# Bulletin No. 2021–22

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HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2021–22
June 1, 2021

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

ADMINISTRATIVE; INCOME TAX
Rev. Proc. 2021-26, page 1163.

This procedure expands, for a limited period, the availability of automatic consent for controlled foreign corporations
(“CFCs”) to change their methods of accounting for depreciation to the alternative depreciation system under section
168(g) in order to ease the burden on CFCs of conforming
their income and earnings and profits computations with their
qualified business asset investment computations. This procedure also prescribes terms and conditions for accounting
method changes made on behalf of CFCs, to ensure that section 481(a) adjustments resulting from CFCs’ method chang-

Finding Lists begin on page ii.

es are properly included in computations of tested income
and tested loss. Finally, this procedure clarifies the audit
protection rule in section 8.02(5) of Rev. Proc. 2015-13.

SPECIAL ANNOUNCEMENT
Announcement 2021-10, page 1170.

This Announcement announces that the new or updated census tract boundaries and numbers adopted by the U.S. Census Bureau for purposes of the 2020 decennial census have
no effect on the boundaries or tract numbers of any qualified
opportunity zone listed in Notice 2018-48, 2018-28 I.R.B. 9,
or Notice 2019-42, 2019-29 I.R.B. 352.

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 1, 2021 

Bulletin No. 2021–22

Part III
26 CFR 601.204: Changes in accounting periods
and in methods of accounting.
(Also Part I, §§ 167, 168, 446, 481, 951A, 954, 964,
986; 1.446-1, 1.481-1, 1.951A-3, 1.952-2, 1.964-1.)

Rev. Proc. 2021-26
SECTION 1. PURPOSES
This revenue procedure modifies Rev.
Proc. 2019-43, 2019-48 I.R.B. 1107, to
provide procedures under section 446(e)
of the Internal Revenue Code (“Code”)
and §1.446-1(e) of the Income Tax Regulations for certain foreign corporations to
obtain the automatic consent of the Commissioner of Internal Revenue (“Commissioner”) to change their methods of
accounting for depreciation to the alternative depreciation system under section
168(g) (“ADS”). This revenue procedure also updates and revises Rev. Proc.
2015-13, 2015-5 I.R.B. 419, to provide
additional terms and conditions applicable with respect to section 481(a) adjustments arising from accounting method
changes of certain foreign corporations.
Finally, this revenue procedure modifies
Rev. Proc. 2015-13, 2015-5 I.R.B. 419,
to clarify an existing rule that limits audit
protection with respect to certain foreign
corporations.
SECTION 2. BACKGROUND
.01 Section 951A and ADS.
(1) Section 951A requires a United
States shareholder (as defined in section
951(b)) (“U.S. shareholder”) of any controlled foreign corporation (as defined in
section 957(a)) (“CFC”) that owns the
CFC’s stock within the meaning of section 958(a) for any taxable year to include
the shareholder’s global intangible lowtaxed income (“GILTI”) in gross income
for such taxable year. Section 951A applies to taxable years of foreign corporations beginning after December 31, 2017,
and to taxable years of U.S. sharehold-

ers in which or with which such taxable
years of foreign corporations end. A U.S.
shareholder’s GILTI is determined by a
formula based on certain items of each
CFC that the shareholder owns, including tested income, tested loss, and qualified business asset investment (“QBAI”),
if any. See section 951A(b) and (c), and
§1.951A-1(c).
(2) QBAI is the average of a tested
income CFC’s aggregate adjusted bases, as of the close of each quarter of a
CFC inclusion year, in specified tangible
property that is used in the tested income
CFC’s trade or business and of a type with
respect to which a deduction is allowable
under section 167. See section 951A(d)(1)
and §1.951A-3(b). A tested income CFC
is a CFC with tested income for a CFC inclusion year. See §1.951A-2(b)(1). A CFC
inclusion year is any taxable year of a foreign corporation beginning after December 31, 2017, at any time during which the
corporation is a CFC. See §1.951A-1(f)
(1). Specified tangible property is, with
respect to a tested income CFC and a CFC
inclusion year, tangible property of the
tested income CFC used in the production
of gross tested income for the CFC inclusion year. See section 951A(d)(2) and
§1.951A-3(c)(1). For purposes of section
951A, tangible property is property for
which the depreciation deduction provided by section 167(a) is eligible to be determined under section 168, without regard
to section 168(f)(1), (2), or (5), section
168(k)(2)(A)(i)(II), (IV), or (V), and the
date placed in service. See §1.951A-3(c)
(2).
(3) Section 951A(d)(3)1 provides that
the adjusted basis in any property for purposes of calculating QBAI shall be determined by using ADS under section 168(g)
and by allocating the depreciation deduction with respect to such property ratably
to each day during the period in the taxable year to which such depreciation relates. Except as provided in §1.951A-3(e)
(3)(ii),2 ADS applies for purposes of de-

termining QBAI irrespective of when the
property was placed in service or whether
the basis of the property is determined using another method for computing depreciation for other purposes of the Code. See
§1.951A-3(e)(1) and (3).
(4) Section 168(g)(1)(A) generally requires the use of ADS to depreciate tangible property predominantly used outside
of the United States during the taxable
year. However, a foreign corporation (including a CFC) computing its income and
earnings and profits (“E&P”) may instead
apply a depreciation method used in keeping the books of account that it regularly
maintains for accounting to its shareholders or a method consistent with U.S. generally accepted accounting principles (a
“non-ADS method”), provided the adjustments required to conform to ADS are not
material. See §§1.952-2(c)(2) and 1.9641(a)(2). Whether an adjustment is material
depends on the facts and circumstances of
the particular case, including the amount
of the adjustment, its size relative to the
general level of the corporation’s total
assets and annual profit or loss, the consistency with which the practice has been
applied, and whether the item to which
the adjustment relates is of a recurring or
merely a nonrecurring nature. See §1.9641(a)(2). Given the requirement in section
951A(d)(3) that the adjusted basis in any
property for purposes of calculating QBAI
be determined by using ADS, CFCs not
otherwise required to use ADS for purposes of computing their income and E&P
may want to change to ADS with respect
to such property to conform their income,
E&P, and QBAI computations.
.02 Changes in methods of accounting
for depreciation.
(1) Pursuant to section 168(g)(2), depreciation under ADS is determined by
using the straight-line method of depreciation (without regard to salvage value), the
applicable convention determined under
section 168(d), and a recovery period determined under the table in section 168(g)

1
As enacted, section 951A(d) contains two paragraphs designated as paragraph (3). The section 951A(d)(3) discussed in this procedure relates to the determination of the adjusted basis in
property for purposes of calculating QBAI.
2
Under § 1.951A-3(e)(3)(ii), a CFC that is not required to use ADS for purposes of computing income and E&P may elect, for purposes of calculating QBAI, to use its non-ADS depreciation
method to determine the adjusted basis in specified tangible property placed in service before the first taxable year beginning after December 22, 2017, subject to a special rule related to
salvage value.

Bulletin No. 2021–22

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June 1, 2021

(2)(C). Except as provided in §1.446-1(e)
(2)(ii)(d)(3), the depreciation method,
convention, and recovery period used by
a taxpayer to determine the depreciation
for each asset are methods of accounting under section 446; thus, a change in
the depreciation method, convention, or
recovery period of a depreciable asset is
a change in method of accounting. See
§1.446-1(e)(2)(ii)(d)(2)(i). A taxpayer
must secure the consent of the Commissioner before changing the depreciation
method, convention, or recovery period
for any asset for federal income tax purposes, whether or not the taxpayer’s present method of accounting is proper under
the Code or the regulations thereunder.
See section 446(e) and §1.446-1(e)(2)(i).
The determination of the adjusted basis in
property for purposes of computing QBAI
is not a method of accounting subject to
the consent requirement of section 446(e).
See §1.446-1(e)(2)(ii)(a) and (e)(2)(ii)(b).
(2) The Commissioner may prescribe
the administrative procedures setting forth
the limitations, terms, and conditions
necessary to permit a taxpayer to obtain
consent to change a method of accounting. See §1.446-1(e)(3)(ii). Except as
otherwise provided in §1.446-1(e)(3)(ii),
a taxpayer must file a Form 3115, Application for Change in Accounting Method,
in order to request the Commissioner’s
consent to change a method of accounting.
Rev. Proc. 2015-13, 2015-5 I.R.B. 419, as
clarified and modified by Rev. Proc. 201533, 2015-24 I.R.B. 1067, and as modified
by Rev. Proc. 2016-1, 2016-1 I.R.B. 1,
and Rev. Proc. 2017-59, 2017-48 I.R.B.
543, sets forth the general procedures by
which a taxpayer may obtain the automatic consent of the Commissioner to change
a method of accounting described in the
“List of Automatic Changes.” Rev. Proc.
2019-43, as modified by Rev. Proc. 202013, 2020-11 I.R.B. 515, Rev. Proc. 202025, 2020-19 I.R.B. 785, and Rev. Proc.
2020-50, 2020-48 I.R.B. 1122, contains
the current List of Automatic Changes.
(3) Pursuant to Rev. Proc. 2015-13
and Rev. Proc. 2019-43, subject to certain
restrictions, a CFC on an impermissible
non-ADS method of accounting for depreciation for purposes of computing its income and E&P may request to change its
method to the straight-line method, the applicable convention, and the applicable re-

June 1, 2021

covery period under ADS using automatic
change procedures. However, a CFC on a
permissible non-ADS method of accounting is ineligible for an automatic change to
use ADS. The Department of the Treasury
(“Treasury Department”) and the Internal
Revenue Service (“IRS”) announced their
intention to expand the availability of automatic consent for depreciation changes
in Treasury Decision 9866, 84 FR 29288,
29304 (June 21, 2019). To that end, section 3 of this revenue procedure modifies
Rev. Proc. 2019-43 to provide procedures,
for a limited period, for a CFC on an impermissible non-ADS method as well as
a CFC on a permissible non-ADS method to obtain the automatic consent of the
Commissioner to change its method of
accounting for depreciation of property
described in section 168(g)(1)(A) (except
for property excluded from the application of section 168 as a result of section
168(f)) to ADS in determining the CFC’s
gross and taxable income under §1.9522 as well as its E&P under sections 964
and 986(b) and the regulations thereunder.
These procedures also temporarily waive
certain eligibility restrictions set forth in
section 5.01(1) of Rev. Proc. 2015-13 to
make it easier for such CFCs to obtain automatic consent to change their methods
of accounting for depreciation to ADS.
Furthermore, since these procedures apply
to CFCs on permissible and impermissible
non-ADS methods, they will ease the burden on all such CFCs in conforming their
income and E&P computations with their
QBAI computations. However, this revenue procedure does not waive any of the
limitations on audit protection in section
8 of Rev. Proc. 2015-13, as modified by
Rev. Proc. 2015-33, 2015-24 I.R.B. 1067.
(4) The procedures in section 3 of this
revenue procedure provide that a section
481(a) adjustment is required with respect
to any change in method of accounting
made thereunder. The imposition of a
section 481(a) adjustment for all changes
made under the procedures in section 3 of
this revenue procedure is in accordance
with §1.446-1(e)(2)(ii)(d)(5)(iii), which
allows, with respect to a change from one
permissible method of computing depreciation to another permissible method of
computing depreciation, the IRS to require
a section 481(a) adjustment if expressly
provided by guidance published in the In-

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ternal Revenue Bulletin, and states that a
section 481(a) adjustment is required for a
change from an impermissible method of
computing depreciation to a permissible
method of computing depreciation.
.03 Section 951A and treatment of a
section 481(a) adjustment.
(1) When there is a change in a CFC’s
method of accounting, to prevent amounts
from being duplicated or omitted, the
difference between the CFC’s income
and E&P pursuant to the old and the new
methods must generally be taken into account as a section 481(a) adjustment. See
section 481(a) and §1.481-1(d); see also
section 2.06 of Rev. Proc. 2015-13 (or its
successor). The section 481(a) adjustment
must be taken into account for purposes
of computing the CFC’s income and E&P
in accordance with the terms and conditions prescribed by the Commissioner. See
section 481(c) and §§1.446-1(e)(3)(ii) and
1.481-4; see also section 2.06(1) of Rev.
Proc. 2015-13 (or its successor).
(2) Section 7.07 of Rev. Proc. 201513, which predates the enactment of section 951A, sets forth the applicable terms
and conditions for a change in method of
accounting on behalf of a CFC. Section
7.07(2) of Rev. Proc. 2015-13 generally
requires a section 481(a) adjustment (or
a component thereof) to take, or be allocated to the class of gross income that
has, the same source, separate limitation
classification, character, and treatment for
subpart F purposes as the CFC’s income
to which the adjustment or component relates had or would have had in the prior
year or years.
(3) In Treasury Decision 9866, 84 FR
at 29304, in addition to declaring their intent to expand automatic accounting method changes for depreciation, the Treasury
Department and the IRS announced their
intention to update the terms and conditions in section 7.07 of Rev. Proc. 2015-13
to take section 951A into account. Accordingly, section 4 of this revenue procedure
updates and revises section 7.07 of that
revenue procedure to account for both the
enactment of section 951A and the repeal
of section 954(g), which eliminated foreign base company oil related income as
a category of foreign base company income, by the Tax Cuts and Jobs Act, Pub.
Law 115-97, 131 Stat. 2054, 2208, 2216
(2017).

Bulletin No. 2021–22

(4) Specifically, section 4 of this revenue procedure modifies section 7.07
of Rev. Proc. 2015-13 to clarify that a
CFC’s section 481(a) adjustment must
be taken into account in determining the
CFC’s tested income or tested loss (either as gross tested income within the
meaning of section 951A(c)(2)(A)(i) and
§1.951A-2(c)(1), if the section 481(a)
adjustment is positive, or as a deduction
properly allocable to the CFC’s gross tested income within the meaning of section
951A(c)(2)(A)(ii) and §1.951A-2(c)(3),
if the section 481(a) adjustment is negative), except to the extent the adjustment
prevents the duplication or omission of
an item of gross income that is described
in, or that is a deduction properly allocable to an item of gross income described
in, section 951A(c)(2)(A)(i)(I) through
(V). Section 4 of this revenue procedure
further amends section 7.07 of Rev. Proc.
2015-13 to require that a CFC’s section
481(a) adjustment relating to foreign base
company oil related income be taken into
account as an adjustment in determining
the CFC’s tested income or tested loss.
(5) Under section 481(a) and §1.4811(d), section 481(a) adjustments must
be properly taken into account for purposes of computing gross income, adjusted gross income, or taxable income.
Section 951A(c)(2) and §1.951A-2(c)(1)
require tested income and tested loss to
be determined by excluding from gross
tested income certain items of gross income enumerated in section 951A(c)(2)
(A)(i)(I) through (V). Specifically, the
determination of a CFC’s tested income
starts with the CFC’s gross income and
excludes the following items of income
to determine “gross tested income”: (I)
any item of income described in section
952(b), (II) any gross income taken into
account in determining the CFC’s subpart
F income (as defined in section 952(a)),
(III) any gross income excluded from
foreign base company income (as defined in section 954) or insurance income
(as defined in section 953) of the CFC
by reason of section 954(b)(4), (IV) any
dividend received from a related person
(as defined in section 954(d)(3), and (V)
any foreign oil and gas extraction income
(as defined in section 907(c)(1)) of the
CFC. See section 951A(c)(2)(A)(i) and
§1.951A-2(c)(1). The CFC has tested in-

Bulletin No. 2021–22

come if the gross tested income exceeds
deductions properly allocable to it under
rules similar to those set forth in section
954(b)(5). See section 951A(c)(2)(A).
The CFC has a tested loss if the properly allocable deductions exceed the gross
tested income, or if it does not have any
gross tested income but has deductions
that would be properly allocable to gross
tested income. See section 951A(c)(2)
(B)(i) and §1.951A-2(b)(1). Therefore, a
CFC’s section 481(a) adjustment will adjust its tested income or tested loss unless
the adjustment constitutes one of the excluded items of gross income specified in
section 951A(c)(2)(A)(i) or a deduction
properly allocable to such an item of gross
income. Furthermore, a section 481(a) adjustment of a CFC that relates to an item
of income or expense arising before the
effective date of section 951A and does
not relate to subpart F income generally
prevents the duplication or omission of
an item that affected the CFC’s E&P relevant for purposes of the transition tax
under section 965, which generally no
longer applies. Therefore, excluding such
a section 481(a) adjustment from the determination of a CFC’s tested income or
tested loss could, in the case of a positive
section 481(a) adjustment, permit income
to escape U.S. taxation because it would
not be subject to tax under subpart F but
could generate E&P that would obtain the
benefit of tax-free repatriation by reason
of section 245A. Similarly, excluding a
positive section 481(a) adjustment that
relates to foreign base company oil related income from determining a CFC’s
tested income is inappropriate because
the income attributable to the adjustment
would not be subject to tax under subpart
F due to the repeal of section 954(g) but
could generate E&P potentially eligible
for tax-free repatriation by reason of section 245A, thereby escaping U.S. taxation.
Furthermore, excluding negative section
481(a) adjustments that are attributable to
amounts arising in years in which section
965 and repealed section 954(g) applied
from the computation of a CFC’s tested
income or tested loss could result in double counting of income.
(6) Section 4 of this revenue procedure
retains the approach set forth in section
7.07 of Rev. Proc. 2015-13 of assigning
source, character, separate limitation clas-

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sification, and treatment to each component of a section 481(a) adjustment.
This component-by-component approach
ensures that, for example, a CFC’s net
positive section 481(a) adjustment that is
composed of a positive component that
prevents the duplication of an item of
expense properly allocable to gross tested income and a positive component that
prevents the duplication of an item of expense properly allocable to gross foreign
base company sales income is treated as
such and allocated to the appropriate separate limitation categories. An example in
section 4 of this revenue procedure illustrates the application of this approach and
the new terms and conditions discussed in
sections 2.03(4) and 2.03(5) of this revenue procedure.
.04 Audit protection exceptions.
(1) Section 8.01 of Rev. Proc. 2015-13
provides that, with certain exceptions, a
taxpayer generally will receive audit protection with respect to an item that is subject to an accounting method change when
it timely files a Form 3115 under the procedures of Rev. Proc. 2015-13. For an accounting method change made on behalf
of a CFC or a 10/50 corporation, however,
section 8.02(5) of Rev. Proc. 2015-13 denies audit protection for a taxable year before the requested year of change in which
one or more of the CFC’s or 10/50 corporation’s domestic corporate shareholders computes an amount of foreign taxes
deemed paid under sections 902 and 960
with respect to the CFC or 10/50 corporation that exceeds 150 percent of the average amount of foreign taxes deemed paid
under sections 902 and 960 by the shareholder with respect to the CFC or 10/50
corporation in the shareholder’s three prior taxable years (“150 percent threshold”).
(2) The Treasury Department and the
IRS are aware that questions have arisen
whether the effect of various limitations
on a domestic corporate shareholder’s
ability to claim a current tax benefit for
foreign taxes deemed paid should affect
the application of the 150 percent threshold. Under sections 960(a) and 960(d),
foreign income taxes of a foreign corporation that are properly attributable to
amounts included in a domestic corporate
shareholder’s income are deemed paid regardless of whether the shareholder elects
to deduct or credit foreign income taxes in

June 1, 2021

the year of the inclusion, and regardless of
the extent to which section 904(d) or other
limitations limit the allowable amount of
the foreign tax credit in the inclusion year
or other years. The purpose of the 150 percent threshold is to deny audit protection
for an improper method of accounting
that affects the calculation of the foreign
corporation’s income for United States
tax purposes and so may improperly inflate the amount of foreign taxes deemed
paid with respect to an income inclusion
from that corporation. Particularly in view
of the fact that under sections 901(a) and
904(c) taxpayers are allowed ten years to
elect to credit foreign income taxes, and
to carry excess foreign tax credits with
respect to subpart F income to other taxable years, the 150 percent threshold is
appropriately applied on the basis of the
amount of foreign taxes deemed paid and
not on the allowable amount of the associated foreign tax credit. For the avoidance
of doubt, section 5 of this revenue procedure modifies section 8.02(5) of Rev.
Proc. 2015-13 to clarify that the 150 percent threshold is computed with respect
to the amount of the foreign corporation’s
foreign taxes deemed paid, regardless of
the extent to which a foreign tax credit is
allowed.
SECTION 3. AUTOMATIC METHOD
CHANGE
.01 Section 6.01(1)(c) of Rev. Proc.
2019-43, as modified by Rev. Proc. 202025 and Rev. Proc. 2020-50, is modified by:
(1) At the end of section 6.01(1)(c)
(xviii), deleting “or”;
(2) At the end of section 6.01(1)(c)
(xix), deleting the period and adding “;
or” in its place;
(3) Adding new section 6.01(1)(c)(xx)
to read as follows:
(xx) the change specified in section
6.22 of this revenue procedure. However,
an original Form 3115 for such change in
method of accounting may be filed under
this section 6.01 instead of section 6.22
of this revenue procedure if the duplicate
Form 3115 was filed under this section
6.01 before May 11, 2021.
.02 Section 6 of Rev. Proc. 2019-43, as
modified by Rev. Proc. 2020-25 and Rev.
Proc. 2020-50, is modified to add new section 6.22 to read as follows:

June 1, 2021

.22 Depreciation of tangible property
under section 168(g) by controlled foreign
corporations.
(1) Description of change. This change
is applicable to a controlled foreign corporation (as defined in section 957(a))
(“CFC”) that seeks to change its method of
accounting for depreciation for an item of
property that is described in section 168(g)
(1)(A) (except for property excluded from
the application of section 168 as a result
of section 168(f)) and owned by the CFC
at the beginning of the year of change to
the permissible depreciation method, convention, and recovery period prescribed
under the alternative depreciation system
(“ADS”) in section 168(g) for such property in determining the CFC’s gross and
taxable income under §1.952-2 as well as
its earnings and profits (“E&P”) under sections 964 and 986(b) and the regulations
thereunder. This change applies regardless
of whether the method of accounting for
depreciation that the CFC wants to change
pursuant to this section 6.22 is impermissible or permissible under the Internal Revenue Code and the regulations thereunder.
(2) CFC has not adopted a method of
accounting for the item of property. If a
CFC placed in service an item of property
described in section 6.22(1) of this revenue procedure in the taxable year immediately preceding the year of change (“1year property”), the CFC may change its
method of determining depreciation for
the 1-year property to ADS if the designated shareholder files a Form 3115 for
this change, provided the section 481(a)
adjustment attributable to the 1-year
property is included on the Form 3115.
Alternatively, the CFC may change its impermissible method of determining depreciation for the 1-year property to ADS if
each U.S. shareholder of the CFC (or the
agent described in §1.1502-77(a), if applicable) files an amended federal income
tax return for the taxable year in which
or with which the property’s placed-inservice year ends prior to the date the
shareholder files its federal income tax return for the taxable year in which or with
which the CFC’s taxable year succeeding
the placed-in-service year ends.
(3) Applicability. This change is effective for a Form 3115 filed on or after May
11, 2021 for a taxable year of a CFC ending before January 1, 2024.

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(4) Limited period to convert a Form
3115 filed under the non-automatic
change procedures in Rev. Proc. 2015-13.
(a) Eligibility. The designated shareholder may convert a Form 3115 that was
properly filed on behalf of a CFC under
the non-automatic change procedures in
Rev. Proc. 2015-13 requesting the Commissioner’s consent for a change in method of accounting described in this section
6.22 if:
(i) the CFC is otherwise eligible to use
the automatic change procedures in this
section 6.22 and Rev. Proc. 2015-13 (to
the extent the eligibility requirements in
Rev. Proc. 2015-13 are not waived by this
section 6.22), and
(ii) the Form 3115 was filed before
May 11, 2021 and is pending with the national office on May 11, 2021.
(b) Notification procedures. The designated shareholder must notify the national
office contact person for the Form 3115
(if contact person is unknown, fax the
notification to 855-576-2341 or send the
notification to the address specified in section 9.08(6) of Rev. Proc. 2021-1, 2021-1
I.R.B. 1 (or its successor)) of the CFC’s
intent to make the change in method of
accounting under the automatic change
procedures in this section 6.22 and Rev.
Proc. 2015-13 before the later of (i) June
10, 2021, or (ii) the issuance of a letter
ruling granting or denying consent for the
change. The notification must indicate that
the designated shareholder chooses on behalf of the CFC to convert the Form 3115
to the automatic change procedures in this
section 6.22 and Rev. Proc. 2015-13. If the
national office is timely and properly notified in accordance with the requirements
in this paragraph, the national office will
send a letter to the designated shareholder
acknowledging its request and will return
the user fee submitted with the Form 3115.
(c) Resubmission procedures. A designated shareholder converting a Form 3115
to the automatic change procedures in this
section 6.22 and Rev. Proc. 2015-13 for a
change in method of accounting described
in this section 6.22 must resubmit a Form
3115 that conforms to the automatic
change procedures, with a copy of the national office letter sent acknowledging the
request to convert attached, by the earlier
of (i) the 30th calendar day after the date
of the national office’s letter acknowledg-

Bulletin No. 2021–22

ing the request to convert, or (ii) the date
the designated shareholder is required to
file the original Form 3115 under section
6.03(1)(a) of Rev. Proc. 2015-13. See section 6.22(7)(b) of this revenue procedure
and section 6.03(3) of Rev. Proc. 2015-13
regarding required copies of Form 3115.
For purposes of the eligibility rules in
section 5 of Rev. Proc. 2015-13, the duplicate copy of the timely resubmitted Form
3115 will be considered filed as of the
date the designated shareholder originally
filed the converted Form 3115 under the
non-automatic change procedures in Rev.
Proc. 2015-13. This paragraph (4) does
not extend the date the designated shareholder must file the original (converted)
Form 3115 under section 6.03(1)(a) of
Rev. Proc. 2015-13.
(d) Agent treated as designated shareholder. For purposes of this section 6.22,
in the case of a designated shareholder
that is a member of a consolidated group,
a reference to a designated shareholder
refers to the agent described in §1.150277(a) with respect to the consolidated
group of which the designated shareholder
is a member.
(5) Section 481(a) adjustment. A section 481(a) adjustment is required with respect to a change made under this section
6.22 for any CFC.
(6) Certain eligibility rules inapplicable. The eligibility rules in section 5.01(1)
(c), (d), (e), and (f) of Rev. Proc. 201513, 2015-5 I.R.B. 419, as clarified and
modified by Rev. Proc. 2015-33, 2015-24
I.R.B. 1067, do not apply to this change.
(7) Manner of making change.
(a) Short Form 3115 in lieu of standard
Form 3115. In accordance with §1.4461(e)(3)(ii), the requirement in §1.4461(e)(3)(i) to file a standard Form 3115 is
waived and, pursuant to section 6.02(2) of
Rev. Proc. 2015-13, a short Form 3115 is
authorized with respect to any CFC making a change under this section 6.22. The
short Form 3115 must include the following information:
(i) The identification section of page 1
(above Part I);
(ii) The signature section at the bottom
of page 1;
(iii) Part I;
(iv) Part II, all lines except lines 10, 13,
16, and 19;
(v) Part IV; and

Bulletin No. 2021–22

(vi) Schedule E.
(b) Duplicate copy. In accordance with
section 6.03(1)(a) of Rev. Proc. 2015-13,
a signed copy of the original completed
short Form 3115 must be filed with the
IRS in Ogden, UT, at the applicable address set forth in section 9.06 of Rev. Proc.
2021-1, 2021-1 I.R.B. 1 (or its successor),
no earlier than the first day of the requested year of change and no later than the
date the designated shareholder files the
original short Form 3115 with its federal
income tax return for its taxable year in
which or with which the CFC’s requested year of change ends. In lieu of being
mailed to Ogden, UT, the duplicate copy
may be transmitted by fax in accordance
with the temporary procedure at http://
www.irs.gov/newsroom/temporary-procedure-to-fax-automatic-consent-forms3115-due-to-covid-19, if applicable.
(8) Concurrent automatic changes.
A designated shareholder making an accounting method change on behalf of a
CFC under this section 6.22 with respect
to more than one item of property for the
same year of change may file a single short
Form 3115 for the change with respect to
all such items of property. Notwithstanding this rule, the filer must separately
provide the section 481(a) adjustment required for the change with respect to each
item of property. Therefore, the filer may
not provide a single net section 481(a)
adjustment for the change with respect to
all of the items of property on the short
Form 3115. See section 6.03(1)(b) of Rev.
Proc. 2015-13 for further information on
and requirements for making concurrent
changes.
(9) Designated automatic accounting
method change number. The designated automatic accounting method change
number for a change under this section
6.22 is “248.”
(10) Contact information. For further
information regarding a change under this
section, contact Natalie Punchak at (202)
317-6934 (not a toll-free call).
SECTION 4. TERMS AND
CONDITIONS OF CHANGE
FOR CERTAIN FOREIGN
CORPORATIONS
Section 7.07 of Rev. Proc. 2015-13 is
updated and revised to read as follows:

1167

.07 Certain foreign corporations. If
the change in method of accounting is on
behalf of a controlled foreign corporation
(as defined in section 957(a)) (“CFC”) or
a noncontrolled 10-percent owned foreign
corporation (as defined in section 904(d)
(2)(E)) (“10/50 corporation”), the following additional terms and conditions apply:
(1) If the functional currency of the foreign corporation is not the U.S. dollar, the
section 481(a) adjustment must be stated
in the functional currency of the foreign
corporation and not in U.S. dollars.
(2) Section 954(b)(3)(A) (de minimis
rule) or section 954(b)(3)(B) (full inclusion rule) applies after the characterization of positive or negative section 481(a)
adjustments described under this section
7.07(2). Thus, for example, the de minimis rule in section 954(b)(3)(A) may (if
applicable) cause a positive section 481(a)
adjustment to not be treated as gross foreign base company income or gross insurance income, and the full inclusion rule in
section 954(b)(3)(B) may (if applicable)
cause a positive section 481(a) adjustment
to not be treated as gross tested income.
Subject to the preceding two sentences,
for the taxable year in the section 481(a)
adjustment period, a section 481(a) adjustment (or any component thereof) shall
be taken into account as follows:
(a) A positive section 481(a) adjustment (or any positive component of a
section 481(a) adjustment) necessary to
prevent the duplication of amounts of an
expense item must take the same source,
separate limitation classification, character, and treatment for purposes of subpart
F as the foreign corporation’s gross income that was offset by the expense in the
prior year or years. Notwithstanding the
preceding sentence, to the extent the section 481(a) adjustment (or the component)
of a CFC prevents the duplication of an
expense item that is not properly allocable
to an item of income described in section
951A(c)(2)(A)(i)(I) through (V), the section 481(a) adjustment (or the component)
must be treated as gross tested income of
the CFC (as defined in section 951A(c)(2)
(A)(i) and §1.951A-2(c)(1)) and take the
corresponding separate limitation classification.
(b) A positive section 481(a) adjustment (or any positive component of a
section 481(a) adjustment) necessary to

June 1, 2021

prevent the omission of amounts of an
income item must take the same source,
separate limitation classification, character, and treatment for purposes of subpart F as the foreign corporation’s income
would have had in the prior year or years.
Notwithstanding the preceding sentence,
to the extent the section 481(a) adjustment
(or the component) of a CFC prevents the
omission of an income item that would not
be described in section 951A(c)(2)(A)(i)
(I) through (V), the section 481(a) adjustment (or the component) must be treated
as gross tested income of the CFC (as
defined in section 951A(c)(2)(A)(i) and
§1.951A-2(c)(1)) and take the corresponding separate limitation classification.
(c) A negative section 481(a) adjustment (or any negative component of a
section 481(a) adjustment) necessary to
prevent the omission of amounts of an expense item is allocated to the class of gross
income that has the same source, separate
limitation classification, character, and
treatment for purposes of subpart F as the
foreign corporation’s income that would
have been offset by the expense in the prior year or years. Notwithstanding the preceding sentence, to the extent the section
481(a) adjustment (or the component) of a
CFC prevents the omission of an expense
item that would not be properly allocable
to an item of income described in section
951A(c)(2)(A)(i)(I) through (V), the section 481(a) adjustment (or the component)
must be treated as a deduction properly
allocable to the CFC’s gross tested income (as defined in section 951A(c)(2)
(A)(ii) and §1.951A-2(c)(3)) and take the
corresponding separate limitation classification.
(d) A negative section 481(a) adjustment (or any negative component of a
section 481(a) adjustment) necessary to
prevent the duplication of amounts of an
income item offsets gross income that
has the same source, separate limitation
classification, character, and treatment for
purposes of subpart F as the foreign corporation’s income had in the prior year
or years. Notwithstanding the preceding
sentence, to the extent the section 481(a)
adjustment (or the component) of a CFC
prevents the duplication of an income item
that is not described in section 951A(c)(2)
(A)(i)(I) through (V), the section 481(a)
adjustment (or the component) must be

June 1, 2021

treated as a deduction properly allocable to the CFC’s gross tested income (as
defined in section 951A(c)(2)(A)(ii) and
§1.951A-2(c)(3)) and take the corresponding separate limitation classification.
(e) For purposes of separate classification limitation and treatment, to the
extent a section 481(a) adjustment (or
a component thereof) relates to a CFC’s
foreign base company oil related income
(as defined in section 954(g) before its
repeal by section 14211 of the Tax Cuts
and Jobs Act, Pub. Law 115-97, 131 Stat.
2054, 2216 (2017)) in the CFC’s taxable
year beginning before January 1, 2018,
the section 481(a) adjustment (or the component) must be taken into account as an
adjustment in determining the CFC’s tested income or tested loss (either as gross
tested income within the meaning of section 951A(c)(2)(A)(i) and §1.951A-2(c)
(1), if the section 481(a) adjustment (or
the component) is positive, or as a deduction properly allocable to the CFC’s gross
tested income within the meaning of section 951A(c)(2)(A)(ii) and §1.951A-2(c)
(3), if the section 481(a) adjustment or the
component is negative).
(3) For each taxable year of the section 481(a) adjustment period beginning
with the year of change, the appropriate
amount of the section 481(a) adjustment
must be taken into account in computing
the foreign corporation’s gross and taxable income under §1.952-2 as well as its
E&P under sections 964 and 986(b) and
the regulations thereunder, subject to the
requirements in section 7.07(2) of this
revenue procedure.
(4) The following example illustrates the application of sections 7.07(1),
7.07(2), and 7.07(3) of this revenue procedure where a change in a CFC’s method
of accounting results in a section 481(a)
adjustment with multiple components.
Example. (i) Facts. CFC, a foreign corporation
organized in Country X, is wholly owned by USP,
a domestic corporation and the controlling domestic
shareholder of CFC as described in §1.964-1(c)(5).
USP and CFC use the calendar year as their taxable
year and are not under examination. CFC maintains
a “u” functional currency. CFC purchases Product
manufactured in Country Y for resale and owns a
machine that packages only Product. The machine is
placed in service by CFC on January 1, 2015. CFC
sells Product to related persons located in Country
Z, giving rise to gross foreign base company sales
income. CFC also sells Product to unrelated persons,
giving rise to gross tested income. Although CFC is

1168

required to depreciate the machine pursuant to the
alternative depreciation system (“ADS”) of section
168(g), under its present method of accounting,
CFC depreciates the machine pursuant to the general depreciation system of section 168(a). Assume
all depreciation on the machine is capitalized under
section 263A to Product. USP files a Form 3115 under the automatic change procedures in section 6.22
of the List of Automatic Changes and section 6 of
this revenue procedure to change CFC’s method of
accounting for depreciation for the machine to the
depreciation method, convention, and recovery period prescribed under ADS in section 168(g), beginning with CFC’s taxable year ended December 31,
2021 (the year of change). The net positive section
481(a) adjustment for this change is 5,000u, and
the section 481(a) adjustment period is four taxable
years. The net positive section 481(a) adjustment is
composed of two components: (1) a positive component of 2,000u that prevents the omission of CFC’s
gross foreign base company sales income in the prior
years, and (2) a positive component of 3,000u that
prevents the omission of an income item in the prior
years that would not be described in section 951A(c)
(2)(A)(i)(I) through (V). Neither section 954(b)(3)
(A) nor (B) applies for any taxable year in the section
481(a) adjustment period.
(ii) Analysis. Pursuant to section 7.07(2)(b) of
this revenue procedure, the positive component of
2,000u is foreign source income from the sale of personal property, must be treated as CFC’s gross foreign base company sales income, and is required to
be allocated to the income group for the foreign base
company sales income within the general category.
Under this same section, the positive component of
3,000u is foreign source income from the sale of personal property, must be treated as CFC’s gross tested
income, and is required to be allocated to the tested
income group within the general category. Pursuant
to sections 7.03(1) and 7.07(3) of this revenue procedure, the CFC must take each component of the
adjustment into account ratably over four taxable
years, beginning with CFC’s 2021 taxable year, as
follows: (1) with respect to the positive component
of 2,000u, 500u in 2021, 500u in 2022, 500u in 2023,
and 500u in 2024, and (2) with respect to the positive
component of 3,000u, 750u in 2021, 750u in 2022,
750u in 2023, and 750u in 2024.

(5) The written statement required by
§1.964-1(c)(3)(i) and (ii) must be filed by
each controlling domestic shareholder (as
defined in §1.964-1(c)(5), or, if applicable, the agent described in §1.1502-77(a)
with respect to the consolidated group of
which the controlling domestic shareholder is a member) with its federal income tax
return for its taxable year with or within
which ends the foreign corporation’s year
of change.
(6) The shareholders of the foreign
corporation must maintain records and accounts with respect to the foreign corporation for the year of change and for subsequent taxable years, in conformity with
the requirements of sections 905(b) and

Bulletin No. 2021–22

964(c). This condition is satisfied if the
shareholders reconcile the results obtained
under the method used in keeping the foreign corporation’s books and records and
the method used for federal income tax
purposes and maintain sufficient records
to support such reconciliation.
(7) If a foreign corporation loses its status as a CFC or 10/50 corporation, as applicable, at any time before the expiration
of the section 481(a) adjustment period,
then the foreign corporation must, subject
to the requirements in section 7.07(2) of
this revenue procedure, take into account
the balance of the section 481(a) adjustment not previously taken into account in
computing its gross and taxable income
under §1.952-2 as well as its E&P under
sections 964 and 986(b) and the regulations thereunder, on the final day on which
it is a CFC or 10/50 corporation, as applicable.
(8) Each U.S. shareholder of a CFC (or
the agent described in §1.1502-77(a), if
applicable) must comply with its obligations to report changes in the ownership
of the CFC on Form 5471, Information
Return of U.S. Persons With Respect To
Certain Foreign Corporations, during the
section 481(a) adjustment period.
(9) In the case of any disposition of
stock of the foreign corporation that is
owned directly or indirectly by a United
States person, if the disposition (a) represents ten percent or more of the total
value of the stock of the foreign corporation, or (b) results in the person no longer
meeting the stock ownership requirements
of section 6046(a)(2) with respect to the
foreign corporation, then the foreign corporation must, subject to the requirements
in section 7.07(2) of this revenue procedure, take into account before the disposition the remaining balance of the section
481(a) adjustment in computing its gross

Bulletin No. 2021–22

and taxable income under §1.952-2 as well
as its E&P under sections 964 and 986(b)
and the regulations thereunder. This condition also applies if the foreign corporation issues stock, or the United States
person’s ownership is otherwise diluted,
so that either of the situations described in
the preceding sentence applies to the United States person. This condition does not
apply to any change in ownership of the
foreign corporation if the stock disposed
of continues to be owned, directly or indirectly, by the shareholder or a member of
the U.S. consolidated group of which the
shareholder is a member.
SECTION 5. AUDIT PROTECTION
FOR TAXABLE YEARS
OF CERTAIN FOREIGN
CORPORATIONS BEFORE THE
YEAR OF CHANGE
Section 8.02(5) of Rev. Proc. 2015-13
is modified to read as follows:
(5) CFC or 10/50 corporation. In the
case of a change in method of accounting
made on behalf of a CFC or 10/50 corporation, the IRS may change the method of
accounting for the same item that is the
subject of a Form 3115 filed under this
revenue procedure for taxable years prior
to the requested year of change in which
any of the CFC’s or 10/50 corporation’s
domestic corporate shareholders computed an amount of foreign taxes deemed paid
under sections 902 and 960 with respect
to the CFC or 10/50 corporation that exceeds 150 percent of the average amount
of foreign taxes deemed paid under sections 902 and 960 by the domestic corporate shareholder with respect to the CFC
or 10/50 corporation in the shareholder’s
three prior taxable years. This determination is made without regard to the amount
of the domestic corporate shareholder’s

1169

allowable foreign tax credit in the taxable
year the foreign taxes are deemed paid or
in any other taxable year.
SECTION 6. EFFECTIVE DATES
.01 Section 3 of this revenue procedure is effective for a Form 3115 filed on
or after May 11, 2021 for a taxable year
of a CFC ending before January 1, 2024.
See section 3 of this revenue procedure
for procedures to convert certain Forms
3115 filed before May 11, 2021 that are
pending with the national office on May
11, 2021.
.02 Sections 4 and 5 of this revenue
procedure are effective for a Form 3115
filed on or after May 11, 2021.
SECTION 7. EFFECT ON OTHER
DOCUMENTS
.01 Section 6 of Rev. Proc. 2019-43 is
modified to include the modifications described in section 3.01 of this revenue procedure and the accounting method change
set forth in section 3.02 of this revenue
procedure.
.02 Section 7.07 of Rev. Proc. 2015-13
is updated and revised as provided in section 4 of this revenue procedure.
.03 Section 8.02(5) of Rev. Proc. 201513 is modified as provided in section 5 of
this revenue procedure.
SECTION 8. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Natalie Punchak of the Office
of the Associate Chief Counsel (International). For further information regarding
this revenue procedure, contact Ms. Punchak at (202) 317-6934 (not a toll-free
number).

June 1, 2021

Part IV
Qualified Opportunity Zone
Boundaries Unaffected by
2020 Decennial Census
Changes
Announcement 2021-10
In response to questions from the public on the effect, if any, of the 2020 decennial census, recently released by the U.S.
Census Bureau, on boundaries of qualified
opportunity zones (each, a QOZ) listed in
Notice 2018-48, 2018-28 I.R.B. 9, or Notice 2019-42, 2019-29 I.R.B. 352 (each,
a Designated QOZ), this announcement
confirms that the boundaries of the Designated QOZs were established at the time
they were designated and are not subject
to change.1
Section 13823 of Public Law 115-97
(December 22, 2017), commonly referred to as the Tax Cuts and Jobs Act,
amended the Internal Revenue Code
(Code) by adding sections 1400Z-1 and
1400Z-2 to the Code. Section 1400Z-1
provides the rules under which popula-

tion census tracts located in one of the
50 States, the District of Columbia, or
the U.S. territories were required to be
nominated by the chief executive officer
(CEO) of a State, the District of Columbia, or a U.S. territory and designated as
QOZs by the Secretary of the Treasury or
his delegate (Secretary). Section 1400Z1 contains limited timeframes that ended in 2018 by which all nominations by
CEOs and designations by the Secretary
of QOZs were required to be made. That
section also provides special rules for
population census tracts located in Puerto Rico.
Notice 2018-48 and Notice 2019-42 set
forth lists of the Designated QOZs based
on census tract numbers and census tract
boundaries that existed as of the respective 2018 and 2019 publication dates of
those notices. These census tract numbers and boundaries, as incorporated by
reference into Notice 2018-48 and Notice
2019-42, are based on the 2010 decennial census and those boundaries define the
boundaries of the Designated QOZs.2
Section 1400Z-1 does not permit
QOZs to be nominated or designated af-

ter the statutory deadlines; nor does it
permit any post-designation changes to
the boundaries of the Designated QOZs.
The boundaries of the Designated QOZs
were established at the time they were
designated and are not subject to change.
Accordingly, boundaries of a Designated
QOZ do not shrink or expand if the 2020
decennial census results in a change to the
boundaries of a census tract. Similarly,
if the 2020 decennial census results in a
change to a 2010 census tract number listed in Notice 2018-48 and Notice 2019-42
and associated with a Designated QOZ,
the 2010 census tract number continues to
apply for purposes of identifying the Designated QOZ.
DRAFTING INFORMATION
The principal authors of this announcement are Dominic DiMattia and Kyle
Griffin of the Office of Associate Chief
Counsel (Income Tax & Accounting).
For further information regarding this announcement, please contact Mr. Griffin
or Mr. DiMattia at (202) 317-4718 (not a
toll-free number).

The Department of the Treasury Community Development Financial Institutions Fund (CDFI Fund), which together with the IRS compiled data to identify each census tract eligible to be
nominated and designated as a Designated QOZ to implement section 1400Z-1, has stated on its Opportunity Zones Resources webpage since 2018 that boundaries of Designated QOZs “are
based upon the boundaries of the tract at the time of the designation in 2018, and do not change over the period of the designation, even if the boundaries of an individual census tract are
redefined in future Census releases.” See www.cdfifund.gov/opportunity-zones.
2
The CDFI Fund continues to assist the IRS with the administration of section 1400Z-1 by maintaining a database and map of the Designated QOZs that stakeholders may use to assist with
determining whether an address is located within a Designated QOZ. See www.cdfifund.gov/opportunity-zones for additional information.
1

June 1, 2021

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Bulletin No. 2021–22

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. 2021–22

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 1, 2021

Numerical Finding List1

Proposed Regulations:—Continued

Bulletin 2021–22

REG-115057-20, 2021-05 I.R.B. 714
REG-121095-19, 2021-18 I.R.B. 1131

AOD:
2021-1, 2021-15 I.R.B. 985
2021-2, 2021-21 I.R.B. 1156

Announcements:
2021-01, 2021-04 I.R.B. 506
2021-02, 2021-08 I.R.B. 892
2021-03, 2021-08 I.R.B. 892
2021-04, 2021-09 I.R.B. 895
2021-05, 2021-13 I.R.B. 965
2021-06, 2021-15 I.R.B. 1011
2021-07, 2021-15 I.R.B. 1061
2021-08, 2021-18 I.R.B. 1146
2021-09, 2021-20 I.R.B. 1155
2021-10, 2021-22 I.R.B. 1170

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
2021-09, 2021-05 I.R.B. 678
2021-06, 2021-06 I.R.B. 822
2021-08, 2021-06 I.R.B. 823
2021-11, 2021-06 I.R.B. 827
2021-12, 2021-06 I.R.B. 828
2021-13, 2021-06 I.R.B. 832
2021-10, 2021-07 I.R.B. 888
2021-15, 2021-10 I.R.B. 898
2021-16, 2021-10 I.R.B. 907
2021-18, 2021-11 I.R.B. 911
2021-19, 2021-11 I.R.B. 920
2021-20, 2021-11 I.R.B. 922
2021-17, 2021-14 I.R.B. 984
2021-21, 2021-15 I.R.B. 986
2021-22, 2021-15 I.R.B. 987
2021-23, 2021-16 I.R.B. 1113
2021-25, 2021-17 I.R.B. 1118
2021-24, 2021-18 I.R.B. 1122
2021-27, 2021-18 I.R.B. 1125
2021-28, 2021-18 I.R.B. 1130
2021-29, 2021-19 I.R.B. 1149
2021-30, 2021-19 I.R.B. 1149
2021-26, 2021-21 I.R.B. 1157
2021-32, 2021-21 I.R.B. 1159

Proposed Regulations:

Revenue Procedures:
2021-01, 2021-01 I.R.B. 1
2021-02, 2021-01 I.R.B. 116
2021-03, 2021-01 I.R.B. 140
2021-04, 2021-01 I.R.B. 157
2021-05, 2021-01 I.R.B. 250
2021-07, 2021-01 I.R.B. 290
2021-09, 2021-03 I.R.B. 485
2021-08, 2021-04 I.R.B. 502
2021-10, 2021-04 I.R.B. 503
2021-12, 2021-05 I.R.B. 681
2021-11, 2021-06 I.R.B. 833
2021-15, 2021-08 I.R.B. 891
2021-17, 2021-15 I.R.B. 991
2021-18, 2021-15 I.R.B. 1007
2021-19, 2021-15 I.R.B. 1008
2021-21, 2021-17 I.R.B. 1118
2021-20, 2021-19 I.R.B. 1150
2021-23, 2021-20 I.R.B. 1153
2021-25, 2021-21 I.R.B. 1161
2021-26, 2021-22 I.R.B. 1163

Revenue Rulings:
2021-01, 2021-02 I.R.B. 294
2021-02, 2021-04 I.R.B. 495
2021-03, 2021-05 I.R.B. 674
2021-04, 2021-06 I.R.B. 724
2021-05, 2021-10 I.R.B. 896
2021-06, 2021-12 I.R.B. 946
2021-07, 2021-14 I.R.B. 982
2021-08, 2021-18 I.R.B. 1120

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
9936, 2021-05 I.R.B. 508
9943, 2021-05 I.R.B. 577
9945, 2021-05 I.R.B. 627
9946, 2021-06 I.R.B. 726
9947, 2021-06 I.R.B. 748
9948, 2021-06 I.R.B. 801
9938, 2021-07 I.R.B. 838
9944, 2021-16 I.R.B. 1062

REG-130081-19, 2021-02 I.R.B. 321
REG-114615-16, 2021-03 I.R.B. 489
REG-111950-20, 2021-05 I.R.B. 683

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

June 1, 2021

ii

Bulletin No. 2021–22

Finding List of Current Actions on
Previously Published Items1
Bulletin 2021–22

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. 2021–22

iii

June 1, 2021

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

INTERNAL REVENUE BULLETIN

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

We Welcome Comments About the Internal Revenue Bulletin

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A71e0e7ee449e5401. Public record. Not legal advice.