SECTION 4. ELECTION TO APPLY

2014 ADJUSTED LIMITATIONS TO 2013 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 2013” in Notice 2013–31. A qualified individual incurring housing expenses in such a location during 2013 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 2013” in Notice

2013–31 (and as set forth in the Instructions to Form 2555 (2013)).

Treasury and the IRS anticipate that future annual notices providing adjustments to housing expense limitations will make a similar election available to qualified individuals that incur housing expenses in the immediately preceding year.

Bulletin No. 2014–18 999 April 28, 2014

For example, when adjusted housing expense limitations for 2015 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2014 taxable year.

EFFECT ON OTHER DOCUMENTS

This notice supersedes Notice 2006– 87, 2006–2 C.B. 766, Notice 2007–25, 2007–1 C.B. 760, Notice 2007–77, 2007–2 C.B. 735, Notice 2008–107,

2008–2 C.B. 1266, Notice 2010–27, 2010–1 C.B. 531, Notice 2011–8, 2011–1 C.B. 503, Notice 2012–19, 2012–1 C.B. 440, and Notice 2013–31, 2013–1 C.B. 1099.

EFFECTIVE DATE

This notice is effective for taxable years beginning on or after January 1, 2014. However, as provided in section 4, a taxpayer may elect to apply the 2014

adjusted housing limitations contained in section 3 of this notice to his or her taxable year beginning in 2013.

DRAFTING INFORMATION

The principal author of this notice is Susan E. Massey of the Office of Associate Chief Counsel (International). For further information regarding this notice contact Ms. Massey at (202) 317-6934 (not a toll-free number).

April 28, 2014 1000 Bulletin No. 2014–18