Bulletin No. 2022–36

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HIGHLIGHTS

OF THIS ISSUE

Bulletin No. 2022–36

September 6, 2022

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE, INCOME TAX

EXEMPT ORGANIZATIONS

Notice 2022-36, page 188.

This notice provides systemic penalty relief to taxpayers for certain civil penalties with respect to 2019 and

2020 returns. The relevant penalties will be waived or,

to the extent previously assessed, abated, refunded, or

credited, as appropriate.

Announcement 2022-18, page 190.

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(b)(1)(A).

EMPLOYEE PLANS

Notice 2022-35, page 184.

Notice 2022-35 provides guidance on the corporate

bond monthly yield curve, the corresponding spot segment rates used under §417(e)(3), and the 24-month

average segment rates under §430(h)(2) of the Internal Revenue Code. In addition, this notice provides

guidance as to the interest rate on 30-year Treasury

securities under §417(e)(3)(A)(ii)(II) as in effect for plan

years beginning before 2008 and the 30-year Treasury

weighted average rate under §431(c)(6)(E)(ii)(I).

Finding Lists begin on page ii.

Announcement 2022-19, page 191.

Serves notice to potential donors of a stipulated decision by the United States Tax Court in declaratory judgment proceedings under Section 7428.

INCOME TAX

Rev. Rul. 2022-17, page 182.

Federal rates; adjusted federal rates; adjusted federal

long-term rate, and the long-term tax exempt rate. For

purposes of sections 382, 1274, 1288, 7872 and

other sections of the Code, tables set forth the rates

for September 2022.

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.

September 6, 2022

Bulletin No. 2022–36

Part I

Section 1274.—

Determination of Issue

Price in the Case of Certain

Debt Instruments Issued for

Property

(Also Sections 42, 280G, 382, 467, 468, 482, 483,

1288, 7520, 7872.)

Rev. Rul. 2022-17

This revenue ruling provides various prescribed rates for federal income

AFR

110% AFR

120% AFR

130% AFR

AFR

110% AFR

120% AFR

130% AFR

150% AFR

175% AFR

AFR

110% AFR

120% AFR

130% AFR

Short-term adjusted AFR

Mid-term adjusted AFR

Long-term adjusted AFR

September 6, 2022

tax purposes for September 2022 (the

current month). Table 1 contains the

short-term, mid-term, and long-term

applicable federal rates (AFR) for the

current month for purposes of section

1274(d) of the Internal Revenue Code.

Table 2 contains the short-term, midterm, and long-term adjusted applicable federal rates (adjusted AFR) for the

current month for purposes of section

1288(b). Table 3 sets forth the adjusted

federal long-term rate and the long-term

tax-exempt rate described in section

382(f). Table 4 contains the appropriate

percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in

service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service

after July 30, 2008, shall not be less

than 9%. Finally, Table 5 contains the

federal rate for determining the present

value of an annuity, an interest for life

or for a term of years, or a remainder or

a reversionary interest for purposes of

section 7520.

REV. RUL. 2022-17 TABLE 1

Applicable Federal Rates (AFR) for September 2022

Period for Compounding

Annual

Semiannual

Quarterly

Short-term

3.05%

3.03%

3.02%

3.36%

3.33%

3.32%

3.67%

3.64%

3.62%

3.98%

3.94%

3.92%

Mid-term

2.93%

2.91%

2.90%

3.23%

3.20%

3.19%

3.52%

3.49%

3.47%

3.82%

3.78%

3.76%

4.42%

4.37%

4.35%

5.15%

5.09%

5.06%

Long-term

3.14%

3.12%

3.11%

3.46%

3.43%

3.42%

3.77%

3.74%

3.72%

4.10%

4.06%

4.04%

REV. RUL. 2022-17 TABLE 2

Adjusted AFR for September 2022

Period for Compounding

Annual

Semiannual

2.31%

2.30%

2.22%

2.21%

2.38%

2.37%

182

Monthly

3.01%

3.31%

3.61%

3.91%

2.89%

3.18%

3.46%

3.75%

4.33%

5.04%

3.10%

3.41%

3.71%

4.03%

Quarterly

2.29%

2.20%

2.36%

Monthly

2.29%

2.20%

2.36%

Bulletin No. 2022–36

REV. RUL. 2022-17 TABLE 3

Rates Under Section 382 for September 2022

Adjusted federal long-term rate for the current month

Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal

long-term rates for the current month and the prior two months.)

2.38%

2.54%

REV. RUL. 2022-17 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for September 2022

Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July

30, 2008, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income housing credit

7.70%

Appropriate percentage for the 30% present value low-income housing credit

3.30%

REV. RUL. 2022-17 TABLE 5

Rate Under Section 7520 for September 2022

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a

remainder or reversionary interest

Section 42.—Low-Income

Housing Credit

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

September 2022. See Rev. Rul. 2022-17, page 182.

Section 280G.—Golden

Parachute Payments

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

September 2022. See Rev. Rul. 2022-17, page 182.

Section 382.—Limitation

on Net Operating Loss

Carryforwards and

Certain Built-In Losses

Following Ownership

Change

The adjusted applicable federal long-term rate

is set forth for the month of September 2022. See

Rev. Rul. 2022-17, page 182.

Section 467.—Certain

Payments for the Use of

Property or Services

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

September 2022. See Rev. Rul. 2022-17, page 182.

Section 468.—Special

Rules for Mining and Solid

Waste Reclamation and

Closing Costs

The applicable federal short-term rates are set

forth for the month of September 2022. See Rev.

Rul. 2022-17, page 182.

Section 482.—Allocation

of Income and Deductions

Among Taxpayers

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

September 2022. See Rev. Rul. 2022-17, page 182.

3.60%

Section 483.—Interest on

Certain Deferred Payments

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

September 2022. See Rev. Rul. 2022-17, page 182.

Section 1288.—Treatment

of Original Issue Discount

on Tax-Exempt Obligations

The adjusted applicable federal short-term,

mid-term, and long-term rates are set forth for the

month of September 2022. See Rev. Rul. 2022-17,

page 182.

Section 7520.—Valuation

Tables

The applicable federal mid-term rates are set

forth for the month of September 2022. See Rev.

Rul. 2022-17, page 182.

Section 7872.—Treatment

of Loans With BelowMarket Interest Rates

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

September 2022. See Rev. Rul. 2022-17, page 182.

Bulletin No. 2022–36

183

September 6, 2022

Part III

Update for Weighted

Average Interest Rates,

Yield Curves, and Segment

Rates

Notice 2022-35

This notice provides guidance on the

corporate bond monthly yield curve, the

corresponding spot segment rates used

under § 417(e)(3), and the 24-month

average segment rates under § 430(h)

(2) of the Internal Revenue Code. In

addition, this notice provides guidance as to the interest rate on 30-year

Treasury securities under § 417(e)(3)

(A)(ii)(II) as in effect for plan years

beginning before 2008 and the 30-year

Treasury weighted average rate under

§ 431(c)(6)(E)(ii)(I).

YIELD CURVE AND SEGMENT

RATES

Section 430 specifies the minimum

funding requirements that apply to

Applicable Month

August 2022

single-employer plans (except for CSEC

plans under § 414(y)) pursuant to § 412.

Section 430(h)(2) specifies the interest rates that must be used to determine

a plan’s target normal cost and funding

target. Under this provision, present

value is generally determined using three

24-month average interest rates (“segment rates”), each of which applies to

cash flows during specified periods. To

the extent provided under § 430(h)(2)(C)

(iv), these segment rates are adjusted by

the applicable percentage of the 25-year

average segment rates for the period ending September 30 of the year preceding

the calendar year in which the plan year

begins.1 However, an election may be

made under § 430(h)(2)(D)(ii) to use the

monthly yield curve in place of the segment rates.

Notice 2007-81, 2007-44 I.R.B. 899,

provides guidelines for determining the

monthly corporate bond yield curve, and

the 24-month average corporate bond

segment rates used to compute the target

normal cost and the funding target. Consistent with the methodology specified in

Notice 2007-81, the monthly corporate

bond yield curve derived from July 2022

data is in Table 2022-7 at the end of this

notice. The spot first, second, and third

segment rates for the month of July 2022

are, respectively, 3.67, 4.67, and 4.73

The 24-month average segment rates

determined under § 430(h)(2)(C)(i)

through (iii) must be adjusted pursuant

to § 430(h)(2)(C)(iv) to be within the

applicable minimum and maximum percentages of the corresponding 25-year

average segment rates. The 25-year average segment rates for plan years beginning in 2021 and 2022 were published

in Notice 2020-72, 2020-40 I.R.B. 789,

and Notice 2021-54, 2021-41 I.R.B. 457,

respectively.

24-MONTH AVERAGE CORPORATE

BOND SEGMENT RATES

The three 24-month average corporate bond segment rates applicable for

August 2022 without adjustment for the

25-year average segment rate limits are

as follows:

24-Month Average Segment Rates Without 25-Year Average Adjustment

First Segment

Second Segment

Third Segment

1.27

2.99

3.51

25-YEAR AVERAGE SEGMENT

RATES

Section 9706(a) of the American Rescue Plan Act of 2021, Pub. L. 117-2 (the

ARP), which was enacted on March 11,

2021, changed the 25-year average segment rates and the applicable minimum

and maximum percentages used under

§ 430(h)(2)(C)(iv) of the Code to adjust

the 24-month average segment rates.2 Prior

to this change, the applicable minimum

and maximum percentages were 85%

and 115% for a plan year beginning in

2021, and 80% and 120% for a plan year

beginning in 2022, respectively. After this

change, the applicable minimum and maximum percentages are 95% and 105% for

a plan year beginning in 2021 or 2022.

In addition, pursuant to this change, any

25-year average segment rate that is less

than 5% is deemed to be 5%.3

Pursuant to § 9706(c)(1) of the ARP,

these changes apply with respect to plan

years beginning on or after January 1,

2020. However, § 9706(c)(2) of the ARP

provides that a plan sponsor may elect not

to have these changes apply to any plan

year beginning before January 1, 2022.4

The adjusted 24-month average segment rates set forth in the chart below

reflect § 430(h)(2)(C)(iv) of the Code

as amended by § 9706(a) of the ARP.

These adjusted 24-month average segment rates apply only for plan years for

which an election under § 9706(c)(2) of

Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount

of the full funding limitation under § 433(c)(7)(C)).

Section 80602 of the Infrastructure Investment and Jobs Act, Pub. L. 117-58, makes further changes to the time periods for which specified applicable minimum and maximum percentages

apply.

Pursuant to this change, the 25-year averages of the first segment rate for 2021 and 2022 are increased to 5.00% because those 25-year averages as originally published are below 5.00%.

This election may be made either for all purposes for which the amendments under § 9706 of the ARP apply or solely for purposes of determining the adjusted funding target attainment

percentage under § 436 of the Code for the plan year.

September 6, 2022

184

Bulletin No. 2022–36

the ARP is not in effect. For a plan year for

which such an election does not apply, the

24-month averages applicable for August

2022, adjusted to be within the applicable minimum and maximum percentages

of the corresponding 25-year average

segment rates in accordance with § 430(h)

(2)(C)(iv) of the Code, are as follows:

Adjusted 24-Month Average Segment Rates

For Plan Years

Beginning In

Applicable Month

First Segment

Second Segment

Third Segment

2021

August 2022

4.75

5.36

6.11

2022

August 2022

4.75

5.18

5.92

The adjusted 24-month average segment rates set forth in the chart below do

not reflect the changes to § 430(h)(2)(C)

(iv) of the Code made by § 9706(a) of the

ARP. These adjusted 24-month average

segment rates apply only for plan years

for which an election under § 9706(c)(2)

of the ARP is in effect. For a plan year

for which such an election applies, the

24-month averages applicable for July

2022, adjusted to be within the applicable

minimum and maximum percentages of

the corresponding 25-year average segment rates in accordance with § 430(h)(2)

(C)(iv) of the Code, are as follows:

Pre-ARP Adjusted 24-Month Average Segment Rates

For Plan Years

Beginning In

Applicable Month

First Segment

Second Segment

Third Segment

2021

August 2022

3.32

4.79

5.47

30-YEAR TREASURY SECURITIES

INTEREST RATES

Section 431 specifies the minimum

funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum

amount for the full-funding limitation

described in § 431(c)(6)(A), based on the

plan’s current liability. Section 431(c)(6)

(E)(ii)(I) provides that the interest rate

used to calculate current liability for this

purpose must be no more than 5 percent

above and no more than 10 percent below

the weighted average of the rates of interest on 30-year Treasury securities during

the four-year period ending on the last

day before the beginning of the plan year.

Notice 88-73, 1988-2 C.B. 383, provides

guidelines for determining the weighted

average interest rate. The rate of interest

on 30-year Treasury securities for July

For Plan Years Beginning In

Treasury Weighted Average Rates

30-Year Treasury Weighted Average

Permissible Range 90% to 105%

August 2022

2.19

1.97 to 2.30

under § 417(e)(3)(D) are segment rates

computed without regard to a 24-month

average. Notice 2007-81 provides guidelines for determining the minimum

present value segment rates. Pursuant to

that notice, the minimum present value

segment rates determined for July 2022

are as follows:

MINIMUM PRESENT VALUE

SEGMENT RATES

In general, the applicable interest rates

Month

July 2022

Bulletin No. 2022–36

2022 is 3.10 percent. The Service determined this rate as the average of the daily

determinations of yield on the 30-year

Treasury bond maturing in May 2052. For

plan years beginning in August 2022, the

weighted average of the rates of interest

on 30-year Treasury securities and the

permissible range of rates used to calculate current liability are as follows:

Minimum Present Value Segment Rates

First Segment

Second Segment

3.67

4.67

Third Segment

4.73

185

September 6, 2022

DRAFTING INFORMATION

The principal author of this notice is

Tom Morgan of the Office of Associate

September 6, 2022

Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment

Taxes). However, other personnel from

the IRS participated in the development

186

of this guidance. For further information

regarding this notice, contact Mr. Morgan

at 202-317-6700 or Osmundo Bernabe at

626-927-1344 (not a toll-free number).

Bulletin No. 2022–36

Table 2022-7

Monthly Yield Curve for July 2022

Derived from June 2022 Data

Maturity

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

16.0

16.5

17.0

17.5

18.0

18.5

19.0

19.5

20.0

Yield

2.98

3.26

3.50

3.67

3.78

3.83

3.86

3.89

3.92

3.97

4.02

4.08

4.15

4.22

4.29

4.37

4.44

4.50

4.57

4.62

4.67

4.72

4.76

4.79

4.82

4.84

4.86

4.87

4.88

4.89

4.88

4.87

4.86

4.85

Maturity

20.5

21.0

21.5

22.0

22.5

23.0

23.5

24.0

24.5

25.0

25.5

26.0

26.5

27.0

27.5

28.0

28.5

29.0

29.5

30.0

30.5

31.0

31.5

32.0

32.5

33.0

33.5

34.0

34.5

35.0

35.5

36.0

36.5

37.0

37.5

38.0

38.5

39.0

39.5

40.0

Bulletin No. 2022–36

Yield

4.84

4.83

4.82

4.81

4.80

4.79

4.78

4.77

4.76

4.75

4.74

4.73

4.72

Maturity

40.5

41.0

41.5

42.0

42.5

43.0

43.5

44.0

44.5

45.0

45.5

46.0

46.5

47.0

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

52.0

52.5

53.0

53.5

54.0

54.5

55.0

55.5

56.0

56.5

57.0

57.5

58.0

58.5

59.0

59.5

60.0

Yield

4.72

4.71

4.70

4.69

187

Maturity

60.5

61.0

61.5

62.0

62.5

63.0

63.5

64.0

64.5

65.0

65.5

66.0

66.5

67.0

67.5

68.0

68.5

69.0

69.5

70.0

70.5

71.0

71.5

72.0

72.5

73.0

73.5

74.0

74.5

75.0

75.5

76.0

76.5

77.0

77.5

78.0

78.5

79.0

79.5

80.0

Yield

4.69

4.68

4.67

Maturity

80.5

81.0

81.5

82.0

82.5

83.0

83.5

84.0

84.5

85.0

85.5

86.0

86.5

87.0

87.5

88.0

88.5

89.0

89.5

90.0

90.5

91.0

91.5

92.0

92.5

93.0

93.5

94.0

94.5

95.0

95.5

96.0

96.5

97.0

97.5

98.0

98.5

99.0

99.5

100.0

Yield

4.67

4.66

September 6, 2022

Penalty Relief for Certain

Taxpayers Filing Returns

for Taxable Years 2019

and 2020

Notice 2022-36

SECTION 1. PURPOSE

This notice provides relief for certain

taxpayers from certain failure to file penalties and certain international information return (IIR) penalties with respect

to tax returns for taxable years 2019 and

2020 that are filed on or before September

30, 2022. This notice also provides relief

from certain information return penalties

with respect to taxable year 2019 returns

that were filed on or before August 1,

2020, and with respect to taxable year

2020 returns that were filed on or before

August 1, 2021. The relevant penalties

will be waived or, to the extent previously

assessed, abated, refunded, or credited,

as described in section 3.A of this notice.

Situations where penalty relief does not

apply are described in section 3.B of this

notice.

SECTION 2. BACKGROUND

Section 6651(a)(1) of the Internal Revenue Code (Code) generally imposes an

addition to tax for a failure to file (on or

before the date prescribed) a tax return

that is required under the authority of

subchapter A of chapter 61 (other than

part III regarding information returns) of

the Code, including certain income tax

returns.1

Section 6038 generally imposes a

penalty for the failure of certain United

States persons to furnish (on or before the

date prescribed) certain information with

respect to a controlled foreign corporation

or a controlled foreign partnership that the

person owns.

Section 6038A(d) imposes a penalty on

a “25-percent foreign-owned” domestic

corporation or wholly foreign-owned

domestic disregarded entity for the failure to furnish (on or before the date prescribed) certain information or the failure

to maintain certain records.

Section 6038C(c) imposes a penalty on

a foreign corporation engaged in a U.S.

trade or business for the failure to furnish

(on or before the date prescribed) certain

information or the failure to maintain certain records.

Section 6039F(c) imposes a penalty on

a United States person for the failure to

furnish (on or before the date prescribed)

certain information with respect to the

receipt of large gifts or bequests from foreign persons.

Section 6677 generally imposes a

penalty on a United States person for the

failure to file (on or before the date prescribed) a notice or return required by

section 6048 with respect to transactions

with, or ownership of, a foreign trust.

Section 6698(a)(1) generally imposes a

penalty for the failure of any partnership

to file (on or before the date prescribed)

the return required under section 6031.

Section 6698(a)(2) generally imposes

a penalty for filing a return that fails to

show the information required under section 6031.

Section 6699(a)(1) generally imposes

a penalty for the failure of any S corporation (as defined in section 1361(a)(1))

to file (on or before the date prescribed) a

return required under section 6037. Section 6699(a)(2) generally imposes a penalty for filing a return that fails to show the

information required under section 6037.

Section

6721(a)(2)(A)

generally

imposes a penalty for the failure to file an

information return (as defined in section

6724(d)(1)) on or before the required filing date.

The foregoing penalties do not apply

if the taxpayer can show that the failure to timely file the return or to furnish

the required information or to provide

the required notice, as applicable, is due

to reasonable cause. See §§ 6651(a)(1),

6038(c)(4)(B), 6038A(d)(3), 6038C(c),

6039F(c)(2), 6677(d), 6698(a) flush

language, 6699(a) flush language, and

6724(a).

On March 13, 2020, the President of

the United States issued an emergency

declaration under the Robert T. Stafford

Disaster Relief and Emergency Assistance

Act, 42 U.S.C. 5121 et seq., in response

to the ongoing Coronavirus Disease 2019

(COVID-19) pandemic (Emergency Declaration).2 The Emergency Declaration

instructed the Secretary of the Treasury “to

provide relief from tax deadlines to Americans who have been adversely affected

by the COVID-19 emergency, as appropriate, pursuant to 26 U.S.C. 7508A(a).”

In response, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) issued a series

of notices and other guidance to provide

relief to affected taxpayers. In particular, Notice 2020-17, 2020-15 I.R.B. 590,

postponed the due date for certain Federal

income tax payments from April 15, 2020,

until July 15, 2020. Notice 2020-18, 202015 I.R.B. 590, superseded Notice 2020-17

and provided expanded relief postponing

the due date for filing Federal income tax

returns that were originally due on April

15, 2020, to July 15, 2020, among other

things. Notice 2021-21, 2021-15 I.R.B.

986, postponed the due date for filing Federal income tax returns in the Form 1040

series and making certain Federal income

tax payments that were originally due on

April 15, 2021, to May 17, 2021.

Additions to tax or penalties for failure

to timely file returns continued to accrue

for taxpayers who did not file by the postponed due dates.

The COVID-19 pandemic has also had

an unprecedented effect on the IRS’s personnel and operations. The agency was

called upon to support emergency relief

for taxpayers, such as distributing economic impact payments,3 while sustaining

its regular operations in a pandemic environment with limited resources, where

employees were sometimes unable to be

physically present to process tax returns

and correspondence. In response to these

Unless otherwise stated, all “section” references are to provisions of the Code.

https://trumpwhitehouse.archives.gov/briefings-statements/letter-president-donald-j-trump-emergency-determination-stafford-act/.

The IRS, in coordination with the Bureau of the Fiscal Service, issued more than 476.1 million payments through three rounds of economic impact payments, totaling more than $814.4

billion during 2020 and 2021. IRS Data Book, 2021, Publication 55-B.

September 6, 2022

188

Bulletin No. 2022–36

challenges, the IRS has been working aggressively to process backlogged

returns and taxpayer correspondence to

return to normal operations for the 2023

filing season. The Treasury Department

and the IRS have determined that the

penalty relief described in this notice

will allow the IRS to focus its resources

more effectively, as well as provide relief

to taxpayers affected by the COVID-19

pandemic.

SECTION 3. GRANT OF RELIEF

A. Waiver and Abatement of Certain

Penalties for Taxpayers

The IRS will not impose the penalties

listed in section 3.A.(1) through (4) of this

notice with respect to the specified tax

returns for taxable years 2019 and 2020

that are filed on or before September 30,

2022. The penalties listed in this section

3.A of this notice will be automatically

abated, refunded, or credited, as appropriate without any need for taxpayers to

request this relief.

(1) Additions to tax under section

6651(a)(1) for failure to file the following

income tax returns:

• Form 1040, U.S. Individual Income

Tax Return; Form 1040-C, U.S.

Departing Alien Income Tax Return;

Form 1040-NR, U.S. Nonresident

Alien Income Tax Return; Form 1040NR-EZ, U.S. Income Tax Return for

Certain Nonresident Aliens With No

Dependents; Form 1040 (PR), Federal Self-Employment Contribution

Statement for Residents of Puerto

Rico; Form 1040-SR, U.S. Tax Return

for Seniors; and Form 1040-SS, U.S.

Self-Employment Tax Return (Including the Additional Child Tax Credit

for Bona Fide Residents of Puerto

Rico);

• Form 1041, U.S. Income Tax Return

for Estates and Trusts; Form 1041N, U.S. Income Tax Return for Electing Alaska Native Settlement Trusts;

and Form 1041-QFT, U.S. Income

Tax Return for Qualified Funeral

Trusts;

• Form 1120, U.S. Corporation

Income Tax Return; Form 1120-C,

U.S. Income Tax Return for Cooperative Associations; Form 1120-F,

U.S. Income Tax Return of a Foreign

Bulletin No. 2022–36

Corporation; Form 1120-FSC, U.S.

Income Tax Return of a Foreign

Sales Corporation; Form 1120-H,

U.S. Income Tax Return for Homeowners Associations; Form 1120L, U.S. Life Insurance Company

Income Tax Return; Form 1120-ND,

Return for Nuclear Decommissioning Funds and Certain Related Persons; Form 1120-PC, U.S. Property

and Casualty Insurance Company

Income Tax Return; Form 1120-POL,

U.S. Income Tax Return for Certain

Political Organizations; Form 1120REIT, U.S. Income Tax Return for

Real Estate Investment Trusts; Form

1120-RIC, U.S. Income Tax Return

for Regulated Investment Companies;

and Form 1120-SF, U.S. Income Tax

Return for Settlement Funds (Under

Section 468B);

• Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC)

Income Tax Return; and

• Form 990-PF, Return of Private

Foundation or Section 4947(a)(1)

Trust Treated as Private Foundation;

and Form 990-T, Exempt Organization Business Income Tax Return (and

Proxy Tax Under Section 6033(e)).

(2) Certain penalties under sections

6038, 6038A, 6038C, 6039F and 6677 for

failure to timely file the following IIRs:

• Penalties systematically assessed

when a Form 5471, Information

Return of U.S. Persons With Respect

To Certain Foreign Corporations,

and/or Form 5472, Information

Return of a 25% Foreign-Owned U.S.

Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, is attached to a late-filed Form

1120 or Form 1065; and

• Penalties assessed by the campus

assessment program with respect to

filings on Form 3520, Annual Return

To Report Transactions With Foreign

Trusts and Receipt of Certain Foreign

Gifts, and on Form 3520-A, Annual

Information Return of Foreign Trust

With a U.S. Owner (Under section

6048(b)).

(3) Penalties under section 6698(a)(1)

for failure to timely file and under section

6698(a)(2) for failure to show the required

information on a Form 1065, U.S. Return

of Partnership Income.

189

(4) Penalties under section 6699(a)(1)

for failure to timely file and under section

6699(a)(2) for failure to show the required

information on a Form 1120-S, U.S.

Income Tax Return for an S corporation.

In addition, the IRS will not impose

the penalties under section 6721(a)(2)(A)

for failure to timely file any information

return (as defined in section 6724(d)(1))

that meets the following criteria:

• 2019 returns that were filed on or

before August 1, 2020, with an original due date of January 31, 2020;

February 28, 2020 (if filed on paper)

or March 31, 2020 (if filed electronically); or March 15, 2020; or

• 2020 returns that were filed on or

before August 1, 2021, with an original due date of January 31, 2021;

February 28, 2021 (if filed on paper)

or March 31, 2021 (if filed electronically); or March 15, 2021.

B. Exceptions

The penalty relief described in this

notice does not apply to any penalties that

are not specifically listed in the grant of

relief under section 3.A of this notice. In

addition, the penalty relief described in

section 3.A of this notice is not available

with respect to any return to which the

penalty for fraudulent failure to file under

section 6651(f) or the penalty for fraud

under section 6663 applies. The penalty

relief described in this notice also does

not apply to any penalties in an accepted

offer in compromise under section 7122

because acceptance of the offer conclusively settled all of the liabilities in the

offer under § 301.7122-1(e)(5) of the

Procedure and Administration Regulations. The penalty relief described in this

notice does not apply to any penalty settled in a closing agreement under section

7121 or finally determined in a judicial

proceeding.

SECTION 4. DRAFTING

INFORMATION

The principal author of this notice is

Han Huang of the Office of the Associate

Chief Counsel (Procedure and Administration). For further information regarding

this notice, contact Ms. Huang at (202)

317-6844 (not a toll-free number).

September 6, 2022

Part IV

Deletions From Cumulative

List of Organizations,

Contributions to Which

are Deductible Under

Section 170 of the Code

Announcement 2022-18

Table of Contents

The Internal Revenue Service has

revoked its determination that the organizations listed below qualify as organizations 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.

NAME OF ORGANIZATION

Concord High School Band Boosters Club

Amazing Gospel Souls, Inc.

R Peter and Barbara Fishman Supporting Foundation Inc.

AMERICAN FUNDRAISING FOUNDATION INC.

NEW HORIZONS YOUTH RANCH INC.

Raindancer Foundation

Development Disabilities Associates, Inc.

Milk Saving Starving Children

CHARACTER EDUCATION AND THE ARTS

Asset Trader

MIAMIS RIVER OF LIFE INC

SPANGENBERG FAMILY FOUNDATION TO BENEFIT CHILDRENS

EDUCATION & HEALTHCARE

A Human Project

Chevy Chase University, Ltd

Open Hearts And Spiritual Mind Foundation Inc.

Service to Servants Inc.

American Friends of Yeshivat Haraayon

Susan B Krevoy Eating Disorders Program Inc.

International Hunger And Homeless Charity

United States of America Arabian and Half Arabian National Championship

Uphill Media Inc.

Plattduetsche Volksfest Verein

September 6, 2022

190

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)

that are otherwise allowable will continue

to be deductible. Protection under section 7428(c) would begin on September

6, 2022 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.

Effective Date of

Revocation

LOCATION

8/1/2016

1/1/2017

7/1/2018

9/1/2017

1/1/2017

1/1/2018

7/1/2016

7/1/2017

1/1/2019

1/1/2012

1/1/2018

Concord, CA

Washington, DC

Atlanta, GA

MAITLAND, FL

SEELEY LAKE, MT

San Ramon, CA

Waterford, CT

Scranton, PA

SAYVILLE, NY

Raleigh, NC

OPA LOCKA, FL

DALLAS, TX

1/1/2017

1/1/2018

1/1/2019

1/1/2017

1/1/2018

1/1/2017

1/1/2018

Clark Fork, ID

Chevy Chase, MD

Hillside, NJ

Homosassa, FL

Lincolnwood, IL

Beverly Hills, CA

North Las Vegas, NV

Gilbert, AZ

Corvallis, OR

Franklin SQ, NY

Bulletin No. 2022–36

Section 7428(c) Validation

of Certain Contributions

Made During Pendency

of Declaratory Judgment

Proceedings

Announcement 2022-19

This announcement serves notice to

potential donors that the organization

listed below has recently filed a timely

declaratory judgment suit under section

Name of Organization

Goodcity, NFP

Bulletin No. 2022–36

7428 of the Code, challenging revocation

of its status as an eligible donee under section 170(c)(2).

Protection under section 7428(c) of the

Code begins on the date that the notice

of revocation is published in the Internal

Revenue Bulletin and ends on the date

on which a court first determines that an

organization is not described in section

170(c)(2), as more particularly set forth in

section 7428(c)(1).

In the case of individual contributors,

the maximum amount of contributions

protected during this period is limited to

Date Suit Filed

4/29/2022

191

$1,000.00, with a husband and wife being

treated as one contributor. This protection

is not extended to any individual who was

responsible, in whole or in part, for the acts

or omissions of the organization that were

the basis for the revocation. This protection also applies (but without limitation as

to amount) to organizations described in

section 170(c)(2) which are exempt from

tax under section 501(a). If the organization ultimately prevails in its declaratory

judgment suit, deductibility of contributions would be subject to the normal limitations set forth under section 170.

Effective Date of

Revocation

7/1/2017

Location

Payson, AZ

September 6, 2022

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

effect:

Amplified describes a situation where

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

being extended to apply to a variation of

the fact situation set forth therein. Thus,

if an earlier ruling held that a principle

applied to A, and the new ruling holds that

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

has caused, or may cause, some confusion. It is not used where a position in a

prior ruling is being changed.

Distinguished describes a situation

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

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

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

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

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

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

restate the valid portion of the previously

published ruling in a new ruling that is

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

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

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

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

Suspended is used in rare situations

to show that the previous published rulings will not be applied pending some

future action such as the issuance of new

or amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

The following abbreviations in current

use and formerly used will appear in

material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2022–36

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

September 6, 2022

Numerical Finding List1

Bulletin 2022–36

Announcements:

2022-14, 2022-31 I.R.B. 136

2022-15, 2022-31 I.R.B. 136

2022-16, 2022-33 I.R.B. 144

2022-17, 2022-35 I.R.B. 179

2022-18, 2022-36 I.R.B. 190

2022-19, 2022-36 I.R.B. 191

Notices:

2022-29, 2022-28 I.R.B. 66

2022-30, 2022-28 I.R.B. 70

2022-31, 2022-29 I.R.B. 85

2022-32, 2022-32 I.R.B. 137

2022-33, 2022-34 I.R.B. 147

2022-34, 2022-34 I.R.B. 150

2022-35, 2022-36 I.R.B. 184

2022-36, 2022-36 I.R.B. 188

Proposed Regulations:

REG-130975-08, 2022-28 I.R.B. 71

REG 130675-17, 2022-30 I.R.B. 104

Revenue Procedures:

2022-25, 2022-27 I.R.B. 3

2022-28, 2022-27 I.R.B. 65

2022-26, 2022-29 I.R.B. 90

2022-32, 2022-30 I.R.B. 101

2022-30, 2022-31 I.R.B. 112

2022-29, 2022-33 I.R.B. 141

2022-34, 2022-33 I.R.B. 143

Revenue Rulings:

2022-12, 2022-27 I.R.B. 1

2022-13, 2022-30 I.R.B. 99

2022-14, 2022-31 I.R.B. 110

2022-15, 2022-35 I.R.B. 152

2022-17, 2022-36 I.R.B. 182

Treasury Decisions:

9963, 2022-34 I.R.B. 145

9964, 2022-35 I.R.B. 172

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

2021–52, dated December 27, 2021.

September 6, 2022

Bulletin No. 2022–36

Finding List of Current Actions on

Previously Published Items1

Bulletin 2022–36

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

2021–52, dated December 27, 2021.

Bulletin No. 2022–36

iii

September 6, 2022

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue

Bulletins are available at www.irs.gov/irb/.

We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,

we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page

www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.

NW, IR-6230 Washington, DC 20224.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.