Bulletin No. 2021–33

HIGHLIGHTS

OF THIS ISSUE





Bulletin No. 2021–33

August 16, 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.

EMPLOYEE PLANS

Notice 2021-48, page 305.

This notice provides guidance on the changes to the funding rules for single-employer defined benefit pension plans

under § 430 of the Internal Revenue Code that were made

by §§ 9705 and 9706 of the American Rescue Plan Act of

2021.

EMPLOYEE PLANS; EMPLOYMENT

TAX; EXCISE TAX

Notice 2021-46, page 303.

This notice provides additional guidance on issues relating

to the application of § 9501 of the American Rescue Plan

Act of 2021 (the ARP), which provides temporary premium

assistance for Consolidated Omnibus Budget Reconciliation

Act of 1985 (COBRA) continuation coverage. This notice expands on guidance in Notice 2021-31, 2021-23 IRB 1173.

The questions addressed include availability of the premium

assistance to individuals eligible for an extension who had

not elected it; whether premium assistance for vision or dental-only coverage ends due to eligibility for other health coverage that does not include vision or dental benefits; availability of premium assistance under a State statute that limits

continuation coverage to government employees; whether

Finding Lists begin on page ii.

employers may claim the premium assistance tax credit if

the SHOP exchange requires employers to pay COBRA premiums and which party may claim the premium assistance

tax credit in situations involving parties other than an insurer

or former common law employer providing the COBRA coverage.

TAX CONVENTIONS

Announcement 2021-13, page 314.

The competent authorities of the United States and the United

Kingdom have entered into a Competent Authority Arrangement under paragraph 3 of Article 26 (Mutual Agreement

Procedure) agreeing that references to the “North American

Free Trade Agreement” in paragraph 7 of Article 23 (Limitation on Benefits) of the U.S.-U.K. Income Tax Treaty shall

be understood as the “United States-Mexico-Canada Agreement” (“USMCA”) upon entry into force of the USMCA.

Announcement 2021-14, page 315.

The competent authorities of the United States and the

United Kingdom have entered into a Competent Authority

Arrangement under paragraph 3 of Article 26 (Mutual Agreement Procedure) agreeing that U.K. residents may be eligible

to qualify as equivalent beneficiaries for purposes of applying

the derivative benefits test in paragraph 3 of Article 23 (Limitation on Benefits) of the U.S.-U.K. Income Tax Treaty.

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.

August 16, 2021 

Bulletin No. 2021–33

Part III

Premium Assistance for

COBRA Benefits Part II

Notice 2021-46

This notice provides additional guidance on the application of § 9501 of the

American Rescue Plan Act of 2021 (the

ARP), Pub. L. 117-2, 135 Stat. 4 (March

11, 2021), relating to temporary premium assistance for Consolidated Omnibus

Budget Reconciliation Act of 1985 (COBRA) continuation coverage.1

BACKGROUND

Following enactment of the ARP, the

IRS addressed issues with respect to COBRA premium assistance for COBRA

continuation coverage under the ARP in

Notice 2021-31, 2021-23 IRB 1173. This

notice supplements Notice 2021-31 and

addresses additional issues. Terms used

in this notice have the same meanings as

those terms have in Notice 2021-31, unless indicated otherwise.

ELIGIBILITY FOR COBRA

PREMIUM ASSISTANCE –

EXTENDED COVERAGE PERIODS

Q-1. Is COBRA premium assistance

available for a potential Assistance Eligible Individual whose original 18-month

COBRA continuation coverage period has

expired, but who is entitled to notify the

plan or insurer, and has not yet done so,

of the intent to elect COBRA continuation

coverage for an extended period due to

a disability determination, second qualifying event, or an extension under State

mini-COBRA, to the extent the extended

period of coverage falls between April 1,

2021 and September 30, 2021?

A-1. Yes. If the original qualifying

event was a reduction in hours or an involuntary termination of employment,

COBRA premium assistance is available

to an individual who is entitled to elect

COBRA continuation coverage for an

extended period due to a disability determination, second qualifying event, or an

extension under State mini-COBRA, to

the extent the extended period of coverage

falls between April 1, 2021 and September

30, 2021, even if the individual had not

notified the plan or insurer of the intent to

elect extended COBRA continuation coverage before the start of that period.

Example: An individual who was provided a COBRA general notice is involuntarily terminated and

elects COBRA continuation coverage effective October 1, 2019; the individual’s 18-month COBRA continuation period lapses March 31, 2021. On March

1, 2020, a disability determination letter is issued by

the Social Security Administration providing that the

individual was disabled as of November 1, 2019. The

disability determination entitles the individual to the

29-month extended COBRA continuation coverage.

The individual fails to notify the plan of the disability determination by April 30, 2020, which is 60 days

after the date of the issuance of the disability determination letter as required under § 4980B(f)(6)(C).

However, under the Emergency Relief Notices, the

individual has one year and 60 days from the issuance of the disability determination letter to notify

the plan of the disability to extend COBRA continuation coverage. On April 10, 2021, the individual

notifies the plan of the disability and elects ongoing

coverage from April 1, 2021. Assuming the individual is not eligible for other disqualifying group

health plan coverage or Medicare, the individual is

an Assistance Eligible Individual and is entitled to

the COBRA premium assistance.

END OF COBRA PREMIUM

ASSISTANCE PERIOD – DENTAL

AND VISION COVERAGE

Q-2. If an Assistance Eligible Individual previously elected COBRA continuation coverage with premium assistance for

dental-only or vision-only coverage, does

the individual cease to be eligible for COBRA premium assistance if the individual

subsequently becomes eligible to enroll in

other disqualifying group health plan coverage or Medicare that does not provide

dental or vision benefits?

A-2. Yes. Eligibility for COBRA premium assistance ends when the Assistance

Eligible Individual becomes eligible for

coverage under any other disqualifying

group health plan or Medicare, even if the

other coverage does not include all of the

benefits provided by the previously elected COBRA continuation coverage. For

example, eligibility for Medicare, which

generally does not provide vision or dental coverage, ends eligibility for premium

assistance related to all previously elected

COBRA continuation coverage, including previously elected dental-only or vision-only COBRA continuation coverage.

COMPARABLE STATE

CONTINUATION COVERAGE –

COVERAGE FOR A SUBSET OF

STATE RESIDENTS

Q-3. Does a State continuation coverage program provide comparable coverage to COBRA continuation coverage for

qualifying individuals if the State program

covers only a subset of State residents (for

example, only employees of a State or local government unit)?

A-3. Yes. A State program does not fail

to provide comparable coverage to Federal COBRA continuation coverage solely

because the program covers only a subset

of State residents, as long as the program

provides coverage otherwise comparable

to Federal COBRA. For more information

on comparable state continuation coverage, see Notice 2021-31, Q&A-61 and

Q&A-62. Thus, a State law that provides

continuation coverage only for employees

of a State or local government unit may

be comparable coverage that qualifies Assistance Eligible Individuals for COBRA

premium assistance under the ARP.

CLAIMING THE COBRA

PREMIUM ASSISTANCE CREDIT –

ADDITIONAL CLARIFICATION ON

THE ENTITY THAT MAY CLAIM

THE CREDIT

Q-4. What is the general rule for determining which entity is the common

Employer-sponsored health plans generally are required to offer an employee, spouse, or dependent child covered by the plan the opportunity to continue coverage under the plan for a

specified period of time after the occurrence of certain events that otherwise would have terminated the coverage (qualifying events). These continuation of coverage requirements, and the

corresponding coverage (if elected), are often referred to as “COBRA continuation coverage” or “COBRA” requirements. The COBRA requirements were enacted originally as part of the

Consolidated Omnibus Budget Reconciliation Act of 1985, Pub. L. 99-272 (April 7, 1986), and are set forth in § 4980B of the Internal Revenue Code.

1

Bulletin No. 2021–33

303

August 16, 2021

law employer maintaining the plan, as described in Notice 2021-31, Q&A-72(2)?

A-4. The common law employer maintaining the plan is the current common law

employer for Assistance Eligible Individuals whose hours have been reduced or the

former common law employer for those

individuals who have been involuntarily

terminated from employment, which, in

both cases, serves as the basis for the individual’s eligibility for COBRA continuation coverage (collectively referred to as

the common law employer). Generally, as

described in Notice 2021-31, Q&A-72(2),

when the requirements in § 6432(b)(2) are

satisfied, the common law employer is the

entity entitled to claim the credit, subject

to the exceptions set forth in Notice 202131, Q&A-82 (as clarified in Q&A-8 of

this notice), and in Q&A-9 and Q&A-10

of this notice.

Q-5. For a period of State-mandated

continuation coverage that is comparable to Federal COBRA, if the plan is also

subject to Federal COBRA (for example,

a period of State-mandated continuation

coverage that extends beyond the applicable Federal COBRA period), which entity

is the premium payee entitled to claim the

COBRA premium assistance credit?

A-5. For State-mandated continuation coverage that is comparable to Federal COBRA and is a group health plan

subject to both Federal COBRA and the

State-mandated continuation coverage,

the common law employer is the premium

payee entitled to claim the credit because

the plan is subject to Federal COBRA. See

Notice 2021-31, Q&A-72. Consequently,

even if the State-mandated continuation

coverage would require the Assistance

Eligible Individual to pay the premiums

directly to the insurer after the period of

Federal COBRA ends, the insurer is not

entitled to claim the COBRA premium assistance credit.

Q-6. If a group health plan (other than

a multiemployer plan) subject to Federal

COBRA covers employees of different

common law employers that are members

of a single controlled group, which entity

is the premium payee entitled to claim the

COBRA premium assistance credit?

A-6. If a plan (other than a multiemployer plan) subject to Federal COBRA

covers employees of two or more members of a controlled group, each common

August 16, 2021

law employer that is a member of the controlled group is the premium payee entitled to claim the COBRA premium assistance credit with respect to its employees

or former employees. Although all of the

members of a controlled group are treated

as a single employer for employee benefit purposes, each member is a separate

common law employer for employment

tax purposes. Therefore, the common law

employer is the premium payee, unless

Notice 2021-31, Q&A-82 (as clarified in

Q&A-8 of this notice) applies, or there is

a business reorganization as described in

Treas. Reg. § 54.4980B-9 and Q&A-9 of

this notice.

Q-7. If a group health plan (other than

a multiemployer plan) subject to Federal

COBRA covers employees of two or more

unrelated employers, which entity is the

premium payee entitled to claim the COBRA premium assistance credit?

A-7. If a group health plan (other than

a multiemployer plan) subject to Federal

COBRA covers employees of two or more

unrelated employers, the premium payee

entitled to claim the premium assistance

credit is the common law employer, unless

Notice 2021-31, Q&A-82 (as clarified in

Q&A-8 of this notice) applies or there is

a business reorganization as described in

§ 54.4980B-9 and Q&A-9 of this notice.

Q-8. If an entity provides health benefits to employees of another entity, but

it is not a third-party payer of those employees’ wages, may it be treated as a

third-party payer for purposes of applying

Notice 2021-31, Q&A-82?

A-8. No. For purposes of Notice 202131, Q&A-82, a third-party payer is an entity that pays wages subject to Federal employment taxes and reports those wages

and taxes on an aggregate employment tax

return that it files on behalf of its client(s).

As indicated in Notice 2021-31, Q&A-82,

these entities are typically professional

employer organizations (PEOs), certified professional employer organizations

(CPEOs), or agents described in § 3504.

Example: Employer A and Employer B participate in a Multiple Employer Welfare Arrangement

(MEWA) that neither pays wages subject to employment taxes nor reports wages and taxes on an aggregate employment tax return on behalf of Employer

A and Employer B. Certain former employees of

Employer A and Employer B are Assistance Eligible Individuals eligible for coverage provided by the

MEWA. The MEWA is not the premium payee and is

therefore not entitled to the COBRA premium assis-

304

tance credit. Instead, as provided in Notice 2021-31,

Q&A-72, and as clarified in Q&A-7 of this notice,

Employer A and Employer B are the premium payees

and are entitled to the COBRA premium assistance

credit.

Q-9. If there is a business reorganization described in § 54.4980B–9, which entity is the premium payee entitled to claim

the COBRA premium assistance credit for

COBRA continuation coverage elected by

Assistance Eligible Individuals who are

also M&A qualified beneficiaries (as defined in § 54.4980B–9, Q&A-4) if the selling group (as defined in § 54.4980B–9,

Q&A-2 or -3) remains obligated to make

COBRA continuation coverage available

to the M&A qualified beneficiaries?

A-9. If the selling group remains obligated under § 54.4980B–9, Q&A-8 to

make COBRA continuation coverage

available to M&A qualified beneficiaries

after a business reorganization described

in § 54.4980B–9, the entity in the selling

group that maintains the group health plan

is the premium payee entitled to claim

the COBRA premium assistance credit. If, under § 54.4980B-9, Q&A-8, the

common law employer (which may be

an entity in the buying group (as defined

in § 54.4980B-9, Q&A-2 or -3)) is not

obligated to make COBRA continuation

coverage available to Assistance Eligible

Individuals, the common law employer is

not entitled to the COBRA premium assistance credit after the business reorganization.

Q-10. If a group health plan maintained

by an agency of a State government (State

agency) that provides health coverage to

employees of various agencies of the State

and local governments within the State is

subject to the Federal COBRA requirements under the Public Health Service

Act, and Assistance Eligible Individuals

would have been required to remit COBRA premiums directly to the State agency were it not for the COBRA premium

assistance, which entity is the premium

payee entitled to claim the COBRA premium assistance credit?

A-10. If a State agency is obligated

to make COBRA continuation coverage

available to employees of various agencies of the State and local governments

within the State, and the Assistance Eligible Individuals would have been required

to remit COBRA premium payments directly to the State agency were it not for

Bulletin No. 2021–33

the COBRA premium assistance, the State

agency is the premium payee entitled to

claim the COBRA premium assistance

credit. In this case, the common law employer (if other than the State agency)

would not be entitled to the COBRA premium assistance credit.

Q-11. If a fully insured plan that is not

subject to Federal COBRA is offered by

an employer through a Small Business

Health Options Program (SHOP), is the

employer the premium payee entitled to

claim the premium assistance credit?

A-11. Yes, but only in certain circumstances. If a fully insured plan that is not

subject to Federal COBRA is offered by

an employer through a SHOP exchange,

the common law employer is treated as

the premium payee and is therefore eligible to claim the premium assistance credit

with respect to coverage in the plan if all

of the following conditions are satisfied:

(i) the employer participates in a SHOP

exchange that offers multiple insurance

choices to employees enrolled in the same

small group health plan; (ii) the SHOP

exchange provides the participating employer with a single premium invoice, aggregates all premium payments, and then

allocates and pays the applicable premium

amounts to the insurers; (iii) the participating employer has a contractual obligation with the SHOP exchange to pay

all applicable COBRA premiums to the

SHOP exchange; and (iv) the participating

employer would have received the State

mini-COBRA premiums directly from the

Assistance Eligible Individuals were it not

for the COBRA premium assistance.

If all four of these conditions are satisfied, then the insurer of a plan that is not

subject to Federal COBRA is not treated

as the premium payee with respect to coverage in the plan and is, therefore, not eligible to claim the credit. However, in all

other cases of a fully-insured plan subject

solely to State mini-COBRA, the insurer

(and not the common law employer) is the

premium payee entitled to the premium

assistance credit, which is the general rule

set forth in Notice 2021-31, Q&A-72.

DRAFTING INFORMATION

The principal authors of this notice

are Jason Sandoval and Mikhail Zhidkov

of the Office of Associate Chief Counsel

Bulletin No. 2021–33

(Employee Benefits, Exempt Organizations, and Employment Taxes). Other

Treasury Department and IRS officials

participated in its development. For further information on the provisions of this

notice in general, contact Jason Sandoval

at (202) 317-5500 (not a toll-free number). For further information on topics

addressed in the section of this notice titled Claiming the COBRA Premium Assistance Credit – Additional Clarification

on the Entity that May Claim the Credit,

contact Mikhail Zhidkov at (202) 3174774 (not a toll-free number).

Guidance on SingleEmployer Defined Benefit

Pension Plan Funding

Changes under the

American Rescue Plan Act

of 2021

Notice 2021-48

I. Purpose

This notice provides guidance on

the changes to the funding rules for single-employer defined benefit pension

plans under § 430 of the Internal Revenue

Code (Code) that were made by §§ 9705

and 9706 of the American Rescue Plan

Act of 2021 (the ARP), Pub. L. No. 1172, 135 Stat. 4 (March 11, 2021). Those

changes also affect the application of the

funding-based limits on benefits under

§ 436 of the Code.

Section 303 of the Employee Retirement Income Security Act of 1974, Pub.

L. No. 93‑406, 88 Stat. 829 (September

2, 1974), as amended (ERISA), provides

rules that are parallel to the rules of § 430

of the Code, and § 206(g) of ERISA provides rules that are parallel to the rules of

§ 436 of the Code. Section 303 of ERISA

was amended by §§ 9705 and 9706 of the

ARP. Under § 101 of Reorganization Plan

No. 4 of 1978 (92 Stat. 3790, as amended by Pub. L. No. 99–514, § 2, Oct. 22,

1986, 100 Stat. 2095) and § 3002(c) of

ERISA, the Secretary of the Treasury has

interpretive jurisdiction over the subject

matter addressed in this notice for purpos-

305

es of ERISA, as well as the Code. Thus,

the provisions of this notice pertaining to

§§ 430 and 436 of the Code also apply for

purposes of §§ 303 and 206(g) of ERISA.

II. Background

A. Minimum funding requirements under

§ 430 of the Code and benefit limitations

under § 436 of the Code

Section 412 of the Code provides that

a sponsor of a qualified defined benefit

plan (other than a multiemployer plan

described in § 414(f) or a CSEC plan described in § 414(y)) must make contributions to or under the plan for the plan year

that, in the aggregate, are not less than

the minimum required contribution determined under § 430 for the plan year.

As part of the determination of the

minimum required contribution under

§ 430, § 430(c) generally requires the

establishment of a shortfall amortization

base with respect to any plan year for

which the value of a plan’s assets is less

than the amount of the plan’s funding target. The shortfall amortization base of a

plan for a plan year is equal to the funding

shortfall of the plan for the plan year, minus the present value of the aggregate total

of the shortfall amortization installments

and waiver amortization installments that

have been determined for the plan year

and any succeeding plan year with respect

to the shortfall amortization bases and

waiver amortization bases of the plan for

plan years preceding the plan year. Prior to

the enactment of the ARP, a plan’s shortfall amortization installments generally

were calculated to amortize each shortfall

amortization base over 7 plan years pursuant to § 430(c)(2).

Under § 430(f), the plan sponsor of

a defined benefit plan that is subject to

§ 430 may elect to maintain a prefunding

balance and a funding standard carryover

balance, representing the cumulative total of contributions in excess of the minimum required contribution. Subject to

certain conditions, all or a portion of the

prefunding balance or funding standard

carryover balance may be used, at the

plan sponsor’s election, to offset the minimum required contribution for a plan year.

Under § 430(f)(6)(B)(i), a plan sponsor

that makes contributions in excess of the

August 16, 2021

minimum required contribution for a plan

year may elect to add that excess (adjusted with interest using the effective interest

rate for that plan year in accordance with

§ 430(f)(6)(B)(ii)) to the plan’s prefunding balance. A plan sponsor may also elect

to reduce the plan’s prefunding balance or

the funding standard carryover balance as

provided in § 430(f)(5).

Section 430(h)(2) specifies interest

rates that are used to calculate the minimum required contribution under § 430.

These interest rates are a set of three

segment rates described in § 430(h)(2)

(C)(i), (ii) and (iii), or, alternatively, a

full yield curve described in § 430(h)(2)

(D)(i). Section 40211(a) of The Moving

Ahead for Progress in the 21st Century

Act (MAP-21), Pub. L. No.112-141, 126

Stat. 405 (July 6, 2012), added § 430(h)(2)

(C)(iv) to the Code, which provides that

each of the three segment rates described

in § 430(h)(2)(C)(i), (ii), and (iii) for a

plan year is adjusted as necessary to fall

within a specified range that is determined

based on an average of the corresponding

segment rates for the 25-year period ending on September 30 of the calendar year

preceding the first day of that plan year.

Notice 2012-61, 2012-42 I.R.B. 479, provides guidance regarding the application

of the adjusted segment rates.

Section 436 provides limits on benefits

and benefit accruals under a single-employer defined benefit pension plan (other than a CSEC plan), which are applied

based on the plan’s adjusted funding target attainment percentage (AFTAP) within the meaning of § 436(j)(2) for a plan

year. Under § 436(j)(2), the AFTAP for a

plan year is based on the percentage determined by dividing the value of plan assets

for the plan year (generally reduced by

the sum of the plan’s prefunding balance

and funding standard carryover balance)

by the funding target for the plan year.

Section 436(b) provides generally that

unpredictable contingent event benefits

resulting from an event may not be paid if,

taking into account the payment of those

benefits, the plan’s AFTAP would be less

than 60 percent. Section 436(c) provides

generally that no amendment increasing

liabilities may take effect if, after taking

into account that amendment, the plan’s

AFTAP would be less than 80 percent.

Section 436(d) provides generally that

August 16, 2021

the plan may not pay certain accelerated

forms of benefit (such as a single-sum distribution) if the plan’s AFTAP is less than

80 percent. Section 436(e) provides generally that benefit accruals must cease if

the plan’s AFTAP is less than 60 percent.

Sections 436(b)(2) and (c)(2) provide

rules that allow a plan sponsor to avoid

or terminate benefit restrictions under

§ 436(b) or (c) by making an additional

contribution of a certain amount to the

plan. Section 1.436-1(f) provides rules for

these contributions, which are referred to

as § 436 contributions. Section 1.436-1(f)

(2)(i)(A) provides that any § 436 contribution made by a plan sponsor on a date

other than the valuation date for the plan

year must be adjusted with interest at the

plan’s effective interest rate for that plan

year. If the plan’s effective interest rate for

the plan year has not been determined at

the time of the contribution, then this interest adjustment must be made using the

highest of the three segment rates as applicable for that plan year. In that case, if

the effective interest rate for the plan year

is subsequently determined to be less than

that highest rate, the excess is recharacterized as an employer contribution taken

into account under § 430 for the current

plan year.

Section 436(h) provides rules that apply prior to the certification of the AFTAP

for a plan year by the plan’s enrolled actuary. Under § 436(h)(1), if a benefit limitation applied to a plan on the last day of the

preceding plan year, then the current plan

year’s AFTAP generally is presumed to be

equal to the prior plan year’s AFTAP for

the period beginning on the first day of the

plan year and ending when the plan’s enrolled actuary certifies the AFTAP for the

current plan year. Under § 436(h)(3), if (i)

the plan’s enrolled actuary has not certified

the AFTAP for the current plan year by the

first day of the 4th month of the plan year,

and (ii) the AFTAP for the prior plan year

did not result in the application of a benefit limitation for that prior plan year (but

would have resulted in the application of a

benefit limitation had that AFTAP been 10

percentage points lower), then the AFTAP

for the current plan year is presumed to

be equal to 10 percentage points less than

the AFTAP for the prior plan year for the

period beginning on that first day of the

4th month and ending when the plan’s en-

306

rolled actuary certifies the plan’s AFTAP

for the current plan year. Under § 436(h)

(2), if no certification of the AFTAP for

the current plan year is made before the

first day of the 10th month of that year,

then the AFTAP for the current plan year

is presumed to be less than 60 percent as

of that first day.

Section 3608(a)(1) of the Coronavirus Aid, Relief, and Economic Security

Act (CARES Act), Pub. L. No. 116-136,

134 Stat. 281 (March 27, 2020) provides

that any minimum required contribution

that would otherwise be due under § 430

of the Code during calendar year 2020

(including quarterly installments under

§ 430(j)(3) of the Code and § 303(j)(3)

of ERISA) are due on January 1, 2021.

Section 3608(a)(2) of the CARES Act

provides that those contributions and

installments are to be increased with

interest accruing for the period between

the original due date for the contribution

or installment and the date of the payment at the effective interest rate for the

plan for the plan year that includes the

payment date. Section 3608(b) of the

CARES Act provides that for purposes of applying § 436 of the Code (and

§ 206(g) of ERISA), a plan sponsor may

elect to treat the plan’s AFTAP for the

last plan year ending before January

1, 2020, as the AFTAP for plan years

that include calendar year 2020. Notice

2020-61, 2020-35 I.R.B. 468 and Notice

2020-82, 2020-49 I.R.B. 1458 provide

guidance regarding the application of

§ 3608 of the CARES Act.

B. Extension of the amortization period

for shortfall amortization bases

Section 9705(a) of the ARP added

§ 430(c)(8) to the Code to extend the amortization period for shortfall amortization

bases. Under § 430(c)(8), with respect to

plan years beginning after December 31,

2021 (or, at the election of the plan sponsor, plan years beginning after December

31, 2018, December 31, 2019, or December 31, 2020), the shortfall amortization

bases for all plan years preceding the first

plan year to which this provision applies

(and all shortfall amortization installments

determined with respect to those bases)

are reduced to zero, and shortfall amortization installments for all new shortfall

Bulletin No. 2021–33

amortization bases are calculated to amortize each shortfall amortization base over

15 plan years.

C. Changes to the adjusted 24-month

average segment rates

Prior to the enactment of the ARP, the

applicable minimum and maximum percentages for the 24-month average segment rates set forth in the table in § 430(h)

(2)(C)(iv)(II) of the Code were 90% to

110% for plan years beginning before

January 1, 2021, 85% to 115% for plan

years beginning in 2021, 80% to 120%

for plan years beginning in 2022, and a

wider corridor for later plan years. Section 9706(a)(1) of the ARP changed those

specified ranges. As amended by the ARP,

the applicable minimum and maximum

percentages are 95% and 105% for plan

years beginning in 2020 through 2025,

and a wider corridor for later plan years.

Section 9706(a)(2) of the ARP amended

§ 430(h)(2)(C)(iv)(I) of the Code to provide that if the average of the first, second,

or third segment rate for any 25-year period is less than 5 percent, then 5 percent is

substituted for that 25-year average. The

adjusted 24-month average segment rates

determined under § 430(h)(2)(C)(iv), taking into account the amendments made by

the ARP, are referred to in this notice as

the ARP segment rates (and the adjusted

24-month average segment rates determined not taking into account the amendments made by the ARP are referred to as

the pre-ARP segment rates).

Section 9706(c)(1) of the ARP provides

that the amendments made by § 9706 are

effective with respect to plan years beginning after December 31, 2019.1 However,

§ 9706(c)(2) provides that a plan sponsor

may elect not to have the amendments

made by § 9706 apply to any plan year beginning before January 1, 2022, either (as

specified in the election) for all purposes or solely for purposes of determining

the AFTAP for the plan year. In addition,

under § 9706(c)(2), a plan is not treated

as failing to meet the requirements of

§ 411(d)(6) of the Code solely by reason

of this election.

D. Market rate of interest limitation for

statutory hybrid plans

Section 1.411(b)(5)-1(d)(1)(i) provides that a statutory hybrid plan satisfies the requirement in § 411(b)(1)(H)

only if the interest crediting rate under

the statutory hybrid benefit formula does

not exceed a market rate of return. Under § 1.411(b)(5)-1(d)(1)(iii)(A) and (d)

(3), an interest crediting rate satisfies this

market rate of return limitation if it is no

greater than the third segment rate described in § 430(h)(2)(C)(iii), determined

with or without regard to § 430(h)(2)(C)

(iv). Under § 1.411(b)(5)-1(d)(1)(iii)(B)

and (d)(4), an interest crediting rate satisfies the market rate of return limitation if

it is no greater than the first or second

segment rate described in § 430(h)(2)(C)

(i) and (ii), determined with or without

regard to § 430(h)(2)(C)(iv).

III. Application of § 430(c)(8) of the

Code and § 9706 of the ARP

A. General guidance relating to

application of § 430(c)(8) of the Code

For all plan years beginning after December 31, 2021, shortfall amortization

bases are amortized over 15 years, and for

all earlier plan years, all shortfall amortization bases are eliminated. However, a

plan sponsor may elect to have this rule

apply to plan years beginning after December 31, 2018, 2019, or 2020. If the

plan sponsor elects an earlier application

of § 430(c)(8), the first sentence of this

section III.A is applied by substituting the

December 31 of the earlier calendar year

that the plan sponsor elects for December

31, 2021.

B. General guidance relating to

application of § 9706 of the ARP

1. Applicability of the ARP segment rates

Q&A G-2 of Notice 2012-61 specifies

the items for which the adjusted 24-month

average segment rates, determined taking

into account § 430(h)(2)(C)(iv), apply or

do not apply. That guidance generally remains in effect following the enactment of

the ARP, but is modified to reflect subsequent statutory changes and to take into

account any election under § 9706(c)(2)

of the ARP not to apply the ARP segment

rates for a plan year.

For example, Notice 2012-61 provides

that if the adjusted segment rates under

§ 430(h)(2)(C)(iv) apply for a plan year,

then those rates apply for the purposes

of determining the minimum required

contribution under § 430, including the

calculation of target normal cost and

funding target under § 430(b) and (d) and

§ 1.430(d)-1, the calculation of the present value of remaining shortfall and waiver amortization installments for purposes

of determining any shortfall amortization

base established in the current plan year

under § 430(c)(3), the determination of

shortfall and waiver amortization installments under § 430(c)(2) and (e)(2), and

the limitation on the assumed rate of return for purposes of determining the average value of assets under § 430(g)(3)

(B), as described in section III.B. or III.C.

of Notice 2009-22, 2009-14 I.R.B. 741.

Therefore, for a plan year beginning in

2020, the ARP segment rates apply for

these purposes unless the plan sponsor has

elected under § 9706(c)(2) of the ARP to

apply the pre-ARP segment rates for that

plan year.

2. Effect of § 9706 of the ARP on interest

adjustments with respect to certain

contributions made pursuant to § 3608(a)

of the CARES Act

The application of the ARP segment

rates for a plan year increases the effective

interest rate for the plan for that plan year,

compared to the effective interest rate determined using the pre-ARP segment rates

for that plan year. Although Q&A-2 of

Notice 2020-61 provides that the effective

interest rate for the plan year in which a

contribution is made is used for certain

interest adjustments with respect to a contribution that is made after the original due

date for the plan year (but no later than

the extended deadline under § 3608(a) of

The adjusted 24-month average segment rates for months between January 2020 and March 2021, taking into account the amendments made by the ARP, are set forth in Notice 2021-27,

2021-18 I.R.B. 1125.

1

Bulletin No. 2021–33

307

August 16, 2021

the CARES Act), the ARP segment rates

are not used for determining that effective

interest rate if the plan year for which the

extended due date applies is a plan year

beginning before January 1, 2020. This is

because pursuant to § 9706(c)(1) of the

ARP, the ARP segment rates only apply

with respect to a plan year beginning after

December 31, 2019.

In addition, if a contribution for a plan

year beginning before January 1, 2020 is

made after the original due date but no

later than the extended due date under

§ 3608(a) of the CARES Act, then, as

described in Q&A-9 of Notice 2020-61,

the interest adjustment rules of Q&A-2 of

Notice 2020-61 apply for purposes of determining the value of plan assets for the

next plan year. Accordingly, the pre-ARP

segment rates will apply to determine the

effective interest rate that is used for this

purpose.

3. Applying the ARP segment rates to

statutory hybrid plan interest credits

If a statutory hybrid plan provides an

interest crediting rate that is based on any

of the three segment rates specified in

§ 430(h)(2)(C)(i), (ii), or (iii) of the Code

determined taking into account the corridor under § 430(h)(2)(C)(iv), the enactment of the ARP will result in a change

to the plan’s interest crediting rate. If an

election under § 9706(c)(2) of the ARP to

apply the pre-ARP segment rates for a plan

year beginning in 2020 or 2021 has been

made, the plan’s interest crediting rate for

the plan year will be determined by applying § 430(h)(2)(C)(iv) of the Code without regard to the amendment by § 9706

of the ARP. In contrast, if a plan sponsor

does not make an election under § 9706(c)

(2) of the ARP to apply the pre-ARP rates

for a plan year beginning in 2020 or 2021,

then the plan’s interest crediting rate for

the plan year will be determined by applying § 430(h)(2)(C)(iv) of the Code taking

into account its amendment by § 9706 of

the ARP. In that case, the plan administrator may apply a reasonable interpretation

of plan terms that reference § 430(h)(2)(C)

(iv) of the Code in determining when this

change in the interest crediting rate takes

effect. For this purpose, it is reasonable to

interpret the plan as providing for interest

credits determined without taking into account the amendments made by § 9706 of

the ARP for interest crediting periods that

ended prior to March 11, 2021 (the date

of enactment of the ARP), and to interpret

the plan as providing for interest credits

taking into account those amendments for

all interest crediting periods that end on or

after March 11, 2021.

IV. Manner and Timing of Making

Elections under the ARP

ment to line 32 of the Schedule SB for the

2020 plan year reflects 14 years remaining

in the amortization period for the shortfall amortization base for the 2019 plan

year, the plan sponsor will be deemed to

have elected to apply § 430(c)(8) beginning with the 2019 plan year. If instead an

attachment to line 32 of the Schedule SB

for the 2020 plan year reflects only one

shortfall amortization base with 15 years

remaining in the amortization period, the

plan sponsor will be deemed to have elected to apply § 430(c)(8) beginning with the

2020 plan year.

A. Manner of election under § 430(c)(8)

of the Code

B. Manner of election under § 9706(c)(2)

of the ARP

The election under § 430(c)(8) of the

Code to have the first plan year for which

15-year amortization of shortfall amortization bases applies be a plan year that

starts before January 1, 2022, is made by

the plan sponsor by providing written notification of this election to both the plan’s

enrolled actuary and the plan administrator. This election must be signed and dated

by the plan sponsor, and must include the

following information:

(1) The name of the plan;

(2) The plan number;

(3) The name of the plan sponsor;

(4) The plan sponsor’s mailing address;

(5) The plan sponsor’s employer identification number; and

(6) The first plan year for which the 15year amortization period will apply.

If a Form 5500 “Annual Return/Report

of Employee Benefit Plan”, Form 5500SF “Short Form Annual Return/Report of

Small Employee Benefit Plan,“ or Form

5500-EZ “Annual Return of A One-Participant (Owners/Partners and Their

Spouses) Retirement Plan or A Foreign

Plan,” is filed for the plan year beginning

in 2019, 2020, or 2021, and the Schedule

SB “Single-Employer Defined Benefit

Plan Actuarial Information” reflects the

15-year amortization of shortfall amortization bases under § 430(c)(8), then the

plan sponsor is deemed to have elected to

apply § 430(c)(8) beginning with the first

plan year for which this 15-year amortization is used.2 For example, if an attach-

The election not to have the amendments made by § 9706 of the ARP apply

to a plan year (that is, to use the pre-ARP

segment rates for the plan year) is made in

the same manner as the election in section

IV.A of this notice. The contents of the

election must include items (1) through

(5), with the following additions:

(6) If the election is made for a plan

year beginning in 2020, a statement

of whether the election not to have the

amendments made by § 9706 of the

ARP apply is being made for all purposes or solely for purposes of determining the AFTAP under § 436 of the

Code for the plan year.

(7) If the election is made for a plan

year beginning in 2021, a statement

of whether the election not to have the

amendments made by § 9706 of the

ARP apply is being made for all purposes or solely for purposes of determining the AFTAP under § 436 of the

Code for the plan year.

C. Election under § 9706(c) of the ARP

deemed to be made by completing

Schedule SB in a specified manner

If a Form 5500, Form 5500-SF or

Form 5500-EZ is filed for the plan year

beginning in 2020, and if line 21a of the

Schedule SB reflects the segment rates determined without regard to the ARP, then

the plan sponsor is deemed to have elected to apply the pre-ARP segment rates for

Schedule SB is not required to be filed for plans for which Form 5500–EZ is filed and certain plans for which Form 5500–SF is filed. For these plans, the Schedule SB must be completed

(including being signed by the enrolled actuary) and delivered to the plan administrator, who must retain it. With respect to these plans, references in this notice to the filing of an amended

Form 5500, Form 5500-SF, or Form 5500-EZ with a revised Schedule SB are applied by substituting the completion and delivery of the revised Schedule SB for the filing of the amended form.

2

August 16, 2021

308

Bulletin No. 2021–33

purposes of both §§ 430 and 436 of the

Code for that plan year. If this deemed

election is made by a filing on or before

October 15, 2021, then the election may

be revoked by filing, no later than December 31, 2021, an amended Form 5500,

Form 5500-SF, or Form 5500-EZ for the

plan year, with a revised Schedule SB that

reflects the use of the ARP segment rates.

If the plan sponsor revokes the deemed

election, the plan sponsor may also elect

to apply the pre-ARP segment rates only

for purposes of § 436 under the rules of

section IV.B of this notice.

An election that is deemed made pursuant to this section IV.C is irrevocable if it

is not revoked in the time and manner set

forth in this section IV.C.

D. Timing of elections under the ARP

Any plan sponsor election made in

accordance with section IV.A or IV.B of

this notice (other than the deemed election

under section IV.A) must be made by the

later of: (i) the last day of the plan year

beginning in 2021, or (ii) December 31,

2021.

V. Rules for Elections under § 430(f)

of the Code as a Result of the ARP

and Flexibility to Redesignate

Contributions Between Plan Years

Section 1.430(f)-1(f)(1)(i) generally

provides that any election under § 430(f)

by the plan sponsor must be made by providing written notification of the election

to the plan’s enrolled actuary and the plan

administrator. Section 1.430(f)-1(f)(2)(i)

generally provides that any election under § 430(f) with respect to a plan year

must be made no later than the last date

for making the minimum required contribution for the plan year as described in

§ 430(j)(1), or such later date as prescribed

in guidance published in the Internal Revenue Bulletin. However, § 1.430(f)-1(f)(2)

(iii) provides that any election to reduce

the prefunding balance or funding standard carryover balance for a plan year (for

example, in order to avoid or terminate a

benefit restriction under § 436) must be

made by the end of the plan year to which

the election relates.

Section 1.430(f)-1(f)(3) provides, in

general, that elections with respect to

Bulletin No. 2021–33

the plan’s prefunding balance or funding

standard carryover balance are irrevocable and must be unconditional. However, § 1.430(f)-1(f)(3)(ii) provides that an

election to use the prefunding balance or

funding standard carryover balance to

offset the minimum required contribution

for a plan year is permitted to be revoked

for a plan year to the extent the amount

the plan sponsor elected to use to offset

the minimum required contribution exceeds the minimum required contribution

for the plan year. Section 1.430(f)-1(f)(3)

(ii) specifies that the method for revoking

this election is to provide written notification of the revocation to the plan’s enrolled actuary and the plan administrator

by the deadline set forth in § 1.430(f)1(f)(3)(iii). Under § 1.430(f)-1(f)(3)(iii),

this revocation must generally be made

by the end of the plan year for which the

election was made (if the valuation date

is the first day of the plan year) or the due

date for contributions under § 430(j)(1)

(if the valuation date is not the first day

of the plan year).

Section 1.430(j)-1(b)(3)(ii) provides

that if a contribution is made during the

current plan year but before the deadline

for contributions for a prior plan year, and

the plan has no unpaid minimum required

contribution for any plan year at the time

the contribution is made, then the contribution may be designated as a contribution for either that prior plan year or the

current plan year. Similarly, if a contribution made during the current plan year

but before the deadline for contributions

for a prior plan year is more than enough

to correct a plan’s unpaid minimum required contributions for all plan years,

the portion of that contribution that was

not used to correct unpaid minimum required contributions may be designated as a contribution for either that prior

plan year or the current plan year. Under

§ 1.430(j)-1(b)(3)(iii)(B), the designation

that a contribution is for a plan year is established by the completion (and filing, if

required) of the Schedule SB for the plan

year for which the contribution is designated. In addition, that designation may

not be changed after the actuarial report

that reflects the contribution is completed

(and filed, if required) except as provided in guidance published in the Internal

Revenue Bulletin.

309

A. Election to add to a prefunding

balance

If a plan sponsor is applying the ARP

for a plan year beginning in 2019, 2020, or

2021, the plan sponsor may make an election to increase the prefunding balance by

an amount no greater than the amount of

the increase in excess contributions for the

plan year resulting from the amendments

made by the ARP.

Generally, any election to add to the

prefunding balance for a plan year must

be made by 8½ months after the end of

plan year. Pursuant to the authority under

§ 1.430(f)-1(f)(2)(i) to provide exceptions

to this rule, an election made under this

section V.A will be deemed timely if it is

made by December 31, 2021. However,

this extension of time does not affect the

application of the rules under § 1.430(f)1(d)(1)(ii) regarding the maximum

amount of available balances or the timing requirements under § 1.430(f)-1(f) for

an election to use a funding standard carryover balance or prefunding balance to

offset the minimum required contribution.

B. Revocation of an election to use a

prefunding balance or funding standard

carryover balance

An election to use a prefunding balance

or funding standard carryover balance to

offset the minimum required contribution for a plan year that begins in 2019 or

2020 may be revoked to the extent of the

reduction in the minimum required contribution that results from applying any of

the amendments made by the ARP. This

revocation is made by providing written

notification of the revocation to the plan’s

enrolled actuary and the plan administrator and is deemed timely if it is made by

December 31, 2021.

C. Revocation of an election to reduce a

prefunding balance or funding standard

carryover balance

An election to reduce a plan’s prefunding balance or funding standard carryover

balance under § 1.430(f)-1(e) as of the

first day of a plan year beginning in 2020

or 2021 may be revoked in full or in part

if either of the amendments made by the

ARP apply for purposes of determining

August 16, 2021

the minimum required contribution for

that plan year. This revocation is made

by providing written notification of the

revocation to the plan’s enrolled actuary

and the plan administrator and is timely if

made by December 31, 2021.

D. Redesignation of plan year for

contributions

Pursuant to the authority under

§ 1.430(j)-1(b)(3)(iii)(B) to permit a contribution that has been designated for a

plan year to be redesignated for a different plan year, a plan sponsor may choose

to redesignate all or a portion of a contribution that was originally designated

as applying for the plan year beginning

in 2019 or 2020 as a contribution for the

immediately succeeding plan year. Any

redesignation made under this section V.D

applies only if the contribution could have

been designated as made for that immediately succeeding plan year. For example,

redesignation is not permitted if the redesignation would conflict with the requirement in § 1.430(j)-1(b)(3)(i) (related to

allocations to satisfy unpaid minimum required contributions). Similarly, if a contribution that was designated for one plan

year is being redesignated for the next

plan year, the contribution must have been

made within that next plan year (or after

the end of that next plan year and no later

than the deadline for contributions for that

next plan year). A redesignation of a contribution for a plan year to the next plan

year is available only if the original designation was made on a Schedule SB filed

on or before October 15, 2021. Plan sponsors should note that the redesignation of

a contribution to the next plan year will

have an impact on the asset value for various purposes, including the determination

of variable-rate premiums payable to the

Pension Benefit Guaranty Corporation.

For example, assume that for a calendar year plan, a plan sponsor elects to

apply the 15-year amortization schedule

under § 430(c)(8) of the Code for shortfall

amortization bases for the 2019 plan year,

which lowers the plan’s minimum required contribution for 2019 and increases the amount of excess contributions for

that plan year. Assume that, for the 2020

plan year, the plan’s prior plan year funding ratio is below the threshold for use of

August 16, 2021

the prefunding balance or funding standard carryover balance for the 2020 plan

year under § 430(f)(3)(C). In that case,

although the plan sponsor could elect to

add the additional excess contributions to

the prefunding balance, the plan sponsor

would then not be able to use that addition

to the prefunding balance toward the 2020

minimum required contribution. Instead,

the plan sponsor may elect to redesignate

the excess contributions made in 2020 that

were originally designated for the 2019

plan year as contributions for the 2020

plan year.

VI. Changes in AFTAP under § 436 of

the Code as a Result of the ARP

The regulations under § 436 of the

Code address the calculation of a plan’s

AFTAP. Section 1.436-1(h)(4)(iii) provides rules relating to changes in a plan’s

AFTAP after it has been certified, and the

effect of such a change depends on whether the change is material (within the meaning of § 1.436-1(h)(4)(iii)(B)) or immaterial (within the meaning of § 1.436-1(h)

(4)(iii)(C)). In general, a material change

in AFTAP is defined as a change under

which plan operations would have been

different based on the subsequent AFTAP

determination, and an immaterial change

in AFTAP is defined as a change that is

not a material change. Under § 1.436-1(h)

(4)(iv)(A), a material change in a plan’s

AFTAP will cause a plan to fail to comply

with § 401(a).

Section 1.436-1(h)(4)(iii)(C) provides

a special rule that, subject to certain

conditions, deems a change in a plan’s

AFTAP to be immaterial (even if the

change would otherwise be material) if

the change results from an event specified in § 1.436‑1(h)(4)(iii)(C)(1) through

(8). Deemed immaterial treatment under

§ 1.436-1(h)(4)(iii)(C) with respect to an

event that results in a change in AFTAP

is conditioned on the AFTAP being recertified as soon as reasonably practicable

after the event. The effect of this deemed

immaterial treatment is that the change in

the plan’s AFTAP will not cause the plan

to fail to comply with § 401(a) merely because of the change, provided that the plan

administrator reflects the new AFTAP in

plan operations on a prospective basis

beginning with the date of the event. Sec-

310

tion 1.436-1(h)(4)(iii)(C)(9) permits the

expansion of the list of events for which

a resulting change in AFTAP may be

deemed immaterial through publication of

guidance in the Internal Revenue Bulletin.

A. Prospective application of change in

benefit restrictions reflecting amendments

made by the ARP

If the plan’s AFTAP has been certified for a plan year, then any subsequent

change to that AFTAP (including a change

that results from the changes in the minimum funding requirements made by the

ARP and any related elections made as

described in this notice) is subject to the

rules regarding a change in AFTAP set

forth in § 1.436-1(h)(4)(iii) and (iv).

A change in a plan’s AFTAP is treated

as a deemed immaterial change if (1) the

plan’s AFTAP has been certified for a plan

year beginning in 2020 or 2021 based on

the minimum funding requirements not

reflecting the amendments made by the

ARP, (2) subsequently, but no later than

December 31, 2021, a revised certification

of the AFTAP for that plan year is made

taking into account those changes to the

minimum funding requirements and any

related elections made as described in this

notice, and (3) the plan sponsor does not

elect to apply the change in AFTAP retroactively as described in section VI.B

of this notice. The event that gives rise to

this deemed immaterial change is the revised AFTAP certification. Accordingly,

the plan must be operated in accordance

with the revised AFTAP certification on a

prospective basis.

B. Retroactive application of change in

benefit restrictions reflecting changes

under the ARP

A change in a plan’s AFTAP is also

treated as a deemed immaterial change

if (1) the plan’s AFTAP has been certified for a plan year beginning in 2020 or

2021 based on the minimum funding requirements not reflecting the amendments

made by the ARP, (2) subsequently, but no

later than December 31, 2021, a revised

certification of the AFTAP for that plan

year is made taking into account those

changes to the minimum funding requirements and any related elections made as

Bulletin No. 2021–33

described in this notice, and (3) the plan

sponsor elects to apply the AFTAP determined taking into account those amendments and elections retroactively. In that

case, the operations of the plan must be

conformed to that updated AFTAP for

the period beginning when the AFTAP

for the plan year was originally certified.

For example, if the amendments made

by the ARP were applied for purposes of

determining the AFTAP for the plan year

beginning in 2020, then operations of the

plan for the 2021 plan year must be conformed to apply the rules of § 1.436-1(g)

and (h) using the redetermined 2020 AFTAP as the AFTAP for the preceding plan

year prior to the date of certification of the

AFTAP for the 2021 plan year.

C. Rules with respect to elections under

§ 3608(b) of the CARES Act

If an election under § 3608(b) of the

CARES Act applies for a plan year beginning in 2020, then any application of

the changes in the minimum funding rules

made by the ARP for that plan year will

not affect the application of § 436 of the

Code for that plan year. However, if the

changes made by the ARP apply for purposes of determining the AFTAP for the

plan year beginning in 2020, then pursuant to Q&A-18 of Notice 2020-61, those

changes will affect the presumed AFTAP

that applies for the plan year that follows

the last plan year for which an election

under § 3608(b) of the CARES Act was

made. In that case, the plan sponsor may

apply the rules of either paragraph A or B

of this section VI with respect to the redetermined AFTAP for the plan year beginning in 2020 that applies for a portion of

the next plan year.

If an election under § 3608(b) of the

CARES Act applies for a plan year beginning in 2020 and the plan sponsor does not

elect to apply the pre-ARP segment rates

for that plan year (including for purposes of § 436 of the Code), then the plan

sponsor may no longer wish to retain the

election under § 3608(b) of the CARES

Act for that plan year. Pursuant to Q&A16 of Notice 2020-61, the election under

§ 3608(b) may be revoked. Notwithstanding Q&A‑16 of Notice 2020-61, the new

AFTAP arising from the revocation of the

election under § 3608(b) of the CARES

Bulletin No. 2021–33

Act and the application of the amendments made by the ARP will be eligible to

be treated as a deemed immaterial change

pursuant to paragraph A or B of this section VI.

D. Recharacterization of contributions

made to avoid benefit limitations

pursuant to § 436 of the Code

Pursuant to this notice, a contribution

that was designated pursuant to §1.436(f)1(f)(2)(ii)(B) as a contribution made to

terminate or avoid the application of a

§ 436 limitation for a plan year beginning

in 2020 or 2021 may be redesignated as

an employer contribution that is taken

into account under § 430 to the extent that

contribution is not needed to terminate or

avoid the application of that benefit restriction as a result of the application of

the amendments made by the ARP.

E. Corrections

Once a plan’s AFTAP for a plan year

has been certified taking into account the

amendments made by the ARP, the plan

administrator must take any corrective

actions necessary to conform plan operations to this certified AFTAP, if applying

this certified AFTAP would have changed

the application of the § 436 restrictions for

the period (1) beginning with the date of

the immaterial event described in section

VI.A of this notice (if the AFTAP certification applying the ARP segment rates

applies prospectively under section VI.A

of this notice) or (2) beginning with the

date the AFTAP for the year was first certified, as applicable (if the AFTAP certification applying the ARP segment rates

applies retroactively under section VI.B

of this notice). If the AFTAP for a plan

year beginning in 2020 has been changed,

the period for potential correction also

includes the period during the 2021 plan

year before the AFTAP for that plan year

beginning in 2021 was originally certified.

If the corrective actions described in

this section VI.E are taken to reflect the

application of the new certified AFTAP,

then the plan’s operations are treated as

having been consistent with the provisions of the plan document relative to the

requirements of § 436. For this purpose,

the provisions of the Employee Plans

311

Compliance Resolution System (EPCRS)

apply, as set forth in Rev. Proc. 2021-30,

2021-31 I.R.B. 172, except that a plan is

eligible for self-correction under sections

7, 8, and 9 of Rev. Proc. 2021-30 without

regard to the requirements of sections 4.03

(requiring a favorable IRS determination

letter) and 4.04 (requiring certain established practices and procedures) of that

revenue procedure.

Consistent with § 1.436-1(a)(4)(iii),

if unpredictable contingent event benefits due to an event occurring during a

plan year beginning in 2020 are not permitted to be paid because of restrictions

under § 436(b), but are later permitted to

be paid as a result of a new certification

of the AFTAP for the plan year reflecting

the amendments made by the ARP, then

those unpredictable contingent event benefits must become payable, retroactive to

the period those benefits would have been

payable under the terms of the plan (other

than plan terms implementing the requirements of § 436(b)).

Consistent with § 1.436-1(a)(4)(iv), if

a plan amendment with an effective date

during a plan year beginning in 2020 does

not take effect because of the limitations

of § 436(c), but is later permitted to take

effect as a result of a new certification of

the AFTAP for the plan year reflecting the

amendments made by the ARP, then the

plan amendment must automatically take

effect as of the first day of that plan year

(or, if later, the original effective date of

the amendment).

For any prohibited payment that was

not permitted to be paid during a plan year

beginning in 2020 because of the restrictions under § 436(d), but is permitted to be

paid as a result of a new certification of the

AFTAP reflecting the amendments made

by the ARP, the plan has taken adequate

corrective action if it makes the prohibited

payment available to participants or beneficiaries who would have been eligible

for the prohibited payment (including a

prohibited payment that is available on a

restricted basis under § 436(d)(3)) on or

after the dates described in the first paragraph of this section VI.E.

For any accruals that were not permitted during a plan year beginning in 2020

because of restrictions under § 436(c), but

are permitted as a result of a new certification of the AFTAP reflecting the amend-

August 16, 2021

ments made by the ARP, the plan has taken adequate corrective action if it restores

benefits that accrue during the period that

begins on the date described in the first

paragraph of this section VI.E.

In the case of a participant or beneficiary who, as a result of any of the changes described in this section VI is entitled

to increased benefits, to benefits payable

at a special early retirement date, or to

benefits payable in a different form of

payment (and who elects such different

form of payment, with spousal consent,

if applicable), the corrective action is to

provide the benefit payments in the increased amount or other form of payment

commencing with a new prospective annuity starting date. However, if payments

have already commenced, the corrective

action is to provide the participant or

beneficiary with (1) future benefit payments that are paid in the same manner

and amount as if the participant or beneficiary had begun receiving the corrected

payment at the time payments originally

commenced, and (2) a make-up payment

for past underpayments. The make-up

payment for past underpayments (1)

is equal to the aggregate difference between the past payments actually received and the amounts that would have

been received by the participant or beneficiary had the benefit commenced in the

correct form of payment at the original

commencement date, plus interest to the

date of the correction (in accordance with

EPCRS), and (2) may be paid as either (i)

a single-sum payment, or (ii) an actuarially equivalent increase in the amount of

future benefit payments.

VII. Limitations on Actions Described

in this Notice

Any action described in this notice is

not permitted to the extent it would result

in the imposition of benefit restrictions

under § 436 of the Code that would otherwise not be imposed. For example, for

a plan year beginning in 2020, any reduction election that was made to avoid or

remove benefit restrictions under § 436

during the period before the date of the

original AFTAP certification for that plan

year may not be revoked. This is because

the AFTAP based on the elections under

the ARP will not apply to that portion of

August 16, 2021

the plan year and therefore the revocation

of any reduction election that was made to

avoid or remove benefit restrictions under

§ 436 during that period would result in

the imposition of new restrictions. Similarly, for a plan year beginning in 2021, no

change is permitted with respect to § 436

contributions that were made in connection with a presumed AFTAP before the

AFTAP was certified for the plan year.

As another example, assume that a plan

has excess contributions for the 2020 plan

year due to a reduction of the minimum

required contribution for the 2019 plan

year. If adding these excess contributions

to the prefunding balance as described in

section V.A of this notice would cause the

AFTAP to fall below 80 percent, then the

contributions may not be added to the prefunding balance to the extent that addition

results in imposition of benefit restrictions

under § 436.

VIII. Reporting Requirements for

Changes for the 2019 Plan Year

A. Revised minimum required

contributions, excess contributions,

unpaid minimum required contributions,

and redesignated contributions

The amendments made by the ARP

may affect the plan’s minimum required

contribution for the plan year beginning

in 2019 if the election to use the 15-year

amortization is made for that plan year.

If that election is made for the 2019 plan

year, and it changes the minimum required

contribution already reported on a 2019

Schedule SB, then the 2020 Schedule SB

should reflect the revised minimum required contribution for the 2019 plan year.

For example:

The reporting of excess contributions

for the 2019 plan year on line 11a and

11b of the Schedule SB for the 2020

plan year should reflect the revised

minimum required contribution, even

if those excess contributions are different than the amounts reported on Lines

38a and 38b of the Schedule SB filed

for the 2019 plan year.

The reporting of the unpaid minimum

required contribution for all prior plan

years on line 28 of the Schedule SB

for the 2020 plan year should reflect

the revised unpaid minimum required

312

contribution for the 2019 plan year,

even if the unpaid minimum required

contribution for all prior plan years is

different than the amount reported on

Line 40 of the Schedule SB for that

plan year.

Alternatively, an amended Form 5500,

Form 5500-SF, or Form 5500-EZ, for the

2019 plan year, with a revised Schedule

SB, may be filed.

If any contributions originally designated as applying for the 2019 or 2020

plan years are redesignated as for a different year, an amended Form 5500, Form

5500-SF or Form 5500-EZ with an amended Schedule SB must be filed for both the

plan year for which the contributions are

redesignated, and the year for which the

contributions were originally designated.

B. Changes in elections to use a

prefunding balance or funding standard

carryover balance

If, as described in section V.B of this

notice, a plan sponsor makes an election

to revoke some or all of an earlier election

to use the prefunding balance or funding

standard carryover balance to offset a

minimum required contribution for the

2019 plan year, then the reporting of the

amount of the prefunding balance or funding standard carryover balance used for

the 2019 plan year entered on line 8 of the

Schedule SB for the 2020 plan year should

take into account the revocation, even if

the amount of the prefunding balance or

funding standard carryover balance used

to offset the minimum required contribution for the 2019 plan year is different

than the amount entered on line 35 of the

Schedule SB for that plan year.

C. Reporting changes in excise tax on

unpaid minimum required contributions

If a plan sponsor reported an unpaid

minimum required contribution on a

Schedule SB, the plan sponsor filed a

Form 5330 to report and pay the excise

tax under § 4971 of the Code, and the

unpaid minimum required contribution

is subsequently reduced or eliminated as

described in section VIII.A of this notice,

then the plan sponsor may file an amended

Form 5330 to obtain a refund of the overpayment of the excise tax.

Bulletin No. 2021–33

If a plan sponsor expects that an unpaid

minimum required contribution shown on

the Schedule SB for the 2019 plan year

will be eliminated by the amendments

made by the ARP, Form 5330 should not

be filed. However, when a Schedule SB

showing an unpaid minimum required

contribution is filed, and the plan sponsor

does not timely file a Form 5330 to pay the

associated excise tax under § 4971 of the

Code, the Internal Revenue Service (IRS)

normally will send a notice that informs

the plan sponsor that the Form 5330 and

the excise tax are due. In this case, the

plan sponsor should respond to the notice,

advising the IRS that the reported unpaid

minimum required contribution will be

eliminated by the amendments made by

the ARP and providing supporting evidence thereof.

If the plan sponsor expects to have an

unpaid minimum required contribution for

the plan year once the amendments made

by the ARP are reflected but did not file

a Form 5330 when due, the plan sponsor

should file a Form 5330 reflecting the corrected unpaid minimum required contribution and pay the excise tax under § 4971

of the Code as soon as possible in order to

minimize interest and penalty charges.

quired contribution for the 2020 plan year

should be reflected in the Schedule SB for

the 2020 plan year.

The IRS expects that most Schedules

SB for the 2020 plan year will not have

been filed before the issuance of this notice, but some Schedules SB may have

been filed. If a Schedule SB has been filed

for the 2020 plan year that is inconsistent

with the guidance in this notice (or if the

plan sponsor makes an election pursuant

to this notice that affects information reported on the Schedule SB for the 2020

plan year and that was not reflected on

the filed Schedule SB), an amended Form

5500, Form 5500-SF, or Form 5500-EZ,

for the 2020 plan year, with a revised

Schedule SB, may be filed. If the Schedule

SB that has been filed for the 2020 plan

year has become inaccurate on account

of the amendments made by the ARP, the

guidance provided in this notice, or any

elections made pursuant to this notice,

then the rules of section VIII of this notice

should be applied for purposes of completing the Schedule SB for the 2021 plan

year, but substituting 2020 for 2019 and

2021 for 2020.

IX. Reporting Requirements for

Changes for the 2020 Plan Year

The collections of information contained in this notice have been reviewed

and approved by the Office of Management and Budget in accordance with the

Paperwork Reduction Act (44 U.S.C.

§ 3507) under control number 1545-2095.

An agency may not conduct or sponsor,

and a person is not required to respond

The amendments made by the ARP for

the 2020 plan year may affect the plan’s

minimum required contribution for the

2020 plan year, and any elections made

under the ARP that affect the minimum re-

Bulletin No. 2021–33

X. Paperwork Reduction Act

313

to, a collection of information unless the

collection of information displays a valid

OMB control number.

The collections of information in this

notice are in section IV of this notice. The

collections of information are required

to implement the application of §§ 9705

and 9706 of the ARP. The collections

of information are mandatory for those

plan sponsors making an election under

§§ 9705 and 9706 of the ARP.

The likely respondents are sponsors of

single-employer defined benefit plans.

Any potential changes on burden will

be reported through the renewal of the

current OMB approval numbers.

Estimates of the annualized cost to respondents are not available at this time.

Books or records relating to a collection of information must be retained as

long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and tax

return information are confidential, as required by § 6103 of the Code.

XI. Drafting Information

The principal author of this notice is

Tom Morgan of the Office of the Associate Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment

Taxes). However, other personnel from

the IRS participated in the development

of this guidance. For further information

regarding this notice, contact Mr. Morgan

or Linda Marshall at 202-317-6700 (not a

toll-free number).

August 16, 2021

Part IV

U.S.-U.K. Competent Authority Arrangement

Announcement 2021-13

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

and the United Kingdom under paragraph 3 of Article 26 (Mutual Agreement Procedure) in which it is agreed that references to the

term “North American Free Trade Agreement” in paragraph 7 of Article 23 (Limitation on Benefits) of the Convention between the

United States of America and the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and

Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital Gains signed at London on July 24, 2001, as amended

by the Protocol signed on July 19, 2002, shall be understood as references to the term “United States-Mexico-Canada Agreement”

(“USMCA”) upon entry into force of the USMCA.

The text of the Competent Authority Arrangement is as follows:

COMPETENT AUTHORITY ARRANGEMENT

The competent authorities of the United Kingdom and the United States enter into this arrangement (the “Arrangement”) regarding

the interpretation of the term “North American Free Trade Agreement” referred to in subparagraph d) of paragraph 7 of Article 23

(Limitation on Benefits) of the Convention between the United States of America and the United Kingdom of Great Britain and

Northern Ireland for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and on

Capital Gains signed at London on July 24, 2001, as amended by the Protocol signed on July 19, 2002 (the “Treaty”).

Pursuant to paragraph 1 of the Protocol Replacing the North American Free Trade Agreement with the Agreement between the United States of America, the United Mexican States, and Canada, done at Buenos Aires on November 30, 2018 (the “Agreement”), as

amended by the Protocol of Amendment to that Agreement, done at Mexico City on December 10, 2019 (the “Protocol of Amendment” and collectively with the Agreement, the “USMCA”), the USMCA will supersede the North American Free Trade Agreement

(the “NAFTA”). The USMCA modernizes NAFTA, is entered into by the same parties, and governs the standards for trade and

investment among the parties going forward.

Pursuant to paragraph 3 of Article 26 (Mutual Agreement Procedure) of the Treaty, the competent authorities of the United Kingdom

and the United States agree that the references to the NAFTA in subparagraph d) of paragraph 7 of Article 23 of the Treaty shall be

understood as references to the USMCA upon entry into force of the USMCA.

Agreed to by the undersigned competent authorities:

/s/ Nikole C. Flax

U.S. Competent Authority

Nikole C. Flax

Internal Revenue Service

/s/ Daniel Berry

U.K. Competent Authority

Daniel Berry

HM Revenue and Customs

Date: July 26, 2021

Date: July 21, 2021

August 16, 2021

314

Bulletin No. 2021–33

U.S.-U.K. Competent Authority Arrangement

Announcement 2021-14

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

and the United Kingdom under paragraph 3 of Article 26 (Mutual Agreement Procedure) regarding the eligibility of U.K. residents

to qualify as equivalent beneficiaries for purposes of applying the derivative benefits test in paragraph 3 of Article 23 (Limitation on

Benefits) of the Convention Between the United States of America and the United Kingdom of Great Britain and Northern Ireland for

the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital Gains signed at

London on July 24, 2001, as amended by the Protocol signed on July 19, 2002.

The text of the Competent Authority Arrangement is as follows:

COMPETENT AUTHORITY ARRANGEMENT

The competent authorities of the United States and the United Kingdom enter into this arrangement (the “Arrangement”) under the

Convention between the United States of America and the United Kingdom of Great Britain and Northern Ireland for the Avoidance

of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital Gains signed at London on

July 24, 2001, as amended by the Protocol signed on July 19, 2002 (the “Treaty”). The Arrangement is entered into under paragraph

3 of Article 26 (Mutual Agreement Procedure) of the Treaty.

It has come to the attention of the competent authorities that the withdrawal of the United Kingdom from the European Union has

created uncertainty as to whether a person resident in the United Kingdom may continue to be considered a “resident of a Member

State of the European Community” for the purposes of applying the so-called “derivative benefits test” in paragraph 3 of Article 23

(Limitation on benefits) of the Treaty, including the term “equivalent beneficiary,” as defined in subparagraph (d) of paragraph 7 of

Article 23.

Paragraph 7(d) of Article 23 states in relevant part that “an equivalent beneficiary is a resident of a Member State of the European

Community . . .” provided that such resident satisfies certain tests in Article 23.

The competent authorities agree that, for the purposes of applying paragraph 7(d) of Article 23, a “resident of a Member State of the

European Community” continues to include a resident of the United Kingdom. This interpretation reflects the shared understanding

of the competent authorities that residents of either Contracting State should be eligible to qualify as equivalent beneficiaries for

purposes of applying the derivative benefits test in paragraph 3 of Article 23.

Agreed to by the undersigned competent authorities:

/s/ Nikole C. Flax

U.S. Competent Authority

Nikole C. Flax

Internal Revenue Service

/s/ Daniel Berry

U.K. Competent Authority

Daniel Berry

HM Revenue and Customs

Date: July 26, 2021

Date: July 21, 2021

Bulletin No. 2021–33

315

August 16, 2021

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

­effect:

Amplified describes a situation where

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

being extended to apply to a variation of

the fact situation set forth therein. Thus, if

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

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

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

caused, or may cause, some confusion. It

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

Distinguished describes a situation

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

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

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

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

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

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

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

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

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

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

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

Suspended is used in rare situations to

show that the previous published rulings

will not be applied pending some future

action such as the issuance of new or

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

Abbreviations

The following abbreviations in current use

and formerly used will appear in material

published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2021–33

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.

August 16, 2021

Numerical Finding List1

Bulletin 2021–33

Announcements:

2021-12, 2021-31 I.R.B. 267

2021-13, 2021-33 I.R.B. 314

2021-14, 2021-33 I.R.B. 315

Notices:

2021-39, 2021-27 I.R.B. 3

2021-40, 2021-28 I.R.B. 15

2021-41, 2021-29 I.R.B. 17

2021-42, 2021-29 I.R.B. 19

2021-38, 2021-30 I.R.B. 155

2021-44, 2021-31 I.R.B. 166

2021-45, 2021-31 I.R.B. 170

2021-47, 2021-32 I.R.B. 269

2021-46, 2021-33 I.R.B. 303

2021-48, 2021-33 I.R.B. 305

Proposed Regulations:

REG-107705-21, 2021-30 I.R.B. 162

REG-102951-16, 2021-32 I.R.B. 272

Revenue Procedures:

2021-28, 2021-27 I.R.B. 5

2021-29, 2021-27 I.R.B. 12

2021-24, 2021-29 I.R.B. 19

2021-14, 2021-30 I.R.B. 158

2021-30, 2021-31 I.R.B. 172

Revenue Rulings:

2021-12, 2021-27 I.R.B. 1

2021-13, 2021-30 I.R.B. 152

2021-14, 2021-31 I.R.B. 164

Treasury Decisions:

9951, 2021-30 I.R.B. 25

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

2021–52, dated December 27, 2021.

1

August 16, 2021

ii

Bulletin No. 2021–33

Finding List of Current Actions on

Previously Published Items1

Bulletin 2021–33

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

2021–52, dated December 27, 2021.

1

Bulletin No. 2021–33

iii

August 16, 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.