Source: https://www.irs.gov/irb/2013-49_IRB
Timestamp: 2019-12-07 03:03:30
Document Index: 726730595

Matched Legal Cases: ['§ 846', '§ 832', '§ 415', '§ 415', '§ 215', '§ 415', '§ 415', '§ 215', '§ 415', '§ 415', '§ 415', '§ 415', '§ 402', '§ 402', '§ 401', '§ 416', '§ 409', '§ 401', '§ 401', '§ 408', '§ 457', '§ 1', '§ 1', '§ 1', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 219', '§ 219', '§ 219', '§ 219', '§ 408', '§ 408', '§ 408', '§ 430', '§ 430', '§ 430', '§ 431', '§ 412', '§ 417', '§ 846', '§ 846', '§ 846', '§ 846', '§ 832', '§ 832', '§ 846', '§ 831', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1', '§1']

Internal Revenue Bulletin: 2013-49
Rev. Rul. 201324
Notice 201373
Notice 201375
Rev. Proc. 201336
Rev. Proc. 201337
REG12092713
Announcement 201347
Announcement 201348
Announcement 201349
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.
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).
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.
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.
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
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
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 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 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 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.
[1] Based on News Release IR-2013-86 dated October 31, 2013
Notice 2013–75
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:
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
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.
November 2013 3.45 3.10 3.62
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:
1.24 4.47 5.52
Monthly Yield Curve for October 2013
Derived from October 2013 Data
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
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.
.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.
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.
Estimated Cumulative Losses Paid
Estimated Losses Paid Each Year
Unpaid Losses at Year End
Discounted Unpaid Losses at Year End
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.
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.
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
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.
2013 22.8449 22.8449 77.1551 74.9598 97.1547
2014 55.8585 33.0137 44.1415 43.2107 97.8913
2015 and later years 22.0707 22.0707 21.8362 98.9372
2013 6.2515 6.2515 93.7485 90.9767 97.0433
2014 43.0154 36.7639 56.9846 55.7829 97.8913
2015 and later years 28.4923 28.4923 28.1895 98.9372
Medical Professional Liability — Claims-Made
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
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
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
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.
2013 69.0731 69.0731 30.9269 30.1469 97.4781
2014 85.5169 16.4438 14.4831 14.1777 97.8913
2015 and later years 7.2415 7.2415 7.1646 98.9372
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
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.
2013 54.6589 54.6589 45.3411 44.3679 97.8536
2014 84.2314 29.5725 15.7686 15.4360 97.8913
2015 and later years 7.8843 7.8843 7.8005 98.9372
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
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.
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
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.
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
2023 and later years 0.1827 0.1803 0.1783 98.9372
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
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
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
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.
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
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.
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
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.
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
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.
2013 55.6145 55.6145 44.3855 43.5814 98.1884
2014 89.3328 33.7182 10.6672 10.4423 97.8913
2015 and later years 5.3336 5.3336 5.2769 98.9372
2013 85.4101 85.4101 14.5899 14.4204 98.8387
2014 99.5388 14.1287 0.4612 0.4515 97.8913
2015 and later years 0.2306 0.2306 0.2281 98.9372
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
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.
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
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.
.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.
.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.
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.
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.
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.
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
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.
2013 96.6294
2013 96.2442
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
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.
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
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.
2013 97.1217
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
2013 97.6897
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
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
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
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
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.
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
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 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.
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
2023 98.4227
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.
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
2013 97.2489
2013 96.8834
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
2023 96.9634
2024 97.9719
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.
REG–120927–13
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).
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 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).
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.
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.
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.
(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.
Services and Enforcement..
(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).
Announcement 2013–48
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.
Positive Energy Foundation
Sunrise Residential and Lifeskills Center
Thunder Air Museum
Announcement 2013–49
Dr. R. C. Samantha Roy Institute of Science and Technology, Inc.
Michael Joy Fine Arts Scholarship Fund
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
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
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
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
2013-31 2013-38 I.R.B. 2013-38 208
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
2013-16 2013-40 I.R.B. 2013-40 275
2013-17 2013-38 I.R.B. 2013-38 201
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
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
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.
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
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
2003-61 Superseded by Rev. Proc. 2013-34 2013-43 I.R.B. 2013-43 398
112815-12 Corrected by Ann. 2013-45 2013-47 I.R.B. 2013-47 546
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
9610 Corrected by Ann. 2013-41 2013-40 I.R.B. 2013-40 322
9627 Corrected by Ann. 2013-44 2013-37 I.R.B. 2013-37 545