Internal Revenue Bulletin 2012-46

Official source: Internal Revenue Bulletin (https://www.irs.gov/pub/irs-irbs/irb12-46.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

Rev. Proc. 2012–42, page 545. This procedure publishes the amounts of unused housing credit carryovers allocated to qualified states under section 42(h)(3)(D) of the Code for calendar year 2012.

Announcement 2012–36, page 547. The announcement contains corrections and clarifications to Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. Rev. Proc. 2012–30 corrected and clarified.

Actions Relating to Court Decisions is on the page following the Introduction. Finding Lists begin on page ii.

Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and en

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements.

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

force the law with integrity and fairness to all.

court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement).

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

The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

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

November 13, 2012 2012–46 I.R.B.

It is the policy of the Internal Revenue Service to announce at an early date whether it will follow the holdings in certain cases. An Action on Decision is the document making such an announcement. An Action on Decision will be issued at the discretion of the Service only on unappealed issues decided adverse to the government. Generally, an Action on Decision is issued where its guidance would be helpful to Service personnel working with the same or similar issues. Unlike a Treasury Regulation or a Revenue Ruling, an Action on Decision is not an affirmative statement of Service position. It is not intended to serve as public guidance and may not be cited as precedent.

Actions on Decisions shall be relied upon within the Service only as conclusions applying the law to the facts in the particular case at the time the Action on Decision was issued. Caution should be exercised in extending the recommendation of the Action on Decision to similar cases where the facts are different. Moreover, the recommendation in the Action on Decision may be superseded by new legislation, regulations, rulings, cases, or Actions on Decisions.

Prior to 1991, the Service published acquiescence or nonacquiescence only in

certain regular Tax Court opinions. The Service has expanded its acquiescence program to include other civil tax cases where guidance is determined to be helpful. Accordingly, the Service now may acquiesce or nonacquiesce in the holdings of memorandum Tax Court opinions, as well as those of the United States District Courts, Claims Court, and Circuit Courts of Appeal. Regardless of the court deciding the case, the recommendation of any Action on Decision will be published in the Internal Revenue Bulletin.

The recommendation in every Action on Decision will be summarized as acquiescence, acquiescence in result only, or nonacquiescence. Both “acquiescence” and “acquiescence in result only” mean that the Service accepts the holding of the court in a case and that the Service will follow it in disposing of cases with the same controlling facts. However, “acquiescence” indicates neither approval nor disapproval of the reasons assigned by the court for its conclusions; whereas, “acquiescence in result only” indicates disagreement or concern with some or all of those reasons. “Nonacquiescence” signifies that, although no further review was sought, the Service does not agree with the holding of the court and, generally,

will not follow the decision in disposing of cases involving other taxpayers. In reference to an opinion of a circuit court of appeals, a “nonacquiescence” indicates that the Service will not follow the holding on a nationwide basis. However, the Service will recognize the precedential impact of the opinion on cases arising within the venue of the deciding circuit.

The Actions on Decisions published in the weekly Internal Revenue Bulletin are consolidated semiannually and appear in the first Bulletin for July and the Cumulative Bulletin for the first half of the year. A semiannual consolidation also appears in the first Bulletin for the following January and in the Cumulative Bulletin for the last half of the year.

The Commissioner does NOT ACQUIESCE in the following decisions:

Joanne M. Wandry v. Commis- sioner, ¹ Albert D. Wandry, a.k.a. A. Dean Wandry, v. Commissioner, ² T.C. Memo. 2012–88

1 Nonacquiescence relating to the court’s holding that taxpayers made a completed transfer of only a 1.98 percent membership interest in Norseman Capital, LLC.

2 Nonacquiescence relating to the court’s holding that taxpayers made a completed transfer of only a 1.98 percent membership interest in Norseman Capital, LLC.

2012–46 I.R.B. November 13, 2012

November 13, 2012 2012–46 I.R.B.

Section 42.—Low-Income Housing Credit.

26 CFR 1.42–14: Allocation rules for post-1989 State housing credit ceiling amounts.

Guidance is provided to state housing credit agencies of qualified states that request an allocation of unused housing credit carryover under section 42(h)(3)(D) of the Internal Revenue Code. See Rev. Proc. 2012-42, page 545.

2012–46 I.R.B. 544 November 13, 2012

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also Part I, § 42; 1.42–14.)

Rev. Proc. 2012–42

This revenue procedure publishes the amounts of unused housing credit carryovers allocated to qualified states under § 42(h)(3)(D) of the Internal Revenue Code for calendar year 2012.

Rev. Proc. 92–31, 1992–1 C.B. 775, provides guidance to state housing credit agencies of qualified states on the procedure for requesting an allocation of unused housing credit carryovers under § 42(h)(3)(D). Section 4.06 of Rev. Proc. 92–31 provides that the Internal Revenue Service will publish in the Internal Revenue Bulletin the amount of unused housing credit carryovers allocated to qualified states for a calendar year from a national pool of unused credit authority

(the National Pool). This revenue procedure publishes these amounts for calendar year 2012.

The unused housing credit carryover amount allocated from the National Pool by the Secretary to each qualified state for calendar year 2012 is as follows:

DRAFTING INFORMATION

The principal author of this revenue procedure is Julie Hanlon-Bolton of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For

EFFECTIVE DATE

This revenue procedure is effective for allocations of housing credit dollar amounts attributable to the National Pool

component of a qualified state’s housing credit ceiling for calendar year 2012.

November 13, 2012 545 2012–46 I.R.B.

further information regarding this revenue procedure, contact Ms. Hanlon-Bolton at (202) 622–3040 (not a toll-free call).

2012–46 I.R.B. 546 November 13, 2012

Corrections and Clarifications to Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W–2G Electronically

Announcement 2012–36

The following announcement lists corrections and clarifications for items in Publication 1220, Specifications for Fil- ing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W–2G Electronically, Revised August 13, 2012.

Corrections

Payee “B” Record — Record Layout Positions 544–750 for Form 1099-C (page 90) Description and Remarks Field Position 547 Identifiable Event Code (Box 6 on paper form)

The only required code is “A” for Bankruptcy. If not a Bankruptcy, this field must be blank filled.

Paper instructions have code “H” as “Expiration of Non-Payment Testing Period.” Pub 1220 lists the definition of code “H” as “Discontinued Collection Activity.” The correct definition of code “H” should be “Expiration of Non-Payment Testing Period.”

Payee “B” Record — Record Layout Positions 544–750 for Form 1099-G

(page 95) Field Positions 548–551 Tax Year of Refund

The correct valid range of years for the refund is 2002 through 2011.

Part D, Section 2 — Specifications for Filing Extensions of Time Electronically (page 145)

.04 — The date should reflect: Do not submit tax year 2012 extension requests filed electronically before Jan- uary 3, 2013.

Clarifications

Sec. 7. Payee “B” Record — General Field Descriptions and Record Layouts (page 62)

.02 This information was expanded to assist transmitters/filers with the guidelines for Name Control. If the Name Control is not determinable, this field must be blank filled.

Record Name: Payee “B” Record (page 65) Description and Remarks Field Position 7–10 Name Control

This information was expanded to assist transmitters/filers with the guidelines. If the Name Control is not determinable, this field must be blank filled.

Payee “B” Record — Record Layout Positions 544–750 for Form 1099-B

(page 88) Description and Remarks

Field Position 616 was renamed to Loss Not Allowed Indicator (Box 2b on paper form).

Previously in Tax Year 2011, the location was Field Position 626 and the name of the field was Recipient Indicator (Box 15 on paper form).

Payee “B” Record — Record Layout Positions 544–750 for Form 5498 (page 127) Description and Remarks Field Position 556–563 Postponed Contribution Code (Box 13c on paper form)

Paper instructions state that “FD” for Federally Designated Disaster Area is acceptable. If “FD” is used, left-justify and fill unused positions with blanks.

If using “PL” or “EO” code, left-justify and fill unused positions with blanks.

State Information This clarification applies to all forms except Form 1099-LTC Description and Remarks Field Position 663–722 Special Data Entries

The state ID number can be entered into this field.

Note: State information can be found on pages: 77, 79, 81, 83, 84, 85, 88, 90, 92, 93, 95, 97, 98, 100, 105, 107, 109, 111, 115, 119, 121, 123, 125, 128, 129, 130, 131, and 133.

November 13, 2012 547 2012–46 I.R.B.

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the ef- fect:

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modi- fied, below).

Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed.

Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them.

Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A

The following abbreviations in current use and formerly used will appear in material published in the Bulletin.

A —Individual. Acq. —Acquiescence. B —Individual. BE —Beneficiary. BK —Bank. B.T.A. —Board of Tax Appeals. C —Individual. C.B. —Cumulative Bulletin. CFR —Code of Federal Regulations. CI —City. COOP —Cooperative. Ct.D. —Court Decision. CY —County. D —Decedent. DC —Dummy Corporation. DE —Donee. Del. Order —Delegation Order. DISC —Domestic International Sales Corporation. DR —Donor. E —Estate. EE —Employee. E.O. —Executive Order.

and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling.

Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does more than restate the substance

ER —Employer. ERISA —Employee Retirement Income Security Act. EX —Executor. F —Fiduciary. FC —Foreign Country. FICA —Federal Insurance Contributions Act. FISC —Foreign International Sales Company. FPH —Foreign Personal Holding Company. F.R. —Federal Register. FUTA —Federal Unemployment Tax Act. FX —Foreign corporation. G.C.M. —Chief Counsel’s Memorandum. GE —Grantee. GP —General Partner. GR —Grantor. IC —Insurance Company. I.R.B. —Internal Revenue Bulletin. LE —Lessee. LP —Limited Partner. LR —Lessor. M —Minor. Nonacq. —Nonacquiescence. O —Organization. P —Parent Corporation. PHC —Personal Holding Company. PO —Possession of the U.S. PR —Partner.

of a prior ruling, a combination of terms is used. For example, modified and su- perseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded.

Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

PRS —Partnership. PTE —Prohibited Transaction Exemption. Pub. L. —Public Law. REIT —Real Estate Investment Trust. Rev. Proc. —Revenue Procedure. Rev. Rul. —Revenue Ruling. S —Subsidiary. S.P.R. —Statement of Procedural Rules. Stat. —Statutes at Large. T —Target Corporation. T.C. —Tax Court. T.D. —Treasury Decision. TFE —Transferee. TFR —Transferor. T.I.R. —Technical Information Release. TP —Taxpayer. TR —Trust. TT —Trustee. U.S.C. —United States Code. X —Corporation. Y —Corporation. Z —Corporation.

2012–46 I.R.B. i November 13, 2012

Numerical Finding List ¹

Bulletins 2012–27 through 2012–46

Announcements:

2012-26, 2012-27 I.R.B. 8

2012-27, 2012-27 I.R.B. 10

2012-28, 2012-27 I.R.B. 10

2012-29, 2012-42 I.R.B. 500

2012-30, 2012-34 I.R.B. 314

2012-31, 2012-34 I.R.B. 315

2012-32, 2012-35 I.R.B. 325

2012-33, 2012-35 I.R.B. 325

2012-34, 2012-36 I.R.B. 334

2012-35, 2012-38 I.R.B. 356

2012-36, 2012-46 I.R.B. 547

2012-37, 2012-45 I.R.B. 543

2012-38, 2012-43 I.R.B. 527

2012-41, 2012-44 I.R.B. 532

Notices:

2012-2, 2012-45 I.R.B. 538

2012-39, 2012-31 I.R.B. 95

2012-44, 2012-28 I.R.B. 45

2012-45, 2012-29 I.R.B. 59

2012-46, 2012-30 I.R.B. 86

2012-47, 2012-31 I.R.B. 98

2012-48, 2012-31 I.R.B. 102

2012-49, 2012-31 I.R.B. 119

2012-50, 2012-31 I.R.B. 121

2012-51, 2012-33 I.R.B. 150

2012-52, 2012-35 I.R.B. 317

2012-53, 2012-35 I.R.B. 317

2012-55, 2012-36 I.R.B. 332

2012-56, 2012-39 I.R.B. 370

2012-57, 2012-40 I.R.B. 424

2012-58, 2012-41 I.R.B. 436

2012-59, 2012-41 I.R.B. 443

2012-60, 2012-41 I.R.B. 445

2012-61, 2012-42 I.R.B. 479

2012-62, 2012-42 I.R.B. 489

2012-63, 2012-42 I.R.B. 496

2012-64, 2012-44 I.R.B. 528

Proposed Regulations:

REG-126770-06, 2012-38 I.R.B. 347

REG-138367-06, 2012-40 I.R.B. 426

REG-101812-07, 2012-34 I.R.B. 311

REG-134042-07, 2012-27 I.R.B. 5

REG-140668-07, 2012-43 I.R.B. 501

REG-153627-08, 2012-29 I.R.B. 60

REG-136491-09, 2012-35 I.R.B. 321

REG-138489-09, 2012-38 I.R.B. 355

REG-125570-11, 2012-30 I.R.B. 93

REG-130266-11, 2012-32 I.R.B. 126

REG-134935-11, 2012-29 I.R.B. 64

Proposed Regulations— Continued:

REG-141832-11, 2012-28 I.R.B. 54

REG-107889-12, 2012-28 I.R.B. 53

REG-113738-12, 2012-29 I.R.B. 66

Revenue Procedures:

2012-28, 2012-27 I.R.B. 4

2012-29, 2012-28 I.R.B. 49

2012-30, 2012-33 I.R.B. 165

2012-31, 2012-33 I.R.B. 256

2012-32, 2012-34 I.R.B. 267

2012-33, 2012-34 I.R.B. 272

2012-34, 2012-34 I.R.B. 280

2012-35, 2012-37 I.R.B. 341

2012-36, 2012-39 I.R.B. 374

2012-37, 2012-41 I.R.B. 449

2012-39, 2012-41 I.R.B. 470

2012-40, 2012-40 I.R.B. 424

2012-41, 2012-45 I.R.B. 539

2012-42, 2012-46 I.R.B. 545

Revenue Rulings:

2012-19, 2012-28 I.R.B. 16

2012-20, 2012-27 I.R.B. 1

2012-21, 2012-32 I.R.B. 123

2012-23, 2012-39 I.R.B. 359

2012-24, 2012-36 I.R.B. 329

2012-25, 2012-37 I.R.B. 337

2012-26, 2012-39 I.R.B. 358

2012-27, 2012-41 I.R.B. 435

2012-28, 2012-42 I.R.B. 476

2012-29, 2012-42 I.R.B. 475

2012-30, 2012-45 I.R.B. 534

Treasury Decisions:

9591, 2012-28 I.R.B. 32

9592, 2012-28 I.R.B. 41

9593, 2012-28 I.R.B. 17

9594, 2012-29 I.R.B. 57

9595, 2012-30 I.R.B. 71

9596, 2012-30 I.R.B. 84

9597, 2012-34 I.R.B. 258

9598, 2012-38 I.R.B. 343

9599, 2012-40 I.R.B. 417

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin 2012–26, dated June 25, 2012.

November 13, 2012 ii 2012–46 I.R.B.

Finding List of Current Actions on Previously Published Items ¹

Bulletins 2012–27 through 2012–46

Announcements:

83-196

Superseded by

2008-105

Modified and superseded by

Ann. 2012-34, 2012-36 I.R.B. 334

2012-29

Corrected by

Ann. 2012-41, 2012-44 I.R.B. 532

2012-38

Corrected by

Ann. 2012-41, 2012-44 I.R.B. 532

Notices:

2009-24

Amplified by

Proposed Regulations:

REG-100276-97

Withdrawn by

Ann. 2012-27, 2012-27 I.R.B. 10

REG-130266-11

Hearing scheduled by

Ann. 2012-29, 2012-42 I.R.B. 500 Ann. 2012-38, 2012-43 I.R.B. 527

Hearing rescheduled by

Ann. 2012-41, 2012-44 I.R.B. 532

Revenue Procedures:

94-22

Modified and superseded by

Revenue Procedures— Continued:

98-32

Modified and superseded by

2007-38

Modified and superseded by

2012-30

Corrected and clarified by

Ann. 2012-36, 2012-46 I.R.B. 547

Treasury Decisions:

9752

Corrected by

Ann. 2012-35, 2012-38 I.R.B. 356

1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin 2012–26, dated June 25, 2012.

2012–46 I.R.B. iii November 13, 2012

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