# Bulletin No. 2023–52

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## Record

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

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2023–52
December 26, 2023

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. 2023-39, page 1590.

Notice 2023-80, page 1583.

This revenue procedure provides specifications for the private printing of red-ink and black-and-white substitutes for
the August 2023 revisions of Forms W-2c and W-3c. This
revenue procedure will be produced as the next revision of
Publication 1223. Rev. Proc. 2016-20, 2016-13 IRB dated
March 28, 2016, is superseded.

EMPLOYEE PLANS
Notice 2023-79, page 1581.

This notice announces that Treasury and the IRS intend to
issue proposed regulations to address the application of the
foreign tax credit and related rules and the dual consolidated
loss (DCL) rules to certain types of taxes described in the
GloBE Model Rules. This notice also extends and modifies
the temporary relief described in Notice 2023-55 for determining whether a foreign tax is eligible for a foreign tax credit
under §§ 901 and 903.

REG-132569-17, page 1616.

This notice sets forth the 2023 Required Amendments List
(2023 RA List). The 2023 RA List applies to both individually designed plans qualified under section 401(a) of
the Internal Revenue Code (qualified individually designed
plans) and individually designed plans that satisfy the
requirements of section 403(b) (section 403(b) individually
designed plans).

This document contains proposed regulations that would
amend the regulations relating to the energy credit for the
taxable year in which eligible energy property is placed in
service. This document also withdraws and reproposes, for
additional clarity, portions of previously proposed regulations
regarding the increased energy credit amount available if prevailing wage and registered apprenticeship requirements are
met.

EXEMPT ORGANIZATIONS

Rev. Proc. 2023-41, page 1607.

Announcement 2023-35, page 1615.

Revocation of IRC 501(c)(3) Organizations for failure to meet
the code section requirements. Contributions made to the
organizations by individual donors are no longer deductible
under IRC 170(c).

Finding Lists begin on page ii.

The revenue procedure sets forth the unpaid loss discount
factors for the 2023 accident year for purposes of section
846 of the Internal Revenue Code. The revenue procedure
also prescribes the salvage discount factors for the 2023
accident year, which must be used to compute discounted
estimated salvage recoverable under section 832 of the
Internal Revenue Code.

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.

December 26, 2023 

Bulletin No. 2023–52

Part III
2023 Required
Amendments List
for Individually
Designed Qualified and
Section 403(b) Plans
Notice 2023-79
I. PURPOSE
This notice sets forth the 2023 Required
Amendments List (2023 RA List). The
Required Amendments List (RA List)
applies to both individually designed
plans qualified under section 401(a) of
the Internal Revenue Code (Code) (qualified individually designed plans) and
individually designed plans that satisfy
the requirements of section 403(b) (section 403(b) individually designed plans).
Pursuant to sections 5.03(1)(c) and
6.01 of Rev. Proc. 2022-40, 2022-47 IRB
487, December 31, 2025, generally is
both the last day of the remedial amendment period and the plan amendment
deadline with respect to (1) a disqualifying provision arising as a result of a
change in qualification requirements that
appears on the 2023 RA List, and (2) a
form defect arising as a result of a change
in section 403(b) requirements that
appears on the 2023 RA List. Later dates
may apply to a governmental plan within
the meaning of section 414(d) pursuant
to section 5.03(2)(c) of Rev. Proc. 202240. References to qualification requirements and to section 403(b) requirements
in Parts III and IV of this notice are
referred to, separately and collectively,
as “requirements.”1
II. BACKGROUND
Section 401(b) of the Code provides
a remedial amendment period during
which a plan may be amended retroactively to comply with the qualification

requirements under section 401(a). Treas.
Reg. § 1.401(b)-1 describes the disqualifying provisions that may be amended
retroactively and the remedial amendment
period during which retroactive amendments may be adopted. That regulation
also grants the Commissioner of Internal
Revenue the discretion to designate certain plan provisions as disqualifying
provisions and to extend the remedial
amendment period in guidance published
in the Internal Revenue Bulletin (IRB).
Section 5 of Rev. Proc. 2019-39,
2019-42 IRB 945, as modified by section
III.B.2(e) of Notice 2020-35, 2020-25
IRB 948, establishes a system of recurring remedial amendment periods for
section 403(b) individually designed plan
form defects first occurring after June 30,
2020.
Section 5.03(1)(c) of Rev. Proc. 202240 provides generally that, except as otherwise provided by statute or in regulations
or other guidance published in the IRB, in
the case of an individually designed qualified or section 403(b) plan that is not a
governmental plan within the meaning of
section 414(d), the remedial amendment
period for (1) a disqualifying provision or
(2) a form defect first occurring after June
30, 2020, that arises as a result of a change
in qualification requirements or section 403(b) requirements, as applicable,
expires on the last day of the second calendar year that begins after the issuance of
the RA List on which the change in qualification requirements or section 403(b)
requirements appears. Section 5.03(2)(c)
provides a special rule for governmental
plans that may further extend the remedial
amendment period in some cases.
Section 6.01 of Rev. Proc. 2022-40 provides that the plan amendment deadline
with respect to (1) a disqualifying provision in a qualified individually designed
plan, or (2) a form defect first occurring
after June 30, 2020, in a section 403(b)
individually designed plan is the date on
which the remedial amendment period

expires in accordance with section 5 of
Rev. Proc. 2022-40 with respect to that
disqualifying provision or form defect.
Section 7 of Rev. Proc. 2022-40 provides that the Department of the Treasury
(Treasury Department) and the IRS publish an annual RA List. In general, a change
in qualification requirements or section
403(b) requirements will not appear on
an RA List until guidance with respect to
that change (including, any model amendment, if applicable) has been provided in
regulations or in other guidance published
in the IRB. However, in the discretion
of the Treasury Department and the IRS,
a change in qualification requirements
or section 403(b) requirements may be
included on an RA List in other circumstances, such as in cases in which a statutory change is enacted and the Treasury
Department and the IRS anticipate that no
guidance will be issued.
The remedial amendment period
applicable to a disqualifying provision
or form defect arising as a result of a
change in qualification requirements
or section 403(b) requirements may be
extended beyond the date that normally
would apply to an item included on an
RA List, if, for example, a statute, regulation, or other guidance published in the
IRB provides for a later deadline. Section
501 of the SECURE 2.0 Act2 provides, in
general, that a retirement plan or annuity
contract will be treated as being operated
in accordance with the terms of the plan
during a specified period and, except
as provided by the Secretary of the
Treasury (or the Secretary’s delegate),
a retirement plan will not fail to satisfy
the anti-cutback requirements of section
411(d)(6) of the Code or section 204(g)
of the Employee Retirement Income
Security Act of 1974, Pub. L. 93-406,
88 Stat. 829, as amended (ERISA), by
reason of a plan amendment made pursuant to any amendment made by the
SECURE 2.0 Act or pursuant to any
regulation issued by the Secretary of the

In order to help plan sponsors achieve operational compliance with changes in requirements, the IRS provides the Operational Compliance List, which is a list of changes in both qualification
requirements and section 403(b) requirements that are effective during a calendar year, on the IRS website at https://www.irs.gov/retirement-plans/operational-compliance-list. See generally
section 8 of Rev. Proc. 2022-40.
2
Division T of the Consolidated Appropriations Act, 2023, Pub. L. 117-328, 136 Stat. 4459 (2022), known as the SECURE 2.0 Act of 2022 (SECURE 2.0 Act).
1

Bulletin No. 2023–52

1581

December 26, 2023

Treasury or the Secretary of Labor (or a
delegate of either such Secretary) under
the SECURE 2.0 Act, provided that:
(1) the amendment is adopted no later
than the last day of the first plan year
beginning on or after January 1, 2025, or,
for an applicable collectively bargained
plan (a plan maintained pursuant to one
or more collective bargaining agreements
between employee representatives and
one or more employers ratified before
December 29, 2022), or for a governmental plan (within the meaning of section 414(d) of the Code), the last day of
the first plan year beginning on or after
January 1, 2027, or such later date as the
Secretary may prescribe (the section 501
date);
(2) the amendment applies retroactively to the effective date of the SECURE
2.0 Act provision or the regulations thereunder (or, in the case of an amendment not
required by a provision of the SECURE
2.0 Act or the regulations thereunder, the
effective date specified by the plan); and
(3) the plan or contract is operated as
if the amendment were in effect during
the period beginning on the effective date
of the SECURE 2.0 Act provision or the
regulations thereunder (or, in the case of
an amendment not required by a provision
of the SECURE 2.0 Act or the regulations
thereunder, the effective date specified by
the plan or contract) and ending on the
section 501 date or, if earlier, the date the
amendment is adopted.
Section 501(c) of the SECURE 2.0 Act
modifies section 601(b)(1) of the Setting
Every Community Up for Retirement
Enhancement Act of 2019 (SECURE
Act),3 sections 2202(c)(2)(A) and 2203(c)
(2)(B)(i) of the Coronavirus Aid, Relief,
and Economic Security Act, and section
302(d)(2)(A) of Title III of the Taxpayer
Certainty and Disaster Tax Relief Act of
20204 to extend plan amendment deadlines with respect to these sections to coordinate with the plan amendment deadlines
under section 501 of the SECURE 2.0 Act,
as applicable.5

III. CONTENT AND
ORGANIZATION OF RA LIST
In general, an RA List includes statutory and administrative changes in requirements that are first effective during the
plan year in which the list is published.6
However, an RA List does not include:
• Guidance issued or legislation enacted
after the list has been prepared;
• Statutory changes in requirements
for which the Treasury Department
and the IRS expect to issue guidance
that would be included on an RA List
issued in a future year;
• Changes in requirements that permit
(but do not require) optional plan
provisions, in contrast to changes
in requirements that cause existing
plan provisions (which may include
optional plan provisions previously
adopted) to become disqualifying
provisions or section 403(b) form
defects;7 or
• Changes in the tax laws affecting qualified individually designed
plans or section 403(b) individually
designed plans that do not change the
requirements (such as changes to the
tax treatment of plan distributions, or
changes to the funding requirements
for qualified individually designed
plans).
The RA List is divided into two parts.
Part A covers changes in requirements that
generally would require an amendment to
most plans or to most plans of the type
affected by the change.
Part B includes changes in requirements
that the Treasury Department and the IRS
anticipate will not require amendments to
most plans but might require an amendment because of an unusual plan provision in a particular plan. For example, if a
change affects a particular requirement that
most plans incorporate by reference, Part B
would include that change because a particular plan might not incorporate the requirement by reference and, thus, might include
language inconsistent with the change.

Annual, monthly, or other periodic
changes to (1) the various dollar limits that are adjusted for cost of living
increases as provided in section 415(d)
or other Code provisions, (2) the spot
segment rates used to determine the
applicable interest rate under section 417(e)(3), and (3) the applicable
mortality table under section 417(e)
(3), are treated as included on the RA
List for the year in which such changes
are effective even though they are not
directly referenced on that RA List. The
Treasury Department and the IRS anticipate that few plans have language that
will need to be amended on account of
these changes.
The fact that a change in a requirement
is included on the RA List does not necessarily mean that a plan must be amended
as a result of that change. Each plan sponsor must determine whether a particular change in a requirement requires an
amendment to its plan.
IV. 2023 REQUIRED AMENDMENTS
LIST
Part A. Changes in requirements that generally would require an amendment to most plans or to most
plans of the type affected by the
change.
• None
Part B. Other changes in requirements
that may require an amendment.
• None
V. DRAFTING INFORMATION
The principal author of this notice
is Tom Morgan of the Office of
Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and
Employment Taxes). For further information regarding this notice, contact
Mr. Morgan at (202) 317-6700 (not a
toll-free number).

Division O of the Further Consolidated Appropriations Act, 2020, Pub. L. 116-94, 133 Stat. 2534 (2019).
Division EE of the Consolidated Appropriations Act, 2021, Pub. L. 116-260, 134 Stat. 1182 (2020).
5
Section G of Notice 2020-68, 2020-38 IRB 567, extended the deadline to amend a plan to reflect section 104 of Division M of the Further Consolidated Appropriations Act, known as the
Bipartisan American Miners Act of 2019, to coordinate with the plan amendment deadlines provided in section 601 of the SECURE Act.
6
RA Lists also may include changes in requirements that were first effective in a prior year that were not included on a prior RA List under certain circumstances, such as changes in requirements that were issued or enacted after the prior year’s RA List was prepared.
7
The remedial amendment period and plan amendment deadline for discretionary changes to the terms of an individually designed qualified or section 403(b) plan are governed by sections
5.03(1)(b), 5.03(2)(b), and 6.02 of Rev. Proc. 2022-40. These deadlines for discretionary changes are not affected by the inclusion of a change in requirements on an RA List.
3
4

December 26, 2023

1582

Bulletin No. 2023–52

Guidance Regarding the
Foreign Tax Credit and
Dual Consolidated Losses
in Relation to the GloBE
Model Rules, and Extension
and Modification of
Temporary Relief in Notice
2023-55
Notice 2023-80
SECTION 1. OVERVIEW
.01 Purpose.
This notice announces that the
Department of the Treasury (Treasury
Department) and the Internal Revenue
Service (IRS) intend to issue proposed
regulations under §§ 59(l), 78, 704, 901,
903, 951A, 954, 960, and 1503(d) of the
Internal Revenue Code (Code)1 to address
the application of those provisions, including the foreign tax credit rules and the dual
consolidated loss rules, to certain types of
taxes described in the “Tax Challenges
Arising from the Digitalisation of the
Economy - Global Anti-Base Erosion
Model Rules (Pillar Two)” (GloBE Model
Rules).2 The Treasury Department and the
IRS anticipate that the proposed regulations will be consistent with the guidance
provided in sections 2 and 3 of this notice.
This notice also extends the relief
period for the temporary relief described
in Notice 2023-55 in determining whether
a foreign tax is eligible for a foreign tax
credit under §§ 901 and 903. In addition,
this notice addresses the application of the
temporary relief with respect to partnerships and their partners.
.02 Overview of the GloBE Model
Rules.
The GloBE Model Rules create a
coordinated system of minimum taxation intended to ensure that Multinational
Enterprise Groups (MNE Groups) with
annual revenue of EUR 750 million or

more pay a minimum level of tax on the
income arising in each jurisdiction in
which they operate.3 Certain jurisdictions
have enacted, and others have proposed,
legislation to implement the GloBE Model
Rules for the IIR and Qualified Domestic
Minimum Top-up Tax (QDMTT), effective for Fiscal Years beginning on or after
December 31, 2023, and for the UTPR,
effective for Fiscal Years beginning on
or after December 31, 2024.4 This notice
does not provide guidance regarding the
UTPR, except as provided in sections
2.03 and 3.03 of this notice. The Treasury
Department and the IRS continue to analyze issues related to the UTPR and intend
to issue additional guidance.
Under the GloBE Model Rules, an
in-scope MNE Group must calculate its
Effective Tax Rate (ETR) for each jurisdiction in which it operates. The ETR
determination for a jurisdiction involves
calculating the Net GloBE Income in that
jurisdiction, based on the net income or
loss reflected on financial statements with
certain adjustments, and Adjusted Covered
Taxes, which is a measure of taxes paid
with respect to that income (including,
when computing the ETR for the IIR or
UTPR, cross-border taxes such as those
imposed on income of a controlled foreign corporation (CFC) or foreign branch
located in the jurisdiction). If the ETR for
a jurisdiction is below the 15% Minimum
Rate, Top-up Tax may be imposed and collected under the QDMTT, IIR, and UTPR.
The amount of Top-up Tax is determined
by multiplying the Top-up Tax Percentage
(the excess of 15% over the ETR in the
jurisdiction) by the Excess Profits (the
Net GloBE Income in such jurisdiction
that exceeds a Substance-based Income
Exclusion).
A jurisdiction that enacts a QDMTT
will collect tax with respect to low-taxed
income in that jurisdiction. Any Top-up
Tax not collected under a QDMTT may
be collected under the IIR or UTPR.
Jurisdictions enacting the QDMTT, IIR,
and UTPR into their domestic law may

separately enact each such tax or may
amend their existing corporate income
tax.
The GloBE Model Rules operate so
that taxes are imposed on Net GloBE
Income in the following order of priority:
(1) Covered Taxes (other than Controlled
Foreign Company Tax Regimes (CFC Tax
Regimes) and certain cross-border taxes);
(2) QDMTT; (3) CFC Tax Regimes and
certain other cross-border taxes; (4) IIR;
and (5) UTPR. Thus, for example, a
QDMTT is computed without regard to
taxes paid pursuant to a CFC Tax Regime.
SECTION 2. GLOBE MODEL RULES
AND THE FOREIGN TAX CREDIT
.01 Background.
Section 901 generally allows a credit
for the amount of any income, war profits, and excess profits taxes (collectively,
foreign income taxes) paid or accrued
during the taxable year to any foreign
country or to any territory of the United
States, and in the case of a domestic corporation, the taxes deemed to have been
paid under § 960. Section 903 provides
that foreign income taxes include a tax
paid in lieu of a generally-imposed foreign income tax.
This section 2 describes rules that
would address the treatment of certain taxes, including IIRs, UTPRs, and
QDMTTs, under §§ 59(l), 78, 275, 704,
901, 903, 951A, 954, and 960. For purposes of section 2 of this notice, the term
IIR, the term UTPR, and the term QDMTT
mean a tax imposed under a foreign tax
law5 that is consistent with the IIR, UTPR,
and QDMTT, respectively, described in
the GloBE Model Rules.
.02 Final Top-up Tax.
(1) In general. The Treasury
Department and the IRS intend to issue
proposed regulations consistent with the
guidance provided in this section 2.02,
which describes the treatment of final
top-up taxes under §§ 59(l), 78, 275, 704,
901, 903, 951A, 954, and 960.

Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).
Org. for Econ. Coop. & Dev. [OECD], Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) (Dec. 14, 2021), https://www.
oecd-ilibrary.org/taxation/tax-challenges-arising-from-digitalisation-of-the-economy-global-anti-base-erosion-model-rules-pillar-two_782bac33-en.
3
Capitalized terms used in this notice, but not defined herein, have the meanings ascribed to such terms under the GloBE Model Rules.
4
Under the European Union (EU) Directive requiring the adoption of the GloBE Model Rules, EU Member States will apply the UTPR for years beginning on or after December 31, 2023
but only in limited circumstances. See Council Directive 2022/2523, art. 50, 2022 OJ (L 328) 1, 55.
5
The term “foreign tax law” in this notice has the meaning in § 1.901-2(g)(4).
1
2

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December 26, 2023

(2) Definition of final top-up tax. A
foreign income tax (tested tax) is a final
top-up tax if, in computing the tested tax,
the foreign tax law takes into account: (a)
the amount of tax imposed on the direct or
indirect owners of the entity subject to the
tested tax by other countries (including the
United States) with respect to the income
subject to the tested tax, or (b) in the case
of an entity subject to the tested tax on
income attributable to its branch in the
foreign country imposing the tested tax,
the amount of tax imposed on the entity
by its country of residence with respect to
such income.
(3) Treatment of a final top-up tax
under §§ 901 and 59(l). No credit is
allowed under §§ 901 or 59(l) to a person
for a final top-up tax if, under the foreign
tax law, any amount of United States
federal income tax liability of the person
would be taken into account in computing the final top-up tax (without regard
to whether the person has any amount of
United States federal income tax liability
that, in fact, is taken into account in such
computation).
(4) Treatment of a final top-up tax paid
by a partnership or CFC. In general, a
final top-up tax is treated as if it were a
creditable tax at the partnership and CFC
level, with the disallowance of the credit
pursuant to section 2.02(3) of this notice
applying at the level of the partner or U.S.
shareholder, as applicable. This treatment
is intended to facilitate appropriate results
where a final top-up tax is creditable as
to one partner or U.S. shareholder of a
partnership or CFC, as applicable, but not
as to another. Further, a final top-up tax
is not taken into account in determining
whether the high-tax exception to foreign
base company income in § 1.954-1(d) or
the high-tax exclusion from tested income
in § 1.951A-2(c)(7) applies.
(a) Creditable foreign tax expenditure.
A final top-up tax is treated as a creditable
foreign tax expenditure under § 1.7041(b)(4)(viii)(b).
(b) Eligible current year tax. A final
top-up tax is treated as an eligible current
year tax under § 1.960-1(b)(5).
(c) Application of the high-tax exceptions under §§ 951A and 954(b)(4). In
computing the effective rate of foreign
income tax under § 1.954-1(d)(2) and
§ 1.951A-2(c)(7)(vi), a final top-up tax

December 26, 2023

is excluded from the amount of foreign
income taxes described in § 1.954-1(d)
(2)(i) and § 1.951A-2(c)(7)(vi)(A), and
increases the amount of the net item of
income described in § 1.951-1(d)(2)(ii)
and the amount of the tentative tested
income item described in § 1.951A-2(c)
(7)(vi)(B), as applicable.
(5) Application of §§ 78 and 275(a)(4).
If a taxpayer chooses with respect to any
taxable year to claim a credit for foreign
income taxes, absent a specific statutory
provision to the contrary (such as § 901(j)
(3)), the gross-up rule of § 78 and the
deduction disallowance rule of § 275(a)
(4) apply to any foreign income tax paid
or accrued in such taxable year regardless
of whether a foreign tax credit is allowed
for the particular tax. The guidance in this
section would confirm that result in the
case of a final top-up tax, such as an IIR
that is a foreign income tax. As a result,
a taxpayer who chooses to credit foreign
income taxes would be required to include
in gross income under § 78 an amount
equal to the amount of a final top-up tax
deemed paid by the taxpayer under §§
960(a), (b), and (d), and would not be able
to claim a deduction for a final top-up tax
under § 275(a)(4).
(a) Section 78 gross-up amount. Section
78 applies to a final top-up tax deemed paid
by a domestic corporation that chooses to
have the benefits of subpart A of part III of
subchapter N for any taxable year.
(b) Section 275(a)(4) deduction disallowance. Section 275 applies to deny
a deduction for a final top-up tax to any
person that chooses to take to any extent
the benefits of § 901.
(6) Examples. The following examples
illustrate the application of this section
2.02.

(a) Example 1—IIR that is a foreign income tax.
(i) Facts. Country X imposes an IIR on certain
entities resident in Country X. The IIR imposed
by Country X is a foreign income tax within the
meaning of § 1.901-2(a) and (b). Under Country
X tax law, in computing the amount of the IIR,
the foreign tax liability of the direct and indirect
owners of the Country X taxpayers that relates to
income subject to the IIR is taken into account if
those owners are part of the same MNE Group (as
defined under Country X tax law) as the Country X
taxpayers. USP is a domestic corporation that owns
all the stock of CFCX, a CFC that is organized in,
and is a tax resident of, Country X. CFCX owns all
the stock of CFCY, a CFC that is organized in, and
is a tax resident of, Country Y. Under Country X
tax law, USP is considered part of the same MNE

1584

Group as CFCX and CFCY, and, therefore, any
U.S. tax liability of USP that relates to income subject to the IIR is taken into account in computing
the IIR. In 2024, CFCX is liable for 5u (units of
Country X currency) of the Country X IIR. At all
relevant times, 1u = $1. USP is deemed to pay $4 of
the Country X IIR under § 960(d). USP chooses to
credit foreign income taxes for 2024.
(ii) Analysis. The Country X IIR is a final top-up
tax because it is a foreign income tax that takes into
account the amount of tax imposed by other countries on the direct or indirect owners of the entity
subject to the Country X IIR with respect to the
income subject to the Country X IIR. No credit is
allowed under § 901 to USP for the $4 of Country
X IIR that USP is deemed to pay because, under
Country X tax law, USP’s U.S. federal income tax
liability may be taken into account in computing
the Country X IIR. This result does not depend on
whether USP has any amount of U.S. federal income
tax liability or whether any of that liability is, in fact,
taken into account in computing the Country X IIR.
The amount included in USP’s income by reason of
§ 78 and § 1.78-1(a) is $5.
(b) Example 2—Minority U.S. shareholder.
(i) Facts. The facts are the same as in Example 1,
except that: (i) USP and USM, a domestic corporation, own 70% and 30%, respectively, of the stock of
HoldCo, a CFC that is organized in, and is a tax resident of, Country A, and HoldCo owns all the stock
of CFCX, (ii) USM is not considered part of the
same MNE Group as USP, CFCX and CFCY under
Country X tax law, (iii) CFCX is liable for 6.5u of
the Country X IIR, and (iv) under § 960(d), USP is
deemed to pay $3.64 of the Country X IIR, and USM
is deemed to pay $1.56 of the Country X IIR.
(ii) Analysis. Similar to the analysis in Example
1, the Country X IIR is a final top-up tax, and no
credit is allowed under § 901 to USP for the $3.64 of
Country X IIR that USP is deemed to pay because,
under Country X tax law, USP’s U.S. federal income
tax liability may be taken into account in computing
the Country X IIR. USM, however, may be allowed a
credit under § 901 for the $1.56 of the Country X IIR
that USM is deemed to pay under § 960(d) because,
under Country X tax law, no amount of USM’s U.S.
federal income tax liability can be taken into account
in computing the Country X IIR as USM is not
considered part of the same MNE Group as CFCX.
Under § 78 and § 1.78-1(a), the amount included in
USP’s income is $4.55, and the amount included in
USM’s income is $1.95.
(c) Example 3—QDMTT that is a foreign income
tax.
(i) Facts. The facts are the same as in Example
1, except that Country Y imposes a QDMTT. The
QDMTT imposed by Country Y is a foreign income
tax within the meaning of § 1.901-2(a) and (b).
Under Country Y tax law, in computing the amount
of the QDMTT, the foreign tax liability of direct and
indirect owners of the entity subject to the QDMTT
is not taken into account. Therefore, any U.S. tax liability of USP is not taken into account in computing
the QDMTT. In 2024, CFCX is liable for no amount
of Country X IIR, and CFCY is liable for 10y (units
of Country Y currency) of Country Y QDMTT. At all
relevant times, 1y= $1. USP is deemed to pay $8 of
the Country Y QDMTT under § 960(d).

Bulletin No. 2023–52

(ii) Analysis. The Country Y QDMTT is not
a final top-up tax because Country Y tax law does
not take into account in computing the Country Y
QDMTT the amount of tax imposed by other countries on the direct and indirect owners of the entity
subject to the Country Y QDMTT. Therefore, USP
may be allowed a credit under § 901 for the $8 of
Country Y QDMTT deemed paid under § 960(d).
The amount included in USP’s income by reason of
§ 78 and § 1.78-1(a) is $10.

.03 Separate Levy Rules.
(1) In general. The Treasury
Department and the IRS intend to issue
proposed regulations consistent with the
guidance provided in this section 2.03,
which describes how the separate levy
rules of § 1.901-2(d) apply with respect
to an IIR, UTPR, and QDMTT. This treatment would reflect that the amount of tax
imposed under an IIR, UTPR, or QDMTT
is computed separately from any other
levy imposed by a foreign country, and
would ensure consistent treatment of an
IIR, UTPR, and QDMTT regardless of the
manner in which a foreign country enacts
an IIR, UTPR, or QDMTT under its foreign tax law.
(2) Application of separate levy rules.
Each of an IIR, UTPR, and QDMTT
imposed by a foreign country is a separate
levy within the meaning of § 1.901-2(d)
from any other levy imposed by that country, even if the country imposes the IIR,
UTPR, or QDMTT by adjusting the base
of any other levy (such as through an addition to income or denial of deductions).
.04 Determining the Taxpayer for a
QDMTT.
(1) In general. The Treasury
Department and the IRS intend to issue
proposed regulations consistent with the
guidance provided in this section 2.04,
which describes rules for determining the
person by whom a QDMTT is considered
paid under § 1.901-2(f) when a QDMTT
is computed by reference to the income of
two or more persons.
(2) QDMTT on income of two or more
persons. The legal lability for a QDMTT
imposed on the income of two or more
persons is determined under the rules of
this section 2.04(2) through (4) rather than
under § 1.901-2(f)(3) (regarding taxes
imposed on combined income of two or
more persons). If a QDMTT is computed
by reference to the income of two or more
persons, foreign tax law is considered to
impose legal liability for the QDMTT on
each person in proportion to the person’s

Bulletin No. 2023–52

QDMTT Allocation Key, as determined
under this section 2.04(2). A person’s
QDMTT Allocation Key is the product of
(i) the excess (if any) of the QDMTT Rate
over the person’s Separate Pre-QDMTT
ETR, and (ii) the person’s Separate
QDMTT Income (such terms as defined
in section 2.04(3)). If a person’s Separate
QDMTT Income is zero or less than zero,
then the person’s QDMTT Allocation Key
will be treated as zero. The rules of this
section 2.04 apply regardless of how the
foreign tax law allocates the QDMTT liability among two or more persons, which
person is obligated to remit the tax, which
person actually remits the tax, or which
person the foreign country could proceed
against to collect the tax in the event all or
a portion of the tax is not paid.
(3) Definitions. The following definitions apply for purposes of this section
2.04.
(a) Person. Person means an individual or an entity (including a disregarded
entity described in § 301.7701-2(c)(2)
(i)) that is subject to a QDMTT imposed
by a foreign country. In determining the
amount of the QDMTT paid by an owner
of a partnership or a disregarded entity,
the rule described in section 2.04(2) first
applies to determine the amount of the
QDMTT paid by the partnership or disregarded entity, and then § 1.901-2(f)(4)
applies to allocate the amount of such
QDMTT to the owner.
(b) QDMTT Rate. QDMTT Rate means
the minimum effective tax rate (ETR), as
stated in the foreign tax law, to which
the actual ETR of a person or persons is
compared for purposes of computing the
QDMTT.
(c) Separate Pre-QDMTT Taxes. A person’s Separate Pre-QDMTT Taxes means
the taxes (whether positive or negative)
of the person that are taken into account
under the foreign tax law for purposes of
computing the QDMTT.
(d) Separate QDMTT Income. A person’s Separate QDMTT Income means the
income or loss of the person that is taken
into account under the foreign tax law for
purposes of computing the QDMTT.
(e) Separate Pre-QDMTT ETR. A person’s Separate Pre-QDMTT ETR means
the person’s Separate Pre-QDMTT Taxes
(whether positive or negative) divided by
the person’s Separate QDMTT Income.

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(4) Separate QDMTT Income and
Separate Pre-QDMTT Taxes. A person’s Separate QDMTT Income and a
person’s Separate Pre-QDMTT Taxes
are determined by reference to the relevant amounts (not reduced by negative
amounts attributable to any other person)
provided on any return, schedule or other
document that, under the foreign tax law,
must be filed or maintained for purposes
of the QDMTT. If no return, schedule,
or other document that provides a person’s Separate QDMTT Income and a
person’s Separate Pre-QDMTT Taxes is
required to be filed or maintained, then,
a person’s Separate QDMTT Income and
a person’s Separate Pre-QDMTT Taxes
are determined by reference to the relevant amounts provided in the books of
account regularly maintained by or on
behalf of the person and used for purposes of computing the QDMTT.
(5) Examples. The following examples
illustrate the application of this section
2.04(2) through (4).

(a) Example 1—QDMTT imposed on two or more
persons.
(i) Facts. Country X has enacted a QDMTT.
Under Country X tax law, entities that are resident
in, or have a taxable presence in, Country X and that
are members of the same MNE Group, are jointly
and severally liable for the QDMTT. USP is a United
States person that owns all of the stock of each of
CFC1 and CFC2, each of which is a CFC that is a
tax resident of Country X. CFC1 and CFC2 are
members of the same MNE Group under Country
X tax law. In Year 1, CFC1’s Separate QDMTT
Income is 100u (units of Country X currency) and
CFC1’s Separate Pre-QDMTT Taxes is 5u. In the
same year, CFC2’s Separate QDMTT Income is
50u, and CFC2’s Separate Pre-QDMTT Taxes is 5u.
The QDMTT Rate in Country X is 15%. Country X
imposes 12.5u of QDMTT with respect to CFC1 and
CFC2 collectively.
(ii) Analysis. Under Country X tax law, the
amount of the QDMTT is computed by reference
to the income of both CFC1 and CFC2. Under section 2.04(2) through (4) of this notice, the 12.5u of
the Country X QDMTT is allocated between CFC1
and CFC2 in proportion to each person’s QDMTT
Allocation Key. CFC1’s QDMTT Allocation Key
is 10u ((15% - (5u / 100u)) x 100u), and CFC2’s
QDMTT Allocation Key is 2.5u ((15% - (5u / 50u))
x 50u). Accordingly, 10u of the Country X QDMTT
(12.5u x (10u / 12.5u)) is allocated to CFC1, and 2.5u
of the Country X QDMTT (12.5u x (2.5u / 12.5u)) is
allocated to CFC2.
(b) Example 2—Effect of SBIE.
(i) Facts. The facts are the same as in Example
1, except that CFC1 and CFC2 collectively have
15u of Substance-based Income Exclusion (SBIE)
which, under Country X tax law, can reduce an MNE
Group’s QDMTT liability. After taking into account

December 26, 2023

the SBIE, Country X imposes 11.25u of QDMTT
with respect to CFC1 and CFC2 collectively.
(ii) Analysis. The amount of SBIE (if any), and
the entity to which it may be attributable, is not
taken into account in the calculation of each person’s
QDMTT Allocation Key. The QDMTT Allocation
Key for each of CFC1 (10u) and CFC2 (2.5u) remains
the same as in Example 1 because each of CFC1
and CFC2 has the same Separate QDMTT Income
and Separate Pre-QDMTT Taxes as in Example 1.
Accordingly, 9u of the Country X QDMTT (11.25u
x (10u / 12.5u)) is allocated to CFC1, and 2.25u of
the Country X QDMTT (11.25u x (2.5u / 12.5u)) is
allocated to CFC2.
(c) Example 3—Negative Separate QDMTT
Income.
(i) Facts. The facts are the same as in Example 1,
except that USP also owns all of the stock of CFC3,
which is a CFC that is a tax resident of Country
X. CFC3 is a member of the same MNE Group as
CFC1 and CFC2 under Country X tax law. In Year
1, CFC3’s Separate QDMTT Income is a net loss
of 50u, and its Separate Pre-QDMTT Taxes is zero.
Country X imposes 5u of QDMTT with respect to
CFC1, CFC2, and CFC3 collectively.
(ii) Analysis. Under Country X tax law, the
amount of the QDMTT is computed by reference
to the income of CFC1, CFC2, and CFC3. Under
section 2.04(2) through (4) of this notice, the 5u
of Country X QDMTT is allocated among CFC1,
CFC2, and CFC3 in proportion to each person’s
QDMTT Allocation Key. The QDMTT Allocation
Key for CFC1 (10u) and for CFC2 (2.5u) remain
the same as in Example 1 because they have the
same Separate QDMTT Income and Separate PreQDMTT Taxes as in Example 1. CFC3’s QDMTT
Allocation Key is treated as zero because its Separate
QDMTT Income is less than zero. Accordingly, 4u
of the Country X QDMTT (5u x (10u / 12.5u)) is
allocated to CFC1, 1u of the Country X QDMTT (5u
x (2.5u / 12.5u)) is allocated to CFC2, and none of
the Country X QDMTT (5u x 0u / 12.5u) is allocated
to CFC3.
(d) Example 4—Negative Separate Pre-QDMTT
Taxes.
(i) Facts. The facts are the same as in Example
1, except that: (i) in Year 1, CFC1’s Separate PreQDMTT Taxes is -5u, representing a negative
amount of income tax expense (a tax benefit), and (ii)
Country X imposes 22.5u of QDMTT with respect to
CFC1 and CFC2 collectively.
(ii) Analysis. As in Example 1, under Country
X tax law, the amount of the QDMTT is computed
by reference to the income of both CFC1 and CFC2.
Under section 2.04(2) through (4) of this notice, the
22.5u of Country X QDMTT is allocated between
CFC1 and CFC2 in proportion to each person’s
QDMTT Allocation Key. The QDMTT Allocation
Key for CFC2 (2.5u) remains the same as in
Example 1 because CFC2 has the same Separate
QDMTT Income and Separate Pre-QDMTT Taxes
as in Example 1. However, CFC1’s QDMTT
Allocation Key is now 20u ((15% - (-5u / 100u)) x
100u), reflecting the change in CFC1’s Separate PreQDMTT Taxes. Accordingly, 20u of the Country
X QDMTT (22.5u x (20u / 22.5u)) is allocated to
CFC1, and 2.5u of the Country X QDMTT (22.5u x
(2.5u / 22.5u)) is allocated to CFC2.

December 26, 2023

.05 The Non-duplication Requirement
for In Lieu of Taxes.
(1) In general. The Treasury
Department and the IRS intend to amend
the non-duplication requirement in §
1.903-1(c)(1)(ii) as described in this section 2.05.
(2) Non-duplication requirement. A foreign tax, in order to qualify as an in lieu
of tax, need only be in substitution for a
generally-imposed net income tax and
not in substitution for all net income taxes
imposed by that country. Accordingly,
the first sentence of the non-duplication
requirement in § 1.903-1(c)(1)(ii) would
be revised as follows: “The generally-imposed net income tax for which the tested
foreign tax is imposed in substitution is not
also imposed, in addition to the tested foreign tax, on any persons with respect to any
portion of the income to which the amounts
(such as sales or units of production) that
form the base of the tested foreign tax relate
(the ‘excluded income’).” Conforming
changes to the second sentence of § 1.9031(c)(1)(ii) and the examples in § 1.903-1(d)
would be made as appropriate.
(3) Example.

(a) Facts. Country X imposes a net income tax
within the meaning of § 1.901-2(a)(3) on the income
of nonresident companies that is attributable to the
nonresident’s activities within Country X (NRCIT)
and that constitutes a generally-imposed net income
tax. The NRCIT applies to all nonresident corporations that engage in business in Country X except
for nonresident corporations that engage in activities
related to Industry B, which are instead subject to the
Industry B Tax. The NRCIT and the Industry B Tax
were enacted contemporaneously, and the statutory
language of the NRCIT expressly excludes gross
income derived by corporations engaged in activities
related to Industry B. Country X enacts a QDMTT
that is a net income tax within the meaning of
§ 1.901-2(a)(3). The Country X QDMTT is imposed
with respect to gross income that is also included in
the base of the Industry B Tax.
(b) Analysis. The Industry B Tax meets the
requirement in § 1.903-1(c)(1)(i) because Country X
has a generally-imposed net income tax, the NRCIT.
In addition, the Industry B Tax meets the requirement in § 1.903-1(c)(1)(ii), modified as described
in section 2.05(2), because the generally-imposed
net income tax for which the tested foreign tax is
imposed in substitution, the NRCIT, is not also
imposed, in addition to the Industry B Tax, on any
persons with respect to any portion of the income to
which the amounts that form the base of the Industry
B Tax relate (“excluded income”). It is not relevant
that the Country X QDMTT is also imposed on the
excluded income.

(4) Additional changes to § 1.903-1.
The Treasury Department and the IRS are

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considering whether additional changes
to § 1.903-1 would be needed to ensure
that foreign taxes continue to be creditable only where consistent with the scope
and purposes of § 903. These additional
changes may include defining a generally-imposed net income tax.
.06 Applicability Date and Reliance.
(1) Applicability date. It is anticipated
that the proposed regulations will provide that rules consistent with the rules
described in section 2 of this notice apply
to taxable years ending after December
11, 2023.
(2) Reliance. A taxpayer may rely on
the guidance described in sections 2.02
through 2.05 of this notice for taxable
years that end after December 11, 2023,
and on or before the date proposed regulations are published in the Federal Register,
provided that the taxpayer consistently
follows the guidance in its entirety for all
those taxable years. Additionally, for taxable years that begin on or after December
28, 2021, and end on or before December
11, 2023, a taxpayer may rely on the
guidance described in section 2.05 of this
notice.
SECTION 3. GLOBE MODEL RULES
AND DUAL CONSOLIDATED
LOSSES
.01 Background.
Section 1503(d) and the regulations
thereunder (DCL rules) prevent “double
dipping” of losses, which occurs when
the same economic loss offsets or reduces
both income subject to U.S. tax (but not
a foreign jurisdiction’s tax) and income
subject to the foreign jurisdiction’s tax
(but not U.S. tax). See S. Rep. 313, 99th
Cong., 2d Sess., at 419-20 (1986). A dual
consolidated loss (DCL) is defined as a net
operating loss of a dual resident corporation and a net loss of a domestic corporation that is attributable to certain foreign
branches or interests in hybrid entities
(separate units). See § 1.1503(d)-1(b)(5).
Under the DCL rules, a DCL cannot offset the income of a domestic affiliate (a
domestic use), subject to certain exceptions. See § 1.1503(d)-4(b).
Under one exception, a domestic use
of a DCL is permitted if the taxpayer
makes a domestic use election, which
requires the taxpayer to certify that there

Bulletin No. 2023–52

has not been, and will not be, a foreign
use of the DCL. See § 1.1503(d)-6(d)
and § 1.1503(d)-1(b)(20). In general, a
foreign use of a DCL occurs when any
portion of the DCL is made available
under the income tax laws of a foreign
country to offset or reduce, directly or
indirectly, any income that under U.S.
tax principles is income of a foreign corporation or a direct or indirect owner of
certain interests in hybrid entities. See
§ 1.1503(d)-3(a)(1). In the event of a
foreign use (or other triggering event)
during the certification period, the taxpayer must recapture the DCL as ordinary income and pay an interest charge.
§ 1.1503(d)-6(e)(1). However, among
other exceptions, a foreign use is not considered to occur if the laws of a foreign
country provide an election that would
enable a foreign use and such election
is not made. § 1.1503(d)-3(c)(2). Under
this domestic use election, a taxpayer
effectively has the choice to put a DCL
to a domestic use or a foreign use (but
not both).
.02 Interaction with GloBE Model
Rules.
Under the GloBE Model Rules, an
MNE Group whose ETR for a jurisdiction is below the 15% Minimum Rate
must compute the amount of Jurisdictional
Top-up Tax owed with respect to the jurisdiction. That Jurisdictional Top-up Tax
is based on, among other factors such as
Adjusted Covered Taxes, the Net GloBE
Income of Constituent Entities within the
jurisdiction. For this purpose, the GloBE
Model Rules take a jurisdictional blending approach under which all income and
loss of Constituent Entities in the same
jurisdiction are generally aggregated. This
aggregation can be viewed as giving rise to
double dipping concerns that the DCL rules
were intended to address. For example, if,
in determining Net GloBE Income of a
jurisdiction, a loss giving rise to a DCL is
aggregated with items that under U.S. tax
principles are items of a foreign corporation
in that jurisdiction, the loss would be available to reduce both U.S. tax (if a domestic use election were permitted) and the
Jurisdictional Top-up Tax. These concerns
could exist with respect to a DCL incurred
in a taxable year ending before the time at
which the GloBE Model Rules are anticipated to be effective (for instance, a taxable

Bulletin No. 2023–52

year ending on December 31, 2023) if timing differences between U.S. tax law and
applicable financial accounting standards
result in a portion of the loss comprising
the DCL being taken into account as an
expense under the GloBE Model Rules in
a later year.
Additionally, the GloBE Model Rules
include certain features that may differ
from traditional foreign income tax systems. For example, the GloBE Model
Rules do not include a mechanism through
which a taxpayer can decline aggregation,
with the result that the taxpayer might
effectively be required to put a DCL to a
foreign use (thereby removing what otherwise may have been a choice between a
domestic use and a foreign use). In addition, a loss may never produce a benefit
under the Jurisdictional Top-up Tax, for
example, if the ETR in the jurisdiction
is at or above the Minimum Rate (without regard to the loss) and the loss is not
carried over in determining Jurisdictional
Top-Up Tax in another year.
Accordingly, the Treasury Department
and the IRS are studying the extent to
which the DCL rules should apply with
respect to the GloBE Model Rules,
including the extent to which aggregation should result in a foreign use of a
DCL, and the extent to which the GloBE
Model Rules should cause an entity that
is not otherwise subject to an income tax
of a foreign jurisdiction to be a dual resident corporation or a hybrid entity under
§ 1.1503(d)-1(b)(2) or (3), or should prevent such an entity from being a transparent entity under § 1.1503(d)-1(b)(16).
The Treasury Department and the IRS are
also studying similar issues in the context of other provisions (for example, the
interaction of the anti-hybrid rules under
§§ 245A(e) and 267A with the GloBE
Model Rules).
.03 Treatment of Legacy DCLs.
In the interest of providing certainty
while the Treasury Department and the
IRS develop guidance addressing the interaction of the DCL rules with the GloBE
Model Rules, the Treasury Department
and the IRS intend to issue proposed regulations with respect to DCLs incurred
in (i) taxable years ending on or before
December 31, 2023, or (ii) provided the
taxpayer’s taxable year begins and ends
on the same dates as the Fiscal Year of the

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MNE Group that could take into account
as an expense any portion of a deduction
or loss comprising such a DCL, taxable
years beginning before January 1, 2024,
and ending after December 31, 2023
(collectively, legacy DCLs). Under this
proposed rule, a foreign use would not
be considered to occur with respect to a
legacy DCL solely because all or a portion
of the deductions or losses that comprise
the legacy DCL are taken into account in
determining the Net GloBE Income for a
particular jurisdiction. However, this proposed rule would not apply to any DCL
that was incurred or increased with a view
to reducing the Jurisdictional Top-Up
Tax or qualifying for the proposed rule
described in this notice.
.04 Reliance.
Taxpayers may rely on the guidance
described in this section 3 until proposed
regulations are published in the Federal
Register.
SECTION 4. REQUEST FOR
COMMENTS
.01 Comments.
The Treasury Department and the IRS
request comments on the rules described
in sections 2 and 3 of this notice. The
Treasury Department and the IRS specifically solicit comments on the interaction of the DCL rules with the GloBE
Model Rules, including Article 3.2.7
of the GloBE Model Rules (relating to
Intragroup Financing Arrangements).
.02 Procedures for Submitting
Comments.
(1) Deadline. Written comments
should be submitted by February 9, 2024.
Consideration will be given, however,
to any written comment submitted after
February 9, 2024, if such consideration
will not delay the issuance of proposed
regulations.
(2) Form and manner. The subject line
for the comments should include a reference to Notice 2023-80. All commenters
are strongly encouraged to submit comments electronically. However, comments
may be submitted in one of two ways:
(a) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2023-0060 in the search
field on the regulations.gov homepage to
find this notice and submit comments); or

December 26, 2023

(b) By mail to: Internal Revenue
Service, CC:PA:LPD:PR (Notice 202380), Room 5203, P.O. Box 7604, Ben
Franklin Station, Washington, D.C.,
20044.
(3) Publication of comments. The
Treasury Department and the IRS will
publish for public availability any comment submitted electronically and on
paper to its public docket on regulations.
gov.
SECTION 5. EXTENSION AND
MODIFICATION OF TEMPORARY
RELIEF IN NOTICE 2023-55
.01 Background.
On January 4, 2022, the Treasury
Department and the IRS published
Treasury Decision 9959 in the Federal
Register (87 FR 276) (2022 FTC final
regulations), which contained final regulations under §§ 901 and 903. Correcting
amendments to the 2022 FTC final regulations were published in the Federal
Register on July 27, 2022 (87 FR 45018).
On November 22, 2022, the Treasury
Department and the IRS published proposed regulations (REG-112096-22) in
the Federal Register (87 FR 71271), which
included proposed rules relating to the
cost recovery requirement and the substitution requirement for covered withholding taxes. On April 17, 2023, the Treasury
Department and the IRS published Notice
2023-31 in the Internal Revenue Bulletin
(IRB 2023-16) relating to proposed §
1.903-1(c)(2)(iii)(B) (the single-country
exception).
On August 7, 2023, the Treasury
Department and the IRS published Notice
2023-55 in the Internal Revenue Bulletin
(IRB 2023-32). Notice 2023-55 provides
temporary relief in determining whether a
foreign tax meets the definition of a foreign
income tax under §§ 901 and 903 for foreign taxes paid in any taxable year (a relief
year) beginning on or after December 28,
2021, and ending on or before December
31, 2023 (the relief period), provided that
the taxpayer satisfies certain requirements.

.02 Application of Temporary Relief in
Notice 2023-55 to Partnerships.
The Treasury Department and the IRS
have received questions regarding the
application of the temporary relief provided in Notice 2023-55 to partnerships,
including whether the partnership or its
partners would apply the temporary relief
with respect to foreign taxes paid or otherwise required to be reported by such
partnership.6
This section 5.02 provides that, with
respect to foreign taxes paid or otherwise
required to be reported by such partnership,7 which could include foreign taxes
paid by a CFC (collectively, the partnership’s foreign taxes), the partnership
would apply (or not apply) the temporary
relief. However, if, before December 11,
2023, a partnership did not apply the temporary relief for a partnership’s relief year
ending on or before December 31, 2022 (a
partnership 2022 tax year), a partner may
apply the temporary relief to its share of
the partnership’s foreign taxes for a partnership 2022 tax year. In certain circumstances, the IRS may make adjustments
relating to the foreign tax credits claimed
by a partner with respect to such foreign
taxes on audit of the partner.
.03 Modification and Clarification of
the Consistent Application Requirement
and Single-Benefit Requirement of Notice
2023-55.
Section 3 of Notice 2023-55 states that,
if a taxpayer applies the temporary relief,
then the taxpayer must apply the temporary relief to (1) all foreign taxes paid by
the taxpayer in the taxpayer’s relief year,
and (2) all foreign taxes (i) that are paid
by any other person in a taxable year that
begins on or after December 28, 2021 and
that ends with or within the taxpayer’s
relief year, and (ii) for which the taxpayer
would be eligible to claim a credit, as provided in § 901 (determined without regard
to the limitations described in § 1.9011(b)), if the taxpayer applied the temporary
relief to such foreign taxes (the consistent
application requirement). Additionally,
the taxpayer may not apply the temporary

relief in a relief year to claim a credit, as
provided under § 901, for any amount
of foreign tax for which a deduction is
allowed in the relief year or any other taxable year (the single-benefit requirement).
This section 5.03 modifies and clarifies
the consistent application requirement and
the single-benefit requirement in Notice
2023-55 with respect to partnerships and
their partners.
Partnerships and their partners are
each subject to the consistent application requirement. Therefore, a partnership that applies the temporary relief to
a relief year must apply the temporary
relief to all the partnership’s foreign
taxes (as defined in section 5.02 of this
notice). For a partnership’s taxable year
beginning after December 31, 2022, a
partnership’s application (or non-application) of the temporary relief for a relief
year will cause a partner to be required to
apply (or to be precluded from applying)
the temporary relief for the relief year to
all other foreign taxes for which the partner would be eligible to claim a credit as
provided in § 901 (determined without
regard to the limitations described in §
1.901-1(b)), unless the partner does not
control whether the partnership applies
(or does not apply) the temporary relief
for the relief year.8
Furthermore, partnerships and their
partners are each subject to the single-benefit requirement. Therefore, a partnership
cannot apply the temporary relief to report
any amount of foreign tax as a creditable
foreign tax expenditure if the partnership
reports the amount as a deduction in the
relief year or any other taxable year.
.04 Extension of Temporary Relief.
Section 4 of Notice 2023-55 defines
the relief period as taxable years beginning on or after December 28, 2021, and
ending on or before December 31, 2023,
and defines relief year as any taxable year
within the relief period. This section 5.04
modifies the relief period to mean taxable
years beginning on or after December 28,
2021, and ending before the date that a
notice or other guidance withdrawing or

For purposes of this section 5, references to a partnership only include partnerships with a U.S. federal tax return filing obligation under § 6031 in a relief year.
For the avoidance of doubt, “required to be reported” means foreign taxes which would be required to be reported if the partnership applied the temporary relief.
8
Whether a partner controls the partnership’s application (or non-application) of the temporary relief will be determined based on the facts and circumstances, including the partnership
agreement. For example, a partner may control a partnership’s application (or non-application) of the temporary relief by reason of being a general partner or owning, individually or together
with related persons, a majority of the capital or profits interests in the partnership.
6
7

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modifying the temporary relief is issued
(or any later date specified in such notice
or other guidance).
If final regulations consistent with the
guidance provided in section 2 apply in a
relief year, those final regulations apply
regardless of whether the taxpayer applies
the temporary relief described in Notice
2023-55, as modified by section 5.02
through 5.04 of this notice, for the relief
year.

Bulletin No. 2023–52

.05 Effect on Other Documents.
Sections 3 (Temporary Relief) and 4
(Relief Period) of Notice 2023-55, 202332 I.R.B. 427, are modified.
SECTION 6. DRAFTING AND
CONTACT INFORMATION
The principal author of this notice is
the Office of Associate Chief Counsel
(International). For further information

1589

concerning section 3 of this notice, contact Brady Plastaras at (202) 317-6937.
For further information regarding section 5 of this notice, contact Moshe Dlott
at (202) 317-4967 or Larry Pounders at
(202) 317-5465. For all other sections,
contact Jeffrey Cowan at (202) 317-4924
or Hayley Rassuchine at (202) 317-5282
(not toll-free number).

December 26, 2023

NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and
W-3c.
26 CFR 601.602: Tax forms and instructions. (Also Part I, Sections 6041, 6051, 6071, 6081, 6091; 1.6041-1, 1.6041-2, 31.6051-1, 31.6051-2, 31.6071(a)-1, 31.6081(a)1, 31.6091-1.)

Rev. Proc. 2023-39
TABLE OF CONTENTS
Part 1 – SUBSTITUTE FORMS W-2C AND W-3C
Section 1.1 – Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1591
Section 1.2 – What’s New. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1593
Section 1.3 – Filing Forms W-2c and W-3c Electronically. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1593
Section 1.4 – Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA. . . . . . . . . . . . . . 1594
Section 1.5 – Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA. . . . . . 1596
Section 1.6 – Requirements for Substitute Privately Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees. . 1599
Section 1.7 – Instructions for Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1600
Section 1.8 – OMB Requirements for Both Red-Ink and Black-and-White Copy A and W-3c Substitute Forms. . . . . . . . . 1601
Section 1.9 – Order Forms and Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1601
Section 1.10 – Effect on Other Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1602
Section 1.11 – Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1602

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Part 1
Substitute Forms W-2c and W-3c

Section 1.1 – Purpose
.01 The purpose of this revenue procedure is to state the requirements of the Internal Revenue
Service (IRS) and the Social Security Administration (SSA) regarding the preparation and use of
substitute forms for Form W-2c, Corrected Wage and Tax Statement, and Form W-3c, Transmittal
of Corrected Wage and Tax Statements.
.02 The official IRS Form W-2c is a six-part form and the official IRS Form W-3c is a one-part
form. Red-ink substitute forms that completely conform to the specifications contained in this
document may be privately printed without the prior approval of the IRS or the SSA. Only the
substitute black-and-white Form (Copy A) and substitute black-and-white W-3c forms need to be
submitted to the SSA for approval.
Note. Both paper substitute forms filed with the SSA, and those furnished to employees, that do
not totally conform to these specifications are not acceptable. Forms W-2c (Copy A) and Forms
W-3c that do not conform may be returned. In addition, penalties may be assessed by the IRS.
.03 Substitute red-ink forms should not be submitted to either the IRS or the SSA for specific
approval. If you are uncertain of any specification and want clarification, do the following.
1.

Submit a letter to the appropriate address below citing the specification.

2.

State your understanding of the specification; enclose an example.

3.

Be sure to include your name, complete address, phone number, and, if applicable, your email
address with your correspondence.

.04 Any questions about the red-ink Form W-2c (Copy A) and Form W-3c, should be emailed
to substituteforms@irs.gov. Please enter “Substitute Forms” on the subject line. Or send your
questions to:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP:TP
ATSC
4800 Buford Highway
Mail Stop 061-N
Chamblee, GA 30341
Note. Do not send completed forms to the Substitute Forms Program via email or mail as they are
unable to process those forms. Any examples/samples of substitute forms sent to the Substitute
Forms program should not contain taxpayer information.
Any questions about the substitute black-and-white Form W-2c (Copy A) and W-3c should be
emailed to copy.a.forms@ssa.gov or sent to:
Social Security Administration
Direct Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997

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Do not email or mail completed Forms W-2c (Copy A) to the SSA Substitute Black-and-White
Copy A Forms address as they are unable to process those forms. Submitters should use the
address shown on the Form W-3c.
Note. You should receive a response from either the IRS or the SSA within 30 days.
.05 Some Forms W-2c that include logos, slogans, and advertisements (including advertisements
for tax preparation software) may be considered as suspicious or altered Forms W-2c (also known
as questionable Forms W-2c). An employee may not recognize the importance of the employee
copy for tax reporting purposes due to the use of logos, slogans, and advertisements. Thus, the
IRS has determined that logos, slogans, and advertising will not be allowed on Copy A of Forms
W-2c, Forms W-3c, or any employee copies reporting wages, with the following exceptions for
the employee copies:
•

Forms may include the exact name of the employer or agent, primary trade name, trademark,
service mark, or symbol of the employer or agent.

•

Forms may include an embossment or watermark on the information return (and copies) that
is a representation of the name, a primary trade name, trademark, service mark, or symbol of
the employer or agent.

•

Presentation may be in any typeface, font, stylized fashion, or print color normally used by
the employer or agent; and used in a non-intrusive manner.

•

These items do not materially interfere with the ability of the recipient to recognize,
understand, and use the tax information on the employee copies.

The IRS e-file logo on the IRS official employee copies may be included, but it is not required, on
any of the substitute form copies.
The information return and employee copies must clearly identify the employer’s name associated
with its employer identification number (EIN).
Note. Just as with the forms, an employee may not recognize the importance (or legitimacy) of
an envelope containing employee copies of Form W-2c if logos, slogans, and advertisements
(including coupons) are on the envelope. Therefore, such items are not allowed on envelopes
containing employee copies of Form W-2c.
Forms W-2c and W-3c are subject to annual review and possible change. This revenue procedure
may be revised to state other requirements of the IRS and the SSA regarding the preparation and
use of substitute forms for Form W-2c and Form W-3c for corrections to be made at a future date.
If you have comments about the prohibition against including slogans, advertising, and logos on
information returns and employee copies, email or send your comments to: substituteforms@
irs.gov or Internal Revenue Service, Attn: Substitute Forms Program, SE:W:CAR:MP:P:TP:TP,
ATSC, 4800 Buford Highway, Mail Stop 061-N, Chamblee, GA 30341.
.06 The Internal Revenue Service/Information Returns Branch (IRS/IRB) maintains a centralized
customer service call site to answer questions related to information returns (Forms W-2, W-3,
W-2c, W-3c, 1099 series, 1096, etc.).
You can reach the call site at 866-455-7438 (toll free) or 304-263-8700 (not a toll-free number).
Deaf or hard-of-hearing customers may call any of our toll-free numbers using their choice of relay
service. You may also email questions to mccirp@irs.gov. Do not submit employee information
via email because it is not secure and the information may be compromised.
File paper or electronic Forms W-2c (Copy A) with the SSA. The IRS/IRB does not process
Forms W-2c (Copy A).

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.07 The following form instructions and publications provide more detailed filing procedures for
certain information returns.
•

General Instructions for Forms W-2 and W-3 (Including Forms W-2AS, W-2CM, W-2GU,
W-2VI, W-3SS, W-2c, and W-3c).

•

Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.

Section 1.2 – What’s New
.01 Electronic filing of returns. The Department of the Treasury and the IRS issued final
regulations (T.D. 9972) that changed the rules for mandatory electronic filing of correction forms,
including Form W-2c, as authorized under the Taxpayer First Act, enacted July 1, 2019. If you
were required to electronically file the original Form W-2, you must electronically file any Form
W-2c correcting that form. If the original Form W-2 was permitted to be filed on paper and you
filed on paper, then you must file any Form W-2c correcting that form on paper. See Regulations
section 301.6011-2 for more information.
.02 IRS address change. Inquiries about the red-ink Form W-2c (Copy A) and Form W-3c
should be sent to the IRS at: Internal Revenue Service, Attn: Substitute Forms Program,
SE:W:CAR:MP:P:TP:TP, ATSC, 4800 Buford Highway, Mail Stop 061-N, Chamblee, GA 30341.
.03 Exhibits. All of the exhibits in this publication were updated for the August 2023 revisions
of those forms.
.04 Editorial changes. We made editorial changes throughout, including to update references and
correspond more closely to Publication 1141. Redundancies were eliminated as much as possible.

Section 1.3 – Filing Forms W-2c and W-3c Electronically
.01 If an employer was required to electronically file the original Form W-2, they must
electronically file any Form W-2c correcting that form. If the original Form W-2 was permitted to
be filed on paper and was filed on paper, then the employer must file any Form W-2c correcting
that form on paper. See Regulations section 301.6011-2(c)(4)(ii) for more information. SSA
publication EFW2C, Specifications for Filing Forms W-2c Electronically, contains specifications
and procedures for filing Forms W-2c. Employers are cautioned to obtain the most recent revision
of EFW2C (and supplements) due to any subsequent changes in specifications and procedures.
Instead of the EFW2C upload format, the employer can use SSA’s W-2c Online fill-in forms to
create, save, print, and submit up to 25 Forms W-2c at a time to the SSA. For more information,
go to SSA.gov/employer/.
.02 You may obtain a copy of the EFW2C by accessing the SSA website at SSA.gov/employer/
EFW2&EFW2C.
.03 Electronic filers do not file a paper Form W-3c. See the SSA publication EFW2C for guidance
on transmitting Form W-2c (Copy A) information to the SSA electronically.
.04 Employers who do not comply with the electronic filing requirements for Form W-2c (Copy A)
and who are not granted a waiver by the IRS may be subject to penalties. Employers who file Form
W-2c information with the SSA electronically must not send the same data to the SSA on paper
Forms W-2c (Copy A). Any duplicate reporting may subject filers to unnecessary contacts by the
SSA or the IRS.

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Section 1.4 – Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA
.01 The official IRS-printed red dropout ink Form W-2c (Copy A) and W-3c and their exact
substitutes are referred to as red-ink in this revenue procedure. Employers may file substitute
Forms W-2c (Copy A) and W-3c with the SSA. The substitute forms must be exact replicas of
the official IRS forms with respect to layout and content because they will be read by scanner
equipment. Even the slightest deviation can result in incorrect scanning, and may affect money
amounts reported for employees.
.02 Color and paper quality for Form W-2c (Copy A) (cut sheets and continuous pin-fed forms) and
Form W-3c must be white 100% bleached chemical wood, optical character recognition (OCR)
bond. The contractor must initiate or have a quality control program to assure OCR ink density.
• Acidity: Ph value, average, not less than . . . . . . . . . . . . . .
• Basis weight: 17 x 22 inch 500 cut sheets, pound . . . . . . . . . . .
• Metric equivalent—gm./sq. meter
(a tolerance of +5 pct. is allowed) . . . . . . . . . . . . . . . . . . .
• Stiffness: Average, each direction, not less than—milligrams
Cross direction . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machine direction . . . . . . . . . . . . . . . . . . . . . . . . . . .
• Tearing strength: Average, each direction, not less
than—grams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• Opacity: Average, not less than—percent . . . . . . . . . . . . . . .
• Reflectivity: Average, not less than—percent . . . . . . . . . . . . .
• Thickness: Average—inch . . . . . . . . . . . . . . . . . . . . . . .
Metric equivalent—mm . . . . . . . . . . . . . . . . . . . . . . . .
(a tolerance of +0.0005 inch (0.0127 mm) is allowed). Paper cannot
vary more than 0.0004 inch (0.0102 mm) from one edge to the other.
• Porosity: Average, not less than—seconds . . . . . . . . . . . . . .
• Finish (smoothness): Average, each side—seconds . . . . . . . . . .
(for information only) the Sheffield equivalent—units . . . . . . . .
• Dirt: Average, each side, not to exceed—parts per million . . . . . .

4.5
18–20
68–75
50
80
40
82
68
0.0038
0.097

10
20–55
170-d200
8

Note. Reclaimed fiber in any percentage is permitted, provided the requirements of this standard
are met.
.03 All printing of substitute Forms W-2c (Copy A) and W-3c must be in Flint J-6983 red OCR
dropout ink except as specified below. The following must be printed in nonreflective black ink:
•

Identifying number “44444” for Forms W-2c (Copy A) or “55555” for Form W-3c at the top
of the forms.

•

The four (4) corner register marks on the forms.

•

The form identification number (“W-3c”) at the bottom of Form W-3c.

•

All the instructions below Form W-3c beginning with “Purpose of Form” to the end of Form
W-3c.

.04 The vertical and horizontal spacing on Forms W-2c and W-3c must meet specifications. See
Exhibits A and B.

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•

On Form W-3c and Form W-2c (Copy A), all the perimeter rules must be 1-point (0.014inch), while all other rules must be one-half point (0.007-inch). Vertical rules must be parallel
to the left edge of the form; horizontal rules parallel to the top edge.

•

The top, left, and right margins on Form W-2c (Copy A) and Form W-3c must be 0.50 inches.
The width of a substitute Form W-2c (Copy A) or W-3c must be 7.50 inches. See Exhibits A
and B.

•

The first three columns on Form W-2c (Copy A) and Form W-3c must measure 1.90 inches
in width.

•

The last column on Form W-2c (Copy A) and Form W-3c must measure 1.80 inches in width.

.05 The official red-ink Form W-3c and Form W-2c (Copy A) are 7.50 inches wide. Employers
filing Forms W-2c (Copy A) with the SSA on paper must also file a Form W-3c. One Form W-2c
(Copy A) or Form W-3c is contained on a standard-size, 8.5 x 11-inch page.
.06 The top, left, and right margins for the Form W-2c (Copy A) and Form W-3c are 0.50 inches
(1/2 inch). All margins must be free of printing except for the words “DO NOT CUT, FOLD,
OR STAPLE THIS FORM” on red-ink Form W-2c (Copy A) and “DO NOT CUT, FOLD, OR
STAPLE” on red-ink Form W-3c.
.07 The identifying numbers are “44444” for Form W-2c and “55555” for Form W-3c. No printing
should appear anywhere near the identifying numbers.
Note. The identifying number must be printed in nonreflective black ink in OCR-A font of 10
characters per inch.
.08 Continuous pin-fed Forms W-2c (Copy A) must be separated into 11-inch deep pages. The
pin-fed strips must be removed when Forms W-2c (Copy A) are filed with the SSA.
.09 Box 12 of Form W-2c (Copy A) contains four entry boxes – 12a, 12b, 12c, and 12d. Do not
make more than one entry per box. Enter your first code in box 12a (for example, enter Code D in
box 12a, not 12d, if it is your first entry). If more than four items need to be reported in box 12, use
a second Form W-2c to report the additional items (see Multiple forms in the most recent General
Instructions for Forms W-2 and W-3). Do not report the same federal tax data to the SSA on more
than one Form W-2c (Copy A). However, repeat the identifying information (employee’s name,
address, and SSN; employer’s name, address, and EIN) on each additional form.
.10 The checkboxes in box 13 of Form W-2c (Copy A) must be 0.14 inches each. Each space
before the first checkbox is 0.20 inches; each space between the first checkbox and second
checkbox should be 0.36 inches; each space between the second and third checkboxes should be
0.44 inches; and each space between the third checkbox to the margin of box 13 should be 0.48
inches. The checkboxes in box c of Form W-3c must also be 0.14 inches.
Note. More than 50% of an applicable checkbox must be covered by an “X.”
.11 All substitute Forms W-2c (Copy A) and W-3c in the red-ink format must have the form
number and form title printed on the bottom face of each form using type identical or a close
approximation to that of the official IRS form. The red-ink substitute must have the form producer’s
(not the form filer’s) EIN entered in red in place of the Cat. No. (directly to the left of “Department
of the Treasury” on Form W-2c (Copy A) and at the bottom on Form W-3c).
.12 The words “For Privacy Act and Paperwork Reduction Act Notice, see the separate
instructions.” must be printed on all Forms W-2c (Copy A) and Forms W-3c.

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.13 The Office of Management and Budget (OMB) Number must be printed on substitute Forms
W-3c and W-2c (Copy A) (on each ply) in the same location as on the official IRS forms.
.14 All substitute Forms W-3c must include the instructions that are printed on the same sheet
below the official IRS form.
.15 The appropriate SSA filing address information must be printed on the front of Form W-3c
below the body of the form as shown below.
Send this entire page with Copy A of Form W-2c to:
Social Security Administration
Direct Operations Center
P.O. Box 3333
Wilkes-Barre, PA 18767-3333
Note: If you use “Certified Mail” or an IRS-approved private delivery service to file, add
“Attn: W-2c Process, 1150 E. Mountain Dr.” to the address and change the ZIP code to
“18702-7997.” See Pub. 15 (Circular E), Employer’s Tax Guide, for a list of IRS-approved
private delivery services.
.16 The back of substitute Form W-2c (Copy A) and Form W-3c must be free of all printing.
.17 All copies must be clearly legible. Fading must be minimized to assure legibility.
.18 Chemical transfer paper is permitted for Form W-2c (Copy A) only if the following standards
are met:
•

Only chemically backed paper is acceptable for Form W-2c (Copy A). Front and back
chemically treated paper cannot be processed properly by scanning equipment.

•

Chemically transferred images must be black.

•

Carbon-coated forms are not permitted.

.19 The Government Printing Office (GPO) symbol and the Catalog Number (Cat. No.) must be
deleted from substitute Form W-2c (Copy A) and Form W-3c.
.20 The sequence for assembling the copies of Form W-2c is as follows.
•

Copy A—For Social Security Administration

•

Copy 1—For State, City, or Local Tax Department

•

Copy B—To Be Filed With Employee’s FEDERAL Tax Return

•

Copy C—For EMPLOYEE’S RECORDS

•

Copy 2—To Be Filed With Employee’s State, City, or Local Income Tax Return

•

Copy D—For Employer

Section 1.5 – Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA
.01 The SSA-approved substitute black-and-white Forms W-2c (Copy A) and W-3c are referred
to as substitute black-and-white Form W-2c (Copy A) and W-3c. Specifications for the substitute

December 26, 2023

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black-and-white Form W-2c (Copy A) and W-3c are similar to the red-ink forms (Section 4)
except for the items that follow (see Exhibits C and D). You may contact the SSA via email at
copy.a.forms@ssa.gov for more information.
Note. Exhibits are samples only and may not show the required typeface and/or font. Exhibits
must not be downloaded to meet tax obligations.
1.

Forms must be printed on 8.5 x 11-inch single-sheet paper only, not on continuous pin-fed
paper. There must be one Form W-2c (Copy A) or W-3c printed on a page.

2.

All forms and data must be printed in nonreflective black ink only.

3.

The data and forms must be programmed to print simultaneously. Forms cannot be produced
separately from wage data entries.

4.

The forms must not contain corner register marks.

5.

The forms must not contain any shaded areas including those boxes that are entirely shaded
on the red-ink forms.

6.

Identifying numbers on both Form W-2c (“44444”) and Form W-3c (“55555”) must be
preprinted in 14-point Arial bold font or a close approximation.

7.

The form numbers (“W-2c” and “W-3c”) must be in 18-point Arial font or a close
approximation.

8.

No part of the box titles or the data printed on the forms may touch any of the vertical or
horizontal lines, nor should any of the data intermingle with the box titles. The data should be
centered in the boxes.

9.

Do not print any information in the margins of the black-and-white forms (for example, do
not print “DO NOT CUT, FOLD, OR STAPLE” in the top margin of Form W-3c).

10. The word “Code” must not appear in box 12 on Form W-2c (Copy A).
11. A 4-digit vendor code (not filer code) preceded by four zeros and a slash (for example,
0000/9876) must appear in 12-point Arial font, or a close approximation, in place of the Cat.
No. to the left of “Department of the Treasury” on Form W-2c (Copy A) and in the bottom
right corner of Form W-3c.
Note. Do not display the form producer’s EIN. The vendor code will be used to identify the
form producer.
12. Do not print Catalog Numbers (Cat. No.) on either Form W-2c (Copy A) or Form W-3c.
13. Do not print dollar signs. If there are no money amounts being reported, the entire field should
be left blank.
Note. Although substitute Copy 1 of Form W-2c can be printed in black instead of the red dropout
ink, it should conform as closely as possible to Copy A of the official IRS form in content, format,
and layout in order to satisfy state and local reporting requirements.
.02 The dimensions for the substitute black-and-white Forms W-2c (Copy A) and W-3c are as
follows. See Exhibits C and D.

Bulletin No. 2023–52

1.

The top, left, and right margins on Form W-2c (Copy A) and Form W-3c must measure 1/2
(0.50) inch.

2.

The distance from the top line of Form W-3c to the bottom line of the form must measure
7 3/16 (7.19) inches.

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December 26, 2023

3.

The distance from the top line of Form W-2c (Copy A) to the bottom line of the form must
measure 9 1/3 (9.33) inches.

4.

Each box on Form W-2c (Copy A) and Form W-3c must measure 1/3 (0.33) inch in height
except as otherwise established.

5.

Box b on Form W-3c must measure one (1.00) inch in height.

6.

Box a on Form W-2c (Copy A) must measure 1 1/3 (1.33) inches in height and box 14 must
measure 5/6 (0.83) inch in height.

7.

The first three columns on the right of Form W-2c (Copy A) and Form W-3c must measure
1 9/10 (1.90) inches in width.

8.

The last column on the right of Form W-2c (Copy A) and Form W-3c must measure 1 8/10
(1.80) inches in width.

9.

The “Explain decreases here” box must measure 1/3 (0.33) inch and the “Signature” box on
Form W-3c must measure 1/2 (0.50) inch in height.

.03 You must submit samples of your black-and-white substitute Forms W-2c (Copy A) and W-3c
to the SSA. Only black-and-white substitute Forms W-2c (Copy A) and W-3c will be accepted for
approval by the SSA. All checkboxes on the dummy-data substitute black-and-white Form W-3c
must be electronically checked in box c (Kind of Payer, Kind of Employer, and Third-party sick
pay). Questions regarding other forms (that is, red-ink Forms W-2, W-2c, W-3, W-3c, 1099 series,
1096, etc.) must be directed to the IRS. Also, see IRS Publications 1141 and 1179.
.04 You will be required to send one set of blank and one set of dummy-data substitute blackand-white Form W-2c (Copy A) and W-3c for approval. Sample data entries should be filled in to
the maximum length for each box entry, preferably using numeric data or alpha data, depending
upon the type required to be entered. Include in your submission the name, telephone number, fax
number, and email address of a contact person who can answer questions regarding your sample
forms.
.05 To receive approval, you may first contact the SSA at copy.a.forms@ssa.gov to obtain a
template and further instructions. You can either submit your sample substitute black-and-white
Forms W-2c (Copy A) and Forms W-3c in a PDF version electronically for approval to the
copy.a.forms@ssa.gov or send your paper sample substitute black-and-white Forms W-2c (Copy
A) and Forms W-3c to:
Social Security Administration
Direct Operations Center
Attn: Substitute Black-and-White Copy A Forms, Room 341
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997
Send your sample forms via private mail carrier or certified mail in order to verify their receipt.
You can expect approval (or disapproval) by the SSA within 30 days of receipt of your sample
forms.
Do not mail completed Forms W-2c (Copy A) and W-3c to the Substitute Black-and-White
Forms (Copy A) address. Submitters should use the address shown on the Form W-3c.
.06 Vendor codes from the National Association of Computerized Tax Processors (NACTP) are
required by those companies producing the W-2 family of forms as part of a product for resale to
be used by multiple employers and payroll professionals. Employers developing Forms W-2c or
W-3c to be used only for their individual company require a vendor code issued by the SSA.

December 26, 2023

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.07 The 4-digit vendor code preceded by four zeros and a slash (0000/9876) must be preprinted
on the sample black-and-white substitute Forms W-2c and W-3c. Forms not containing a vendor
code will be rejected and will not be submitted for testing or approval. If you have a valid vendor
code provided to you through the NACTP, you should use that code. If you do not have a valid
vendor code, contact the SSA at copy.a.forms@ssa.gov to obtain an SSA-issued code. (Additional
information on vendor codes may be obtained from the SSA or the NACTP via email at president@
nactp.org.)
.08 If you use forms produced by a vendor and have questions concerning approval, do not
send the forms to the SSA for approval. Instead, you may contact the software vendor to obtain a
copy of SSA’s dated approval notice supplied to that vendor.

Section 1.6 – Requirements for Substitute Privately Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees
Note. Rules in Section 1.6 apply only to employee copies of Form W-2c (Copies B, C, and
2). Printers are cautioned that the paper filers who send Forms W-2c (Copy A) to the SSA must
follow the requirements in Sections 1.4 and/or 1.5 above.
.01 All employers (including those who file electronically) must furnish employees with at least
two copies of Form W-2c (three or more for employees required to file a state, city, or local income
tax return). Employee copies do not require approval as long as these requirements are followed.
.02 Chemical transfer paper for employee copies must be clearly legible, have the capability to be
photocopied, and not fade to such a degree as to preclude legibility and the ability to photocopy.
.03 The paper for all copies must be white and printed in black ink. The substitute Copy B (or its
equal), which employees are instructed to attach to their federal income tax returns, as well as all
other copies furnished to employees, should be at least 9-pound paper (basis 17 x 22-500). See
Section 1.4.02.
.04 Type must be substantially identical in size and shape to that on the official form.
.05 Substitute forms for employees need to contain only the payment boxes and captions that
are applicable. These boxes, box numbers, and box titles must, when applicable, match the IRSprinted form. In all cases, the employee name, address, and SSN, as well as the employer name,
address, and EIN, must be present.
.06 The dimensions of the boxes on these copies (Copies B, C, and 2), but not Copy A, may be
adjusted to allow space for conveying additional information. This may permit the employer to
eliminate other statements or notices that would otherwise be furnished to employees.
.07 The maximum allowable dimensions for employee copies of Form W-2c are no more than
11.00 inches deep by 8.50 inches wide. The minimum allowable dimensions for employee copies
of Form W-2c are 2.67 inches deep by 4.25 inches wide.
Note. These maximum and minimum size specifications are subject to future change.
.08 Either horizontal or vertical format is permitted for substitute employee copies of Forms W-2c.
That is, the width of the form may be either greater or less than the depth of the form.
.09 All copies of Form W-2c must clearly and prominently display the form number and the form
title together in one area of the form. It is recommended (but not required) that this be located
on the bottom left of Form W-2c. The reference to the “Department of the Treasury – Internal
Revenue Service” must be on all copies of Form W-2c. It is recommended (but not required) that
this be located on the bottom right of Form W-2c.

Bulletin No. 2023–52

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December 26, 2023

.10 If the substitute Forms W-2c are not labeled as to the disposition of the copies, then written
notification must be provided to each employee as specified below.
•

The first copy of Form W-2c (Copy B) is filed with the employee’s federal tax return.

•

The second copy of Form W-2c (Copy C) is for the employee’s records.

•

If applicable, the third copy (Copy 2) of Form W-2c is filed with the employee’s state, city,
or local income tax return.

If the substitute Forms W-2c are labeled, the forms must contain the applicable description as
stated on the official form.
.11 Instructions similar to those on the back of Form W-2c (Copy C) of the official form must be
provided to each employee.

Section 1.7 – Instructions for Employers
.01 Privately printed substitute Forms W-2c are not required to contain a copy to be retained by
employers (Copy D). However, employers must retain copies of the Forms W-2c (Copy A) filed
with SSA or have the ability to reconstruct the data for at least four years. Employers must be able
to generate a facsimile of Form W-2c (Copy A), in case of loss.
.02 If Copy D is provided for the employer, instructions contained on the back of Copy D of the
official form must appear on the back of the substitute form. If Copy D is not provided, these
instructions must be furnished to the employer on a separate statement.
.03 Only originals or compliant substitute copies of Forms W-2c (Copy A) and Forms W-3c may
be filed with the SSA. Carbon copies and photocopies are unacceptable.
.04 Employers should type or machine-print entries on plain paper forms whenever possible and
provide good quality data entries by using a high quality type face, inserting data in the middle of
blocks that are well separated from other printing and guidelines, and taking any other measures
that will guarantee clear, sharp images.
.05 Because employers must file a machine-scannable Form W-2c, they should meet the following
requirements.
•

Use 12-point Courier font or a close approximation for data entries.

•

Proportional-spaced fonts are unacceptable.

•

Do not print any data in the top margin of the forms.

.06 The employer must also provide employee copies of Forms W-2c (Copies B, C, and 2) that are
legible and able to be photocopied (by the employee).
.07 When Forms W-2c or W-3c are typed, black ink must be used with no script type, inverted
font, italics, or dual-case alpha characters.
.08 Forms W-2c (Copy A) require decimal entries for wage data. Do not print dollar signs with
money amounts on Forms W-2c (Copy A) and Form W-3c.
.09 The filer’s employer identification number (EIN) must be entered in box (b) of Form W-2c
and box (e) of Form W-3c.

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.10 The employer’s name, address, EIN, and state ID number may be preprinted.
.11 Employers must not truncate the employee’s SSN on Copy A of Forms W-2c. See the General
Instructions for Forms W-2 and W-3 for more information.

Section 1.8 – OMB Requirements for Both Red-Ink and Black-and-White Copy A and W-3c Substitute Forms
.01 The Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires the following.
•

The Office of Management and Budget (OMB) approves all IRS tax forms that are subject to
the Act.

•

Each IRS form contains (in or near the upper right corner) the OMB approval number, if
assigned—the official OMB numbers may be found on the official IRS printed forms and are
also shown on the forms in the exhibits.

•

Each IRS form (or its instructions) states:

1.

Why the IRS needs the information,

2.

How it will be used, and

3.

Whether or not the information is required to be furnished to the IRS.

.02 This information must be provided to any users of official or substitute IRS forms or
instructions.
.03 The OMB requirements for substitute IRS Form W-2c and Form W-3c are the following.
•

Any substitute form or substitute statement to a recipient must show the OMB number as it
appears on the official IRS form.

•

The OMB number for both Form W-2c (Copy A) and Form W-3c is 1545-0008 and must
appear exactly as shown on the official IRS form.

•

For any copy of Form W-2c, other than Copy A, the OMB number must use one of the
following formats.

1.

OMB No. 1545-xxxx (preferred) or

2.

OMB # 1545-xxxx (acceptable).

.04 Any substitute Form W-3c and Form W-2c (Copy A only) must state “For Privacy Act and
Paperwork Reduction Act Notice, see the separate instructions.” If no instructions are provided to
users of your forms, you must furnish them with the exact text of the Privacy Act and Paperwork
Reduction Act Notice in the General Instructions for Forms W-2 and W-3.

Section 1.9 – Order Forms and Instructions
.01 You can order official IRS Forms W-2c, Forms W-3c, and the General Instructions for Forms
W-2 and W-3 (Including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c),
online at IRS.gov/OrderForms.
Only contact the IRS, not the SSA, for forms.

Bulletin No. 2023–52

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December 26, 2023

.02 Copies of Form W-2c (Copy A) and Form W-3c downloaded from IRS.gov cannot be used
for filing with the SSA. These copies of Forms W-2c and W-3c are for information purposes only.

Section 1.10 – Effect on Other Documents
.01 Revenue Procedure 2016-20, 2016-13 I.R.B. dated March 28, 2016, (reprinted as Publication
1223, Revised 03-2016), is superseded.

Section 1.11 – Exhibits
Exhibits A through D provide the general measurements for Forms W-2c and W-3c as discussed
in this revenue procedure. Exhibits are samples only and may not show the required typeface and/
or font. Exhibits must not be downloaded to meet tax obligations. Certain exhibits show a 0000/
in the location designated for your vendor code. See Section 1.5.01, item 11, and Section 1.5.06
for more information.
Exhibit A — Form W-2c (Copy A) (Red-Ink) 08-2023
Exhibit B — Form W-3c (Red-Ink) 08-2023
Exhibit C — Form W-2c (Copy A) (Substitute Laser/ Black-and-White) 08-2023
Exhibit D — Form W-3c (Substitute Laser/Black-and-White) 08-2023

December 26, 2023

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26 CFR 601.201: Rulings and determination letters.
(Also: Part I, Sections 832, 846; 1.832-4, 1.846-1.)

Rev. Proc. 2023-41
SECTION 1. PURPOSE
This revenue procedure prescribes discount factors for the 2023 accident year
for use by insurance companies in computing discounted unpaid losses under
§ 846 of the Internal Revenue Code and
discounted estimated salvage recoverable
under § 832. This revenue procedure also
provides, for convenience, discount factors for losses incurred in the 2022 accident year and earlier accident years for use
in taxable years beginning in 2023. The
discount factors for accident years before
2023 were prescribed in earlier revenue
procedures. See, e.g., Rev. Proc. 202310, 2023-3 I.R.B. 411. For background
concerning the loss payment patterns and
application of the discount factors, see
Rev. Proc. 2023-10.
SECTION 2. SCOPE
This revenue procedure applies to any
insurance company that is required to
discount unpaid losses under § 846 for a

line of business using the discount factors
published by the Secretary. This revenue
procedure also applies to any insurance
company that is required to discount estimated salvage recoverable under § 832.
SECTION 3. DISCOUNT FACTORS
FOR THE 2023 ACCIDENT YEAR
.01 The tables in this section 3 separately present for each line of business
the discount factors for losses incurred in
the 2023 accident year for use by insurance companies in computing discounted
unpaid losses under § 846 and estimated
salvage recoverable under § 832. The discount factors presented in this section are
generally determined by using the applicable interest rate for 2023 under § 846(c),
which is 2.90 percent, determined using
semiannual compounding. The exceptions
are the discount factors for long-tail lines
of business determined using the composite method described in section V of
Notice 88-100, 1988-2 C.B. 439. These
discount factors are to be used in taxable years beginning in 2033 for losses
incurred in accident years not separately
reported on the annual statement for 2033.
For taxable years beginning after 2033,
the discount factors to be used for losses
incurred in the 2023 accident year will

be those determined using the composite
method for later accident years. These
discount factors will be published in later
years. All discount factors are determined
by assuming that all loss payments occur
in the middle of the calendar year.
.02 Section V of Notice 88-100 sets
forth a composite method for computing
discounted unpaid losses for accident
years that are not separately reported on
the annual statement. Tables 1 and 2 separately provide discount factors for insurance companies that have elected to use
the composite method of Notice 88-100.
See Rev. Proc. 2002-74, 2002-2 C.B. 980.
The discount factors computed using the
composite method are unrelated to the
composite discount factors referred to in
§ 1.846-1(b)(1)(ii) and (4) of the Income
Tax Regulations, which apply to lines of
business for which the Secretary has not
published discount factors. The composite discount factors for use with respect
to such lines of business are labelled
“Short-Tail Composite” (in Table 1, part
B) and “Long-Tail Composite” (in Table
2, part B). The “Miscellaneous Casualty”
discount factors referenced in § 1.8461(b)(2) are not set forth in tables but are
equivalent to the “Short-Tail Composite”
discount factors.

Table 1 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2023 in Short-Tail Lines of Business

Taxable Year
Beginning in

Auto Physical
Damage

Fidelity/Surety

Financial
Guaranty/
Mortgage
Guaranty

2023

98.3826

95.7477

95.2511

95.8842

96.9968

2024

97.1719

97.1719

97.1719

97.1719

97.1719

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

International

Other*

Taxpayer Not Using Composite Method
Years after 2024

98.5707

Taxpayer Using the Composite Method
2025
Years after 2025

98.5707

Use composite method discount factors published for the relevant accident year.**

*For the Accident and Health line of business (other than disability income or credit disability insurance), the discount
factor for taxable year 2023 is 98.5707 percent. This is also the discount factor used in later taxable years for taxpayers
not using the composite method. For taxpayers using the composite method, the discount factor for losses incurred in
2023 is the discount factor published for Accident and Health lines of business for losses incurred in the accident year
coinciding with the taxable year.
**The relevant accident year is the accident year that is two years prior to the specified taxable year.

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December 26, 2023

Table 1 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2023 in Short-Tail Lines of Business

Taxable
Year
Beginning
in

Reinsurance Nonproportional
Assumed
Financial Lines

Reinsurance Nonproportional
Assumed
Liability

Reinsurance Nonproportional
Assumed
Property

Special Property
(Fire,
Allied Lines,
Inland Marine,
Earthquake,
Burglary & Theft)

2023

95.8574

94.9260

96.2110

97.5931

98.3742

97.2238

2024

97.1719

97.1719

97.1719

97.1719

97.1719

97.1719

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

Warranty

Short-Tail
Composite

Taxpayer Not Using Composite Method
Years after
2024

98.5707

Taxpayer Using the Composite Method
2025

98.5707

Years after
2025

Use composite method discount factors published for the relevant accident year.**

**The relevant accident year is the accident year that is two years prior to the specified taxable year.

December 26, 2023

1608

Bulletin No. 2023–52

Table 2 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2023 in Long-Tail Lines of Business

Taxable Year
Beginning in

Commercial
Auto/Truck
Liability/
Medical

Medical
Professional
Liability Claims-Made

Medical
Professional
Liability Occurrence

Multiple Peril
Lines

Other
Liability Claims-Made

Other
Liability Occurrence

2023

94.0669

91.7012

86.8831

95.4382

91.4237

90.0155

2024

94.6657

92.7807

88.7877

93.8732

92.3628

90.8746

2025

95.2185

93.1025

90.1803

93.9066

92.4061

91.5784

2026

95.5234

93.9577

91.5512

93.8414

92.6133

91.9264

2027

95.4250

93.7878

92.3543

93.6275

92.5473

92.2284

2028

94.9588

94.4205

92.7420

93.8836

92.5915

91.2169

2029

94.9803

93.9949

93.1270

93.9644

92.2397

91.1996

2030

95.4526

94.8602

92.9930

95.7120

93.9160

91.9425

2031

96.4116

96.1752

94.7992

96.5370

96.4131

92.9346

2032

98.2559

97.6318

96.4691

97.9721

96.9986

94.7538

Taxpayer Not Using Composite Method
2033

98.5707

98.5707

97.7548

98.5707

98.3447

96.0789

2034

98.5707

98.5707

98.5707

98.5707

98.5707

97.3969

Years after
2034

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

98.5707

97.9643

98.5876

98.3699

97.0305

Taxpayer Using the Composite Method
2033

98.5707

Years after
2033

Use composite method discount factors published for the relevant accident year.**

**The relevant accident year is the accident year that is ten years prior to the specified taxable year.

Bulletin No. 2023–52

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December 26, 2023

Table 2 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2023 in Long-Tail Lines of Business
Taxable
Year Beginning
in

Private
Passenger
Auto Liability/
Medical

Products
Liability Claims-Made

Products
Liability Occurrence

Workers'
Compensation

Long-Tail
Composite

2023

95.8562

89.1780

88.5317

88.9551

93.4051

2024

95.5202

90.4947

89.9028

87.4781

92.7019

2025

95.6012

90.7369

91.0112

86.8945

92.4617

2026

95.5203

89.7998

91.5875

86.4217

91.8247

2027

94.6286

91.2853

91.9130

86.7149

91.5295

2028

94.0135

92.8707

92.3814

86.1127

91.0702

2029

94.5794

94.5952

93.2984

86.7030

91.3120

2030

94.7253

95.0313

93.5893

88.1853

92.6078

2031

95.4710

96.2767

94.6085

89.5932

93.9475

2032

97.6138

97.9342

96.6089

90.5104

95.2242

Taxpayer Not Using Composite Method
2033

98.5707

98.5707

97.8975

91.7803

96.5456

2034

98.5707

98.5707

98.5707

93.0739

97.8319

2035

98.5707

98.5707

98.5707

94.3915

98.5707

2036

98.5707

98.5707

98.5707

95.7327

98.5707

2037

98.5707

98.5707

98.5707

97.0957

98.5707

2038

98.5707

98.5707

98.5707

98.4690

98.5707

Years after 2038

98.5707

98.5707

98.5707

98.5707

98.5707

96.6888

98.2220

92.8090

96.9820

Taxpayer Using the Composite Method
2033
Years after 2033

98.5707

Use composite method discount factors published for the relevant accident year.**

**The relevant accident year is the accident year that is ten years prior to the specified taxable year.
SECTION 4. DISCOUNT FACTORS
FOR TAXABLE YEARS BEGINNING
IN 2023
.01 The tables in this section 4 present separately for each line of business
discount factors for losses incurred in the
2023 accident year and earlier accident
years for use by insurance companies in
computing discounted unpaid losses under
§ 846 and estimated salvage recoverable

December 26, 2023

under § 832 in taxable years beginning in
2023.
.02 Tables 3 and 4 separately provide
discount factors for insurance companies
that have elected to use the composite
method of Notice 88-100. See Rev. Proc.
2002-74. The discount factors computed
using the composite method are unrelated to the composite discount factors
referred to in § 1.846-1(b)(1)(ii) and
(4), which apply to lines of business for

1610

which the Secretary has not published
discount factors. The composite discount factors for use with respect to such
lines of business are labelled “ShortTail Composite” (in Table 3, part B)
and “Long-Tail Composite” (in Table 4,
part B). The “Miscellaneous Casualty”
discount factors referenced in § 1.8461(b)(2) are not set forth in tables but are
equivalent to the “Short-Tail Composite”
discount factors.

Bulletin No. 2023–52

Table 3 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2023
Short-Tail Lines of Business

Accident Year

Auto Physical
Damage

Fidelity/Surety

Financial
Guaranty/
Mortgage
Guaranty

2023

98.3826

95.7477

95.2511

95.8842

96.9968

2022

97.3911

97.3911

97.3911

97.3911

97.3911

International

Other*

Taxpayer Not Using Composite Method
2021

98.5999

98.5999

98.5999

98.5999

98.5999

2020

98.4834

98.4834

98.4834

98.4834

98.4834

2019

98.4785

98.4785

98.4785

98.4785

98.4785

Years before 2019

98.5513

98.5513

98.5513

98.5513

98.5513

98.5999

98.5999

98.5999

98.5999

Taxpayer Using the Composite Method
Years before 2022

98.5999

*For the Accident and Health line of business (other than disability income or credit disability insurance), the discount
factor for taxable year 2023 is 98.5707 percent.

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Table 3 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2023
Short-Tail Lines of Business

Accident
Year

Reinsurance Nonproportional
Assumed
Financial Lines

Reinsurance Nonproportional
Assumed
Liability

Reinsurance Nonproportional
Assumed
Property

Special
Property
(Fire,
Allied Lines,
Inland
Marine,
Earthquake,
Burglary &
Theft)

2023

95.8574

94.9260

96.2110

97.5931

98.3742

97.2238

2022

97.3911

97.3911

97.3911

97.3911

97.3911

97.3911

Warranty

Short-Tail
Composite

Taxpayer Not Using Composite Method
2021

98.5999

98.5999

98.5999

98.5999

98.5999

98.5999

2020

98.4834

98.4834

98.4834

98.4834

98.4834

98.4834

2019

98.4785

98.4785

98.4785

98.4785

98.4785

98.4785

Years
before 2019

98.5513

98.5513

98.5513

98.5513

98.5513

98.5513

98.5999

98.5999

98.5999

98.5999

98.5999

Taxpayer Using the Composite Method
Years
before 2022

98.5999

December 26, 2023

1612

Bulletin No. 2023–52

Table 4 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2023
Long-Tail Lines of Business

Accident Year

Commercial
Auto/Truck
Liability/
Medical

Medical
Professional
Liability Claims-Made

Medical
Professional
Liability Occurrence

Multiple Peril
Lines

Other
Liability Claims-Made

Other
Liability Occurrence

2023

94.0669

91.7012

86.8831

95.4382

91.4237

90.0155

2022

95.0679

93.3168

89.6041

94.3300

92.9253

91.5404

2021

95.4344

93.0842

90.7809

94.1554

92.4448

91.0405

2020

95.1096

92.8346

91.4580

92.9075

91.9007

90.5269

2019

94.9707

92.9600

92.4216

91.0050

91.7240

90.2502

2018

95.0498

93.3035

93.5069

91.6039

92.6040

90.7542

2017

95.3260

94.2423

94.3189

91.3154

93.0770

90.7788

2016

94.9804

95.1291

94.9993

91.0177

93.8378

91.9830

2015

96.4102

96.0160

96.1220

93.5200

94.9264

92.6228

2014

98.3585

97.7503

97.7902

94.8530

96.6876

94.4974

Taxpayer Not Using the Composite Method
2013

98.5513

98.5513

98.5513

96.1895

98.0033

95.8511

2012

98.5513

98.5513

98.5513

97.5045

98.5513

97.2176

Years before
2012

98.5513

98.5513

98.5513

98.5513

98.5513

98.5513

98.5513

98.5513

96.9185

98.0920

96.7300

Taxpayer Using the Composite Method
Years before
2014

98.5513

Bulletin No. 2023–52

1613

December 26, 2023

Table 4 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Year(s) Beginning in 2023
Long-Tail Lines of Business

Accident Year

Private
Passenger
Auto Liability/
Medical

Products
Liability Claims-Made

Products
Liability Occurrence

Workers'
Compensation

Long-Tail
Composite

2023

95.8562

89.1780

88.5317

88.9551

93.4051

2022

95.8589

91.1883

90.6396

88.3566

93.2372

2021

95.4048

88.4963

90.1990

85.8758

91.7095

2020

94.6635

83.1315

90.8125

83.3180

89.8805

2019

93.9560

84.4151

89.4118

82.6909

88.2413

2018

94.2824

86.4184

89.9309

82.8905

88.6421

2017

94.5205

87.8040

90.8527

83.2567

88.6258

2016

95.0550

89.0388

91.8072

84.1036

89.1661

2015

95.6473

90.2969

92.1992

84.7150

90.3858

2014

97.7282

91.5785

94.4133

86.5946

92.1457

Taxpayer Not Using the Composite Method
2013

98.5513

92.8838

95.7739

87.8065

93.4541

2012

98.5513

94.2124

97.1571

89.0414

94.7812

2011

98.5513

95.5629

98.5513

90.2995

96.1195

2010

98.5513

96.9299

98.5513

91.5813

97.4421

2009

98.5513

98.2868

98.5513

92.8867

98.5513

2008

98.5513

98.5513

98.5513

94.2154

98.5513

2007

98.5513

98.5513

98.5513

95.5661

98.5513

2006

98.5513

98.5513

98.5513

96.9334

98.5513

2005

98.5513

98.5513

98.5513

98.2913

98.5513

Years before 2005

98.5513

98.5513

98.5513

98.5513

98.5513

94.7288

96.6903

91.2579

95.0968

Taxpayer Using the Composite Method
Years before 2014

98.5513

SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue

December 26, 2023

procedure is James G. Carpino of the Office
of Associate Chief Counsel (Financial
Institutions & Products). For further information regarding this revenue procedure

1614

contact Mr. Carpino at (202) 317-6995
(not a toll-free number).

Bulletin No. 2023–52

Part IV
Deletions From Cumulative
List of Organizations,
Contributions to Which are
Deductible Under Section
170 of the Code
Announcement 2023-35
The Internal Revenue Service has
revoked its determination that the organization listed below qualifies as an organization described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.
Generally, the IRS will not disallow
deductions for contributions made to a
listed organization on or before the date

of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the IRS is not precluded from disallowing a deduction for
any contributions made after an organization ceases to qualify under section 170(c)
(2) if the organization has not timely filed
a suit for declaratory judgment under section 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.
If on the other hand a suit for declaratory judgment has been timely filed,
contributions from individuals and organizations described in section 170(c)(2)

NAME OF ORGANIZATION
CHILDRENS CANCER COOPERATIVE INC

Bulletin No. 2023–52

that are otherwise allowable will continue
to be deductible. Protection under section
7428(c) would begin on and would end
on the date the court first determines the
organization is not described in section
170(c)(2) as more particularly set for in
section 7428(c)(1). For individual contributors, the maximum deduction protected
is $1,000, with a husband and wife treated
as one contributor. This benefit is not
extended to any individual, in whole or in
part, for the acts or omissions of the organization that were the basis for revocation.
The Following organization is no longer qualified as an organization exempt
from income tax under Internal Revenue
Code (the “Code”) Section 501(a) as an
organization described in Section 501(c)
(3) of the Code:

EFFECTIVE DATE OF
REVOCATION
1/1/2020

1615

LOCATION
SUMMERVILLE, SC

December 26, 2023

Definition of Energy
Property and Rules
Applicable to the Energy
Credit
REG-132569-17
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking, public hearing, and partial withdrawal
of notice of proposed rulemaking.
SUMMARY: This document contains proposed regulations that would amend the
regulations relating to the energy credit
for the taxable year in which eligible
energy property is placed in service. This
document also withdraws and reproposes,
for additional clarity, portions of previously proposed regulations regarding the
increased energy credit amount available if
prevailing wage and registered apprenticeship requirements are met. In connection
with the Inflation Reduction Act of 2022,
the proposed regulations would: update the
types of energy property eligible for the
energy credit, including additional types of
energy property added by that law; clarify
the application of new credit transfer rules
to the energy credit recapture rules applicable to failures to satisfy the prevailing
wage requirements, including notification
requirements for eligible taxpayers; and
include qualified interconnection costs
in the basis of some lower-output energy
properties. The proposed regulations would
also provide additional requirements and
rules generally applicable to energy property, such as rules regarding: functionally
interdependent components; property that
is an integral part of an energy property;
application of an “80/20 Rule” to retrofitted
energy property; dual use property; separate ownership of components of an energy
property; property that could be eligible
for multiple Federal income tax credits;
and the election to treat qualified facilities
eligible for the renewable electricity production credit instead as property eligible
for the energy credit. The proposed regulations would impact taxpayers who invest
in energy property eligible for the energy
credit.

December 26, 2023

DATES: Written or electronic comments
must be received by January 22, 2024. A
public hearing on these proposed regulations is scheduled to be held on February
20, 2024, at 10 a.m. ET. Requests to speak
and outlines of topics to be discussed
at the public hearing must be received
by January 22, 2024. If no outlines are
received by January 22, 2024, the public
hearing will be cancelled. Requests to
attend the public hearing must be received
by 5 p.m. on February 15, 2024. The public hearing will be made accessible to
people with disabilities. Requests for special assistance during the hearing must be
received by 5 p.m. on February 14, 2024.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically. Submit electronic submissions via the Federal eRulemaking Portal
at www.regulations.gov (indicate IRS and
REG-132569-17) by following the online
instructions for submitting comments.
Once submitted to the Federal eRulemaking Portal, comments cannot be edited or
withdrawn. The Department of Treasury
(Treasury Department) and the IRS will
publish for public availability any comments submitted, whether electronically
or on paper, to the IRS’s public docket.
Send
paper
submissions
to:
CC:PA:LPD:PR
(REG-132569-17),
Room 5203, Internal Revenue Service,
P.O. Box 7604, Ben Franklin Station,
Washington DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed regulations, Office of Associate
Chief Counsel (Passthroughs & Special
Industries) at (202) 317-6853 (not a tollfree number); concerning submissions of
comments or the public hearing, Vivian
Hayes, (202) 317-6901 (not toll-free number) or by email to publichearings@irs.
gov (preferred).
SUPPLEMENTARY INFORMATION:
Background
This notice of proposed rulemaking
consists of several proposed amendments
to the existing Income Tax Regulations
(26 CFR part 1) under section 48 of the

1616

Internal Revenue Code (Code) addressing
the energy credit determined under section 48 (section 48 credit) for purposes of
sections 38 and 46 of the Code (proposed
regulations). This notice of proposed
rulemaking also withdraws and reproposes
portions of another notice of proposed
rulemaking (REG-100908-23) proposing
regulations under section 48 that were
published in the Federal Register (88 FR
60018) on August 30, 2023. This notice of
proposed rulemaking would also propose
additional regulations under section 6418
of the Code to supplement a notice of
proposed rulemaking (REG-101610-23)
published in the Federal Register (88 FR
40496) on June 21, 2023.
Section 38 allows certain business
credits against the Federal income tax
imposed by chapter 1 of the Code (chapter 1). Among the credits allowed by
section 38 are the investment credit determined under section 46, which includes
the energy credit determined under section 48. See sections 38(b)(1) and 46(2).
Section 48(a)(1) generally provides that
the energy credit for any taxable year is
the energy percentage of the basis of each
energy property placed in service during
such taxable year. For most types of
energy property, el

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A7e5ed54319a54c71. Public record. Not legal advice.