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The ¡°base period T-bill rate¡± for the period ending September 30, 2013, is published, as required by section 995(f) of the Code.

The loss payment patterns and discount factors are set forth for the 2013 accident year. These factors will be used for computing discounted unpaid losses under ¡ì 846 of the Code.

The salvage discount factors are set forth for the 2013 accident year. These factors will be used for computing discounted estimated salvage recoverable under ¡ì 832 of the Code.

These proposed regulations would clarify that amounts paid to an Indian tribe member as remuneration for services performed in a fishing rights-related activity may be treated as compensation for purposes of applying the limits on qualified plan benefits and contributions. These regulations would affect sponsors of, and participants in, employee benefit plans of Indian tribal governments. Comments are requested by February 13, 2014.

2014 cost-of-living adjustments; retirements plans, etc. This notice sets forth certain cost-of-living adjustments effective January 1, 2014, applicable to the dollar limitations on benefits and contributions under qualified retirement plans. Other limitations applicable to deferred compensation plans are also affected by these adjustments under ¡ì 415. Under ¡ì 415(d), the adjustments are to be made pursuant to adjustment procedures which are similar to those used to adjust benefit amounts under ¡ì 215(i)(2)(A) of the Social Security Act. This notice also contains cost-of-living adjustments for several pension-related amounts in restating the data in IR¨C2013¨C86 issued October 31, 2013.

Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in November 2013; the 24-month average segment rates; the funding segment rates applicable for November 2013; and the minimum present value rates for October 2013. The rates in this notice reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112¨C141 (MAP-21).

The IRS has revoked its determination that Corral of Comfort Horse Rescue, Inc. of Palmdale, CA., Positive Energy Foundation of Lincoln, CA., Rainy Day Foundation, Inc. of Washington, D.C., Sunrise Residential and Lifeskills Center of Cincinnati, OH., and Thunder Air Museum Inc, of Lancaster, CA., qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.

Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a DISC shall pay interest each taxable year in an amount equal to the product of the shareholder¡¯s DISC-related deferred tax liability for the year and the ¡°base period T-bill rate.¡± Under section 995(f)(4), the base period T-bill rate is the annual rate of interest determined by the Secretary to be equivalent to the average of the 1-year constant maturity Treasury yields, as published by the Board of Governors of the Federal Reserve System, for the 1-year period ending on September 30 of the calendar year ending with (or of the most recent calendar year ending before) the close of the taxable year of the shareholder. The base period T-bill rate for the period ending September 30, 2013, is 0.140 percent.

Pursuant to section 6222 of the Code, interest must be compounded daily. The table below provides factors for compounding the base period T-bill rate daily for any number of days in the shareholder¡¯s taxable year (including a 52-53 week accounting period) for the 2013 base period T-bill rate. To compute the amount of the interest charge for the shareholder¡¯s taxable year, multiply the amount of the shareholder¡¯s DISC-related deferred tax liability (as defined in section 995(f)(2)) for that year by the base period T-bill rate factor corresponding to the number of days in the shareholder¡¯s taxable year for which the interest charge is being computed. Generally, one would use the factor for 365 days. One would use a different factor only if the shareholder¡¯s taxable year for which the interest charge being determined is a short taxable year, if the shareholder uses the 52-53 week taxable year, or if the shareholder¡¯s taxable year is a leap year.

For the base period T-bill rates for the periods ending in prior years, see Rev. Rul. 2012-22, 2012-48 I.R.B. 565; Rev. Rul. 2011-30, 2011-49 I.R.B. 826; Rev. Rul. 2010-28, 2010-49 I.R.B. 804; Rev. Rul. 2009-36, 2009-47 I.R.B. 650; and Rev. Rul. 2008-51, 2008-2 C.B. 1171.

The principal author of this revenue ruling is Teresa Burridge Hughes of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact Ms. Hughes at (202) 317-6936 (not a toll-free call).

Section 415 of the Internal Revenue Code (the Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost-of-living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under ¡ì 415. Under ¡ì 415(d), the adjustments are to be made pursuant to adjustment procedures which are similar to those used to adjust benefit amounts under ¡ì 215(i)(2)(A) of the Social Security Act.

Effective January 1, 2014, the limitation on the annual benefit under a defined benefit plan under ¡ì 415(b)(1)(A) is increased from $205,000 to $210,000.

For a participant who separated from service before January 1, 2014, the participant¡¯s limitation under a defined benefit plan under ¡ì 415(b)(1)(B) is computed by multiplying the participant¡¯s compensation limitation, as adjusted through 2013, by 1.0155.

The limitation for defined contribution plans under ¡ì 415(c)(1)(A) is increased in 2014 from $51,000 to $52,000.

The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of ¡ì 415(b)(1)(A). After taking into account the applicable rounding rules, the amounts for 2014 are as follows:

The limitation under ¡ì 402(g)(1) on the exclusion for elective deferrals described in ¡ì 402(g)(3) remains unchanged at $17,500.

The annual compensation limit under ¡ì¡ì 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $255,000 to $260,000.

The dollar limitation under ¡ì 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is increased from $165,000 to $170,000.

The dollar amount under ¡ì 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period is increased from $1,035,000 to $1,050,000, while the dollar amount used to determine the lengthening of the 5-year distribution period is increased from $205,000 to $210,000.

The limitation used in the definition of highly compensated employee under ¡ì 414(q)(1)(B) remains unchanged at $115,000.

The dollar limitation under ¡ì 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in ¡ì 401(k)(11) or 408(p) for individuals aged 50 or over remains unchanged at $5,500. The dollar limitation under ¡ì 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in ¡ì 401(k)(11) or 408(p) for individuals aged 50 or over remains unchanged at $2,500.

The annual compensation limitation under ¡ì 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost-of-living adjustments to the compensation limitation under the plan under ¡ì 401(a)(17) to be taken into account, is increased from $380,000 to $385,000.

The compensation amount under ¡ì 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $550.

The limitation under ¡ì 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $12,000.

The limitation on deferrals under ¡ì 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations remains unchanged at $17,500.

The compensation amounts under ¡ì 1.61¨C21(f)(5)(i) of the Income Tax Regulations concerning the definition of ¡°control employee¡± for fringe benefit valuation purposes is increased from $100,000 to $105,000. The compensation amount under ¡ì 1.61¨C21(f)(5)(iii) is increased from $205,000 to $210,000.

The Code also provides that several pension-related amounts are to be adjusted using the cost-of-living adjustment under ¡ì 1(f)(3). After taking the applicable rounding rules into account, the amounts for 2014 are as follows:

The adjusted gross income limitation under ¡ì 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing a joint return is increased from $35,500 to $36,000; the limitation under ¡ì 25B(b)(1)(B) is increased from $38,500 to $39,000; and the limitation under ¡ì¡ì 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $59,000 to $60,000.

The adjusted gross income limitation under ¡ì 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing as head of household is increased from $26,625 to $27,000; the limitation under ¡ì 25B(b)(1)(B) is increased from $28,875 to $29,250; and the limitation under ¡ì¡ì 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $44,250 to $45,000.

The adjusted gross income limitation under ¡ì 25B(b)(1)(A) for determining the retirement savings contribution credit for all other taxpayers is increased from $17,750 to $18,000; the limitation under ¡ì 25B(b)(1)(B) is increased from $19,250 to $19,500; and the limitation under ¡ì¡ì 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $29,500 to $30,000.

The deductible amount under ¡ì 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,500.

The applicable dollar amount under ¡ì 219(g)(3)(B)(i) for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) is increased from $95,000 to $96,000. The applicable dollar amount under ¡ì 219(g)(3)(B)(ii) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $59,000 to $60,000. The applicable dollar amount under ¡ì 219(g)(3)(B)(iii) for a married individual filing a separate return is not subject to the annual cost-of-living adjustment and remains $0. The applicable dollar amount under ¡ì 219(g)(7)(A) for a taxpayer who is not an active participant but whose spouse is an active participant is increased from $178,000 to $181,000.

The adjusted gross income limitation under ¡ì 408A(c)(3)(B)(ii)(I) for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $178,000 to $181,000. The adjusted gross income limitation under ¡ì 408A(c)(3)(B)(ii)(II) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $112,000 to $114,000. The applicable dollar amount under ¡ì 408A(c)(3)(B)(ii)(III) for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0.

The dollar amount under ¡ì 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under ¡ì 430(c)(2)(D) has been made is increased from $1,066,000 to $1,084,000.

The principal author of this notice is John Heil of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding the data in this notice, please contact the Employee Plans¡¯ taxpayer assistance telephone service at 1-877-829-5500 (a toll-free call) between the hours of 8:30 a.m. and 4:30 p.m. Eastern time Monday through Friday. For information regarding the methodology used in arriving at the data in this notice, please e-mail Mr. Heil at [email protected].

This notice provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under ¡ì 430(h)(2) of the Internal Revenue Code. In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under ¡ì 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under ¡ì 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under ¡ì 417(e)(3)(D) as in effect for plan years beginning after 2007. These rates reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112-141 (MAP-21). MAP-21 provides that for purposes of ¡ì 430(h)(2), the segment rates are limited by the applicable maximum percentage or the applicable minimum percentage based on the average of segment rates over a 25 year period.

Generally, except for certain plans under sections 104 and 105 of the Pension Protection Act of 2006, ¡ì 430 of the Code specifies the minimum funding requirements that apply to single employer plans pursuant to ¡ì 412. Section 430(h)(2) specifies the interest rates that must be used to determine a plan¡¯s target normal cost and funding target. Under this provision, present value is generally determined using three 24-month average interest rates (¡°segment rates¡±), each of which applies to cash flows during specified periods. To the extent provided under ¡ì 430(h)(2)(C)(iv), these segment rates are adjusted by the applicable percentage of the 25-year average segment rates for the period ending September 30 of the year preceding the calendar year in which the plan year begins. However, an election may be made under ¡ì 430(h)(2)(D)(ii) to use the monthly yield curve in place of the segment rates.

Notice 2007¨C81, 2007¨C44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Pursuant to Notice 2007-81, the monthly corporate bond yield curve derived from October 2013 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of October 2013 are, respectively, 1.24, 4.47, and 5.52. For plan years beginning on or after January 1, 2012, the 24-month average segment rates determined under ¡ì 430(h)(2)(C)(iv) must be adjusted by the applicable percentage of the corresponding 25-year average segment rates. The 25-year average segment rates for plan years beginning in 2012, 2013, and 2014 were published in Notice 2012-55, 2012-36 I.R.B. 332, Notice 2013¨C11, 2013¨C11 I.R.B. 610, and Notice 2013¨C58, 2013¨C40 I.R.B. 294, respectively. The three 24-month average corporate bond segment rates applicable for November 2013 without adjustment, and the adjusted 24-month average segment rates taking into account the applicable percentages of the corresponding 25-year average segment rates, are as follows:

Generally for plan years beginning after 2007, ¡ì 431 specifies the minimum funding requirements that apply to multiemployer plans pursuant to ¡ì 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in section 431(c)(6)(A), based on the plan¡¯s current liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88¨C73, 1988¨C2 C.B. 383, provides guidelines for determining the weighted average interest rate. The rate of interest on 30-year Treasury securities for October 2013 is 3.68 percent. The Service has determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in August 2043. The following rates were determined for plan years beginning in the month shown below.

In general, the applicable interest rates under ¡ì 417(e)(3)(D) are segment rates computed without regard to a 24-month average. Notice 2007¨C81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum present value segment rates determined for October 2013 are as follows:

The principal author of this notice is Tony Montanaro of the Employee Plans, Tax Exempt and Government Entities Division. Mr. Montanaro may be e-mailed at [email protected].

This revenue procedure prescribes the loss payment patterns and discount factors for the 2013 accident year. These factors will be used to compute discounted unpaid losses under ¡ì 846 of the Internal Revenue Code. See Rev. Proc. 2012¨C44, 2012¨C49 I.R.B. 645, for background concerning the loss payment patterns and application of the discount factors.

This revenue procedure applies to any taxpayer that is required to discount unpaid losses under ¡ì 846 for a line of business using the discount factors published by the Secretary.

.01 The following tables present separately for each line of business the discount factors under ¡ì 846 for accident year 2013. All the discount factors presented in this section were determined using the applicable interest rate under ¡ì 846(c) for 2013, which is 2.16 percent, and by assuming all loss payments occur in the middle of the calendar year.

.02 If the groupings of individual lines of business on the annual statement change, taxpayers must discount unpaid losses on the resulting line of business in accordance with the discounting patterns that would have applied to those unpaid losses based on their classification on the 2010 annual statement. See Rev. Proc. 2012¨C44, 2012¨C49 I.R.B. 645, section 2, for additional background on discounting under ¡ì 846 and the use of the Secretary¡¯s tables.

.03 Section V of Notice 88¨C100, 1988¨C2 C.B. 439, sets forth a composite method for computing discounted unpaid losses for accident years that are not separately reported on the annual statement. The tables separately provide discount factors for taxpayers who elect to use the composite method of section V of Notice 88¨C100. See Rev. Proc. 2002¨C74, 2002¨C2 C.B. 980.

.04 Tables.

The principal author of this revenue procedure is David Remus of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure contact Mr. Remus on (202) 622-3970 (not a toll-free call).

This revenue procedure prescribes the salvage discount factors for the 2013 accident year. These factors must be used to compute discounted estimated salvage recoverable under ¡ì 832 of the Internal Revenue Code.

Section 832(b)(5)(A) requires that all estimated salvage recoverable (including that which cannot be treated as an asset for state accounting purposes) be taken into account in computing the deduction for losses incurred. Under ¡ì 832(b)(5)(A), paid losses are reduced by salvage and reinsurance recovered during the taxable year. This amount is adjusted to reflect changes in discounted unpaid losses on nonlife insurance contracts and in unpaid losses on life insurance contracts. An adjustment is then made to reflect any changes in discounted estimated salvage recoverable and in reinsurance recoverable.

Pursuant to ¡ì 832(b), the amount of estimated salvage is determined on a discounted basis in accordance with procedures established by the Secretary.

This revenue procedure applies to any taxpayer that is required to discount estimated salvage recoverable under ¡ì 832.

.01 The following tables present separately for each line of business the discount factors under ¡ì 832 for the 2013 accident year. All the discount factors presented in this section were determined using the applicable interest rate under ¡ì 846(c) for 2013, which is 2.16 percent, and by assuming all estimated salvage is recovered in the middle of the calendar year.

.02 These tables must be used by taxpayers irrespective of whether they elected to discount unpaid losses using their own experience under ¡ì 846(e).

.03 Section V of Notice 88¨C100, 1988¨C2 C.B. 439, provides a composite discount factor to be used in determining the discounted unpaid losses for accident years that are not separately reported on the annual statement approved by the National Association of Insurance Commissioners. The tables separately provide discount factors for taxpayers who elect to use the composite method. Rev. Proc. 2002¨C74, 2002¨C2 C.B. 980, clarifies that for certain insurance companies subject to tax under ¡ì 831 the composite method for discounting unpaid losses set forth in Notice 88¨C100, section V, is permitted but not required. Rev. Proc. 2002¨C74 further provides alternative methods for computing discounted unpaid losses that are permitted for insurance companies not using the composite method, and sets forth a procedure for insurance companies to obtain automatic consent of the Commissioner to change to one of the methods described therein.

.04 Tables.

The principal author of this revenue procedure is David Remus of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue procedure contact Mr. Remus on (202) 622-3970 (not a toll-free call).

Internal Revenue Service (IRS), Treasury.

Notice of proposed rulemaking.

This document contains proposed regulations that would clarify that amounts paid to an Indian tribe member as remuneration for services performed in a fishing rights-related activity may be treated as compensation for purposes of applying the limits on qualified plan benefits and contributions. These regulations would affect sponsors of, and participants in, employee benefit plans of Indian tribal governments.

Comments and requests for a public hearing must be received by February 13, 2014.

Send submissions to CC:PA:LPD:PR (¸é·¡³Ò¨C120927¨C13), room 5205, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington D.C. 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (¸é·¡³Ò¨C120927¨C13), Courier¡¯s Desk, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, DC, 20224, or sent electronically via the Federal eRulemaking Portal at www.regulations.gov (IRS ¸é·¡³Ò¨C120927¨C13).

Concerning the proposed regulations, Sarah Bolen or Pamela Kinard at (202) 622-6060 or (202) 317-6700; concerning the submission of comments or to request a public hearing, Oluwafunmilayo Taylor, (202) 622-7180 or (202) 317-6901 (not toll-free numbers).

The principal author of these regulations is Sarah R. Bolen, Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and the Treasury Department participated in the development of these regulations.

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

This announcement serves notice to donors that on July 9, 2013, the United States Tax Court entered an order and decision that, effective January 1, 2005, the organization listed below is not recognized as an organization described in section 501(c)(3), is not exempt from tax under section 501(a), and is not an organization described in section 170(c)(2).

The Internal Revenue Service has revoked its determination that the organizations listed below qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986. Generally, the Service will not disallow deductions for contributions made to a listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the Service is not precluded from disallowing a deduction for any contributions made after an organization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation. If on the other hand, a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on December 2, 2013, and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.

This announcement serves notice to potential donors that the organization listed below has recently filed a timely declaratory judgment suit under section 7428 of the Code, challenging revocation of its status as an eligible donee under section 170(c)(2).

Protection under section 7428(c) of the Code begins on the date that the notice of revocation is published in the Internal Revenue Bulletin and ends on the date on which a court first determines that an organization is not described in section 170(c)(2), as more particularly set forth in section 7428(c)(1).

In the case of individual contributors, the maximum amount of contributions protected during this period is limited to $1,000.00, with a husband and wife being treated as one contributor. This protection is not extended to any individual who was responsible, in whole or in part, for the acts or omissions of the organizations that were the basis for the revocation.

This protection also applies (but without limitation as to amount) to organizations described in section 170(c)(2) which are exempt from tax under section 501(a). If the organization ultimately prevails in its declaratory judgment suit, deductibility of contributions would be subject to the normal limitations set forth under section 170.