Part I. Rulings — Internal Revenue Bulletin 2013-52

Section 871.—Tax on Nonresident Alien Individuals

TD 9648

DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1

Dividend Equivalents from Sources within the United States

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

SUMMARY: This document contains final regulations relating to certain dividend equivalents for purposes of section 871(m) of the Internal Revenue Code (Code). The regulations provide guidance to nonresident alien individuals and foreign corporations that hold specified notional principal contracts providing for payments that are contingent upon or determined by reference to U.S. source dividend payments and to withholding agents.

DATES: Effective Date : These regulations are effective on December 5, 2013.

Applicability Date : For dates of applicability, see §§1.863–7(a)(2), 1.871– 15(o), 1.881–2(e), 1.892–3(c), 1.894– 1(e), 1.1441–2(f), 1.1441–3(h)(2), 1.1441–4(g)(1), 1.1441–6(i)(1), 1.1441– 7(a)(4) and (g), and 1.1461–1(c)(2)(iii).

FOR FURTHER INFORMATION CONTACT: D. Peter Merkel or Karen Walny at (202) 317-6938 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Congress enacted section 871(m) (originally designated as section 871(l)) on March 18, 2010, in section 541 of the Hiring Incentives to Restore Employment

Act (HIRE Act), Public Law 111–147 (124 Stat. 71).

Section 871(m) applies to any substitute dividend made pursuant to a securities lending or a sale-repurchase transaction (repo) that is contingent upon, or determined by reference to, the payment of a U.S. source dividend, any payment made pursuant to a notional principal contract (NPC) that is a specified notional principal contract (specified NPC) when the payment is contingent upon, or determined by reference to, the payment of a U.S. source dividend, and any other payment determined by the Secretary to be substantially similar (dividend equivalent). Section 871(m) treats a dividend equivalent as a dividend from sources within the United States for purposes of sections 871(a), 881, and 4948(a), and chapters 3 and 4 of subtitle A of the Code. Section 871(m) generally applies to any dividend equivalent payment made on or after September 14, 2010. With respect to payments made on or after September 14, 2010, and on or before March 18, 2012, section 871(m)(3)(A) provides a factorbased test for determining whether an NPC is a specified NPC. With respect to payments made after March 18, 2012, section 871(m)(3)(B) provides that any NPC is a specified NPC unless the Secretary determines that the contract is of a type which does not have the potential for tax avoidance.

On January 23, 2012, the Federal Reg- ister published temporary regulations (TD 9572) at 77 FR 3108 (2012 temporary regulations), and a notice of proposed rulemaking by cross-reference to temporary regulations and notice of public hearing at 77 FR 3202 (2012 proposed regulations, and together with the 2012 temporary regulations, 2012 section 871(m) regulations) under section 871(m) of the Code. The 2012 section 871(m) regulations related to dividend equivalents from sources within the United States paid to nonresident alien individuals and foreign corporations. Corrections to the 2012 temporary regulations were published on February 6, 2012, and March 8, 2012, in the Federal Register at 77 FR 5700 and

77 FR 13969, respectively. A correcting amendment to the 2012 temporary regulations was also published on August 31, 2012, in the Federal Register at 77 FR 53141. The Treasury Department and the IRS received written comments on the 2012 section 871(m) regulations, which are available at www.regulations.gov . A public hearing was held on April 27, 2012. The majority of the comments related to the 2012 proposed regulations. Comments received regarding the provisions being finalized in this document are described in the Explanation of Provisions part of the preamble. An explanation of the other comments on the 2012 section 871(m) regulations is provided in the withdrawal of notice of proposed rulemaking, notice of proposed rulemaking and notice of public hearing in this issue of the Bulletin .

Explanation of Provisions

Section 1.871–15(d)(1) of these final regulations adopts with minimal changes §1.871–16T(b) of the 2012 temporary regulations, which incorporates the definition of a specified NPC provided in section 871(m)(3)(A). The four-factor specified NPC definition provided in §1.871– 16T(b) applies to payments made after March 18, 2012, and before January 1, 2014. These final regulations extend the applicability of the four-factor definition to payments made before January 1, 2016. Proposed regulations set forth in this issue of the Bulletin (the 2013 proposed regulations) contain the proposed definition of a specified NPC for payments made on or after January 1, 2016. The 2013 proposed regulations replace the 2012 proposed regulations, which provided a sevenfactor approach to defining a specified NPC. Comments indicated that financial services providers would have difficulty modifying their systems to implement the 2012 proposed regulations under the timeline provided in the 2012 proposed regulations. The Treasury Department and the IRS believe that an extension of the statutory definition of the term specified NPC is necessary because the 2013 proposed regulations adopt a different approach

December 23, 2013 798 Bulletin No. 2013–52

from the 2012 proposed regulations for determining whether an NPC is a specified NPC. In addition, this extension will allow the financial services industry adequate time to establish necessary systems and other operating procedures to comply with the rules described in the 2013 proposed regulations.

The 2012 temporary regulations amended several regulations to clarify the application of section 871(m). For example, the 2012 temporary regulations modified §1.863–7 to provide that the general source rule for NPCs did not apply to a dividend equivalent under section 871(m). The 2012 temporary regulations also provided that section 871(m) and §1.871– 16T applied to dividend equivalents received by foreign corporations. These final regulations adopt those temporary rules without change.

These final regulations also amend certain regulations under section 1441 to require a withholding agent to withhold tax owed with respect to a dividend equivalent. Generally, these amendments are consistent with the amendments made in the 2012 temporary regulations. In addition, these final regulations reinstate to §1.1441–7(a)(3) examples relating to the definition of a withholding agent, which were inadvertently deleted by the 2012 temporary regulations.

One comment suggested that the regulations clarify that financial intermediaries and custodians are not parties to a section 871(m) transaction and should not be withholding agents with respect to a dividend equivalent payment. The Treasury Department and the IRS disagree and believe that a financial intermediary or custodian that satisfies the definition of a withholding agent provided in §1.1441– 7(a) should be considered a withholding agent for purposes of section 871(m).

Another comment stated that §1.1441– 3T(i), which permitted a withholding agent to use the distributing corporation’s estimates to determine the amount of a dividend equivalent, was unduly harsh because the withholding agent remained liable for tax, interest, and penalties when the actual dividend exceeded the estimate. Section 1.1441–3T(i) is withdrawn and is not adopted in these final regulations. The Treasury Department and the IRS believe that withholding agents should comply

with §1.1441–3(d)(1) in the event that the amount of a dividend equivalent is uncertain.

Other comments relating to the withholding provisions described the difficulties that withholding agents would encounter when administering the 2012 proposed regulations. The Treasury Department and the IRS believe that withdrawing the 2012 proposed regulations and publishing the 2013 proposed regulations addresses these comments.

In addition, these regulations finalize portions of the 2012 proposed regulations relating to the treatment of dividend equivalent payments for purposes of sections 892 and 894. Comments to the 2012 proposed regulations generally supported the proposed regulations under sections 892 and 894. These portions of the proposed regulations are finalized without change.

The Treasury Department and the IRS will continue to closely scrutinize other transactions that are not covered by section 871(m) and that may be used to avoid U.S. taxation and U.S. withholding. In addition, the IRS may challenge the U.S. tax results claimed in connection with transactions that are designed to avoid the application of section 871(m) using all available statutory provisions and judicial doctrines (including the substance over form doctrine, the economic substance doctrine under section 7701(o), the step transaction doctrine, and tax ownership principles) as appropriate. For example, nothing in section 871(m) precludes the IRS from asserting that a contract labeled as an NPC is in fact an ownership interest in the equity referenced in the contract.

Special Analyses

It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. It is hereby certified that these regulations will not have a significant economic impact on a substantial number of small entities. This certification is based on the fact that these regulations will pri

marily affect multinational financial institutions, which tend to be larger businesses, and foreign entities. Moreover, the number of taxpayers affected and the average burden are minimal. Therefore, a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Code, the notice of proposed rulemaking preceding this regulation was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Drafting Information

The principal authors of these regulations are D. Peter Merkel and Karen Walny of the Office of Associate Chief Counsel (International). Other personnel from the Treasury Department and the IRS also participated in their development.

Adoption of Amendments to the Regulations

Accordingly, 26 CFR part 1 is amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 is amended by revising the entry for §1.863–7 and adding an entry for §1.871– 15 to read in part as follows: Authority: 26 U.S.C. 7805 - - §1.863–7 also issued under 26 U.S.C. 863(a) and 871(m). - - §1.871–15 also issued under 26 U.S.C. 871(m). - - Par. 2. Section 1.863–7 is amended by:

Revising paragraph (a)(1).
In paragraph (a)(2), revising the heading and adding a sentence at the end.

The revisions and addition read as follows:

§1.863–7 Allocation of income attributable to certain notional principal contracts under section 863(a).

(a) Scope —(1) Introduction . This section provides rules relating to the source and, in certain cases, the character of notional principal contract income. However, this section does not apply to income from a section 988 transaction within the meaning of section 988 and the regula

Bulletin No. 2013–52 799 December 23, 2013

tions thereunder, relating to the treatment of certain nonfunctional currency transactions. Further, this section does not apply to a dividend equivalent described in section 871(m) and the regulations thereunder. Notional principal contract income is income attributable to a notional principal contract as defined in §1.446–3(c). An agreement between a taxpayer and a qualified business unit (as defined in section 989(a)) of the taxpayer, or among qualified business units of the same taxpayer, is not a notional principal contract, because a taxpayer cannot enter into a contract with itself.

(2) Effective/applicability date . - - With respect to a dividend equivalent described in section 871(m) and the regulations thereunder, this section applies to payments made on or after January 23, 2012.

§1.863–7T [Removed].

Par. 3. Section 1.863–7T is removed. Par. 4. Section 1.871–15 is added as follows:

§1.871–15 Treatment of dividend equivalents.

(a) through (c) [Reserved]. (d) Specified NPCs —(1) Specified NPCs before January 1, 2016 . For payments made after March 18, 2012, and before January 1, 2016, a specified NPC is any NPC if—

(i) In connection with entering into the contract, any long party to the contract transfers the underlying security to any short party to the contract;

(ii) In connection with the termination of the contract, any short party to the contract transfers the underlying security to any long party to the contract;

(iii) The underlying security is not readily tradable on an established securities market; or

(iv) In connection with entering into the contract, the underlying security is posted as collateral by any short party to the contract with any long party to the contract.

(d)(2) through (n) [Reserved]. (o) Effective/applicability date . This section applies to payments made on or after January 23, 2012.

§1.871–15T [Removed].

Par. 5. Section 1.871–15T is removed.

§1.871–16T [Removed].

Par. 6. Section 1.871–16T is removed. Par. 7. Section 1.881–2 is amended by:

Revising paragraph (b)(3).
In paragraph (e), revising the heading and adding a sentence at the end.

The revisions and addition read as follows:

§1.881–2 Taxation of foreign corporations not engaged in U.S. business.

- - - (b) - - (3) Dividend Equivalents . For rules applicable to a foreign corporation’s receipt of a dividend equivalent, see section 871(m) and the regulations thereunder.
- - - (e) Effective/applicability date . - - Paragraph (b)(3) of this section applies to payments made on or after January 23,

§1.881–2T [Removed].

Par. 8. Section 1.881–2T is removed. Par. 9. Section 1.892–3 is added to read as follows:

§1.892–3 Income of foreign governments.

(a)(1) through (a)(5) [Reserved]. For further information, see §1.892– 3T(a)(1) through (a)(5). (6) Dividend equivalents . Income from investments in stocks includes the payment of a dividend equivalent described in section 871(m) and the regulations thereunder.

(b) [Reserved]. For further information, see §1.892–3T(b).

(c) Effective/applicability date . Paragraph (a)(6) of this section applies to payments made on or after December 5, 2013.

Par.10. Section 1.894–1 is amended by:

Redesignating paragraph (c) as (c)(1) and adding paragraph (c)(2).
In paragraph (e):

a. Revising the heading, b. Revising the third sentence, and c. Adding a new fourth sentence. The addition and revisions read as follows:

§1.894–1 Income affected by treaty.

- - - (c) - - (2) Dividend equivalents . The provisions of an income tax convention relating to dividends paid to or derived by a foreign person apply to the payment of a dividend equivalent described in section 871(m) and the regulations thereunder.
- - - (e) Effective/applicability date . - - Paragraph (c)(1) of this section applies to payments made after November 13, 1997. Paragraph (c)(2) of this section applies to payments made on or after December 5,

- - Par. 11. Section 1.1441–2 is amended by:
Revising paragraph (b)(6).
Adding a sentence to the end of paragraph (f).

The revision and addition read as follows:

§1.1441–2 Amounts subject to withholding.

- - - (b) - - (6) Dividend equivalents . Amounts subject to withholding include a dividend equivalent described in section 871(m) and the regulations thereunder. For this purpose, the amount of a dividend equivalent includes any gross amount that is used in computing any net amount that is transferred to or from the taxpayer under the terms of the transaction or any other payment described in section 871(m) and the regulations thereunder.
- - - (f) Effective/applicability date . - - Paragraph (b)(6) of this section applies to payments made on or after January 23,

December 23, 2013 800 Bulletin No. 2013–52

§1.1441–2T [Removed].

Par. 12. Section 1.1441–2T is removed.

Par. 13. Section 1.1441–3 is amended by:

Revising paragraph (h).
Removing paragraph (i).
Redesignating paragraph (j) as newly-designated paragraph (i) and removing the language “paragraph (g)” from newly-redesignated paragraph (i) and adding “paragraphs (g) and (h)” in its place.

The revisions read as follows:

§1.1441–3 Determination of amounts to be withheld.

- - - (h) Dividend equivalents —(1) With- holding on gross amount . The gross amount of a dividend equivalent described in section 871(m) and the regulations thereunder is subject to withholding in an amount equal to the gross amount of the dividend equivalent used in computing any net amount that is transferred to or from the taxpayer.

(2) Effective/applicability date . This paragraph (h) applies to payments made on or after January 23, 2012.

§1.1441–3T [Removed].

Par. 14. Section 1.1441–3T is removed.

Par. 15. Section 1.1441–4 is amended by:

Revising paragraphs (a)(3)(i) and (iii).
Revising the heading to paragraph (g).
Removing the language “2000.” in paragraph (g)(1) and adding “2000, except that paragraph (a)(3)(iii) of this section applies to payments made on or after January 23, 2013.” in its place. The revisions read as follows:

§1.1441–4 Exemptions from withholding for certain effectively connected income and other amounts.

(a) - - (3) Income on notional principal con- tracts —(i) General rule . Except as otherwise provided in paragraph (a)(3)(iii) of this section, a withholding agent that pays

amounts attributable to a notional principal contract described in §1.863–7(a) or §1.988–2(e) shall have no obligation to withhold on the amounts paid under the terms of the notional principal contract regardless of whether a withholding certificate is provided. However, a withholding agent must file returns under §1.1461– 1(b) and (c) reporting the income that it must treat as effectively connected with the conduct of a trade or business in the United States under the provisions of this paragraph (a)(3). Except as otherwise provided in paragraph (a)(3)(ii) of this section, a withholding agent must treat the income as effectively connected with the conduct of a U.S. trade or business if the income is paid to, or to the account of, a qualified business unit of a foreign person located in the United States or, if the payment is paid to, or to the account of, a qualified business unit of a foreign person located outside the United States, the withholding agent knows, or has reason to know, the payment is effectively connected with the conduct of a trade or business within the United States. Income on a notional principal contract does not include the amount characterized as interest under the provisions of §1.446–3(g)(4).

- - - (iii) Exception for specified notional principal contracts . A withholding agent that makes a payment attributable to a specified notional principal contract described in section 871(m) and the regulations thereunder that is not treated as effectively connected with the conduct of a trade or business within the United States is obligated to withhold on the amount of the payment that is a dividend equivalent.
- - - (g) Effective/applicability date —* -

§1.1441–4T [Removed].

Par. 16. Section 1.1441–4T is removed.

Par. 17. Section 1.1441–6 is amended by:

Revising paragraph (c)(2).
Redesignating paragraph (h) as paragraph (i) and revising newly-redesignated paragraph (i)(1).
Adding a new paragraph (h). The revisions and addition read as follows:

§1.1441–6 Claim of reduced withholding under an income tax treaty.

- - - (c) - - (2) Income to which special rules ap- ply . The income to which paragraph (c)(1) of this section applies is dividends and interest from stocks and debt obligations that are actively traded, dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a–1), dividends, interest, or royalties from units of beneficial interest in a unit investment trust that are (or were upon issuance) publicly offered and are registered with the Securities and Exchange Commission under the Securities Act of 1933 (15 U.S.C. 77a), and amounts paid with respect to loans of securities described in this paragraph (c)(2). With respect to a dividend equivalent described in section 871(m) and the regulations thereunder, this paragraph (c)(2) applies to the extent that the underlying security described in section 871(m) and the regulations thereunder satisfies the requirements of this paragraph (c)(2). For purposes of this paragraph (c)(2), a stock or debt obligation is actively traded if it is actively traded within the meaning of section 1092(d) and §1.1092(d)–1 when documentation is provided.
- - - (h) Dividend equivalents . The rate of withholding on a dividend equivalent may be reduced to the extent provided under an income tax treaty in effect between the United States and a foreign country. For this purpose, a dividend equivalent as described in section 871(m) and the regulations thereunder is treated as a dividend from sources within the United States. To receive a reduced rate of withholding with respect to a dividend equivalent, a foreign person must satisfy the other requirements described in this section.

(i) Effective/applicability dates —(1) General rule . This section applies to payments made after December 31, 2000, except that—

(i) Paragraph (g) of this section applies to payments made after December 31, 2001, and

Bulletin No. 2013–52 801 December 23, 2013

(iii) Effective/applicability date . Paragraph (c)(2)(i)(L) of this section applies on or after January 23, 2012.

§1.1461–1T [Removed].

Par. 21. Section 1.1461–1T is removed.

John Dalrymple, Deputy Commissioner for Services and Enforcement.

Approved November 26, 2013

Mark J. Mazur, Assistant Secretary of the Treasury

(Tax Policy).

(Filed by the Office of the Federal Register on December 4, 2013, 8:45 a.m., and published in the issue of the Federal Register for December 5, 2013, 78 F.R. 73079)

Section 6621.— Determination of Rate of Interest

26 CFR 301.6621–1: Interest rate.

Rev. Rul. 2013–25

Section 6621 of the Internal Revenue Code establishes the interest rates on overpayments and underpayments of tax. Under section 6621(a)(1), the overpayment rate is the sum of the federal shortterm rate plus 3 percentage points (2 percentage points in the case of a corporation), except the rate for the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the sum of the federal short-term rate plus 0.5 of a percentage point. Under section 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points.

Section 6621(c) provides that for purposes of interest payable under section 6601 on any large corporate underpayment, the underpayment rate under section 6621(a)(2) is determined by substituting “5 percentage points” for “3 percentage points.” See section 6621(c) and section 301.6621–3 of the Regulations on Procedure and Administration for the definition

(ii) Paragraph (h) of this section applies to payments made on or after December 5, 2013.

- - - Par. 18. Section 1.1441–7 is amended by:

Removing paragraph (a)(3).
Redesignating paragraph (a)(2) as paragraph (a)(3) and revising newlyredesignated paragraph (a)(3).
Adding a new paragraph (a)(2).
Adding a new paragraph (a)(4).
Revising paragraph (g). The revisions and additions read as follows:

§1.1441–7 General provisions relating to withholding agents.

(a) - - (2) Withholding agent with respect to dividend equivalents . Each person that is a party to any contract or arrangement that provides for the payment of a dividend equivalent, as described in section 871(m) and the regulations thereunder, is treated as having control and custody of the payment.

(3) Examples . The following examples illustrate the rules of paragraphs (a)(1) and (a)(2) of this section:

Example 1 . USB is a broker organized in the United States. USB pays U.S. source dividends and interest, which are amounts subject to withholding under § 1.1441–2(a), to FC, a foreign corporation that has an investment account with USB. USB is a withholding agent as defined in paragraph (a)(1) of this section.

Example 2 . USB is a bank organized in the United States. FB is a bank organized in country X. FB has an omnibus account with USB through which FB invests in debt and equity instruments that pay amounts subject to withholding as defined in § 1.1441–2(a). FB is a nonqualified intermediary, as defined in § 1.1441–1(c)(14). Both USB and FB are withholding agents as defined in paragraph (a)(1) of this section.

Example 3 . The facts are the same as in Example 2, except that FB is a qualified intermediary. Both USB and FB are withholding agents as defined in paragraph (a)(1) of this section.

Example 4 . FB is a bank organized in country X. FB has a branch in the United States. FB’s branch has customers that are foreign persons who receive amounts subject to withholding, as defined in §1.1441–2(a). FB is a withholding agent under paragraph (a)(1) of this section and is required to withhold and report payments of amounts subject to withholding in accordance with chapter 3 of the Internal Revenue Code.

Example 5 . X is a foreign corporation. X pays dividends to shareholders who are foreign persons.

Under section 861(a)(2)(B), a portion of the dividends are from sources within the United States and constitute amounts subject to withholding within the meaning of §1.1441–2(a). The dividends are not subject to tax under section 884(a). See section 884(e)(3). X is a withholding agent under paragraph (a)(1) of this section.

Example 6 . FC, a foreign corporation, enters into a notional principal contract (NPC) with Bank X, a bank organized in the United States. The NPC is a specified NPC for purposes of section 871(m) and the regulations thereunder. FC is the long party to the contract and Bank X is the short party. The NPC references a specified number of shares of dividendpaying common stock issued by a domestic corporation. As the long party, FC receives payments from Bank X based on any appreciation in the value of the common stock and dividends paid with respect to the common stock. As the short party, Bank X receives payment from FC based on any depreciation in the value of the common stock and a payment based on LIBOR. Bank X is a withholding agent because Bank X is deemed to have control and custody of a dividend equivalent as a party to the NPC. If FC’s tax liability under section 881 has not been satisfied in full by Bank X as withholding agent, FC is required to file a return on Form 1120-F ( U.S. Income Tax Return of a Foreign Corporation ).

(4) Effective/applicability date . Paragraph (a)(2) of this section and Example 6 apply on or after January 23, 2012.

- - - (g) Effective/applicability date . Except as otherwise provided in paragraphs (a)(4) and (f)(3) of this section, this section applies to payments made after December 31, 2000.

§1.1441–7T [Removed].

Par. 19. Section 1.1441–7T is removed.

Par. 20. Section 1.1461–1 is amended by:

Revising paragraph (c)(2)(i)(L).
Adding paragraph (c)(2)(iii).

The revision and addition read as follows:

§1.1461–1 Payment and returns of tax withheld.

- - - (c) - - (2) - - (i) - - (L) Dividend equivalents as described in section 871(m) and the regulations thereunder;

December 23, 2013 802 Bulletin No. 2013–52

of a large corporate underpayment and for the rules for determining the applicable date. Section 6621(c) and section 301.6621–3 are generally effective for periods after December 31, 1990.

Section 6621(b)(1) provides that the Secretary will determine the federal shortterm rate for the first month in each calendar quarter. Section 6621(b)(2)(A) provides that the federal short-term rate determined under section 6621(b)(1) for any month applies during the first calendar quarter beginning after that month. Section 6621(b)(2)(B) provides that in determining the addition to tax under section 6654 for failure to pay estimated tax for any taxable year, the federal short-term rate that applies during the third month following the taxable year also applies during the first 15 days of the fourth month following the taxable year. Section 6621(b)(3) provides that the federal shortterm rate for any month is the federal short-term rate determined during that month by the Secretary in accordance with section 1274(d), rounded to the nearest full percent (or, if a multiple of 1/2 of 1 percent, the rate is increased to the next highest full percent).

Notice 88–59, 1988–1 C.B. 546, announced that in determining the quarterly interest rates to be used for overpayments and underpayments of tax under section 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with section 6621 which, pursuant to section 6622, is subject to daily compounding.

The federal short-term rate determined in accordance with section 1274(d) during October 2013 is the rate published in Revenue Ruling 2013–22, 2013–46 I.R.B. 496 to take effect beginning November 1, 2013. The federal short-term rate, rounded to the nearest full percent, based on daily compounding determined during the month of October 2013 is 0 percent. Accordingly, an overpayment rate of 3 percent (2 percent in the case of a corporation) and an underpayment rate of 3 percent are established for the calendar quarter beginning January 1, 2014. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning January 1, 2014, is 0.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning January 1,

365 Day Year

0.5% Compound Rate 184 Days

2014, is 5 percent. These rates apply to amounts bearing interest during that calendar quarter.

The 3 percent rate also applies to estimated tax underpayments for the first calendar quarter in 2014.

Interest factors for daily compound interest for annual rates of 0.5 percent are published in Appendix A of this Revenue Ruling. Interest factors for daily compound interest for annual rates of 2 percent, 3 percent and 5 percent are published in Tables 9, 11, and 15 of Rev. Proc. 95–17, 1995–1 C.B. 563, 565, and 569. Annual interest rates to be compounded daily pursuant to section 6622 that apply for prior periods are set forth in the tables accompanying this revenue ruling.

DRAFTING INFORMATION

The principal author of this revenue ruling is Deborah Colbert-James of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue ruling, contact Ms. Colbert-James at (202) 317-3400 (not a toll-free call).

APPENDIX A

Days Factor Days Factor Days Factor

1 0.000013699 63 0.000863380 125 0.001713784

2 0.000027397 64 0.000877091 126 0.001727506

3 0.000041096 65 0.000890801 127 0.001741228

4 0.000054796 66 0.000904512 128 0.001754951

5 0.000068495 67 0.000918223 129 0.001768673

6 0.000082195 68 0.000931934 130 0.001782396

7 0.000095894 69 0.000945646 131 0.001796119

8 0.000109594 70 0.000959357 132 0.001809843

9 0.000123294 71 0.000973069 133 0.001823566

10 0.000136995 72 0.000986781 134 0.001837290

11 0.000150695 73 0.001000493 135 0.001851013

12 0.000164396 74 0.001014206 136 0.001864737

13 0.000178097 75 0.001027918 137 0.001878462

14 0.000191798 76 0.001041631 138 0.001892186

15 0.000205499 77 0.001055344 139 0.001905910

16 0.000219201 78 0.001069057 140 0.001919635

17 0.000232902 79 0.001082770 141 0.001933360

18 0.000246604 80 0.001096484 142 0.001947085

Bulletin No. 2013–52 803 December 23, 2013

365 Day Year

0.5% Compound Rate 184 Days

Days Factor Days Factor Days Factor

19 0.000260306 81 0.001110197 143 0.001960811

20 0.000274008 82 0.001123911 144 0.001974536

21 0.000287711 83 0.001137625 145 0.001988262

22 0.000301413 84 0.001151339 146 0.002001988

23 0.000315116 85 0.001165054 147 0.002015714

24 0.000328819 86 0.001178768 148 0.002029440

25 0.000342522 87 0.001192483 149 0.002043166

26 0.000356225 88 0.001206198 150 0.002056893

27 0.000369929 89 0.001219913 151 0.002070620

28 0.000383633 90 0.001233629 152 0.002084347

29 0.000397336 91 0.001247344 153 0.002098074

30 0.000411041 92 0.001261060 154 0.002111801

31 0.000424745 93 0.001274776 155 0.002125529

32 0.000438449 94 0.001288492 156 0.002139257

33 0.000452154 95 0.001302208 157 0.002152985

34 0.000465859 96 0.001315925 158 0.002166713

35 0.000479564 97 0.001329641 159 0.002180441

36 0.000493269 98 0.001343358 160 0.002194169

37 0.000506974 99 0.001357075 161 0.002207898

38 0.000520680 100 0.001370792 162 0.002221627

39 0.000534386 101 0.001384510 163 0.002235356

40 0.000548092 102 0.001398227 164 0.002249085

41 0.000561798 103 0.001411945 165 0.002262815

42 0.000575504 104 0.001425663 166 0.002276544

43 0.000589211 105 0.001439381 167 0.002290274

44 0.000602917 106 0.001453100 168 0.002304004

45 0.000616624 107 0.001466818 169 0.002317734

46 0.000630331 108 0.001480537 170 0.002331465

47 0.000644039 109 0.001494256 171 0.002345195

48 0.000657746 110 0.001507975 172 0.002358926

49 0.000671454 111 0.001521694 173 0.002372657

50 0.000685161 112 0.001535414 174 0.002386388

51 0.000698869 113 0.001549133 175 0.002400120

52 0.000712578 114 0.001562853 176 0.002413851

53 0.000726286 115 0.001576573 177 0.002427583

54 0.000739995 116 0.001590293 178 0.002441315

55 0.000753703 117 0.001604014 179 0.002455047

56 0.000767412 118 0.001617734 180 0.002468779

57 0.000781121 119 0.001631455 181 0.002482511

58 0.000794831 120 0.001645176 182 0.002496244

59 0.000808540 121 0.001658897 183 0.002509977

60 0.000822250 122 0.001672619 184 0.002523710

61 0.000835960 123 0.001686340

62 0.000849670 124 0.001700062

December 23, 2013 804 Bulletin No. 2013–52

366 Day Year

0.5% Compound Rate 184 Days

Days Factor Days Factor Days Factor

1 0.000013661 63 0.000861020 125 0.001709097

2 0.000027323 64 0.000874693 126 0.001722782

3 0.000040984 65 0.000888366 127 0.001736467

4 0.000054646 66 0.000902040 128 0.001750152

5 0.000068308 67 0.000915713 129 0.001763837

6 0.000081970 68 0.000929387 130 0.001777522

7 0.000095632 69 0.000943061 131 0.001791208

8 0.000109295 70 0.000956735 132 0.001804893

9 0.000122958 71 0.000970409 133 0.001818579

10 0.000136620 72 0.000984084 134 0.001832265

11 0.000150283 73 0.000997758 135 0.001845951

12 0.000163947 74 0.001011433 136 0.001859638

13 0.000177610 75 0.001025108 137 0.001873324

14 0.000191274 76 0.001038783 138 0.001887011

15 0.000204938 77 0.001052459 139 0.001900698

16 0.000218602 78 0.001066134 140 0.001914385

17 0.000232266 79 0.001079810 141 0.001928073

18 0.000245930 80 0.001093486 142 0.001941760

19 0.000259595 81 0.001107162 143 0.001955448

20 0.000273260 82 0.001120839 144 0.001969136

21 0.000286924 83 0.001134515 145 0.001982824

22 0.000300590 84 0.001148192 146 0.001996512

23 0.000314255 85 0.001161869 147 0.002010201

24 0.000327920 86 0.001175546 148 0.002023889

25 0.000341586 87 0.001189223 149 0.002037578

26 0.000355252 88 0.001202900 150 0.002051267

27 0.000368918 89 0.001216578 151 0.002064957

28 0.000382584 90 0.001230256 152 0.002078646

29 0.000396251 91 0.001243934 153 0.002092336

30 0.000409917 92 0.001257612 154 0.002106025

31 0.000423584 93 0.001271291 155 0.002119715

32 0.000437251 94 0.001284969 156 0.002133405

33 0.000450918 95 0.001298648 157 0.002147096

34 0.000464586 96 0.001312327 158 0.002160786

35 0.000478253 97 0.001326006 159 0.002174477

36 0.000491921 98 0.001339685 160 0.002188168

37 0.000505589 99 0.001353365 161 0.002201859

38 0.000519257 100 0.001367044 162 0.002215550

39 0.000532925 101 0.001380724 163 0.002229242

40 0.000546594 102 0.001394404 164 0.002242933

41 0.000560262 103 0.001408085 165 0.002256625

42 0.000573931 104 0.001421765 166 0.002270317

43 0.000587600 105 0.001435446 167 0.002284010

44 0.000601269 106 0.001449127 168 0.002297702

Bulletin No. 2013–52 805 December 23, 2013

366 Day Year

0.5% Compound Rate 184 Days

Days Factor Days Factor Days Factor

45 0.000614939 107 0.001462808 169 0.002311395

46 0.000628608 108 0.001476489 170 0.002325087

47 0.000642278 109 0.001490170 171 0.002338780

48 0.000655948 110 0.001503852 172 0.002352473

49 0.000669618 111 0.001517533 173 0.002366167

50 0.000683289 112 0.001531215 174 0.002379860

51 0.000696959 113 0.001544897 175 0.002393554

52 0.000710630 114 0.001558580 176 0.002407248

53 0.000724301 115 0.001572262 177 0.002420942

54 0.000737972 116 0.001585945 178 0.002434636

55 0.000751643 117 0.001599628 179 0.002448331

56 0.000765315 118 0.001613311 180 0.002462025

57 0.000778986 119 0.001626994 181 0.002475720

58 0.000792658 120 0.001640678 182 0.002489415

59 0.000806330 121 0.001654361 183 0.002503110

60 0.000820003 122 0.001668045 184 0.002516806

61 0.000833675 123 0.001681729

62 0.000847348 124 0.001695413

TABLE OF INTEREST RATES

PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986

OVERPAYMENTS AND UNDERPAYMENTS

In 1995–1 C.B.

PERIOD RATE DAILY RATE TABLE

Before Jul. 1, 1975 6% Table 2, pg. 557

Jul. 1, 1975—Jan. 31, 1976 9% Table 4, pg. 559

Feb. 1, 1976—Jan. 31, 1978 7% Table 3, pg. 558

Feb. 1, 1978—Jan. 31, 1980 6% Table 2, pg. 557

Feb. 1, 1980—Jan. 31, 1982 12% Table 5, pg. 560

Feb. 1, 1982—Dec. 31, 1982 20% Table 6, pg. 560

Jan. 1, 1983—Jun. 30, 1983 16% Table 37, pg. 591

Jul. 1, 1983—Dec. 31, 1983 11% Table 27, pg. 581

Jan. 1, 1984—Jun. 30, 1984 11% Table 75, pg. 629

Jul. 1, 1984—Dec. 31, 1984 11% Table 75, pg. 629

Jan. 1, 1985—Jun. 30, 1985 13% Table 31, pg. 585

Jul. 1, 1985—Dec. 31, 1985 11% Table 27, pg. 581

Jan. 1, 1986—Jun. 30, 1986 10% Table 25, pg. 579

Jul. 1, 1986—Dec. 31, 1986 9% Table 23, pg. 577

December 23, 2013 806 Bulletin No. 2013–52

TABLE OF INTEREST RATES

FROM JAN. 1, 1987 - DEC. 31, 1998

OVERPAYMENTS UNDERPAYMENTS

1995–1 C.B. 1995–1 C.B. RATE TABLE PG RATE TABLE PG

Jan. 1, 1987—Mar. 31, 1987 8% 21 575 9% 23 577

Apr. 1, 1987—Jun. 30, 1987 8% 21 575 9% 23 577

Jul. 1, 1987—Sep. 30, 1987 8% 21 575 9% 23 577

Oct. 1, 1987—Dec. 31, 1987 9% 23 577 10% 25 579

Jan. 1, 1988—Mar. 31, 1988 10% 73 627 11% 75 629

Apr. 1, 1988—Jun. 30, 1988 9% 71 625 10% 73 627

Jul. 1, 1988—Sep. 30, 1988 9% 71 625 10% 73 627

Oct. 1, 1988—Dec. 31, 1988 10% 73 627 11% 75 629

Jan. 1, 1989—Mar. 31, 1989 10% 25 579 11% 27 581

Apr. 1, 1989—Jun. 30, 1989 11% 27 581 12% 29 583

Jul. 1, 1989—Sep. 30, 1989 11% 27 581 12% 29 583

Oct. 1, 1989—Dec. 31, 1989 10% 25 579 11% 27 581

Jan. 1, 1990—Mar. 31, 1990 10% 25 579 11% 27 581

Apr. 1, 1990—Jun. 30, 1990 10% 25 579 11% 27 581

Jul. 1, 1990—Sep. 30, 1990 10% 25 579 11% 27 581

Oct. 1, 1990—Dec. 31, 1990 10% 25 579 11% 27 581

Jan. 1, 1991—Mar. 31, 1991 10% 25 579 11% 27 581

Apr. 1, 1991—Jun. 30, 1991 9% 23 577 10% 25 579

Jul. 1, 1991—Sep. 30, 1991 9% 23 577 10% 25 579

Oct. 1, 1991—Dec. 31, 1991 9% 23 577 10% 25 579

Jan. 1, 1992—Mar. 31, 1992 8% 69 623 9% 71 625

Apr. 1, 1992—Jun. 30, 1992 7% 67 621 8% 69 623

Jul. 1, 1992—Sep. 30, 1992 7% 67 621 8% 69 623

Oct. 1, 1992—Dec. 31, 1992 6% 65 619 7% 67 621

Jan. 1, 1993—Mar. 31, 1993 6% 17 571 7% 19 573

Apr. 1, 1993—Jun. 30, 1993 6% 17 571 7% 19 573

Jul. 1, 1993—Sep. 30, 1993 6% 17 571 7% 19 573

Oct. 1, 1993—Dec. 31, 1993 6% 17 571 7% 19 573

Jan. 1, 1994—Mar. 31, 1994 6% 17 571 7% 19 573

Apr. 1, 1994—Jun. 30, 1994 6% 17 571 7% 19 573

Jul. 1, 1994—Sep. 30, 1994 7% 19 573 8% 21 575

Oct. 1, 1994—Dec. 31, 1994 8% 21 575 9% 23 577

Jan. 1, 1995—Mar. 31, 1995 8% 21 575 9% 23 577

Apr. 1, 1995—Jun. 30, 1995 9% 23 577 10% 25 579

Jul. 1, 1995—Sep. 30, 1995 8% 21 575 9% 23 577

Oct. 1, 1995—Dec. 31, 1995 8% 21 575 9% 23 577

Jan. 1, 1996—Mar. 31, 1996 8% 69 623 9% 71 625

Apr. 1, 1996—Jun. 30, 1996 7% 67 621 8% 69 623

Jul. 1, 1996—Sep. 30, 1996 8% 69 623 9% 71 625

Oct. 1, 1996—Dec. 31, 1996 8% 69 623 9% 71 625

Jan. 1, 1997—Mar. 31, 1997 8% 21 575 9% 23 577

Apr. 1, 1997—Jun. 30, 1997 8% 21 575 9% 23 577

Bulletin No. 2013–52 807 December 23, 2013

TABLE OF INTEREST RATES

FROM JAN. 1, 1987 - DEC. 31, 1998

OVERPAYMENTS UNDERPAYMENTS

1995–1 C.B. 1995–1 C.B. RATE TABLE PG RATE TABLE PG

Jul. 1, 1997—Sep. 30, 1997 8% 21 575 9% 23 577

Oct. 1, 1997—Dec. 31, 1997 8% 21 575 9% 23 577

Jan. 1, 1998—Mar. 31, 1998 8% 21 575 9% 23 577

Apr. 1, 1998—Jun. 30, 1998 7% 19 573 8% 21 575

Jul. 1, 1998—Sep. 30, 1998 7% 19 573 8% 21 575

Oct. 1, 1998—Dec. 31, 1998 7% 19 573 8% 21 575

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 - PRESENT

NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

1995–1 C.B. RATE TABLE PAGE

Jan. 1, 1999—Mar. 31, 1999 7% 19 573

Apr. 1, 1999—Jun. 30, 1999 8% 21 575

Jul. 1, 1999—Sep. 30, 1999 8% 21 575

Oct. 1, 1999—Dec. 31, 1999 8% 21 575

Jan. 1, 2000—Mar. 31, 2000 8% 69 623

Apr. 1, 2000—Jun. 30, 2000 9% 71 625

Jul. 1, 2000—Sep. 30, 2000 9% 71 625

Oct. 1, 2000—Dec. 31, 2000 9% 71 625

Jan. 1, 2001—Mar. 31, 2001 9% 23 577

Apr. 1, 2001—Jun. 30, 2001 8% 21 575

Jul. 1, 2001—Sep. 30, 2001 7% 19 573

Oct. 1, 2001—Dec. 31, 2001 7% 19 573

Jan. 1, 2002—Mar. 31, 2002 6% 17 571

Apr. 1, 2002—Jun. 30, 2002 6% 17 571

Jul. 1, 2002—Sep. 30, 2002 6% 17 571

Oct. 1, 2002—Dec. 31, 2002 6% 17 571

Jan. 1, 2003—Mar. 31, 2003 5% 15 569

Apr. 1, 2003—Jun. 30, 2003 5% 15 569

Jul. 1, 2003—Sep. 30, 2003 5% 15 569

Oct. 1, 2003—Dec. 31, 2003 4% 13 567

Jan. 1, 2004—Mar. 31, 2004 4% 61 615

Apr. 1, 2004—Jun. 30, 2004 5% 63 617

Jul. 1, 2004—Sep. 30, 2004 4% 61 615

Oct. 1, 2004—Dec. 31, 2004 5% 63 617

Jan. 1, 2005—Mar. 31, 2005 5% 15 569

Apr. 1, 2005—Jun. 30, 2005 6% 17 571

Jul. 1, 2005—Sep. 30, 2005 6% 17 571

Oct. 1, 2005—Dec. 31, 2005 7% 19 573

Jan. 1, 2006—Mar. 31, 2006 7% 19 573

December 23, 2013 808 Bulletin No. 2013–52

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 - PRESENT

NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

1995–1 C.B. RATE TABLE PAGE

Apr. 1, 2006—Jun. 30, 2006 7% 19 573

Jul. 1, 2006—Sep. 30, 2006 8% 21 575

Oct. 1, 2006—Dec. 31, 2006 8% 21 575

Jan. 1, 2007—Mar. 31, 2007 8% 21 575

Apr. 1, 2007—Jun. 30, 2007 8% 21 575

Jul. 1, 2007—Sep. 30, 2007 8% 21 575

Oct. 1, 2007—Dec. 31, 2007 8% 21 575

Jan. 1, 2008—Mar. 31, 2008 7% 67 621

Apr. 1, 2008—Jun. 30, 2008 6% 65 619

Jul. 1, 2008—Sep. 30, 2008 5% 63 617

Oct. 1, 2008—Dec. 31, 2008 6% 65 619

Jan. 1, 2009—Mar. 31, 2009 5% 15 569

Apr. 1, 2009—Jun. 30, 2009 4% 13 567

Jul. 1, 2009—Sep. 30, 2009 4% 13 567

Oct. 1, 2009—Dec. 31, 2009 4% 13 567

Jan. 1, 2010—Mar. 31, 2010 4% 13 567

Apr. 1, 2010—Jun. 30, 2010 4% 13 567

Jul. 1, 2010—Sep. 30, 2010 4% 13 567

Oct. 1, 2010—Dec. 31, 2010 4% 13 567

Jan. 1, 2011—Mar. 31, 2011 3% 11 565

Apr. 1, 2011—Jun. 30, 2011 4% 13 567

Jul. 1, 2011—Sep. 30, 2011 4% 13 567

Oct. 1, 2011—Dec. 31, 2011 3% 11 565

Jan. 1, 2012—Mar. 31, 2012 3% 59 613

Apr. 1, 2012—Jun. 30, 2012 3% 59 613

Jul. 1, 2012—Sep. 30, 2012 3% 59 613

Oct. 1, 2012—Dec. 31, 2012 3% 59 613

Jan. 1, 2013—Mar. 31, 2013 3% 11 565

Apr. 1, 2013—Jun. 30, 2013 3% 11 565

Jul. 1, 2013—Sep. 30, 2013 3% 11 565

Oct. 1, 2013—Dec. 31, 2013 3% 11 565

Jan. 1, 2014—Mar. 31, 2014 3% 11 565

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 - PRESENT

CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS UNDERPAYMENTS

1995–1 C.B. 1995–1 C.B. RATE TABLE PG RATE TABLE PG

Jan. 1, 1999—Mar. 31, 1999 6% 17 571 7% 19 573

Apr. 1, 1999—Jun. 30, 1999 7% 19 573 8% 21 575

Bulletin No. 2013–52 809 December 23, 2013

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 - PRESENT

CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS UNDERPAYMENTS

1995–1 C.B. 1995–1 C.B. RATE TABLE PG RATE TABLE PG

Jul. 1, 1999—Sep. 30, 1999 7% 19 573 8% 21 575

Oct. 1, 1999—Dec. 31, 1999 7% 19 573 8% 21 575

Jan. 1, 2000—Mar. 31, 2000 7% 67 621 8% 69 623

Apr. 1, 2000—Jun. 30, 2000 8% 69 623 9% 71 625

Jul. 1, 2000—Sep. 30, 2000 8% 69 623 9% 71 625

Oct. 1, 2000—Dec. 31, 2000 8% 69 623 9% 71 625

Jan. 1, 2001—Mar. 31, 2001 8% 21 575 9% 23 577

Apr. 1, 2001—Jun. 30, 2001 7% 19 573 8% 21 575

Jul. 1, 2001—Sep. 30, 2001 6% 17 571 7% 19 573

Oct. 1, 2001—Dec. 31, 2001 6% 17 571 7% 19 573

Jan. 1, 2002—Mar. 31, 2002 5% 15 569 6% 17 571

Apr. 1, 2002—Jun. 30, 2002 5% 15 569 6% 17 571

Jul. 1, 2002—Sep. 30, 2002 5% 15 569 6% 17 571

Oct. 1, 2002—Dec. 31, 2002 5% 15 569 6% 17 571

Jan. 1, 2003—Mar. 31, 2003 4% 13 567 5% 15 569

Apr. 1, 2003—Jun. 30, 2003 4% 13 567 5% 15 569

Jul. 1, 2003—Sep. 30, 2003 4% 13 567 5% 15 569

Oct. 1, 2003—Dec. 31, 2003 3% 11 565 4% 13 567

Jan. 1, 2004—Mar. 31, 2004 3% 59 613 4% 61 615

Apr. 1, 2004—Jun. 30, 2004 4% 61 615 5% 63 617

Jul. 1, 2004—Sep. 30, 2004 3% 59 613 4% 61 615

Oct. 1, 2004—Dec. 31, 2004 4% 61 615 5% 63 617

Jan. 1, 2005—Mar. 31, 2005 4% 13 567 5% 15 569

Apr. 1, 2005—Jun. 30, 2005 5% 15 569 6% 17 571

Jul. 1, 2005—Sep. 30, 2005 5% 15 569 6% 17 571

Oct. 1, 2005—Dec. 31, 2005 6% 17 571 7% 19 573

Jan. 1, 2006—Mar. 31, 2006 6% 17 571 7% 19 573

Apr. 1, 2006—Jun. 30, 2006 6% 17 571 7% 19 573

Jul. 1, 2006—Sep. 30, 2006 7% 19 573 8% 21 575

Oct. 1, 2006—Dec. 31, 2006 7% 19 573 8% 21 575

Jan. 1, 2007—Mar. 31, 2007 7% 19 573 8% 21 575

Apr. 1, 2007—Jun. 30, 2007 7% 19 573 8% 21 575

Jul. 1, 2007—Sep. 30, 2007 7% 19 573 8% 21 575

Oct. 1, 2007—Dec. 31, 2007 7% 19 573 8% 21 575

Jan. 1, 2008—Mar. 31, 2008 6% 65 619 7% 67 621

Apr. 1, 2008—Jun. 30, 2008 5% 63 617 6% 65 619

Jul. 1, 2008—Sep. 30, 2008 4% 61 615 5% 63 617

Oct. 1, 2008—Dec. 31, 2008 5% 63 617 6% 65 619

Jan. 1, 2009—Mar. 31, 2009 4% 13 567 5% 15 569

Apr. 1, 2009—Jun. 30, 2009 3% 11 565 4% 13 567

Jul. 1, 2009—Sep. 30, 2009 3% 11 565 4% 13 567

December 23, 2013 810 Bulletin No. 2013–52

TABLE OF INTEREST RATES

FROM JANUARY 1, 1999 - PRESENT

CORPORATE OVERPAYMENTS AND UNDERPAYMENTS

OVERPAYMENTS UNDERPAYMENTS

1995–1 C.B. 1995–1 C.B. RATE TABLE PG RATE TABLE PG

Oct. 1, 2009—Dec. 31, 2009 3% 11 565 4% 13 567

Jan. 1, 2010—Mar. 31, 2010 3% 11 565 4% 13 567

Apr. 1, 2010—Jun. 30, 2010 3% 11 565 4% 13 567

Jul. 1, 2010—Sep. 30, 2010 3% 11 565 4% 13 567

Oct. 1, 2010—Dec. 31, 2010 3% 11 565 4% 13 567

Jan. 1, 2011—Mar. 31, 2011 2% 9 563 3% 11 565

Apr. 1, 2011—Jun. 30, 2011 3% 11 565 4% 13 567

Jul. 1, 2011—Sep. 30, 2011 3% 11 565 4% 13 567

Oct. 1, 2011—Dec. 31, 2011 2% 9 563 3% 11 565

Jan. 1, 2012—Mar. 31, 2012 2% 57 611 3% 59 613

Apr. 1, 2012—Jun. 30, 2012 2% 57 611 3% 59 613

Jul. 1, 2012—Sep. 30, 2012 2% 57 611 3% 59 613

Oct. 1, 2012—Dec. 31, 2012 2% 57 611 3% 59 613

Jan. 1, 2013—Mar. 31, 2013 2% 9 563 3% 11 565

Apr. 1, 2013—Jun. 30, 2013 2% 9 563 3% 11 565

Jul. 1, 2013—Sep. 30, 2013 2% 9 563 3% 11 565

Oct. 1, 2013—Dec. 31, 2013 2% 9 563 3% 11 565

Jan. 1, 2014—Mar. 31, 2014 2% 9 563 3% 11 565

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991 - PRESENT

1995–1 C.B. RATE TABLE PG

Jan. 1, 1991—Mar. 31, 1991 13% 31 585

Apr. 1, 1991—Jun. 30, 1991 12% 29 583

Jul. 1, 1991—Sep. 30, 1991 12% 29 583

Oct. 1, 1991—Dec. 31, 1991 12% 29 583

Jan. 1, 1992—Mar. 31, 1992 11% 75 629

Apr. 1, 1992—Jun. 30, 1992 10% 73 627

Jul. 1, 1992—Sep. 30, 1992 10% 73 627

Oct. 1, 1992—Dec. 31, 1992 9% 71 625

Jan. 1, 1993—Mar. 31, 1993 9% 23 577

Apr. 1, 1993—Jun. 30, 1993 9% 23 577

Jul. 1, 1993—Sep. 30, 1993 9% 23 577

Oct. 1, 1993—Dec. 31, 1993 9% 23 577

Jan. 1, 1994—Mar. 31, 1994 9% 23 577

Apr. 1, 1994—Jun. 30, 1994 9% 23 577

Jul. 1, 1994—Sep. 30, 1994 10% 25 579

Oct. 1, 1994—Dec. 31, 1994 11% 27 581

Bulletin No. 2013–52 811 December 23, 2013

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991 - PRESENT

1995–1 C.B. RATE TABLE PG

Jan. 1, 1995—Mar. 31, 1995 11% 27 581

Apr. 1, 1995—Jun. 30, 1995 12% 29 583

Jul. 1, 1995—Sep. 30, 1995 11% 27 581

Oct. 1, 1995—Dec. 31, 1995 11% 27 581

Jan. 1, 1996—Mar. 31, 1996 11% 75 629

Apr. 1, 1996—Jun. 30, 1996 10% 73 627

Jul. 1, 1996—Sep. 30, 1996 11% 75 629

Oct. 1, 1996—Dec. 31, 1996 11% 75 629

Jan. 1, 1997—Mar. 31, 1997 11% 27 581

Apr. 1, 1997—Jun. 30, 1997 11% 27 581

Jul. 1, 1997—Sep. 30, 1997 11% 27 581

Oct. 1, 1997—Dec. 31, 1997 11% 27 581

Jan. 1, 1998—Mar. 31, 1998 11% 27 581

Apr. 1, 1998—Jun. 30, 1998 10% 25 579

Jul. 1, 1998—Sep. 30, 1998 10% 25 579

Oct. 1, 1998—Dec. 31, 1998 10% 25 579

Jan. 1, 1999—Mar. 31, 1999 9% 23 577

Apr. 1, 1999—Jun. 30, 1999 10% 25 579

Jul. 1, 1999—Sep. 30, 1999 10% 25 579

Oct. 1, 1999—Dec. 31, 1999 10% 25 579

Jan. 1, 2000—Mar. 31, 2000 10% 73 627

Apr. 1, 2000—Jun. 30, 2000 11% 75 629

Jul. 1, 2000—Sep. 30, 2000 11% 75 629

Oct. 1, 2000—Dec. 31, 2000 11% 75 629

Jan. 1, 2001—Mar. 31, 2001 11% 27 581

Apr. 1, 2001—Jun. 30, 2001 10% 25 579

Jul. 1, 2001—Sep. 30, 2001 9% 23 577

Oct. 1, 2001—Dec. 31, 2001 9% 23 577

Jan. 1, 2002—Mar. 31, 2002 8% 21 575

Apr. 1, 2002—Jun. 30, 2002 8% 21 575

Jul. 1, 2002—Sep. 30, 2002 8% 21 575

Oct. 1, 2002—Dec. 31, 2002 8% 21 575

Jan. 1, 2003—Mar. 31, 2003 7% 19 573

Apr. 1, 2003—Jun. 30, 2003 7% 19 573

Jul. 1, 2003—Sep. 30, 2003 7% 19 573

Oct. 1, 2003—Dec. 31, 2003 6% 17 571

Jan. 1, 2004—Mar. 31, 2004 6% 65 619

Apr. 1, 2004—Jun. 30, 2004 7% 67 621

Jul. 1, 2004—Sep. 30, 2004 6% 65 619

Oct. 1, 2004—Dec. 31, 2004 7% 67 621

Jan. 1, 2005—Mar. 31, 2005 7% 19 573

Apr. 1, 2005—Jun. 30, 2005 8% 21 575

Jul. 1, 2005—Sep. 30, 2005 8% 21 575

December 23, 2013 812 Bulletin No. 2013–52

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991 - PRESENT

1995–1 C.B. RATE TABLE PG

Oct. 1, 2005—Dec. 31, 2005 9% 23 577

Jan. 1, 2006—Mar. 31, 2006 9% 23 577

Apr. 1, 2006—Jun. 30, 2006 9% 23 577

Jul. 1, 2006—Sep. 30, 2006 10% 25 579

Oct. 1, 2006—Dec. 31, 2006 10% 25 579

Jan. 1, 2007—Mar. 31, 2007 10% 25 579

Apr. 1, 2007—Jun. 30, 2007 10% 25 579

Jul. 1, 2007—Sep. 30, 2007 10% 25 579

Oct. 1, 2007—Dec. 31, 2007 10% 25 579

Jan. 1, 2008—Mar. 31, 2008 9% 71 625

Apr. 1, 2008—Jun. 30, 2008 8% 69 623

Jul. 1, 2008—Sep. 30, 2008 7% 67 621

Oct. 1, 2008—Dec. 31, 2008 8% 69 623

Jan. 1, 2009—Mar. 31, 2009 7% 19 573

Apr. 1, 2009—Jun. 30, 2009 6% 17 571

Jul. 1, 2009—Sep. 30, 2009 6% 17 571

Oct. 1, 2009—Dec. 31, 2009 6% 17 571

Jan. 1, 2010—Mar. 31, 2010 6% 17 571

Apr. 1, 2010—Jun. 30, 2010 6% 17 571

Jul. 1, 2010—Sep. 30, 2010 6% 17 571

Oct. 1, 2010—Dec. 31, 2010 6% 17 571

Jan. 1, 2011—Mar. 31, 2011 5% 15 569

Apr. 1, 2011—Jun. 30, 2011 6% 17 571

Jul. 1, 2011—Sep. 30, 2011 6% 17 571

Oct. 1, 2011—Dec. 31, 2011 5% 15 569

Jan. 1, 2012—Mar. 31, 2012 5% 63 617

Apr. 1, 2012—Jun. 30, 2012 5% 63 617

Jul. 1, 2012—Sep. 30, 2012 5% 63 617

Oct. 1, 2012—Dec. 31, 2012 5% 63 617

Jan. 1, 2013—Mar. 31, 2013 5% 15 569

Apr. 1, 2013—Jun. 30, 2013 5% 15 569

Jul. 1, 2013—Sep. 30, 2013 5% 15 569

Oct. 1, 2013—Dec. 31, 2013 5% 15 569

Jan. 1, 2014—Mar. 31, 2014 5% 15 569

Bulletin No. 2013–52 813 December 23, 2013

TABLE OF INTEREST RATES FOR CORPORATE

OVERPAYMENTS EXCEEDING $10,000

FROM JANUARY 1, 1995 - PRESENT

1995–1 C.B. RATE TABLE PG

Jan. 1, 1995—Mar. 31, 1995 6.5% 18 572

Apr. 1, 1995—Jun. 30, 1995 7.5% 20 574

Jul. 1, 1995—Sep. 30, 1995 6.5% 18 572

Oct. 1, 1995—Dec. 31, 1995 6.5% 18 572

Jan. 1, 1996—Mar. 31, 1996 6.5% 66 620

Apr. 1, 1996—Jun. 30, 1996 5.5% 64 618

Jul. 1, 1996—Sep. 30, 1996 6.5% 66 620

Oct. 1, 1996—Dec. 31, 1996 6.5% 66 620

Jan. 1, 1997—Mar. 31, 1997 6.5% 18 572

Apr. 1, 1997—Jun. 30, 1997 6.5% 18 572

Jul. 1, 1997—Sep. 30, 1997 6.5% 18 572

Oct. 1, 1997—Dec. 31, 1997 6.5% 18 572

Jan. 1, 1998—Mar. 31, 1998 6.5% 18 572

Apr. 1, 1998—Jun. 30, 1998 5.5% 16 570

Jul. 1. 1998—Sep. 30, 1998 5.5% 16 570

Oct. 1, 1998—Dec. 31, 1998 5.5% 16 570

Jan. 1, 1999—Mar. 31, 1999 4.5% 14 568

Apr. 1, 1999—Jun. 30, 1999 5.5% 16 570

Jul. 1, 1999—Sep. 30, 1999 5.5% 16 570

Oct. 1, 1999—Dec. 31, 1999 5.5% 16 570

Jan. 1, 2000—Mar. 31, 2000 5.5% 64 618

Apr. 1, 2000—Jun. 30, 2000 6.5% 66 620

Jul. 1, 2000—Sep. 30, 2000 6.5% 66 620

Oct. 1, 2000—Dec. 31, 2000 6.5% 66 620

Jan. 1, 2001—Mar. 31, 2001 6.5% 18 572

Apr. 1, 2001—Jun. 30, 2001 5.5% 16 570

Jul. 1, 2001—Sep. 30, 2001 4.5% 14 568

Oct. 1, 2001—Dec. 31, 2001 4.5% 14 568

Jan. 1, 2002—Mar. 31, 2002 3.5% 12 566

Apr. 1, 2002—Jun. 30, 2002 3.5% 12 566

Jul. 1, 2002—Sep. 30, 2002 3.5% 12 566

Oct. 1, 2002—Dec. 31, 2002 3.5% 12 566

Jan. 1, 2003—Mar. 31, 2003 2.5% 10 564

Apr. 1, 2003—Jun. 30, 2003 2.5% 10 564

Jul. 1, 2003—Sep. 30, 2003 2.5% 10 564

Oct. 1, 2003—Dec. 31, 2003 1.5% 8 562

Jan. 1, 2004—Mar. 31, 2004 1.5% 56 610

Apr. 1, 2004—Jun. 30, 2004 2.5% 58 612

Jul. 1, 2004—Sep. 30, 2004 1.5% 56 610

Oct. 1, 2004—Dec. 31, 2004 2.5% 58 612

Jan. 1, 2005—Mar. 31, 2005 2.5% 10 564

Apr. 1, 2005—Jun. 30, 2005 3.5% 12 566

Jul. 1, 2005—Sep. 30, 2005 3.5% 12 566

December 23, 2013 814 Bulletin No. 2013–52

TABLE OF INTEREST RATES FOR CORPORATE

OVERPAYMENTS EXCEEDING $10,000

FROM JANUARY 1, 1995 - PRESENT

1995–1 C.B. RATE TABLE PG

Oct. 1, 2005—Dec. 31, 2005 4.5% 14 568

Jan. 1, 2006—Mar. 31, 2006 4.5% 14 568

Apr. 1, 2006—Jun. 30, 2006 4.5% 14 568

Jul. 1, 2006—Sep. 30, 2006 5.5% 16 570

Oct. 1, 2006—Dec. 31, 2006 5.5% 16 570

Jan. 1, 2007—Mar. 31, 2007 5.5% 16 570

Apr. 1, 2007—Jun. 30, 2007 5.5% 16 570

Jul. 1, 2007—Sep. 30, 2007 5.5% 16 570

Oct. 1, 2007—Dec. 31, 2007 5.5% 16 570

Jan. 1, 2008—Mar. 31, 2008 4.5% 62 616

Apr. 1, 2008—Jun. 30, 2008 3.5% 60 614

Jul. 1, 2008—Sep. 30, 2008 2.5% 58 612

Oct. 1, 2008—Dec. 31, 2008 3.5% 60 614

Jan. 1, 2009—Mar. 31, 2009 2.5% 10 564

Apr. 1, 2009—Jun. 30, 2009 1.5% 8 562

Jul. 1, 2009—Sep. 30, 2009 1.5% 8 562

Oct. 1, 2009—Dec. 31, 2009 1.5% 8 562

Jan. 1, 2010—Mar. 31, 2010 1.5% 8 562

Apr. 1, 2010—Jun. 30, 2010 1.5% 8 562

Jul. 1, 2010—Sep. 30, 2010 1.5% 8 562

Oct. 1, 2010—Dec. 31, 2010 1.5% 8 562

Jan. 1, 2011—Mar. 31, 2011 0.5%*

Apr. 1, 2011—Jun. 30, 2011 1.5% 8 562

Jul. 1, 2011—Sep. 30, 2011 1.5% 8 562

Oct. 1, 2011—Dec. 31, 2011 0.5%*

Jan. 1, 2012—Mar. 31, 2012 0.5%*

Apr. 1, 2012—Jun. 30, 2012 0.5%*

Jul. 1, 2012—Sep. 30, 2012 0.5%*

Oct. 1, 2012—Dec. 31, 2012 0.5%*

Jan. 1, 2013—Mar. 31, 2013 0.5%*

Apr. 1, 2013—Jun. 30, 2013 0.5%*

Jul. 1, 2013—Sep. 30, 2013 0.5%*

Oct. 1, 2013—Dec. 31, 2013 0.5%*

Jan. 1, 2014—Mar. 31, 2014 0.5%*

The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent are published in Appendix A of this Revenue Ruling.

Bulletin No. 2013–52 815 December 23, 2013

Section 7122.— Compromises.

T.D. 9647

DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 300

User Fees for Processing Installment Agreements and Offers in Compromise

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final regulations that provide user fees charged for processing installment agreements and offers in compromise. The final regulations affect taxpayers who wish to pay their federal tax liabilities through installment agreements and offers in compromise.

DATES: Effective date: These regulations are effective on December 2, 2013.

Applicability Date: These regulations apply to installment agreements entered into, restructured, or reinstated and offers in compromise processed on or after January 1, 2014.

FOR FURTHER INFORMATION CONTACT: Concerning cost methodology, Eva Williams, at (202) 803-9728; concerning the regulations, Girish Prasad, at (202) 317-5429 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

This document contains amendments to 26 CFR part 300. On August 30, 2013, a notice of proposed rulemaking (REG– 144990–12) relating to the user fees charged for processing installment agreements and offers in compromise was published in the Federal Register (78 FR 53702). The charging of user fees for services provided by agencies is authorized by the Independent Offices Appropriations Act (IOAA), which is codified at 31 U.S.C. 9701. Under the IOAA and OMB

Circular A-25, 58 FR 38142 (July 15, 1993) (the OMB Circular), the charges must be fair and must be based on the costs to the government, the value of the service to the recipient, the public policy or interest served, and other relevant facts. In general, the amount of a user fee should recover the cost of providing the service, unless the Office of Management and Budget (OMB) grants an exception under the OMB Circular.

The notice of proposed rulemaking proposed to increase the fee under § 300.1 for entering into an installment agreement from $105 to $120 and to increase the fee under § 300.2 for restructuring or reinstating an installment agreement from $45 to $50. Under the notice of proposed rulemaking, the fee for a direct debit installment agreement remained $52, and low-income taxpayers, as defined in § 300.1(b)(2), would continue to pay $43 for any new installment agreement, including a direct debit installment agreement. The notice of proposed rulemaking also proposed to increase the fee under § 300.3 for processing an offer in compromise from $150 to $186. Offers based on doubt as to liability and offers from lowincome taxpayers continue to be excepted from a user fee. The new fee rates for both installment agreements and offers in compromise will be effective January 1, 2014. As explained in the notice of proposed rulemaking, the fees proposed (even after the increase) were substantially less than the full costs to the Government of providing the services and OMB has granted a waiver of the full-cost requirement.

No public hearing on the notice of proposed rulemaking was held because no one requested to speak. One comment was received. After consideration of the comment, this Treasury decision adopts the proposed regulations without change.

Summary of Comment

Under the proposed regulations, the reduced fee of $43 for low-income taxpayers that request a new installment agreement would remain unchanged. This fee is substantially less than the full cost to the IRS of processing a request ($282) and the fee charged to other taxpayers ($120). The commenter commended the IRS for not increasing the user fee for low-income taxpayers, but maintained that any user fee discourages low-income taxpayers from entering into in

stallment agreements. The commenter recommended that the fee be reduced to zero. The commenter stated that many lowincome taxpayers do not have the means to pay the user fee, even at the reduced rate. The commenter stated that low-income taxpayers often enter into installment agreements to pay as little as $20–30 per month based on their available net income, and believed that an upfront $43 fee makes it difficult for such taxpayers to enter into the agreement.

The effect of the fee on low-income taxpayers was considered in 2006 when the installment agreement fee was last updated. The IRS determined that the fee should remain $43 for low-income taxpayers because requiring the full rate would be burdensome and many lowincome taxpayers do not have bank accounts and cannot take advantage of the reduced fee for direct-debit installment agreements.

The user fee is only charged if the taxpayer enters into the agreement and the fee is collected directly from the amounts paid under the terms of the installment agreement. When the IRS grants an installment agreement, the IRS asks that the taxpayer’s first payment be at least the amount of the fee for the agreement. In cases where the installment payments are more than the amount of the fee, a portion of the first payment satisfies the fee and the balance of the first payment is applied toward the liability. In cases where the installment payments are less than the amount of the fee, the full amount of the fee is sought and, in the case of directdebit installment agreements, automatically deducted from the taxpayer’s bank account. The IRS, however, does not default an agreement or otherwise penalize a taxpayer whose first payment is less than the fee but otherwise in the amount of the agreed installments. Rather, the IRS applies the first payment and successive installments against the fee until the fee is paid, and thereafter credits the balance of the payments against the liability. In all cases, the taxpayer does not have to pay both the fee and the installment agreement amount in the first month and the taxpayer does not have to pay the fee in full before the IRS respects the installment agreement. The reduced fee is, therefore, not a barrier to an installment agreement. Nev

December 23, 2013 816 Bulletin No. 2013–52

ertheless, the IRS will be reviewing its procedures in light of the comment and will consider clarifying its communications with taxpayers in accordance with that review.

The commenter also questioned why the fee was waived entirely for lowincome taxpayers making offers in compromise but only reduced for low-income taxpayers entering into installment agreements. The Treasury Department and the IRS believe it is appropriate to charge a reduced fee for a low-income taxpayer to enter into an installment agreement but not to charge a fee to low-income taxpayers for the consideration of an offer in compromise for two reasons. First, unlike the fee for an installment agreement, which is charged only when the taxpayer enters into an installment agreement, the fee for an offer in compromise is charged for the mere consideration of the offer and is not refunded if the offer is not accepted. Therefore, the fee for an offer in compromise could dissuade a low-income taxpayer from making an offer because the taxpayer cannot be assured of reaching an agreement.

Second, a low-income taxpayer making an offer in compromise ostensibly does not have the ability to pay the tax liability in full. Section 7122(d)(3)(A) specifically provides that the IRS should not reject an offer from a low-income taxpayer based solely on the amount of the offer, and requiring a fee from lowincome taxpayers could result in a similar hardship in cases where the taxpayer does not have the ability to pay the fee. In contrast, the vast majority of installment agreements contemplate full payment of the tax liability because the taxpayer has the ability to do so over time. While there are partial-payment installment agreements — those that do not provide for full payment of the liability — they are rarely used.

The commenter also expressed concern that, in order to avoid the fee associated with an installment agreement, a lowincome taxpayer might request to be put into currently-not-collectible (CNC) status rather than enter into an installment agreement. The commenter was concerned, moreover, that without an installment agreement the taxpayer would not pay the tax and would instead incur sub

stantial penalties and interest. Generally, a taxpayer who has the ability to pay his tax liability over time (and thus is eligible for an installment agreement) will not qualify for CNC status. The IRS places a taxpayer in CNC status on the basis of hardship when it determines that the taxpayer cannot pay the tax debts after paying reasonable living expenses. Even a taxpayer in CNC status may, without an installment agreement, pay the tax over time to help limit the accrual of penalties and interest. To the extent a low-income taxpayer has the ability to pay his tax liability over time, entering into an installment agreement would be in his interest because it will most likely reduce the overall amount required to be paid on his tax liability. Under section 6651(h), the penalty rate on the balance owed is reduced while an installment agreement is in effect. Additionally, interest and penalties accruing on an account will be minimized if regular payments are being applied to reduce the tax liability against which penalties and interest are calculated.

Finally, the commenter voiced concern that the reduced fee of $43 may prove to be too large in proportion to relatively smaller balances owed. The purpose of a fee, however, is to recover the cost to the Government for a particular service to the recipient, and the cost to the Government does not vary based on the amount of the balance due. The reduced fee for lowincome taxpayers is therefore appropriate, regardless of the amount of taxes owed.

The commenter made two additional recommendations. The commenter recommended that the IRS implement procedures to require IRS employees to investigate whether a taxpayer making an installment agreement is eligible for the reduced fee for low-income taxpayers. The commenter also recommended that the IRS enhance internal training and establish procedures to better promote viable payment plans and avoid unrealistic installment agreements for low-income taxpayers. These comments do not affect the content of these final regulations, but the IRS will, nevertheless, consider them when updating the procedures for entering into installment agreements. The IRS notes, however, that as of January of 2008, taxpayers meeting the low-income criteria are identified systemically based

on the taxpayer’s last return and the account is identified as being eligible for the reduced user fee.

Special Analyses

It has been determined that these final regulations are not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It is hereby certified that these regulations will not have a significant economic impact on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required. This certification is based on the information that follows. The economic impact of these regulations on any small entity would result from the entity being required to pay a fee prescribed by these regulations to obtain a particular service. The dollar amount of the fee is not, however, substantial enough to have a significant economic impact on any entity subject to the fee. Pursuant to section 7805(f) of the Code, the notice of proposed rulemaking preceding this regulation was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business and no comments were received.

Drafting Information

The principal author of these regulations is Girish Prasad of the Office of Associate Chief Counsel (Procedure and Administration).

Adoption of Amendments to the Regulations

Accordingly, 26 CFR part 300 is amended as follows:

PART 300—USER FEES

Paragraph 1. The authority citation for part 300 continues to read as follows:

Authority: 31 U.S.C. 9701. Par. 2. In § 300.1, paragraphs (b) introductory text and (d) are revised to read as follows:

§ 300.1 Installment agreement fee.

Bulletin No. 2013–52 817 December 23, 2013

(b) Fee . The fee for entering into an installment agreement before January 1, 2014, is $105. The fee for entering into an installment agreement on or after January 1, 2014, is $120. A reduced fee applies in the following situations:

- - - (d) Effective/applicability date . This section is applicable beginning January 1,

Par. 3. In § 300.2, paragraphs (b) and (d) are revised to read as follows:

§ 300.2 Restructuring or reinstatement of installment agreement fee .

- - - (b) Fee . The fee for restructuring or reinstating an installment agreement before January 1, 2014, is $45. The fee for

restructuring or reinstating an installment agreement on or after January 1, 2014, is $50.

- - - (d) Effective/applicability date . This section is applicable beginning January 1,

Par. 4. In § 300.3, paragraphs (b)(1) introductory text and (d) are revised to read as follows:

§ 300.3 Offer to compromise fee .

- - - (b) Fee . (1) The fee for processing an offer to compromise before January 1, 2014, is $150. The fee for processing an offer to compromise on or after January 1, 2014, is $186. No fee will be charged if an offer is—
- - - (d) Effective/applicability date . This section is applicable beginning January 1,

John Dalrymple, Deputy Commissioner for Services and

Enforcement. Approved November 22, 2013

Mark J. Mazur, Assistant Secretary of the Treasury (Tax

Policy).

(Filed by the Office of the Federal Register on November 29, 2013, 8:45a.m., and published in the issue of the Federal Register for December 2, 2013, 78 F.R. 72016)

December 23, 2013 818 Bulletin No. 2013–52