# Bulletin No. 2024–41

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3Aa65f752e92702e97

## Record

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

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2024–41
October 7, 2024

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

EMPLOYEE PLANS

Announcement 2024-34, page 758.

Notice 2024-67, page 726.

The Office of Professional Responsibility (OPR) announces
recent disciplinary sanctions involving attorneys, certified
public accountants, enrolled agents, enrolled actuaries,
enrolled retirement plan agents, and appraisers. These
individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are
set out in Title 31, Code of Federal Regulations, Part 10,
and which are published in pamphlet form as Treasury
Department Circular No. 230. The regulations prescribe
the duties and restrictions relating to such practice and
prescribe the disciplinary sanctions for violating the regulations.

Rev. Proc. 2024-36, page 737.

This revenue procedure provides specifications for the private printing of red-ink and black-and-white substitutes for the
June 2024 revisions of Forms W-2c and W-3c. This revenue
procedure will be produced as the next revision of Publication
1223. Rev. Proc. 2023-39, 2023-52 IRB dated December
26, 2023, is superseded.

ADMINISTRATIVE, INCOME TAX
Notice 2024-68, page 729.

Optional special per diem rates. This notice provides the
2024-2025 special per diem rates for taxpayers to use in
substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home. The
notice includes (1) the special transportation industry rate,
(2) the rate for the incidental expenses only deduction, and
(3) the rates and list of high-cost localities for the high-low
substantiation method.

Finding Lists begin on page ii.

This notice sets forth updates on the corporate bond
monthly yield curve, the corresponding spot segment rates
for August 2024 used under § 417(e)(3)(D), the 24-month
average segment rates applicable for September 2024, and
the 30-year Treasury rates, as reflected by the application of
§ 430(h)(2)(C)(iv).

INCOME TAX
Notice 2024-69, page 733.

This notice publishes the inflation adjustment factor and
reference price for calendar year 2024 for the renewable
electricity production credit under section 45 of the Internal
Revenue Code. The 2024 inflation adjustment factor and
reference price are used in determining the availability of
the credit and apply to calendar year 2024 sales of kilowatt hours of electricity produced in the United States or
a possession thereof from qualified energy resources. This
notice also provides the credit amounts for calendar year
2024 under section 45.

REG-118269-23, page 761.

These proposed regulations provide guidance on how to calculate the credit under § 30C, as amended by IRA (§ 30C
credit), including what constitutes an “item” of qualified alternative fuel vehicle refueling property, the additional costs
taken into account in determining the cost of the item for
purposes of calculating the credit, and how to treat dual-use
property. The proposed regulations also provide rules for
determining whether a population census tract is a qualified
alternative fuel vehicle refueling property for purposes of the
§ 30C credit. The proposed regulations also provide defini-

tions, general rules, and special rules in respect of §30C,
including basis reduction and recapture. The proposed regulations would also amend proposed Treas. Reg. sections
1.48-9(e)(10) and 1.48E-2(g)(6) to clarify that certain storage property qualifies for a credit under section 30C and
not for a credit under section 48. Additionally, he proposed
regulations would amend Treas. Reg. sections 1.6417-6(b)
(1) and 1.6418-5 to clarify the effects of basis reduction and
recapture provisions.

Rev. Proc. 2024-37, page 755.

This revenue procedure provides guidance to issuers of
tax-exempt and other tax-advantaged bonds regarding the

procedures for filing claims for recovery of overpayments
of rebate, penalty in lieu of rebate, and yield reduction payments under section 148(f) of the Internal Revenue Code.
This revenue procedure also modifies and supersedes Rev.
Proc. 2008-37, 2008-2 (Vol.1) C.B. 137, as modified by Rev.
Proc. 2017-50, 2017-37 I.R.B. 234, and supersedes Rev.
Proc. 2017-50.

Rev. Rul. 2024-21, page 724.

Federal rates; adjusted federal rates; adjusted federal longterm 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 October 2024.

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.

October 7, 2024 

Bulletin No. 2024–41

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. 2024-21
This revenue ruling provides various prescribed rates for federal income

Annual
AFR
110% AFR
120% AFR
130% AFR

4.21%
4.64%
5.06%
5.49%

AFR
110% AFR
120% AFR
130% AFR
150% AFR
175% AFR

3.70%
4.08%
4.45%
4.83%
5.59%
6.52%

AFR
110% AFR
120% AFR
130% AFR

4.10%
4.52%
4.93%
5.35%

Short-term adjusted AFR
Mid-term adjusted AFR
Long-term adjusted AFR

October 7, 2024

tax purposes for October 2024 (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 longterm tax-exempt rate described in section 382(f). Table 4 contains the appro-

priate 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. 2024-21 TABLE 1
Applicable Federal Rates (AFR) for October 2024
Period for Compounding
Semiannual
Quarterly
Short-term
4.17%
4.15%
4.59%
4.56%
5.00%
4.97%
5.42%
5.38%
Mid-term
3.67%
3.65%
4.04%
4.02%
4.40%
4.38%
4.77%
4.74%
5.51%
5.47%
6.42%
6.37%
Long-term
4.06%
4.04%
4.47%
4.45%
4.87%
4.84%
5.28%
5.25%

Annual
3.20%
2.81%
3.10%

REV. RUL. 2024-21 TABLE 2
Adjusted AFR for October 2024
Period for Compounding
Semiannual
3.17%
2.79%
3.08%

724

Monthly
4.13%
4.55%
4.95%
5.36%
3.64%
4.01%
4.36%
4.72%
5.45%
6.34%
4.03%
4.43%
4.82%
5.22%

Quarterly
3.16%
2.78%
3.07%

Monthly
3.15%
2.77%
3.06%

Bulletin No. 2024–41

REV. RUL. 2024-21 TABLE 3
Rates Under Section 382 for October 2024
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.)

3.10%
3.42%

REV. RUL. 2024-21 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for October 2024
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
7.90%
Appropriate percentage for the 30% present value low-income housing credit
3.39%

REV. RUL. 2024-21 TABLE 5
Rate Under Section 7520 for October 2024
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
October 2024. See Rev. Rul. 2024-21, page 724.

Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
October 2024. See Rev. Rul. 2024-21, page 724.

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 October 2024. See Rev.
Rul. 2024-21, page 724.

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
October 2024. See Rev. Rul. 2024-21, page 724.

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 October 2024. See Rev. Rul.
2024-21, page 724.

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
October 2024. See Rev. Rul. 2024-21, page 724.

4.4%

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
October 2024. See Rev. Rul. 2024-21, page 724.

Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of October 2024. See Rev. Rul. 2024-21, page 724.

Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of October 2024. See Rev. Rul.
2024-21, page 724.

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
October 2024. See Rev. Rul. 2024-21, page 724.

Bulletin No. 2024–41

725

October 7, 2024

Part III
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2024-67
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 single-employer plans (except for CSEC plans
under § 414(y)) pursuant to § 412. Section
430(h)(2) specifies the interest rates that

Applicable Month
September 2024

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.
Section 1.430(h)(2)-1(d) provides
rules for determining the monthly corporate bond yield curve,2 and § 1.430(h)
(2)-1(c) provides rules for determining
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 § 1.430(h)(2)-1(d), the monthly
corporate bond yield curve derived from
August 2024 data is in Table 2024-8 at the
end of this notice. The spot first, second,
and third segment rates for the month of
August 2024 are, respectively, 4.50, 4.96,
and 5.40.

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. Those percentages are
95% and 105% for plan years beginning
in 2023, 2024 and 2025. For this purpose,
any 25-year average segment rate that is
less than 5% is deemed to be 5%. The
25-year average segment rates for plan
years beginning in 2023 and 2024 were
published in Notice 2022-40, 2022-40
I.R.B. 266 and Notice 2023-66, 2023-40
I.R.B. 992, respectively. For plan years
beginning in 2025, based on the segment
rates applicable for October 1999 to September 2024, the 25-year averages for the
period ending September 30, 2024, of the
first, second, and third segment rates are
3.27, 5.06, and 5.79 percent, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for September 2024 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
5.07
5.33

The adjusted 24-month average segment rates set forth in the chart below
reflect § 430(h)(2)(C)(iv) of the Code. The

24-month averages applicable for September 2024, adjusted to be within the applicable minimum and maximum percent-

Third Segment
5.36

ages 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

2023

September 2024

5.07

5.33

5.74

2024

September 2024

5.07

5.33

5.59

2025

September 2024

5.07

5.31

5.50

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)).
2
For months before February 2024, the monthly corporate bond yield curve was determined in accordance with Notice 2007-81, 2007-44 I.R.B. 899. Section 1.430(h)(2)-1(d) generally adopts
the methodology for determining the monthly corporate bond yield curve under Notice 2007-81 but includes two enhancements to take into account subsequent changes in the bond market.
Those enhancements are described in the preamble to TD 9986 (89 FR 2127).
1

October 7, 2024

726

Bulletin No. 2024–41

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 August 2024 is
4.15 percent. The Service determined this
rate as the average of the daily determi-

For Plan Years Beginning In

Treasury Weighted Average Rates
30-Year Treasury Weighted Average

Permissible Range 90% to 105%

September 2024

3.63

3.27 to 3.81

under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Section 1.417(e)-1(d)(3) and
Notice 2007-81 provide guidelines for

determining the minimum present value
segment rates. Pursuant to those guidelines,
the minimum present value segment rates
determined for August 2024 are as follows:

MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates

Month
August 2024

Minimum Present Value Segment Rates
First Segment
Second Segment
4.50
4.96

DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of Associ-

Bulletin No. 2024–41

nations of yield on the 30-year Treasury
bond maturing in May 2054 determined
each day through August 7, 2024 and the
yield on the 30-year Treasury bond maturing in August 2054 determined each day
for the balance of the month. For plan
years beginning in September 2024, 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:

ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development

727

Third Segment
5.40

of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Tony Montanaro at
626-927-1475 (not toll-free numbers).

October 7, 2024

Table 2024-8
Monthly Yield Curve for August 2024
Derived from August 2024 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
5.05
4.81
4.61
4.46
4.37
4.33
4.31
4.32
4.34
4.37
4.41
4.45
4.50
4.55
4.60
4.65
4.69
4.74
4.78
4.82
4.86
4.90
4.94
4.97
5.01
5.04
5.07
5.10
5.12
5.15
5.17
5.19
5.21
5.23
5.25
5.26
5.28
5.29
5.30
5.31

October 7, 2024

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

Yield
5.31
5.32
5.32
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.34
5.34
5.34
5.35
5.35
5.36
5.36
5.37
5.37
5.37
5.38
5.38
5.38
5.39
5.39
5.39
5.40
5.40
5.40
5.40
5.41

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
5.41
5.41
5.41
5.42
5.42
5.42
5.42
5.43
5.43
5.43
5.43
5.43
5.44
5.44
5.44
5.44
5.44
5.45
5.45
5.45
5.45
5.45
5.45
5.46
5.46
5.46
5.46
5.46
5.46
5.46
5.47
5.47
5.47
5.47
5.47
5.47
5.47
5.48
5.48
5.48

728

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
5.48
5.48
5.48
5.48
5.48
5.48
5.49
5.49
5.49
5.49
5.49
5.49
5.49
5.49
5.49
5.49
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.50
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51
5.51

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
5.51
5.51
5.51
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.52
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53
5.53

Bulletin No. 2024–41

2024-2025 Special Per
Diem Rates
Notice 2024-68
SECTION 1. PURPOSE
This annual notice provides the 20242025 special per diem rates for taxpayers to use in substantiating the amount of
ordinary and necessary business expenses
incurred while traveling away from home,
specifically (1) the special transportation
industry meal and incidental expenses
(M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the
rates and list of high-cost localities for
purposes of the high-low substantiation
method.
SECTION 2. BACKGROUND
Rev. Proc. 2019-48, 2019-51 I.R.B.
1392 (or successor), provides rules for
using a per diem rate to substantiate, under
§ 274(d) of the Internal Revenue Code and
§ 1.274-5 of the Income Tax Regulations,
the amount of ordinary and necessary

Key City
Gulf Shores
Phoenix/Scottsdale
Sedona
Los Angeles

Mammoth Lakes
Monterey
Napa
Palm Springs
San Diego
San Francisco
San Luis Obispo
Santa Barbara
Santa Monica
South Lake Tahoe

Bulletin No. 2024–41

business expenses paid or incurred while
traveling away from home. Taxpayers
using the rates and list of high-cost localities provided in this notice must comply
with Rev. Proc. 2019-48 (or successor).
Notice 2023-68, 2023-41 I.R.B. 1060,
provides the rates and list of high-cost
localities for the period October 1, 2023,
to September 30, 2024.
SECTION 3. SPECIAL M&IE
RATES FOR TRANSPORTATION
INDUSTRY
The special M&IE rates for taxpayers
in the transportation industry are $80 for
any locality of travel in the continental
United States (CONUS) and $86 for any
locality of travel outside the continental
United States (OCONUS). See section
4.04 of Rev. Proc. 2019-48 (or successor).
SECTION 4. RATE FOR
INCIDENTAL EXPENSES ONLY
DEDUCTION
The rate for any CONUS or OCONUS locality of travel for the incidental
expenses only deduction is $5 per day.

See section 4.05 of Rev. Proc. 2019-48 (or
successor).
SECTION 5. HIGH-LOW
SUBSTANTIATION METHOD
1. Annual high-low rates. For purposes
of the high-low substantiation method, the
per diem rates in lieu of the rates described
in Notice 2023-68 (the per diem substantiation method) are $319 for travel to any
high-cost locality and $225 for travel to
any other locality within CONUS. The
amount of the $319 high rate and $225
low rate that is treated as paid for meals
for purposes of § 274(n) is $86 for travel
to any high-cost locality and $74 for travel
to any other locality within CONUS. See
section 5.02 of Rev. Proc. 2019-48 (or
successor). The per diem rates in lieu of
the rates described in Notice 2023-68 (the
meal and incidental expenses only substantiation method) are $86 for travel to
any high-cost locality and $74 for travel to
any other locality within CONUS.
2. High-cost localities. The following
localities have a federal per diem rate of
$272 or more, and are high-cost localities
for the specified portion of the calendar year:

County or Other Defined Location
Portion of Calendar Year
Alabama
Baldwin
June 1 – July 31
Arizona
Maricopa
February 1 – March 31
City limits of Sedona
October 1 – December 31 and March 1 – September 30
California
Los Angeles, Orange, and Ventura, and October 1 – September 30
Edwards AFB, less the city of Santa
Monica
Mono
December 1 – March 31
Monterey
October 1 – September 30
Napa
October 1 – November 30 and February 1 – September 30
Riverside
October 1 – April 30
San Diego
October 1 – September 30
San Francisco
October 1 – September 30
San Luis Obispo
June 1 – July 31
Santa Barbara
October 1 – September 30
City limits of Santa Monica
October 1 – September 30
El Dorado
December 1 – March 31

729

October 7, 2024

Key City
Sunnyvale/Palo Alto/San
Jose
Yosemite National Park

County or Other Defined Location
Santa Clara

Portion of Calendar Year
October 1 – September 30

Mariposa

January 1 – April 30
Colorado

Aspen
Denver/Aurora

Pitkin
October 1 – September 30
Denver, Adams, Arapahoe, and
October 1 – October 31 and April 1 – September 30
Jefferson
Silverthorne/Breckenridge Summit
December 1 – March 31
Steamboat Springs
Routt
December 1 – March 31
Telluride
San Miguel
October 1 – September 30
Vail
Eagle
October 1 – September 30
Delaware
Lewes
Sussex
June 1 – August 31
District of Columbia
Washington, D.C. (also the cities of Alexandria, Falls Church, and
October 1 – September 30
Fairfax, and the counties of Arlington and Fairfax, in Virginia; and
the counties of Montgomery and Prince George’s in Maryland) (See
also Maryland and Virginia)
Florida
Boca Raton/Delray Beach/ Palm Beach and Hendry
January 1 – April 30
Jupiter
Bradenton
Manatee
February 1 – March 31
Cocoa Beach
Brevard
February 1 – March 31
Fort Lauderdale
Broward
January 1 – April 30
Fort Myers
Lee
January 1 – March 31
Fort Walton Beach/
Okaloosa and Walton
June 1 – July 31
DeFuniak Springs
Gulf Breeze
Santa Rosa
June 1 – July 31
Key West
Monroe
October 1 – September 30
Miami
Miami-Dade
December 1 – May 31
Naples
Collier
December 1 – April 30
Panama City
Bay
June 1 – July 31
Sarasota
Sarasota
February 1 – April 30
Sebring
Highlands
February 1 – March 31
Stuart
Martin
February 1 – March 31
Tampa/St. Petersburg
Pinellas and Hillsborough
February 1 – April 30
Vero Beach
Indian River
December 1 – April 30
Georgia
Atlanta
Fulton and DeKalb
January 1 – March 31
Jekyll Island/Brunswick
Glynn
March 1 – July 31
Idaho
Boise
Ada
October 1 – October 31 and June 1 – September 30
Coeur d’Alene
Kootenai
June 1 – August 31
Sun Valley/Ketchum
Blaine and Elmore
December 31 – March 31 and June 1 – September 30
Illinois
Chicago
Cook and Lake
October 1 – November 30 and April 1 – September 30

October 7, 2024

730

Bulletin No. 2024–41

Key City
Bar Harbor/Rockport
Kennebunk/Kittery/
Sanford
Portland

County or Other Defined Location
Portion of Calendar Year
Maine
Hancock and Knox
October 1 – October 31 and May 1 – September 30
York
July 1 – August 31
Cumberland and Sagadahoc

October 1 – October 31 and June 1 – September 30
Maryland

Ocean City
Washington, D.C.
Metropolitan Area
Boston/Cambridge
Falmouth
Hyannis
Martha’s Vineyard
Nantucket
Mackinac Island
Petoskey
Traverse City
Duluth
Big Sky/West
Yellowstone/Gardiner
Kalispell/Whitefish
Toms River
Glens Falls
Lake Placid
New York City
Saratoga Springs/
Schenectady

Worcester
Montgomery and Prince George’s

Massachusetts
Suffolk and city of Cambridge
October 1 – September 30
City limits of Falmouth
July 1 – August 31
Barnstable less the city of Falmouth
July 1 – August 31
Dukes
October 1 – September 30
Nantucket
June 1 – September 30
Michigan
Mackinac
July 1 – August 31
Emmet
June 1 – August 31
Grand Traverse
July 1 – August 31
Minnesota
St. Louis
October 1 – October 31 and June 1 – September 30
Montana
Gallatin and Park
June 1 – September 30
Flathead

July 1 – September 30
New Jersey
Ocean
July 1 – August 31
New York
Warren
July 1 – August 31
Essex
July 1 – August 31
Bronx, Kings, New York, Queens, and October 1 – December 31 and March 1 – September 30
Richmond
Saratoga and Schenectady
July 1 – August 31

Kill Devil Hills

Dare

Bend
Eugene/Florence
Seaside

Deschutes
Lane
Clatsop

Hershey
Philadelphia

Hershey
Philadelphia

Jamestown/Middletown/
Newport

Newport

Bulletin No. 2024–41

June 1 – August 31
October 1 – September 30

North Carolina
June 1 – August 31
Oregon
June 1 – August 31
June 1 – July 31
July 1 – August 31
Pennsylvania
June 1 – August 31
October 1 – November 30 and April 1 – September 30
Rhode Island
October 1 – October 31 and June 1 – September 30

731

October 7, 2024

Key City
Charleston
Hilton Head
Nashville
Moab
Park City
Burlington
Manchester
Montpelier
Virginia Beach
Wallops Island
Washington, D.C.
Metropolitan Area

Port Angeles/Port
Townsend
Seattle

County or Other Defined Location
Portion of Calendar Year
South Carolina
Charleston, Berkeley, and Dorchester
October 1 – September 30
Beaufort
March 1 – August 31
Tennessee
Davidson
October 1 – September 30
Utah
Grand
October 1 – October 31, March 1 – June 30, and
September 1 – September 30
Summit
October 1 – September 30
Vermont
Chittenden
October 1 – October 31 and May 1 – September 30
Bennington
October 1 – October 31 and August 1 – September 30
Washington
October 1 – October 31 and August 1 – September 30
Virginia
City of Virginia Beach
June 1 – August 31
Accomack
July 1 – August 31
Cities of Alexandria, Falls Church,
October 1 – September 30
and Fairfax; counties of Arlington and
Fairfax
Washington
Clallam and Jefferson
July 1 – August 31
King

October 1 – September 30
Wyoming

Jackson/Pinedale

Teton and Sublette

3. Changes in high-cost localities. The
list of high-cost localities in this notice
differs from the list of high-cost localities
in section 5 of Notice 2023-68.
a. The following localities have been
added to the list of high-cost localities:
Los Angeles, California; Mammoth
Lakes, California; Palm Springs, California; South Lake Tahoe, California; Boise,
Idaho; Coeur d’Alene, Idaho; Bend, Oregon; Burlington, Vermont.
b. The following localities have
changed the portion of the year in which
they are high-cost localities: Sedona,
Arizona; Monterey, California; Napa,
California; San Luis Obispo, California; Yosemite National Park, California;
Aspen, Colorado; Silverthorne/Breckenridge, Colorado; Lewes, Delaware; District of Columbia (see also Maryland and
Virginia); Boca Raton/Delray Beach/Jupiter, Florida; Fort Myers, Florida; Tampa/
St. Petersburg, Florida; Vero Beach,

October 7, 2024

October 1 – September 30

Florida; Bar Harbor/Rockport, Maine;
Portland, Maine; Ocean City, Maryland;
Washington, D.C. Metropolitan Area in
Maryland (counties of Montgomery and
Prince George’s); Falmouth, Massachusetts; Nantucket, Massachusetts; Petoskey, Michigan; Kalispell/Whitefish, Montana; Kill Devil Hills, North Carolina;
Philadelphia, Pennsylvania; Moab, Utah;
Washington, D.C. Metropolitan Area
in Virginia (cities of Alexandria, Falls
Church, and Fairfax; counties of Arlington and Fairfax); Seattle, Washington.
c. The following localities have been
removed from the list of high-cost localities: Mill Valley/San Rafael/Novato, California; Oakland, California; San Mateo/
Foster City/Belmont, California; Grand
Lake, Colorado; Pensacola, Florida;
Punta Gorda, Florida; Missoula, Montana;
Carlsbad, New Mexico; Lincoln City,
Oregon; Myrtle Beach, South Carolina;
Cody, Wyoming.

732

SECTION 6. EFFECTIVE DATE
This notice is effective for per diem
allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any
employee on or after October 1, 2024,
for travel away from home on or after
October 1, 2024. For purposes of computing the amount allowable as a deduction for travel away from home, this
notice is effective for meal and incidental
expenses or for incidental expenses only
paid or incurred on or after October 1,
2024. See sections 4.06 and 5.04 of Rev.
Proc. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2024.
SECTION 7. EFFECT ON OTHER
DOCUMENTS
Notice 2023-68 is superseded.

Bulletin No. 2024–41

DRAFTING INFORMATION
The principal author of this notice is C.
Dylan Durham of the Office of Associate
Chief Counsel (Income Tax & Accounting). For further information regarding
this notice, contact Mr. Durham at 202317-7005 (not a toll-free number).

Credit for Renewable
Electricity Production and
Publication of Inflation
Adjustment Factor and
Reference Price for
Calendar Year 2024
Notice 2024-69
This notice publishes the inflation
adjustment factor and reference price for
calendar year 2024 for the renewable electricity production credit under section 45
of the Internal Revenue Code (section 45
credit). The 2024 inflation adjustment factor and reference price are used in determining the availability of the credit and
apply to calendar year 2024 sales of kilowatt hours of electricity produced in the
United States or a possession thereof from
qualified energy resources.
BACKGROUND
Section 45 was amended by section
13101 of Public Law 117-169, 136 Stat.
1818 (August 16, 2022), commonly
known as the Inflation Reduction Act
of 2022 (IRA). The IRA changed the
manner in which the section 45 credit
amounts are calculated for any qualified
facility placed in service after December
31, 2021.
As amended by the IRA, section 45(b)
(6)(A) provides that, in the case of any
qualified facility that satisfies the requirements of section 45(b)(6)(B), the credit
amount determined under section 45(a)
(determined after the application of sec-

tion 45(b)(1) through (5) and without
regard to section 45(b)(6)) is equal to
such amount multiplied by 5. A qualified
facility satisfies the requirements of section 45(b)(6)(B) if it is placed in service
after December 31, 2021, and it is one of
the following: (i) a facility with a maximum net output of less than 1 megawatt
(as measured in alternating current); (ii)
a facility the construction of which began
prior to January 29, 2023, which is the
date that is 60 days after the publication of
the guidance with respect to the requirements of section 45(b)(7)(A) (prevailing
wage requirements) and section 45(b)(8)
(apprenticeship requirements);1 or (iii) a
facility that satisfies the requirements of
section 45(b)(7)(A) and (8). The IRA also
added bonus credit amounts with respect
to qualified facilities placed in service after
December 31, 2022, that meet domestic
content requirements under section 45(b)
(9)2 or energy community requirements
under section 45(b)(11).3
The IRA amended the phaseout of the
section 45 credit for wind facilities under
section 45(b)(5) such that it does not apply
to facilities placed in service after December 31, 2021. The IRA also added a new
phaseout of the section 45 credit under
section 45(b)(10) in the case of qualified
facilities placed in service after December
31, 2022, for taxpayers making an elective payment election under section 6417.
The IRA also amended the credit amount
reduction under section 45(b)(3) in the
case of qualified facilities the construction
of which began after August 16, 2022.
The IRA amended section 45(d)(4) to
restore the section 45 credit for electricity produced in solar energy facilities in
the case of qualified facilities placed in
service after December 31, 2021, and the
construction of which begins before January 1, 2025. Effective for facilities placed
in service after December 31, 2022, the
IRA (1) removed the one-half reduction
of the credit amount under section 45(b)
(4)(A) for qualified hydropower facilities
and marine and hydrokinetic renewable
energy facilities and (2) amended the definition of marine and hydrokinetic renew-

able energy under section 45(c)(10) and
the definition of a marine and hydrokinetic
renewable energy facility under section
45(d)(11). The IRA also extended certain
deadlines in the definitions under section
45(d) for wind facilities, closed-loop biomass facilities, open-loop biomass facilities, geothermal facilities, landfill gas
facilities, trash facilities, qualified hydropower facilities, and marine and hydrokinetic renewable energy facilities.
Section 45(a) provides that the renewable electricity production credit for any
tax year is an amount equal to the product
of the kilowatt hours of specified electricity produced by the taxpayer and sold to
an unrelated person during the tax year
multiplied by 1.5 cents (in the case of a
qualified facility placed in service before
January 1, 2022) or 0.3 cents (in the case
of a qualified facility placed in service
after December 31, 2021). This electricity
must be produced from qualified energy
resources and at a qualified facility during
the 10-year period beginning on the date
the facility was originally placed in service.
Section 45(b)(1) provides that the
amount of the credit determined under
section 45(a) is reduced by an amount
which bears the same ratio to the amount
of the credit as the amount by which the
reference price for the calendar year in
which the sale occurs exceeds 8 cents,
bears to 3 cents. Under section 45(b)(2),
the 1.5 cent (or 0.3 cent) amount in section 45(a) and the 8 cent amount in section
45(b)(1) are each adjusted by multiplying
such amount by the inflation adjustment
factor for the calendar year in which the
sale occurs. In the case of any qualified
facility placed in service before January
1, 2022, if any amount as increased under
section 45(b)(2) is not a multiple of 0.1
cent, such amount is rounded to the nearest multiple of 0.1 cent. In the case of any
qualified facility placed in service after
December 31, 2021, if the 0.3 cent amount
as increased under section 45(b)(2) is not
a multiple of 0.05 cent, such amount is
rounded to the nearest multiple of 0.05
cent.

See §§ 1.45-6, 1.45-7, 1.45-8, and 1.45-12 of the Income Tax Regulations for additional information regarding the requirements of section 45(b)(6)(B).
See Notice 2023-38, 2023-22 I.R.B. 872 (May 12, 2023) and Notice 2024-41, IR-2024-140 (May 16, 2024), corrected at IR 2024-147 (May 24, 2024), for additional information regarding
the domestic content bonus credit.
3
See Notice 2024-30, 2024-16 I.R.B. 878 (April 15, 2024), for additional information regarding the energy community bonus credit.
1
2

Bulletin No. 2024–41

733

October 7, 2024

In the case of electricity produced in
open-loop biomass facilities, landfill gas
facilities, trash facilities, qualified hydropower facilities, and, if placed in service before January 1, 2023, marine and
hydrokinetic renewable energy facilities,
section 45(b)(4)(A) requires the amount
in effect under section 45(a)(1) for such
calendar year (determined before rounding as required by section 45(b)(2)) to be
reduced by one-half. As amended by the
IRA, the one-half reduction under section
45(b)(4)(A) no longer applies to qualified hydropower facilities and marine and
hydrokinetic renewable energy facilities
placed in service after December 31, 2022.
Section 45(b)(5) provides that in the
case of any qualified wind facility placed
in service before January 1, 2022, the
amount of the credit determined under
section 45(a) (determined after the application of section 45(b)(1), (2), and (3) and
without regard to section 45(b)(5)) shall
be reduced by (A) in the case of any facility the construction of which began after
December 31, 2016, and before January 1,
2018, 20 percent, (B) in the case of any
facility the construction of which began
after December 31, 2017, and before January 1, 2019, 40 percent, (C) in the case
of any facility the construction of which
began after December 31, 2018, and
before January 1, 2020, 60 percent, and
(D) in the case of any facility the construction of which began after December
31, 2019, and before January 1, 2022, 40
percent.
Section 45(c)(1) defines qualified
energy resources as wind, closed-loop
biomass, open-loop biomass, geothermal energy, solar energy, municipal solid
waste, qualified hydropower production,
and marine and hydrokinetic renewable
energy.
Section 45(d)(1) defines a qualified
facility using wind to produce electricity as any facility owned by the taxpayer
that is originally placed in service after
December 31, 1993, and the construction
of which begins before January 1, 2025.
See section 45(e)(7) for rules relating to
the inapplicability of the credit to electricity sold to utilities under certain contracts.
Section 45(d)(2)(A) defines a qualified facility using closed-loop biomass to
produce electricity as any facility owned
by the taxpayer that is originally placed

October 7, 2024

in service after December 31, 1992, and
the construction of which begins before
January 1, 2025, or owned by the taxpayer which before January 1, 2025, is
originally placed in service and modified
to use closed-loop biomass to co-fire with
coal, with other biomass, or with both, but
only if the modification is approved under
the Biomass Power for Rural Development Programs or is part of a pilot project
of the Commodity Credit Corporation as
described in 65 FR 63052. For purposes
of section 45(d)(2)(A)(ii), a facility shall
be treated as modified before January 1,
2025, if the construction of such modification begins before such date. Section 45(d)
(2)(C) provides that in the case of a qualified facility described in section 45(d)(2)
(A)(ii), the 10-year period referred to in
section 45(a) is treated as beginning no
earlier than the date of the enactment of
section 45(d)(2)(C)(i) (October 22, 2004),
and if the owner of such facility is not the
producer of the electricity, the person eligible for the credit allowable under section
45(a) is the lessee or the operator of such
facility. A qualified facility using closedloop biomass includes a new unit placed
in service after the date of the enactment
of section 45(d)(2)(B) (October 3, 2008)
in connection with a qualified facility
using closed-loop biomass, but only to the
extent of the increased amount of electricity produced at the facility by reason of
such new unit.
Section 45(d)(3)(A) defines a qualified
facility using open-loop biomass to produce electricity as any facility owned by
the taxpayer which in the case of a facility
using agricultural livestock waste nutrients, is originally placed in service after
the date of the enactment of section 45(d)
(3)(A)(i)(I) (October 22, 2004) and the
construction of which begins before January 1, 2025, and the nameplate capacity
rating of which is not less than 150 kilowatts, and in the case of any other facility,
the construction of which begins before
January 1, 2025. In the case of any facility described in section 45(d)(3)(A), if
the owner of such facility is not the producer of the electricity, section 45(d)(3)
(C) provides that the person eligible for
the credit allowable under section 45(a) is
the lessee or the operator of such facility.
A qualified facility using open-loop biomass includes a new unit placed in service

734

after the date of the enactment of section
45(d)(3)(B) (October 3, 2008) in connection with a qualified facility using openloop biomass, but only to the extent of the
increased amount of electricity produced
at the facility by reason of such new unit.
Section 45(d)(4) defines a qualified
facility using geothermal energy to produce electricity as any facility owned by
the taxpayer that is originally placed in
service after the date of the enactment of
section 45(d)(4) (October 22, 2004) and
the construction of which begins before
January 1, 2025. A qualified facility using
geothermal energy does not include any
property described in section 48(a)(3) the
basis of which is taken into account by the
taxpayer for purposes of determining the
energy credit under section 48.
As amended by the IRA and effective
for solar energy facilities placed in service
after December 31, 2021, section 45(d)(4)
also defines a qualified facility using solar
energy to produce electricity as any facility owned by the taxpayer that is originally placed in service after the date of the
enactment of section 45(d)(4) (October
22, 2004) and the construction of which
begins before January 1, 2025. A qualified
facility using solar energy does not include
any property described in section 48(a)(3)
the basis of which is taken into account by
the taxpayer for purposes of determining
the energy credit under section 48.
Section 45(d)(6) defines a qualified
facility using gas derived from the biodegradation of municipal solid waste to
produce electricity as any facility owned
by the taxpayer that is originally placed in
service after the date of the enactment of
section 45(d)(6) (October 22, 2004) and
the construction of which begins before
January 1, 2025.
Section 45(d)(7) defines a qualified
facility (other than a facility described in
section 45(d)(6)) that uses municipal solid
waste to produce electricity as any facility owned by the taxpayer that is originally placed in service after the date of the
enactment of section 45(d)(7) (October
22, 2004) and the construction of which
begins before January 1, 2025. A qualified facility using municipal solid waste
includes a new unit placed in service in
connection with a facility placed in service on or before the date of the enactment
of section 45(d)(7), but only to the extent

Bulletin No. 2024–41

of the increased amount of electricity produced at the facility by reason of such new
unit.
Section 45(d)(9) defines a qualified
facility producing qualified hydroelectric
production (as described in section 45(c)
(8)) as (i) any facility producing incremental hydropower production, but only to the
extent of its incremental hydropower production attributable to efficiency improvements or additions to capacity described in
section 45(c)(8)(B) placed in service after
the date of the enactment of section 45(d)
(9) (August 8, 2005) and before January
1, 2025, and (ii) any other facility placed
in service after the date of the enactment
of section 45(d)(9) (August 8, 2005) and
the construction of which begins before
January 1, 2025. Section 45(d)(9)(B) provides that, in the case of a qualified facility described in section 45(d)(9)(A), the
10-year period referred to in section 45(a)
shall be treated as beginning on the date
the efficiency improvements or additions
to capacity are placed in service. Section
45(d)(9)(C) provides that for purposes
of section 45(d)(9)(A)(i), an efficiency
improvement or addition to capacity shall
be treated as placed in service before January 1, 2025, if the construction of such
improvement or addition begins before
such date.
As amended by the IRA, section 45(d)
(11) provides that, in the case of a facility producing electricity from marine
and hydrokinetic renewable energy, the
term “qualified facility” means any facility owned by the taxpayer which has a
nameplate capacity rating of at least 150
kilowatts (or at least 25 kilowatts in the
case of a facility placed in service after
December 31, 2022), and is originally
placed in service on or after the date of
the enactment of section 45(d)(11) (October 3, 2008) and the construction of which
begins before January 1, 2025.
Section 45(e)(2)(A) requires the Secretary to determine and publish in the Federal Register each calendar year the inflation adjustment factor and the reference
price for such calendar year. The inflation
adjustment factor and the reference price
for the 2024 calendar year were published
in the Federal Register at 89 FR 56924

on July 11, 2024. A correction notice was
published in the Federal Register at 89 FR
76191 on September 17, 2024.
Section 45(e)(2)(B) defines the inflation adjustment factor for a calendar year
as a fraction the numerator of which is the
GDP implicit price deflator for the preceding calendar year and the denominator
of which is the GDP implicit price deflator for the calendar year 1992. The term
“GDP implicit price deflator” means the
most recent revision of the implicit price
deflator for the gross domestic product as
computed and published by the Department of Commerce before March 15 of
the calendar year.
Section 45(e)(2)(C) provides that the
reference price with respect to a calendar
year is the Secretary’s determination of
the annual average contract price per kilowatt hour of electricity generated from the
same qualified energy resource and sold
in the previous year in the United States.
Only contracts entered into after December 31, 1989, are taken into account.
INFLATION ADJUSTMENT
FACTOR AND REFERENCE PRICE
The inflation adjustment factor for
calendar year 2024 for qualified energy
resources is 1.9499.
The reference price for calendar year
2024 for facilities producing electricity
from wind (based upon information provided by the Department of Energy) is
3.15 cents per kilowatt hour. The reference prices for facilities producing electricity from closed-loop biomass, openloop biomass, geothermal energy, solar
energy, municipal solid waste, qualified
hydropower production, and marine and
hydrokinetic renewable energy have not
been determined for calendar year 2024.
PHASEOUT CALCULATION
Because the 2024 reference price for
electricity produced from wind (3.15 cents
per kilowatt hour) does not exceed 8 cents
multiplied by the inflation adjustment factor (1.9499), the phaseout of the credit provided in section 45(b)(1) does not apply to
such electricity sold during calendar year

2024. However, section 45(b)(5) provides
an additional phaseout of the credit for
wind facilities placed in service before
January 1, 2022, and the construction of
which began after December 31, 2016.
For electricity produced from closed-loop
biomass, open-loop biomass, geothermal energy, solar energy, municipal solid
waste, qualified hydropower production,
and marine and hydrokinetic renewable
energy, the phaseout of the credit provided
in section 45(b)(1) does not apply to such
electricity sold during calendar year 2024.
CREDIT AMOUNT FOR A
QUALIFIED FACILITY PLACED
IN SERVICE BEFORE JANUARY 1,
2022
As required by section 45(b)(2), the 1.5
cent amount provided in section 45(a)(1)
is adjusted by multiplying such amount
by the inflation adjustment factor for the
calendar year in which the sale occurs.
If any amount as increased under section
45(b)(2) is not a multiple of 0.1 cent, such
amount is rounded to the nearest multiple of 0.1 cent. In the case of electricity
produced in open-loop biomass facilities,
landfill gas facilities, trash facilities, qualified hydropower facilities, and marine and
hydrokinetic renewable energy facilities,
section 45(b)(4)(A) requires the amount in
effect under section 45(a)(1) for such calendar year (before rounding to the nearest
0.1 cent as required by section 45(b)(2)) to
be reduced by one-half.4
Under the calculation required by section 45(b)(2), the credit for renewable
electricity production for calendar year
2024 determined under section 45(a) is
2.9 cents per kilowatt hour on the sale of
electricity produced in any qualified facility placed in service before January 1,
2022, from the qualified energy resources
of wind, closed-loop biomass, and geothermal energy, and 1.5 cents per kilowatt
hour on the sale of electricity produced
in any qualified facility placed in service
before January 1, 2022, from the qualified
energy resources of open-loop biomass,
landfill gas, trash, qualified hydropower,
and marine and hydrokinetic renewable
energy.

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

Bulletin No. 2024–41

735

October 7, 2024

CREDIT AMOUNT FOR A
QUALIFIED FACILITY PLACED IN
SERVICE AFTER DECEMBER 31,
2021
As required by section 45(b)(2), the 0.3
cent amount provided in section 45(a)(1)
is adjusted by multiplying such amount by
the inflation adjustment factor for the calendar year in which the sale occurs. If the
0.3 cent amount as adjusted for inflation
is not a multiple of 0.05 cent, the amount
is rounded to the nearest multiple of 0.05
cent. In the case of electricity produced
in open-loop biomass facilities, landfill
gas facilities, trash facilities, qualified
hydropower facilities, and marine and
hydrokinetic renewable energy facilities,
section 45(b)(4)(A) requires the amount
in effect under section 45(a)(1) for such
calendar year (determined before rounding as required by section 45(b)(2)) to be
reduced by one-half.
Under the calculation required by section 45(b)(2), the credit for renewable
electricity production for calendar year
2024 determined under section 45(a) is
0.6 cents per kilowatt hour on the sale of
electricity produced in any qualified facil-

October 7, 2024

ity placed in service after December 31,
2021, from the qualified energy resources
of wind, closed-loop biomass, geothermal
energy, and solar energy, and 0.3 cents
per kilowatt hour on the sale of electricity
produced in any qualified facility placed
in service after December 31, 2021, from
the qualified energy resources of openloop biomass, landfill gas and trash. The
credit for renewable electricity production for calendar year 2024 determined
under section 45(a) is also 0.3 cents per
kilowatt hour on the sale of electricity
produced in any qualified facility placed
in service after December 31, 2021, and
before January 1, 2023, from the qualified
energy resources of qualified hydropower
and marine and hydrokinetic renewable
energy.
CREDIT AMOUNT FOR QUALIFIED
HYDROPOWER FACILITIES AND
MARINE AND HYDROKINETIC
RENEWABLE ENERGY FACILITIES
PLACED IN SERVICE AFTER
DECEMBER 31, 2022

ified hydropower facilities and marine
and hydrokinetic renewable energy facilities placed in service after December 31,
2022. Accordingly, under the calculation
required by section 45(b)(2), the credit
for renewable electricity production for
calendar year 2024 determined under section 45(a) is 0.6 cents per kilowatt hour
on the sale of electricity produced in any
qualified facility placed in service after
December 31, 2022, from the qualified
energy resources of qualified hydropower
and marine and hydrokinetic renewable
energy.
DRAFTING AND CONTACT
INFORMATION
The principal author of this notice is
Charles Hyde of the Office of Associate
Chief Counsel (Passthroughs & Special Industries). For further information
regarding this notice contact Mr. Hyde at
(202) 317-6853 (not a toll-free number).

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

736

Bulletin No. 2024–41

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. 2024-36
TABLE OF CONTENTS

Part 1 – SUBSTITUTE FORMS W-2C AND W-3C
Section 1.1 – Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738
Section 1.2 – What’s New. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740
Section 1.3 – Filing Forms W-2c and W-3c Electronically. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741
Section 1.4 – Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA. . . . . . . . . . . . . . . 741
Section 1.5 – Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA. . . . . . . 744
Section 1.6 – Requirements for Substitute Privately Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees. . . 747
Section 1.7 – Instructions for Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748
Section 1.8 – OMB Requirements for Both Red-Ink and Black-and-White Substitute Forms W-2c and W-3c. . . . . . . . . . . . 749
Section 1.9 – Order Forms and Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750
Section 1.10 – Effect on Other Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750
Section 1.11 – Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

Bulletin No. 2024–41

737

October 7, 2024

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 W-2c (Copy A) and substitute black-and-white Form W-3c 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
C:DC:TS: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.

October 7, 2024

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Bulletin No. 2024–41

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
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 Forms W-2c and envelopes containing 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, or on an envelope or enclosed in an envelope containing any of those documents,
with the following exceptions:
•

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

•

Forms and envelopes 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).
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, C:DC:TS:CAR:MP:P:TP:TP,
ATSC, 4800 Buford Highway, Mail Stop 061-N, Chamblee, GA 30341.

Bulletin No. 2024–41

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October 7, 2024

.06 The Internal Revenue Service/Technical Service Operation (IRS/TSO) 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. Questions regarding the filing of information
returns can be emailed to fire@irs.gov. When you send emails concerning specific file information,
include the company name and the electronic file name or Transmitter Control Code (TCC). Do
not include tax identification numbers (TINs) or attachments in email correspondence because
electronic mail is not secure.
File paper or electronic Forms W-2c (Copy A) with the SSA. The IRS/TSO does not process
Forms W-2c (Copy A).
.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 OMB Number. The June 2024 revisions of Forms W-2c and W-3c have a new OMB Number:
1545-0029. This number is the same as that for the 2025 and later Forms W-2 (including territorial
Forms W-2), W-3, W-3SS, and various revisions of other employment tax forms.
.02 Changes to IRS customer service information. The Internal Revenue Service/Information
Returns Branch (IRS/IRB) is now known as the Internal Revenue Service/Technical Service
Operation (IRS/TSO). The phone numbers for the call site have not changed. However, the
address for email inquiries has changed to ire@irs.gov. See Section 1.1.06 above for more
information.
.03 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,
C:DC:TS:CAR:MP:P:TP:TP, ATSC, 4800 Buford Highway, Mail Stop 061-N, Chamblee, GA
30341.
.04 Identifying number 44444. We clarified Section 1.6.05 to add that the identifying number
“44444” and “For Official Use Only” text are not required to be included on employee copies of
substitute Forms W-2c.
.05 Exhibits. All of the exhibits in this publication were updated for the June 2024 revisions of
those forms.
.06 Editorial changes. We made editorial changes throughout, including to update references.
Redundancies were eliminated as much as possible.

October 7, 2024

740

Bulletin No. 2024–41

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 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.

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 . . . . . . . . . . . . . . . . . . . . . . . .

4.5

•

Basis weight: 17 x 22 inch 500 cut sheets, pound . . . . . . . . . . . . . . . . .

18–20

•

Metric equivalent—gm./sq. meter
(a tolerance of +5 pct. is allowed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

•

Bulletin No. 2024–41

68–75

Stiffness: Average, each direction, not less than—milligrams
Cross direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50

Machine direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

80

741

October 7, 2024

•

Tearing strength: Average, each direction, not less
than—grams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40

•

Opacity: Average, not less than—percent . . . . . . . . . . . . . . . . . . . . .

82

•

Reflectivity: Average, not less than—percent . . . . . . . . . . . . . . . . . .

68

•

Thickness: Average—inch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.0038

Metric equivalent—mm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.097

•

(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 . . . . . . . . . . . . . . . . . . . .

10

•

Finish (smoothness): Average, each side—seconds . . . . . . . . . . . . . . .

20–55

(for information only) the Sheffield equivalent—units . . . . . . . . . . . . .

170-d200

Dirt: Average, each side, not to exceed—parts per million . . . . . . . . . ..

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.
•

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,

October 7, 2024

742

Bulletin No. 2024–41

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 pinfed 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.
.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.

Bulletin No. 2024–41

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October 7, 2024

If you use the U.S. Postal Service, 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 an IRS-approved private delivery service to file, replace “P.O. Box 3333”
with “Attn: W-2c Process, 1150 E. Mountain Dr.” in the address and change the ZIP code to
“18702-7997.” Go to www.IRS.gov/PDS 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
black-and-white Form W-2c (Copy A) and W-3c are similar to the red-ink forms (Section 1.4)
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.

October 7, 2024

744

Bulletin No. 2024–41

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. 2024–41

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
and 3/16 (7.19) inches.

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October 7, 2024

3.

The distance from the top line of Form W-2c (Copy A) to the bottom line of the form must
measure 9 and 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 and 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
and 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 and
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-andwhite Forms W-2c (Copy A) and Forms W-3c in a PDF version electronically for approval to
the copy.a.forms@ssa.gov mailbox 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.

October 7, 2024

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.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.
.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. The identifying number “44444” and “For Official Use Only”
text on the IRS-printed Form W-2c employee copies (Copies B, C, and 2) are not required to be
included on employee copies of substitute Forms W-2c.
.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.

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.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.
.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 the SSA or have the ability to reconstruct the data for at least 4 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.

October 7, 2024

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.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.
.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 Substitute Forms W-2c and W-3c
.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.
•

Bulletin No. 2024–41

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

749

October 7, 2024

•

The OMB number for both Form W-2c (Copy A) and Form W-3c is 1545-0029 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.
.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 2023-39, 2023-52 I.R.B. dated December 26, 2023 (reprinted as Publication
1223, Revised 12-2023), 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) 06-2024
Exhibit B — Form W-3c (Red-Ink) 06-2024
Exhibit C — Form W-2c (Copy A) (Substitute Laser/ Black-and-White) 06-2024
Exhibit D — Form W-3c (Substitute Laser/Black-and-White) 06-2024

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26 CFR 601.601: Rules and regulations.
(Also Part 1, §§103, 148; 1.148-3, 1.148-5, 1.148-7,
1.148-10, 1.148-11, 1.148-13T.)

Rev. Proc. 2024-37
SECTION 1. PURPOSE
This revenue procedure provides guidance to issuers of tax-exempt and other
tax-advantaged bonds (as defined in
§ 1.150-1(b) of the Income Tax Regulations1) regarding the procedures for filing
claims for recovery of overpayments (as
defined in § 1.148-3(i)(1)) of amounts
paid to the United States with respect to
the rebate requirement under § 148(f) for
excess investment earnings, the penalty in
lieu of rebate provisions under § 148(f)(4)
(C)(vii) and (viii), or the yield reduction
payment provisions under § 1.148-5(c).
This revenue procedure modifies and
supersedes Rev. Proc. 2008-37, 2008-2
(Vol.1) C.B. 137, as modified by Rev.
Proc. 2017-50, 2017-37 I.R.B. 234, and
supersedes Rev. Proc. 2017-50.
SECTION 2. BACKGROUND
.01 Under § 103(b)(2), the exclusion
from gross income of interest on any
State or local bond under § 103(a) does
not apply to interest on an arbitrage bond
within the meaning of § 148.
.02 The requirements of § 148 apply to
tax-exempt bonds and, generally, to other
tax-advantaged bonds.
.03 Section 148(f)(1) generally provides that a bond that is part of an issue
is treated as an arbitrage bond, unless the
issuer pays to the United States any rebate
amounts described in § 148(f)(2) (rebate)
for the issue in accordance with § 148(f)
(3).
.04 Section 148(f)(3) provides, in part,
that, except to the extent provided by the
Secretary of the Treasury or her delegate,
rebate must be paid in installments that are
made at least once every five years. The
last installment must be made no later than
60 days after the date on which the last
bond of the issue is redeemed.
.05 Section 148(f)(4)(C)(vii) and (viii)
permit issuers of construction issues (as

1

defined in § 148(f)(4)(C)(iv)) to elect to
pay a penalty in lieu of rebate in the manner and amount described in § 148(f)(4)
(C)(vii) and (viii).
.06 Section 1.148-5(c)(1) permits issuers to pay yield reduction payments to
the United States that may be taken into
account in determining the yield on an
investment for purposes of § 148 in the
circumstances and manner described in
§ 1.148-5(c).
.07 Section 1.148-3(i)(1) provides that,
in general, an issuer may recover an overpayment of rebate by establishing to the
satisfaction of the Commissioner of Internal Revenue or his delegate (Commissioner) that the overpayment occurred. An
overpayment is the excess of the amount
paid to the United States for an issue over
the sum of the “rebate amount” (as defined
in §§ 1.148-1(b) and 1.148-3(b)) as of
the most recent “computation date” (as
defined in § 1.148-3(e)) and all amounts
that are otherwise required to be paid
under § 148 as of the date the recovery is
requested. Under § 1.148-3(e)(2), the final
computation date generally is the date that
an issue is discharged.
.08 In general, overpayments of the
penalty in lieu of rebate and yield reduction payments are treated in the same
manner as overpayments of rebate. See
generally, §§ 1.148-3(i)(1), 1.148-3(i)(2)
(ii), 1.148-5(c)(1) and (2), and 1.148-7(k)
(3) and (m).
.09 Section 1.148-3(i)(3)(i) provides
that an issuer must request a refund of
an overpayment (claim) no later than the
date that is two years after the final computation date for the issue to which the
overpayment relates (filing deadline). The
claim must be made using the form provided by the Commissioner for this purpose.
.10 Section 1.148-3(i)(3)(ii) provides
that the Commissioner may request additional information to support a claim. The
issuer must file the additional information
by the date specified in the Commissioner’s request, which date may be extended
by the Commissioner if unusual circumstances warrant. An issuer will be given
at least 21 calendar days to respond to a
request for additional information.

.11 Section 1.148-3(i)(3)(iii) provides
that a claim described in either § 1.148-3(i)
(3)(iii)(A) or (B) that has been denied by
the Commissioner may be appealed to the
Independent Office of Appeals (Appeals).
A claim is described in § 1.148-3(i)(3)(iii)
(A) if the Commissioner asserts that the
claim was filed after the filing deadline. A
claim is described in § 1.148-3(i)(3)(iii)
(B) if the Commissioner asserts that additional information to support the claim
was not submitted within the time specified in the request for information or in any
extension of such specified time period.
The procedures for an issuer of tax-advantaged bonds to request an administrative
appeal to Appeals are provided in Rev.
Proc. 2021-10, 2021-4 I.R.B. 503. When
an appeal of a claim described in either
§ 1.148-3(i)(3)(iii)(A) or (B) is determined in favor of the issuer, Appeals must
return the case to the office that is responsible for examinations of tax-advantaged
bonds (presently the Office of Tax Exempt
Bonds) for further consideration of the
substance of the claim.
.12 Section 1.148-11(k)(3)(i) provides
that § 1.148-3(i)(3)(i) applies to claims
for recovery of overpayments arising
from an issue of bonds to which § 1.1483(i) applies and for which the final computation date is after June 24, 2008. For
purposes of § 1.148-3(k)(3)(i), issues for
which the actual final computation date is
on or before June 24, 2008, are deemed
to have a final computation date of July
1, 2008, for purposes of applying § 1.1483(i)(3)(i).
.13 Section 1.148-11(k)(3)(ii) provides
that § 1.148-3(i)(3)(ii) and (iii) apply to
claims arising from an issue of bonds to
which § 1.148-3(i) applies and for which
the final computation date is after September 16, 2013.
.14 Section 1.148-13T of the Temporary Income Tax Regulations (1992
regulations), which was published in the
Federal Register on May 18, 1992 (T.D.
8418, 1992-1 C.B. 29 [57 F.R. 20971]),
provides rules for recovering an overpayment of rebate or penalty in lieu of rebate
with respect to certain bonds issued before
July 1, 1993. Under § 1.148-13T(a) and
(c)(1) of the 1992 regulations, an issuer

Unless otherwise specified, all “section” or “§” references are to sections of the Internal Revenue Code or the Income Tax Regulations (26 CFR part 1).

Bulletin No. 2024–41

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October 7, 2024

may recover an overpayment of rebate or
penalty in lieu of rebate to the extent that
recovery on the date requested would not
result in an additional rebate amount as of
the date requested if the issuer proves to
the satisfaction of the Commissioner that
the overpayment occurred and was paid
because of a mistake.
.15 Rev. Proc. 2008-37 sets forth procedures for filing claims for the refund of
overpayments of rebate, penalty in lieu of
rebate, or yield reduction payments. Rev.
Proc. 2008-37 imposes the same deadline
for filing such claims as the filing deadline
in § 1.148-3(i)(3)(i). Section 1.148-10(g)
provides authority to the Commissioner to
waive regulatory limitations under certain
circumstances. Specifically, § 1.148-10(g)
provides that, notwithstanding any specific
provision in §§ 1.148-1 through 1.148-11,
the Commissioner may prescribe extensions of temporary periods, larger reasonably required reserve or replacement
funds, or consequences of failures or
remedial action under § 148 in lieu of or
in addition to other consequences of those
failures, or take other action, if the Commissioner finds that good faith or other
similar circumstances so warrant, consistent with the purposes of § 148. In the
interest of sound tax administration and in
reliance on the authority provided under
§ 1.148-10(g), Rev. Proc. 2017-50 extends
the time for filing claims to recover overpayments under § 148 to ensure that
issuers have a reasonable opportunity to
recover overpayments made both before
and after the final computation date. Rev.
Proc. 2017-50 adds 60 days to the existing
two-year deadline under § 1.148-3(i)(3)
(i) and provides a new two-year deadline
with respect to the payments made after
the date that is 60 days after the final computation date.
SECTION 3. SCOPE
This revenue procedure applies to
claims submitted pursuant to § 1.148-3(i)
of any overpayment of an amount paid by
an issuer of tax-exempt and other tax-advantaged bonds to the United States to
meet the requirements of § 148, including
a payment of rebate, a payment of a penalty in lieu of rebate, and a yield reduction payment. Claims that are made under
the 1992 regulations will be treated in

October 7, 2024

the same manner as claims made under
§ 1.148-3(i).
SECTION 4. PROCEDURE FOR
CLAIMS FOR RECOVERY OF
OVERPAYMENT OF REBATE,
PENALTY IN LIEU OF REBATE,
AND YIELD REDUCTION
PAYMENTS
.01 Form 8038-R, Request for Recovery
of Overpayments Under Arbitrage Rebate
Provisions. A claim must be made by
completing and timely filing Form 8038R, Request for Recovery of Overpayments
Under Arbitrage Rebate Provisions, and
any attachments thereto with the Internal
Revenue Service in accordance with the
Form 8038-R instructions (or the then-applicable form and instructions as may be
announced by the Internal Revenue Service from time to time).
.02 Timely filing of a claim. An issuer
must file a claim for refund of an overpayment with respect to an issue of bonds no
later than two years after:
(1) the date that is 60 days after the final
computation date of the issue to which the
payment relates; or
(2) with respect to the portion of the
overpayment paid more than 60 days
after the final computation date, the date
that the payment was made to the United
States.
.03 Processing claims. The Commissioner may allow a claim, reject a claim
under circumstances described in section
4.03(1) of this revenue procedure (Claim
Rejection), or deny a claim in full or in
part as described in section 4.03(2) of this
revenue procedure (Claim Denial).
(1) Claim Rejection. The Commissioner may reject a claim based on an
issuer’s (i) failure to follow procedures or
requirements for filing or supporting the
claim, or (ii) submission of a claim that
relies on substantive matters that were
previously reviewed and resulted in a
Claim Denial (without regard to whether
the Claim Denial has become final or
not), or a closing agreement. If a claim is
rejected, the Commissioner will notify the
issuer by letter explaining the reasons for
the rejection.
(a) Failure to meet the requirements
for processing a claim. If the issuer fails
to follow procedures or requirements for

756

filing or supporting a claim (as described
in section 4.03(1)(i) of this revenue procedure), the Commissioner will notify the
issuer by letter describing any requirements that have not been satisfied and will
provide the issuer 45 calendar days from
the date of the notification to satisfy the
procedures and requirements for filing or
supporting a claim before notifying the
issuer by letter of the Claim Rejection (as
described in section 4.03(1) of this revenue procedure).
(b) Resubmission permitted after
Claim Rejection. After a Claim Rejection
based on an issuer’s failure to follow procedures or requirements for filing or supporting the claim, an issuer may resubmit
the claim to address the basis for the rejection, provided that the resubmitted claim
is filed by the filing deadline as described
in section 4.02 of this revenue procedure.
(2) Claim Denial. The Commissioner
will notify the issuer of a Claim Denial
by letter explaining the reasons for the
denial and informing the issuer of its right
to request an appeal (see section 4.04 of
this revenue procedure). If a Claim Denial
becomes final under section 4.06 of Rev.
Proc. 2021-10 (failure to make an appeals
request) or because Appeals sustains
the Claim Denial in full or in part, the
issuer may not submit thereafter a claim
for the arbitrage payment(s) with respect
to claim(s) on which the Claim Denial
became final and any such claim will be
rejected under section 4.03(1) of this revenue procedure.
.04 Appeals. An issuer is entitled to
appeal a Claim Denial to Appeals under
the procedures set forth in Rev. Proc. 202110. When an appeal of a claim described
in either § 1.148-3(i)(3)(iii)(A) or (B) is
determined in favor of the issuer, Appeals
must return the case to the office that is
responsible for examinations of tax-advantaged bonds (presently the Office of
Tax Exempt Bonds) for further consideration of the substance of the claim.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
This revenue procedure modifies and
supersedes Rev. Proc. 2008-37, as modified by Rev. Proc. 2017-50, and supersedes Rev. Proc. 2017-50 as of October
18, 2024.

Bulletin No. 2024–41

SECTION 6. EFFECTIVE DATE
This revenue procedure applies to
claims filed on or after October 18,
2024. An issuer that files a claim prior
to October 18, 2024, may apply this
revenue procedure in whole (and not
in part) by affirmatively stating in the
claim that it is applying Rev. Proc.
2024-37.

Bulletin No. 2024–41

SECTION 7. PAPERWORK
REDUCTION ACT

SECTION 8. DRAFTING
INFORMATION

The collection of information contained
in section 4 of this revenue procedure has
been previously reviewed and approved
by the Office of Management and Budget
in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control
number 1545-0047.

The principal author of this revenue
procedure is Brian Choi, Office of Associate Chief Counsel (Financial Institutions
and Products). For further information
regarding this revenue procedure, call
Mr. Choi at 202-317-3154 (not a toll-free
number).

757

October 7, 2024

Part IV
Announcement of
Disciplinary Sanctions
From the Office of
Professional Responsibility
Announcement 2024-34
The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents,
enrolled actuaries, enrolled retirement
plan agents, appraisers, and unenrolled/
unlicensed return preparers (individuals
who are not enrolled to practice and are
not licensed as attorneys or certified public accountants). Licensed or enrolled
practitioners are subject to the regulations
governing practice before the Internal
Revenue Service (IRS), which are set out
in Title 31, Code of Federal Regulations,
Subtitle A, Part 10, and which are released
as Treasury Department Circular No.
230. The regulations prescribe the duties
and restrictions relating to such practice
and prescribe the disciplinary sanctions
for violating the regulations. Unenrolled/
unlicensed return preparers are subject to
Revenue Procedure 81-38 and superseding guidance in Revenue Procedure 201442, which govern a preparer’s eligibility
to represent taxpayers before the IRS in
examinations of tax returns the preparer
both prepared for the taxpayer and signed
as the preparer. Additionally, unenrolled/
unlicensed return preparers who voluntarily participate in the Annual Filing Season Program under Revenue Procedure
2014-42 agree to be subject to the duties
and restrictions in Circular 230, including
the restrictions on incompetent or disreputable conduct.
The disciplinary sanctions to be
imposed for violation of the applicable
standards are:
Disbarred from practice before the
IRS—An individual who is disbarred
is not eligible to practice before the IRS
as defined at 31 C.F.R. § 10.2(a)(4) for a
minimum period of five (5) years.
Suspended from practice before the
IRS—An individual who is suspended is

October 7, 2024

not eligible to practice before the IRS as
defined at 31 C.F.R. § 10.2(a)(4) during
the term of the suspension.
Censured in practice before the
IRS—Censure is a public reprimand.
Unlike disbarment or suspension, censure
does not affect an individual’s eligibility
to practice before the IRS, but OPR may
subject the individual’s future practice
rights to conditions designed to promote
high standards of conduct.
Monetary penalty—A monetary penalty may be imposed on an individual who
engages in conduct subject to sanction,
or on an employer, firm, or entity if the
individual was acting on its behalf and it
knew, or reasonably should have known,
of the individual’s conduct.
Disqualification of appraiser—An
appraiser who is disqualified is barred
from presenting evidence or testimony in
any administrative proceeding before the
Department of the Treasury or the IRS.
Ineligible for limited practice—An
unenrolled/unlicensed return preparer
who fails to comply with the requirements
in Revenue Procedure 81-38 or to comply
with Circular 230 as required by Revenue
Procedure 2014-42 may be determined
ineligible to engage in limited practice as
a representative of any taxpayer.
Under the regulations, individuals
subject to Circular 230 may not assist,
or accept assistance from, individuals
who are suspended or disbarred with
respect to matters constituting practice
(i.e., representation) before the IRS, and
they may not aid or abet suspended or
disbarred individuals to practice before
the IRS.
Disciplinary sanctions are described in
these terms:
Disbarred by decision, Suspended by
decision, Censured by decision, Monetary penalty imposed by decision, and
Disqualified after hearing—An administrative law judge (ALJ) issued a decision
imposing one of these sanctions after the
ALJ either (1) granted the government’s
summary judgment motion or (2) conducted an evidentiary hearing upon OPR’s
complaint alleging violation of the regulations. After 30 days from the issuance of
the decision, in the absence of an appeal,

758

the ALJ’s decision becomes the final
agency decision.
Disbarred by default decision, Suspended by default decision, Censured
by default decision, Monetary penalty
imposed by default decision, and Disqualified by default decision—An ALJ,
after finding that no answer to OPR’s complaint was filed, granted OPR’s motion for
a default judgment and issued a decision
imposing one of these sanctions.
Disbarment by decision on appeal,
Suspended by decision on appeal, Censured by decision on appeal, Monetary penalty imposed by decision on
appeal, and Disqualified by decision
on appeal—The decision of the ALJ was
appealed to the agency appeal authority,
acting as the delegate of the Secretary
of the Treasury, and the appeal authority
issued a decision imposing one of these
sanctions.
Disbarred by consent, Suspended by
consent, Censured by consent, Monetary penalty imposed by consent, and
Disqualified by consent—In lieu of a
disciplinary proceeding being instituted
or continued, an individual offered a consent to one of these sanctions and OPR
accepted the offer. Typically, an offer of
consent will provide for: suspension for
an indefinite term; conditions that the
individual must observe during the suspension; and the individual’s opportunity, after a stated number of months, to
file with OPR a petition for reinstatement
affirming compliance with the terms of
the consent and affirming current fitness
and eligibility to practice (i.e., an active
professional license or active enrollment
status, with no intervening violations of
the regulations).
Suspended indefinitely by decision in
expedited proceeding, Suspended indefinitely by default decision in expedited
proceeding, Suspended by consent in
expedited proceeding—OPR instituted
an expedited proceeding for suspension
(based on certain limited grounds, including loss of a professional license for cause,
and criminal convictions).
Determined ineligible for limited
practice---There has been a final determination that an unenrolled/unlicensed

Bulletin No. 2024–41

return preparer is not eligible for limited
representation of any taxpayer because the
preparer violated standards of conduct or
failed to comply with any of the requirements to act as a representative.
A practitioner who has been disbarred
or suspended under 31 C.F.R. § 10.60, or
suspended under § 10.82, or a disqualified appraiser may petition for reinstatement before the IRS after the expiration
of 5 years following such disbarment,
suspension, or disqualification (or immediately following the expiration of the
suspension or disqualification period if
shorter than 5 years). Reinstatement will
not be granted unless the IRS is satisfied
that the petitioner is not likely to engage
thereafter in conduct contrary to Circular 230, and that granting such reinstatement would not be contrary to the public
interest.

Reinstatement decisions are published
at the individual’s request, and described
in these terms:
Reinstated to practice before the
IRS---The individual’s petition for
reinstatement has been granted. The
agent, and eligible to practice before the
IRS, or in the case of an appraiser, the
individual is no longer disqualified.
Reinstated to engage in limited practice before the IRS---The individual’s
petition for reinstatement has been granted.
The individual is an unenrolled/unlicensed
return preparer and eligible to engage in
limited practice before the IRS, subject to
requirements the IRS has prescribed for
limited practice by tax return preparers.
OPR has authority to disclose the
grounds for disciplinary sanctions in these
situations: (1) an ALJ or the Secretary’s
delegate on appeal has issued a final deci-

sion; (2) the individual has settled a disciplinary case by signing OPR’s “consent
to sanction” agreement admitting to one
or more violations of the regulations and
consenting to the disclosure of the admitted violations (for example, failure to file
Federal income tax returns, lack of due
diligence, conflict of interest, etc.); (3)
OPR has issued a decision in an expedited
proceeding for indefinite suspension; or
(4) OPR has made a final determination
(including any decision on appeal) that an
unenrolled/unlicensed return preparer is
ineligible to represent any taxpayer before
the IRS.
Announcements of disciplinary sanctions appear in the Internal Revenue Bulletin at the earliest practicable date. The
sanctions announced below are alphabetized first by state and second by the last
names of the sanctioned individuals.

City & State

Name

Professional
Designation

Disciplinary Sanction

Effective Date(s)

California
Carmichael

Detinne, Tiffany C.

CPA

Indefinite from
May 28, 2024

Chatsworth

Alvarez, Vicente

CPA

Granada Hills

Demirchyan, Grigor

CPA

San Francisco

Robinson,
Michael D.

CPA

Thousand Oaks

Beutel, Todd W.

CPA

West Hills

Turk, Bernard

CPA

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)
Suspended by decision in
expedited proceeding under
31 C.F.R. § 10.82(b)
Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)
Suspended by decision in
expedited proceeding under
31 C.F.R. § 10.82(b)
Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)
Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Mills, Paul S.

CPA

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Indefinite from
May 8, 2024

Hughes,
Paul S.

Attorney

Suspended by decision in
expedited proceeding under
31 C.F.R. § 10.82(b)

Indefinite from
April 29, 2024

Indefinite from
April 29, 2024
Indefinite from
May 8, 2024
Indefinite from
April 29, 2024
Indefinite from
May 8, 2024
Indefinite from
May 28, 2024

Florida
Key West

Massachusetts
Wellesley

Bulletin No. 2024–41

759

October 7, 2024

City & State

Name

Professional
Designation

Disciplinary Sanction

Effective Date(s)

Michigan
Ionia

McMahon, Brian P.

Attorney

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Indefinite from
April 3, 2024

Missouri
Sullivan

Strauser, Justin L.

CPA

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Indefinite from
May 28, 2024

Damiano,
Robert S.

CPA

Jersey City

Lisa, James R.

Attorney

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Pennsylvania
Shawnee on Delaware

Carney, Daniel J.

CPA

Suspended by decision in
expedited proceeding under
31 C.F.R. § 10.82(b)

Indefinite from
April 2, 2024

Brown, Jr.,
Richard T.

CPA

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Indefinite from
May 8, 2024

Maadani, Pejman

Attorney

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Indefinite from
May 8, 2024

Katy

Hammond III,
Charles E.

Attorney

New Braunfels

Renken, David D.

CPA

Suspended by default decision
in expedited proceeding under
31 C.F.R. § 10.82(b)

Virginia
Ruckersville

Jones, Carol A.

CPA

Suspended by decision in
expedited proceeding under
31 C.F.R. § 10.82(b)

New Jersey
Bridgewater

Tennessee
Brownsville

Texas
Houston

October 7, 2024

760

Reinstated to practice
before the IRS,
effective 04/29/2024
Indefinite from
May 8, 2024

Reinstated to practice
before the IRS,
effective 04/02/2024
Indefinite from
April 2, 2024

Indefinite from
May 15, 2024

Bulletin No. 2024–41

Notice of Proposed
Rulemaking
Section 30C Alternative
Fuel Vehicle Refueling
Property Credit
REG-118269-23
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains
proposed regulations regarding the Federal income tax credit under the Inflation
Reduction Act of 2022 for certain costs
relating to qualified alternative fuel vehicle refueling property that is placed in
service within a low-income community
or within a non-urban census tract. These
proposed regulations would affect eligible
taxpayers who place qualified property
into service during a taxable year.
DATES: Written or electronic comments
and requests for a public hearing must be
received by November 18, 2024.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically via the Federal eRulemaking Portal at https://www.regulations.gov
(indicate IRS and REG-118269-23) by
following the online instructions for submitting comments. Requests for a public
hearing must be submitted as prescribed
in the “Comments and Requests for a
Public Hearing” section. Once submitted to the Federal eRulemaking Portal,
comments cannot be edited or withdrawn.
The Department of the Treasury (Treasury
Department) and the IRS will publish for
public availability any comments submitted to the IRS’s public docket. Send paper
submissions to: CC:PA:01:PR (REG118269-23), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed

Bulletin No. 2024–41

regulations, the contact Kevin I. Babitz or
Whitney E. Brady of Office of Associate
Chief Counsel (Passthroughs & Special
Industries) at (202) 317-6853 (not a tollfree number); concerning submissions of
comments and requests for a public hearing, Publications and Regulations Section
at (202) 317-6901 (not a toll-free number)
or by email to publichearings@irs.gov
(preferred).
SUPPLEMENTARY INFORMATION:
Authority
This document contains proposed
amendments to the Income Tax Regulations (26 CFR part 1) under sections
30C, 48, 48E, 6417, and 6418 of the Internal Revenue Code (Code) issued by the
Secretary of the Treasury or her delegate
(Secretary) under the authority granted
under sections 30C(e)(5), (g)(4), and (h),
45(b)(12), 48(a)(16),

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Aa65f752e92702e97. Public record. Not legal advice.