This notice explains the circumstances under which the 4-year replacement period under section 1033(e)(2) is extended for livestock sold on a count of drought. The Appendix to this notice contains a list of counties that experienced exception, extreme, or severe drought conditions during the 12-month period ending August 31, 2016. Taxpayers may use this list to determine if any extension is available.

This document contains final regulations concerning the application of the credit for increasing research activities and provide guidance on software that is developed by (or for the benefit of) the taxpayer primarily for internal use by the taxpayer (internal use software). These final regulations also include examples to illustrate the application of the process of experimentation requirement to software.

This revenue procedure updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of § 401(a), 403(a), 403(b), 408(k), or 408(p) of the Internal Revenue Code (the "Code"), but that have not met these requirements for a period of time. This system, the Employee Plans Compliance Resolution System ("EPCRS"), permits Plan Sponsors to correct these failures and thereby continue to provide their employees with retirement benefits on a tax-favored basis. EPCRS is being modified to take into account the changes in the determination letter application program, as described in Rev. Proc. 2016–37. In addition, this revenue procedure incorporates certain modifications set forth in Rev. Proc. 2015–27 and Rev. Proc. 2015–28, two prior revenue procedures which modified Rev. Proc. 2013–12. The revenue procedure also includes modifications to Rev. Proc. 2013–12 from Rev. Proc. 2016–8. Rev. Proc. 2013–12, Rev. Proc. 2015–27 and Rev. Proc. 2015–28 modified and superseded by this revenue procedure.

This guidance provides procedures to disregard and treat as null and void for transfer tax purposes a qualified terminable interest property (QTIP) election in situations where the QTIP election was not necessary to reduce the estate tax liability to zero. This guidance provides that such procedures are unavailable where QTIP elections are made in estates in which the executor elected portability of the deceased spousal unused exclusion (DSUE) amount under § 2010(c)(5)(A). This guidance modifies and supersedes Rev. Proc. 2001–38, 2001–1 C.B. 1335.

This guidance provides procedures to disregard and treat as null and void for transfer tax purposes a qualified terminable interest property (QTIP) election in situations where the QTIP election was not necessary to reduce the estate tax liability to zero. This guidance provides that such procedures are unavailable where QTIP elections are made in estates in which the executor elected portability of the deceased spousal unused exclusion (DSUE) amount under § 2010(c)(5)(A). This guidance modifies and supersedes Rev. Proc. 2001–38, 2001–1 C.B. 1335.

This procedure publishes the amounts of unused housing credit carryovers allocated to qualified states under section 42(h)(3)(D) of the Code for calendar year 2016.

This notice advises of revisions to the requirements for the reduced user fee for substantially identical letter rulings set forth in section 15.07(2) of Rev. Proc. 2016–1, 2016–1 I.R.B. 1, and further described in paragraph (A)(5)(a) of Appendix A of Rev. Proc. 2016–1. This notice also corrects the amount of the user fee for Foreign Insurance Excise Tax Waiver Agreements stated in paragraph (A)(3)(e) of Appendix A of Rev. Proc. 2016–1.