Highlights of This IssueINCOME TAXEMPLOYEE PLANSEXEMPT ORGANIZATIONSPrefaceThe IRS MissionIntroductionPart I. Rulings and Decisions Under the Internal Revenue Codeof 1986Rev. Rul. 201324Part III. Administrative, Procedural, and MiscellaneousNotice 201373Notice 201375Rev. Proc. 201336Rev. Proc. 201337Part IV. Items of General InterestREG12092713Announcement 201347Announcement 201348Announcement 201349Definition of Terms and AbbreviationsDefinition of TermsAbbreviationsNumerical Finding ListNumerical Finding ListEffect of Current Actions on Previously Published ItemsFinding List of Current Actions on Previously Published ItemsINTERNAL REVENUE BULLETINCUMULATIVE BULLETINSINTERNAL REVENUE BULLETINS ON CD-ROMWe Welcome Comments About the Internal Revenue Bulletin Internal Revenue Bulletin: 2013-49 December 2, 2013 Highlights of This Issue 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. INCOME TAX Rev. Rul. 2013–24 Rev. Rul. 2013–24 The “base period T-bill rate” for the period ending September 30, 2013, is published, as required by section 995(f) of the Code. Rev. Proc. 2013–36 Rev. Proc. 2013–36 The loss payment patterns and discount factors are set forth for the 2013 accident year. These factors will be used for computing discounted unpaid losses under § 846 of the Code. Rev. Proc. 2013–37 Rev. Proc. 2013–37 The salvage discount factors are set forth for the 2013 accident year. These factors will be used for computing discounted estimated salvage recoverable under § 832 of the Code. EMPLOYEE PLANS REG–120927–13 REG–120927–13 These proposed regulations would clarify that amounts paid to an Indian tribe member as remuneration for services performed in a fishing rights-related activity may be treated as compensation for purposes of applying the limits on qualified plan benefits and contributions. These regulations would affect sponsors of, and participants in, employee benefit plans of Indian tribal governments. Comments are requested by February 13, 2014. Notice 2013–73 Notice 2013–73 2014 cost-of-living adjustments; retirements plans, etc. This notice sets forth certain cost-of-living adjustments effective January 1, 2014, applicable to the dollar limitations on benefits and contributions under qualified retirement plans. Other limitations applicable to deferred compensation plans are also affected by these adjustments under § 415. Under § 415(d), the adjustments are to be made pursuant to adjustment procedures which are similar to those used to adjust benefit amounts under § 215(i)(2)(A) of the Social Security Act. This notice also contains cost-of-living adjustments for several pension-related amounts in restating the data in IR–2013–86 issued October 31, 2013. Notice 2013–75 Notice 2013–75 Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in November 2013; the 24-month average segment rates; the funding segment rates applicable for November 2013; and the minimum present value rates for October 2013. The rates in this notice reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112–141 (MAP-21). EXEMPT ORGANIZATIONS Announcement 2013–48 Announcement 2013–48 The IRS has revoked its determination that Corral of Comfort Horse Rescue, Inc. of Palmdale, CA., Positive Energy Foundation of Lincoln, CA., Rainy Day Foundation, Inc. of Washington, D.C., Sunrise Residential and Lifeskills Center of Cincinnati, OH., and Thunder Air Museum Inc, of Lancaster, CA., qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code. Preface 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. Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Rev. Rul. 2013–24 Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a DISC shall pay interest each taxable year in an amount equal to the product of the shareholder’s DISC-related deferred tax liability for the year and the “base period T-bill rate.” Under section 995(f)(4), the base period T-bill rate is the annual rate of interest determined by the Secretary to be equivalent to the average of the 1-year constant maturity Treasury yields, as published by the Board of Governors of the Federal Reserve System, for the 1-year period ending on September 30 of the calendar year ending with (or of the most recent calendar year ending before) the close of the taxable year of the shareholder. The base period T-bill rate for the period ending September 30, 2013, is 0.140 percent. Pursuant to section 6222 of the Code, interest must be compounded daily. The table below provides factors for compounding the base period T-bill rate daily for any number of days in the shareholder’s taxable year (including a 52-53 week accounting period) for the 2013 base period T-bill rate. To compute the amount of the interest charge for the shareholder’s taxable year, multiply the amount of the shareholder’s DISC-related deferred tax liability (as defined in section 995(f)(2)) for that year by the base period T-bill rate factor corresponding to the number of days in the shareholder’s taxable year for which the interest charge is being computed. Generally, one would use the factor for 365 days. One would use a different factor only if the shareholder’s taxable year for which the interest charge being determined is a short taxable year, if the shareholder uses the 52-53 week taxable year, or if the shareholder’s taxable year is a leap year. For the base period T-bill rates for the periods ending in prior years, see Rev. Rul. 2012-22, 2012-48 I.R.B. 565; Rev. Rul. 2011-30, 2011-49 I.R.B. 826; Rev. Rul. 2010-28, 2010-49 I.R.B. 804; Rev. Rul. 2009-36, 2009-47 I.R.B. 650; and Rev. Rul. 2008-51, 2008-2 C.B. 1171. DRAFTING INFORMATION The principal author of this revenue ruling is Teresa Burridge Hughes of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact Ms. Hughes at (202) 317-6936 (not a toll-free call). ANNUAL RATE, COMPOUNDED DAILY 0.140 PERCENT DAYS FACTOR 1 .000003836 2 .000007671 3 .000011507 4 .000015343 5 .000019178 6 .000023014 7 .000026850 8 .000030685 9 .000034521 10 .000038357 11 .000042193 12 .000046028 13 .000049864 14 .000053700 15 .000057536 16 .000061372 17 .000065207 18 .000069043 19 .000072879 20 .000076715 21 .000080551 22 .000084387 23 .000088223 24 .000092059 25 .000095895 26 .000099731 27 .000103567 28 .000107403 29 .000111239 30 .000115075 31 .000118911 32 .000122747 33 .000126583 34 .000130419 35 .000134255 36 .000138091 37 .000141928 38 .000145764 39 .000149600 40 .000153436 41 .000157272 42 .000161109 43 .000164945 44 .000168781 45 .000172617 46 .000176454 47 .000180290 48 .000184126 49 .000187963 50 .000191799 51 .000195635 52 .000199472 53 .000203308 54 .000207144 55 .000210981 56 .000214817 57 .000218654 58 .000222490 59 .000226327 60 .000230163 61 .000234000 62 .000237836 63 .000241673 64 .000245509 65 .000249346 66 .000253182 67 .000257019 68 .000260855 69 .000264692 70 .000268529 71 .000272365 72 .000276202 73 .000280039 74 .000283875 75 .000287712 76 .000291549 77 .000295386 78 .000299222 79 .000303059 80 .000306896 81 .000310733 82 .000314569 83 .000318406 84 .000322243 85 .000326080 86 .000329917 87 .000333754 88 .000337591 89 .000341427 90 .000345264 91 .000349101 92 .000352938 93 .000356775 94 .000360612 95 .000364449 96 .000368286 97 .000372123 98 .000375960 99 .000379797 100 .000383634 101 .000387472 102 .000391309 103 .000395146 104 .000398983 105 .000402820 106 .000406657 107 .000410494 108 .000414332 109 .000418169 110 .000422006 111 .000425843 112 .000429681 113 .000433518 114 .000437355 115 .000441192 116 .000445030 117 .000448867 118 .000452704 119 .000456542 120 .000460379 121 .000464216 122 .000468054 123 .000471891 124 .000475729 125 .000479566 126 .000483404 127 .000487241 128 .000491079 129 .000494916 130 .000498754 131 .000502591 132 .000506429 133 .000510266 134 .000514104 135 .000517941 136 .000521779 137 .000525617 138 .000529454 139 .000533292 140 .000537129 141 .000540967 142 .000544805 143 .000548643 144 .000552480 145 .000556318 146 .000560156 147 .000563994 148 .000567831 149 .000571669 150 .000575507 151 .000579345 152 .000583183 153 .000587020 154 .000590858 155 .000594696 156 .000598534 157 .000602372 158 .000606210 159 .000610048 160 .000613886 161 .000617724 162 .000621562 163 .000625400 164 .000629238 165 .000633076 166 .000636914 167 .000640752 168 .000644590 169 .000648428 170 .000652266 171 .000656104 172 .000659942 173 .000663781 174 .000667619 175 .000671457 176 .000675295 177 .000679133 178 .000682972 179 .000686810 180 .000690648 181 .000694486 182 .000698325 183 .000702163 184 .000706001 185 .000709839 186 .000713678 187 .000717516 188 .000721355 189 .000725193 190 .000729031 191 .000732870 192 .000736708 193 .000740547 194 .000744385 195 .000748224 196 .000752062 197 .000755901 198 .000759739 199 .000763578 200 .000767416 201 .000771255 202 .000775093 203 .000778932 204 .000782770 205 .000786609 206 .000790448 207 .000794286 208 .000798125 209 .000801964 210 .000805802 211 .000809641 212 .000813480 213 .000817319 214 .000821157 215 .000824996 216 .000828835 217 .000832674 218 .000836512 219 .000840351 220 .000844190 221 .000848029 222 .000851868 223 .000855707 224 .000859546 225 .000863385 226 .000867223 227 .000871062 228 .000874901 229 .000878740 230 .000882579 231 .000886418 232 .000890257 233 .000894096 234 .000897935 235 .000901774 236 .000905614 237 .000909453 238 .000913292 239 .000917131 240 .000920970 241 .000924809 242 .000928648 243 .000932488 244 .000936327 245 .000940166 246 .000944005 247 .000947844 248 .000951684 249 .000955523 250 .000959362 251 .000963201 252 .000967041 253 .000970880 254 .000974719 255 .000978559 256 .000982398 257 .000986238 258 .000990077 259 .000993916 260 .000997756 261 .001001595 262 .001005435 263 .001009274 264 .001013114 265 .001016953 266 .001020793 267 .001024632 268 .001028472 269 .001032311 270 .001036151 271 .001039990 272 .001043830 273 .001047670 274 .001051509 275 .001055349 276 .001059189 277 .001063028 278 .001066868 279 .001070708 280 .001074547 281 .001078387 282 .001082227 283 .001086067 284 .001089906 285 .001093746 286 .001097586 287 .001101426 288 .001105266 289 .001109106 290 .001112945 291 .001116785 292 .001120625 293 .001124465 294 .001128305 295 .001132145 296 .001135985 297 .001139825 298 .001143665 299 .001147505 300 .001151345 301 .001155185 302 .001159025 303 .001162865 304 .001166705 305 .001170545 306 .001174385 307 .001178226 308 .001182066 309 .001185906 310 .001189746 311 .001193586 312 .001197426 313 .001201267 314 .001205107 315 .001208947 316 .001212787 317 .001216628 318 .001220468 319 .001224308 320 .001228148 321 .001231989 322 .001235829 323 .001239669 324 .001243510 325 .001247350 326 .001251191 327 .001255031 328 .001258871 329 .001262712 330 .001266552 331 .001270393 332 .001274233 333 .001278074 334 .001281914 335 .001285755 336 .001289595 337 .001293436 338 .001297277 339 .001301117 340 .001304958 341 .001308798 342 .001312639 343 .001316480 344 .001320320 345 .001324161 346 .001328002 347 .001331842 348 .001335683 349 .001339524 350 .001343365 351 .001347205 352 .001351046 353 .001354887 354 .001358728 355 .001362569 356 .001366410 357 .001370250 358 .001374091 359 .001377932 360 .001381773 361 .001385614 362 .001389455 363 .001393296 364 .001397137 365 .001400978 366 .001404819 367 .001408660 368 .001412501 369 .001416342 370 .001420183 371 .001424024 Part III. Administrative, Procedural, and Miscellaneous Notice 2013–73 2014 Limitations Adjusted As Provided in Section 415(d), etc.[1] Section 415 of the Internal Revenue Code (the Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under § 415. Under § 415(d), the adjustments are to be made pursuant to adjustment procedures which are similar to those used to adjust benefit amounts under § 215(i)(2)(A) of the Social Security Act. Cost-of-Living Adjusted Limits for 2014 Effective January 1, 2014, the limitation on the annual benefit under a defined benefit plan under § 415(b)(1)(A) is increased from $205,000 to $210,000. For a participant who separated from service before January 1, 2014, the participant’s limitation under a defined benefit plan under § 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2013, by 1.0155. The limitation for defined contribution plans under § 415(c)(1)(A) is increased in 2014 from $51,000 to $52,000. The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of § 415(b)(1)(A). After taking into account the applicable rounding rules, the amounts for 2014 are as follows: The limitation under § 402(g)(1) on the exclusion for elective deferrals described in § 402(g)(3) remains unchanged at $17,500. The annual compensation limit under §§ 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $255,000 to $260,000. The dollar limitation under § 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is increased from $165,000 to $170,000. The dollar amount under § 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period is increased from $1,035,000 to $1,050,000, while the dollar amount used to determine the lengthening of the 5-year distribution period is increased from $205,000 to $210,000. The limitation used in the definition of highly compensated employee under § 414(q)(1)(B) remains unchanged at $115,000. The dollar limitation under § 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in § 401(k)(11) or 408(p) for individuals aged 50 or over remains unchanged at $5,500. The dollar limitation under § 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in § 401(k)(11) or 408(p) for individuals aged 50 or over remains unchanged at $2,500. The annual compensation limitation under § 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost-of-living adjustments to the compensation limitation under the plan under § 401(a)(17) to be taken into account, is increased from $380,000 to $385,000. The compensation amount under § 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $550. The limitation under § 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $12,000. The limitation on deferrals under § 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations remains unchanged at $17,500. The compensation amounts under § 1.61–21(f)(5)(i) of the Income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation purposes is increased from $100,000 to $105,000. The compensation amount under § 1.61–21(f)(5)(iii) is increased from $205,000 to $210,000. The Code also provides that several pension-related amounts are to be adjusted using the cost-of-living adjustment under § 1(f)(3). After taking the applicable rounding rules into account, the amounts for 2014 are as follows: The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing a joint return is increased from $35,500 to $36,000; the limitation under § 25B(b)(1)(B) is increased from $38,500 to $39,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $59,000 to $60,000. The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing as head of household is increased from $26,625 to $27,000; the limitation under § 25B(b)(1)(B) is increased from $28,875 to $29,250; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $44,250 to $45,000. The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contribution credit for all other taxpayers is increased from $17,750 to $18,000; the limitation under § 25B(b)(1)(B) is increased from $19,250 to $19,500; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $29,500 to $30,000. The deductible amount under § 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,500. The applicable dollar amount under § 219(g)(3)(B)(i) for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) is increased from $95,000 to $96,000. The applicable dollar amount under § 219(g)(3)(B)(ii) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $59,000 to $60,000. The applicable dollar amount under § 219(g)(3)(B)(iii) for a married individual filing a separate return is not subject to the annual cost-of-living adjustment and remains $0. The applicable dollar amount under § 219(g)(7)(A) for a taxpayer who is not an active participant but whose spouse is an active participant is increased from $178,000 to $181,000. The adjusted gross income limitation under § 408A(c)(3)(B)(ii)(I) for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $178,000 to $181,000. The adjusted gross income limitation under § 408A(c)(3)(B)(ii)(II) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $112,000 to $114,000. The applicable dollar amount under § 408A(c)(3)(B)(ii)(III) for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0. The dollar amount under § 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under § 430(c)(2)(D) has been made is increased from $1,066,000 to $1,084,000. Drafting Information The principal author of this notice is John Heil of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding the data in this notice, please contact the Employee Plans’ taxpayer assistance telephone service at 1-877-829-5500 (a toll-free call) between the hours of 8:30 a.m. and 4:30 p.m. Eastern time Monday through Friday. For information regarding the methodology used in arriving at the data in this notice, please e-mail Mr. Heil at RetirementPlanQuestions@irs.gov. [1] Based on News Release IR-2013-86 dated October 31, 2013 Notice 2013–75 Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates This notice provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), 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, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007. These rates reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112-141 (MAP-21). MAP-21 provides that for purposes of § 430(h)(2), the segment rates are limited by the applicable maximum percentage or the applicable minimum percentage based on the average of segment rates over a 25 year period. YIELD CURVE AND SEGMENT RATES Generally, except for certain plans under sections 104 and 105 of the Pension Protection Act of 2006, § 430 of the Code specifies the minimum funding requirements that apply to single employer plans 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. However, an election may be made under § 430(h)(2)(D)(ii) to use the monthly yield curve in place of the segment rates. Notice 2007–81, 2007–44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Pursuant to Notice 2007-81, the monthly corporate bond yield curve derived from October 2013 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of October 2013 are, respectively, 1.24, 4.47, and 5.52. For plan years beginning on or after January 1, 2012, the 24-month average segment rates determined under § 430(h)(2)(C)(iv) must be adjusted by the applicable percentage of the corresponding 25-year average segment rates. The 25-year average segment rates for plan years beginning in 2012, 2013, and 2014 were published in Notice 2012-55, 2012-36 I.R.B. 332, Notice 2013–11, 2013–11 I.R.B. 610, and Notice 2013–58, 2013–40 I.R.B. 294, respectively. The three 24-month average corporate bond segment rates applicable for November 2013 without adjustment, and the adjusted 24-month average segment rates taking into account the applicable percentages of the corresponding 25-year average segment rates, are as follows: For Plan Years Beginning In 24-Month Average Segment Rates Not Adjusted Adjusted 24-Month Average Segment Rates, Based on Applicable Percentage of 25-Year Average Rates Applicable First Second Third First Second Third Month Segment Segment Segment Segment Segment Segment 2012 November 2013 1.31 4.05 5.05 5.54 6.85 7.52 2013 November 2013 1.31 4.05 5.05 4.94 6.15 6.76 2014 November 2013 1.31 4.05 5.05 4.43 5.62 6.22 30-YEAR TREASURY SECURITIES INTEREST RATES Generally for plan years beginning after 2007, § 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 section 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 October 2013 is 3.68 percent. The Service has determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in August 2043. The following rates were determined for plan years beginning in the month shown below. For Plan Years Beginning in 30-Year Treasury Weighted Average Permissible Range Month Year 90% to 105% November 2013 3.45 3.10 3.62 MINIMUM PRESENT VALUE SEGMENT RATES In general, the applicable interest rates 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 October 2013 are as follows: First Segment Second Segment Third Segment 1.24 4.47 5.52 DRAFTING INFORMATION The principal author of this notice is Tony Montanaro of the Employee Plans, Tax Exempt and Government Entities Division. Mr. Montanaro may be e-mailed at RetirementPlanQuestions@irs.gov. Table I Monthly Yield Curve for October 2013 Derived from October 2013 Data Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield 0.5 0.33 20.5 5.29 40.5 5.55 60.5 5.65 80.5 5.70 1.0 0.49 21.0 5.30 41.0 5.55 61.0 5.65 81.0 5.70 1.5 0.67 21.5 5.31 41.5 5.56 61.5 5.65 81.5 5.70 2.0 0.86 22.0 5.32 42.0 5.56 62.0 5.65 82.0 5.70 2.5 1.08 22.5 5.33 42.5 5.57 62.5 5.66 82.5 5.70 3.0 1.31 23.0 5.34 43.0 5.57 63.0 5.66 83.0 5.70 3.5 1.55 23.5 5.35 43.5 5.57 63.5 5.66 83.5 5.70 4.0 1.80 24.0 5.36 44.0 5.57 64.0 5.66 84.0 5.70 4.5 2.04 24.5 5.37 44.5 5.58 64.5 5.66 84.5 5.71 5.0 2.28 25.0 5.37 45.0 5.58 65.0 5.66 85.0 5.71 5.5 2.52 25.5 5.38 45.5 5.58 65.5 5.66 85.5 5.71 6.0 2.75 26.0 5.39 46.0 5.59 66.0 5.67 86.0 5.71 6.5 2.98 26.5 5.40 46.5 5.59 66.5 5.67 86.5 5.71 7.0 3.19 27.0 5.41 47.0 5.59 67.0 5.67 87.0 5.71 7.5 3.40 27.5 5.41 47.5 5.59 67.5 5.67 87.5 5.71 8.0 3.59 28.0 5.42 48.0 5.60 68.0 5.67 88.0 5.71 8.5 3.77 28.5 5.43 48.5 5.60 68.5 5.67 88.5 5.71 9.0 3.93 29.0 5.43 49.0 5.60 69.0 5.67 89.0 5.71 9.5 4.09 29.5 5.44 49.5 5.60 69.5 5.67 89.5 5.71 10.0 4.23 30.0 5.45 50.0 5.61 70.0 5.68 90.0 5.71 10.5 4.36 30.5 5.45 50.5 5.61 70.5 5.68 90.5 5.71 11.0 4.47 31.0 5.46 51.0 5.61 71.0 5.68 91.0 5.72 11.5 4.58 31.5 5.47 51.5 5.61 71.5 5.68 91.5 5.72 12.0 4.67 32.0 5.47 52.0 5.62 72.0 5.68 92.0 5.72 12.5 4.76 32.5 5.48 52.5 5.62 72.5 5.68 92.5 5.72 13.0 4.83 33.0 5.48 53.0 5.62 73.0 5.68 93.0 5.72 13.5 4.90 33.5 5.49 53.5 5.62 73.5 5.68 93.5 5.72 14.0 4.96 34.0 5.49 54.0 5.63 74.0 5.69 94.0 5.72 14.5 5.01 34.5 5.50 54.5 5.63 74.5 5.69 94.5 5.72 15.0 5.05 35.0 5.50 55.0 5.63 75.0 5.69 95.0 5.72 15.5 5.09 35.5 5.51 55.5 5.63 75.5 5.69 95.5 5.72 16.0 5.12 36.0 5.51 56.0 5.63 76.0 5.69 96.0 5.72 16.5 5.15 36.5 5.52 56.5 5.63 76.5 5.69 96.5 5.72 17.0 5.18 37.0 5.52 57.0 5.64 77.0 5.69 97.0 5.72 17.5 5.20 37.5 5.53 57.5 5.64 77.5 5.69 97.5 5.72 18.0 5.22 38.0 5.53 58.0 5.64 78.0 5.69 98.0 5.72 18.5 5.24 38.5 5.54 58.5 5.64 78.5 5.69 98.5 5.73 19.0 5.25 39.0 5.54 59.0 5.64 79.0 5.70 99.0 5.73 19.5 5.27 39.5 5.54 59.5 5.65 79.5 5.70 99.5 5.73 20.0 5.28 40.0 5.55 60.0 5.65 80.0 5.70 100.0 5.73 Rev. Proc. 2013–36 SECTION 1. PURPOSE This revenue procedure prescribes the loss payment patterns and discount factors for the 2013 accident year. These factors will be used to compute discounted unpaid losses under § 846 of the Internal Revenue Code. See Rev. Proc. 2012–44, 2012–49 I.R.B. 645, for background concerning the loss payment patterns and application of the discount factors. SECTION 2. SCOPE This revenue procedure applies to any taxpayer that is required to discount unpaid losses under § 846 for a line of business using the discount factors published by the Secretary. SECTION 3. TABLES OF DISCOUNT FACTORS .01 The following tables present separately for each line of business the discount factors under § 846 for accident year 2013. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2013, which is 2.16 percent, and by assuming all loss payments occur in the middle of the calendar year. .02 If the groupings of individual lines of business on the annual statement change, taxpayers must discount unpaid losses on the resulting line of business in accordance with the discounting patterns that would have applied to those unpaid losses based on their classification on the 2010 annual statement. See Rev. Proc. 2012–44, 2012–49 I.R.B. 645, section 2, for additional background on discounting under § 846 and the use of the Secretary’s tables. .03 Section V of Notice 88–100, 1988–2 C.B. 439, sets forth a composite method for computing discounted unpaid losses for accident years that are not separately reported on the annual statement. The tables separately provide discount factors for taxpayers who elect to use the composite method of section V of Notice 88–100. See Rev. Proc. 2002–74, 2002–2 C.B. 980. .04 Tables. Accident and Health (Other Than Disability Income or Credit Disability Insurance) Taxpayers that do not use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the 2013 and later taxable years. Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount all unpaid losses in this line of business that are outstanding at the end of the 2013 taxable year. Auto Physical Damage Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 90.2657 90.2657 9.7343 9.6230 98.8565 2014 99.7478 9.4822 0.2522 0.2469 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2015 and later years 0.1261 0.1261 0.1247 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year. Commercial Auto/Truck Liability/Medical Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 25.7034 25.7034 74.2966 70.9382 95.4798 2014 48.2664 22.5629 51.7336 49.6652 96.0017 2015 67.8834 19.6171 32.1166 30.9101 96.2436 2016 82.0630 14.1795 17.9370 17.2459 96.1471 2017 90.4161 8.3532 9.5839 9.1756 95.7395 2018 94.6293 4.2132 5.3707 5.1153 95.2448 2019 97.0203 2.3910 2.9797 2.8092 94.2754 2020 98.2283 1.2081 1.7717 1.6488 93.0643 2021 98.6653 0.4370 1.3347 1.2428 93.1103 2022 98.8635 0.1982 1.1365 1.0692 94.0830 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 0.1982 0.9382 0.8920 95.0674 2024 0.1982 0.7400 0.7108 96.0618 2025 0.1982 0.5417 0.5258 97.0618 2026 0.1982 0.3435 0.3368 98.0526 2027 and later years 0.1982 0.1453 0.1437 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 95.2133 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Composite Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 39.5281 39.5281 60.4719 56.8797 94.0596 2014 62.0267 22.4986 37.9733 35.3680 93.1390 2015 73.7017 11.6750 26.2983 24.3315 92.5211 2016 80.0846 6.3830 19.9154 18.4055 92.4188 2017 85.7818 5.6971 14.2182 13.0448 91.7468 2018 90.2809 4.4992 9.7191 8.7791 90.3280 2019 91.9588 1.6778 8.0412 7.2728 90.4439 2020 92.9722 1.0134 7.0278 6.4056 91.1463 2021 94.0835 1.1113 5.9165 5.4207 91.6201 2022 94.7469 0.6634 5.2531 4.8673 92.6551 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 0.6634 4.5898 4.3020 93.7289 2024 0.6634 3.9264 3.7244 94.8545 2025 0.6634 3.2631 3.1344 96.0555 2026 0.6634 2.5997 2.5316 97.3791 2027 and later years 0.6634 1.9364 1.9158 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 94.0296 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Fidelity/Surety Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 22.8449 22.8449 77.1551 74.9598 97.1547 2014 55.8585 33.0137 44.1415 43.2107 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2015 and later years 22.0707 22.0707 21.8362 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year. Financial Guaranty/Mortgage Guaranty Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 6.2515 6.2515 93.7485 90.9767 97.0433 2014 43.0154 36.7639 56.9846 55.7829 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2015 and later years 28.4923 28.4923 28.1895 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year. International (Composite) Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 39.5281 39.5281 60.4719 56.8797 94.0596 2014 62.0267 22.4986 37.9733 35.3680 93.1390 2015 73.7017 11.6750 26.2983 24.3315 92.5211 2016 80.0846 6.3830 19.9154 18.4055 92.4188 2017 85.7818 5.6971 14.2182 13.0448 91.7468 2018 90.2809 4.4992 9.7191 8.7791 90.3280 2019 91.9588 1.6778 8.0412 7.2728 90.4439 2020 92.9722 1.0134 7.0278 6.4056 91.1463 2021 94.0835 1.1113 5.9165 5.4207 91.6201 2022 94.7469 0.6634 5.2531 4.8673 92.6551 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 0.6634 4.5898 4.3020 93.7289 2024 0.6634 3.9264 3.7244 94.8545 2025 0.6634 3.2631 3.1344 96.0555 2026 0.6634 2.5997 2.5316 97.3791 2027 and later years 0.6634 1.9364 1.9158 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 94.0296 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Medical Professional Liability — Claims-Made Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 6.3462 6.3462 93.6538 87.5287 93.4599 2014 23.0958 16.7496 76.9042 72.4898 94.2599 2015 41.6827 18.5868 58.3173 55.2691 94.7729 2016 56.5267 14.8440 43.4733 41.4594 95.3674 2017 71.2882 14.7615 28.7118 27.4348 95.5524 2018 82.3023 11.0141 17.6977 16.8950 95.4643 2019 86.5143 4.2120 13.4857 13.0027 96.4182 2020 91.1422 4.6279 8.8578 8.6059 97.1564 2021 94.8664 3.7242 5.1336 5.0276 97.9351 2022 97.5408 2.6745 2.4592 2.4330 98.9372 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 and later years 2.4592 – – 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Medical Professional Liability — Occurrence Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 1.2044 1.2044 98.7956 89.1257 90.2122 2014 4.3376 3.1332 95.6624 87.8839 91.8688 2015 11.8161 7.4785 88.1839 82.2234 93.2408 2016 24.7088 12.8928 75.2912 70.9681 94.2583 2017 42.3863 17.6774 57.6137 54.6337 94.8276 2018 57.1600 14.7738 42.8400 40.8813 95.4281 2019 68.9797 11.8196 31.0203 29.8178 96.1234 2020 82.4247 13.4450 17.5753 16.8724 96.0006 2021 86.7084 4.2837 13.2916 12.9071 97.1073 2022 91.6701 4.9617 8.3299 8.1709 98.0913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 and later years 4.9617 3.3683 3.3325 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 95.3404 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Miscellaneous Casualty Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 69.0731 69.0731 30.9269 30.1469 97.4781 2014 85.5169 16.4438 14.4831 14.1777 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2015 and later years 7.2415 7.2415 7.1646 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year. Multiple Peril Lines (Homeowners/Farmowners, Commercial Multiple Peril, and Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery)) Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 60.9719 60.9719 39.0281 37.4939 96.0690 2014 82.9059 21.9341 17.0941 16.1341 94.3843 2015 89.2783 6.3724 10.7217 10.0417 93.6585 2016 91.5605 2.2822 8.4395 7.9519 94.2233 2017 94.4255 2.8649 5.5745 5.2280 93.7836 2018 96.5899 2.1644 3.4101 3.1532 92.4675 2019 97.6023 1.0124 2.3977 2.1980 91.6740 2020 98.0034 0.4011 1.9966 1.8402 92.1637 2021 98.3410 0.3376 1.6590 1.5387 92.7462 2022 98.5727 0.2317 1.4273 1.3378 93.7231 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 0.2317 1.1957 1.1325 94.7155 2024 0.2317 0.9640 0.9228 95.7250 2025 0.2317 0.7324 0.7086 96.7547 2026 0.2317 0.5007 0.4898 97.8131 2027 and later years 0.2317 0.2691 0.2662 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 94.5541 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Other (Including Credit) Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 54.6589 54.6589 45.3411 44.3679 97.8536 2014 84.2314 29.5725 15.7686 15.4360 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2015 and later years 7.8843 7.8843 7.8005 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year. Other Liability — Claims-Made Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 7.4270 7.4270 92.5730 86.1238 93.0334 2014 25.2808 17.8538 74.7192 69.9385 93.6018 2015 44.2108 18.9301 55.7892 52.3158 93.7741 2016 56.4956 12.2848 43.5044 41.0291 94.3102 2017 69.2838 12.7883 30.7162 28.9897 94.3793 2018 77.6662 8.3823 22.3338 21.1435 94.6702 2019 83.1572 5.4910 16.8428 16.0502 95.2940 2020 88.1777 5.0205 11.8223 11.3225 95.7717 2021 93.1315 4.9539 6.8685 6.5599 95.5080 2022 92.9490 -0.1826 7.0510 6.8862 97.6617 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 3.2639 3.7871 3.7359 98.6482 2024 and later years 3.2639 0.5232 0.5176 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.6406 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Other Liability — Occurrence Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 10.0721 10.0721 89.9279 82.0100 91.1953 2014 24.3995 14.3274 75.6005 69.3001 91.6662 2015 37.3366 12.9372 62.6634 57.7208 92.1126 2016 52.4142 15.0776 47.5858 43.7280 91.8931 2017 64.3437 11.9295 35.6563 32.6149 91.4704 2018 73.7950 9.4512 26.2050 23.7667 90.6950 2019 79.7756 5.9807 20.2244 18.2351 90.1640 2020 84.0963 4.3206 15.9037 14.2619 89.6766 2021 85.6878 1.5915 14.3122 12.9614 90.5616 2022 86.9224 1.2346 13.0776 11.9935 91.7100 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 1.2346 11.8431 11.0047 92.9213 2024 1.2346 10.6085 9.9946 94.2131 2025 1.2346 9.3740 8.9627 95.6125 2026 1.2346 8.1394 7.9085 97.1626 2027 and later years 1.2346 6.9048 6.8314 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 92.9062 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Private Passenger Auto Liability/Medical Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 42.9881 42.9881 57.0119 55.1883 96.8013 2014 71.9931 29.0051 28.0069 27.0637 96.6325 2015 84.8250 12.8318 15.1750 14.6786 96.7288 2016 92.3500 7.5251 7.6500 7.3898 96.5989 2017 96.2665 3.9165 3.7335 3.5908 96.1796 2018 97.9880 1.7214 2.0120 1.9284 95.8467 2019 98.7958 0.8078 1.2042 1.1536 95.7990 2020 99.2445 0.4487 0.7555 0.7250 95.9639 2021 99.4543 0.2097 0.5457 0.5287 96.8694 2022 99.6370 0.1827 0.3630 0.3554 97.8984 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 and later years 0.1827 0.1803 0.1783 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Products Liability — Claims-Made Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 4.5270 4.5270 95.4730 86.4950 90.5963 2014 16.0134 11.4865 83.9866 76.7534 91.3877 2015 45.1313 29.1179 54.8687 48.9807 89.2688 2016 39.2459 -5.8854 60.7541 55.9873 92.1539 2017 44.8357 5.5898 55.1643 51.5467 93.4422 2018 72.1615 27.3258 27.8385 25.0408 89.9502 2019 80.4448 8.2834 19.5552 17.2094 88.0042 2020 73.2957 -7.1491 26.7043 24.8070 92.8952 2021 87.4824 14.1866 12.5176 11.0038 87.9062 2022 87.7500 0.2677 12.2500 10.9709 89.5588 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 0.2677 11.9823 10.9374 91.2792 2024 0.2677 11.7147 10.9031 93.0721 2025 0.2677 11.4470 10.8680 94.9424 2026 0.2677 11.1793 10.8323 96.8954 2027 and later years 0.2677 10.9117 10.7957 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 93.5799 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Products Liability – Occurrence Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 7.1936 7.1936 92.8064 83.6839 90.1704 2014 16.9555 9.7619 83.0445 75.6247 91.0653 2015 28.3624 11.4069 71.6376 65.7288 91.7518 2016 39.7945 11.4321 60.2055 55.5936 92.3397 2017 54.3906 14.5961 45.6094 42.0415 92.1773 2018 60.9060 6.5154 39.0940 36.3642 93.0174 2019 67.7760 6.8700 32.2240 30.2059 93.7373 2020 75.7119 7.9359 24.2881 22.8372 94.0263 2021 79.5966 3.8847 20.4034 19.4040 95.1021 2022 83.9430 4.3464 16.0570 15.4301 96.0957 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 4.3464 11.7107 11.3703 97.0940 2024 4.3464 7.3643 7.2229 98.0799 2025 and later years 4.3464 3.0179 2.9859 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 97.2932 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Reinsurance — Nonproportional Assumed Property Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 20.1003 20.1003 79.8997 76.5081 95.7551 2014 59.2833 39.1830 40.7167 38.5567 94.6950 2015 73.0867 13.8034 26.9133 25.4378 94.5177 2016 80.3675 7.2808 19.6325 18.6282 94.8848 2017 87.7278 7.3603 12.2722 11.5912 94.4514 2018 94.4454 6.7175 5.5546 5.0519 90.9495 2019 96.5143 2.0689 3.4857 3.0699 88.0707 2020 97.9468 1.4326 2.0532 1.6883 82.2272 2021 97.4560 -0.4909 2.5440 2.2209 87.2972 2022 97.0652 -0.3908 2.9348 2.6638 90.7662 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 0.1836 2.7512 2.5358 92.1696 2024 0.1836 2.5675 2.4049 93.6659 2025 0.1836 2.3839 2.2713 95.2743 2026 0.1836 2.2003 2.1347 97.0199 2027 and later years 0.1836 2.0166 1.9952 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 91.9206 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Reinsurance — Nonproportional Assumed Liability Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 3.4987 3.4987 96.5013 87.1418 90.3012 2014 23.2170 19.7183 76.7830 69.0940 89.9860 2015 43.7483 20.5313 56.2517 49.8346 88.5920 2016 38.9131 -4.8352 61.0869 55.7981 91.3422 2017 47.9298 9.0167 52.0702 47.8898 91.9715 2018 80.0315 32.1017 19.9685 16.4777 82.5182 2019 76.5053 -3.5292 23.4947 20.3977 86.8180 2020 78.1701 1.6649 21.8299 19.1555 87.7491 2021 80.0717 1.9015 19.9283 17.6473 88.5539 2022 79.8791 -0.1926 20.1209 18.2231 90.5681 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 1.1246 18.9963 17.4801 92.0183 2024 1.1246 17.8717 16.7210 93.5611 2025 1.1246 16.7471 15.9455 95.2132 2026 1.1246 15.6225 15.1532 96.9959 2027 and later years 1.1246 14.4979 14.3438 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 91.9297 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Reinsurance — Nonproportional Assumed Financial Lines Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 1.5423 1.5423 98.4577 91.0796 92.5063 2014 20.9273 19.3850 79.0727 73.4537 92.8939 2015 30.4705 9.5433 69.5295 65.3945 94.0530 2016 46.3043 15.8337 53.6957 50.8032 94.6132 2017 51.8464 5.5421 48.1536 46.2989 96.1484 2018 72.7869 20.9405 27.2131 26.1335 96.0328 2019 82.0967 9.3097 17.9033 17.2882 96.5643 2020 89.2630 7.1664 10.7370 10.4183 97.0321 2021 95.3692 6.1062 4.6308 4.4716 96.5616 2022 96.7995 1.4303 3.2005 3.1225 97.5627 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 1.4303 1.7702 1.7443 98.5356 2024 and later years 1.4303 0.3399 0.3363 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.5436 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary and Theft) Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 55.6145 55.6145 44.3855 43.5814 98.1884 2014 89.3328 33.7182 10.6672 10.4423 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2015 and later years 5.3336 5.3336 5.2769 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year. Warranty Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 85.4101 85.4101 14.5899 14.4204 98.8387 2014 99.5388 14.1287 0.4612 0.4515 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2015 and later years 0.2306 0.2306 0.2281 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2015 taxable year. Workers’ Compensation Estimated Cumulative Losses Paid Estimated Losses Paid Each Year Unpaid Losses at Year End Discounted Unpaid Losses at Year End Discount Factors Tax Year (%) (%) (%) (%) (%) 2013 21.8973 21.8973 78.1027 70.5590 90.3413 2014 43.4962 21.5989 56.5038 50.2521 88.9359 2015 56.0061 12.5099 43.9939 38.6933 87.9515 2016 63.5544 7.5482 36.4456 31.8997 87.5269 2017 68.9880 5.4337 31.0120 27.0967 87.3751 2018 73.9567 4.9687 26.0433 22.6599 87.0089 2019 76.0580 2.1013 23.9420 21.0255 87.8187 2020 77.6365 1.5785 22.3635 19.8843 88.9139 2021 80.1194 2.4828 19.8806 17.8042 89.5556 2022 81.3456 1.2262 18.6544 16.9494 90.8600 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount unpaid losses incurred in this line of business in the 2013 accident year and that are outstanding at the end of the tax year shown. 2023 1.2262 17.4281 16.0761 92.2420 2024 1.2262 16.2019 15.1839 93.7167 2025 1.2262 14.9757 14.2724 95.3043 2026 1.2262 13.7494 13.3413 97.0319 2027 and later years 1.2262 12.5232 12.3901 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 93.4456 percent to discount unpaid losses incurred in this line of business in 2013 and prior years and that are outstanding at the end of the 2023 taxable year. SECTION 4. DRAFTING INFORMATION The principal author of this revenue procedure is David Remus of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure contact Mr. Remus on (202) 622-3970 (not a toll-free call). Rev. Proc. 2013–37 SECTION 1. PURPOSE This revenue procedure prescribes the salvage discount factors for the 2013 accident year. These factors must be used to compute discounted estimated salvage recoverable under § 832 of the Internal Revenue Code. SECTION 2. BACKGROUND Section 832(b)(5)(A) requires that all estimated salvage recoverable (including that which cannot be treated as an asset for state accounting purposes) be taken into account in computing the deduction for losses incurred. Under § 832(b)(5)(A), paid losses are reduced by salvage and reinsurance recovered during the taxable year. This amount is adjusted to reflect changes in discounted unpaid losses on nonlife insurance contracts and in unpaid losses on life insurance contracts. An adjustment is then made to reflect any changes in discounted estimated salvage recoverable and in reinsurance recoverable. Pursuant to § 832(b), the amount of estimated salvage is determined on a discounted basis in accordance with procedures established by the Secretary. SECTION 3. SCOPE This revenue procedure applies to any taxpayer that is required to discount estimated salvage recoverable under § 832. SECTION 4. TABLES OF DISCOUNT FACTORS .01 The following tables present separately for each line of business the discount factors under § 832 for the 2013 accident year. All the discount factors presented in this section were determined using the applicable interest rate under § 846(c) for 2013, which is 2.16 percent, and by assuming all estimated salvage is recovered in the middle of the calendar year. .02 These tables must be used by taxpayers irrespective of whether they elected to discount unpaid losses using their own experience under § 846(e). .03 Section V of Notice 88–100, 1988–2 C.B. 439, provides a composite discount factor to be used in determining the discounted unpaid losses for accident years that are not separately reported on the annual statement approved by the National Association of Insurance Commissioners. The tables separately provide discount factors for taxpayers who elect to use the composite method. Rev. Proc. 2002–74, 2002–2 C.B. 980, clarifies that for certain insurance companies subject to tax under § 831 the composite method for discounting unpaid losses set forth in Notice 88–100, section V, is permitted but not required. Rev. Proc. 2002–74 further provides alternative methods for computing discounted unpaid losses that are permitted for insurance companies not using the composite method, and sets forth a procedure for insurance companies to obtain automatic consent of the Commissioner to change to one of the methods described therein. .04 Tables. Accident and Health (Other Than Disability Income or Credit Disability Insurance) Taxpayers that do not use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable with respect to losses incurred in this line of business in the 2013 accident year as of the end of the 2013 and later taxable years. Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount all salvage recoverable in this line of business as of the end of the 2013 taxable year. Auto Physical Damage Discount Factors Tax Year (%) 2013 98.4882 2014 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2015 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2015 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Commercial Auto/Truck Liability/Medical Discount Factors Tax Year (%) 2013 96.0918 2014 95.6766 2015 96.0149 2016 95.5121 2017 95.9064 2018 95.6648 2019 92.3932 2020 91.0203 2021 93.1830 2022 94.1559 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 95.1400 2024 96.1331 2025 97.1298 2026 98.1108 2027 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 95.0296 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Composite Discount Factors Tax Year (%) 2013 95.8312 2014 95.6601 2015 95.8323 2016 94.6468 2017 95.0231 2018 94.6757 2019 94.5640 2020 95.0764 2021 95.0903 2022 96.0842 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 97.0831 2024 98.0706 2025 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 97.2205 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Fidelity/Surety Discount Factors Tax Year (%) 2013 96.6294 2014 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2015 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2015 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Financial Guaranty/Mortgage Guaranty Discount Factors Tax Year (%) 2013 96.2442 2014 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2015 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2015 taxable year with respect to losses incurred in this line of business in 2013 and prior years. International (Composite) Discount Factors Tax Year (%) 2013 95.8312 2014 95.6601 2015 95.8323 2016 94.6468 2017 95.0231 2018 94.6757 2019 94.5640 2020 95.0764 2021 95.0903 2022 96.0842 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 97.0831 2024 98.0706 2025 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 97.2205 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Medical Professional Liability — Claims-Made Discount Factors Tax Year (%) 2013 95.2786 2014 95.9565 2015 94.0862 2016 96.2641 2017 96.4417 2018 96.8118 2019 97.5213 2020 98.0020 2021 97.9851 2022 98.9372 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Medical Professional Liability — Occurrence Discount Factors Tax Year (%) 2013 95.7712 2014 97.3870 2015 96.9618 2016 97.9399 2017 97.1545 2018 98.2412 2019 97.7408 2020 97.8032 2021 96.3820 2022 97.3760 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 98.3399 2024 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.3944 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Miscellaneous Casualty Discount Factors Tax Year (%) 2013 97.1217 2014 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2015 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2015 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Multiple Peril Lines (Homeowners/Farmowners, Commercial Multiple Peril, and Special Liability (Ocean Marine, Aircraft (All Perils), Boiler and Machinery)) Discount Factors Tax Year (%) 2013 96.3826 2014 96.3451 2015 96.7517 2016 95.2517 2017 96.4850 2018 96.8610 2019 96.9777 2020 96.8985 2021 96.6327 2022 98.9372 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Other (Including Credit) Discount Factors Tax Year (%) 2013 97.6897 2014 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2015 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2015 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Other Liability — Claims-Made Discount Factors Tax Year (%) 2013 95.1076 2014 95.4013 2015 95.4350 2016 96.3406 2017 96.3743 2018 96.5027 2019 97.3792 2020 97.3555 2021 97.5726 2022 98.5464 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Other Liability — Occurrence Discount Factors Tax Year (%) 2013 92.6226 2014 93.5130 2015 94.4491 2016 94.9634 2017 95.5708 2018 96.4140 2019 96.5549 2020 96.4769 2021 97.9444 2022 98.9372 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Private Passenger Auto Liability/Medical Discount Factors Tax Year (%) 2013 97.0706 2014 96.9687 2015 96.9501 2016 96.4757 2017 96.4634 2018 96.5763 2019 96.3892 2020 96.6383 2021 97.6225 2022 98.6028 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Products Liability — Claims-Made Discount Factors Tax Year (%) 2013 92.2286 2014 93.4576 2015 92.0267 2016 96.2215 2017 94.6124 2018 98.6304 2019 97.2433 2020 88.9465 2021 98.6843 2022 98.9372 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.3136 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Products Liability — Occurrence Discount Factors Tax Year (%) 2013 92.9273 2014 92.9980 2015 93.6660 2016 94.6880 2017 95.1420 2018 95.8302 2019 95.7694 2020 97.5022 2021 97.0413 2022 98.0355 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Reinsurance — Nonproportional Assumed Property Discount Factors Tax Year (%) 2013 94.5748 2014 96.3787 2015 94.7317 2016 93.7440 2017 95.4876 2018 94.6692 2019 97.6860 2020 92.4794 2021 96.9357 2022 97.9499 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 96.4869 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Reinsurance — Nonproportional Assumed Liability Discount Factors Tax Year (%) 2013 90.3595 2014 92.1774 2015 87.9515 2016 88.9859 2017 93.5912 2018 95.9635 2019 95.3061 2020 95.7404 2021 94.3801 2022 97.4575 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 98.4227 2024 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.4548 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Reinsurance — Nonproportional Assumed Financial Lines Discount Factors Tax Year (%) 2013 91.0140 2014 92.3376 2015 95.1527 2016 95.2554 2017 96.3242 2018 94.8469 2019 96.3368 2020 96.2848 2021 98.7677 2022 98.9372 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Special Property (Fire, Allied Lines, Inland Marine, Earthquake, Burglary and Theft) Discount Factors Tax Year (%) 2013 97.2489 2014 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2015 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2015 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Warranty Discount Factors Tax Year (%) 2013 96.8834 2014 97.8913 Taxpayers that do not use the composite method of Notice 88–100 should use the following factor to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2015 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 98.9372 percent to discount salvage recoverable as of the end of the 2015 taxable year with respect to losses incurred in this line of business in 2013 and prior years. Workers’ Compensation Discount Factors Tax Year (%) 2013 93.4664 2014 94.6736 2015 95.3195 2016 94.1675 2017 93.6989 2018 93.1688 2019 93.6398 2020 94.7487 2021 94.9592 2022 95.9566 Taxpayers that do not use the composite method of Notice 88–100 should use the following factors to discount salvage recoverable as of the end of the tax year shown with respect to losses incurred in this line of business in the 2013 accident year. 2023 96.9634 2024 97.9719 2025 and later years 98.9372 Taxpayers that use the composite method of Notice 88–100 should use 97.2990 percent to discount salvage recoverable as of the end of the 2023 taxable year with respect to losses incurred in this line of business in 2013 and prior years. SECTION 5. DRAFTING INFORMATION The principal author of this revenue procedure is David Remus of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure contact Mr. Remus on (202) 622-3970 (not a toll-free call). Part IV. Items of General Interest REG–120927–13 Notice of Proposed Rulemaking Treatment of Income from Indian Fishing Rights-Related Activity as Compensation AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking. SUMMARY: This document contains proposed regulations that would clarify that amounts paid to an Indian tribe member as remuneration for services performed in a fishing rights-related activity may be treated as compensation for purposes of applying the limits on qualified plan benefits and contributions. These regulations would affect sponsors of, and participants in, employee benefit plans of Indian tribal governments. DATES: Comments and requests for a public hearing must be received by February 13, 2014. ADDRESSES: Send submissions to CC:PA:LPD:PR (REG–120927–13), room 5205, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington D.C. 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG–120927–13), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, DC, 20224, or sent electronically via the Federal eRulemaking Portal at www.regulations.gov (IRS REG–120927–13). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Sarah Bolen or Pamela Kinard at (202) 622-6060 or (202) 317-6700; concerning the submission of comments or to request a public hearing, Oluwafunmilayo Taylor, (202) 622-7180 or (202) 317-6901 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background Indian tribal governments (ITGs) and individual tribe members conduct fishing activities to generate revenue, protect critical habitats, and preserve tribal customs and traditions. Various treaties, federal statutes, and Presidential executive orders reserve to Indian tribe members the right to fish for subsistence and commercial purposes both on and off reservations. Because many of the treaties, statutes, and executive orders were adopted before passage of the Federal income tax, they often do not expressly address the question of whether income derived by Indians and ITGs from protected fishing activities is exempt from taxation. See H.R. Rep. 100–1104, at p. 77 (1988). Congress added section 7873 to the Internal Revenue Code as part of the Technical and Miscellaneous Revenue Act of 1988 (Public Law 100-647). Section 7873(a)(1) provides that no income tax shall be imposed on income derived from a fishing rights-related activity of an Indian tribe by (A) a member of the tribe directly or through a qualified Indian entity, or (B) a qualified Indian entity. Section 7873(a)(2) provides that no employment tax shall be imposed on remuneration paid for services performed in a fishing rights-related activity of an Indian tribe by a member of such tribe for another member of such tribe or for a qualified Indian entity. Thus, section 7873(a) exempts income derived from a fishing rights-related activity (“fishing rights-related income”) from both income and employment taxes. Section 7873(b)(1) defines fishing rights-related activity with respect to an Indian tribe as any activity directly related to harvesting, processing, or transporting fish harvested in the exercise of a recognized fishing right of the tribe or to selling such fish but only if substantially all of such harvesting was performed by members of such tribe. Section 415(a)(1) provides that a trust that is part of a pension, profit-sharing, or stock bonus plan shall not constitute a qualified trust under section 401(a) if (A) in the case of a defined benefit plan, the plan provides for the payment of benefits with respect to a participant which exceed the limitation of section 415(b), or (B) in the case of a defined contribution plan, contributions and other additions under the plan with respect to any participant for any taxable year exceed the limitation of section 415(c). Section 415(b)(1) provides that benefits with respect to a participant exceed the annual limitation for defined benefit plans if, when expressed as an annual benefit (within the meaning of section 415(b)(2)), the participant’s annual benefit is greater than the lesser of $160,000 (as adjusted in accordance with section 415(d)(1)) or 100 percent of the participant’s average compensation for the participant’s high 3 years. Section 415(b)(3) provides that, for purposes of section 415(b)(1), a participant’s high 3 years will be the period of consecutive calendar years (not more than 3) during which the participant had the greatest aggregate compensation from the employer. In the case of an employee within the meaning of section 401(c)(1) (that is, a self-employed individual treated as an employee), the preceding sentence is applied by substituting for “compensation from the employer” the following: “the participant’s earned income (within the meaning of section 401(c)(2) but determined without regard to any exclusion under section 911).” Section 415(c)(1) provides that contributions and other additions with respect to a participant exceed the annual limitation for defined contribution plans if, when expressed as an annual addition (within the meaning of section 415(c)(2)) to the participant’s account, the participant’s annual addition is greater than the lesser of $40,000 (as adjusted in accordance with section 415(d)(1)) or 100 percent of the participant’s compensation. Section 415(c)(3) provides that the term “participant’s compensation” means the compensation of the participant from the employer for the year. Section 1.415(c)–2(a) of the Income Tax Regulations generally provides that compensation from the employer within the meaning of section 415(c)(3) includes all items of remuneration described in §1.415(c)–2(b), but excludes the items of remuneration described in §1.415(c)–2(c). Section 1.415(c)–2(b) generally provides that, for purposes of applying the limitations of section 415, the term compensation means remuneration for services. Specifically, under §1.415(c)–2(b)(1), compensation includes employee wages, salaries, fees for professional services, and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the employer maintaining the plan, to the extent that the amounts are includible in gross income. In addition, §1.415(c)–2(b)(2) provides that in the case of an employee within the meaning of section 401(c)(1) (a self-employed employee), compensation includes the employee’s earned income (as described in section 401(c)(2)) plus amounts deferred at the election of the employee that would be includible in gross income but for the rules of section 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). Section 1.415(c)–2(c) excludes certain items from the definition of compensation under section 415(c)(3). Specifically, §1.415(c)–2(c)(1) excludes contributions (other than certain elective contributions) made by the employer to a plan of deferred compensation to the extent that the contributions are not includible in the gross income of the employee for the taxable year in which contributed. Likewise, distributions from plans (whether qualified or not) are generally not considered to be compensation for section 415 purposes. Section 1.415(c)–2(c)(2) excludes from compensation amounts realized from the exercise of nonstatutory options and amounts realized when restricted stock or other property held by an employee becomes freely transferable or is no longer subject to a substantial risk of forfeiture. Section 1.415(c)–2(c)(3) excludes from compensation amounts realized from the sale, exchange, or other disposition of stock acquired under a statutory stock option (as defined in §1.421–1(b)). Finally, §1.415(c)–2(c)(4) excludes from compensation other amounts that receive special tax benefits, such as certain premiums for group-term life insurance. Section 1.415(c)–2(d) provides safe harbor definitions that a plan is permitted to use to define compensation in a manner that satisfies section 415(c)(3). Section 1.415(c)–2(d)(2) provides a safe harbor definition of compensation that includes only those items listed in §1.415(c)–2(b)(1) or (b)(2) and excludes all the items listed in §1.415(c)–2(c). Section 415(c)–2(d)(3) provides a separate safe harbor definition of compensation that includes wages within the meaning of section 3401(a), plus amounts that would be included in wages but for an election under section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(b), 402(k), or 457(b). Explanation of Provisions Because fishing rights-related income is not subject to income tax, an issue has been raised as to whether such income is included as compensation for purposes of section 415(c)(3) and §1.415(c)–2(b). The proposed regulations would clarify that certain fishing rights-related income is included in the definition of compensation. Specifically, these regulations would provide that amounts paid to a member of an Indian tribe as remuneration for services performed in a fishing rights-related activity (as defined in section 7873(b)(1)) do not fail to be treated as compensation under §1.415(c)–2(b)(1) and (b)(2) (and are not excluded from the definition of compensation pursuant to §1.415(c)–2(c)(4)) merely because those amounts are not subject to income tax as a result of section 7873(a)(1). Thus, the determination of whether an amount constitutes wages, salaries, or earned income for purposes of §1.415(c)–2(b)(1) or (b)(2) is made without regard to the exemption from taxation under section 7873(b)(1) and (b)(2). In addition, by permitting fishing rights-related income to be treated as wages, salaries, or earned income under §1.415(c)–2(b)(1) and (b)(2), plans that accept contributions of fishing rights-related income would not be precluded from utilizing the safe harbor definitions of compensation under §1.415(c)–2(d)(2) and (d)(3) of the regulations. Proposed Applicability Date These regulations are proposed to apply for taxable years ending on or after the date of publication of the Treasury decision adopting these rules as final regulations in the Federal Register. Taxpayers, however, may rely on these proposed regulations for periods preceding the effective date, pending the issuance of final regulations. If, and to the extent, the final regulations are more restrictive than the rules in these proposed regulations, those provisions of the final regulations will be applied without retroactive effect. Special Analyses It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It has also been determined that 5 U.S.C. 533(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. Because these regulations do not impose a collection of information on small entities, the provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply and a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, these regulations have been submitted to the Office of Chief Counsel for Advocacy of the Small Business Administration for comments on its impact on small business. Comments and Requests for Public Hearing Before these proposed regulations are adopted as final regulations, consideration will be given to any comments that are submitted timely to the IRS as prescribed in this preamble under the “Addresses” heading. In addition to general comments on the proposed regulations, the IRS and the Treasury Department request comments on the taxation of qualified plan distributions that are attributable to fishing rights-related income, and the application of section 72(f)(2) (which treats certain amounts as basis for purposes of computing employee contributions if those amounts would have not been includible in income had they been paid directly to the employee). All comments are available at www.regulations.gov or upon request. A public hearing will be scheduled if requested in writing by any person who timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place of the public hearing will be published in the Federal Register. Consultation and Coordination with Indian Tribal Governments These proposed regulations take into account comments provided through a number of general consultation sessions held with the Indian tribal community in recent years. Consistent with Executive Order 13175, the Treasury Department and the IRS expect to hold a telephone consultation on a date between November 15, 2013 and February 13, 2014. This telephone consultation session will focus principally on the contribution of section 7873 income to qualified retirement plans and the taxation of qualified plan distributions that are attributable to this income. Information relating to the consultation, including the date, time, registration requirements, and procedures for submitting written and oral comments, will be available on the IRS website relating to Indian tribal governments at: http://www.irs.gov/Government-Entities/Indian-Tribal-Governments. Drafting Information The principal author of these regulations is Sarah R. Bolen, Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and the Treasury Department participated in the development of these regulations. ***** Proposed Amendments to the Regulations Accordingly, 26 CFR part 1 is proposed to be amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.415(c)–2 is amended by adding paragraphs (g)(9) and (h) to read as follows: §1.415(c)–2 Compensation. * * * * * (g) * * * (9) Income derived by Indians from exercise of fishing rights. Amounts paid to a member of an Indian tribe directly or through a qualified Indian entity (within the meaning of section 7873(b)(3)) as compensation for services performed in a fishing rights-related activity (as defined in section 7873(b)(1)) of the tribe do not fail to constitute compensation under paragraphs (b)(1) and (b)(2) of this section and are not excluded from the definition of compensation pursuant to paragraph (c)(4) of this section merely because those amounts are not subject to income or employment taxes as a result of section 7873(a)(1) and (a)(2). Thus, the determination of whether an amount constitutes wages, salaries, or earned income for purposes of paragraph (b)(1) or (a)(2) of this section is made without regard to the exemption from taxation under section 7873(a)(1) and (a)(2). (h) Effective/applicability date. Section 1.415(c)–2(g)(9) shall apply for plan years ending on or after the date of publication of the Treasury decision adopting these rules as final regulations in the Federal Register. Heather C. Maloy, Acting Deputy Commissioner for Services and Enforcement.. Note (Filed by the Office of the Federal Register on November 14, 2013, 8:45 a.m., and published in the issue of the Federal Register for November 15, 2013, 78 F.R. 68780) Announcement 2013–47 Notice of Dispositions of Declaratory Judgment Proceedings under Section 7428 This announcement serves notice to donors that on July 9, 2013, the United States Tax Court entered an order and decision that, effective January 1, 2005, the organization listed below is not recognized as an organization described in section 501(c)(3), is not exempt from tax under section 501(a), and is not an organization described in section 170(c)(2). First Step, Inc. Manahawkin, NJ Announcement 2013–48 Deletions from Cumulative List of Organizations Contributions to Which are Deductible Under Section 170 of the Code The Internal Revenue Service has revoked its determination that the organizations listed below qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986. Generally, the Service 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 Service is not precluded from disallowing a deduction for any contributions made after an organization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation. If on the other hand, a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on December 2, 2013, and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more particularly set forth 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. Corral of Comfort Horse Rescue, Inc. Palmdale, CA Positive Energy Foundation Lincoln, CA Rainy Day Foundation Washington, DC Sunrise Residential and Lifeskills Center Cincinnati, OH Thunder Air Museum Lancaster, CA Announcement 2013–49 Section 7428(c) Validation of Certain Contributions Made During Pendency of Declaratory Judgment Proceedings This announcement serves notice to potential donors that the organization listed below has recently filed a timely declaratory judgment suit under section 7428 of the Code, challenging revocation of its status as an eligible donee under section 170(c)(2). Protection under section 7428(c) of the Code begins on the date that the notice of revocation is published in the Internal Revenue Bulletin and ends on the date on which a court first determines that an organization is not described in section 170(c)(2), as more particularly set forth in section 7428(c)(1). In the case of individual contributors, the maximum amount of contributions protected during this period is limited to $1,000.00, with a husband and wife being treated as one contributor. This protection is not extended to any individual who was responsible, in whole or in part, for the acts or omissions of the organizations that were the basis for the revocation. This protection also applies (but without limitation as to amount) to organizations described in section 170(c)(2) which are exempt from tax under section 501(a). If the organization ultimately prevails in its declaratory judgment suit, deductibility of contributions would be subject to the normal limitations set forth under section 170. Dr. R. C. Samantha Roy Institute of Science and Technology, Inc. Green Bay, WI Michael Joy Fine Arts Scholarship Fund Victoria, TX Definition of Terms and Abbreviations Definition of Terms 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. 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. 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. 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. Numerical Finding List Numerical Finding List A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin 2013–26, dated June 24, 2013. Bulletins 2013–27 through 2013–49 Announcements Article Issue Link Page 2013-35 2013-27 I.R.B. 2013-27 46 2013-36 2013-33 I.R.B. 2013-33 142 2013-37 2013-34 I.R.B. 2013-34 155 2013-38 2013-36 I.R.B. 2013-36 185 2013-39 2013-35 I.R.B. 2013-35 167 2013-40 2013-38 I.R.B. 2013-38 226 2013-41 2013-40 I.R.B. 2013-40 322 2013-42 2013-44 I.R.B. 2013-44 464 2013-43 2013-46 I.R.B. 2013-46 524 2013-44 2013-47 I.R.B. 2013-47 545 2013-45 2013-47 I.R.B. 2013-45 546 2013-46 2013-48 I.R.B. 2013-48 593 2013-47 2013-49 I.R.B. 2013-49 620 2013-48 2013-49 I.R.B. 2013-49 620 2013-49 2013-49 I.R.B. 2013-49 621 Notices Article Issue Link Page 2013-41 2013-29 I.R.B. 2013-29 60 2013-42 2013-29 I.R.B. 2013-29 61 2013-43 2013-31 I.R.B. 2013-31 113 2013-44 2013-29 I.R.B. 2013-29 62 2013-45 2013-31 I.R.B. 2013-31 116 2013-46 2013-31 I.R.B. 2013-31 117 2013-47 2013-31 I.R.B. 2013-31 120 2013-48 2013-31 I.R.B. 2013-31 120 2013-49 2013-32 I.R.B. 2013-32 127 2013-50 2013-32 I.R.B. 2013-32 133 2013-51 2013-34 I.R.B. 2013-34 153 2013-52 2013-35 I.R.B. 2013-35 159 2013-53 2013-36 I.R.B. 2013-36 173 2013-54 2013-40 I.R.B. 2013-40 287 2013-55 2013-38 I.R.B. 2013-38 207 2013-56 2013-39 I.R.B. 2013-39 262 2013-57 2013-40 I.R.B. 2013-40 293 2013-58 2013-40 I.R.B. 2013-40 294 2013-59 2013-40 I.R.B. 2013-40 297 2013-60 2013-44 I.R.B. 2013-44 431 2013-61 2013-44 I.R.B. 2013-44 432 2013-62 2013-45 I.R.B. 2013-45 466 2013-63 2013-44 I.R.B. 2013-44 436 2013-64 2013-44 I.R.B. 2013-44 438 2013-65 2013-44 I.R.B. 2013-44 440 2013-66 2013-46 I.R.B. 2013-46 498 2013-67 2013-45 I.R.B. 2013-45 470 2013-68 2013-46 I.R.B. 2013-46 501 2013-69 2013-46 I.R.B. 2013-46 503 2013-70 2013-47 I.R.B. 2013-47 528 2013-71 2013-47 I.R.B. 2013-47 532 2013-72 2013-48 I.R.B. 2013-48 592 2013-73 2013-49 I.R.B. 2013-49 598 2013-75 2013-49 I.R.B. 2013-49 599 Proposed Regulations Article Issue Link Page REG-124148-05 2013-44 I.R.B. 2013-44 444 REG-161948-05 2013-44 I.R.B. 2013-44 449 REG-148659-07 2013-45 I.R.B. 2013-45 473 REG-132251-11 2013-37 I.R.B. 2013-37 191 REG-148812-11 2013-45 I.R.B. 2013-45 484 REG-111753-12 2013-40 I.R.B. 2013-40 302 REG-112815-12 2013-35 I.R.B. 2013-35 162 REG-114122-12 2013-35 I.R.B. 2013-35 163 REG-136630-12 2013-40 I.R.B. 2013-40 303 REG-140789-12 2013-32 I.R.B. 2013-32 136 REG-144990-12 2013-39 I.R.B. 2013-39 264 REG-110732-13 2013-43 I.R.B. 2013-43 405 REG-111837-13 2013-39 I.R.B. 2013-39 266 REG-113792-13 2013-38 I.R.B. 2013-38 211 REG-115300-13 2013-37 I.R.B. 2013-37 197 REG-120927-13 2013-49 I.R.B. 2013-49 618 Revenue Procedures Article Issue Link Page 2013-28 2013-27 I.R.B. 2013-27 28 2013-29 2013-33 I.R.B. 2013-33 141 2013-30 2013-36 I.R.B. 2013-36 173 2013-31 2013-38 I.R.B. 2013-38 208 2013-32 2013-28 I.R.B. 2013-28 55 2013-33 2013-38 I.R.B. 2013-38 209 2013-34 2013-43 I.R.B. 2013-43 398 2013-35 2013-47 I.R.B. 2013-47 537 2013-36 2013-49 I.R.B. 2013-49 602 2013-37 2013-49 I.R.B. 2013-49 612 Revenue Rulings Article Issue Link Page 2013-13 2013-32 I.R.B. 2013-32 124 2013-15 2013-28 I.R.B. 2013-28 47 2013-16 2013-40 I.R.B. 2013-40 275 2013-17 2013-38 I.R.B. 2013-38 201 2013-18 2013-37 I.R.B. 2013-37 186 2013-19 2013-39 I.R.B. 2013-39 240 2013-20 2013-40 I.R.B. 2013-40 272 2013-21 2013-43 I.R.B. 2013-43 396 2013-22 2013-46 I.R.B. 2013-46 496 2013-23 2013-48 I.R.B. 2013-48 590 2013-24 2013-49 I.R.B. 2013-49 594 Treasury Decisions Article Issue Link Page 9620 2013-27 I.R.B. 2013-27 1 9621 2013-28 I.R.B. 2013-28 49 9622 2013-30 I.R.B. 2013-30 64 9623 2013-30 I.R.B. 2013-30 73 9624 2013-31 I.R.B. 2013-31 86 9625 2013-34 I.R.B. 2013-34 147 9626 2013-34 I.R.B. 2013-34 149 9627 2013-35 I.R.B. 2013-35 156 9628 2013-36 I.R.B. 2013-36 169 9629 2013-37 I.R.B. 2013-37 188 9630 2013-38 I.R.B. 2013-38 199 9631 2013-38 I.R.B. 2013-38 205 9632 2013-39 I.R.B. 2013-39 241 9633 2013-39 I.R.B. 2013-39 227 9634 2013-40 I.R.B. 2013-40 272 9635 2013-40 I.R.B. 2013-40 273 9636 2013-43 I.R.B. 2013-43 331 9637 2013-44 I.R.B. 2013-44 427 9638 2013-46 I.R.B. 2013-46 487 9639 2013-48 I.R.B. 2013-48 588 9640 2013-48 I.R.B. 2013-48 548 Effect of Current Actions on Previously Published Items Finding List of Current Actions on Previously Published Items A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin 2013–26, dated June 24, 2013. Bulletins 2013–27 through 2013–49 Notices Old Article Action New Article Issue Link Page 2004-23 Clarified by Notice 2013-57 2013-40 I.R.B. 2013-40 293 2004-50 Clarified by Notice 2013-57 2013-40 I.R.B. 2013-40 293 2005-70 Obsoleted by T.D. 9633 2013-39 I.R.B. 2013-39 227 2006-40 Superseded by Notice 2013-68 2013-46 I.R.B. 2013-46 501 2009-41 Clarified and amplified by Notice 2013-70 ../../irb/2013-46_IRB/index.html 2009-53 Clarified and amplified by Notice 2013-70 ../../irb/2013-46_IRB/index.html 2012-74 Obsoleted by Notice 2013-51 2013-34 I.R.B. 2013-34 153 2013-16 Superseded by Notice 2013-55 2013-38 I.R.B. 2013-38 207 2013-29 Clarified by Notice 2013-60 2013-44 I.R.B. 2013-44 431 2013-36 Appendix updated by Notice 2013-55 2013-38 I.R.B. 2013-38 207 Superseded by Notice 2013-55 2013-38 I.R.B. 2013-38 207 2013-39 Amplified by Notice 2013-47 2013-31 I.R.B. 2013-31 120 2013-40 Amplified by Notice 2013-47 2013-31 I.R.B. 2013-31 120 Revenue Procedures Old Article Action New Article Issue Link Page 81-60 Modified by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 83-59 Modified by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 86-42 Modified by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 90-52 Modified by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 96-30 Modified by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 97-48 Situation 1 superseded, Situation 2 obsoleted by Rev. Proc. 2013-30 2013-36 I.R.B. 2013-36 173 2003-43 Modified and superseded by Rev. Proc. 2013-30 2013-36 I.R.B. 2013-36 173 2003-48 Obsoleted in part and superseded in part by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 2003-61 Superseded by Rev. Proc. 2013-34 2013-43 I.R.B. 2013-43 398 2004-34 Modified and clarified by Rev. Proc. 2013-29 2013-33 I.R.B. 2013-33 141 2004-48 Modified and superseded by Rev. Proc. 2013-30 2013-36 I.R.B. 2013-36 173 2004-49 Sections 4.01 & 4.02 modified and superseded, Section 4.03 obsoleted by Rev. Proc. 2013-30 2013-36 I.R.B. 2013-36 173 2007-44 Modified by Ann. 2013-37 2013-34 I.R.B. 2013-34 155 2007-62 Modified and superseded by Rev. Proc. 2013-30 2013-36 I.R.B. 2013-36 173 2009-25 Pilot program discontinued by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 2011-18 Modified and clarified by Rev. Proc. 2013-29 2013-33 I.R.B. 2013-33 141 2011-49 Modified by Ann. 2013-37 2013-34 I.R.B. 2013-34 155 2012-25 Obsoleted in part by Rev. Proc. 2013-28 2013-27 I.R.B. 2013-27 28 2013-1 Amplified and modified by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 2013-3 Amplified and modified by Rev. Proc. 2013-32 2013-28 I.R.B. 2013-28 55 Proposed Regulations Old Article Action New Article Issue Link Page 112815-12 Corrected by Ann. 2013-45 2013-47 I.R.B. 2013-47 546 Revenue Rulings Old Article Action New Article Issue Link Page 58-66 Amplified and clarified by Rev. Rul. 2013-17 2013-38 I.R.B. 2013-38 201 2012-33 Supplemented and superseded by Rev. Rul. 2013-23 2013-48 I.R.B. 2013-48 590 2013-17 Supplemented by Notice 2013-61 2013-44 I.R.B. 2013-44 432 Treasury Decisions Old Article Action New Article Issue Link Page 9610 Corrected by Ann. 2013-41 2013-40 I.R.B. 2013-40 322 9612 Corrected by Ann. 2013-35 2013-27 I.R.B. 2013-27 46 9622 Corrected by Ann. 2013-39 2013-35 I.R.B. 2013-35 167 9627 Corrected by Ann. 2013-44 2013-37 I.R.B. 2013-37 545 INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/. CUMULATIVE BULLETINS The contents of the weekly Bulletins were consolidated semiannually into permanent, indexed, Cumulative Bulletins through the 2008–2 edition. INTERNAL REVENUE BULLETINS ON CD-ROM Internal Revenue Bulletins are available annually as part of Publication 1796 (Tax Products CD-ROM). The CD-ROM can be purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders) or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January. We Welcome Comments About the Internal Revenue Bulletin If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the IRS Bulletin Unit, SE:W:CAR:MP:P:SPA, Washington, DC 20224.