credit to electricity sold to utilities under certain contracts.
Section 45(d)(2)(A) defines a qualified
facility using closed-loop biomass to produce electricity as any facility owned by
the taxpayer that was originally placed in
service after December 31, 1992, and the
construction of which began before January 1, 2025, or owned by the taxpayer
which before January 1, 2025, was originally placed in service and modified to use
closed-loop biomass to co-fire with coal,
with other biomass, or with both, but only
if the modification is approved under the

June 22, 2026

Biomass Power for Rural Development
Programs or is part of a pilot project of
the Commodity Credit Corporation as
described in 65 FR 63052. For purposes
of section 45(d)(2)(A)(ii), a facility shall
be treated as modified before January 1,
2025, if the construction of such modification began before such date. Section 45(d)
(2)(C) provides that in the case of a qualified facility described in section 45(d)(2)
(A)(ii), the 10-year period referred to in
section 45(a) is treated as beginning no
earlier than the date of the enactment of
section 45(d)(2)(C)(i) (October 22, 2004),
and if the owner of such facility is not the
producer of the electricity, the person eligible for the credit allowable under section
45(a) is the lessee or the operator of such
facility. A qualified facility using closedloop biomass includes a new unit placed
in service after the date of the enactment
of section 45(d)(2)(B) (October 3, 2008)
in connection with a qualified facility
using closed-loop biomass, but only to the
extent of the increased amount of electricity produced at the facility by reason of
such new unit.
Section 45(d)(3)(A) defines a qualified facility using open-loop biomass to
produce electricity as any facility owned
by the taxpayer which in the case of a
facility using agricultural livestock waste
nutrients, was originally placed in service
after the date of the enactment of section
45(d)(3)(A)(i)(I) (October 22, 2004) and
the construction of which began before
January 1, 2025, and the nameplate capacity rating of which is not less than 150
kilowatts, and in the case of any other
facility, the construction of which began
before January 1, 2025. In the case of any
facility described in section 45(d)(3)(A),
if the owner of such facility is not the producer of the electricity, section 45(d)(3)
(C) provides that the person eligible for
the credit allowable under section 45(a) is
the lessee or the operator of such facility.
A qualified facility using open-loop biomass includes a new unit placed in service
after the date of the enactment of section
45(d)(3)(B) (October 3, 2008) in connection with a qualified facility using openloop biomass, but only to the extent of the
increased amount of electricity produced
at the facility by reason of such new unit.
Section 45(d)(4) defines a qualified
facility using geothermal energy to pro-

1590

duce electricity as any facility owned by
the taxpayer that was originally placed in
service after the date of the enactment of
section 45(d)(4) (October 22, 2004) and
the construction of which began before
January 1, 2025. A qualified facility using
geothermal energy does not include any
property described in section 48(a)(3) the
basis of which is taken into account by the
taxpayer for purposes of determining the
energy credit under section 48.
As amended by the IRA and effective
for solar energy facilities placed in service
after December 31, 2021, section 45(d)(4)
also defines a qualified facility using solar
energy to produce electricity as any facility owned by the taxpayer that was originally placed in service after the date of the
enactment of section 45(d)(4) (October
22, 2004) and the construction of which
began before January 1, 2025. A qualified
facility using solar energy does not include
any property described in section 48(a)(3)
the basis of which is taken into account by
the taxpayer for purposes of determining
the energy credit under section 48.
Section 45(d)(6) defines a qualified
facility using gas derived from the biodegradation of municipal solid waste to
produce electricity as any facility owned
by the taxpayer that was originally placed
in service after the date of the enactment
of section 45(d)(6) (October 22, 2004) and
the construction of which began before
January 1, 2025.
Section 45(d)(7) defines a qualified
facility (other than a facility described in
section 45(d)(6)) that uses municipal solid
waste to produce electricity as any facility owned by the taxpayer that was originally placed in service after the date of the
enactment of section 45(d)(7) (October
22, 2004) and the construction of which
began before January 1, 2025. A qualified facility using municipal solid waste
includes a new unit placed in service in
connection with a facility placed in service on or before the date of the enactment
of section 45(d)(7), but only to the extent
of the increased amount of electricity produced at the facility by reason of such new
unit.
Section 45(d)(9) defines a qualified
facility producing qualified hydroelectric
production (as described in section 45(c)
(8)) as (i) any facility producing incremental hydropower production, but only to the

Bulletin No. 2026–26

extent of its incremental hydropower production attributable to efficiency improvements or additions to capacity described in
section 45(c)(8)(B) placed in service after
the date of the enactment of section 45(d)
(9) (August 8, 2005) and before January
1, 2025, and (ii) any other facility placed
in service after the date of the enactment
of section 45(d)(9) (August 8, 2005) and
the construction of which began before
January 1, 2025. Section 45(d)(9)(B) provides that, in the case of a qualified facility described in section 45(d)(9)(A), the
10-year period referred to in section 45(a)
shall be treated as beginning on the date
the efficiency improvements or additions
to capacity are placed in service. Section
45(d)(9)(C) provides that for purposes
of section 45(d)(9)(A)(i), an efficiency
improvement or addition to capacity shall
be treated as placed in service before January 1, 2025, if the construction of such
improvement or addition began before
such date.
As amended by the IRA, section 45(d)
(11) provides that, in the case of a facility producing electricity from marine
and hydrokinetic renewable energy, the
term “qualified facility” means any facility owned by the taxpayer which has a
nameplate capacity rating of at least 150
kilowatts (or at least 25 kilowatts in the
case of a facility placed in service after
December 31, 2022), and was originally
placed in service on or after the date of
the enactment of section 45(d)(11) (October 3, 2008) and the construction of which
began before January 1, 2025.
Section 45(e)(2)(A) requires the Secretary to determine and publish in the Federal Register each calendar year the inflation adjustment factor and the reference
price for such calendar year. The inflation
adjustment factor and the reference price
for the 2026 calendar year were published
in the Federal Register at 91 FR 32511 on
June 1, 2026.
Section 45(e)(2)(B) defines the inflation adjustment factor for a calendar year
as a fraction the numerator of which is the
GDP implicit price deflator for the preceding calendar year and the denominator
of which is the GDP implicit price deflator for the calendar year 1992. The term

“GDP implicit price deflator” means the
most recent revision of the implicit price
deflator for the gross domestic product as
computed and published by the Department of Commerce before March 15 of
the calendar year.
Section 45(e)(2)(C) provides that the
reference price with respect to a calendar
year is the Secretary’s determination of
the annual average contract price per kilowatt hour of electricity generated from the
same qualified energy resource and sold
in the previous year in the United States.
Only contracts entered into after December 31, 1989, are taken into account.
INFLATION ADJUSTMENT
FACTOR AND REFERENCE PRICE
The inflation adjustment factor for
calendar year 2026 for qualified energy
resources is 2.0570.
The reference price for calendar year
2026 for facilities producing electricity
from wind (based upon information provided by the Department of Energy) is
3.17 cents per kilowatt hour. The reference prices for facilities producing electricity from closed-loop biomass, openloop biomass, geothermal energy, solar
energy, municipal solid waste, qualified
hydropower production, and marine and
hydrokinetic renewable energy have not
been determined for calendar year 2026.
PHASEOUT CALCULATION
Because the 2026 reference price for
electricity produced from wind (3.17 cents
per kilowatt hour) does not exceed 8 cents
multiplied by the inflation adjustment factor (2.0570), the phaseout of the credit provided in section 45(b)(1) does not apply to
such electricity sold during calendar year
2026. However, section 45(b)(5) provides
an additional phaseout of the credit for
wind facilities placed in service before
January 1, 2022, and the construction of
which began after December 31, 2016.
For electricity produced from closed-loop
biomass, open-loop biomass, geothermal energy, solar energy, municipal solid
waste, qualified hydropower production,
and marine and hydrokinetic renewable

energy, the phaseout of the credit provided
in section 45(b)(1) does not apply to such
electricity sold during calendar year 2026.
CREDIT AMOUNT FOR A
QUALIFIED FACILITY PLACED
IN SERVICE BEFORE JANUARY 1,
2022
As required by section 45(b)(2), the 1.5
cent amount provided in section 45(a)(1)
is adjusted by multiplying such amount
by the inflation adjustment factor for the
calendar year in which the sale occurs.
If any amount as increased under section
45(b)(2) is not a multiple of 0.1 cent, such
amount is rounded to the nearest multiple of 0.1 cent. In the case of electricity
produced in open-loop biomass facilities,
landfill gas facilities, trash facilities, qualified hydropower facilities, and marine and
hydrokinetic renewable energy facilities,
section 45(b)(4)(A) requires the amount in
effect under section 45(a)(1) for such calendar year (before rounding to the nearest
0.1 cent as required by section 45(b)(2)) to
be reduced by one-half.4
Under the calculation required by section 45(b)(2), the credit for renewable
electricity production for calendar year
2026 determined under section 45(a) is
3.1 cents per kilowatt hour on the sale of
electricity produced in any qualified facility placed in service before January 1,
2022, from the qualified energy resources
of wind, closed-loop biomass, and geothermal energy, and 1.5 cents per kilowatt
hour on the sale of electricity produced
in any qualified facility placed in service
before January 1, 2022, from the qualified
energy resources of open-loop biomass,
landfill gas, trash, qualified hydropower,
and marine and hydrokinetic renewable
energy.
CREDIT AMOUNT FOR A
QUALIFIED FACILITY PLACED IN
SERVICE AFTER DECEMBER 31,
2021
As required by section 45(b)(2), the 0.3
cent amount provided in section 45(a)(1)
is adjusted by multiplying such amount by
the inflation adjustment factor for the cal-

As amended by the IRA and discussed later in this notice, the one-half reduction under section 45(b)(4)(A) no longer applies to qualified hydropower facilities and marine and hydrokinetic
renewable energy facilities placed in service after December 31, 2022.
4

Bulletin No. 2026–26

1591

June 22, 2026

endar year in which the sale occurs. If the
0.3 cent amount as adjusted for inflation
is not a multiple of 0.05 cent, the amount
is rounded to the nearest multiple of 0.05
cent. In the case of electricity produced
in open-loop biomass facilities, landfill
gas facilities, trash facilities, qualified
hydropower facilities, and marine and
hydrokinetic renewable energy facilities,
section 45(b)(4)(A) requires the amount
in effect under section 45(a)(1) for such
calendar year (determined before rounding as required by section 45(b)(2)) to be
reduced by one-half.
Under the calculation required by section 45(b)(2), the credit for renewable
electricity production for calendar year
2026 determined under section 45(a) is
0.6 cents per kilowatt hour on the sale of
electricity produced in any qualified facility placed in service after December 31,
2021, from the qualified energy resources
of wind, closed-loop biomass, geothermal
energy, and solar energy, and 0.3 cents
per kilowatt hour on the sale of electricity

June 22, 2026

produced in any qualified facility placed
in service after December 31, 2021, from
the qualified energy resources of openloop biomass, landfill gas and trash. The
credit for renewable electricity production for calendar year 2026 determined
under section 45(a) is also 0.3 cents per
kilowatt hour on the sale of electricity
produced in any qualified facility placed
in service after December 31, 2021, and
before January 1, 2023, from the qualified
energy resources of qualified hydropower
and marine and hydrokinetic renewable
energy.

ified hydropower facilities and marine
and hydrokinetic renewable energy facilities placed in service after December 31,
2022. Accordingly, under the calculation
required by section 45(b)(2), the credit
for renewable electricity production for
calendar year 2026 determined under section 45(a) is 0.6 cents per kilowatt hour
on the sale of electricity produced in any
qualified facility placed in service after
December 31, 2022, from the qualified
energy resources of qualified hydropower
and marine and hydrokinetic renewable
energy.

CREDIT AMOUNT FOR
QUALIFIED HYDROPOWER
FACILITIES AND MARINE AND
HYDROKINETIC RENEWABLE
ENERGY FACILITIES PLACED IN
SERVICE AFTER DECEMBER 31,
2022

DRAFTING AND CONTACT
INFORMATION

The one-half reduction under section
45(b)(4)(A) no longer applies to qual-

1592

The principal author of this notice
is Charles Hyde of the Office of Associate Chief Counsel (Energy, Credits,
and Excise Tax). For further information regarding this notice contact Mr.
Hyde at (202) 317-6853 (not a toll-free
number).

Bulletin No. 2026–26

Part IV
Notice of Proposed
Rulemaking
Estate Tax Closing Letter
User Fee Update

6859; concerning cost methodology, CFO
Cost and User Fees at (202) 317-6400;
concerning submissions of comments or
requests for a public hearing, the Publications and Regulations Section at (202) 3176901 (not toll-free numbers) or by email at
publichearings@irs.gov (preferred).

REG-103193-26

SUPPLEMENTARY INFORMATION:

AGENCY: Internal Revenue Service
(IRS), Treasury.

Authority

ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains proposed regulations amending the current
regulations to increase the amount of the
user fee imposed on authorized persons
requesting the issuance of an estate tax closing letter. The Independent Offices Appropriations Act of 1952 authorizes charging
user fees in appropriate circumstances. The
proposed regulations would affect persons
who request an estate tax closing letter.
DATES: Written or electronic comments
and requests for a public hearing must be
received by July 2, 2026.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically. Submit electronic submissions via the Federal eRulemaking Portal
at https://www.regulations.gov (indicate
IRS and REG-103193-26) by following
the online instructions for submitting comments. Requests for a public hearing must be
submitted as prescribed in the “Comments
and Request for Public Hearing” section.
Once submitted to the Federal eRulemaking Portal, comments cannot be edited or
withdrawn. The Department of the Treasury
(Treasury Department) and the IRS will
publish for public availability any comments
submitted to the IRS’s public docket. Send
paper submissions to: CC:PA:01:PR (REG103193-26), Room 5503, Internal Revenue
Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Juli Ro Kim at (202) 317-

Bulletin No. 2026–26

This notice of proposed rulemaking
proposes amendments to 26 CFR part 300
regarding user fees for authorized persons
who request the issuance of an estate tax
closing letter (also referred to as the IRS
Letter 627).
The Independent Offices Appropriations Act of 1952 (IOAA) (31 U.S.C.
9701) authorizes each agency to prescribe regulations that establish user fees
for services provided by the agency. The
IOAA provides that regulations implementing user fees are subject to policies
prescribed by the President; these policies
are set forth in the Office of Management
and Budget Circular A-25, 58 FR 38142
(July 15, 1993) (OMB Circular A-25).
The IOAA states that the services provided by an agency should be self-sustaining to the extent possible. Under OMB
Circular A-25, agencies that provide services that confer special benefits on identifiable recipients beyond those accruing to
the general public must identify those services, determine whether user fees should
be assessed for those services, and, if so,
establish user fees that recover the full
cost of providing those services, unless
an exception to the full cost requirement
is granted. As required by the IOAA and
OMB Circular A-25, agencies are to
review user fees biennially and update
them as necessary to reflect changes in the
cost of providing the underlying services.
Background and Explanation of
Provisions
A. Estate Tax Closing Letter User Fee
On September 28, 2021, the Treasury
Department and the IRS published final

1593

regulations (TD 9957) in the Federal
Register (86 FR 53539) establishing a $67
user fee to apply to requests for the issuance of an estate tax closing letter, based
on a 2019 Cost Model. Based on a 2023
Cost Model, the Treasury Department and
the IRS published in the Federal Register an interim final rule (TD 10031, 90
FR 21410) on May 20, 2025, followed by
final regulations adopting the interim final
rule (TD 10038, 90 FR 55041) on December 1, 2025, which established the current
$56 user fee to apply to requests for the
issuance of an estate tax closing letter.
As explained in the Background section of the preamble of TD 9957, the
issuance of an estate tax closing letter
constitutes the provision of a service and
confers special benefits to authorized persons requesting such letters beyond those
accruing to the general public. Therefore,
the IRS is authorized, pursuant to the
IOAA and OMB Circular A-25, to charge
a user fee for the issuance of an estate tax
closing letter that reflects the full cost of
providing this service.
In 2025, the IRS conducted a biennial
review of the estate tax closing letter user
fee and issued a new Cost Model, which
determined that the full cost of issuing
estate tax closing letters to authorized persons is $76. The increase is due to a combination of operational factors.
B. Calculation of User Fees Generally
The IRS follows generally accepted
accounting principles (GAAP) in calculating the full cost of providing services.
The Federal Accounting Standards Advisory Board (FASAB) is the body that
establishes GAAP that apply for Federal reporting entities such as the IRS.
FASAB publishes the FASAB Handbook
of Accounting Standards and Other Pronouncements, as amended, available at
https://fasab.gov/accounting-standards/.
The FASAB Handbook includes the Statement of Federal Financial Accounting
Standards 4: Managerial Cost Accounting
Standards and Concepts (SFFAS No. 4)
for the Federal government. SFFAS No.
4 establishes internal costing standards
under GAAP to accurately measure and

June 22, 2026

manage the full cost of Federal programs.
The methodology described below is in
accordance with SFFAS No. 4.
1. Cost Center Allocation
The IRS determines the cost of its
services and the activities involved in
producing them through a cost accounting system that tracks costs to organizational units. The lowest organizational
unit in the IRS’s cost accounting system
is a cost center. Cost centers usually are
separate offices that are distinguished by
subject-matter area of responsibility or
geographic region. All costs of operating
a cost center are recorded in the IRS’s
cost accounting system and are allocated
to that cost center. These costs include the
direct costs for the cost center’s activities
and all indirect costs, including overhead,
associated with that cost center. Each cost
is recorded in only one cost center.
2. Cost Estimation of Direct Labor and
Benefits
Not all cost centers are fully devoted
to only one service for which the IRS
charges a user fee. When cost centers
include multiple services, the IRS measures the time required to accomplish
activities associated with each service to
estimate the average time spent on the service in the related cost center. The average
time devoted is multiplied by the relevant
organizational unit’s average labor and
benefits cost per unit of time to determine
the direct labor and benefits cost incurred
to provide the service. To determine the

full cost, the IRS then adds an appropriate
overhead charge.

rate, based on FY 2024 costs, of 62.92
percent was used.

3. Calculating Overhead

C. Full Cost Determination for the
Estate Tax Closing Letter User Fee

Overhead is an indirect cost of operating
an organization that cannot be immediately
associated with an activity that the organization performs. Overhead includes costs of
resources that are jointly or commonly consumed by one or more organizational unit’s
activities but are not specifically identifiable
to a single activity, such as the following:
• General management and administration
• Rent, security, utilities and maintenance
• Procurement and contracting
• Financial management and accounting
• Information technology
• Research, analytical, and statistical
• Human resources and personnel
To calculate the overhead allocable to
a service, the IRS multiplies the current
overhead rate by the direct labor and benefits costs of the service. The overhead rate
is the ratio of the IRS’s indirect labor, benefits, and non-labor costs of business divisions that do not interact with taxpayers to
the direct labor and benefits costs of business divisions that interact with taxpayers. The IRS calculates the overhead rate
annually based on cost elements underlying the Statement of Net Cost included
in the IRS Annual Financial Statements,
which are audited by the Government
Accountability Office.
For this estate tax closing letter user fee
review, the fiscal year (FY) 2025 overhead

Direct Staff Hours
Indirect Hours (60%)
Total Hours
To determine the labor and benefits
costs, the IRS divided the 8,374 total hours
by 2,080 (the total annual hours worked
by a full-time employee (FTE)) to convert
the hours to a 4.03 FTE equivalent. The
processing of requests for estate tax clos-

1. Request Processing Costs
Requests for estate tax closing letters
are processed by employees at grades 5,
8, and 11 of the general schedule (GS-5,
GS-8, and GS-11). Approximately 0.65
staff hours are required to review the
return, create the estate tax closing letters, and prepare the letters for mailing.
The IRS processed an average of 8,053
requests per year for estate tax closing letters in FY 2023 and FY 2024, requiring
5,234 staff hours.
Total hours allocated to the cost also
must include indirect hours for campus employees, which are calculated
by multiplying the direct hours by the
applicable 60 percent indirect employee
rate. Using this information, IRS determined that staff hours for processing
requests for estate tax closing letters are
8,374 annually.
5,234
+  3,140
8,374

ing letters is performed at the GS-5 level
(36.85 percent), but also by employees at
the GS‑8 level (35.82 percent) and GS-11
level (27.33 percent). The average salary
and benefit cost for each of those levels
was multiplied by that grade’s percentage

Total Cost Per FTE
Total FTE
Processing Labor & Benefits

June 22, 2026

The IRS followed the guidance provided by the OMB Circular A-25 guidance to compute the full cost of issuing
estate tax closing letters to authorized
persons. OMB Circular A-25 explains that
the full cost includes all indirect and direct
costs to any part of the Federal Government including, but not limited to, direct
and indirect personnel costs, physical
overhead, rents, utilities, travel, and management costs.

of processing time to arrive at a $92,812
total cost per FTE. Multiplying the cost
per FTE by the 4.03 FTE equivalent
resulted in a total labor and benefits cost
of $374,032, as follows:

$92,812
×   4.03
$374,032

1594

Bulletin No. 2026–26

2. Quality Assurance Review Costs
A sampling of issued estate tax closing letters are reviewed to verify (1) the
estate tax closing letter was authorized,
(2) the information included in the estate
tax closing letter was accurate, and (3) the
address was correct.

During FY 2023 and FY 2024, 48
estates were issued estate tax closing
letters (an annual average of 24 estates)
that were reviewed for quality assurance
purposes. Generally, three letters are
reviewed per estate and quality assurance
professionals spend 0.5 hours reviewing
one estate tax closing letter, totaling 36

Direct Staff Hours
Indirect Hours (60%)
Total Hours
Outgoing estate tax closing letters are
reviewed by quality assurance professionals at the following Internal Revenue (IR)
paybands of the IRS Payband System:
IR-10 (25 percent) and IR-06 (75 percent).

direct staff hours. The direct staff hours
were multiplied by the 60 percent indirect employee rate for campus employees,
resulting in a combined total of 58 annual
staff hours allocated for quality assurance
(QA) reviews, as follows:

36
+  22
58
Dividing the total hours by 2,080 (the total
annual hours for each FTE) resulted in 0.03
FTEs. The average salary and benefits for
both IR paybands conducting QA reviews
was multiplied by that IR payband’s per-

Total Cost per FTE
Total FTE
Quality Assurance Labor & Benefits

centage of processing time to arrive at the
$3,818 total cost per FTE. The total cost
per FTE was then multiplied by the total
FTE to determine the labor and benefits
cost for QA reviews, as follows:
$127,256
×   0.03
$3,818

3. Full Cost Per Request Calculation
The IRS applied the 62.92 percent overhead rate to the total labor and benefits cost to calculate the full cost of the estate tax closing
letter program.
Processing Labor & Benefits
Quality Assurance Labor & Benefits
Total Labor and Benefits
Overhead (62.92%)
Full Cost

$374,032
+  $3,818
$377,850
+ $237,743
$615,593

The $76 cost per request was determined by dividing the full cost by the average annual volume of processed requests, as follows:
Full Cost
Estimated Annual Request Volume
Cost Per Request

$615,593
÷  8,053
$76

Proposed Applicability Date

Special Analyses

II. Regulatory Flexibility Act

These regulations are proposed to
apply to requests for an estate tax closing letter received by the IRS on or
after the date that is 30 days after the
date these regulations are published as
final regulations in the Federal Register.

I. Regulatory Planning and Review

Pursuant to the Regulatory Flexibility
Act (5 U.S.C. chapter 6), it is hereby certified that these proposed regulations will
not have a significant economic impact
on a substantial number of small entities.
The proposed regulations, which would
increase the amount of a fee to obtain a

Bulletin No. 2026–26

The OMB’s Office of Information and
Regulatory Analysis has determined that
this regulation is not significant and is not
subject to review under section 6(b) of
Executive Order 12866.

1595

June 22, 2026

particular service, would affect decedents’
estates, which generally are not “small
entities” as defined under 5 U.S.C. 601(6).
Thus, these proposed regulations would
have no economic impact on small entities. Accordingly, the Secretary certifies
that the rule will not have a significant
economic impact on a substantial number
of small entities.
III. Submission to Small Business
Administration
Pursuant to section 7805(f) of the
Internal Revenue Code, this notice of
proposed rulemaking has been submitted to the Chief Counsel of the Office of
Advocacy of the Small Business Administration for comment on its impact on
small business.

compliance costs on State and local governments, and is not required by statute,
or preempts State law, unless the agency
meets the consultation and funding
requirements of section 6 of the Executive order. These proposed regulations do
not have federalism implications and do
not impose substantial direct compliance
costs on State and local governments or
preempt State law within the meaning of
the Executive order.

ever, other personnel from the Treasury
Department and the IRS participated in
their development.

Comments and Request for Public
Hearing

Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
part 300 as follows:

Section 202 of the Unfunded Mandates
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any Federal mandate that may result in expenditures in any
one year by a State, local, or Tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for inflation. This
rule does not include any Federal mandate
that may result in expenditures by State,
local, or Tribal governments, or by the private sector in excess of that threshold.

Before these proposed regulations
are adopted as final regulations, consideration will be given to comments that
are submitted timely to the Treasury
Department and the IRS as prescribed in
this preamble under the ADDRESSES
heading. The Treasury Department and
IRS request comments on all aspects
of the proposed regulations. Any electronic and paper comments submitted
will be made available at https://www.
regulations.gov or upon request. Once
submitted to the Federal eRulemaking
Portal, comments cannot be edited or
withdrawn.
A public hearing will be scheduled if
requested in writing by any person that
timely submits written or electronic comments. If a public hearing is scheduled,
notice of the date, time, and place for the
public hearing will be published in the
Federal Register.

V. Executive Order 13132: Federalism

Drafting Information

Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct

The principal author of these proposed regulations is Juli Ro Kim of the
Office of the Associate Chief Counsel
(Passthroughs, Trusts, and Estates). How-

IV. Unfunded Mandates Reform Act

June 22, 2026

1596

List of Subjects in 26 CFR Part 300
Estate taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the
Regulations

PART 300--USER FEES
Paragraph 1. The authority citation
for part 300 continues to read, in part, as
follows:
Authority: 31 U.S.C. 9701.
Par. 2. Section 300.12 is amended by
revising paragraphs (b) and (d) to read as
follows:
§ 300.12 Fee for estate tax closing
letter.
*****
(b) Fee. The fee for issuing an estate
tax closing letter is $76.
*****
(d) Applicability date. This section
applies to requests received by the IRS on
or after [the date 30 days after the date of
publication of final regulations in the Federal Register].
Frank J. Bisignano,
Chief Executive Officer.
(Filed by the Office of the Federal Register June 1,
2026, 8:45 a.m., and published in the issue of the
Federal Register for June 2, 2026, 91 FR 32909)

Bulletin No. 2026–26

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. 2026–26

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.

June 22, 2026

Numerical Finding List1
Bulletin 2026–26

Announcements:
2026-1, 2026-04 I.R.B. 402
2026-2, 2026-05 I.R.B. 447
2026-3, 2026-06 I.R.B. 518
2026-4, 2026-06 I.R.B. 533
2026-5, 2026-07 I.R.B. 540
2026-6, 2026-10 I.R.B. 634
2026-7, 2026-11 I.R.B. 697
2026-8, 2026-16 I.R.B. 813
2026-9, 2026-18 I.R.B. 881
2026-10, 2026-23 I.R.B. 1569

AOD:
2026-1, 2026-23 I.R.B. 1556

Notices:
2026-2, 2026-02 I.R.B. 304
2026-3, 2026-02 I.R.B. 307
2026-5, 2026-02 I.R.B. 309
2026-6, 2026-02 I.R.B. 313
2026-1, 2026-04 I.R.B. 365
2026-8, 2026-04 I.R.B. 368
2026-10, 2026-04 I.R.B. 378
2026-11, 2026-06 I.R.B. 491
2026-12, 2026-06 I.R.B. 496
2026-13, 2026-06 I.R.B. 499
2026-9, 2026-07 I.R.B. 534
2026-7, 2026-11 I.R.B. 637
2026-14, 2026-11 I.R.B. 654
2026-15, 2026-11 I.R.B. 658
2026-16, 2026-11 I.R.B. 685
2026-17, 2026-12 I.R.B. 698
2026-4, 2026-13 I.R.B. 726
2026-19, 2026-15 I.R.B. 797
2026-20, 2026-15 I.R.B. 800
2026-22, 2026-15 I.R.B. 802
2026-23, 2026-15 I.R.B. 804
2026-24, 2026-17 I.R.B. 835
2026-25, 2026-17 I.R.B. 836
2026-26, 2026-18 I.R.B. 878
2026-27, 2026-21 I.R.B. 1502
2026-29, 2026-22 I.R.B. 1537
2026-30, 2026-22 I.R.B. 1538
2026-31, 2026-23 I.R.B. 1562
2026-34, 2026-23 I.R.B. 1565
2026-33, 2026-24 I.R.B. 1572
2026-32, 2026-25 I.R.B. 1578
2026-35, 2026-25 I.R.B. 1580
2026-36, 2026-26 I.R.B. 1587
2026-37, 2026-26 I.R.B. 1589

Proposed Regulations:

Revenue Rulings:—Continued

REG-101952-24, 2026-03 I.R.B. 345
REG-110519-25, 2026-03 I.R.B. 353
REG-132251-11; REG-134219-08,
2026-03 I.R.B. 358
REG-103430-24, 2026-05 I.R.B. 447
REG-112829-25, 2026-05 I.R.B. 452
REG-113515-25, 2026-05 I.R.B. 455
REG-121244-23, 2026-09 I.R.B. 579
REG-105064-25, 2026-13 I.R.B. 735
REG-108921-25, 2026-13 I.R.B. 756
REG-117002-25, 2026-13 I.R.B. 761
REG-117270-25, 2026-13 I.R.B. 772
REG-117298-21, 2026-14 I.R.B. 784
REG-114499-25, 2026-18 I.R.B. 883
REG-113229-25, 2026-19 I.R.B. 900
REG-108706-25, 2026-21 I.R.B. 1508
REG-119294-25, 2026-21 I.R.B. 1509
CC-00349656-26, 2026-25 I.R.B. 1583
REG-103193-26, 2026-26 I.R.B. 1593

2026-9, 2026-19 I.R.B. 897
2026-10, 2026-22 I.R.B. 1515
2026-11, 2026-24 I.R.B. 1570

Treasury Decisions:
10042, 2026-03 I.R.B. 320
10041, 2026-04 I.R.B. 360
10039, 2026-05 I.R.B. 403
10040, 2026-05 I.R.B. 416
10043, 2026-15 I.R.B. 793
10044, 2026-18 I.R.B. 840
10045, 2026-21 I.R.B. 1491
10047, 2026-21 I.R.B. 1494
10046, 2026-22 I.R.B. 1512
10048, 2026-23 I.R.B. 1558

Revenue Procedures:
2026-1, 2026-01 I.R.B. 1
2026-2, 2026-01 I.R.B. 119
2026-3, 2026-01 I.R.B. 143
2026-4, 2026-01 I.R.B. 160
2026-5, 2026-01 I.R.B. 258
2026-6, 2026-02 I.R.B. 314
2026-7, 2026-02 I.R.B. 316
2026-8, 2026-04 I.R.B. 380
2026-9, 2026-04 I.R.B. 393
2026-10, 2026-04 I.R.B. 394
2026-12, 2026-07 I.R.B. 535
2026-13, 2026-09 I.R.B. 563
2026-11, 2026-12 I.R.B. 707
2026-15, 2026-13 I.R.B. 729
2026-16, 2026-13 I.R.B. 733
2026-17, 2026-15 I.R.B. 805
2026-19, 2026-19 I.R.B. 899
2026-14, 2026-20 I.R.B. 910
2026-21, 2026-22 I.R.B. 1538
2026-22, 2026-22 I.R.B. 1541
2026-23, 2026-22 I.R.B. 1542
2026-24, 2026-25 I.R.B. 1582

Revenue Rulings:
2026-1, 2026-02 I.R.B. 299
2026-2, 2026-03 I.R.B. 342
2026-3, 2026-06 I.R.B. 485
2026-4, 2026-06 I.R.B. 487
2026-5, 2026-08 I.R.B. 542
2026-6, 2026-11 I.R.B. 635
2026-7, 2026-15 I.R.B. 791
2026-8, 2026-16 I.R.B. 812

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.
1

June 22, 2026

ii

Bulletin No. 2026–26

Finding List of Current Actions on
Previously Published Items1
Bulletin 2026–26

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.
1

Bulletin No. 2026–26

iii

June 22, 2026

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

INTERNAL REVENUE BULLETIN

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A5a1e7380234b1e7e. Public record. Not legal advice.