Bulletin No. 2010-7 February 16, 2010 HIGHLIGHTS OF THIS ISSUE › pub › irs-irbs ›...

Bulletin No. 2010-7February 16, 2010

HIGHLIGHTSOF THIS ISSUEThese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.

GIFT TAX

Notice 2010–19, page 404.This notice applies to taxpayers making gifts in trust during2010. Under section 2511(c) of the Code, a transfer of prop-erty to a non-wholly owned grantor trust is a transfer by giftof the entire interest in the property. To determine whether atransfer to a wholly owned grantor trust constitutes a gift, thegift tax provisions in effect prior to 2010 apply.

ADMINISTRATIVE

Rev. Proc. 2010–15, page 404.This procedure updates Rev. Proc. 2008–14, 2008–1 C.B.435, and identifies circumstances under which the disclosureon a taxpayer’s income tax return with respect to an item or aposition is adequate for purposes of reducing the understate-ment of income tax under section 6662(d) of the Code (relatingto the substantial understatement aspect of the accuracy-re-lated penalty), and for the purpose of avoiding the tax returnpreparer penalty under section 6694(a) (relating to understate-ments due to unreasonable positions) with respect to incometax returns.

Announcement 2010–8, page 408.This document contains a correction to final regulations(T.D. 9443, 2009–8 I.R.B. 564) relating to postponement ofcertain tax-related deadlines either due to service in a combatzone or due to a federally declared disaster. The regulationsreflect changes in the law made by the Victims of Terrorism TaxRelief Act of 2001, the Tax Extenders and Alternative MinimumTax Relief Act of 2008 (TEAMTRA), and current IRS practice.

Announcement 2010–9, page 408.This announcement explains the potential content of a schedulethat will require certain business taxpayers to report uncertaintax positions on their tax returns and invites public commentson the Internal Revenue Service’s approach.

Announcement 2010–10, page 410.This document contains a correction to (Announcement2010–4, 2010–5 I.R.B. 384) regarding Deletions From Cu-mulative List of Organizations Contributions to Which areDeductible Under Section 170 of the Code.

Announcements of Disbarments and Suspensions begin on page 410.Finding Lists begin on page ii.

The IRS MissionProvide America’s taxpayers top quality service by helping themunderstand and meet their tax responsibilities and by applying

the tax law with integrity and fairness to all.

IntroductionThe Internal Revenue Bulletin is the authoritative instrument ofthe Commissioner of Internal Revenue for announcing officialrulings and procedures of the Internal Revenue Service and forpublishing Treasury Decisions, Executive Orders, Tax Conven-tions, legislation, court decisions, and other items of generalinterest. It is published weekly and may be obtained from theSuperintendent of Documents on a subscription basis. Bulletincontents are compiled semiannually into Cumulative Bulletins,which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all sub-stantive rulings necessary to promote a uniform application ofthe tax laws, including all rulings that supersede, revoke, mod-ify, or amend any of those previously published in the Bulletin.All published rulings apply retroactively unless otherwise indi-cated. Procedures relating solely to matters of internal man-agement are not published; however, statements of internalpractices and procedures that affect the rights and duties oftaxpayers are published.

Revenue rulings represent the conclusions of the Service on theapplication of the law to the pivotal facts stated in the revenueruling. In those based on positions taken in rulings to taxpayersor technical advice to Service field offices, identifying detailsand information of a confidential nature are deleted to preventunwarranted invasions of privacy and to comply with statutoryrequirements.

Rulings and procedures reported in the Bulletin do not have theforce and effect of Treasury Department Regulations, but theymay be used as precedents. Unpublished rulings will not berelied on, used, or cited as precedents by Service personnel inthe disposition of other cases. In applying published rulings andprocedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,and Service personnel and others concerned are cautionedagainst reaching the same conclusions in other cases unlessthe 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 ofthe 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, Leg-islation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references to thesesubjects are contained in the other Parts and Subparts. Alsoincluded in this part are Bank Secrecy Act Administrative Rul-ings. Bank Secrecy Act Administrative Rulings are issued bythe Department of the Treasury’s Office of the Assistant Secre-tary (Enforcement).

Part IV.—Items of General Interest.This part includes notices of proposed rulemakings, disbar-ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative indexfor the matters published during the preceding months. Thesemonthly indexes are cumulated on a semiannual basis, and arepublished 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.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

February 16, 2010 2010–7 I.R.B.

Part III. Administrative, Procedural, and MiscellaneousGuidance for Persons MakingTransfers in Trust AfterDecember 31, 2009

Notice 2010–19

PURPOSE AND BACKGROUND

This notice alerts taxpayers that theInternal Revenue Service (IRS) intendsto issue guidance under section 2511(c)of the Internal Revenue Code. Congressenacted this section in section 511(e) ofthe Economic Growth and Tax Relief Rec-onciliation Act of 2001 (EGTRRA) andamended it in section 411(g)(1) of theJob Creation and Worker Assistance Actof 2002. Public Laws 107–16, 115 Stat.71, and 107–147, 116 Stat. 46. Section2511(c) is effective for transfers madeafter December 31, 2009, and before Jan-uary 1, 2011.

Section 2511(a) generally provides thatthe gift tax shall apply to transfers in trustor otherwise, whether direct or indirect.Under § 25.2511–2(b) of the Gift Tax Reg-ulations, a gift is complete when the donorparts with sufficient dominion and controlas to leave in the donor no power to changeits disposition. Section 2511(c) providesthat, notwithstanding any other provisionof section 2511 and except as providedin regulations, a transfer in trust shall betreated as a transfer of property by giftunless the trust is treated as wholly ownedby the donor or the donor’s spouse undersubpart E of part I of subchapter J of chap-ter 1. The Joint Committee on Taxation’sexplanation of section 2511(c) providesthat certain transfers in trust are treated astransfers of property by gift even thoughsuch transfers would have been regardedas incomplete gifts, or would not havebeen treated as transfers under the gift taxprovisions in effect prior to 2010. JointCommittee on Taxation, Technical Expla-nation of the “Job Creation and WorkerAssistance Act of 2002” (JCX–12–02),March 6, 2002.

INTERIM PROVISIONS

Some taxpayers may have inaccuratelyinterpreted section 2511(c) as excludingfrom the gift tax transfers to a trust treatedas wholly owned by the donor or thedonor’s spouse under subpart E of part Iof subchapter J of chapter 1, even thoughthose transfers would otherwise be tax-able under Chapter 12. The provisions ofChapter 12 regarding the substantive lawapplicable to the gift tax were not amendedby EGTRRA, and those provisions con-tinue to apply to all transfers made bydonors during 2010. Section 2511(c) is anaddition to those substantive law provi-sions and is applicable to transfers made in2010. Section 2511(c) broadens the typesof transfers subject to the transfer tax un-der Chapter 12 to include certain transfersto trusts that, before 2010, would havebeen considered incomplete and, thus, notsubject to the gift tax. Accordingly, eachtransfer made in 2010 to a trust that is nottreated as wholly owned by the donor orthe donor’s spouse under subpart E of partI of subchapter J of chapter 1 is consideredto be a transfer by gift of the entire interestin the property under section 2511(c). Theprovisions of Chapter 12 as in effect onDecember 31, 2009, continue to apply(both before and during 2010) to all trans-fers made to any other trust to determinewhether the transfer is subject to gift tax.

EFFECTIVE DATE

This notice is applicable to transfersmade in trust after December 31, 2009.The Treasury Department and the IRS in-tend to issue regulations to confirm theconclusions set forth in this notice.

DRAFTING INFORMATION

The principal author of this noticeis Laura Urich Daly of the Office ofAssociate Chief Counsel (Passthroughs& Special Industries). For furtherinformation regarding this notice, contactLaura Urich Daly at (202) 622–3090 (nota toll-free call).

26 CFR 601.105: Examination of returns and claimsfor refund, credit or abatement; determination of cor-rect tax liability.(Also: Part 1, §§ 6662, 6694, 1.6662–4, 1.6694–2.)

Rev. Proc. 2010–15

SECTION 1. PURPOSE

This revenue procedure updates Rev.Proc. 2008–14, 2008–1 C.B. 435, andidentifies circumstances under which thedisclosure on a taxpayer’s income tax re-turn with respect to an item or a positionis adequate for the purpose of reducingthe understatement of income tax undersection 6662(d) of the Internal RevenueCode (relating to the substantial under-statement aspect of the accuracy-relatedpenalty), and for the purpose of avoidingthe tax return preparer penalty under sec-tion 6694(a) (relating to understatementsdue to unreasonable positions) with re-spect to income tax returns. This rev-enue procedure does not apply with re-spect to any other penalty provisions (in-cluding the disregard provisions of the sec-tion 6662(b)(1) accuracy-related penalty,which are subject to an exception for ad-equate disclosure). Also, under this rev-enue procedure, no disclosure on a returnother than an income tax return will be ad-equate with respect to a tax return preparerpenalty under section 6694(a).

This revenue procedure applies toany income tax return filed on 2009tax forms for a taxable year beginningin 2009, and to any income tax returnfiled on 2009 tax forms in 2010 for shorttaxable years beginning in 2010.

SECTION 2. CHANGES FROM REV.PROC. 2008–14

.01. This revenue procedure has beenupdated to reflect changes made to sec-tion 6694(a) by the Tax Extenders andAlternative Minimum Tax Relief Act,Pub. L. 110–343, section 506, 122 Stat.3765 (2008). This update also describes anew schedule required of taxpayers filingSchedule M–3 (Form 1120) or ScheduleM–3 (Form 1065).

2010–7 I.R.B. 404 February 16, 2010

SECTION 3. BACKGROUND

.01 If section 6662 applies to any por-tion of an underpayment of tax requiredto be shown on a return, an amount equalto 20 percent of the portion of the under-payment to which the section applies isadded to the tax (the penalty rate is 40 per-cent in the case of gross valuation mis-statements under section 6662(h)). Sec-tion 6662(b)(2) applies to the portion ofan underpayment of tax that is attributableto a substantial understatement of incometax.

.02 Section 6662(d)(1) provides thatthere is a substantial understatement ofincome tax if the amount of the understate-ment exceeds the greater of 10 percent ofthe amount of tax required to be shown onthe return for the taxable year or $5,000.Section 6662(d)(1)(B) provides specialrules for corporations. A corporation(other than an S corporation or personalholding company) has a substantial under-statement of income tax if the amount ofthe understatement exceeds the lesser of10 percent of the tax required to be shownon the return for a taxable year (or, ifgreater, $10,000) or $10,000,000. Section6662(d)(2) defines an understatement asthe excess of the amount of tax required tobe shown on the return for the taxable yearover the amount of the tax that is shown onthe return reduced by any rebate (withinthe meaning of section 6211(b)(2)).

.03 In the case of an item not at-tributable to a tax shelter, section6662(d)(2)(B)(ii) provides that the amountof the understatement is reduced by theportion of the understatement attributableto any item with respect to which therelevant facts affecting the item’s tax treat-ment are adequately disclosed in the returnor in a statement attached to the return,and there is a reasonable basis for the taxtreatment of the item by the taxpayer.

.04 Section 6694(a) imposes a penaltyon a tax return preparer who prepares a re-turn or claim for refund reflecting an un-derstatement of liability due to an “unrea-sonable position” if the tax return preparerknew (or reasonably should have known)of the position. A position (other than aposition with respect to a tax shelter ora reportable transaction to which section6662A applies) is generally treated as un-reasonable unless (i) there is or was sub-stantial authority for the position, or (ii)

the position was properly disclosed in ac-cordance with section 6662(d)(2)(B)(ii)(I)and had a reasonable basis. If the positionis with respect to a tax shelter (as defined insection 6662(d)(2)(C)(ii)) or a reportabletransaction to which section 6662A ap-plies, the position is treated as unreason-able unless it is reasonable to believe thatthe position would more likely than notbe sustained on the merits. See Notice2009–5, 2009–3 I.R.B. 309 (January 21,2009) for interim penalty compliance rulesfor tax shelter transactions.

.05 In general, this revenue proce-dure provides guidance for determiningwhen disclosure is adequate for purposesof section 6662(d)(2)(B)(ii) and section6694(a)(2)(B). For purposes of this rev-enue procedure, the taxpayer must furnishall required information in accordancewith the applicable forms and instructions,and the money amounts entered on theseforms must be verifiable.

.06 Fiscal and short tax year returns. (a)In general. This revenue procedure mayapply to a return for a fiscal tax year thatbegins in 2009 and ends in 2010. This rev-enue procedure may also apply to a shortyear return for a period beginning in 2010if the return is to be filed before the 2010forms are available. (Note that individu-als are generally not put in this positionas a decedent’s final return for a fractionalpart of a year is due the fifteenth day ofthe fourth month following the close ofthe 12-month period which began with thefirst day of such fractional part of the year.See Treas. Reg. § 1.6072–1(b).) In thecase of fiscal year and short year returns,the taxpayer must take into account any taxlaw changes that are effective for tax yearsbeginning after December 31, 2009, eventhough these changes are not reflected onthe form.

(b) Tax law changes effective after De-cember 31, 2009. This document doesnot take into account the effect of tax lawchanges effective for tax years beginningafter December 31, 2009. If a line ref-erenced in this revenue procedure is af-fected by such a change and requires ad-ditional reporting, a taxpayer may haveto file Form 8275, Disclosure Statement,or Form 8275–R, Regulation DisclosureStatement until the Service prescribes cri-teria for complying with the requirement.

SECTION 4. PROCEDURE

.01 General.(1) Additional disclosure of facts rel-

evant to, or positions taken with respectto, issues involving any of the items setforth below is unnecessary for purposesof reducing any understatement of incometax under section 6662(d) (except as other-wise provided in section 4.02(3) concern-ing Schedules M–1 and M–3), providedthat the forms and attachments are com-pleted in a clear manner and in accordancewith their instructions.

(2) The money amounts entered on theforms must be verifiable, and the informa-tion on the return must be disclosed in themanner described below. For purposes ofthis revenue procedure, a number is veri-fiable if, on audit, the taxpayer can provethe origin of the amount (even if that num-ber is not ultimately accepted by the Inter-nal Revenue Service) and the taxpayer canshow good faith in entering that number onthe applicable form.

(3) The disclosure of an amount as pro-vided in section 4.02 below is not ade-quate when the understatement arises froma transaction between related parties. If anentry may present a legal issue or contro-versy because of a related-party transac-tion, then that transaction and the relation-ship must be disclosed on a Form 8275,Disclosure Statement, or Form 8275–R,Regulation Disclosure Statement.

(4) When the amount of an item isshown on a line that does not have apreprinted description identifying thatitem (such as on an unnamed line underan “Other Expense” category) the tax-payer must clearly identify the item byincluding the description on that line.For example, to disclose a bad debt for asole proprietorship, the words “bad debt”must be written or typed on the line ofSchedule C that shows the amount of thebad debt. Also, for Schedule M–3 (Form1120), Part II, line 25, Other income(loss) items with differences, or Part III,line 35, Other expense/deduction itemswith differences, the entry must providedescriptive language; for example, “Costof non-compete agreement deductiblenot capitalizable.” If space limitationson a form do not allow for an adequatedescription, the description must becontinued on an attachment.

February 16, 2010 405 2010–7 I.R.B.

(5) Although a taxpayer may literallymeet the disclosure requirements of thisrevenue procedure, the disclosure willhave no effect for purposes of the sec-tion 6662 accuracy-related penalty if theitem or position on the return: (1) Doesnot have a reasonable basis as definedin Treas. Reg. § 1.6662–3(b)(3); (2) Isattributable to a tax shelter item as definedin section 6662(d)(2); or (3) Is not prop-erly substantiated or the taxpayer failedto keep adequate books and records withrespect to the item or position.

(6) Disclosure also will have no effectfor purposes of the section 6694(a) penaltyas applicable to tax return preparers if theposition is with respect to a tax shelter(as defined in section 6662(d)(2)(C)(ii)) ora reportable transaction to which section6662A applies.

.02 Items.(1) Form 1040, Schedule A, Itemized

Deductions:(a) Medical and Dental Expenses:

Complete lines 1 through 4, supplying allrequired information.

(b) Taxes: Complete lines 5 through 9,supplying all required information. Line 8must list each type of tax and the amountpaid.

(c) Interest Expenses: Complete lines10 through 15, supplying all required in-formation. This section 4.02(1)(c) doesnot apply to (i) amounts disallowed undersection 163(d) unless Form 4952, Invest-ment Interest Expense Deduction, is com-pleted, or (ii) amounts disallowed undersection 265.

(d) Contributions: Complete lines 16through 19, supplying all required infor-mation. Enter the amount of the contribu-tion reduced by the value of any substan-tial benefit (goods or services) provided bythe donee organization in consideration, inwhole or in part. Entering the value ofthe contribution unreduced by the valueof the benefit received will not constituteadequate disclosure. If a contribution of$250 or more is made, this section willnot apply unless a contemporaneous writ-ten acknowledgment, as required by sec-tion 170(f)(8), is obtained from the doneeorganization. If a contribution of cash ofless than $250 is made, this section willnot apply unless a bank record or writ-ten communication from the donee, as re-quired by section 170(f)(17), is obtainedfrom the donee organization. If a contri-

bution of property other than cash is madeand the amount claimed as a deduction ex-ceeds $500, attach a properly completedForm 8283, Noncash Charitable Contri-butions, to the return. In addition to theForm 8283, if a contribution of a quali-fied motor vehicle, boat, or airplane has avalue of more than $500, this section willnot apply unless a contemporaneous writ-ten acknowledgment, as required by sec-tion 170(f)(12), is obtained from the doneeorganization and attached to the return. Anacknowledgment under section 170(f)(8)is not required if an acknowledgment un-der section 170(f)(12) is required.

(e) Casualty and Theft Losses: Com-plete Form 4684, Casualties and Thefts,and attach to the return. Each item or ar-ticle for which a casualty or theft loss isclaimed must be listed on Form 4684.

(2) Certain Trade or Business Expenses(including, for purposes of this section, thefollowing six expenses as they relate to therental of property):

(a) Casualty and Theft Losses: The pro-cedure outlined in section 4.02(1)(e) mustbe followed.

(b) Legal Expenses: The amountclaimed must be stated. This section doesnot apply, however, to amounts prop-erly characterized as capital expenditures,personal expenses, or non-deductible lob-bying or political expenditures, includingamounts that are required to be (or thatare) amortized over a period of years.

(c) Specific Bad Debt Charge-off: Theamount written off must be stated.

(d) Reasonableness of Officers’ Com-pensation: Form 1120, Schedule E, Com-pensation of Officers, must be completedwhen required by its instructions. The timedevoted to business must be expressed asa percentage as opposed to “part” or “asneeded.” This section does not apply to“golden parachute” payments, as definedunder section 280G. This section will notapply to the extent that remuneration paidor incurred exceeds the $1 million-em-ployee-remuneration limitation, if applica-ble.

(e) Repair Expenses: The amountclaimed must be stated. This section doesnot apply, however, to any repair expensesproperly characterized as capital expendi-tures or personal expenses.

(f) Taxes (other than foreign taxes): Theamount claimed must be stated.

(3) Differences in book and income taxreporting.

For Schedule M–1 and all SchedulesM–3, including those listed in (a)-(f) be-low, the information provided must rea-sonably apprise the Service of the poten-tial controversy concerning the tax treat-ment of the item. If the information pro-vided does not so apprise the Service, aForm 8275 or Form 8275–R must be usedto adequately disclose the item (see Part IIof the instructions for those forms).

Note: An item reported on a line witha pre-printed description, shown onan attached schedule or “itemized” onSchedule M–1, may represent the ag-gregate amount of several transactionsproducing that item (i.e., a group ofsimilar items, such as amounts paid orincurred for supplies by a taxpayer en-gaged in business). In some instances,a potentially controversial item may in-volve a portion of the aggregate amountdisclosed on the schedule. The Servicewill not be reasonably apprised of apotential controversy by the aggregateamount disclosed. In these instances,the taxpayer must use Form 8275 orForm 8275–R regarding that portion ofthe item.Combining unlike items, whether on

Schedule M–1 or Schedule M–3 (or on anattachment when directed by the instruc-tions), will not constitute an adequate dis-closure.

Additionally, for taxpayers that filethe Schedule M–3 (Form 1120), the newSchedule B, Additional Information forSchedule M–3 Filers, must also be com-pleted. For taxpayers that file the ScheduleM–3 (Form 1065), the new Schedule C,Additional Information for Schedule M–3Filers, must also be completed. When re-quired, these new Schedules are necessaryto constitute adequate disclosure.

(a) Form 1065. Schedule M–3 (Form1065), Net Income (Loss) Reconciliationfor Certain Partnerships: Column (a),Income (Loss) per Income Statement, ofPart II (reconciliation of income (loss)items) and Column (a), Expense per In-come Statement, of Part III (reconciliationof expense/deduction items); Column (b),Temporary Difference, and Column (c),Permanent Difference, of Part II (recon-ciliation of income (loss) items) and PartIII (reconciliation of expense/deductionitems); and Column (d), Income (Loss)

2010–7 I.R.B. 406 February 16, 2010

per Tax Return, of Part II (reconciliationof income (loss) items) and Column (d),Deduction per Tax Return, of Part III (rec-onciliation of expense/deduction items).

(b) Form 1120. (i) Schedule M–1, Rec-onciliation of Income (Loss) per BooksWith Income per Return.

(ii) Schedule M–3 (Form 1120), NetIncome (Loss) Reconciliation for Corpo-rations with Total Assets of $10 Millionor More: Column (a), Income (Loss) perIncome Statement, of Part II (reconcilia-tion of income (loss) items) and Column(a), Expense per Income Statement, ofPart III (reconciliation of expense/de-duction items); Column (b), TemporaryDifference, and Column (c), PermanentDifference, of Part II (reconciliation ofincome (loss) items) and Part III (recon-ciliation of expense/deduction items) andColumn (d), Income (Loss) per Tax Re-turn, of Part II (reconciliation of income(loss) items); and Column (d), Deductionper Tax Return, of Part III (reconciliationof expense/deduction items).

(c) Form 1120–L. Schedule M–3 (Form1120–L), Net Income (Loss) Reconcilia-tion for U.S. Life Insurance CompaniesWith Total Assets of $10 Million or More:Column (a), Income (Loss) per IncomeStatement, of Part II (reconciliation ofincome (loss) items) and Column (a),Expense per Income Statement, of PartIII (reconciliation of expense/deductionitems); Column (b), Temporary Differ-ence, and Column (c), Permanent Differ-ence, of Part II (reconciliation of income(loss) items) and Part III (reconciliationof expense/deduction items); and Col-umn (d), Income (Loss) per Tax Return,of Part II (reconciliation of income (loss)items) and Column (d), Deduction perTax Return, of Part III (reconciliation ofexpense/deduction items).

(d) Form 1120–PC. Schedule M–3(Form 1120–PC), Net Income (Loss) Rec-onciliation for U.S. Property and CasualtyInsurance Companies With Total Assetsof $10 Million or More: Column (a), In-come (Loss) per Income Statement, of

Part II (reconciliation of income (loss)items) and Column (a), Expense per In-come Statement, of Part III (reconciliationof expense/deduction items); Column (b),Temporary Difference, and Column (c),Permanent Difference, of Part II (recon-ciliation of income (loss) items) and PartIII (reconciliation of expense/deductionitems); and Column (d), Income (Loss)per Tax Return, of Part II (reconciliationof income (loss) items) and Column (d),Deduction per Tax Return, of Part III (rec-onciliation of expense/deduction items).

(e) Form 1120S. Schedule M–3 (Form1120S), Net Income (Loss) Reconciliationfor S Corporations With Total Assets of$10 Million or More: Column (a), Income(Loss) per Income Statement, of Part II(reconciliation of income (loss) items)and Column (a), Expense per IncomeStatement, of Part III (reconciliation ofexpense/deduction items); Column (b),Temporary Difference, and Column (c),Permanent Difference, of Part II (recon-ciliation of income (loss) items) and PartIII (reconciliation of expense/deductionitems); and Column (d), Income (Loss)per Tax Return, of Part II (reconciliationof income (loss) items) and Column (d),Deduction per Tax Return, of Part III (rec-onciliation of expense/deduction items).

(f) Form 1120–F. Schedule M–3 (Form1120–F), Net Income (Loss) Reconcilia-tion for Foreign Corporations With Re-portable Assets of $10 Million or More:Column (b), Temporary Difference, Col-umn (c), Permanent Difference, and Col-umn (d), Other Permanent Differences forAllocations to Non-ECI and ECI, of Part II(reconciliation of income (loss) items) andPart III (reconciliation of expense/deduc-tion items).

(4) Foreign Tax Items:(a) International Boycott Transactions:

Transactions disclosed on Form 5713,International Boycott Report; ScheduleA, International Boycott Factor (Sec-tion 999(c)(1)); Schedule B, SpecificallyAttributable Taxes and Income (Section999(c)(2)); and Schedule C, Tax Effect

of the International Boycott Provisions,must be completed when required by theirinstructions.

(b) Treaty-Based Return Position:Transactions and amounts under section6114 or section 7701(b) as disclosed onForm 8833, Treaty-Based Return Posi-tion Disclosure Under Section 6114 or7701(b), must be completed when requiredby its instructions.

(5) Other:(a) Moving Expenses: Complete Form

3903, Moving Expenses, and attach to thereturn.

(b) Employee Business Expenses:Complete Form 2106, Employee BusinessExpenses, or Form 2106–EZ, Unreim-bursed Employee Business Expenses, andattach to the return. This section does notapply to club dues, or to travel expensesfor any non-employee accompanying thetaxpayer on the trip.

(c) Fuels Credit: Complete Form 4136,Credit for Federal Tax Paid on Fuels, andattach to the return.

(d) Investment Credit: Complete Form3468, Investment Credit, and attach to thereturn.

SECTION 5. EFFECTIVE DATE

This revenue procedure applies to anyincome tax return filed on a 2009 tax formfor a taxable year beginning in 2009, andto any income tax return filed on a 2009tax form in 2010 for a short taxable yearbeginning in 2010.

SECTION 6. DRAFTINGINFORMATION

The principal author of this revenueprocedure is Ryan M. Wyzik of the Officeof Associate Chief Counsel (Procedure &Administration). For further informationregarding this revenue procedure, contactBranch 2 of Procedure and Administrationat (202) 622–4940 (not a toll-free call).

February 16, 2010 407 2010–7 I.R.B.

Part IV. Items of General InterestPostponement of CertainTax-Related Deadlines byReason of a FederallyDeclared Disaster orTerroristic or Military Action;Correction

Announcement 2010–8

AGENCY: Internal Revenue Service(IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains acorrection to final regulations (T.D. 9443,2009–8 I.R.B. 564) that were published inthe Federal Register on Thursday, Jan-uary 15, 2009 (74 FR 2370) relating topostponement of certain tax-related dead-lines either due to service in a combatzone or due to a federally declared dis-aster. The regulations reflect changes inthe law made by the Victims of TerrorismTax Relief Act of 2001, the Tax Extendersand Alternative Minimum Tax Relief Actof 2008 (TEAMTRA), and current IRSpractice.

DATES: This correction is effective on De-cember 17, 2009, and is applicable on Jan-uary 15, 2009.

FOR FURTHER INFORMATIONCONTACT: Mary Ellen Keys, (202)622–4570 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations (T.D. 9443) thatare the subject of this document are un-der section 7508A of the Internal RevenueCode.

Need for Correction

As published, the final regulations(T.D. 9443) contain an error that mayprove to be misleading and is in need ofclarification.

Correction of Publication

Accordingly, the publication of the finalregulations (T.D. 9443), which were thesubject of FR Doc. E9–767, is correctedas follows:

On page 2370, column 3, in the pre-amble, under the paragraph heading “Ex-planation of Revisions”, last paragraph ofthe column, third through twelfth lines,the language “Example 9. Example 9,which reflects current IRS practice, ex-plains the impact of disaster relief oninstallment agreement payments that be-come due during the postponement period.Example 9 explains that the affected tax-payer’s obligation to make installmentagreement payments is suspended duringthe postponement period. Example 9 fur-ther explains that,” is corrected to read“Example 8. Example 8, which reflectscurrent IRS practice, explains the impactof disaster relief on installment agreementpayments that become due during the post-ponement period. Example 8 explains thatthe affected taxpayer’s obligation to makeinstallment agreement payments is sus-pended during the postponement period.Example 8 further explains that,”.

LaNita Van Dyke,Chief, Publications and

Regulations Branch,Legal Processing Division,

Associate Chief Counsel(Procedure and Administration).

(Filed by the Office of the Federal Register on December 16,2009, 8:45 a.m., and published in the issue of the FederalRegister for December 17, 2009, 74 F.R. 66915)

Uncertain Tax Positions —Policy of Restraint


The Internal Revenue Service is con-sidering changes to reporting requirementsregarding certain business taxpayers’ un-certain tax positions in order to improvetax compliance and administration. TheService is developing a schedule requir-ing certain business taxpayers to report un-certain tax positions on their tax returns.

This Announcement discusses the poten-tial content of such a schedule and invitespublic comment on the Service’s proposedapproach. The schedule will require theannual disclosure of uncertain tax posi-tions in the form of a concise description ofthose positions and information about theirmagnitude. The proposal does not requirethe taxpayer to disclose the taxpayer’s riskassessment or tax reserve amounts, eventhough the Service can compel the pro-duction of this information through a sum-mons. United States v. Arthur Young, 465U.S. 805, 815 (1984). While the Serviceintends to require the reporting of uncer-tain tax positions, the Service is propos-ing to otherwise retain its existing pol-icy of restraint as described in Announce-ment 2002–63, 2002–2 C.B. 72, and IRM4.10.20.

BACKGROUND

Uncertain Tax Positions

The United States federal income taxsystem relies on taxpayers to make a self-assessment of tax and to file the appropri-ate form of return that shows the facts uponwhich tax liability may be determined andassessed. Section 601.103 of the Proce-dure and Administration Regulations. Todischarge its obligation to fairly and uni-formly administer the tax laws, the Servicemust be able to identify quickly and ef-ficiently significant issues (including un-certain tax positions) underlying the taxreturn. Existing business tax returns donot currently require that taxpayers iden-tify and explain uncertain tax positions un-derlying their returns.

Many taxpayers are required by FASBInterpretation No. 48, Accounting for Un-certainty in Income Taxes, an Interpreta-tion of FASB Statement No. 109 (FIN 48)1

to identify and quantify uncertain tax po-sitions taken in the return for financial ac-counting purposes. That is, taxpayers mustidentify and quantify for financial account-ing purposes a tax position relating to aspecific federal tax return for which a tax-payer is required to reserve an amount un-der FIN 48. A taxpayer’s tax reserves andreporting regarding its uncertain tax posi-

1 Under the codification of accounting standards, the relevant portions of FIN 48 are now contained in Accounting Standards Codification subtopic 740–10, Income Taxes. FASB ASC 740–10.

2010–7 I.R.B. 408 February 16, 2010

tions may be reflected in its own booksand records or financial statements, or inthe books and records or financial state-ments of a related domestic or foreign en-tity. Taxpayers not subject to FIN 48 maybe subject to other requirements regardingaccounting for uncertain tax positions. Forexample, taxpayers may be subject to othergenerally accepted accounting standards,including International Financial Report-ing Standards (IFRS) and country-specificgenerally accepted accounting standards.

The information developed in thecourse of complying with FIN 48 or otheraccounting standards is highly relevant tounderstanding the taxpayer’s tax positionsand assessing how those positions affectthe taxpayer’s tax liability. United Statesv. Arthur Young, 465 U.S. at 815. Thatinformation also would aid the Servicein focusing its examination resources onreturns that contain specific uncertain taxpositions that are of particular interest orof sufficient magnitude to warrant Serviceinquiry, as well as allowing examinationteams to identify all of the issues under-lying the tax returns more quickly andefficiently.

Schedule

The Service is developing a schedulethat will require certain filers to provideinformation about their uncertain tax po-sitions that affect their United States fed-eral income tax liability. This schedulewill be filed with the Form 1120, U.S.Corporation Income Tax Return, or otherbusiness tax returns. The schedule willrequire (i) a concise description of eachuncertain tax position for which the tax-payer or a related entity has recorded areserve in its financial statements and (ii)the maximum amount of potential federaltax liability attributable to each uncertaintax position (determined without regard tothe taxpayer’s risk analysis regarding itslikelihood of prevailing on the merits).

In addition to those positions for whicha tax reserve must be established underFIN 48 or other accounting standards, un-certain tax positions will include any po-sition related to the determination of anyUnited States federal income tax liabilityfor which a taxpayer or a related entity hasnot recorded a tax reserve because (i) thetaxpayer expects to litigate the position, or(ii) the taxpayer has determined that the

Service has a general administrative prac-tice not to examine the position. For thispurpose, a related entity is any entity thatis related to the taxpayer under sections267(b), 318(a), or 707(b).

The schedule will require a concise de-scription of each uncertain tax position insufficient detail so that the Service can de-termine the nature of the issue. The suffi-ciency of a description will depend on thetaxpayer’s particular facts and the natureof the underlying transaction. As currentlycontemplated, this concise description willinclude the rationale for the position anda concise general statement of the reasonsfor determining that the position is an un-certain tax position. To be sufficient, thedescription must contain:

1. The Code sections potentially impli-cated by the position;

2. A description of the taxable year oryears to which the position relates;

3. A statement that the position in-volves an item of income, gain, loss, de-duction, or credit against tax;

4. A statement that the position in-volves a permanent inclusion or exclusionof any item, the timing of that item, orboth;

5. A statement whether the positioninvolves a determination of the value ofany property or right; and

6. A statement whether the positioninvolves a computation of basis.

In addition, the schedule will require ataxpayer to specify for each uncertain taxposition the entire amount of United Statesfederal income tax that would be due ifthe position were disallowed in its entiretyon audit. This amount is the maximumtax adjustment for the position reflectingall changes to items of income, gain, loss,deduction, or credit if the position is notsustained.

The Service anticipates publishing a no-tice of proposed rulemaking to providethat certain businesses required to make areturn (including corporations required tomake a return under section 6012) will berequired to file a form or schedule relat-ing to the disclosure of uncertain tax po-sitions as part of its return in accordancewith the forms, instructions, or other ap-propriate guidance provided by the Ser-vice.

The Service is also evaluating addi-tional options for penalties or sanctionsto be imposed when a taxpayer fails to

make adequate disclosure of the requiredinformation regarding its uncertain taxpositions. One option being consideredis to seek legislation imposing a penaltyfor failure to file the schedule or to makeadequate disclosure.

Continuation of Policy of Restraint

Except as described in this Announce-ment, the Service intends to retain the ex-isting policy of restraint for requesting taxaccrual workpapers during the course ofexaminations described in IRM 4.10.20.The Service will continue to review thepolicy and to consider additional modifica-tions, however, as appropriate or necessaryto ensure it obtains complete and accurateinformation regarding a taxpayer’s uncer-tain tax positions on a timely basis.

SCOPE

The Service intends the new scheduleto be filed by a business taxpayer with to-tal assets in excess of $10 million if thetaxpayer has one or more uncertain tax po-sitions of the type required to be reportedon the new schedule. This includes a tax-payer who prepares financial statements,or is included in the financial statementsof a related entity that prepares financialstatements, if that taxpayer or related en-tity determines its United States federal in-come tax reserves under FIN 48, or otheraccounting standards relating to uncertaintax positions involving United States fed-eral income tax.

REQUEST FOR COMMENTS

Given the importance of these issues toboth the Service and taxpayers, the Ser-vice intends to publish the new scheduleas quickly as possible and therefore invitesthe public to submit comments on the pro-posal described in this Announcement byMarch 29, 2010. The Service intends tomandate that the new schedule for uncer-tain tax positions be filed with returns filedafter release of the schedule. The Serviceis particularly interested in comments re-garding:

1. How the maximum tax adjustmentshould be reflected on the schedule so thatit provides the Service with an objectiveand quantifiable measure of each reportedtax position (e.g., specific dollar amount orby appropriate dollar ranges);

February 16, 2010 409 2010–7 I.R.B.

2. What alternative methods of disclo-sure of the amount at issue would allow theService to identify the relative importanceof the uncertain tax positions;

3. Whether the calculation of the maxi-mum tax adjustment should relate solely tothe tax period for which the return is filedor to all tax periods to which the positionrelates, and whether net operating lossesor excess credits should be taken into ac-count in determining the maximum tax ad-justment;

4. How the related entity rules shouldbe applied;

5. Whether the scope of the Announce-ment should be modified regarding the un-certain tax positions for which informationis required to be reported (e.g., positionsfor which no tax reserve has been estab-lished because the taxpayer determined theService has a general administrative prac-tice not to examine the position);

6. Whether transition rules should beused or criteria modified to either includeor exclude certain businesses taxpayers(e.g., the proposed threshold of $10 mil-lion total assets);

7. How the new schedule should ad-dress taxpayers that initially did not recorda reserve for an issue, but in later years dorecord a reserve; and

8. Whether the list of information pro-posed to be included should be modified,including whether certain informationshould be requested in some circumstancesupon examination rather than with taxreturn.

Comments should be submitted to: In-ternal Revenue Service, CC:PA:LPD:PR(Announcement 2010–9), Room 5203,P.O. Box 7604, Ben Franklin Station,N.W., Washington, D.C. 20044. Alter-natively, comments may be hand deliv-ered between the hours of 8:00 a.m. and4:00 p.m., Monday through Friday, toCC:PA:LPD:PR (Announcement 2010–9),Courier’s Desk, Internal RevenueService, 1111 Constitution Avenue,N.W., Washington, D.C. Commentsmay also be transmitted electronicallyvia the following e-mail address:[email protected] include “Announcement 2010–9”in the subject line of any electroniccommunications. All comments willbe available for public inspection andcopying.

DRAFTING INFORMATION

The principal author of this Announce-ment is Kathryn Zuba of the Office ofAssociate Chief Counsel (Procedure and

Administration). For further informa-tion regarding this announcement, contactthe Office the Associate Chief Counsel(Procedure and Administration) at (202)622–3400 (not a toll-free call).

Deletions From CumulativeList of OrganizationsContributions to Whichare Deductible Under Section170 of the Code; Correction


This document contains a correctionto Announcement 2010–4, 2010–5 I.R.B.384, regarding Deletions From Cumula-tive List of Organizations Contributions toWhich are Deductible Under Section 170of the Code.

Accordingly, the publication of this an-nouncement is corrected as follows:

On page 384, the text should read Coin-mach Disaster Relief Fund Trust of Plain-view, NY.

Announcement of Disciplinary Sanctions From the Officeof Professional ResponsibilityAnnouncement 2010-12

The Office of Professional Responsi-bility (OPR) announces recent disciplinarysanctions involving attorneys, certifiedpublic accountants, enrolled agents, en-rolled actuaries, enrolled retirement planagents, and appraisers. These individualsare subject to the regulations governingpractice before the Internal Revenue Ser-vice (IRS), which are set out in Title 31,Code of Federal Regulations, Part 10, andwhich are published in pamphlet form asTreasury Department Circular No. 230.The regulations prescribe the duties andrestrictions relating to such practice andprescribe the disciplinary sanctions forviolating the regulations.

The disciplinary sanctions to be im-posed for violation of the regulations are:

Disbarred from practice before theIRS—An individual who is disbarred isnot eligible to represent taxpayers beforethe IRS.

Suspended from practice before theIRS—An individual who is suspended isnot eligible to represent taxpayers beforethe IRS during the term of the suspension.

Censured in practice before theIRS—Censure is a public reprimand. Un-like disbarment or suspension, censuredoes not affect an individual’s eligibilityto represent taxpayers before the IRS, butOPR may subject the individual’s futurerepresentations to conditions designed topromote high standards of conduct.

Monetary penalty—A monetarypenalty may be imposed on an individualwho engages in conduct subject to sanc-

tion or on an employer, firm, or entityif the individual was acting on its behalfand if it knew, or reasonably should haveknown, of the individual’s conduct.

Disqualification of appraiser—Anappraiser who is disqualified is barredfrom presenting evidence or testimony inany administrative proceeding before theDepartment of the Treasury or the IRS.

Under the regulations, attorneys, cer-tified public accountants, enrolled agents,enrolled actuaries, and enrolled retirementplan agents may not assist, or accept assis-tance from, individuals who are suspendedor disbarred with respect to matters consti-tuting practice (i.e., representation) beforethe IRS, and they may not aid or abet sus-pended or disbarred individuals to practicebefore the IRS.

2010–7 I.R.B. 410 February 16, 2010

Disciplinary sanctions are described inthese terms:

Disbarred by decision after hearing,Suspended by decision after hearing,Censured by decision after hearing,Monetary penalty imposed after hear-ing, and Disqualified after hearing—Anadministrative law judge (ALJ) conductedan evidentiary hearing upon OPR’s com-plaint alleging violation of the regulationsand issued a decision imposing one ofthese sanctions. After 30 days from theissuance of the decision, in the absence ofan appeal, the ALJ’s decision became thefinal agency decision.

Disbarred by default decision, Sus-pended by default decision, Censured bydefault decision, Monetary penalty im-posed by default decision, and Disqual-ified by default decision—An ALJ, afterfinding that no answer to OPR’s complainthad been filed, granted OPR’s motion for adefault judgment and issued a decision im-posing one of these sanctions.

Disbarment by decision on appeal,Suspended by decision on appeal, Cen-sured by decision on appeal, Monetarypenalty imposed by decision on ap-peal, and Disqualified by decision onappeal—The decision of the ALJ wasappealed to the agency appeal authority,acting as the delegate of the Secretary

of the Treasury, and the appeal authorityissued a decision imposing one of thesesanctions.

Disbarred by consent, Suspended byconsent, Censured by consent, Mone-tary penalty imposed by consent, andDisqualified by consent—In lieu of adisciplinary proceeding being institutedor continued, an individual offered a con-sent to one of these sanctions and OPRaccepted the offer. Typically, an offerof consent will provide for: suspensionfor an indefinite term; conditions that theindividual must observe during the sus-pension; and the individual’s opportunity,after a stated number of months, to filewith OPR a petition for reinstatement af-firming compliance with the terms of theconsent and affirming current eligibilityto practice (i.e., an active professionallicense or active enrollment status). Anenrolled agent or an enrolled retirementplan agent may also offer to resign in orderto avoid a disciplinary proceeding.

Suspended by decision in expeditedproceeding, Suspended by default de-cision in expedited proceeding, Sus-pended by consent in expedited pro-ceeding—OPR instituted an expeditedproceeding for suspension (based on cer-tain limited grounds, including loss of a

professional license and criminal convic-tions).

OPR has authority to disclose thegrounds for disciplinary sanctions in thesesituations: (1) an ALJ or the Secretary’sdelegate on appeal has issued a decisionon or after September 26, 2007, which wasthe effective date of amendments to theregulations that permit making such deci-sions publicly available; (2) the individualhas settled a disciplinary case by signingOPR’s “consent to sanction” form, whichrequires consenting individuals to admit toone or more violations of the regulationsand to consent to the disclosure of the in-dividual’s own return information relatedto the admitted violations (for example,failure to file Federal income tax returns);or (3) OPR has issued a decision in anexpedited proceeding for suspension.

Announcements of disciplinary sanc-tions appear in the Internal Revenue Bul-letin at the earliest practicable date. Thesanctions announced below are alphabet-ized first by the names of states and sec-ond by the last names of individuals. Un-less otherwise indicated, section numbers(e.g., § 10.51) refer to the regulations.

City & State Name Professional Disciplinary Sanction Effective Date(s)Designation

Arizona

Scottsdale Wise, Danny CPA Suspended by defaultdecision in expeditedproceeding under § 10.82(revocation of CPAlicense in California)

Indefinite fromDecember 14, 2009

California

W. Hollywood Kitt, Eli A. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(suspension of attorneylicense)

Indefinite fromJanuary 27, 2010

Wise, Danny,See Arizona

February 16, 2010 411 2010–7 I.R.B.


Colorado

Colorado Springs Marple, Jon R. CPA Suspended by decisionin expedited proceedingunder § 10.82 (suspensionof CPA license inWashington State)


Connecticut

West Simsbury Carpenter, Daniel E. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(suspension of attorneylicense)


Georgia

Atlanta Anderson, Wade G. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


Illinois

Deerfield Greisman, Robert S. Attorney Suspended by decisionin expedited proceedingunder § 10.82 (attorneydisbarment)


Kansas

Shawnee Ruther, Scott L. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(suspension of attorneylicense)


Louisiana

Baton Rouge Holliday, Stephen J. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(suspension of attorneylicense)


Maryland

Rockville Cinquegrani, Peter J. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


Bel Air Holmes, Stephen J. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


2010–7 I.R.B. 412 February 16, 2010


Maryland (Continued)

Cockeysville Cvach, Paul R. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(suspension of attorneylicense)


Brooklandville West, Brian G. Attorney Suspended by decisionin expedited proceedingunder § 10.82 (attorneydisbarment)


Massachusetts

Waltham Conner, William E. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment inNew Hampshire)


Michigan

Portage Campbell, John A. Attorney Suspended by defaultdecision in expeditedproceeding under§ 10.82 (convictionunder 18 U.S.C. § 371,conspiracy to defraud theUnited States)


Missouri

Cape Girardeau Buerkle, Joe T. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


Wynne, George,See New York

New Hampshire

Conner, William E.,See Massachusetts

New Jersey

Montvale Hover, Philip B. Attorney Suspended by decisionin expedited proceedingunder § 10.82 (attorneydisbarment)


February 16, 2010 413 2010–7 I.R.B.


New York

Rochester Camarata, Mark S. CPA Suspended by defaultdecision in expeditedproceeding under§ 10.82 (convictionunder 18 U.S.C. § 1951,conspiracy with respectto a public officialobtaining property fromanother under the colorof official right; and18 U.S.C. § 1957, moneylaundering)


Ridge Kelly, William R. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(suspension of attorneylicense)


North White Plains Pilotti, Dennis M. CPA Suspended by defaultdecision in expeditedproceeding under § 10.82(conviction under26 U.S.C. § 7201, taxevasion; and 18 U.S.C.§ 1014 & 2, makingfalse statements on a loanapplication)


New York Wynne, George Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment inMissouri)


North Carolina

Greensboro Stakias, Gregory A. CPA Suspended by defaultdecision in expeditedproceeding under § 10.82(revocation of CPAlicense)


Oklahoma

Tulsa Clausing, W. K. Attorney Suspended by decisionin expedited proceedingunder § 10.82 (suspensionof attorney license)


2010–7 I.R.B. 414 February 16, 2010


Oregon

Gresham Sunderland, Brian J. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(suspension of attorneylicense)


South Carolina

Mt. Pleasant Robertson, Marvin L. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


Texas

El Paso Dominguez, Joe A. CPA Suspended by decisionin expedited proceedingunder § 10.82 (revocationof CPA license)


Virginia

Bristow Walker, Andrew J. CPA Suspended by defaultdecision in expeditedproceeding under § 10.82(revocation of CPAlicense)


Washington

Tacoma Benton, Charles F. CPA Suspended by defaultdecision in expeditedproceeding under § 10.82(revocation of CPAlicense)


Olympia Burtch, Jack L. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


Bellevue Hamley, Allen C. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


Marple, Jon,See Colorado

Edmond Poole, Jeffrey G. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


February 16, 2010 415 2010–7 I.R.B.


Washington (Continued)

Seattle Sughrua, Thomas P. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


Des Moines Zoro, Gregory S. Attorney Suspended by defaultdecision in expeditedproceeding under § 10.82(attorney disbarment)


2010–7 I.R.B. 416 February 16, 2010

Definition of TermsRevenue rulings and revenue procedures(hereinafter referred to as “rulings”) thathave an effect on previous rulings use thefollowing defined terms to describe the ef-fect:

Amplified describes a situation whereno change is being made in a prior pub-lished position, but the prior position is be-ing extended to apply to a variation of thefact situation set forth therein. Thus, ifan earlier ruling held that a principle ap-plied to A, and the new ruling holds that thesame principle also applies to B, the earlierruling is amplified. (Compare with modi-fied, below).

Clarified is used in those instanceswhere the language in a prior ruling is be-ing made clear because the language hascaused, or may cause, some confusion.It is not used where a position in a priorruling is being changed.

Distinguished describes a situationwhere a ruling mentions a previously pub-lished ruling and points out an essentialdifference between them.

Modified is used where the substanceof a previously published position is beingchanged. Thus, if a prior ruling held that aprinciple applied to A but not to B, and thenew ruling holds that it applies to both A

and B, the prior ruling is modified becauseit corrects a published position. (Comparewith amplified and clarified, above).

Obsoleted describes a previously pub-lished ruling that is not considered deter-minative with respect to future transac-tions. This term is most commonly used ina ruling that lists previously published rul-ings that are obsoleted because of changesin laws or regulations. A ruling may alsobe obsoleted because the substance hasbeen included in regulations subsequentlyadopted.

Revoked describes situations where theposition in the previously published rulingis not correct and the correct position isbeing stated in a new ruling.

Superseded describes a situation wherethe new ruling does nothing more than re-state the substance and situation of a previ-ously published ruling (or rulings). Thus,the term is used to republish under the1986 Code and regulations the same po-sition published under the 1939 Code andregulations. The term is also used whenit is desired to republish in a single rul-ing a series of situations, names, etc., thatwere previously published over a period oftime in separate rulings. If the new rul-ing does more than restate the substance

of a prior ruling, a combination of termsis used. For example, modified and su-perseded describes a situation where thesubstance of a previously published rulingis being changed in part and is continuedwithout change in part and it is desired torestate the valid portion of the previouslypublished ruling in a new ruling that is selfcontained. In this case, the previously pub-lished ruling is first modified and then, asmodified, is superseded.

Supplemented is used in situations inwhich a list, such as a list of the names ofcountries, is published in a ruling and thatlist is expanded by adding further names insubsequent rulings. After the original rul-ing has been supplemented several times, anew ruling may be published that includesthe list in the original ruling and the ad-ditions, and supersedes all prior rulings inthe series.

Suspended is used in rare situations toshow that the previous published rulingswill not be applied pending some futureaction such as the issuance of new oramended regulations, the outcome of casesin litigation, or the outcome of a Servicestudy.

AbbreviationsThe following abbreviations in current useand formerly used will appear in materialpublished 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.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.

February 16, 2010 i 2010–7 I.R.B.

Numerical Finding List1

Bulletins 2010–1 through 2010–7

Announcements:

2010-1, 2010-4 I.R.B. 333

2010-2, 2010-2 I.R.B. 271

2010-3, 2010-4 I.R.B. 333

2010-4, 2010-5 I.R.B. 384

2010-5, 2010-6 I.R.B. 402

2010-6, 2010-6 I.R.B. 402

2010-7, 2010-6 I.R.B. 403

2010-8, 2010-7 I.R.B. 408

2010-9, 2010-7 I.R.B. 408

2010-10, 2010-7 I.R.B. 410

2010-12, 2010-7 I.R.B. 410

Notices:

2010-1, 2010-2 I.R.B. 251

2010-2, 2010-2 I.R.B. 251

2010-3, 2010-2 I.R.B. 253

2010-4, 2010-2 I.R.B. 253

2010-5, 2010-2 I.R.B. 256

2010-6, 2010-3 I.R.B. 275

2010-7, 2010-3 I.R.B. 296

2010-8, 2010-3 I.R.B. 297

2010-9, 2010-3 I.R.B. 298

2010-10, 2010-3 I.R.B. 299

2010-11, 2010-4 I.R.B. 326

2010-12, 2010-4 I.R.B. 326

2010-13, 2010-4 I.R.B. 327

2010-14, 2010-5 I.R.B. 344

2010-15, 2010-6 I.R.B. 390

2010-16, 2010-6 I.R.B. 396

2010-19, 2010-7 I.R.B. 404

Proposed Regulations:

REG-132232-08, 2010-6 I.R.B. 401

REG-137036-08, 2010-6 I.R.B. 398

REG-101896-09, 2010-5 I.R.B. 347

REG-131028-09, 2010-4 I.R.B. 332

Revenue Procedures:

2010-1, 2010-1 I.R.B. 1

2010-2, 2010-1 I.R.B. 90

2010-3, 2010-1 I.R.B. 110

2010-4, 2010-1 I.R.B. 122

2010-5, 2010-1 I.R.B. 165

2010-6, 2010-1 I.R.B. 193

2010-7, 2010-1 I.R.B. 231

2010-8, 2010-1 I.R.B. 234

2010-9, 2010-2 I.R.B. 258

2010-10, 2010-3 I.R.B. 300

2010-11, 2010-2 I.R.B. 269

2010-12, 2010-3 I.R.B. 302

2010-13, 2010-4 I.R.B. 329

Revenue Procedures— Continued:

2010-15, 2010-7 I.R.B. 404

Revenue Rulings:

2010-1, 2010-2 I.R.B. 248

2010-2, 2010-3 I.R.B. 272

2010-3, 2010-3 I.R.B. 272

2010-4, 2010-4 I.R.B. 309

2010-5, 2010-4 I.R.B. 312

2010-6, 2010-6 I.R.B. 387

Treasury Decisions:

9474, 2010-4 I.R.B. 322

9475, 2010-4 I.R.B. 304

9476, 2010-5 I.R.B. 336

9477, 2010-6 I.R.B. 385

9478, 2010-4 I.R.B. 315

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin2009–52, dated December 28, 2009.

2010–7 I.R.B. ii February 16, 2010

Finding List of Current Actions onPreviously Published Items1

Bulletins 2010–1 through 2010–7

Announcements:

2010-4

Corrected by

Ann. 2010-10, 2010-7 I.R.B. 410

Notices:

2005-88

Superseded by

Notice 2010-13, 2010-4 I.R.B. 327

2008-41

Modified by

Notice 2010-7, 2010-3 I.R.B. 296

2008-55

Modified by

Notice 2010-3, 2010-2 I.R.B. 253

2008-88

Modified by

Notice 2010-7, 2010-3 I.R.B. 296

2008-113

Modified by

Notice 2010-6, 2010-3 I.R.B. 275

2008-115

Modified by

Notice 2010-6, 2010-3 I.R.B. 275

2009-11

Amplified by

Notice 2010-9, 2010-3 I.R.B. 298

2009-13

Obsoleted by

T.D. 9478, 2010-4 I.R.B. 315REG-131028-09, 2010-4 I.R.B. 332

2009-38

Amplified and superseded by

Notice 2010-2, 2010-2 I.R.B. 251

Proposed Regulations:

REG-127270-06

Hearing scheduled by

Ann. 2010-6, 2010-6 I.R.B. 402

Revenue Procedures:

80-59

Modified and superseded by

Rev. Proc. 2010-11, 2010-2 I.R.B. 269

87-35

Obsoleted by

Rev. Proc. 2010-3, 2010-1 I.R.B. 110

Revenue Procedures— Continued:

2008-14

Updated by

Rev. Proc. 2010-15, 2010-7 I.R.B. 404

2009-1

Superseded by

Rev. Proc. 2010-1, 2010-1 I.R.B. 1

2009-2

Superseded by

Rev. Proc. 2010-2, 2010-1 I.R.B. 90

2009-3

Superseded by

Rev. Proc. 2010-3, 2010-1 I.R.B. 110

2009-4

Superseded by

Rev. Proc. 2010-4, 2010-1 I.R.B. 122

2009-5

Superseded by

Rev. Proc. 2010-5, 2010-1 I.R.B. 165

2009-6

Superseded by

Rev. Proc. 2010-6, 2010-1 I.R.B. 193

2009-7

Superseded by

Rev. Proc. 2010-7, 2010-1 I.R.B. 231

2009-8

Superseded by

Rev. Proc. 2010-8, 2010-1 I.R.B. 234

2009-9

Superseded by

Rev. Proc. 2010-9, 2010-2 I.R.B. 258

2009-15

Amplified and superseded by

Rev. Proc. 2010-12, 2010-3 I.R.B. 302

2009-25

Superseded by

Rev. Proc. 2010-3, 2010-1 I.R.B. 110

2010-1

Corrected by

Ann. 2010-5, 2010-6 I.R.B. 402

Revenue Rulings:

67-436

Obsoleted by

REG-101896-09, 2010-5 I.R.B. 347

2008-52

Supplemented and superseded by

Rev. Rul. 2010-2, 2010-3 I.R.B. 272

Treasury Decisions:

9443

Corrected by

Ann. 2010-8, 2010-7 I.R.B. 408

9458

Corrected by

Ann. 2010-7, 2010-6 I.R.B. 403

1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin 2009–52, dated December 28,2009.

February 16, 2010 iii 2010–7 I.R.B.

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