Source: https://www.irs.gov/irb/2017-13_IRB
Timestamp: 2019-01-17 09:03:48
Document Index: 451232768

Matched Legal Cases: ['§ 417', '§ 430', 'art 39', '§ 430', '§ 431', '§ 412', '§ 431', '§ 417']

Internal Revenue Bulletin: 2017-13
Notice 201721
Notice 201722
Rev. Proc. 201726
Notice 2017–21 Notice 2017–21
Attached is Notice 2017–21, which provides for adjustments to the limitation on housing expenses for purposed of section 911 of the Internal Revenue Code. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States. Further, if the limitation on housing expenses is higher for taxable year 2017 than the adjusted limitations on housing expenses provided in Notice 2016–21, qualified taxpayers may apply the adjusted limitations for taxable year 2017 to their 2016 taxable year.
Rev. Proc. 2017–26 Rev. Proc. 2017–26
Attached is Revenue Procedure 2017–27, which provides a waiver for the time requirements for individuals electing to exclude their foreign earned income who must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. Rev. Proc. 2017–26 adds South Sudan for tax year 2016 for which the minimum time requirements are waived. Generally, U.S. citizens or resident aliens living and working abroad are taxed on their worldwide income. However, if their tax home is in a foreign country and they meet either the bona fide residence test or the physical presence test, they can choose to exclude from their income a limited amount of their foreign earned income ($101,300 for 2016). Both the bona fide residence test and the physical presence test contain minimum time requirements.
Notice 2017–22 Notice 2017–22
This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for March 2017 used under § 417(e)(3)(D), the 24-month average segment rates applicable for March 2017, and the 30-year Treasury rates. These rates reflect the application of § 430(h)(2)(C)(iv), which was added by the Moving Ahead for Progress in the 21st Century Act, Public Law 112–141 (MAP-21) and amended by section 2003 of the Highway and Transportation Funding Act of 2014 (HATFA).
Notice 2017–21
Determination of Housing Cost Amounts Eligible for Exclusion or Deduction for 2017
This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for specific locations for 2017. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.
Section 911(a) allows a qualified individual to elect to exclude from gross income the foreign earned income and housing cost amount of such individual. The term “housing cost amount” is generally the total of the housing expenses for the taxable year minus a base housing amount. See section 911(c)(1). For this purpose, the housing expenses taken into account are limited to an amount that is tied to the maximum foreign earned income exclusion. Specifically, the limit on such housing expenses equals 30 percent (adjusted as may be provided under the Secretary’s authority under section 911(c)(2)(B)) of the maximum exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the taxable year. See section 911(c)(2)(A). Thus, under this general limitation, a qualified individual whose entire taxable year is within the applicable period is limited to maximum housing expenses of $30,630 ($102,100 x .30) for 2017.
Similarly, the computation of the base housing amount is also tied to the maximum foreign earned income exclusion. Specifically, the base housing amount is 16% of the maximum exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the taxable year. See sections 911(c)(1)(B) and 911(d)(1). Assuming that the entire taxable year of a qualified individual is within the applicable period, the base housing amount for 2017 is $16,336 ($102,100 x .16). Section 911(c)(2)(B) authorizes the Secretary to issue regulations or other guidance to adjust the percentage under section 911(c)(2)(A)(i) (which determines the limit on housing expenses) based on geographic differences in housing costs relative to housing costs in the United States. Pursuant to this authority, the Internal Revenue Service (IRS) and the Treasury Department have published annual notices concerning the limitation on the section 911 housing cost amounts since the 2006 taxable year.
SECTION 3. TABLE OF ADJUSTED LIMITATIONS FOR 2017
The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $30,630) for 2017.
Australia Melbourne 31,600 86.58
Australia Perth 33,800 92.60
Australia Sydney 63,700 174.52
Belgium Brussels 38,700 106.03
Belgium Gosselies 33,800 92.60
Belgium Mons 33,800 92.60
Belgium SHAPE/Chievres 33,800 92.60
Canada Montreal 51,300 140.55
Canada Toronto 45,600 124.93
Chile Santiago 40,600 111.23
France Garches 66,400 181.92
France Lyon 36,700 100.55
France Marseille 35,800 98.08
France Paris 66,400 181.92
France Sevres 66,400 181.92
France Suresnes 66,400 181.92
France Versailles 66,400 181.92
Germany Babenhausen 32,600 89.32
Germany Baumholder 32,300 88.49
Germany Berlin 39,800 109.04
Germany Birkenfeld 32,300 88.49
Germany Boeblingen 39,500 108.22
Germany Darmstadt 32,600 89.32
Germany Frankfurt am Main 34,000 93.15
Germany Gelnhausen 41,000 112.33
Germany Grafenwoehr 32,900 90.14
Germany Hanau 41,000 112.33
Germany Idar-Oberstein 32,300 88.49
Germany Ingolstadt 46,500 127.40
Germany Kaiserslautern, Landkreis 39,800 109.04
Germany Karlsruhe 31,400 86.03
Germany Koblenz 32,000 87.67
Germany Ludwigsburg 39,500 108.22
Germany Mainz 43,400 118.90
Germany Munich 46,500 127.40
Germany Nellingen 39,500 108.22
Germany Neubruecke 32,300 88.49
Germany Ober Ramstadt 32,600 89.32
Germany Pfullendorf 32,000 87.67
Germany Pirmasens 39,800 109.04
Germany Sembach 39,800 109.04
Germany Stuttgart 39,500 108.22
Germany Vilseck 32,900 90.14
Germany Wiesbaden 43,400 118.90
Germany Zweibrueken 39,800 109.04
Germany All cities other than Augsburg, Babenhausen, Bad Aibling, Bad Kreuznach, Bad Nauheim, Baumholder, Berchtesgaden, Berlin, Birkenfeld, Boeblingen, Bonn, Bremen, Bremerhaven, Butzbach, Cologne, Darmstadt, Delmenhorst, Duesseldorf, Erlangen, Flensburg, Frankfurt am Main, Friedberg, Fuerth, Garlstedt, Garmisch-Partenkirchen, Geilenkirchen, Gelnhausen, Germersheim, Giebelstadt, Grafenwoehr, Grefrath, Greven, Gruenstadt, Hamburg, Hanau, Handorf, Hannover, Heidelberg, Heilbronn, Herongen, Idar-Oberstein, Ingolstadt, Kaiserslautern, Landkreis, Kalkar, Karlsruhe, Kerpen, Kitzingen, Koblenz, Leimen, Leipzig, Ludwigsburg, Mainz, Mannheim, Mayen, Moenchen-Gladbach, Muenster, Munich, Nellingen, Neubruecke, Noervenich, Nuernberg, Ober Ramstadt, Oberammergau, Osterholz-Scharmbeck, Pirmasens, Rheinau, Rheinberg, Schwabach, Schwetzingen, Seckenheim, Sembach, Stuttgart, Twisteden, Vilseck, Wahn, Wertheim, Wiesbaden, Worms, Wuerzburg, Zirndorf, and Zweibrueken 32,000 87.67
Greece Athens 32,500 89.04
Greece Elefsis 32,500 89.04
Greece Ellinikon 32,500 89.04
Greece Mt. Parnis 32,500 89.04
Greece Mt. Pateras 32,500 89.04
Greece Nea Makri 32,500 89.04
Greece Piraeus 32,500 89.04
Greece Tanagra 32,500 89.04
Holy See, The Holy See, The 44,200 121.10
Ireland Dublin 38,400 105.21
Italy Milan 66,000 180.82
Italy Naples 44,300 121.37
Italy Parma 33,500 91.78
Italy Pordenone-Aviano 34,300 93.97
Italy Rome 44,200 121.10
Italy Turin 33,100 90.68
Italy Vicenza 36,000 98.63
Japan Atsugi 38,200 104.66
Japan Camp Zama 38,200 104.66
Japan Chiba-Ken 38,200 104.66
Japan Fussa 38,200 104.66
Japan Haneda 38,200 104.66
Japan Kanagawa-Ken 38,200 104.66
Japan Machidi-Shi 38,200 104.66
Japan Okinawa Prefecture 53,000 145.21
Japan Sagamihara 38,200 104.66
Japan Saitama-Ken 38,200 104.66
Japan Sasebo 32,000 87.67
Japan Tachikawa 38,200 104.66
Japan Tokyo 85,700 234.79
Japan Tokyo-to 38,200 104.66
Japan Yokohama 47,000 128.77
Japan Yokosuka 44,900 123.01
Japan Yokota 36,500 100.00
Korea Camp Market 54,900 150.41
Korea K-16 54,900 150.41
Korea Kimpo Airfield 54,900 150.41
Korea Munsan 31,500 86.30
Korea Osan AB 34,300 93.97
Korea Pyongtaek 39,200 107.40
Korea Seoul 54,900 150.41
Korea Suwon 54,900 150.41
Korea Taegu 33,400 91.51
Luxembourg Luxembourg 36,200 99.18
Netherlands Brunssum 32,400 88.77
Netherlands Eygelshoven 32,400 88.77
Netherlands Hague, The 52,700 144.38
Netherlands Heerlen 32,400 88.77
Netherlands Hoensbroek 32,400 88.77
Netherlands Hulsberg 32,400 88.77
Netherlands Kerkrade 32,400 88.77
Netherlands Landgraaf 32,400 88.77
Netherlands Maastricht 32,400 88.77
Netherlands Papendrecht 31,700 86.85
Netherlands Rotterdam 31,700 86.85
Netherlands Schaesburg 32,400 88.77
Netherlands Schinnen 32,400 88.77
Netherlands Ypenburg 52,700 144.38
Netherlands All cities other than Amsterdam, Aruba, Brunssum, Coevorden, Eygelshoven, The Hague, Heerlen, Hoensbroek, Hulsberg, Kerkrade, Landgraaf, Maastricht, Margraten, Papendrecht, Rotterdam, Schaesburg, Schinnen, Schiphol, and Ypenburg 31,300 85.75
Philippines Cavite 34,000 93.15
Portugal Alverca 40,400 110.68
Portugal Lisbon 40,400 110.68
Qatar Doha 42,744 117.11
Singapore Singapore 75,900 207.95
Slovenia Ljubljana 46,400 127.12
Spain Madrid 53,900 147.67
Spain Rota 32,900 90.14
Spain Valencia 31,000 84.93
Switzerland Bern 63,000 172.60
Switzerland Geneva 90,600 248.22
United Kingdom Bristol 31,300 85.75
United Kingdom Brookwood 34,300 93.97
United Kingdom Cambridge 40,700 111.51
United Kingdom Cheltenham 49,600 135.89
United Kingdom Croughton 35,000 95.89
United Kingdom Fairford 34,000 93.15
United Kingdom Felixstowe 32,900 90.14
United Kingdom Harrogate 36,800 100.82
United Kingdom Huntingdon 34,300 93.97
United Kingdom Kemble 34,000 93.15
United Kingdom Lakenheath 43,900 120.27
United Kingdom Liverpool 30,900 84.66
United Kingdom London 68,700 188.22
United Kingdom Loudwater 54,200 148.49
United Kingdom Menwith Hill 36,800 100.82
United Kingdom Mildenhall 43,900 120.27
United Kingdom Oxfordshire 34,500 94.52
United Kingdom Plymouth 34,500 94.52
United Kingdom Portsmouth 34,500 94.52
United Kingdom Rochester 35,400 96.99
United Kingdom Samlesbury 34,300 93.97
United Kingdom Waterbeach 35,300 96.71
United Kingdom Wiltshire 32,800 89.86
United Kingdom All cities other than Basingstoke, Bath, Belfast, Birmingham, Bracknell, Bristol, Brookwood, Brough, Cambridge, Caversham, Chelmsford, Cheltenham, Chicksands, Croughton, Dunstable, Edinburgh, Edzell, Fairford, Farnborough, Felixstowe, Ft. Halstead, Gibraltar, Glenrothes, Greenham Common, Harrogate, High Wycombe, Huntingdon, Hythe, Kemble, Lakenheath, Liverpool, London, Loudwater, Menwith Hill, Mildenhall, Nottingham, Oxfordshire, Plymouth, Portsmouth, Reading, Rochester, Samlesbury, Southampton, Surrey, Waterbeach, Welford, West Byfleet, and Wiltshire 34,300 93.97
SECTION 4. ELECTION TO APPLY 2017 ADJUSTED LIMITATIONS TO 2016 TAXABLE YEAR
For some locations, the limitation on housing expenses provided in Section 3 of this notice may be higher than the limitation on housing expenses provided in the “Table of Adjusted Limitations for 2016” in Notice 2016–21. A qualified individual incurring housing expenses in such a location during 2016 may apply the adjusted limitation on housing expenses provided in Section 3 of this notice for 2016 in lieu of the amounts provided in the “Table of Adjusted Limitations for 2016” in Notice 2016–21 (and as set forth in the Instructions to Form 2555, Foreign Earned Income, for 2016).
The Treasury Department and the IRS anticipate that future annual notices providing adjustments to housing expense limitations will make a similar election available to qualified individuals that incur housing expenses in the immediately preceding year. For example, when adjusted housing expense limitations for 2018 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2017 taxable year.
Notice 2011–8, 2011–1 C.B. 503; Notice 2012–19, 2012–1 C.B. 440; Notice 2013–31, 2013–1 C.B. 1099; Notice 2014–29, 2014–1 C.B. 991; Notice 2015–33, 2015–18 I.R.B. 934; and Notice 2016–21, 2016–1 C.B. 465, are relisted to assist those individuals who are filing prior year or amended tax returns.
This notice supersedes Notice 2006–87, 2006–2 C.B. 766; Notice 2007–25, 2007–1 C.B. 760; Notice 2007–77, 2007–2 C.B. 735; Notice 2008–107, 2008–2 C.B. 1266; Notice 2010–27, 2010–1 C.B. 531; Notice 2011–8, 2011–1 C.B. 503; Notice 2012–19, 2012–1 C.B. 440; Notice 2013–31, 2013–1 C.B. 1099; Notice 2014–29, 2014–1 C.B. 991; Notice 2015–33, 2015–18 I.R.B. 934; and Notice 2016–21, 2016–1 C.B. 465.
This notice is effective for taxable years beginning on or after January 1, 2017. However, as provided in Section 4, a taxpayer may elect to apply the 2017 adjusted housing limitations contained in Section 3 of this notice to his or her taxable year beginning in 2016.
Notice 2017–22
Notice 2007–81, 2007–44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Consistent with the methodology specified in Notice 2007–81, the monthly corporate bond yield curve derived from February 2017 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of February 2017 are, respectively, 1.96, 3.91, and 4.69.
The three 24-month average corporate bond segment rates applicable for March 2017 without adjustment for the 25-year average segment rate limits are as follows:
March 2017 1.62 3.80 4.75
Based on § 430(h)(2)(C)(iv), the 24-month averages applicable for March 2017 adjusted to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates, are as follows:
2016 March 2017 4.43 5.91 6.65
2017 March 2017 4.16 5.72 6.48
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 § 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 February 2017 is 3.03 percent. The Service determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in November 2046 determined each day through February 8, 2017 and the yield on the 30-year Treasury bond maturing in February 2047 determined each day for the balance of the month. For plan years beginning in the month shown below, the weighted average of the rates of interest on 30-year Treasury securities and the permissible range of rates used to calculate current liability are as follows:
March 2017 2.90 2.61 3.05
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 February 2017 are as follows:
1.96 3.91 4.69
Monthly Yield Curve for February 2017
Derived from February 2017 Data
0.5 1.13 20.5 4.47 40.5 4.72 60.5 4.81 80.5 4.85
1.0 1.37 21.0 4.49 41.0 4.72 61.0 4.81 81.0 4.85
1.5 1.60 21.5 4.50 41.5 4.72 61.5 4.81 81.5 4.85
2.0 1.79 22.0 4.51 42.0 4.73 62.0 4.81 82.0 4.85
2.5 1.96 22.5 4.52 42.5 4.73 62.5 4.81 82.5 4.85
3.0 2.10 23.0 4.52 43.0 4.73 63.0 4.81 83.0 4.85
3.5 2.23 23.5 4.53 43.5 4.74 63.5 4.81 83.5 4.85
4.0 2.36 24.0 4.54 44.0 4.74 64.0 4.81 84.0 4.85
4.5 2.48 24.5 4.55 44.5 4.74 64.5 4.82 84.5 4.86
5.0 2.61 25.0 4.56 45.0 4.74 65.0 4.82 85.0 4.86
5.5 2.73 25.5 4.56 45.5 4.75 65.5 4.82 85.5 4.86
6.0 2.86 26.0 4.57 46.0 4.75 66.0 4.82 86.0 4.86
6.5 2.98 26.5 4.58 46.5 4.75 66.5 4.82 86.5 4.86
7.0 3.11 27.0 4.59 47.0 4.75 67.0 4.82 87.0 4.86
7.5 3.22 27.5 4.59 47.5 4.76 67.5 4.82 87.5 4.86
8.0 3.34 28.0 4.60 48.0 4.76 68.0 4.82 88.0 4.86
8.5 3.44 28.5 4.61 48.5 4.76 68.5 4.83 88.5 4.86
9.0 3.54 29.0 4.61 49.0 4.76 69.0 4.83 89.0 4.86
9.5 3.64 29.5 4.62 49.5 4.77 69.5 4.83 89.5 4.86
10.0 3.73 30.0 4.63 50.0 4.77 70.0 4.83 90.0 4.86
10.5 3.81 30.5 4.63 50.5 4.77 70.5 4.83 90.5 4.86
11.0 3.88 31.0 4.64 51.0 4.77 71.0 4.83 91.0 4.86
11.5 3.95 31.5 4.64 51.5 4.77 71.5 4.83 91.5 4.87
12.0 4.01 32.0 4.65 52.0 4.78 72.0 4.83 92.0 4.87
12.5 4.07 32.5 4.65 52.5 4.78 72.5 4.83 92.5 4.87
13.0 4.12 33.0 4.66 53.0 4.78 73.0 4.84 93.0 4.87
13.5 4.16 33.5 4.66 53.5 4.78 73.5 4.84 93.5 4.87
14.0 4.20 34.0 4.67 54.0 4.78 74.0 4.84 94.0 4.87
14.5 4.24 34.5 4.67 54.5 4.79 74.5 4.84 94.5 4.87
15.0 4.27 35.0 4.68 55.0 4.79 75.0 4.84 95.0 4.87
15.5 4.30 35.5 4.68 55.5 4.79 75.5 4.84 95.5 4.87
16.0 4.32 36.0 4.68 56.0 4.79 76.0 4.84 96.0 4.87
16.5 4.35 36.5 4.69 56.5 4.79 76.5 4.84 96.5 4.87
17.0 4.37 37.0 4.69 57.0 4.79 77.0 4.84 97.0 4.87
17.5 4.39 37.5 4.70 57.5 4.80 77.5 4.84 97.5 4.87
18.0 4.41 38.0 4.70 58.0 4.80 78.0 4.84 98.0 4.87
18.5 4.42 38.5 4.70 58.5 4.80 78.5 4.85 98.5 4.87
19.0 4.44 39.0 4.71 59.0 4.80 79.0 4.85 99.0 4.87
19.5 4.45 39.5 4.71 59.5 4.80 79.5 4.85 99.5 4.87
20.0 4.46 40.0 4.71 60.0 4.80 80.0 4.85 100.0 4.87
Rev. Proc. 2017–26
.01 This revenue procedure provides information to any individual who failed to meet the eligibility requirements of section 911(d)(1) of the Internal Revenue Code because adverse conditions in a foreign country precluded the individual from meeting those requirements for taxable year 2016.
.02 This revenue procedure lists the countries for which the eligibility requirements of section 911(d)(1) are waived for taxable year 2016.
.01 Sections 911(a) and (c)(4) of the Code allow a “qualified individual,” as defined in section 911(d), to exempt from taxation the individual’s foreign earned income and the housing cost amount.
.01 For 2016, the Secretary of the Treasury, in consultation with the Secretary of State, has determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business in the following country beginning on the specified date:
South Sudan July 10, 2016
Accordingly, for purposes of section 911 of the Code, an individual who left South Sudan on or after July 10, 2016, will be treated as a qualified individual with respect to the period during which that individual was present in, or was a bona fide resident of, South Sudan if the individual establishes a reasonable expectation of meeting the requirements of section 911(d) but for those conditions.
.02 To qualify for relief under section 911(d)(4) of the Code, an individual must have established residency, or have been physically present, in the foreign country on or before the date that the Secretary of the Treasury determines that individuals were required to leave the foreign country. Accordingly, individuals who were first physically present or established residency in South Sudan after July 10, 2016, are not eligible to qualify for the exception provided in section 911(d)(4) of the Code for taxable year 2016.
SECTION 4. INQUIRIES
A taxpayer who needs assistance on how to claim this exclusion, or on how to file an amended return, should contact a local IRS Office or consult the section under the heading How to Get Tax Help at https://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad.
Bulletin 2017–1 through 2017–13
2017-1 201-07 I.R.B. 2017-07 868