Insurance companies; interest rate tables. Prevailing state assumed interest rates are provided for the determination of reserves under section 807 of the Code for contracts issued in 2012 and 2013. Rev. Rul. 92-19 supplemented in part.

This ruling holds that Eurex Deutschland, which is a regulated exchange of Germany, is a qualified board or exchange within the meaning of section 1256(g)(7)(C) of the Code.

Adjustment of applicable federal rates. This notice solicits comments regarding changes to the method used to determine adjusted applicable federal rates under section 1288(b) of the Code and the adjusted federal long-term rate under section 382(f) of the Code. It provides interim guidance describing modifications to the current method that will be in effect until further guidance is issued.

This notice provides for the waiver of additions to tax under section 6654(a) of the Code for underpayment of estimated taxes for certain farmers and fishermen due to the delayed start for filing 2012 tax year returns.

This document provides relief from certain requirements in section 142(d) of the Code to issuers of tax-exempt bonds that approve the housing of individuals displaced due to the effects of Hurricane Sandy (“displaced individuals”) in residential rental projects (“Projects”) financed with tax-exempt bonds under section 142(d).

This announcement contains corrections to Revenue Procedure 2013-6, 2013-1 I.R.B. 198, as published on January 2, 2013. In particular, this announcement clarifies that applications for determination letters should continue to be submitted to the Covington, KY address in section 6.15 of Rev. Proc. 2013-6. Comments submitted by interested parties in connection with the determination letter process should be sent to a different address in Cincinnati, OH in section 17.02 of Rev. Proc. 2013-6. Rev. Proc. 2013-6 corrected.

This notice provides for the waiver of additions to tax under section 6654(a) of the Code for underpayment of estimated taxes for certain farmers and fishermen due to the delayed start for filing 2012 tax year returns.

For purposes of § 807(d)(4) of the Internal Revenue Code, for taxable years beginning after December 31, 2011, this ruling supplements the schedules of prevailing state assumed interest rates set forth in Rev. Rul. 92-19, 1992-1 C.B. 227. This information is to be used by insurance companies in computing their reserves for (1) life insurance and supplementary total and permanent disability benefits, (2) individual annuities and pure endowments, and (3) group annuities and pure endowments. As § 807(d)(2)(B) requires that the interest rate used to compute these reserves be the greater of (1) the applicable federal interest rate, or (2) the prevailing state assumed interest rate, the table of applicable federal interest rates in Rev. Rul. 92-19 is also supplemented.

Following are supplements to schedules A, B, C, and D to Part III of Rev. Rul. 92-19, providing prevailing state assumed interest rates for insurance products with different features issued in 2012 and 2013, and a supplement to the table in Part IV of Rev. Rul. 92-19, providing the applicable federal interest rates under § 807(d) for 2012 and 2013. This ruling does not supplement Parts I and II of Rev. Rul. 92-19.

This is the twenty-first supplement to the interest rates provided in Rev. Rul. 92-19. Earlier supplements were published in Rev. Rul. 93-58, 1993-2 C.B. 241 (interest rates for insurance products issued in 1992 and 1993); Rev. Rul. 94-11, 1994-1 C.B. 196 (1993 and 1994); Rev. Rul. 95-4, 1995-1 C.B. 141 (1994 and 1995); Rev. Rul. 96-2, 1996-1 C.B. 141 (1995 and 1996); Rev. Rul. 97-2, 1997-1 C.B. 134 (1996 and 1997); Rev. Rul. 98-2, 1998-1 C.B. 259 (1997 and 1998); Rev. Rul. 99-10, 1999-1 C.B. 671 (1998 and 1999); Rev. Rul. 2000-17, 2000-1 C.B. 842 (1999 and 2000); Rev. Rul. 2001-11, 2001-1 C.B. 780 (2000 and 2001); Rev. Rul. 2002-12, 2002-1 C.B. 624 (2001 and 2002); Rev. Rul. 2003-24, 2003-1 C.B. 557 (2002 and 2003); Rev. Rul. 2004-14, 2004-1 C.B. 511 (2003 and 2004); Rev. Rul. 2005-29, 2005-1 C.B. 1080 (2004 and 2005); Rev. Rul. 2006-25, 2006-1 C.B. 882 (2005 and 2006); Rev. Rul. 2007-10, 2007-1 C.B. 660 (2006 and 2007); Rev. Rul. 2008-19, 2008-1 C.B. 669 (2007 and 2008); Rev. Rul. 2009-3, 2009-5 I.R.B. 382 (2008 and 2009); Rev. Rul. 2010-7, 2010-8 I.R.B. 417 (2009 and 2010); Rev. Rul. 2011-23, 2011-43 I.R.B. 585 (2010 and 2011); and Rev. Rul. 2012-6, 2012-6 I.R.B. 349 (2011 and 2012).

Rev. Rul. 92-19 is supplemented by the addition to Part III of that ruling of prevailing state assumed interest rates under § 807 for certain insurance products issued in 2012 and 2013 and is further supplemented by an addition to the table in Part IV of Rev. Rul. 92-19 listing of applicable federal interest rates. Parts I and II of Rev. Rul. 92-19 are not affected by this ruling.

The principal author of this revenue ruling is Linda K. Boyd of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this revenue ruling, contact her at (202) 622-3970 (not a toll-free call).

Is Eurex Deutschland, which is a regulated exchange of Germany, a qualified board or exchange within the meaning of section 1256(g)(7)(C) of the Internal Revenue Code?

Eurex Deutschland is a regulated exchange of Germany. On August 10, 1999, the Commodity Futures Trading Commission (CFTC) issued—and on October 25, 2004, and April 25, 2006, it amended—a letter that granted Eurex Deutschland no-action relief. This relief allowed United States members to trade through Eurex Deutschland’s electronic trading system, notwithstanding that the CFTC had not designated Eurex Deutschland as a contract market pursuant to sections 5 and 5a of the Commodity Exchange Act.

On December 23, 2011, the CFTC published final rules regarding the registration with the CFTC of foreign boards of trade (FBOTs), including those with existing no-action relief (“the CFTC FBOT registration system”). See Registration of Foreign Boards of Trade, 76 Fed. Reg. 80674 (Dec. 23, 2011), codified at 17 CFR Part 48. The effective date for the final rules was February 21, 2012. Under the CFTC FBOT registration system, the CFTC may issue an Order of Registration to an FBOT, allowing the FBOT to provide direct access to its electronic trading and order matching system from the United States. The CFTC FBOT registration system replaced the CFTC’s no-action relief system. Under 17 CFR 48.6(c), an FBOT with an existing no-action letter (like Eurex Deutschland) may continue to rely on the letter until the CFTC either revokes the letter or grants that FBOT an Order of Registration under the new system.

An FBOT’s status under the CFTC no-action relief system and the CFTC FBOT registration system is posted online at: http://sirt.cftc.gov/sirt/sirt.aspx?Topic=ForeignTerminalRelief.

Section 1256(g)(7) provides that the term “qualified board or exchange” means:

The Internal Revenue Service determines that Eurex Deutschland, which is a regulated exchange of Germany, is a qualified board or exchange within the meaning of section 1256(g)(7)(C) as long as—

Under the authority of section 7805(b)(8) of the Code, this revenue ruling is effective for Eurex Deutschland Contracts (futures contracts and futures contract options that qualify as section 1256 contracts) that are entered into on or after March 1, 2013.

A change in the treatment of Eurex Deutschland Contracts to comply with this revenue ruling is a change in method of accounting within the meaning of sections 446 and 481 and the regulations thereunder. The Commissioner grants consent to taxpayers to change to the section 1256 mark-to-market method for the first taxable year during which the taxpayer holds a Eurex Deutschland Contract that was entered into on or after March 1, 2013. Such a taxpayer need not file a Form 3115, Application for Change in Accounting Method, and Eurex Deutschland Contracts that were entered into before March 1, 2013 will not be covered by the change in method for which consent is granted. Because the change is being made on a “cut-off” basis, there is no potential omission or duplication of income or deductions, and therefore no adjustment under section 481 is required.

The principal author of this revenue ruling is Shawn Tetelman of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue ruling, contact Ms. Tetelman at (202) 622-3930 (not a toll-free call).

The Treasury Department and the Internal Revenue Service (IRS) are reconsidering the method used to determine the adjusted applicable Federal rates (adjusted AFRs) under section 1288(b) of the Internal Revenue Code (Code) and the adjusted Federal long-term rate under section 382(f)(2). This notice requests comments from the public on what modifications should be made to the current method of determining such rates. To limit unintended effects of the current method under certain market conditions, this notice also provides interim guidance modifying the current method, which will apply pending future guidance.

The IRS and Treasury Department request comments on the possible modifications to the method by which adjusted AFRs and the adjusted Federal long-term rates are determined. Comments must be submitted by April 26, 2013. All materials submitted will be available for public inspection and copying. Comments should be submitted to Internal Revenue Service, CC:PA:LPD:PR (Notice 2013-4), Room 5203, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may also be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to the Courier’s Desk, 1111 Constitution Avenue, NW, Washington, DC 20224, Attn: CC:PA:LPD:PR (Notice 2013-4), Room 5203. Submissions may also be sent electronically via the internet to the following e-mail address: Notice.Comments@irscounsel.treas.gov. Include the notice number (Notice 2013-4) in both the subject line of the email and the body of the comment.

Until the IRS and Treasury Department issue further guidance, the adjusted AFRs, the adjusted Federal long-term rate, and the long-term tax-exempt rate will continue to be determined using the adjustment factor in the manner described above under “Adjustment of Rates,” except that the adjustment factor shall equal one for any month in which (A) the adjustment factor would otherwise exceed one, or (B) the denominator of the adjustment factor would otherwise be zero or a negative number.

The modifications described above will be reflected in the monthly revenue rulings in which the adjusted AFRs and the adjusted Federal long-term rate are published, beginning with the rates for March 2013.

The principal author of this notice is Steven Harrison of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this notice, contact Mr. Harrison at (202) 622-3930 (not a toll-free call).

Generally, the Code requires individuals to pay federal income tax as they earn income. To the extent these taxes are not withheld from an individual’s wages, an individual taxpayer must pay estimated taxes.

Section 6654(c) and (d)(1)(A) of the Code provides that, in general, estimated taxes are required in four installments and the amount of any required installment shall be 25 percent of the “required annual payment.” Section 6654(a) provides for an addition to tax where a taxpayer fails to make a sufficient and timely payment of estimated tax.

Section 6654(i) provides a special rule for farmers and fisherman. Under section 6654(i)(1)(A), only one installment payment is required to be made. Under section 6654(i)(1)(B), the installment is due on January 15 of the following taxable year. Section 6654(i)(1)(D) provides that qualifying farmers and fishermen who choose not to make the required estimated tax installment payment are not subject to an estimated tax addition to tax if they file their returns and pay the full amount of tax due by March 1 of the following taxable year. Under section 6654(i)(2), a taxpayer qualifies as a farmer or fisherman for the 2012 tax year if at least two-thirds of the taxpayer’s total gross income was from farming or fishing in either 2011 or 2012.

Section 6654(e)(3) authorizes the Internal Revenue Service to waive section 6654 penalties for underpayments of estimated tax in unusual circumstances to the extent its imposition would be against equity and good conscience.

On January 2, 2013, the American Taxpayer Relief Act of 2012 (ATRA), Pub. L. No. 112-240, 126 Stat. 2313, was enacted into law. The ATRA affected several tax forms that are often filed by farmers and fishermen, including the Form 4562, Depreciation and Amortization (Including Information on Listed Property). Revision of these forms will require extensive programming and testing of IRS systems, which will delay the IRS’s ability to accept and process these forms. These delays may affect the ability of many farmers and fishermen to file their 2012 tax year return by March 1, 2013.

Pursuant to the authority in section 6654(e)(3), the Service will waive the section 6654 addition to tax for the 2012 tax year for farmers and fishermen who miss the March 1 deadline if they file their return and pay in full any tax due by April 15, 2013. Farmers and fishermen requesting this addition to tax waiver must attach Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to their tax return. The form can be submitted electronically or on paper. The taxpayer’s name and identifying number should be entered at the top of the form and the waiver box (Part I, Box A) should be checked. The rest of the form should be left blank. Forms, instructions, and other tax assistance are available on IRS.gov. The IRS toll-free number for general tax questions is 1-800-829-1040.

The principal author of this notice is Matthew S. Cooper of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this notice, contact Matthew S. Cooper on 202-622-3400 (not a toll-free call).

The President issued major disaster declarations for several States because of the devastation caused by Hurricane Sandy. The President issued the declarations under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. Subsequently, the Federal Emergency Management Agency (“FEMA”) designated jurisdictions in several of these States for Individual Assistance (as FEMA uses that term). Because of the widespread damage to housing caused by Hurricane Sandy, the Service has determined that issuers can approve the use of qualified residential rental projects described in § 142(d) to temporarily house displaced individuals, as defined below, regardless of their income, in accordance with this notice. The Service has determined that the projects to which this approval may be given can be located in any State, regardless of whether a major disaster declaration with Individual Assistance has been issued for that State.

Consistent with Notice 2012-68, the term “displaced individual” means, for purposes of this notice, an individual who resided in a jurisdiction designated for Individual Assistance and who has been displaced because his or her residence was destroyed or damaged as a result of the devastation caused by Hurricane Sandy.

The Service has determined that it is appropriate to temporarily suspend certain income limitation requirements under § 142(d) that apply to qualified residential rental projects financed with tax-exempt bonds issued by a qualified issuer under § 103 (“Issuer”). The suspension, described in Section 3 below, is available to both qualified residential rental projects under § 142(d) that are not subject to any LIHTC-related requirements (“Bond Projects”) and to qualified residential rental projects under § 142(d) that are also subject to LIHTC-related requirements (“Bond/LIHTC Projects”). For purposes of this notice, the term “Project” refers to either a Bond Project or a Bond/LIHTC Project.

.01 Issuer Approval for Relief. If an Issuer that issued exempt facility bonds for a Project desires to allow the use of the Project to temporarily house displaced individuals, the Issuer must approve that use and must determine an appropriate period for the temporary housing, not to extend beyond November 30, 2013 (“Temporary Housing Period”). If a Bond/LIHTC Project subject to both Notice 2012-68 and this notice receives approval, for purposes of § 42, for a Temporary Housing Period and for the suspension of income limitations from a State housing agency (as contemplated in Section IV(2) of Notice 2012-68) and that agency is not the Issuer, then the income limitations under § 142(d) for that Bond/LIHTC Project are suspended only if the project also receives the Issuer’s consent for a suspension. An Issuer that chooses to provide that consent must adopt for purposes of § 142(d) the same Temporary Housing Period that the agency adopted for purposes of § 42.

.02 Protection of Tenants. Existing tenants in a Project whose income is at or below an applicable income limitation under § 142(d) cannot be evicted or have their tenancy terminated as a result of efforts to provide temporary housing for displaced individuals.

.03 Certification and Recordkeeping Requirements. The Project operator must comply with the certification and recordkeeping requirements in Section 4 of this notice. For certification and recordkeeping requirements under § 42, see Notice 2012-68.

.04 Rent Restrictions. To the extent such rent restrictions are applicable, rents for the low-income units that house displaced individuals must not exceed the lesser of—

(1) the maximum gross rent for that unit under § 142(d)(4)(B); or

(2) the maximum gross rent for that unit under § 42(g)(2).

.05 Project Must Meet All Remaining Requirements. Except as expressly provided in this notice, a Project continues to be subject to all other rules and requirements of § 142(d) and § 103.

.01 Qualified Project Period. Only a unit in a Project occupied by a non-displaced individual counts for purposes of determining the beginning of the qualified project period under § 142(d)(2)(A). Thus, only non-displaced individuals are counted for determining the 1^st day on which 10 percent of the residential units in a Project are occupied under § 142(d)(2)(A). However, occupancy of a unit by any tenant (whether a displaced individual or a non-displaced individual) in a Project counts for purposes of determining the end of the qualified project period under § 142(d)(2)(A)(i). If occupancy by a displaced individual in a Project causes any termination of assistance with respect to the Project under section 8 of the United States Housing Act of 1937, then that termination is disregarded for determining when the qualified project period ends under § 142(d)(2)(A)(iii).

.02 Satisfaction of the Non-Transient Use Requirement. The occupancy of a unit in a Project by a displaced individual during the Temporary Housing Period is treated as satisfying the non-transient use requirement applicable to qualified residential rental projects described in § 142(d). See § 1.103-8(b)(4); see also Notice 2012-68 for suspension of the non-transient use requirement under § 42(i)(3)(B)(i).

.03 Income Qualification of Units in Bond Projects during Temporary Housing Period. A unit in a Bond Project occupied by a displaced individual during the Temporary Housing Period retains the income status it had immediately before that occupancy, regardless of whether the unit was a market-rate unit, a unit occupied by a tenant who met an applicable income limit, a designated low-income unit, or a never previously occupied unit. See Rev. Proc. 2004-39, 2004-29 I.R.B. 49 (treating never previously occupied units as unavailable). This means, for example, that if a unit in a Bond Project had been designated as a low-income unit or rented to an individual whose income was at or below an applicable income limit or was a market-rate unit or an unavailable unit, then the unit remains as such while occupied by a displaced individual during the Temporary Housing Period regardless of the occupancy by, or income of, the displaced individual. Thus, the fact that a unit becomes occupied by a displaced individual does not affect compliance with the 20-50 test or 40-60 test of § 142(d)(1)(A) and (B) (or the 25-60 test under the special rule in § 142(d)(6)).

Under § 142(d)(3)(B), if the income of a low-income resident of a Project rises above a specified percentage of the applicable income limit, then, for that resident’s income to continue to be treated as not exceeding the applicable income limit, the next residential unit meeting certain criteria to become available in the same Project must be occupied by a new resident whose income does not exceed the applicable income limit (the “next available unit rule”). For purposes of determining compliance with the next available unit rule, an operator of a Bond Project may disregard the new occupancy of units during the Temporary Housing Period by displaced individuals, and apply the rule solely based on new occupancy by persons who are not displaced individuals. The operator may, however, take into account a displaced individual’s occupancy for purposes of § 142(d)(3)(B) if the operator obtains sufficient evidence that the displaced individual’s income does not exceed the applicable income limit.

.04 Income Qualifications of Units in Bond/LIHTC Projects During the Temporary Housing Period. The income status of a unit and the income qualification of the occupant of a unit for purposes of § 142(d) in a Bond/LIHTC Project occupied by a displaced individual during the Temporary Housing Period shall be treated the same as they are for purposes of § 42 under Notice 2012-68. For purposes of determining compliance with the next available unit rule, an operator of a Bond/LIHTC Project may disregard the new occupancy of units during the Temporary Housing Period by displaced individuals, and apply the rule solely based on new occupancy by persons who are not displaced individuals. The operator may, however, take into account a displaced individual’s occupancy for purposes of § 142(d)(3)(B) if the operator obtains sufficient evidence that the displaced individual’s income does not exceed the applicable income limit.

.05 Income Qualifications when Temporary Housing Period Ends. After the end of the Temporary Housing Period, the status as a displaced individual of an occupant remaining in a unit in a Project will be disregarded and the status of the unit occupied by such individual and the income of such individual will be re-evaluated as though the formerly displaced individual commenced occupancy of the unit on the day immediately following the end of the Temporary Housing Period. Thus, if the displaced individual remains in the unit, the unit will be treated as occupied for all purposes of § 142(d) and the income of the displaced individual will be used for determining compliance with the requirements of § 142(d). If non-compliance relates to continued occupancy of the unit after the Temporary Housing Period by an occupant who was a displaced individual during the Temporary Housing Period, a 60-day period is allowed for correction.

In addition to any information and certifications required by § 142(d)(7), Project operators must maintain and certify certain information concerning each displaced individual temporarily housed in the Project. The records must contain the following information: the name of the displaced individual, the address of the damaged residence of the displaced individual, the displaced individual’s social security number, and a statement signed under penalties of perjury by the displaced individual that, because of damage to the individual’s residence in a jurisdiction designated for Individual Assistance by FEMA as a result of the devastation caused by Hurricane Sandy, the individual requires temporary housing. In addition, the Project operator must keep accurate records of the Issuer’s approval of the Project’s use for displaced individuals and the approved Temporary Housing Period and the dates during which displaced individuals occupied units in the Projects.

The recordkeeping described under this paragraph must be included as part of the books and records of the Project operator and also must be maintained in a manner that is consistent with any compliance monitoring process imposed by § 142(d).

To be consistent with Notice 2012-68, this notice is effective as of October 22, 2012.

The collection of information contained in this notice has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-2237.

A Federal agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

The collection of information in this notice is in the section entitled “Section 4: CERTIFICATIONS AND RECORDKEEPING.” This information is required to enable the Service to verify whether individuals are displaced as a result of the devastation caused by Hurricane Sandy and thus warrant temporary housing in vacant units in certain Projects. The collection of information is required to obtain a benefit. The likely respondents are individuals and businesses.

The estimated total annual recordkeeping burden is 1750 hours.

The estimated annual burden per recordkeeper is approximately 30 minutes. The estimated number of recordkeepers is 3500.

Books or records relating to a collection of information must be retained as long as their contents may become material to the administration of the internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

The principal author of this notice is Timothy L. Jones of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this notice, contact Mr. Jones at (202) 622-3980 (not a toll-free call).

This announcement contains corrections to Revenue Procedure 2013-6, as published on January 2, 2013 (2013-1 I.R.B. 198). In particular, this announcement clarifies that applications for determination letters should continue to be submitted to the Covington, KY address in section 6.15 of Rev. Proc. 2013-6. Comments submitted by interested parties in connection with the determination letter process should be sent to a different address in Cincinnati, OH in section 17.02 of Rev. Proc. 2013-6.

Correction 1:

The third sentence of section 17.02, relating to comments submitted by interested parties, contains a reference to an incorrect address. A portion of the third sentence is revised to read as follows:

“Such comments must be in writing, signed by the interested parties or by an authorized representative of such parties (as provided in section 9.02(11) of Rev. Proc. 2013-4), addressed to:

Comments must contain the following information:”

Correction 2:

The reference to the address in section 17.03(2)(e) and section 18.03(4) is changed from “Section 6.17” to “Section 6.15”.

Correction 3:

The Exhibit: Sample Notice to Interested Parties, Item 7, contains an incorrect address to submit applications for determination letters. The correct address is as follows: