SECTION 4. ELECTION TO APPLY

2013 ADJUSTED LIMITATIONS TO 2012 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 2012” in Notice 2012–19. A qualified individual incurring housing expenses in such a location during 2012 may apply the adjusted limitation on housing expenses provided in section 3 of this notice in lieu of the amounts provided in the “Table of Adjusted Limitations for 2012” in Notice 2012–19 (and as set forth in the Instructions to Form 2555 (2012)).

The IRS and the Treasury Department 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 2014 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2013 taxable year.