Bulletin No. 2023–45

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HIGHLIGHTS

OF THIS ISSUE

Bulletin No. 2023–45

November 6, 2023

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE

EMPLOYEE PLANS, EXCISE TAX

T.D. 9982, page 1223.

Notice 2023-70, page 1228.

EMPLOYEE PLANS

EXEMPT ORGANIZATIONS

Notice 2023-72, page 1228.

Announcement 2023-30, page 1236.

These regulations prescribe the user fees for the new enrollment and renewal enrollment of enrolled actuaries. In accordance with the guidelines in OMB Circular A-25, the IRS has

re-calculated its cost of administering the new enrollment

and renewal enrollment processes for enrolled actuaries and

determined the full cost has increased to $680.00 per new

enrollment or renewal enrollment. Therefore, these regulations increase the amount of the user fee for enrolled actuary new enrollment or renewal enrollment from $250.00 to

$680.00.

This notice sets forth updates on the corporate bond

monthly yield curve, the corresponding spot segment

rates for October 2023 used under § 417(e)(3)(D), the

24-month average segment rates applicable for October

2023, and the 30-year Treasury rates, as reflected by the

application of § 430(h)(2)(C)(iv).

Notice 2023-73, page 1232.

This notice specifies a mortality table for use in determining

minimum present value under § 417(e)(3) of the Code and

section 205(g)(3) of ERISA for distributions with annuity starting dates that occur during stability periods beginning in the

2024 calendar year.

Finding Lists begin on page ii.

Sections 4375 and 4376 impose a fee on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered

Outcomes Research Trust Fund (PCORTF). The applicable

dollar amount is based on increases in the projected per capita amount of National Health Expenditures, as most recently

released by HHS. Notice 2023-70 provides that the adjusted

applicable dollar amount that applies for determining the

PCORTF fee for policy years and plan years ending on or after

October 1, 2023, and before October 1, 2024, is $3.22.

Revocation of IRC 501(c)(3) Organizations for failure to meet

the code section requirements. Contributions made to the

organizations by individual donors are no longer deductible

under IRC 170(b)(1)(A).

INCOME TAX

Rev. Rul. 2023-20, page 1221.

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 November 2023.

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.

November 6, 2023

Bulletin No. 2023–45

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. 2023-20

This revenue ruling provides various prescribed rates for federal income

AFR

110% AFR

120% AFR

130% AFR

AFR

110% AFR

120% AFR

130% AFR

150% AFR

175% AFR

AFR

110% AFR

120% AFR

130% AFR

Short-term adjusted AFR

Mid-term adjusted AFR

Long-term adjusted AFR

Bulletin No. 2023–45

tax purposes for November 2023 (the

current month). Table 1 contains the

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

applicable federal rates (AFR) for the

current month for purposes of section

1274(d) of the Internal Revenue Code.

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

for the current month for purposes of

section 1288(b). Table 3 sets forth the

adjusted federal long-term rate and the

long-term tax-exempt rate described

in section 382(f). Table 4 contains the

appropriate percentages for determining the low-income housing credit

described in section 42(b)(1) for buildings placed in service during the current month. However, under section

42(b)(2), the applicable percentage for

non-federally subsidized new buildings

placed in service after July 30, 2008,

shall not be less than 9%. Finally, Table

5 contains the federal rate for determining the present value of an annuity, an

interest for life or for a term of years, or

a remainder or a reversionary interest

for purposes of section 7520.

REV. RUL. 2023-20 TABLE 1

Applicable Federal Rates (AFR) for November 2023

Period for Compounding

Annual

Semiannual

Quarterly

Short-term

5.30%

5.23%

5.20%

5.83%

5.75%

5.71%

6.38%

6.28%

6.23%

6.92%

6.80%

6.74%

Mid-term

4.69%

4.64%

4.61%

5.17%

5.10%

5.07%

5.65%

5.57%

5.53%

6.12%

6.03%

5.99%

7.08%

6.96%

6.90%

8.28%

8.12%

8.04%

Long-term

4.83%

4.77%

4.74%

5.32%

5.25%

5.22%

5.80%

5.72%

5.68%

6.30%

6.20%

6.15%

Annual

4.01%

3.55%

3.65%

REV. RUL. 2023-20 TABLE 2

Adjusted AFR for November 2023

Period for Compounding

Semiannual

3.97%

3.52%

3.62%

1221

Quarterly

3.95%

3.50%

3.60%

Monthly

5.17%

5.68%

6.20%

6.71%

4.60%

5.05%

5.51%

5.96%

6.86%

7.99%

4.72%

5.19%

5.65%

6.12%

Monthly

3.94%

3.49%

3.59%

November 6, 2023

REV. RUL. 2023-20 TABLE 3

Rates Under Section 382 for November 2023

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.)

3.65%

REV. RUL. 2023-20 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for November 2023

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

8.11%

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

3.47%

REV. RUL. 2023-20 TABLE 5

Rate Under Section 7520 for November 2023

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 November 2023. See Rev. Rul. 2023-20,

page 1221.

Section 280G.—Golden

Parachute Payments

The applicable federal short-term, mid-term,

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

November 2023. See Rev. Rul. 2023-20, page 1221.

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 November 2023. See

Rev. Rul. 2023-20, page 1221.

November 6, 2023

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

November 2023. See Rev. Rul. 2023-20, page 1221.

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 November 2023. See Rev.

Rul. 2023-20, page 1221.

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

November 2023. See Rev. Rul. 2023-20, page 1221.

5.60%

Section 483.—Interest on

Certain Deferred Payments

The applicable federal short-term, mid-term,

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

November 2023. See Rev. Rul. 2023-20, page 1221.

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

November 2023. See Rev. Rul. 2023-20, page 1221.

Section 7520.—Valuation

Tables

The applicable federal mid-term rates are set

forth for the month of November 2023. See Rev.

Rul. 2023-20, page 1221.

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

November 2023. See Rev. Rul. 2023-20, page 1221.

1222

Bulletin No. 2023–45

26 CFR 1.509(a)-4: Supporting Organizations

T.D. 9982

DEPARTMENT OF THE

TREASURY

Internal Revenue Service

26 CFR Parts 300

User Fees Relating to

Enrolled Actuaries

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: These final regulations

amend existing regulations relating to

user fees for enrolled actuaries. The final

regulations increase both the enrollment

and renewal of enrollment user fees for

enrolled actuaries from $250 to $680.

These regulations affect individuals who

apply to become an enrolled actuary

or seek to renew their enrollment. The

Independent Offices Appropriation Act of

1952 authorizes charging user fees.

DATES: Effective date: These regulations

are effective on October 20, 2023.

Applicability date: For the applicability

dates, see §§ 300.7(d) and 300.8(d).

FOR FURTHER INFORMATION

CONTACT: Carolyn M. Lee at 202-3176845 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document contains amendments to

26 CFR part 300 - User Fees. On October

5, 2022, a notice of proposed rulemaking

(NPRM) (REG-100719-21) and notice

of public hearing was published in the

Federal Register (87 FR 60357). The

NPRM proposed amending the regulations

relating to the user fees for enrolled actuaries. The document proposed increasing

the amount of the user fee for both the new

enrollment and renewal of enrollment for

enrolled actuaries from $250 to $680 per

Bulletin No. 2023–45

enrollment application or renewal application. The NPRM contained a detailed

explanation of the legal background and

user fee calculations regarding the amendment to these regulations.

Four comments were submitted

in response to the notice of proposed

rulemaking. There were no requests to

speak at the scheduled public hearing.

Consequently, the public hearing was cancelled (87 FR 80109). After consideration

of the written comments, the Department

of the Treasury (Treasury Department)

and the IRS have decided to adopt without

modification the regulations proposed by

the notice of proposed rulemaking.

Summary of Comments

The four comments submitted in

response to the notice of proposed

rulemaking are available at https://www.

regulations.gov or upon request.

1. Comments Not Seeking Modification or

Clarification of the User Fee

Some comments did not address modification or clarification of the user fee.

One comment expressed concern about

the applicability date of the user fees for

enrolled actuaries who apply to renew their

enrollment for the 2023-2025 enrollment

cycle. The proposed regulation amending

26 CFR 300.8, Renewal of enrollment of

enrolled actuary fee, stated the effective

date would be 30 days after the regulation

is published as a final regulation in the

Federal Register. The comment noted that

applications for the enrollment renewal

would be available in early January 2023

to enrolled actuaries seeking to renew

their enrollment for the 2023-2025 enrollment cycle, and renewal of enrollment

applications and fees must be submitted

by March 1, 2023, to be effective beginning April 1, 2023. These final regulations

are being published after the close of the

2023 season for timely renewal of enrollment. Consequently, the $250 renewal of

enrollment user fee in effect on January 1,

2023, was in effect throughout the timely

renewal season that closed March 1, 2023.

Another comment recommended adding a provision to the user fee regulations

to eliminate the in-person continuing

education formal program requirements.

1223

Continuing education requirements for

enrolled actuaries are governed by 20

CFR 901.11. The comment regarding

continuing education requirements for

enrolled actuaries is outside the scope of

these regulations.

In addition, a comment recommended

that the Joint Board for the Enrollment

of Actuaries (Joint Board) consider

approaches to make its cost structure

more efficient, presenting as examples

adopting a longer enrollment cycle, and

making the continuing professional education (CPE) audit process more efficient

for enrolled actuaries and for qualifying

sponsors of enrolled actuary continuing

education. These regulations relate to the

methodology used to determine user fees

for new enrollment and renewal of enrollments. The operation of the Joint Board

is outside the scope of these regulations.

Nonetheless, the IRS continually looks for

program efficiencies, which it takes into

consideration during the enrolled actuary

user fee biennial review.

2. Comments Seeking Modification or

Clarification of the User Fee

The summary of comments below

addresses those comments that make recommendations concerning, or seeking

clarification of, the user fees set forth in

the proposed regulations relating to the

user fees for new enrollments and renewal

of enrollments for enrolled actuaries.

A. Enrolled actuary enrollment processes

must be financially self-sustaining

One comment questioned why the user

fee is calculated based on the number

of enrolled actuary applicants. Enrolled

actuary applicants seeking to be enrolled

as new enrolled actuaries or to renew their

enrolled actuary enrollment are the principal beneficiaries of the services provided

by the Joint Board; that is, the enrolled

actuary new enrollment and renewal

of enrollment processes conducted by

the IRS Return Preparer Office (RPO)

under the oversight of the Joint Board.

An individual who has been granted new

enrollment or renewal of enrollment as

an enrolled actuary by the Joint Board

may perform pension actuarial services

under the Employee Retirement Income

November 6, 2023

Security Act of 1974 (ERISA) Public Law

93-406, Title III, section 3042, Sept. 2,

1974, 88 Stat. 1002, and practice before

the IRS as provided by the rules governing practice before the IRS, published in

31 CFR subtitle A, part 10, and reprinted

as Treasury Department Circular No. 230

(Circular 230). Enrollment confers special

benefits on individuals who are enrolled

actuaries beyond those that accrue to the

general public.

The Independent Offices Appropriation

Act of 1952 (IOAA) (31 U.S.C. 9701)

authorizes each agency to promulgate regulations establishing the charge for services the agency provides (user fees). The

IOAA states that the services provided

by an agency should be self-sustaining

to the extent possible. 31 U.S.C. 9701(a).

The IOAA provides that user fee regulations are subject to policies prescribed by

the President. The policies are currently

set forth in the Office of Management

and Budget (OMB) Circular A-25 (OMB

Circular A-25), 58 FR 38142 (July 15,

1993).

Section 6a(1) of OMB Circular A-25

states that when a service offered by an

agency confers special benefits to identifiable recipients beyond those accruing to the general public, the agency is

to charge a user fee to recover the full

cost of providing the service (unless the

agency requests, and the OMB grants, an

exception to the full-cost requirement).

An agency that seeks to impose a user fee

for government-provided services must

calculate the full cost of providing those

services.

In accordance with OMB Circular

A-25, the RPO completed its 2021 biennial review of the enrollment and renewal

of enrollment user fees associated with

enrolled actuaries. As discussed in the

notice of proposed rulemaking, during

its review, the RPO took into account

increases in labor, benefits, and overhead

costs incurred in connection with providing enrollment services to individuals who

enroll or renew enrollment as enrolled

actuaries since the user fee was promulgated in 2007. The costs include activities related to verifying that an individual

meets the requirements for enrollment

or renewal of enrollment as an enrolled

actuary. The RPO also took into account

a reallocation of certain labor costs in

November 6, 2023

their methodology to include costs associated with certain human resource matters,

formalizing policies and procedures, and

other administrative support. The RPO

followed the generally accepted accounting principles established by the Federal

Accounting Standards Advisory Board.

As required by section 6a(1) of OMB

Circular A-25, the costs allocated to the

enrollment and renewal processes for

enrolled actuaries are borne in full by the

identifiable group of actuaries who apply

for new enrollment and renewal of enrollment services. Accordingly, the number

of enrolled actuary applicants is used by

the RPO to determine the per-applicant

user fee. As described in the proposed

regulations, to arrive at the total cost per

application, the IRS divided the estimated three-year total of enrolled actuary

costs by the total volume of applications

expected over the same three-year period.

Based on the number of applicants, the

full cost of administering the enrollment

and renewal for enrollment processes for

enrolled actuaries increased from $250 to

$680 per enrollment.

B. Justification for the increase in user

fees

Several comments were received

expressing concern about the amount by

which the user fees increased, and sought

clarification for what caused the increase.

One commenter requested an explanation

of the difference in outcomes between

the 2019 biennial review when user fees

were not increased and the 2021 biennial review. Commenters also inquired

about the factors causing the reallocation

of RPO’s human resources, resulting in

RPO’s correction during the 2021 biennial

review of the average time allocated to

enrolled actuary enrollment and renewal

of enrollment processes from 40 percent

to 65 percent. Another commenter, questioning the increase in enrollment user

fees between the 2019 biennial review and

the 2021 biennial review, stated for comparison that the Bureau of Labor Statistics

(BLS) Employment Cost Index (ECI) for

private industry worker wages and salaries showed an increase of no more than

10 percent to 15 percent from the 2020–

2022 enrollment cycle to the 2023–2025

enrollment cycle. The same commenter

1224

observed that many of the intellectual

capital services the Treasury Department

and the IRS provide across the organization are not directly relevant to enrolled

actuaries and the services they provide

to qualified pension plans. In the same

vein, a commenter expressed an incorrect

belief that the enrolled actuary enrollment

user fees include costs not attributable to

the enrolled actuary program for government employees who, among their overall responsibilities not allocated to the

enrolled actuary program, have duties

including working for the Joint Board.

More specifically, a commenter questioned the accuracy of the IRS’s determination that 65 percent of four RPO

employees’ time is dedicated to enrollment activities during the three-year

enrollment cycle, given the unevenness

in enrollments and renewals during each

of the three years. The 2021 biennial

review was based on 214 applications

in 2018, 132 applications in 2019, and

3,584 applications in 2020. According to

this commenter, if the volume of applications is uneven, the percentage of time

IRS employees spend working on enrollment activities would be similarly uneven

and would not average 65 percent over

the three-year enrollment cycle. Another

commenter requested information about

the change in the number of applicants relative to prior years. The commenter posited that if enrollments were decreasing,

enrollment processes costs also should

decrease because there are fewer applications to review. Enrolled actuary total new

and renewal of enrollment applications

have declined. The 2021 biennial review,

based on fiscal years 2018, 2019, and

2020, showed approximately 450 fewer

enrolled actuary applicants compared to

the previous cycles.

These comments generally reflect

an assumption that the enrolled actuary

enrollment fees are solely attributable to

enrollment applications processing. As

explained in the proposed regulations,

the methodology for calculating full

costs associated with new and renewal

of enrollment applications was updated

during the 2021 biennial review. Prior

costing analyses only considered the time

associated with the actual processing of

new and renewal of enrollment applications. However, application processing

Bulletin No. 2023–45

is only one aspect of the cost analysis.

The current increase in user fees was, in

part, the result of the RPO determining

that the methodology previously used to

compute labor allocations was outdated

and did not capture the full costs associated with administering enrolled actuary

enrollment and renewal of enrollment.

Under the previous methodology, the salaries and benefits of RPO staff supporting the new and renewal of enrollment of

enrolled actuaries were computed at 40

percent of four RPO staff members’ salaries and benefits, with associated overhead. To more accurately calculate the

full RPO costs directly associated with

the enrolled actuary enrollment program,

the updated costing analysis accounts for

not only the time and resources involved

in application processing, but also the

additional time and resources spent to

administer the enrolled actuary program.

These activities continue throughout the

three-year enrollment cycle even though

enrollment application volume fluctuates.

The RPO’s responsibilities with respect

to the enrolled actuary program beyond

application processing include conducting yearly tax compliance and continuing

professional education (CPE) audits of

enrolled actuaries, communicating with

inactive enrolled actuaries, implementing regulatory improvements, investigating discipline cases, and supporting the

work of Joint Board Advisory Committee

members.

The 2021 biennial review established

that four RPO employees devoted an

average of 65 percent of their time over

the three-year enrollment cycle to enrolled

actuary enrollment activities. Accordingly,

the correct allocation of RPO’s labor costs

to the enrolled actuary enrollment and

renewal of enrollment processes was 65

percent of the four RPO staff members’

time, which was used to calculate the

user fees in these final regulations. More

specifically, during the 2021 biennial

review, the IRS projected the estimated

costs of direct labor and benefits based on

the actual salary and benefits of the four

employees who devote time to conducting

enrolled actuary enrollment and renewal

of enrollment processes, reduced to reflect

the percentage of time each individual

actually spends on those activities. The

RPO’s managers estimated the percentage

Bulletin No. 2023–45

of time these employees devoted to conducting enrollment activities based on the

managers’ knowledge of program assignments. In addition, the full costs of related

oversight and support costs, plus travel,

training, and supplies, were included in

the 2021 biennial review user fee computations. These costs had not been included

in the user fee computation previously.

Applying the refined methodology and

including full costs in the 2021 biennial

review resulted in the increase of $430

in new and renewal of enrollment user

fees for the three-year enrollment cycle to

$680, or $143.33 per year.

One commenter appeared to not understand that the change in the internal allocation methodology applied only to the RPO

staff who actually provided the enrollment

services. This commenter observed that a

change in the Treasury Department’s and

IRS’s internal allocation methodology

for human resources should not result in

a significant increase in enrolled actuary

user fees because many of the services the

agencies provide are not directly relevant

to enrolled actuaries. Human resource

allocation throughout the Treasury

Department was not used as a cost factor

attributed to the four RPO staff providing

enrollment services. Neither were costs

associated with agency-wide IRS human

resource allocation; instead, those costs

were one of several indirect costs used to

compute the overhead rate included in the

rate calculation methodology as described

in the notice of proposed rulemaking.

C. Impact of user fees on new and

renewal of enrollments

Two comments questioned whether

increasing user fees may discourage

individuals from enrolling as enrolled

actuaries or renewing their enrollment.

These commenters were concerned that

a decline in the number of enrolled actuaries could minimize the competition for

services, which could result in increased

costs passed to the consumers of services

provided by enrolled actuaries. One commenter queried whether there had been

consideration given to phasing in the

increased user fees and implementing a

cap on the user fees. The same commenter

stated that, in circumstances of declining

enrolled actuary enrollment, the remaining

1225

enrolled actuaries might in effect be penalized by substantially increasing user fees.

This commenter observed that requiring

enrolled actuaries to bear the full cost of

enrollment processing may be to the detriment, instead of the benefit, of the enrollment of actuaries.

The Treasury Department and the IRS

recognize the valuable service enrolled

actuaries provide to taxpayers. As discussed in section 2.A of the Summary of

Comments, OMB Circular A-25 states

that when a service offered by a Federal

agency provides special benefits to identifiable recipients beyond those accruing

to the general public, the agency will

establish a user fee to recover the full cost

to the government of providing the service (unless the agency requests, and the

OMB grants, an exception to the full-cost

requirement). Also discussed in section

2.A of the Summary of Comments, the

IRS confers benefits on individuals who

are enrolled actuaries beyond those that

accrue to the general public by allowing

them to perform pension actuarial services under ERISA and to practice before

the IRS. The Treasury Department and the

IRS comply with OMB Circular A-25 by

charging user fees to recover the full cost

of overseeing the enrollment and renewal

of enrollment processes. Based on the

2021 biennial review, the RPO determined that the full cost of administering

the enrolled actuary new and renewal of

enrollment processes increased from $250

to $680 per enrollment application for the

three-year enrollment period. The fee is

an increase of $143.33 per year for the

period. The Treasury Department and the

IRS have not requested an exception from

the OMB because there is no data that

indicates the user fee for new enrollment

or renewal of enrollment is cost prohibitive or that any other condition exists that

justifies an exception.

D. Applicability of OMB Circular A-25

One commenter queried whether there

should be an exemption from the user fee

in certain circumstances, as permitted by

OMB Circular A-25. As an example, the

commenter described a scenario when

enrolled actuary status is required to qualify for employment but the employment

position itself does not involve providing

November 6, 2023

pension actuarial services or representing

a taxpayer before the IRS. According to

the commenter, the enrolled actuary in

this scenario should not be subject to the

user fee because the employer does not

benefit from the performance of the particular services the enrolled actuary status

permits. This is a misunderstanding of the

role “benefit” plays in the OMB Circular

A-25 requirement to charge a user fee.

As explained in the notice of proposed

rulemaking and this preamble, the user fee

is required to recover the full cost of providing the service of new and renewal of

enrollment to an individual who has been

approved by the Joint Board to perform

actuarial services required under ERISA

and to represent clients in certain circumstances before the IRS. This service

confers special benefits to the enrolled

actuary. Any third-party benefit, such as

to an enrolled actuary’s employer or clients, is not a consideration with respect to

the OMB Circular A-25 requirement. The

scenario presented by the commenter does

not justify an exception to the full-cost

recovery requirement.

Special Analyses

I. Regulatory Planning and Review

Pursuant to the Memorandum

of Agreement, Review of Treasury

Regulations under Executive Order 12866

(June 9, 2023), tax regulatory actions

issued by the IRS are not subject to the

requirements of section 6(b) of Executive

Order 12866, as amended. Therefore,

a regulatory impact assessment is not

required.

II. Regulatory Flexibility Act (RFA)

The notice of proposed rulemaking

included an initial regulatory flexibility

analysis (IRFA). No comments pertaining to the analysis were received. Based

on the IRFA, the Treasury Department

and the IRS determined the rule is not

expected to have a significant economic

impact on a substantial number of small

entities and a final regulatory flexibility

analysis is not required. As discussed in

the IRFA, the regulations affect actuaries

who apply for enrollment as an enrolled

actuary or renewal of enrollment with the

November 6, 2023

Joint Board. Only individuals, not businesses, can apply for new enrollment or

to renew enrolled actuary certification.

Therefore, the economic impact of these

regulations, an increase of $143.33 per

year for the three-year enrollment period,

on any small entity generally will be

the result of an individual actuary owning a small business, or a small business

employing an actuary and requiring the

individual to apply for enrolled actuary

status or renew as an enrolled actuary

with the Joint Board. Pursuant to the RFA

(5 U.S.C. chapter 6), it is hereby certified

that these regulations will not have a significant economic impact on a substantial

number of small entities.

Pursuant to section 7805(f) of the

Internal Revenue Code, the notice of proposed rulemaking was submitted to the

Office of Chief Counsel for Advocacy of

the Small Business Administration (SBA)

for comment on its impact on small business. The Chief Counsel for the Office of

Advocacy of the SBA did not provide any

comments.

III. Unfunded Mandates Reform Act

do not have federalism implications and

do not impose substantial direct compliance costs on state and local governments

or preempt state law within the meaning

of the Executive order.

V. Congressional Review Act

Pursuant to the Congressional Review

Act (5 U.S.C. 801 et seq.), the Office of

Information and Regulatory Affairs designated this rule as not a major rule, as

defined by 5 U.S.C 804(2).

Drafting Information

The principal author of these regulations is Carolyn M. Lee, Office of the

Associate Chief Counsel (Procedure and

Administration). Other personnel from

the Treasury Department and the IRS

participated in the development of the

regulations.

List of Subjects in 26 CFR Part 300

Reporting and recordkeeping requirements, User fees.

Section 202 of the Unfunded Mandates

Reform Act of 1995 (UMRA) requires

that agencies assess anticipated costs and

benefits and take certain other actions

before issuing a final rule that includes

any Federal mandate that may result in

expenditures in any one year by a state,

local, or tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for

inflation. This rule does not include any

Federal mandate that may result in expenditures by state, local, or tribal governments, or by the private sector in excess of

that threshold.

Adoption of Amendments to the

Regulations

IV. Executive Order 13132: Federalism

§300.7 Enrollment of enrolled actuary

fee.

Executive Order 13132 (Federalism)

prohibits an agency from publishing

any rule that has federalism implications if the rule either imposes substantial, direct compliance costs on state and

local governments, and is not required

by statute, or preempts state law, unless

the agency meets the consultation and

funding requirements of section 6 of the

Executive order. These final regulations

1226

Accordingly, the Treasury Department

and the IRS amend 26 CFR part 300 as

follows:

PART 300 – USER FEES

Paragraph 1. The authority citation for

part 300 continues to read as follows:

Authority: 31 U.S.C. 9701.

Par. 2. Section 300.7 is amended by

revising paragraphs (b) and (d) to read as

follows:

*****

(b) Fee. The fee for initially enrolling as an enrolled actuary with the Joint

Board for the Enrollment of Actuaries is

$680.00.

*****

(d) Applicability date. This section is

applicable beginning November 20, 2023.

Bulletin No. 2023–45

Par. 3. Section 300.8 is amended by

revising paragraphs (b) and (d) to read as

follows:

§300.8 Renewal of enrollment of

enrolled actuary fee.

*****

(b) Fee. The fee for renewal of enrollment as an enrolled actuary with the Joint

Bulletin No. 2023–45

Board for the Enrollment of Actuaries is

$680.00.

*****

(d) Applicability date. This section is

applicable beginning November 20, 2023.

Douglas W. O’Donnell,

Deputy Commissioner for Services and

Enforcement.

1227

Approved: October 4, 2023.

Lily L. Batchelder,

Assistant Secretary of the Treasury

(Tax Policy).

(Filed by the Office of the Federal Register October

19, 2023, 8:45 a.m., and published in the issue of the

Federal Register for October 20, 2023, 88 FR 72366)

November 6, 2023

Part III

Sections 4375 & 4376 –

Insured and Self-Insured

Health Plans Adjusted

Applicable Dollar Amount

for Fee Imposed by

Sections 4375 and 4376

Notice 2023-70

I. PURPOSE

This notice provides the adjusted applicable dollar amount to be multiplied by

the average number of covered lives for

purposes of calculating the fee imposed

by sections 4375 and 4376 of the Internal

Revenue Code for policy years and plan

years that end on or after October 1, 2023,

and before October 1, 2024.

II. BACKGROUND

Section 4375 imposes a fee on the

issuer of a specified health insurance

policy for each policy year ending after

September 30, 2012, and before October

1, 2029. Section 4376 imposes a fee on the

plan sponsor of an applicable self-insured

health plan for each plan year ending after

September 30, 2012, and before October

1, 2029. The fee imposed by sections

4375 and 4376 helps to fund the PatientCentered Outcomes Research Trust Fund

(PCORTF) and is calculated using the

average number of lives covered under

the policy or plan and the applicable dollar

amount for that policy year or plan year.

Under sections 4375(a) and 4376(a), the

applicable dollar amount is $2 for policy

and plan years ending on or after October

1, 2013, and before October 1, 2014.1

See Treas. Reg. §§ 46.4375-1(c)(4) and

46.4376-1(c)(3).

Under sections 4375(d) and 4376(d)

and §§ 46.4375-1(c)(4) and 46.43761(c)(3), the applicable dollar amount for

policy years and plan years ending in

any Federal fiscal year beginning on or

after October 1, 2014, is increased based

on increases in the projected per capita

amount of National Health Expenditures.

Specifically, the applicable dollar amount

is the sum of—

(i) The applicable dollar amount for the

policy year or plan year ending in the

previous Federal fiscal year; plus

(ii) The amount equal to the product of—

(A) The applicable dollar amount for

the policy year or plan year ending in the previous Federal fiscal

year; and

(B) The percentage increase in the

projected per capita amount of the

National Health Expenditures,

as most recently released by

the Department of Health and

Human Services (HHS) before

the beginning of the Federal fiscal year.

Notice 2022-59, 2022-48 IRB 498,

provides that the adjusted applicable dollar amount for policy years and plan years

that end on or after October 1, 2022, and

before October 1, 2023, is $3.00.

III. ADJUSTED APPLICABLE

DOLLAR AMOUNT

The applicable dollar amount that

must be used to calculate the fee imposed

by sections 4375 and 4376 for policy

years and plan years that end on or after

October 1, 2023, and before October 1,

2024, is $3.22. The increase from the

prior applicable dollar amount is calculated by multiplying $3.00 (which is

the adjusted applicable dollar amount

for policy years and plan years ending in the previous Federal fiscal year)

by the percentage increase of the projected per capita amount of National

Health Expenditures published by HHS

on June 12, 2023. See: https://www.

cms.gov/Research-Statistics-Dataand-Systems/Statistics-Trends-andReports/NationalHealthExpendData/

NationalHealthAccountsProjected.html,

Table 3. The percentage increase is calculated after adjustment to reflect updates

to the data used to calculate the prior

applicable dollar amount, $3.00, which

was based on the per capita amounts of

National Health Expenditures for 2022

and 2023 published by HHS on March

24, 2022.

IV. EFFECTIVE DATE

This notice is effective for policy years

and plan years ending on or after October

1, 2023, and before October 1, 2024.

V. DRAFTING INFORMATION

The principal author of this notice is

Jason Sandoval of the Office of Associate

Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment

Taxes). For further information regarding this notice, contact Mr. Sandoval

at 202–317–5500 (not a toll-free

number).

Update for Weighted

Average Interest Rates,

Yield Curves, and Segment

Rates

Notice 2023-72

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).

The applicable dollar amount is $1 for policy and plan years ending before October 1, 2013.

November 6, 2023

1228

Bulletin No. 2023–45

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

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)

Applicable Month

October 2023

(ii) to use the monthly yield curve in place

of the segment rates.

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

provides guidelines for determining the

monthly corporate bond yield curve, and

the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Consistent

with the methodology specified in Notice

2007-81, the monthly corporate bond

yield curve derived from September 2023

data is in Table 2023-9 at the end of this

notice. The spot first, second, and third

segment rates for the month of September

2023 are, respectively, 5.58, 5.66, and

5.56.

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. 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 2022, 2023 and 2024

were published in Notice 2021-54, 202141 I.R.B. 457, Notice 2022-40, 2022-40

I.R.B. 266, and Notice 2023-66, 2023-40

I.R.B. 992, respectively. The applicable

minimum and maximum percentages are

95% and 105% for plan years beginning

in 2022, 2023 and 2024.

24-MONTH AVERAGE CORPORATE

BOND SEGMENT RATES

The three 24-month average corporate

bond segment rates applicable for October

2023 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

3.82

4.59

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 October

2023, adjusted to be within the applicable

minimum and maximum percentages of

Third Segment

4.63

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

2022

October 2023

4.75

5.18

5.92

2023

October 2023

4.75

5.00

5.74

2024

October 2023

4.75

4.87

5.59

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 September 2023 is 4.47 percent. The

Service determined this rate as the average

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)).

Bulletin No. 2023–45

1229

November 6, 2023

of the daily determinations of yield on the

30-year Treasury bond maturing in August

2053. For plan years beginning in October

2023, 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:

For Plan Years Beginning In

Treasury Weighted Average Rates

30-Year Treasury Weighted Average

Permissible Range 90% to 105%

October 2023

2.92

2.63 to 3.07

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

computed without regard to a 24-month

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

present value segment rates. Pursuant to

that notice, the minimum present value

segment rates determined for September

2023 are as follows:

MINIMUM PRESENT VALUE

SEGMENT RATES

In general, the applicable interest rates

Month

August 2023

Minimum Present Value Segment Rates

First Segment

Second Segment

5.58

5.66

DRAFTING INFORMATION

The principal author of this notice is

Tom Morgan of the Office of Associate

November 6, 2023

Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment

Taxes). However, other personnel from

the IRS participated in the development

1230

Third Segment

5.56

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).

Bulletin No. 2023–45

Table 2023-9

Monthly Yield Curve for September 2023

Derived from September 2023 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

5.85

5.79

5.73

5.67

5.60

5.53

5.47

5.42

5.39

5.38

5.39

5.42

5.45

5.48

5.52

5.56

5.59

5.62

5.65

5.68

5.71

5.73

5.74

5.75

5.76

5.77

5.76

5.75

5.74

5.73

5.72

5.71

5.70

Maturity

20.5

21.0

21.5

22.0

22.5

23.0

23.5

24.0

24.5

25.0

25.5

26.0

26.5

27.0

27.5

28.0

28.5

29.0

29.5

30.0

30.5

31.0

31.5

32.0

32.5

33.0

33.5

34.0

34.5

35.0

35.5

36.0

36.5

37.0

37.5

38.0

38.5

39.0

39.5

40.0

Bulletin No. 2023–45

Yield

5.70

5.69

5.68

5.67

5.66

5.65

5.64

5.63

5.62

5.61

5.60

5.59

5.58

5.57

5.56

5.55

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

5.55

5.54

5.53

5.52

5.51

5.50

1231

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

5.50

5.49

5.48

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

5.48

5.47

November 6, 2023

Mortality Table for Use

in Determining Minimum

Present Value for 2024

Notice 2023-73

PURPOSE

This notice specifies a mortality table

for use in determining minimum present

value under § 417(e)(3) of the Code and

section 205(g)(3) of ERISA for distributions with annuity starting dates that occur

during stability periods beginning in the

2024 calendar year.

BACKGROUND

Section 412 of the Code provides minimum funding requirements that generally

apply for defined benefit plans. Section

412(a)(2) provides that § 430 sets forth the

minimum funding requirements that apply

to defined benefit plans that are not multiemployer plans or CSEC plans.

Section 430(h)(3) provides rules

regarding the mortality tables that generally are used under § 430. Under § 430(h)

(3)(A), except as provided in § 430(h)(3)

by regulation mortality tables to be used

in determining any present value or making any computation under § 430. Those

tables are to be based on the actual experience of pension plans and projected trends

in that experience. Section 430(h)(3)(B)

requires the Secretary to revise any table

November 6, 2023

in effect under § 430(h)(3)(A) at least

every 10 years to reflect the actual experience of pension plans and projected trends

in that experience.

In TD 9983 (88 FR 72357), the

Department of the Treasury and Internal

Revenue Service issued § 1.430(h)(3)-1,

which provides updated mortality tables,

mortality improvement rates, and static

mortality tables for defined benefit pension plans, applicable for valuation dates

occurring on or after January 1, 2024.

Section 1.430(h)(3)-1(a) provides that the

mortality tables to be used in determining

present value under section 430 are the

generational mortality tables described

in § 1.430(h)(3)-1(b) and the static mortality tables for small plans described in

§ 1.430(h)(3)-1(c). The static mortality

tables for small plans for valuation dates

occurring in 2024, which consist of separate mortality rates that apply for each

gender, are set forth in § 1.430(h)(3)-1(e).

Section 417(e)(3) generally provides

that the present value of certain accelerated forms of benefit under a qualified

pension plan (including single-sum distributions) must not be less than the present

value of the accrued benefit using applicable interest rates and the applicable mortality table. Section 417(e)(3)(B) defines

the term “applicable mortality table” as

the mortality table specified for the plan

year under § 430(h)(3)(A) (without regard

to § 430(h)(3)(C) or (D)), modified as

appropriate by the Secretary.

Rev. Rul. 2007-67, 2007-2 CB 1047,

provides that, except as otherwise stated in

future guidance, the applicable mortality

1232

table under § 417(e)(3) is a static mortality table set forth in published guidance

that is developed based on a fixed blend

of 50 percent of the static male combined

mortality rates and 50 percent of the static

female combined mortality rates used

under § 1.430(h)(3)-1. Rev. Rul. 2007-67

also provides that the applicable mortality

table for a calendar year applies to distributions with annuity starting dates that

occur during stability periods that begin

during that calendar year.

STATIC MORTALITY TABLE

APPLICABLE UNDER § 417(e)(3)

FOR 2024

The static mortality table that applies

under § 417(e)(3) for distributions with

annuity starting dates occurring during

stability periods beginning in 2024 is set

forth in the appendix to this notice. The

mortality rates in this table are derived

from the mortality tables specified

under § 430(h)(3)(A) for 2024 in accordance with the procedures set forth in

Rev. Rul. 2007-67.

Drafting Information

The principal authors of this notice are

Arslan Malik and Linda S. F. Marshall

of the Office of the Associate Chief

Counsel (Employee Benefits, Exempt

Organizations, and Employment Taxes).

For further information regarding this

notice, contact Arslan Malik or Linda

Marshall at (202) 317-6700 (not a toll-free

number).

Bulletin No. 2023–45

APPENDIX

Mortality Table for Distributions Subject to § 417(e)(3) with Annuity Starting Dates

during Stability Periods That Begin in 2024

2024 Table

for

Distributions

Subject to

§ 417(e)(3)

0.00331

0.00024

0.00015

0.00011

0.00010

0.00008

0.00007

0.00006

0.00005

0.00006

0.00007

0.00009

0.00011

0.00013

0.00015

0.00018

0.00020

0.00022

0.00023

0.00024

0.00026

0.00027

0.00028

0.00030

0.00032

0.00034

0.00035

0.00037

0.00040

0.00042

0.00044

0.00047

Age

Bulletin No. 2023–45

1233

November 6, 2023

0.00049

0.00051

0.00054

0.00056

0.00057

0.00059

0.00061

0.00063

0.00066

0.00070

0.00074

0.00079

0.00084

0.00092

0.00102

0.00114

0.00127

0.00144

0.00172

0.00212

0.00246

0.00285

0.00328

0.00379

0.00433

0.00512

0.00591

0.00656

0.00740

0.00832

0.00920

0.01017

0.01126

0.01251

0.01396

0.01559

0.01745

0.01959

0.02204

0.02485

0.02805

0.03169

0.03583

0.04079

0.04583

1234

Bulletin No. 2023–45

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

Bulletin No. 2023–45

0.05150

0.05787

0.06508

0.07327

0.08259

0.09310

0.10497

0.11814

0.13262

0.14773

0.16329

0.17927

0.19542

0.21170

0.22904

0.24682

0.26513

0.28401

0.30325

0.32271

0.34211

0.36140

0.38043

0.39884

0.41675

0.43400

0.45044

0.46615

0.47865

0.48673

0.49436

0.49788

0.49885

0.49978

0.49990

0.49998

0.50000

1.00000

1235

November 6, 2023

Part IV

Deletions From Cumulative

List of Organizations,

Contributions to Which are

Deductible Under Section

170 of the Code

Announcement 2023-30

The Internal Revenue Service has

revoked its determination that the organizations listed below qualify as organizations described in sections 501(c)(3) and

170(c)(2) of the Internal Revenue Code of

1986.

PROJECT SECOND CHANCE

November 6, 2023

Generally, the IRS will not disallow

deductions for contributions made to a

listed organization on or before the date

of announcement in the Internal Revenue

Bulletin that an organization no longer

qualifies. However, the IRS is not precluded from disallowing a deduction for

any contributions made after an organization ceases to qualify under section 170(c)

(2) if the organization has not timely filed

a suit for declaratory judgment under section 7428 and if the contributor (1) had

knowledge of the revocation of the ruling

or determination letter, (2) was aware that

such revocation was imminent, or (3) was

in part responsible for or was aware of the

activities or omissions of the organization

that brought about this revocation.

Effective Date of

Revocation

01/01/2016

1236

If on the other hand a suit for declaratory judgment has been timely filed,

contributions from individuals and organizations described in section 170(c)(2)

that are otherwise allowable will continue

to be deductible. Protection under section

7428(c) would begin on 11/16/2023 and

would end on the date the court first determines the organization is not described

in section 170(c)(2) as more particularly

set for in section 7428(c)(1). For individual contributors, the maximum deduction

protected is $1,000, with a husband and

wife treated as one contributor. This benefit is not extended to any individual, in

whole or in part, for the acts or omissions

of the organization that were the basis for

revocation.

LOCATION

SIOUX FALLS, SD

Bulletin No. 2023–45

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

effect:

Amplified describes a situation where

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

being extended to apply to a variation of

the fact situation set forth therein. Thus, if

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

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

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

caused, or may cause, some confusion. It

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

Distinguished describes a situation

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

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

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

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

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

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

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

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

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

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

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

Suspended is used in rare situations

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

future action such as the issuance of new

or amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

The following abbreviations in current

use and formerly used will appear in

material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2023–45

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

November 6, 2023

Numerical Finding List1

Bulletin 2023–45

Announcements:

2023-18, 2023-30 I.R.B. 366

2023-19, 2023-30 I.R.B. 367

2023-20, 2023-30 I.R.B. 368

2023-17, 2023-31 I.R.B. 412

2023-21, 2023-31 I.R.B. 413

2023-22, 2023-32 I.R.B. 429

2023-23, 2023-34 I.R.B. 569

2023-24, 2023-35 I.R.B. 661

2023-25, 2023-37 I.R.B. 821

2023-26, 2023-37 I.R.B. 822

2023-28, 2023-37 I.R.B. 823

2023-29, 2023-41 I.R.B. 1064

2023-30, 2023-45 I.R.B. 1236

Notices:

2023-29, 2023-29 I.R.B. 1

2023-45, 2023-29 I.R.B. 317

2023-47, 2023-29 I.R.B. 318

2023-37, 2023-30 I.R.B. 359

2023-50, 2023-30 I.R.B. 361

2023-51, 2023-30 I.R.B. 362

2023-54, 2023-31 I.R.B. 382

2023-53, 2023-32 I.R.B. 424

2023-55, 2023-32 I.R.B. 427

2023-57, 2023-34 I.R.B. 560

2023-58, 2023-34 I.R.B. 563

2023-59, 2023-34 I.R.B. 564

2023-52, 2023-35 I.R.B. 650

2023-61, 2023-35 I.R.B. 651

2023-62, 2023-37 I.R.B. 817

2023-56, 2023-38 I.R.B. 824

2023-63, 2023-39 I.R.B. 919

2023-64, 2023-40 I.R.B. 974

2023-66, 2023-40 I.R.B. 992

2023-68, 2023-41 I.R.B. 1060

2023-65, 2023-42 I.R.B. 1067

2023-67, 2023-42 I.R.B. 1074

2023-69, 2023-42 I.R.B. 1079

2023-71, 2023-44 I.R.B. 1191

2023-70, 2023-45 I.R.B. 1228

2023-72, 2023-45 I.R.B. 1228

2023-73, 2023-45 I.R.B. 1232

Proposed Regulations:—Continued

REG-100908-23, 2023-39 I.R.B. 931

REG-115559-23, 2023-42 I.R.B. 1082

REG-106203-23, 2023-43 I.R.B. 1143

REG-113064-23, 2023-43 I.R.B. 1144

REG-117614-14, 2023-44 I.R.B. 1193

REG-127391-16, 2023-44 I.R.B. 1214

Revenue Procedures:

2023-31, 2023-25 I.R.B. 386

2023-26, 2023-33 I.R.B. 486

2023-27, 2023-35 I.R.B. 655

2023-17, 2023-37 I.R.B. 819

2023-30, 2023-40 I.R.B. 995

2023-31, 2023-40 I.R.B. 1057

2023-32, 2023-41 I.R.B. 1064

2023-35, 2023-42 I.R.B. 1079

2023-28, 2023-43 I.R.B. 1092

2023-33, 2023-43 I.R.B. 1135

Revenue Rulings:

2023-13, 2023-32 I.R.B. 413

2023-14, 2023-33 I.R.B. 484

2023-15, 2023-34 I.R.B. 559

2023-16, 2023-37 I.R.B. 796

2023-17, 2023-37 I.R.B. 798

2023-18, 2023-40 I.R.B. 972

2023-19, 2023-41 I.R.B. 1059

2023-20, 2023-45 I.R.B. 1221

Treasury Decisions:

9976, 2023-30 I.R.B. 354

9977, 2023-31 I.R.B. 375

9978, 2023-32 I.R.B. 415

9979, 2023-35 I.R.B. 602

9980, 2023-43 I.R.B. 1087

9981, 2023-44 I.R.B. 1174

9982, 2023-45 I.R.B. 1223

Proposed Regulations:

REG-124123-22, 2023-30 I.R.B. 369

REG-124930-21, 2023-31 I.R.B. 431

REG-120730-21, 2023-33 I.R.B. 491

REG-134420-10, 2023-34 I.R.B. 571

REG-109348-22, 2023-35 I.R.B. 662

REG-120727-21, 2023-36 I.R.B. 670

REG-122793-19, 2023-38 I.R.B. 829

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2023–27 through 2023–52 is in Internal Revenue Bulletin

2023–52, dated December 27, 2023.

November 6, 2023

Bulletin No. 2023–45

Finding List of Current Actions on

Previously Published Items1

Bulletin 2023–45

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2023–27 through 2023–52 is in Internal Revenue Bulletin

2023–52, dated December 27, 2023.

Bulletin No. 2023–45

iii

November 6, 2023

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

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