IRS Revenue Procedure
2002-1

 Code Sec. NONE

<<FULL TEXT>>

26 CFR 601.201: Rulings and determination letters.

REV. PROC. 2002-1

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

SECTION 2. IN WHAT FORM IS GUIDANCE PROVIDED BY THE OFFICES OF ASSOCIATE
CHIEF COUNSEL (CORPORATE), ASSOCIATE CHIEF COUNSEL (FINANCIAL INSTITUTIONS
& PRODUCTS), ASSOCIATE CHIEF COUNSEL (INCOME TAX & ACCOUNTING), ASSOCIATE
CHIEF COUNSEL (INTERNATIONAL), ASSOCIATE CHIEF COUNSEL (PASSTHROUGHS &
SPECIAL INDUSTRIES), ASSOCIATE CHIEF COUNSEL (PROCEDURE AND
ADMINISTRATION), AND DIVISION COUNSEL/ASSOCIATE CHIEF COUNSEL (TAX EXEMPT
AND GOVERNMENT ENTITIES)?
.01 Letter ruling
.02 Closing agreement
.03 Determination letter
.04 Information letter
.05 Revenue ruling
.06 Oral guidance
(1) No oral rulings, and no written rulings in response to oral
requests
(2) Discussion possible on substantive issues

SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER
THIS PROCEDURE?
.01 Issues under the jurisdiction of the Associate Chief Counsel
(Corporate)
.02 Issues under the jurisdiction of the Associate Chief Counsel
(Financial Institutions & Products)
.03 Issues under the jurisdiction of the Associate Chief Counsel
(Income Tax & Accounting)
.04 Issues under the jurisdiction of the Associate Chief Counsel
(International)
.05 Issues under the jurisdiction of the Associate Chief Counsel
(Passthroughs & Special Industries)
.06 Issues under the jurisdiction of the Associate Chief Counsel
(Procedure and Administration)
.07 Issues under the jurisdiction of the Division Counsel/Associate
Chief Counsel (Tax Exempt and Government Entities)

SECTION 4. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER
DIFFERENT PROCEDURES?
.01 Alcohol, tobacco, and firearms taxes
.02 Employee plans and exempt organizations

SECTION 5. UNDER WHAT CIRCUMSTANCES DOES THE NATIONAL OFFICE ISSUE LETTER
RULINGS?
.01 In income and gift tax matters
.02 A section 301.9100 request for extension of time for making an
election or for other relief
.03 Determinations under section 999(d) of the Internal Revenue Code
.04 In matters involving section 367
.05 In estate tax matters
.06 In matters involving additional estate tax under section 2032A(c)
.07 In matters involving qualified domestic trusts under section 2056A
.08 In generation-skipping transfer tax matters
.09 In employment and excise tax matters
.10 In administrative provisions matters
.11 In Indian tribal government matters
.12 Generally not to business associations or groups
.13 Generally not to foreign governments
.14 Generally not on federal tax consequences of proposed legislation
.15 Issuance of a letter ruling before the issuance of a regulation or
other published guidance

SECTION 6. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION
LETTERS?
.01 In income and gift tax matters
.02 In estate tax matters
.03 In generation-skipping transfer tax matters
.04 In employment and excise tax matters
.05 Circumstances under which determination letters are not issued by
a director
.06 Requests concerning income, estate, or gift tax returns
.07 Attach a copy of determination letter to taxpayer's return
.08 Review of determination letters

SECTION 7. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE HAVE DISCRETION TO
ISSUE LETTER RULINGS AND DETERMINATION LETTERS?
.01 Ordinarily not in certain areas because of factual nature of the
problem
.02 Not on alternative plans or hypothetical situations
.03 Ordinarily not on part of an integrated transaction
.04 Not on frivolous issues
.05 On constructive sales price under section 4216(b) or section
4218(c)
.06 Ordinarily not on which of two entities is the common law employer

SECTION 8. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?
.01 Certain information required in all requests
(1) Complete statement of facts and other information
(2) Copies of all contracts, wills, deeds, agreements,
instruments, other documents, and foreign laws
(3) Analysis of material facts
(4) Statement regarding whether same issue is in an earlier return
(5) Statement regarding whether same or similar issue was
previously ruled on or requested, or is currently pending
(6) Statement regarding interpretation of a substantive provision
of an income or estate tax treaty
(7) Letter from Bureau of Indian Affairs relating to a letter
ruling request for recognition of Indian tribal government
status or status as a political subdivision of an Indian
tribal government
(8) Statement of supporting authorities
(9) Statement of contrary authorities
(10) Statement identifying pending legislation
(11) Statement identifying information to be deleted from copy of
letter ruling or determination letter for public inspection
(12) Signature by taxpayer or authorized representative
(13) Authorized representatives
(14) Power of attorney and declaration of representative
(15) Penalties of perjury statement
(16) Number of copies of request to be submitted
(17) Sample format for a letter ruling request
(18) Checklist for letter ruling requests
.02 Additional information required in certain circumstances
(1) To request separate letter rulings for multiple issues in a
single situation
(2) To designate recipient of original or copy of letter ruling or
determination letter
(3) To request a particular conclusion on a proposed transaction
(4) To request expedited handling
(5) To receive any document related to the letter ruling request
by facsimile transmission (fax)
(6) To submit a request for a letter ruling by fax
(7) To request a conference
(8) To obtain the applicable user fee for substantially identical
letter rulings or identical accounting method changes
.03 Address to send the request
(1) Requests for letter rulings
(2) Requests for determination letters
.04 Pending letter ruling requests
.05 When to attach letter ruling to return
.06 How to check on status of request
.07 Request may be withdrawn or national office may decline to issue
letter ruling
.08 Compliance with Treasury Department Circular No. 230

SECTION 9. WHAT OTHER CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES,
SAFE HARBOR REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES
APPLY TO CERTAIN REQUESTS?
.01 Checklists, guideline revenue procedures, and notices
.02 Safe harbor revenue procedures
.03 Automatic change revenue procedures

SECTION 10. HOW DOES THE NATIONAL OFFICE HANDLE LETTER RULING REQUESTS?
.01 Controls request and refers it to appropriate Associate Chief
Counsel's office or Assistant Chief Counsel's office
.02 Branch representative contacts taxpayer within 21 days
.03 Notifies taxpayer if any issues have been referred to another
branch or office
.04 Determines if transaction can be modified to obtain favorable
letter ruling
.05 Is not bound by informal opinion expressed
.06 Tells taxpayer if request lacks essential information during
initial contact
.07 Requires prompt submission of additional information requested
after initial contact
.08 Near the completion of the ruling process, advises the taxpayer of
conclusions and, if the Service will rule adversely, offers the
taxpayer the opportunity to withdraw the letter ruling request
.09 May request draft of proposed letter ruling near the completion of
the ruling process
.10 Issues separate letter rulings for substantially identical letter
rulings and generally issues a single letter ruling for identical
accounting method changes
.11 Sends a copy of the letter ruling to appropriate Service official

SECTION 11. HOW ARE CONFERENCES SCHEDULED?
.01 Schedules a conference if requested by taxpayer
.02 Permits taxpayer one conference of right
.03 Disallows verbatim recording of conferences
.04 Makes tentative recommendations on substantive issues
.05 May offer additional conferences
.06 Requires written confirmation of information presented at
conference
.07 May schedule a pre-submission conference
.08 Under limited circumstances, may schedule a conference to be held
by telephone

SECTION 12. WHAT EFFECT WILL A LETTER RULING HAVE?
.01 May be relied on subject to limitations
.02 Will not apply to another taxpayer
.03 Will be used by a director in examining the taxpayer's return
.04 May be revoked or modified if found to be in error
.05 Not generally revoked or modified retroactively
.06 Retroactive effect of revocation or modification applied to a
particular transaction
.07 Retroactive effect of revocation or modification applied to a
continuing action or series of actions
.08 Generally not retroactively revoked or modified if related to
sale or lease subject to excise tax
.09 May be retroactively revoked or modified when transaction is
entered into before the issuance of the letter ruling
.10 May be retroactively revoked or modified when transaction is
entered into after a change in material facts
.11 Taxpayer may request that retroactivity be limited
(1) Request for relief under section 7805(b) must be made in
required format
(2) Taxpayer may request a conference on application of section
7805(b)

SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?
.01 Has same effect as a letter ruling
.02 Taxpayer may request that retroactive effect of revocation or
modification be limited
(1) Request for relief under section 7805(b) must be made in
required format
(2) Taxpayer may request a conference on application of section
7805(b)

SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN A FIELD
OFFICE AND THE NATIONAL OFFICE?
.01 Requests for determination letters
.02 No-rule areas
.03 Requests for letter rulings

SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER
RULINGS AND DETERMINATION LETTERS?
.01 Legislation authorizing user fees
.02 Requests to which a user fee applies
.03 Requests to which a user fee does not apply
.04 Exemptions from the user fee requirements
.05 Fee schedule
.06 Applicable user fee for a request involving multiple offices, fee
categories, issues, transactions, or entities
.07 Applicable user fee for substantially identical letter rulings or
identical accounting method changes
.08 Method of payment
.09 Effect of nonpayment or payment of incorrect amount
.10 Refunds of user fee
.11 Request for reconsideration of user fee

SECTION 16. WHAT ARE THE GENERAL PROCEDURES APPLICABLE TO INFORMATION
LETTERS ISSUED BY THE NATIONAL OFFICE?
.01 Will be made available to the public
.02 Deletions made under the Freedom of Information Act
.03 Effect of information letters

SECTION 17. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REV. PROC. 2001-1?

SECTION 18. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER
DOCUMENTS?

SECTION 19. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?

SECTION 20. PAPERWORK REDUCTION ACT

DRAFTING INFORMATION

INDEX

APPENDIX A -- SCHEDULE OF USER FEES

APPENDIX B -- SAMPLE FORMAT FOR A LETTER RULING REQUEST

APPENDIX C -- CHECKLIST FOR A LETTER RULING REQUEST

APPENDIX D -- LIST OF SMALL BUSINESS/SELF-EMPLOYED DIVISION (SB/SE)
COMPLIANCE AREA DIRECTORS FOR REQUESTING DETERMINATION LETTERS


SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE?

This revenue procedure explains how the Service gives guidance to
taxpayers on issues under the jurisdiction of the Associate Chief Counsel
(Corporate), the Associate Chief Counsel (Financial Institutions &
Products), the Associate Chief Counsel (Income Tax & Accounting), the
Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs & Special Industries), the Associate Chief Counsel
(Procedure and Administration), and the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities). It explains the kinds of
guidance and the manner in which guidance is requested by taxpayers and
provided by the Service. A sample format of a request for a letter ruling
is provided in Appendix B.


OPERATING DIVISIONS OF THE SERVICE

The Service includes four operating divisions that are responsible for
meeting the needs of the taxpayers they serve. These operating divisions
are:

(1) Large and Mid-Size Business Division (LMSB), which generally serves
corporations, S corporations, and partnerships with assets in excess of
$10 million;

(2) Small Business/Self-Employed Division (SB/SE), which generally
serves corporations, S corporations, and partnerships with assets less
than or equal to $10 million; estates and trusts; individuals filing an
individual federal income tax return with accompanying Schedule C (Profit
or Loss from Business (Sole Proprietorship)), Schedule E (Supplemental
Income and Loss), Schedule F (Profit or Loss from Farming), Form 2106
(Employee Business Expenses) or Form 2106-EZ (Unreimbursed Employee
Business Expenses); and individuals with international tax returns;

(3) Wage and Investment Division (W&I), which generally serves
individuals with wage and investment income only (and with no
international tax returns) filing an individual federal income tax return
without accompanying Schedule C, E, or F, or Form 2106 or Form 2106-EZ;
and

(4) Tax Exempt and Government Entities Division (TE/GE), which serves
three distinct taxpayer segments: employee plans, exempt organizations,
and government entities.


DESCRIPTION OF TERMS USED IN THIS REVENUE PROCEDURE

For purposes of this revenue procedure--

(1) any reference to director or field office refers to the Director,
Field Operations, LMSB, the Area Director, Field Compliance, SB/SE, or the
Director, Compliance, W&I, as appropriate, and their respective offices
or, when appropriate, the Director, International, LMSB, the Director,
Employee Plans Examinations, the Director, Exempt Organizations
Examinations, the Director, Federal, State & Local Governments, the
Director, Tax Exempt Bonds, or the Director, Indian Tribal Governments,
and their respective offices;

(2) any reference to area office refers to Appeals LMSB Area Office or
Appeals SB/SE-TE/GE Area Office, as appropriate;

(3) the term "taxpayer" includes all persons subject to any provision
of the Internal Revenue Code (including issuers of section 103
obligations) and, when appropriate, their representatives; and

(4) the term "national office" refers to the Office of Associate Chief
Counsel (Corporate), the Office of Associate Chief Counsel (Financial
Institutions & Products), the Office of Associate Chief Counsel (Income
Tax & Accounting), the Office of Associate Chief Counsel (International),
the Office of Associate Chief Counsel (Passthroughs & Special Industries),
the Office of Associate Chief Counsel (Procedure and Administration), or
the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities), as appropriate.


UPDATED ANNUALLY

The revenue procedure is updated annually as the first revenue
procedure of the year, but may be modified or amplified during the year.


SECTION 2. IN WHAT FORM IS GUIDANCE PROVIDED BY THE OFFICES OF ASSOCIATE
CHIEF COUNSEL (CORPORATE), ASSOCIATE CHIEF COUNSEL (FINANCIAL INSTITUTIONS
& PRODUCTS), ASSOCIATE CHIEF COUNSEL (INCOME TAX & ACCOUNTING), ASSOCIATE
CHIEF COUNSEL (INTERNATIONAL), ASSOCIATE CHIEF COUNSEL (PASSTHROUGHS &
SPECIAL INDUSTRIES), ASSOCIATE CHIEF COUNSEL (PROCEDURE AND
ADMINISTRATION), AND DIVISION COUNSEL/ ASSOCIATE CHIEF COUNSEL (TAX EXEMPT
AND GOVERNMENT ENTITIES)?

The Service provides guidance in the form of letter rulings, closing
agreements, determination letters, information letters, revenue rulings,
and oral advice.


LETTER RULING

.01 A "letter ruling" is a written statement issued to a taxpayer by
the national office that interprets and applies the tax laws to the
taxpayer's specific set of facts. A letter ruling includes the written
permission or denial of permission by the national office to a request for
a change in a taxpayer's accounting method or accounting period. Once
issued, a letter ruling may be revoked or modified for any number of
reasons, as explained in section 12 of this revenue procedure, unless it
is accompanied by a "closing agreement."


CLOSING AGREEMENT

.02 A closing agreement is a final agreement between the Service and a
taxpayer on a specific issue or liability. It is entered into under the
authority in section 7121 and is final unless fraud, malfeasance, or
misrepresentation of a material fact can be shown.

A closing agreement may be entered into when it is advantageous to have
the matter permanently and conclusively closed or when a taxpayer can show
that there are good reasons for an agreement and that making the agreement
will not prejudice the interests of the Government. In appropriate cases,
a taxpayer may be asked to enter into a closing agreement as a condition
to the issuance of a letter ruling.

If, in a single case, a closing agreement is requested for each person
in a class of taxpayers, separate agreements are entered into only if the
class consists of 25 or fewer taxpayers. However, if the issue and holding
are identical for the class and there are more than 25 taxpayers in the
class, a "mass closing agreement" will be entered into with the taxpayer
who is authorized by the others to represent the class.


DETERMINATION LETTER

.03 A "determination letter" is a written statement issued by a
director that applies the principles and precedents previously announced
by the national office to a specific set of facts. It is issued only when
a determination can be made based on clearly established rules in the
statute, a tax treaty, or the regulations, or based on a conclusion in a
revenue ruling, opinion, or court decision published in the Internal
Revenue Bulletin that specifically answers the questions presented.

A determination letter does not include assistance provided by the U.S.
competent authority pursuant to the mutual agreement procedure in tax
treaties as set forth in Rev. Proc. 96-13, 1996-1 C.B. 616.


INFORMATION LETTER

.04 An "information letter" is a statement issued either by the
national office or by a director. It calls attention to a well-established
interpretation or principle of tax law (including a tax treaty) without
applying it to a specific set of facts. An information letter may be
issued if the taxpayer's inquiry indicates a need for general information
or if the taxpayer's request does not meet the requirements of this
revenue procedure and the Service thinks general information will help the
taxpayer. The taxpayer should provide a daytime telephone number with the
taxpayer's request for an information letter. An information letter is
advisory only and has no binding effect on the Service.


REVENUE RULING

.05 A "revenue ruling" is an interpretation by the Service that has
been published in the Internal Revenue Bulletin. It is the conclusion of
the Service on how the law is applied to a specific set of facts. Revenue
rulings are issued only by the national office and are published for the
information and guidance of taxpayers, Service personnel, and other
interested parties.

Because each revenue ruling represents the conclusion of the Service
regarding the application of law to the entire statement of facts
involved, taxpayers, Service personnel, and other concerned parties are
cautioned against reaching the same conclusion in other cases unless the
facts and circumstances are substantially the same. They should consider
the effect of subsequent legislation, regulations, court decisions,
revenue rulings, notices, and announcements. See Rev. Proc. 89-14, 1989-1
C.B. 814, which states the objectives of, and standards for, the
publication of revenue rulings and revenue procedures in the Internal
Revenue Bulletin.


ORAL GUIDANCE

.06

(1) No oral rulings and no written rulings in response to oral
requests.

The Service does not orally issue letter rulings or determination
letters, nor does it issue letter rulings or determination letters in
response to oral requests from taxpayers. However, Service employees
ordinarily will discuss with taxpayers or their representatives inquiries
regarding whether the Service will rule on particular issues and questions
relating to procedural matters about submitting requests for letter
rulings or determination letters for a particular case.


(2) Discussion possible on substantive issues.

At the discretion of the Service and as time permits, substantive
issues also may be discussed. However, such a discussion will not be
binding on the Service in general or on the Office of Chief Counsel in
particular and cannot be relied upon as a basis for obtaining retroactive
relief under the provisions of section 7805(b).

Substantive tax issues involving the taxpayer that are under
examination, in appeals, or in litigation will not be discussed by Service
employees not directly involved in the examination, appeal, or litigation
of the issues unless the discussion is coordinated with those Service
employees who are directly involved in the examination, appeal, or
litigation of the issues. The taxpayer or the taxpayer's representative
ordinarily will be asked whether the oral request for guidance or
information relates to a matter pending before another office of the
Service or before a federal court.

If a tax issue is not under examination, in appeals, or in litigation,
the tax issue may be discussed even though the issue is affected by a
nontax issue pending in litigation.

A taxpayer may seek oral technical guidance from a taxpayer service
representative in a field office or service center when preparing a return
or report. Oral guidance is advisory only, and the Service is not bound to
recognize it, for example, in the examination of the taxpayer's return.

The Service does not respond to letters seeking to confirm the
substance of oral discussions and the absence of a response to such a
letter is not confirmation of the substance of the letter.

<<END RULING>>



SECTION 3. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER
THIS PROCEDURE?

Taxpayers may request letter rulings, information letters, and closing
agreements under this revenue procedure on issues within the jurisdiction
of the Associate Chief Counsel (Corporate), the Associate Chief Counsel
(Financial Institutions & Products), the Associate Chief Counsel (Income
Tax & Accounting), the Associate Chief Counsel (International), the
Associate Chief Counsel (Passthroughs & Special Industries), the Associate
Chief Counsel (Procedure and Administration), or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). The
national office issues letter rulings to answer written inquiries of
individuals and organizations about their status for tax purposes and the
tax effects of their acts or transactions when appropriate in the interest
of sound tax administration.

Taxpayers also may request determination letters within the
jurisdiction of the appropriate director offices that relate to the Code
sections under the jurisdiction of the Associate Chief Counsel
(Corporate), the Associate Chief Counsel (Financial Institutions &
Products), the Associate Chief Counsel (Income Tax & Accounting), the
Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs & Special Industries), the Associate Chief Counsel
(Procedure and Administration), or the Division Counsel/ Associate Chief
Counsel (Tax Exempt and Government Entities).


ISSUES UNDER THE JURISDICTION OF THE ASSOCIATE CHIEF COUNSEL
(CORPORATE)

.01 Issues under the jurisdiction of the Associate Chief Counsel
(Corporate) include those that involve consolidated returns, corporate
acquisitions, reorganizations, liquidations, redemptions, spinoffs,
transfers to controlled corporations, distributions to shareholders,
corporate bankruptcies, the effect of certain ownership changes on net
operating loss carryovers and other tax attributes, debt vs. equity
determinations, allocation of income and deductions among taxpayers,
acquisitions made to evade or avoid income tax, and certain earnings and
profits questions.


ISSUES UNDER THE JURISDICTION OF THE ASSOCIATE CHIEF COUNSEL (FINANCIAL
INSTITUTIONS & PRODUCTS)

.02 Issues under the jurisdiction of the Associate Chief Counsel
(Financial Institutions & Products) include those that involve income
taxes and accounting method changes of banks, savings and loan
associations, real estate investment trusts (REITs), regulated investment
companies (RICs), real estate mortgage investment conduits (REMICs),
insurance companies and products, and financial products.


ISSUES UNDER THE JURISDICTION OF THE ASSOCIATE CHIEF COUNSEL (INCOME
TAX & ACCOUNTING)

.03 Issues under the jurisdiction of the Associate Chief Counsel
(Income Tax & Accounting) include those that involve recognition and
timing of income and deductions of individuals and corporations, sales and
exchanges, capital gains and losses, installment sales, equipment leasing,
long-term contracts, inventories, the alternative minimum tax, accounting
method changes for these and other miscellaneous issues, and accounting
periods.


ISSUES UNDER THE JURISDICTION OF THE ASSOCIATE CHIEF COUNSEL
(INTERNATIONAL)

.04 Issues under the jurisdiction of the Associate Chief Counsel
(International) include the tax treatment of nonresident aliens and
foreign corporations, withholding of tax on nonresident aliens and foreign
corporations, foreign tax credit, determination of sources of income,
income from sources without the United States, subpart F questions,
domestic international sales corporations (DISCs), foreign sales
corporations (FSCs), international boycott determinations, treatment of
certain passive foreign investment companies, income affected by treaty,
and other matters relating to the activities of non-U.S. persons within
the United States or activities of U.S. or U.S.-related persons outside
the United States.

For the procedures to obtain advance pricing agreements under section
482, see Rev. Proc. 96-53, 1996-2 C.B. 375, as modified by Notice 98-65,
1998-2 C.B. 803.

For the procedures concerning competent authority relief arising under
the application and interpretation of tax treaties between the United
States and other countries, see Rev. Proc. 96-13. However, competent
authority consideration for an advance pricing agreement should be
requested under Rev. Proc. 96-53.


ISSUES UNDER THE JURISDICTION OF THE ASSOCIATE CHIEF COUNSEL
(PASSTHROUGHS & SPECIAL INDUSTRIES)

.05 Issues under the jurisdiction of the Associate Chief Counsel
(Passthroughs & Special Industries) include those that involve income
taxes of S corporations (except accounting periods and methods) and
certain noncorporate taxpayers (including partnerships, common trust
funds, and trusts), entity classification, estate, gift,
generation-skipping transfer, and certain excise taxes, amortization,
depreciation, depletion, and other engineering issues, accounting method
changes for depreciation and amortization, cooperative housing
corporations, farmers' cooperatives (under section 521), the low-income
housing, disabled access, and qualified electric vehicle credits, research
and experimental expenditures, shipowners' protection and indemnity
associations (under section 526), and certain homeowners associations
(under section 528).


ISSUES UNDER THE JURISDICTION OF THE ASSOCIATE CHIEF COUNSEL (PROCEDURE
AND ADMINISTRATION)

.06 Issues under the jurisdiction of the Associate Chief Counsel
(Procedure and Administration) include only those that involve federal tax
procedure and administration, disclosure and privacy law, reporting and
paying taxes, assessing and collecting taxes (including interest and
penalties), abating, crediting, or refunding overassessments or
overpayments of tax, and filing information returns.


ISSUES UNDER THE JURISDICTION OF THE DIVISION COUNSEL/ASSOCIATE CHIEF
COUNSEL (TAX EXEMPT AND GOVERNMENT ENTITIES)

.07 Issues under the jurisdiction of the Division Counsel/Associate
Chief Counsel (Tax Exempt and Government Entities) include those that
involve income tax and other tax aspects of executive compensation and
employee benefit programs (other than those within the jurisdiction of the
Commissioner, Tax Exempt and Government Entities Division), employment
taxes, taxes on self-employment income, tax-exempt obligations, mortgage
credit certificates, Qualified Zone Academy Bonds (QZADS), and federal,
state, local, and Indian tribal governments.


SECTION 4. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER
DIFFERENT PROCEDURES?

ALCOHOL, TOBACCO, AND FIREARMS TAXES

.01 The procedures for obtaining letter rulings, etc., that apply to
federal alcohol, tobacco, and firearms taxes under subtitle E of the Code
are under the jurisdiction of the Bureau of Alcohol, Tobacco and Firearms.


EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS

.02 The procedures for obtaining letter rulings, determination letters,
etc., on employee plans and exempt organizations are under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division. See Rev. Proc. 2002-4, this Bulletin. See also Rev. Proc.
2002-6, this Bulletin, for the procedures for issuing determination
letters on the qualified status of pension, profit-sharing, stock bonus,
annuity, and employee stock ownership plans under sections 401, 403(a),
409, and 4975(e)(7), and the status for exemption of any related trusts or
custodial accounts under section 501(a).

For the user fee requirements applicable to requests for letter
rulings, determination letters, etc., under the jurisdiction of the
Commissioner, Tax Exempt and Government Entities Division, see Rev. Proc.
2002-8, this Bulletin.


SECTION 5. UNDER WHAT CIRCUMSTANCES DOES THE NATIONAL OFFICE ISSUE LETTER
RULINGS?

IN INCOME AND GIFT TAX MATTERS

.01 In income and gift tax matters, the national office generally
issues a letter ruling on a proposed transaction and on a completed
transaction if the letter ruling request is submitted before the return is
filed for the year in which the transaction that is the subject of the
request was completed.

(1) CIRCUMSTANCES UNDER WHICH A LETTER RULING IS NOT ORDINARILY ISSUED.
The national office ordinarily does not issue a letter ruling if, at the
time the letter ruling is requested, the identical issue is involved in
the taxpayer's return for an earlier period and that issue--

(a) is being examined by a director;

(b) is being considered by an area office;

(c) is pending in litigation in a case involving the taxpayer or a
related taxpayer;

(d) has been examined by a director or considered by an area office and
the statutory period of limitations on assessment or on filing a claim for
refund or credit of tax has not expired; or

(e) has been examined by a director or considered by an area office and
a closing agreement covering the issue or liability has not been entered
into by a director or by an area office.


If a return dealing with an issue for a particular year is filed while
a request for a letter ruling on that issue is pending, the national
office will issue the letter ruling unless it is notified by the taxpayer
or otherwise learns that an examination of that issue or the identical
issue on an earlier year's return has been started by a director. See
section 8.04 of this revenue procedure. However, even if an examination
has begun, the national office ordinarily will issue the letter ruling if
the director agrees, by memorandum, to the issuance of the letter ruling.

(2) NO LETTER RULING ON A PROPERTY CONVERSION AFTER RETURN FILED. The
national office does not issue a letter ruling on the replacement of
involuntarily converted property, whether or not the property has been
replaced, if the taxpayer has already filed a return for the taxable year
in which the property was converted. However, the director may issue a
determination letter in this case. See section 6.01 of this revenue
procedure.

(3) CERTAIN LATE S CORPORATION AND RELATED ELECTIONS. In lieu of
requesting a letter ruling under this revenue procedure, a taxpayer may
obtain relief for certain late S corporation and related elections by
following the procedures in Rev. Proc. 98-55, 1998-2 C.B. 643, or Rev.
Proc. 97-48, 1997-2 C.B. 521. A request made pursuant to Rev. Proc. 98-55
or Rev. Proc. 97-48 does not require payment of any user fee. See section
3.05 of Rev. Proc. 98-55, section 3 of Rev. Proc. 97-48, and section
15.03(2) of this revenue procedure.


A SECTION 301.9100 REQUEST FOR EXTENSION OF TIME FOR MAKING AN ELECTION
OR FOR OTHER RELIEF

.02 The national office will consider a request for an extension of
time for making an election or other application for relief under section
301.9100-3 of the Procedure and Administration Regulations. Even if
submitted after the return covering the issue presented in the section
301.9100 request has been filed and even if submitted after an examination
of the return has begun or after the issues in the return are being
considered by an area office or a federal court, a section 301.9100
request is a letter ruling request. Therefore, the section 301.9100
request should be submitted pursuant to this revenue procedure.

However, an election made pursuant to section 301.9100-2 is not a
letter ruling request and does not require payment of any user fee. See
section 301.9100-2(d) and section 15.03(1) of this revenue procedure. Such
an election pertains to an automatic extension of time.

(1) FORMAT OF REQUEST. A section 301.9100 request (other than an
election made pursuant to section 301.9100-2) must be in the general form
of, and meet the general requirements for, a letter ruling request. These
requirements are given in section 8 of this revenue procedure. In
addition, the section 301.9100 request must include the information
required by section 301.9100-3(e).

(2) PERIOD OF LIMITATIONS. The running of any applicable period of
limitations is not suspended for the period during which a section
301.9100 request has been filed. See section 301.9100-3(d)(2). If the
period of limitation on assessment under section 6501(a) for the taxable
year in which an election should have been made or any taxable year that
would have been affected by the election had it been timely made will
expire before receipt of a section 301.9100 letter ruling, the Service
ordinarily will not issue a section 301.9100 ruling. See section
301.9100-3(c)(1)(ii). Therefore, the taxpayer must secure a consent under
section 6501(c)(4) to extend the period of limitation on assessment. Note
that the filing of a claim for refund under section 6511 does not extend
the period of limitation on assessment. If section 301.9100 relief is
granted, the Service may require the taxpayer to consent to an extension
of the period of limitation on assessment. See section 301.9100-3(d)(2).

(3) TAXPAYER MUST NOTIFY NATIONAL OFFICE IF EXAMINATION OF RETURN
BEGINS WHILE REQUEST IS PENDING. If the Service starts an examination of
the taxpayer's return for the taxable year in which an election should
have been made or any taxable year that would have been affected by the
election had it been timely made while a section 301.9100 request is
pending, the taxpayer must notify the national office. See section
301.9100-3(e)(4)(i) and section 8.04(1)(b) of this revenue procedure.

(4) NATIONAL OFFICE WILL NOTIFY THE DIRECTOR, APPEALS OFFICER, OR
GOVERNMENT COUNSEL OF A SECTION 301.9100 REQUEST IF RETURN IS BEING
EXAMINED BY A FIELD OFFICE OR IS BEING CONSIDERED BY AN AREA OFFICE OR A
FEDERAL COURT. If the taxpayer's return for the taxable year in which an
election should have been made or any taxable year that would have been
affected by the election had it been timely made is being examined by a
field office or considered by an area office or a federal court, the
national office will notify the appropriate director, appeals officer, or
government counsel that a section 301.9100 request has been submitted to
the national office. The examining officer, appeals officer, or government
counsel is not authorized to deny consideration of a section 301.9100
request. The letter ruling will be mailed to the taxpayer and a copy will
be sent to the appropriate Service official in the operating division that
has examination jurisdiction of the taxpayer's tax return, appeals
officer, or government counsel.


DETERMINATIONS UNDER SECTION 999(d) OF THE INTERNAL REVENUE CODE

.03 Under Rev. Proc. 77-9, 1977-1 C.B. 542, the Office of Associate
Chief Counsel (International) issues determinations under section 999(d)
that may deny certain benefits of the foreign tax credit, deferral of
earnings of foreign subsidiaries and domestic international sales
corporations (DISCs), and tax exemption for foreign trade income of a
foreign sales corporation or a small foreign sales corporation (FSC or
small FSC) to a person, if that person, a member of a controlled group
(within the meaning of section 993(a)(3)) that includes the person, or a
foreign corporation of which a member of the controlled group is a United
States shareholder, agrees to participate in, or cooperate with, an
international boycott. Requests for determinations under Rev. Proc. 77-9
are letter ruling requests and, therefore, should be submitted to the
Associate Chief Counsel (International) pursuant to this revenue
procedure.


IN MATTERS INVOLVING SECTION 367

.04 Unless the issue is covered by section 7 of this revenue procedure,
the Office of Associate Chief Counsel (International) may issue a letter
ruling under section 367 even if the taxpayer does not request a letter
ruling as to the characterization of the transaction under the
reorganization provisions of the Code. The Office of Associate Chief
Counsel (International) will determine the section 367 consequences of a
transaction based on the taxpayer's characterization of the transaction
but will indicate in the letter ruling that it expresses no opinion as to
the characterization of the transaction under the reorganization. However,
the Office of Associate Chief Counsel (International) may decline to issue
a section 367 ruling in situations in which the taxpayer inappropriately
characterizes the transaction under the reorganization provisions.


IN ESTATE TAX MATTERS

.05 In general, the national office issues prospective letter rulings
on transactions affecting the estate tax on the prospective estate of a
living person and affecting the estate tax on the estate of a decedent
before the decedent's estate tax return is filed. The national office will
not issue letter rulings for prospective estates on computations of tax,
actuarial factors, and factual matters.

If the taxpayer is requesting a letter ruling regarding a decedent's
estate tax and the estate tax return is due to be filed before the letter
ruling is expected to be issued, the taxpayer should obtain an extension
of time for filing the return and should notify the national office branch
considering the letter ruling request that an extension has been obtained.

In limited circumstances, the national office will consider a request
for an estate tax letter ruling after the return is filed but before the
return is examined. In such a case, the taxpayer must disclose on the
return that a letter ruling has been requested, attach a copy of the
pending letter ruling request to the return, and notify the national
office that the return has been filed. See section 8.04 of this revenue
procedure. The national office will make every effort to issue the letter
ruling within 3 months of the date the return was filed.

In limited circumstances, the taxpayer requests a letter ruling after
the return is filed but before the return is examined. In such a case, the
taxpayer must state in the letter ruling request that the return has been
filed but has not been examined, and must also notify the director having
jurisdiction over this return that a letter ruling has been requested and
provide a copy of the letter ruling request to the director. If the
director agrees to the consideration of the letter ruling request by the
national office, the national office will make every effort to issue the
letter ruling within 3 months of the date the letter ruling request was
filed.

If the letter ruling cannot be issued within the 3-month period, the
national office will notify the director having jurisdiction over the
return, who may, by memorandum to the national office, grant an additional
period for the issuance of the letter ruling.


IN MATTERS INVOLVING ADDITIONAL ESTATE TAX UNDER SECTION 2032A(c)

.06 In matters involving additional estate tax under section 2032A(c),
the national office issues letter rulings on proposed transactions and on
completed transactions that occurred before the return is filed.


IN MATTERS INVOLVING QUALIFIED DOMESTIC TRUSTS UNDER SECTION 2056A

.07 In matters involving qualified domestic trusts under section 2056A,
the national office issues letter rulings on proposed transactions and on
completed transactions that occurred before the return is filed.


IN GENERATION-SKIPPING TRANSFER TAX MATTERS

.08 In general, the national office issues letter rulings on proposed
transactions that affect the generation-skipping transfer tax and on
completed transactions that occurred before the return is filed. In the
case of a generation-skipping trust or trust equivalent, letter rulings
are issued either before or after the trust or trust equivalent has been
established. The national office will issue letter rulings on the
application of the effective date rules for generation-skipping transfer
tax (section 1433 of the Tax Reform Act of 1986, 1986-3 (Vol. 1) C.B. 1,
648) to wills, trusts, and trust equivalents in existence on October 22,
1986, and to generation-skipping transfers taking place on or before
October 22, 1986.


IN EMPLOYMENT AND EXCISE TAX MATTERS

.09 In employment and excise tax matters, the national office issues
letter rulings on proposed transactions and on completed transactions
either before or after the return is filed for those transactions.

Requests regarding employment status (employer/employee relationship)
from federal agencies and instrumentalities should be submitted directly
to the national office. Requests regarding employment status from other
taxpayers must first be submitted to the appropriate Service office listed
on the current Form SS-8 (Rev. January 2001). See section 6.04 of this
revenue procedure. Generally, the employer is the taxpayer and requests
the letter ruling. However, if the worker asks for the letter ruling, both
the worker and the employer are considered to be the taxpayer and both are
entitled to the letter ruling.

The national office usually will not issue a letter ruling if, at the
time the letter ruling is requested, the identical issue is involved in
the taxpayer's return for an earlier period and that issue--

(1) is being examined by a director;

(2) is being considered by an area office;

(3) is pending in litigation in a case involving the taxpayer or a
related taxpayer;

(4) has been examined by a director or considered by an area office and
the statutory period of limitations on assessment or on filing a claim for
refund or credit of tax has not expired; or

(5) has been examined by a director or considered by an area office and
a closing agreement covering the issue or liability has not been entered
into by a director or by an area office.


If a return involving an issue for a particular year is filed while a
request for a letter ruling on that issue is pending, the national office
will issue the letter ruling unless it is notified by the taxpayer or
otherwise learns that an examination of that issue or an examination of
the identical issue on an earlier year's return has been started by a
director. See section 8.04 of this revenue procedure. However, even if an
examination has begun, the national office ordinarily will issue the
letter ruling if the director agrees, by memorandum, to the issuance of
the letter ruling.


IN ADMINISTRATIVE PROVISIONS MATTERS

.10

(1) IN GENERAL. The national office issues letter rulings on matters
arising under the Code and related statutes and regulations that involve--

(a) the time, place, manner, and procedures for reporting and paying
taxes;

(b) the assessment and collection of taxes (including interest and
penalties);

(c) the abatement, credit, or refund of an overassessment or
overpayment of tax; or

(d) the filing of information returns.


(2) CIRCUMSTANCES UNDER WHICH A LETTER RULING IS NOT ORDINARILY ISSUED.
The national office ordinarily does not issue a letter ruling if, at the
time the letter ruling is requested, the identical issue is involved in
the taxpayer's return for an earlier period and that issue--

(a) is being examined by a director;

(b) is being considered by an area office;

(c) is pending in litigation in a case involving the taxpayer or a
related taxpayer;

(d) has been examined by a director or considered by an area office and
the statutory period of limitations on assessment or on filing a claim for
refund or credit of tax has not expired; or

(e) has been examined by a director or considered by an area office and
a closing agreement covering the issue or liability has not been entered
into by a director or area office.


If a return involving an issue for a particular year is filed while a
request for a letter ruling on that issue is pending, the national office
will issue the letter ruling unless it is notified by the taxpayer or
otherwise learns that an examination of that issue or an examination of
the identical issue on an earlier year's return has been started by a
director. See section 8.04 of this revenue procedure. But, even if an
examination has begun, the national office ordinarily will issue the
letter ruling if the director agrees, by memorandum, to the issuance of
the letter ruling.


IN INDIAN TRIBAL GOVERNMENT MATTERS

.11 Pursuant to Rev. Proc. 84-37, 1984-1 C.B. 513, as modified by Rev.
Proc. 86-17, 1986-1 C.B. 550, and Rev. Proc. 2002-1 (this revenue
procedure), the Office of Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities) issues determinations recognizing a tribal
entity as an Indian tribal government within the meaning of section
7701(a)(40) or as a political subdivision of an Indian tribal government
under section 7871(d) if it determines, after consultation with the
Secretary of the Interior, that the entity satisfies the statutory
definition of an Indian tribal government or has been delegated
governmental functions of an Indian tribal government. Requests for
determinations under Rev. Proc. 84-37 are letter ruling requests, and,
therefore, should be submitted to the Office of Division Counsel/Associate
Chief Counsel (Tax Exempt and Government Entities) pursuant to this
revenue procedure.

(1) DEFINITION OF INDIAN TRIBAL GOVERNMENT. The term "Indian tribal
government" is defined under section 7701(a)(40) to mean the governing
body of any tribe, band, community, village or group of Indians, or (if
applicable) Alaska Natives, that is determined by the Secretary of the
Treasury, after consultation with the Secretary of the Interior, to
exercise governmental functions. Section 7871(d) provides that, for
purposes of section 7871, a subdivision of an Indian tribal government
shall be treated as a political subdivision of a state if the Secretary of
the Treasury determines, after consultation with the Secretary of the
Interior, that the subdivision has been delegated the right to exercise
one or more of the substantial governmental functions of the Indian tribal
government.

(2) INCLUSION IN LIST OF TRIBAL GOVERNMENTS. Rev. Proc. 2001-15, 2001-5
I.R.B. 465, provides a list of Indian tribal governments that are treated
similarly to states for certain federal tax purposes. Rev. Proc. 84-36,
1984-1 C.B. 510, as modified by Rev. Proc. 86-17, provides a list of
political subdivisions of Indian tribal governments that are treated as
political subdivisions of states for certain federal tax purposes. Under
Rev. Proc. 84-37, tribal governments or subdivisions recognized under
section 7701(a)(40) or section 7871(d) will be included on the list of
recognized tribal government entities in revised versions of Rev. Proc.
2001-15 or Rev. Proc. 84-36.



GENERALLY NOT TO BUSINESS ASSOCIATIONS OR GROUPS

.12 The national office does not issue letter rulings to business,
trade, or industrial associations or to similar groups concerning the
application of the tax laws to members of the group. But groups and
associations may submit suggestions of generic issues that would be
appropriately addressed in revenue rulings. See Rev. Proc. 89-14, which
states the objectives of, and standards for, the publication of revenue
rulings and revenue procedures in the Internal Revenue Bulletin.

The national office, however, may issue letter rulings to groups or
associations on their own tax status or liability if the request meets the
requirements of this revenue procedure.


GENERALLY NOT TO FOREIGN GOVERNMENTS

.13 The national office does not issue letter rulings to foreign
governments or their political subdivisions about the U.S. tax effects of
their laws. The national office also does not issue letter rulings on the
effect of a tax treaty on the tax laws of a treaty country for purposes of
determining the tax of the treaty country. See section 13.02 of Rev. Proc.
96-13, 1996-1 C.B. at 626. However, treaty partners can continue to
address matters such as these under the provisions of the applicable tax
treaty. In addition, the national office may issue letter rulings to
foreign governments or their political subdivisions on their own tax
status or liability under U.S. law if the request meets the requirements
of this revenue procedure.


GENERALLY NOT ON FEDERAL TAX CONSEQUENCES OF PROPOSED LEGISLATION

.14 The national office ordinarily does not issue letter rulings on a
matter involving the federal tax consequences of any proposed federal,
state, local, municipal, or foreign legislation. However, the Office of
Division Counsel/Associate Chief Counsel (Tax Exempt and Government
Entities) may issue letter rulings regarding the effect of proposed state,
local, or municipal legislation upon an eligible deferred compensation
plan under section 457(b) provided that the letter ruling request relating
to the plan complies with the other requirements of this revenue
procedure. The national office also may provide general information in
response to an inquiry.


ISSUANCE OF A LETTER RULING BEFORE THE ISSUANCE OF A REGULATION OR
OTHER PUBLISHED GUIDANCE

.15 Unless the issue is covered by section 7 of this revenue procedure,
Rev. Proc. 2002-3, this Bulletin, or Rev. Proc. 2002-7, this Bulletin, a
letter ruling may be issued before the issuance of a temporary or final
regulation or other published guidance that interprets the provisions of
any act under the following conditions:

(1) ANSWER IS CLEAR OR IS REASONABLY CERTAIN. If the letter ruling
request presents an issue for which the answer seems clear by applying the
statute to the facts or for which the answer seems reasonably certain but
not entirely free from doubt, a letter ruling will be issued.

(2) ANSWER IS NOT REASONABLY CERTAIN. The Service will consider all
letter ruling requests and use its best efforts to issue a letter ruling
even if the answer does not seem reasonably certain where the issuance of
a letter ruling is in the best interests of tax administration.

(3) ISSUE CANNOT BE READILY RESOLVED BEFORE A REGULATION OR ANY OTHER
PUBLISHED GUIDANCE IS ISSUED. A letter ruling will not be issued if the
letter ruling request presents an issue that cannot be readily resolved
before a regulation or any other published guidance is issued. However,
when the Service has closed a regulation project or any other published
guidance project that might have answered the issue or decides not to open
a regulation project or any other published guidance project, the
appropriate branch will consider all letter ruling requests unless the
issue is covered by section 7 of this revenue procedure, Rev. Proc.
2002-3, or Rev. Proc. 2002-7.


SECTION 6. UNDER WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION
LETTERS?

IN INCOME AND GIFT TAX MATTERS

.01 In income and gift tax matters, directors issue determination
letters in response to taxpayers' written requests on completed
transactions that affect returns over which they have examination
jurisdiction. A determination letter usually is not issued for a question
concerning a return to be filed by the taxpayer if the same question is
involved in a return already filed.

Normally, directors do not issue determination letters on the tax
consequences of proposed transactions. However, a director may issue a
determination letter on the replacement, even though not yet made, of
involuntarily converted property under section 1033, if the taxpayer has
filed an income tax return for the year in which the property was
involuntarily converted.


IN ESTATE TAX MATTERS

.02 In estate tax matters, directors issue determination letters in
response to written requests affecting the estate tax returns over which
the directors have examination jurisdiction. They do not issue
determination letters on matters concerning the application of the estate
tax to the prospective estate of a living person.


IN GENERATION-SKIPPING TRANSFER TAX MATTERS

.03 In generation-skipping transfer tax matters, directors issue
determination letters in response to written requests affecting the
generation-skipping transfer tax returns over which the directors have
examination jurisdiction. They do not issue determination letters on
matters concerning the application of the generation-skipping transfer tax
before the distribution or termination takes place.


IN EMPLOYMENT AND EXCISE TAX MATTERS

.04 In employment and excise tax matters, directors issue determination
letters in response to written requests from taxpayers on completed
transactions over which they have examination jurisdiction.

Requests for a determination of employment status (Form SS-8) from
taxpayers (other than federal agencies and instrumentalities) must be
submitted to the appropriate Service office listed on the current Form
SS-8 (Rev. January 2001) and not directly to the national office. See also
section 5.09 of this revenue procedure.


CIRCUMSTANCES UNDER WHICH DETERMINATION LETTERS ARE NOT ISSUED BY A
DIRECTOR

.05 A director will not issue a determination letter in response to any
request if--

(1) it appears that the taxpayer has directed a similar inquiry to the
national office;

(2) the same issue involving the same taxpayer or a related taxpayer is
pending in a case in litigation or before an area office;

(3) the determination letter is requested by an industry, trade
association, or similar group;

(4) the request involves an industry-wide problem.


Under no circumstances will a director issue a determination letter
unless it is clearly shown that the request concerns a return that has
been filed or is required to be filed and over which the director has, or
will have, examination jurisdiction.

A director will not issue a determination letter on an employment tax
question if the specific question for the same taxpayer or a related
taxpayer has been, or is being, considered by the Central Office of the
Social Security Administration or the Railroad Retirement Board.

A director also will not issue a determination letter on determining
constructive sales price under section 4216(b) or section 4218(c), which
deal with special provisions applicable to the manufacturers excise tax.
The national office, however, will issue letter rulings in this area. See
section 7.05 of this revenue procedure.


REQUESTS CONCERNING INCOME, ESTATE, OR GIFT TAX RETURNS

.06 A request received by a director on a question concerning an
income, estate, or gift tax return already filed generally will be
considered in connection with the examination of the return. If a response
is made to the request before the return is examined, it will be
considered a tentative finding in any later examination of that return.


ATTACH A COPY OF DETERMINATION LETTER TO TAXPAYER'S RETURN

.07 A taxpayer who, before filing a return, receives a determination
letter about any transaction that has been consummated and that is
relevant to the return being filed should attach a copy of the
determination letter to the return when it is filed.


REVIEW OF DETERMINATION LETTERS

.08 Determination letters issued under sections 6.01 through 6.04 of
this revenue procedure are not reviewed by the national office before they
are issued. If a taxpayer believes that a determination letter of this
type is in error, the taxpayer may ask the director to reconsider the
matter or to request technical advice from the national office as
explained in Rev. Proc. 2002-2, this Bulletin.


SECTION 7. UNDER WHAT CIRCUMSTANCES DOES THE SERVICE HAVE DISCRETION TO
ISSUE LETTER RULINGS AND DETERMINATION LETTERS?

ORDINARILY NOT IN CERTAIN AREAS BECAUSE OF FACTUAL NATURE OF THE
PROBLEM

.01 The Service ordinarily will not issue letter rulings or
determination letters in certain areas because of the factual nature of
the problem involved or because of other reasons. Rev. Proc. 2002-3 and
Rev. Proc. 2002-7 provide a list of these areas. This list is not
all-inclusive because the Service may decline to issue a letter ruling or
a determination letter when appropriate in the interest of sound tax
administration or on other grounds whenever warranted by the facts or
circumstances of a particular case.

Instead of issuing a letter ruling or determination letter, the
national office or a director may, when it is considered appropriate and
in the best interests of the Service, issue an information letter calling
attention to well-established principles of tax law.


NOT ON ALTERNATIVE PLANS OR HYPOTHETICAL SITUATIONS

.02 A letter ruling or a determination letter will not be issued on
alternative plans of proposed transactions or on hypothetical situations.


ORDINARILY NOT ON PART OF AN INTEGRATED TRANSACTION

.03 The national office ordinarily will not issue a letter ruling on
only part of an integrated transaction. If, however, a part of a
transaction falls under a no-rule area, a letter ruling on other parts of
the transaction may be issued. Before preparing the letter ruling request,
a taxpayer should call the branch having jurisdiction for the matters on
which the taxpayer is seeking a letter ruling to discuss whether the
national office will issue a letter ruling on part of the transaction.

If two or more items or sub-methods of accounting are interrelated, the
national office ordinarily will not issue a letter ruling on a change in
accounting method involving only one of the items or sub-methods.


NOT ON FRIVOLOUS ISSUES

.04 A letter ruling or a determination letter will not be issued on
frivolous issues. A "frivolous issue" is one without basis in fact or law,
or that espouses a position which has been held by the courts to be
frivolous or groundless. Examples of frivolous or groundless issues
include, but are not limited to:

(1) frivolous "constitutional" claims, such as claims that the
requirement to file tax returns and pay taxes constitutes an unreasonable
search barred by the Fourth Amendment; violates Fifth and Fourteenth
Amendment protections of due process; violates Thirteenth Amendment
protections against involuntary servitude; or is unenforceable because the
Sixteenth Amendment does not authorize nonapportioned direct taxes or was
never ratified;

(2) claims that income taxes are voluntary, that the term "income" is
not defined in the Internal Revenue Code, or that preparation and filing
of income tax returns violates the Paperwork Reduction Act;

(3) claims that tax may be imposed only on coins minted under a gold or
silver standard or that receipt of Federal Reserve Notes does not cause an
accretion to wealth;

(4) claims that a person is not taxable on income because he or she
falls within a class entitled to "reparation claims" or an extra-statutory
class of individuals exempt from tax, e.g., "free-born" individuals;

(5) claims that a taxpayer can refuse to pay taxes on the basis of
opposition to certain governmental expenditures;

(6) claims that taxes apply only to federal employees; only to
residents of Puerto Rico, Guam, the U.S. Virgin Islands, the District of
Columbia, or "federal enclaves"; or that the Internal Revenue Code imposes
taxes on U.S. citizens and residents only on income derived from foreign
based activities;

(7) claims that wages or personal service income are not "income," are
"nontaxable receipts," or "are a nontaxable exchange for labor;" or

(8) other claims the courts have characterized as frivolous or
groundless.


ON CONSTRUCTIVE SALES PRICE UNDER SECTION 4216(b) OR SECTION 4218(c)

.05 The national office will issue letter rulings in all cases on the
determination of a constructive sales price under section 4216(b) or
section 4218(c) and in all other cases on prospective transactions if the
law or regulations require a determination of the effect of a proposed
transaction for tax purposes.


ORDINARILY NOT ON WHICH OF TWO ENTITIES IS A COMMON LAW EMPLOYER

.06 A letter ruling or determination letter ordinarily will not be
issued on which of two entities, under common law rules applicable in
determining the employer-employee relationship, is the employer, when one
entity is treating the worker as an employee.


SECTION 8. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?

This section explains the general instructions for requesting letter
rulings and determination letters on all matters. Requests for letter
rulings and determination letters require the payment of the applicable
user fee listed in Appendix A of this revenue procedure. For additional
user fee requirements, see section 15 of this revenue procedure.

Specific and additional instructions also apply to requests for letter
rulings and determination letters on certain matters. Those matters are
listed in section 9 of this revenue procedure followed by a reference
(usually to another revenue procedure) where more information can be
obtained.


CERTAIN INFORMATION REQUIRED IN ALL REQUESTS

.01

Facts

(1) COMPLETE STATEMENT OF FACTS AND OTHER INFORMATION. Each request for
a letter ruling or a determination letter must contain a complete
statement of all facts relating to the transaction. These facts include--

(a) names, addresses, telephone numbers, and taxpayer identification
numbers of all interested parties (the term "all interested parties" does
not mean all shareholders of a widely held corporation requesting a letter
ruling relating to a reorganization or all employees where a large number
may be involved);

(b) the annual accounting period, and the overall method of accounting
(cash or accrual) for maintaining the accounting books and filing the
federal income tax return, of all interested parties;

(c) a description of the taxpayer's business operations;

(d) a complete statement of the business reasons for the transaction;
and

(e) a detailed description of the transaction.


The Service will usually not rule on only one step of a larger
integrated transaction. See section 7.03 of this revenue procedure.
However, if such a letter ruling is requested, the facts, circumstances,
true copies of relevant documents, etc., relating to the entire
transaction must be submitted.


Documents and foreign laws

(2) COPIES OF ALL CONTRACTS, WILLS, DEEDS, AGREEMENTS, INSTRUMENTS,
OTHER DOCUMENTS, AND FOREIGN LAWS.

(a) DOCUMENTS. True copies of all contracts, wills, deeds, agreements,
instruments, trust documents, proposed disclaimers, and other documents
pertinent to the transaction must be submitted with the request.

If the request concerns a corporate distribution, reorganization, or
similar transaction, the corporate balance sheet and profit and loss
statement should also be submitted. If the request relates to a
prospective transaction, the most recent balance sheet and profit and loss
statement should be submitted.

If any document, including any balance sheet and profit and loss
statement, is in a language other than English, the taxpayer must also
submit a certified English translation of the document, along with a true
copy of the document. For guidelines on the acceptability of such
documents, see paragraph (c) of this section 8.01(2).

Each document, other than the request, should be labeled and attached
to the request in alphabetical sequence. Original documents, such as
contracts, wills, etc., should not be submitted because they become part
of the Service's file and will not be returned.

(b) FOREIGN LAWS. The taxpayer must submit with the request a copy of
the relevant parts of all foreign laws, including statutes, regulations,
administrative pronouncements, and any other relevant legal authority. The
documents submitted must be in the official language of the country
involved and must be copied from an official publication of the foreign
government or another widely available, generally accepted publication. If
English is not the official language of the country involved, the taxpayer
must also submit a copy of an English language version of the relevant
parts of all foreign laws. This translation must be: (i) from an official
publication of the foreign government or another widely available,
generally accepted publication; or (ii) a certified English translation
submitted in accordance with paragraph (c) of this section 8.01(2).

The taxpayer must identify the title and date of publication, including
updates, of any widely available, generally accepted publication that the
taxpayer (or the taxpayer's qualified translator) uses as a source for the
relevant parts of the foreign law.

(c) STANDARDS FOR ACCEPTABILITY OF SUBMISSIONS OF DOCUMENTS IN A
LANGUAGE OTHER THAN ENGLISH AND CERTIFIED ENGLISH TRANSLATIONS OF LAWS IN
A LANGUAGE OTHER THAN ENGLISH. The taxpayer must submit with the request
an accurate and complete certified English translation of the relevant
parts of all contracts, wills, deeds, agreements, instruments, trust
documents, proposed disclaimers, or other documents in a language other
than English. If the taxpayer chooses to submit certified English
translations of foreign laws, those translations must be based on an
official publication of the foreign government or another widely
available, generally accepted publication. In either case, the translation
must be that of a qualified translator and must be attested to by the
translator. The attestation must contain: (i) a statement that the
translation submitted is a true and accurate translation of the foreign
language document or law; (ii) a statement as to the attestant's
qualifications as a translator and as to that attestant's qualifications
and knowledge regarding income tax matters; and (iii) the attestant's name
and address.


Analysis of material facts

(3) ANALYSIS OF MATERIAL FACTS. All material facts in documents must be
included, rather than merely incorporated by reference, in the taxpayer's
initial request or in supplemental letters. These facts must be
accompanied by an analysis of their bearing on the issue or issues,
specifying the provisions that apply.


Same issue in an earlier return

(4) STATEMENT REGARDING WHETHER SAME ISSUE IS IN AN EARLIER RETURN. The
request must state whether, to the best of the knowledge of both the
taxpayer and the taxpayer's representatives, the same issue is in an
earlier return of the taxpayer (or in a return for any year of a related
taxpayer within the meaning of section 267 or of a member of an affiliated
group of which the taxpayer is also a member within the meaning of section
1504).

If the statement is affirmative, it must specify whether the issue--

(a) is being examined by a director;

(b) has been examined, but the statutory period of limitation on
assessment or on filing a claim for refund or credit of tax has not
expired;

(c) has been examined, but a closing agreement covering the issue or
liability has not been entered into by a director;

(d) is being considered by an area office in connection with a return
from an earlier period;

(e) has been considered by an area office in connection with a return
from an earlier period, but the statutory period of limitation on
assessment or on filing a claim for refund or credit of tax has not
expired;

(f) has been considered by an area office in connection with a return
from an earlier period, but a closing agreement covering the issue or
liability has not been entered into by an area office; or

(g) is pending in litigation in a case involving the taxpayer or a
related taxpayer.


Same or similar issue previously submitted or currently pending

(5) STATEMENT REGARDING WHETHER SAME OR SIMILAR ISSUE WAS PREVIOUSLY
RULED ON OR REQUESTED, OR IS CURRENTLY PENDING. The request must also
state whether, to the best of the knowledge of both the taxpayer and the
taxpayer's representatives--

(a) the Service previously ruled on the same or a similar issue for the
taxpayer (or a related taxpayer within the meaning of section 267 or a
member of an affiliated group of which the taxpayer is also a member
within the meaning of section 1504) or a predecessor;

(b) the taxpayer, a related taxpayer, a predecessor, or any
representatives previously submitted a request (including an application
for change in accounting method) involving the same or a similar issue to
the Service but withdrew the request before a letter ruling or
determination letter was issued;

(c) the taxpayer, a related taxpayer, or a predecessor previously
submitted a request (including an application for change in accounting
method) involving the same or a similar issue that is currently pending
with the Service; or

(d) at the same time as this request, the taxpayer or a related
taxpayer is presently submitting another request (including an application
for change in accounting method) involving the same or a similar issue to
the Service.


If the statement is affirmative for (a), (b), (c), or (d) of this
section 8.01(5), the statement must give the date the request was
submitted, the date the request was withdrawn or ruled on, if applicable,
and other details of the Service's consideration of the issue.


Interpretation of a substantive provision of an income or estate tax
treaty

(6) STATEMENT REGARDING INTERPRETATION OF A SUBSTANTIVE PROVISION OF AN
INCOME OR ESTATE TAX TREATY. If the request involves the interpretation of
a substantive provision of an income or estate tax treaty, the request
must also state whether--

(a) the tax authority of the treaty jurisdiction has issued a ruling on
the same or similar issue for the taxpayer, a related taxpayer (within the
meaning of section 267 or a member of an affiliated group of which the
taxpayer is also a member within the meaning of section 1504), or any
predecessor;

(b) the same or similar issue for the taxpayer, a related taxpayer, or
any predecessor is being examined, or has been settled, by the tax
authority of the treaty jurisdiction or is otherwise the subject of a
closing agreement in that jurisdiction; and

(c) the same or similar issue for the taxpayer, a related taxpayer, or
any predecessor is being considered by the competent authority of the
treaty jurisdiction.


Letter from Bureau of Indian Affairs relating to Indian tribal
government

(7) LETTER FROM BUREAU OF INDIAN AFFAIRS RELATING TO A LETTER RULING
REQUEST FOR RECOGNITION OF INDIAN TRIBAL GOVERNMENT STATUS OR STATUS AS A
POLITICAL SUBDIVISION OF AN INDIAN TRIBAL GOVERNMENT. To facilitate prompt
action on a letter ruling request for recognition of Indian tribal
government status or status as a political subdivision of an Indian tribal
government, the taxpayer is encouraged to submit with the letter ruling
request a letter from the Department of the Interior, Bureau of Indian
Affairs ("BIA"), verifying that the tribe is recognized by BIA as an
Indian tribe and that the tribal government exercises governmental
functions or that the political subdivision of the Indian tribal
government has been delegated substantial governmental functions. A letter
ruling request that does not contain this letter from BIA cannot be
resolved until the Service obtains a letter from BIA regarding the tribe's
status.

The taxpayer wishing to expedite the letter ruling process may send a
request to verify tribal status to the following address at BIA:

Branch of Tribal Government & Alaska
Division of Indian Affairs
Office of the Solicitor, Mail Stop 6456
U.S. Department of the Interior
1849 C Street, N.W.
Washington, D.C. 20240


Statement of authorities supporting taxpayer's views

(8) STATEMENT OF SUPPORTING AUTHORITIES. If the taxpayer advocates a
particular conclusion, an explanation of the grounds for that conclusion
and the relevant authorities to support it must be included. Even if not
advocating a particular tax treatment of a proposed transaction, the
taxpayer must still furnish views on the tax results of the proposed
transaction and a statement of relevant authorities to support those
views.

In all events, the request must include a statement of whether the law
in connection with the request is uncertain and whether the issue is
adequately addressed by relevant authorities.


Statement of authorities contrary to taxpayer's views

(9) STATEMENT OF CONTRARY AUTHORITIES. The taxpayer is also encouraged
to inform the Service about, and discuss the implications of, any
authority believed to be contrary to the position advanced, such as
legislation (or pending legislation), tax treaties, court decisions,
regulations, notices, revenue rulings, revenue procedures, or
announcements. If the taxpayer determines that there are no contrary
authorities, a statement in the request to this effect would be helpful.
If the taxpayer does not furnish either contrary authorities or a
statement that none exists, the Service in complex cases or those
presenting difficult or novel issues may request submission of contrary
authorities or a statement that none exists. Failure to comply with this
request may result in the Service's refusal to issue a letter ruling or
determination letter.

Identifying and discussing contrary authorities will generally enable
Service personnel to understand the issue and relevant authorities more
quickly. When Service personnel receive the request, they will have before
them the taxpayer's thinking on the effect and applicability of contrary
authorities. This information should make research easier and lead to
earlier action by the Service. If the taxpayer does not disclose and
distinguish significant contrary authorities, the Service may need to
request additional information, which will delay action on the request.


Statement identifying pending legislation

(10) STATEMENT IDENTIFYING PENDING LEGISLATION. At the time of filing
the request, the taxpayer must identify any pending legislation that may
affect the proposed transaction. In addition, if legislation is introduced
after the request is filed but before a letter ruling or determination
letter is issued, the taxpayer must notify the Service.



Deletions statement required by section 6110

(11) STATEMENT IDENTIFYING INFORMATION TO BE DELETED FROM COPY OF
LETTER RULING OR DETERMINATION LETTER FOR PUBLIC INSPECTION. The text of
letter rulings and determination letters is open to public inspection
under section 6110. The Service makes deletions from the text before it is
made available for inspection. To help the Service make the deletions
required by section 6110(c), a request for a letter ruling or
determination letter must be accompanied by a statement indicating the
deletions desired ("deletions statement"). If the deletions statement is
not submitted with the request, a Service representative will tell the
taxpayer that the request will be closed if the Service does not receive
the deletions statement within 21 calendar days. See section 10.06 of this
revenue procedure.

(a) FORMAT OF DELETIONS STATEMENT. A taxpayer who wants only names,
addresses, and identifying numbers to be deleted should state this in the
deletions statement. If the taxpayer wants more information deleted, the
deletions statement must be accompanied by a copy of the request and
supporting documents on which the taxpayer should bracket the material to
be deleted. The deletions statement must indicate the statutory basis
under section 6110(c) for each proposed deletion.

If the taxpayer decides to ask for additional deletions before the
letter ruling or determination letter is issued, additional deletions
statements may be submitted.

(b) LOCATION OF DELETIONS STATEMENT. The deletions statement must not
appear in the request, but instead must be made in a separate document and
placed on top of the request for a letter ruling or determination letter.

(c) SIGNATURE. The deletions statement must be signed and dated by the
taxpayer or the taxpayer's authorized representative. A stamped signature
is not permitted.

(d) ADDITIONAL INFORMATION. The taxpayer should follow the same
procedures above to propose deletions from any additional information
submitted after the initial request. An additional deletions statement,
however, is not required with each submission of additional information if
the taxpayer's initial deletions statement requests that only names,
addresses, and identifying numbers are to be deleted and the taxpayer
wants only the same information deleted from the additional information.

(e) TAXPAYER MAY PROTEST DELETIONS NOT MADE. After receiving from the
Service the notice under section 6110(f)(1) of intention to disclose the
letter ruling or determination letter (including a copy of the version
proposed to be open to public inspection and notation of third-party
communications under section 6110(d)), the taxpayer may protest the
disclosure of certain information in the letter ruling or determination
letter. The taxpayer must send a written statement within 20 calendar days
to the Service office indicated on the notice of intention to disclose.
The statement must identify those deletions that the Service has not made
and that the taxpayer believes should have been made. The taxpayer must
also submit a copy of the version of the letter ruling or determination
letter and bracket the deletions proposed that have not been made by the
Service. Generally, the Service will not consider deleting any material
that the taxpayer did not propose to be deleted before the letter ruling
or determination letter was issued.

Within 20 calendar days after the Service receives the response to the
notice under section 6110(f)(1), the Service will mail to the taxpayer its
final administrative conclusion regarding the deletions to be made. The
taxpayer does not have the right to a conference to resolve any
disagreements concerning material to be deleted from the text of the
letter ruling or determination letter. However, these matters may be taken
up at any conference that is otherwise scheduled regarding the request.

(f) TAXPAYER MAY REQUEST DELAY OF PUBLIC INSPECTION. After receiving
the notice under section 6110(f)(1) of intention to disclose, but within
60 calendar days after the date of notice, the taxpayer may send a request
for delay of public inspection under either section 6110(g)(3) or (4). The
request for delay must be sent to the Service office indicated on the
notice of intention to disclose. A request for delay under section
6110(g)(3) must contain the date on which it is expected that the
underlying transaction will be completed. The request for delay under
section 6110(g)(4) must contain a statement from which the Commissioner of
Internal Revenue may determine that there are good reasons for the delay.

Signature on request (12) Signature by taxpayer or authorized
representative. The request for a letter ruling or determination letter
must be signed and dated by the taxpayer or the taxpayer's authorized
representative. A stamped signature is not permitted.


Authorized representatives

(13) AUTHORIZED REPRESENTATIVES. To sign the request or to appear
before the Service in connection with the request, the taxpayer's
authorized representative must be:


Attorney

(a) An attorney who is a member in good standing of the bar of the
highest court of any state, possession, territory, commonwealth, or the
District of Columbia and who is not currently under suspension or
disbarment from practice before the Service. He or she must file a written
declaration with the Service showing current qualification as an attorney
and current authorization to represent the taxpayer;


Certified public accountant

(b) A certified public accountant who is duly qualified to practice in
any state, possession, territory, commonwealth, or the District of
Columbia and who is not currently under suspension or disbarment from
practice before the Service. He or she must file a written declaration
with the Service showing current qualification as a certified public
accountant and current authorization to represent the taxpayer;


Enrolled agent

(c) An enrolled agent who is a person, other than an attorney or
certified public accountant, that is currently enrolled to practice before
the Service and is not currently under suspension or disbarment from
practice before the Service. He or she must file a written declaration
with the Service showing current enrollment and authorization to represent
the taxpayer. Either the enrollment number or the expiration date of the
enrollment card must be included in the declaration. For the rules on who
may practice before the Service, see Treasury Department Circular No. 230
(31 C.F.R. part 10 (2001));


Enrolled actuary

(d) An enrolled actuary who is a person, other than an attorney or
certified public accountant, that is currently enrolled as an actuary by
the Joint Board for the Enrollment of Actuaries pursuant to 29 U.S.C.
section 1242 and who is not currently under suspension or disbarment from
practice before the Service. He or she must file a written declaration
with the Service showing current qualification as an enrolled actuary and
current authorization to represent the taxpayer. Practice before the
Service as an enrolled actuary is limited to representation with respect
to issues involving sections 401, 403(a), 404, 412, 413, 414, 4971, 6057,
6058, 6059, 6652(e), 6652(f), 6692, and 7805(b); former section 405; and
29 U.S.C. section 1083; or


A person with a "Letter of Authorization"

(e) Any other person, including a foreign representative, who has
received a "Letter of Authorization" from the Director of Practice under
section 10.7(d) of Treasury Department Circular No. 230. A person may make
a written request for a "Letter of Authorization" to: Office of Director
of Practice, SC:DOP, Internal Revenue Service, 1111 Constitution Avenue,
N.W., Washington, D.C. 20224. Section 10.7(d) of Circular No. 230
authorizes the Commissioner to allow an individual who is not otherwise
eligible to practice before the Service to represent another person in a
particular matter.


Employee, general partner, bona fide officer, administrator, trustee,
etc.

(f) The above requirements do not apply to a regular full-time employee
representing his or her employer; to a general partner representing his or
her partnership; to a bona fide officer representing his or her
corporation, association, or organized group; to a trustee, receiver,
guardian, personal representative, administrator, or executor representing
a trust, receivership, guardianship, or estate; or to an individual
representing his or her immediate family.


Preparer of a return

(g) A preparer of a return (other than a person referred to in
paragraph (a), (b), (c), (d), or (e) of this section 8.01(13)) who is not
a full-time employee, general partner, bona fide officer, an
administrator, a trustee, etc., or an individual representing his or her
immediate family may not represent a taxpayer in connection with a letter
ruling or a determination letter. See section 10.7(c) of Treasury
Department Circular No. 230.


Foreign representative

(h) A foreign representative (other than a person referred to in
paragraph (a), (b), (c), (d), or (e) of this section 8.01(13)) is not
authorized to practice before the Service and, therefore, must withdraw
from representing a taxpayer in a request for a letter ruling or a
determination letter. In this situation, the nonresident alien or foreign
entity must submit the request for a letter ruling or a determination
letter on the individual's or the entity's own behalf or through a person
referred to in paragraph (a), (b), (c), (d), or (e) of this section
8.01(13).


Power of attorney and declaration of representative

(14) POWER OF ATTORNEY AND DECLARATION OF REPRESENTATIVE. Any
authorized representative, whether or not enrolled to practice, must also
comply with the conference and practice requirements of the Statement of
Procedural Rules (26 C.F.R. section 601.501-601.509 (2001)), which provide
the rules for representing a taxpayer before the Service. It is preferred
that Form 2848, Power of Attorney and Declaration of Representative, be
used to provide the representative's authorization (Part I of Form 2848,
Power of Attorney) and the representative's qualification (Part II of Form
2848, Declaration of Representative). The name of the person signing Part
I of Form 2848 should also be typed or printed on this form. A stamped
signature is not permitted. An original, a copy, or a facsimile
transmission (fax) of the power of attorney is acceptable so long as its
authenticity is not reasonably disputed. For additional information
regarding the power of attorney form, see section 8.02(2) of this revenue
procedure.

For the requirement regarding compliance with Treasury Department
Circular No. 230, see section 8.08 of this revenue procedure.


Penalties of perjury statement

(15) PENALTIES OF PERJURY STATEMENT.

(a) FORMAT OF PENALTIES OF PERJURY STATEMENT. A request for a letter
ruling or determination letter and any change in the request submitted at
a later time must be accompanied by the following declaration: "Under
penalties of perjury, I declare that I have examined [Insert, as
appropriate: this request or this modification to the request], including
accompanying documents, and, to the best of my knowledge and belief,
[Insert, as appropriate: the request or the modification] contains all the
relevant facts relating to the request, and such facts are true, correct,
and complete."

See section 10.07(1) of this revenue procedure for the penalties of
perjury statement applicable for submissions of additional information.

(b) SIGNATURE BY TAXPAYER. The declaration must be signed and dated by
the taxpayer, not the taxpayer's representative. A stamped signature is
not permitted.

The person who signs for a corporate taxpayer must be an officer of the
corporate taxpayer who has personal knowledge of the facts and whose
duties are not limited to obtaining a letter ruling or determination
letter from the Service. If the corporate taxpayer is a member of an
affiliated group filing consolidated returns, a penalties of perjury
statement must also be signed and submitted by an officer of the common
parent of the group.

The person signing for a trust, a state law partnership, or a limited
liability company must be, respectively, a trustee, general partner, or
member-manager who has personal knowledge of the facts.


Number of copies of request to be submitted

(16) NUMBER OF COPIES OF REQUEST TO BE SUBMITTED. Generally, a taxpayer
needs only to submit one copy of the request for a letter ruling or
determination letter. If, however, more than one issue is presented in the
letter ruling request, the taxpayer is encouraged to submit additional
copies of the request.

Further, two copies of the request for a letter ruling or determination
letter are required if--

(a) the taxpayer is requesting separate letter rulings or determination
letters on different issues as explained later under section 8.02(1) of
this revenue procedure;

(b) the taxpayer is requesting deletions other than names, addresses,
and identifying numbers, as explained in section 8.01(11)(a) of this
revenue procedure (one copy is the request for the letter ruling or
determination letter and the second copy is the deleted version of such
request); or

(c) a closing agreement (as defined in section 2.02 of this revenue
procedure) is being requested on the issue presented.


Sample of a letter ruling request

(17) SAMPLE FORMAT FOR A LETTER RULING REQUEST. To assist a taxpayer or
the taxpayer's representative in preparing a letter ruling request, a
sample format for a letter ruling request is provided in Appendix B. This
format is not required to be used by the taxpayer or the taxpayer's
representative. If the letter ruling request is not identical or similar
to the format in Appendix B, the different format will not defer
consideration of the letter ruling request.


Checklist

(18) CHECKLIST FOR LETTER RULING REQUESTS. The Service will be able to
respond more quickly to a taxpayer's letter ruling request if the request
is carefully prepared and complete. The checklist in Appendix C of this
revenue procedure is designed to assist taxpayers in preparing a request
by reminding them of the essential information and documents to be
furnished with the request. The checklist in Appendix C must be completed
to the extent required by the instructions in the checklist, signed and
dated by the taxpayer or the taxpayer's representative, and placed on top
of the letter ruling request. If the checklist in Appendix C is not
received, a branch representative will ask the taxpayer or the taxpayer's
representative to submit the checklist, which may delay action on the
letter ruling request.

For letter ruling requests on certain matters, specific checklists
supplement the checklist in Appendix C. These checklists are listed in
section 9.01 of this revenue procedure and must also be completed and
placed on top of the letter ruling request along with the checklist in
Appendix C.

Copies of the checklist in Appendix C can be obtained by calling (202)
622-7560 (not a toll-free call) or a copy can be obtained from this
revenue procedure in Internal Revenue Bulletin 2002-1 on the IRS web site
at http://www.irs.ustreas.gov/prod/bus_info/bullet.html. A photocopy of
this checklist may be used.


ADDITIONAL INFORMATION REQUIRED IN CERTAIN CIRCUMSTANCES

.02

Multiple issues

(1) TO REQUEST SEPARATE LETTER RULINGS FOR MULTIPLE ISSUES IN A SINGLE
SITUATION. If more than one issue is presented in a request for a letter
ruling, the Service generally will issue a single letter ruling covering
all the issues. However, if the taxpayer requests separate letter rulings
on any of the issues (because, for example, one letter ruling is needed
sooner than another), the Service will usually comply with the request
unless it is not feasible or not in the best interests of the Service to
do so. A taxpayer who wants separate letter rulings on multiple issues
should make this clear in the request and submit two copies of the
request.

In issuing each letter ruling, the Service will state that it has
issued separate letter rulings or that requests for other letter rulings
are pending.


Power of attorney

(2) TO DESIGNATE RECIPIENT OF ORIGINAL OR COPY OF LETTER RULING OR
DETERMINATION LETTER. Unless the power of attorney provides otherwise, the
Service will send the original of the letter ruling or determination
letter to the taxpayer and a copy of the letter ruling or determination
letter to the taxpayer's representative. In this case, the letter ruling
or determination letter is addressed to the taxpayer. It is preferred that
Form 2848, Power of Attorney and Declaration of Representative, be used to
provide the representative's authorization. See section 8.01(14) of this
revenue procedure.


Copies of letter ruling or determination letter sent to multiple
representatives

(a) TO HAVE COPIES SENT TO MULTIPLE REPRESENTATIVES. When a taxpayer
has more than one representative, the Service will send the copy of the
letter ruling or determination letter to the first representative named on
the most recent power of attorney. If the taxpayer wants an additional
copy of the letter ruling or determination letter sent to the second
representative listed in the power of attorney, the taxpayer must check
the appropriate box on Form 2848. If this form is not used, the taxpayer
must state in the power of attorney that a copy of the letter ruling or
determination letter is to be sent to the second representative listed in
the power of attorney. Copies of the letter ruling or determination
letter, however, will be sent to no more than two representatives.


Original of letter ruling or determination letter sent to taxpayer's
representative

(b) TO HAVE ORIGINAL SENT TO TAXPAYER'S REPRESENTATIVE. A taxpayer may
request that the original of the letter ruling or determination letter be
sent to the taxpayer's representative. In this case, a copy of the letter
ruling or determination letter will be sent to the taxpayer. The letter
ruling or determination letter is addressed to the taxpayer's
representative to whom the original is sent.

If the taxpayer wants the original of the letter ruling or
determination letter sent to the taxpayer's representative, the taxpayer
must check the appropriate box on Form 2848. If this form is not used, the
taxpayer must state in the power of attorney that the original of the
letter ruling or determination letter is to be sent to the taxpayer's
representative. When a taxpayer has more than one representative, the
Service will send the original of the letter ruling or determination
letter to the first representative named in the most recent power of
attorney.


No copy of letter ruling or determination letter sent to taxpayer's
representative

(c) TO HAVE NO COPY SENT TO TAXPAYER'S REPRESENTATIVE. If a taxpayer
does not want a copy of the letter ruling or determination letter sent to
any representative, the taxpayer must check the appropriate box on Form
2848. If this form is not used, the taxpayer must state in the power of
attorney that a copy of the letter ruling or determination letter is not
to be sent to any representative.


"Two-Part" letter ruling requests

(3) TO REQUEST A PARTICULAR CONCLUSION ON A PROPOSED TRANSACTION. A
taxpayer who is requesting a particular conclusion on a proposed
transaction may make the request for a letter ruling in two parts. This
type of request is referred to as a "two-part" letter ruling request. The
first part must include the complete statement of facts and related
documents described in section 8.01 of this revenue procedure. The second
part must include a summary statement of the facts the taxpayer believes
to be controlling in reaching the conclusion requested.

If the Service accepts the taxpayer's statement of controlling facts,
it will base its letter ruling on these facts. Ordinarily, this statement
will be incorporated into the letter ruling. However, the Service reserves
the right to rule on the basis of a more complete statement of the facts
and to seek more information in developing the facts and restating them.

A taxpayer who chooses this two-part procedure has all the rights and
responsibilities provided in this revenue procedure.

Taxpayers may not use the two-part procedure if it is inconsistent with
other procedures, such as those dealing with requests for permission to
change accounting methods or periods, applications for recognition of
exempt status under section 521, or rulings on employment tax status.

After the Service has resolved the issues presented by a letter ruling
request, the Service representative may request that the taxpayer submit a
proposed draft of the letter ruling to expedite the issuance of the
ruling. See section 10.09 of this revenue procedure.


Expedited handling

(4) TO REQUEST EXPEDITED HANDLING. The Service ordinarily processes
requests for letter rulings and determination letters in order of the date
received. Expedited handling means that a request is processed ahead of
the regular order. Expedited handling is granted only in rare and unusual
cases, both out of fairness to other taxpayers and because the Service
seeks to process all requests as expeditiously as possible and to give
appropriate deference to normal business exigencies in all cases not
involving expedited handling.

A taxpayer who has a compelling need to have a request processed ahead
of the regular order may request expedited handling. This request must
explain in detail the need for expedited handling. The request must be
made in writing, preferably in a separate letter with, or soon after
filing, the request for the letter ruling or determination letter. If the
request is not made in a separate letter, then the letter in which the
letter ruling or determination letter request is made should say, at the
top of the first page: "Expedited Handling Is Requested. See page ____ of
this letter."

A request for expedited handling will not be forwarded to a rulings
branch for action until the check for the user fee is received.

Whether a request for expedited handling will be granted is within the
Service's discretion. The Service may grant the request when a factor
outside a taxpayer's control creates a real business need to obtain a
letter ruling or determination letter before a certain time in order to
avoid serious business consequences. Examples include situations in which
a court or governmental agency has imposed a specific deadline for the
completion of a transaction, or a transaction must be completed
expeditiously to avoid an imminent business emergency (such as the hostile
takeover of a corporate taxpayer), provided that the taxpayer can
demonstrate that the deadline or business emergency, and the need for
expedited handling, resulted from circumstances that could not reasonably
have been anticipated or controlled by the taxpayer. To qualify for
expedited handling in such situations, the taxpayer must also demonstrate
that the taxpayer submitted the request as promptly as possible after
becoming aware of the deadline or emergency. The extent to which the
letter ruling or determination letter complies with all of the applicable
requirements of this revenue procedure, and fully and clearly presents the
issues, is a factor in determining whether expedited treatment will be
granted. When the Service agrees to process a request out of order, it
cannot give assurance that any letter ruling or determination letter will
be processed by the time requested.

The scheduling of a closing date for a transaction or a meeting of the
board of directors or shareholders of a corporation, without regard for
the time it may take to obtain a letter ruling or determination letter,
will not be considered a sufficient reason to process a request ahead of
its regular order. Also, the possible effect of fluctuation in the market
price of stocks on a transaction will not be considered a sufficient
reason to process a request out of order.

Because most requests for letter rulings and determination letters
cannot be processed ahead of the regular order, the Service urges all
taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, to facilitate prompt action on letter ruling
requests, taxpayers are encouraged to ensure that their initial
submissions comply with all of the requirements of this revenue procedure
(including the requirements of other applicable guidelines set forth in
section 9 of this revenue procedure), to prepare "two-part" requests
described in section 8.02(3) of this revenue procedure when possible, and
to provide any additional information requested by the Service promptly.



Facsimile transmission (fax) of any document related to the letter
ruling request

(5) TO RECEIVE ANY DOCUMENT RELATED TO THE LETTER RULING REQUEST BY
FACSIMILE TRANSMISSION (FAX). If the taxpayer requests, a copy of any
document related to the letter ruling request may be faxed to the taxpayer
or the taxpayer's authorized representative (for example, a request for
additional information or the letter ruling). A letter ruling, however, is
not issued until the ruling is mailed. See section 301.6110-2(h).

A request to fax a copy of any document related to the letter ruling
request to the taxpayer or the taxpayer's authorized representative must
be made in writing, either as part of the original letter ruling request
or prior to the mailing, or with respect to the letter ruling prior to the
signing, of the document. The request must contain the fax number of the
taxpayer or the taxpayer's authorized representative to whom the document
is to be faxed.

Because of the unsecured nature of a fax transmission, the national
office will take certain precautions to protect confidential information.
For example, the national office will use a cover sheet that identifies
the intended recipient of the fax and the number of pages transmitted,
that does not identify the taxpayer by name or identifying number, and
that contains a statement prohibiting unauthorized disclosure of the
document if a recipient of the faxed document is not the intended
recipient of the fax. Also, for example, the cover sheet should be faxed
in an order in which it will become the first page covering the faxed
document.

Except for the letter ruling, the document will be faxed by a branch
representative. The letter ruling will be faxed by either a representative
of the branch issuing the letter ruling or the Communications, Records and
User Fee Unit of the Technical Services staff (CC:PA:T:CRU).


Fax of a letter ruling request

(6) TO SUBMIT A REQUEST FOR A LETTER RULING BY FAX. Original letter
ruling requests by fax are discouraged because such requests must be
treated in the same manner as requests by letter. For example, the faxed
letter ruling request will not be forwarded to the rulings branch for
action until the check for the user fee is received.

Requests for a change in accounting method or a change in accounting
period must not be submitted by fax.


Requesting a conference

(7) TO REQUEST A CONFERENCE. A taxpayer who wants to have a conference
on the issues involved should indicate this in writing when, or soon
after, filing the request. See also sections 11.01, 11.02, and 12.11(2) of
this revenue procedure.


Substantially identical letter rulings or identical accounting method
changes

(8) TO OBTAIN THE APPLICABLE USER FEE FOR SUBSTANTIALLY IDENTICAL
LETTER RULINGS OR IDENTICAL ACCOUNTING METHOD CHANGES. A taxpayer seeking
the user fee provided in paragraph (A)(5) of Appendix A of this revenue
procedure for substantially identical letter rulings or identical
accounting method changes must provide the information required in section
15.07 of this revenue procedure.


ADDRESS TO SEND THE REQUEST

.03

Requests for letter rulings

(1) REQUESTS FOR LETTER RULINGS. Requests for letter rulings should be
sent to the Associate Chief Counsel (Corporate), the Associate Chief
Counsel (Financial Institutions & Products), the Associate Chief Counsel
(Income Tax & Accounting), the Associate Chief Counsel (International),
the Associate Chief Counsel (Passthroughs & Special Industries), the
Associate Chief Counsel (Procedure and Administration), or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as
appropriate. The package should be marked: RULING REQUEST SUBMISSION.

(a) Requests for letter rulings should be sent to the following
address:

Internal Revenue Service
Attn: CC:PA:T
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044


However, if a private delivery service is used, the address is:

Internal Revenue Service
Attn: CC:PA:T, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224


(b) Requests for letter rulings may also be hand delivered between the
hours of 8:00 a.m. and 4:00 p.m. to the courier's desk at the loading dock
entrance of 1111 Constitution Avenue, N.W., Washington, D.C. A receipt
will be given at the courier's desk. The package should be addressed to:

Courier's Desk
Internal Revenue Service
Attn: CC:PA:T, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224


Requests for determination letters

(2) REQUESTS FOR DETERMINATION LETTERS.

(a) If LMSB has or will have examination jurisdiction over the
taxpayer's tax return, the taxpayer should send a request for a
determination letter to the following address:

Internal Revenue Service
Attn: Manager, Office of Pre-Filing Services
Large and Mid-Size Business Division
C:LM:PFT:PF
Mint Building, 3rd Floor
1111 Constitution Avenue, N.W.
Washington, D.C. 20224


(b) W&I taxpayers seeking a determination letter should send a request
to their local SB/SE office. See Appendix D for the appropriate SB/SE
office.

(c) Other taxpayers should send a request for a determination letter to
the appropriate director whose office has or will have examination
jurisdiction over the taxpayer's return. The appropriate director for a
taxpayer under the jurisdiction of SB/SE is listed in Appendix D.

(d) For fees required with determination letter requests, see section
15 and Appendix A of this revenue procedure.


PENDING LETTER RULING REQUESTS

.04

(1) CIRCUMSTANCES UNDER WHICH THE TAXPAYER MUST NOTIFY THE NATIONAL
OFFICE. The taxpayer must notify the national office if, after the letter
ruling request is filed but before a letter ruling is issued, the taxpayer
knows that--

(a) an examination of the issue or the identical issue on an earlier
year's return has been started by a director;

(b) in the case of a section 301.9100 request, an examination of the
return for the taxable year in which an election should have been made or
any taxable year that would have been affected by the election had it been
timely made has been started by a director. See section
301.9100-3(e)(4)(i) and section 5.02(3) of this revenue procedure;

(c) legislation that may affect the transaction has been introduced.
See section 8.01(10) of this revenue procedure; or

(d) another letter ruling request (including an application for change
in accounting method) has been submitted by the taxpayer (or a related
party within the meaning of section 267 or a member of an affiliated group
of which the taxpayer is also a member within the meaning of section 1504)
involving the same or similar issue that is currently pending with the
Service.


(2) TAXPAYER MUST NOTIFY THE NATIONAL OFFICE IF A RETURN IS FILED AND
MUST ATTACH THE REQUEST TO THE RETURN. If the taxpayer files a return
before a letter ruling is received from the national office concerning the
issue, the taxpayer must notify the national office that the return has
been filed. The taxpayer must also attach a copy of the letter ruling
request to the return to alert the field office and thereby avoid
premature field action on the issue.

This section 8.04 also applies to pending requests for a closing
agreement on a transaction for which a letter ruling is not requested or
issued, and for an advance pricing agreement.


WHEN TO ATTACH LETTER RULING TO RETURN

.05 A taxpayer who receives a letter ruling before filing a return
about any transaction that is relevant to the return being filed must
attach a copy of the letter ruling to the return when it is filed.


HOW TO CHECK ON STATUS OF REQUEST

.06 The taxpayer or the taxpayer's authorized representative may obtain
information regarding the status of a request by calling the person whose
name and telephone number are shown on the acknowledgment of receipt of
the request or the appropriate branch representative who contacts the
taxpayer as explained in section 10.02 of this revenue procedure.


REQUEST MAY BE WITHDRAWN OR NATIONAL OFFICE MAY DECLINE TO ISSUE LETTER
RULING

.07

(1) IN GENERAL. A taxpayer may withdraw a request for a letter ruling
or determination letter at any time before the letter ruling or
determination letter is signed by the Service. Correspondence and exhibits
related to a request that is withdrawn or related to a letter ruling
request for which the national office declines to issue a letter ruling
will not be returned to the taxpayer. See section 8.01(2) of this revenue
procedure. In appropriate cases, the Service may publish its conclusions
in a revenue ruling or revenue procedure.

(2) NOTIFICATION OF APPROPRIATE SERVICE OFFICIAL.

(a) REQUEST TO CHANGE AN ACCOUNTING METHOD. If a taxpayer withdraws or
the national office declines to grant (for any reason) a request to change
from or to adopt an improper method of accounting, the national office
will notify, by memorandum, the appropriate Service official in the
operating division that has examination jurisdiction of the taxpayer's tax
return and the Change in Method of Accounting Technical Advisor, and may
give its views on the issues in the request to the Service official to
consider in any later examination of the return.

(b) ALL OTHER LETTER RULING REQUESTS. If a taxpayer withdraws a letter
ruling request (other than a request to change from or to adopt an
improper method of accounting) or if the national office declines to issue
a letter ruling (other than a letter ruling pertaining to a request to
change from or to adopt an improper method of accounting), the national
office generally will notify, by memorandum, the appropriate Service
official in the operating division that has examination jurisdiction of
the taxpayer's tax return and may give its views on the issues in the
request to the Service official to consider in any later examination of
the return. This section 8.07(2)(b) generally does not apply if the
taxpayer withdraws the letter ruling request and submits a written
statement that the transaction has been, or is being, abandoned and if the
national office has not formed an adverse opinion.

(c) NOTIFICATION OF SERVICE OFFICIAL MAY CONSTITUTE CHIEF COUNSEL
ADVICE. If the memorandum to the Service official referred to in
paragraphs (a) and (b) of this section 8.07(2) provides more than the fact
that the request was withdrawn and the national office was tentatively
adverse, or that the national office declines to grant a change in method
of accounting or issue a letter ruling, the memorandum would constitute
Chief Counsel Advice, as defined in section 6110(j)(1), subject to public
inspection under section 6110. For example, if the memorandum explains the
national office's reasoning for its tentatively adverse position on the
issues in the request, the memorandum would constitute Chief Counsel
Advice.


(3) REFUNDS OF USER FEE. The user fee will not be returned for a letter
ruling request that is withdrawn. If the national office declines to issue
a letter ruling on all of the issues in the request, the user fee will be
returned. If the national office, however, issues a letter ruling on some,
but not all, of the issues, the user fee will not be returned. See section
15.10 of this revenue procedure for additional information regarding the
refunds of user fees.


COMPLIANCE WITH TREASURY DEPARTMENT CIRCULAR NO. 230

.08 The taxpayer's authorized representative, whether or not enrolled,
must comply with Treasury Department Circular No. 230, which provides the
rules for practice before the Service. In those situations when the
national office believes that the taxpayer's representative is not in
compliance with Circular No. 230, the national office will bring the
matter to the attention of the Director of Practice.

For the requirement regarding compliance with the conference and
practice requirements, see section 8.01(14) of this revenue procedure.


SECTION 9. WHAT OTHER CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES,
SAFE HARBOR REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES
APPLY TO CERTAIN REQUESTS?

Specific revenue procedures and notices supplement the general
instructions for requests explained in section 8 of this revenue procedure
and apply to requests for letter rulings or determination letters
regarding the Code sections and matters listed in this section.


CHECKLISTS, GUIDELINE REVENUE PROCEDURES, AND NOTICES

.01 For requests relating to the following Code sections and subject
matters, see the following checklists, guideline revenue procedures, and
notices.

CODE OR REGULATION SECTION REVENUE PROCEDURE AND NOTICE
-------------------------- ----------------------------
103, 141-150, 7478, and 7871 Rev. Proc. 96-16, 1996-1 C.B. 630 (for a
Issuance of state or local reviewable ruling under section 7478 and
obligations a nonreviewable ruling); Rev. Proc.
88-31, 1988-1 C.B. 832 (for approval of
areas of chronic economic distress); and
Rev. Proc. 82-26, 1982-1 C.B. 476 (for
"on behalf of" and similar issuers). For
approval of areas of chronic economic
distress, Rev. Proc. 88-31 explains how
this approval must be submitted to the
Assistant Secretary for Housing/Federal
Housing Commissioner of the Department of
Housing and Urban Development.

1.166-2(d)(3) Rev. Proc. 92-84, 1992-2 C.B. 489.
Uniform express determination
letter for making election

Subchapter C-Corporate Rev. Proc. 77-37, 1977-2 C.B. 568, as
Distributions and Adjustments modified by Rev. Proc. 89-30, 1989-1 C.B.
895, and as amplified by Rev. Proc.
77-41, 1977-2 C.B. 574, Rev. Proc. 83-81,
1983-2 C.B. 598 (see also Rev. Proc.
2002-3), Rev. Proc. 84-42, 1984-1 C.B.
521 (superseded as to no-rule areas by
Rev. Proc. 85-22, 1985-1 C.B. 550), Rev.
Proc. 86-42, 1986-2 C.B. 722, and Rev.
Proc. 89-50, 1989-2 C.B. 631. But see
section 3.01 of Rev. Proc. 2002-3
(corporate distributions, transfers, and
reorganizations under sections 332, 351,
368(a)(1)(A), 368(a)(1)(B), 368(a)(1)(C),
368(a)(1)(E), and 368(a)(1)(F)), which
describes certain corporate
reorganizations where the Service will
not issue advance letter rulings or
determination letters.

301 Rev. Proc. 87-22, 1987-1 C.B. 718.
Nonapplicability on sales of
stock of employer to defined
contribution plan

302, 311 Rev. Proc. 86-18, 1986-1 C.B. 551; and
Checklist questionnaire Rev. Proc. 77-41, 1977-2 C.B. 574.

302(b)(4) Rev. Proc. 81-42, 1981-2 C.B. 611.
Checklist questionnaire

331 Rev. Proc. 86-16, 1986-1 C.B. 546.
Checklist questionnaire

332 Rev. Proc. 90-52, 1990-2 C.B. 626.
Checklist questionnaire

351 Rev. Proc. 83-59, 1983-2 C.B. 575. But
Checklist questionnaire See section 3.01 of Rev. Proc. 2002-3,
which describes certain transfers to
controlled corporations where the Service
will not issue advance letter rulings or
determination letters.

355 Rev. Proc. 96-30, 1996-1 C.B. 696.
Checklist questionnaire

368(a)(1)(E) Rev. Proc. 81-60, 1981-2 C.B. 680. But
Checklist questionnaire see section 3.01 of Rev. Proc. 2002-3,
which describes circumstances under which
the Service will not issue advance letter
rulings or determination letters as to
whether a transaction constitutes a
corporate recapitalization within the
meaning of section 368(a)(1)(E) (or a
transaction that also qualifies under
section 1036).

461(h) Rev. Proc. 92-29, 1992-1 C.B. 748.
Alternative method for the
inclusion of common
improvement costs in basis

482 Rev. Proc. 96-53, 1996-2 C.B. 375, as
Advance pricing agreements modified by Notice 98-65, 1998-2 C.B.
803.

521 Rev. Proc. 90-27, 1990-1 C.B. 514.
Appeal procedure with regard
to adverse determination
letters and revocation or
modification of exemption
letter rulings and
determination letters

1.817-5(a)(2) Rev. Proc. 92-25, 1992-1 C.B. 741.
Issuer of a variable contract
requesting relief

877, 2107, and 2501(a)(3) Notice 97-19, 1997-1 C.B. 394, as
Individuals who lose U.S. modified by Notice 98-34, 1998-2 C.B. 29.
citizenship or cease to be
taxed as long-term U.S.
residents with a principal
purpose to avoid U.S. taxes

1362(b)(5) and 1362(f) Rev. Proc. 98-55, 1998-2 C.B. 643; Rev.
Relief for late S corporation Proc. 97-48, 1997-2 C.B. 521.
and related elections under
certain circumstances

1.1502-13(e)(3) Rev. Proc. 97-49, 1997-2 C.B. 523.
Consent to treat intercompany
transactions on a separate
entity basis and revocation
of this consent

1.1502-76(a)(1) Rev. Proc. 89-56, 1989-2 C.B. 643.
Consent to file a
consolidated return where
member(s) of the affiliated
group use a 52-53 week
taxable year

1504(a)(3)(A) and (B) Rev. Proc. 91-71, 1991-2 C.B. 900.
Waiver of application of
section 1504(a)(3)(A) for
certain corporations

1552 Rev. Proc. 90-39, 1990-2 C.B. 365, as
Consent to elect or change clarified by Rev. Proc. 90-39A, 1990-2
method of allocating C.B. 367.
affiliated group's
consolidated federal income
tax liability

4980B Rev. Proc. 87-28, 1987-1 C.B. 770
(treating references to former section
162(k) as if they were references to
section 4980B).

7701(a)(40) and 7871(d) Rev. Proc. 84-37, 1984-1 C.B. 513, as
Indian tribal governments and modified by Rev. Proc. 86-17, 1986-1 C.B.
subdivision of Indian tribal 550, and Rev. Proc. 2002-1 (this revenue
governments procedure) (provides guidelines for
obtaining letter rulings recognizing
Indian tribal government or tribal
government subdivision status; also
provides for inclusion in list of
recognized tribal governments in revised
versions of Rev. Proc. 2001-15, or in
list of recognized subdivisions of Indian
tribal governments in revised versions of
Rev. Proc. 84-36, 1984-1 C.B. 510, as
modified and made permanent by Rev. Proc.
86-17).

7702 Notice 99-48, 1999-38 I.R.B. 429.
Closing agreement for failed
life insurance contracts

7702A Rev. Proc. 2001-42, 2001-36 I.R.B. 212.
Relief for inadvertent non-
gregious failure to comply
with modified endowment
contract rules

7704(g) Notice 98-3, 1998-1 C.B. 333.
Revocation of election


SUBJECT MATTERS REVENUE PROCEDURE
--------------- -----------------
Accounting methods; obtaining Rev. Proc. 97-27, 1997-1 C.B. 680; and
consent to changes in method Rev. Proc. 2002-1 (this revenue
procedure) for which sections 1, 2.01,
2.02, 2.06, 3.01, 3.02, 3.03, 3.05, 5.02,
5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1),
8.01(2), 8.01(3), 8.01(4), 8.01(5),
8.01(6), 8.01(8), 8.01(9), 8.01(10),
8.01(13), 8.01(14), 8.01(15), 8.02(2),
8.02(4), 8.02(5), 8.02(7), 8.02(8),
8.03(1), 8.04, 8.05, 8.06, 8.07, 8.08, 9,
10.01, 10.04, 10.05, 10.07, 10.08,
10.10(2), 10.11, 11, 12.01, 12.02, 12.06-
12.11, 15, and Appendix A are applicable.

Accounting periods; adopt, Rev. Proc. 87-32, 1987-2 C.B. 396, as
retain or change for modified by T.D. 8680, 1996-2 C.B. 194;
partnership, S corporation, and Rev. Proc. 2002-1 (this revenue
and personal service procedure) for which sections 1, 2.01,
corporation 2.02, 2.06, 3.03, 5.02, 5.12, 5.14, 7.01,
7.02, 7.03, 8.01(1), 8.01(2), 8.01(3),
8.01(4), 8.01(5), 8.01(6), 8.01(8),
8.01(9), 8.01(10), 8.01(13), 8.01(14),
8.01(15), 8.02(2), 8.02(4), 8.02(5),
8.02(7), 8.03(1) (only for Forms 1128
filed under section 6.01 of Rev. Proc.
87-32), 8.04, 8.05, 8.06, 8.07, 8.08, 9,
10.01, 10.04, 10.05, 10.07, 10.08, 11,
12, 15, and Appendix A are applicable.

Accounting periods; changes Rev. Proc. 2000-11, 2000-3 I.R.B. 309;
in period and Rev. Proc. 2002-1 (this revenue
procedure) for which sections 1, 2.01,
2.02, 2.06, 3.03, 5.02, 5.12, 5.14, 7.01,
7.02, 7.03, 8.01(1), 8.01(2), 8.01(3),
8.01(4), 8.01(5), 8.01(6), 8.01(8),
8.01(9), 8.01(10), 8.01(13), 8.01(14),
8.01(15), 8.02(2), 8.02(4), 8.02(5),
8.02(7), 8.03(1), 8.04, 8.05, 8.06, 8.07,
8.08, 9, 10.01, 10.04, 10.05, 10.07,
10.08, 11, 12, 15, and Appendix A are
applicable.

Classification of liquidating Rev. Proc. 82-58, 1982-2 C.B. 847, as
trusts modified and amplified by Rev. Proc.
94-45, 1994-2 C.B. 684, and as amplified
by Rev. Proc. 91-15, 1991-1 C.B. 484
(checklist questionnaire), as modified
and amplified by Rev. Proc. 94-45.

Earnings and profits Rev. Proc. 75-17, 1975-1 C.B. 677; and
determinations Rev. Proc. 2002-1 (this revenue
procedure) for which sections 2.06, 3.03,
8, 10.04, 10.06, and 11.05 are
applicable.

Estate, gift, and generation- Rev. Proc. 91-14, 1991-1 C.B. 482
skipping transfer tax issues (checklist questionnaire).

Deferred intercompany Rev. Proc. 82-36, 1982-1 C.B. 490.
transactions; election not to
defer gain or loss

Leveraged leasing Rev. Proc. 2001-28, 2001-19 I.R.B. 1156,
and Rev. Proc. 2001-29, 2001-19 I.R.B.
1160.

Rate orders; regulatory A letter ruling request that involves a
agency; normalization question of whether a rate order that is
proposed or issued by a regulatory agency
will meet the normalization requirements
of section 168(f)(2) (pre-Tax Reform Act
of 1986, section 168(e)(3)) and former
sections 46(f) and 167(l) ordinarily will
not be considered unless the taxpayer
states in the letter ruling request
whether--

(1) the regulatory authority responsible
for establishing or approving the
taxpayer's rates has reviewed the request
and believes that the request is adequate
and complete; and

(2) the taxpayer will permit the
regulatory authority to participate in
any national office conference concerning
the request.

If the taxpayer or the regulatory
authority informs a consumer advocate of
the request for a letter ruling and the
advocate wishes to communicate with the
Service regarding the request, any such
communication should be sent to: Internal
Revenue Service, Attention: Associate
Chief Counsel (Passthroughs & Special
Industries), CC:PSI, P.O. Box 7604, Ben
Franklin Station, Washington, D.C. 20044
(or, if a private delivery service is
used: Internal Revenue Service,
Attention: Associate Chief Counsel
(Passthroughs & Special Industries),
CC:PSI, Room 5300, 1111 Constitution
Avenue, N.W., Washington, D.C. 20224.
These communications will be treated as
third party contacts for purposes of
section 6110.

Unfunded deferred Rev. Proc. 71-19, 1971-1 C.B. 698, as
compensation amplified by Rev. Proc. 92-65, 1992-2
C.B. 428. See Rev. Proc. 92-64, 1992-2
C.B. 422, as modified by Notice 2000-56,
2000-2 C.B. 393, for the model trust for
use in Rabbi Trust Arrangements.


SAFE HARBOR REVENUE PROCEDURES

.02 For requests relating to the following Code sections and subject
matters, see the following safe harbor revenue procedures.


CODE OR REGULATION SECTION REVENUE PROCEDURE
-------------------------- -----------------
103 and 141-150 Rev. Proc. 93-17, 1993-1 C.B. 507 (change
Issuance of state or local of use of proceeds); Rev. Proc. 97-13,
obligations 1997-1 C.B. 632, as modified by Rev.
Proc. 2001-39, 2001-28 I.R.B. 38
(management contracts); and Rev. Proc.
97-14, 1997-1 C.B. 634 (research
agreements).

263A Rev. Proc. 2001-46, 2001-37 I.R.B. 263
(railroad track structure expenditures).

280B Rev. Proc. 95-27, 1995-1 C.B. 704.
Certain structural
modifications to a building
not treated as a demolition

355(a)(1)(B) Section 4.05(1)(b) of Rev. Proc. 96-30,
Transaction not violating the 1996-1 C.B. 696, 705.
device test

84(a) Rev. Proc. 92-51, 1992-1 C.B. 988.
Qualification of a proposed
common trust fund plan

642(c)(5) Rev. Proc. 88-53, 1988-2 C.B. 712.
Qualification of trusts as
pooled income funds


664(d)(1) Rev. Proc. 89-21, 1989-1 C.B. 842, as
Qualification of trusts as amplified by Rev. Proc. 90-32, 1990-1
charitable remainder annuity C.B. 546.
trusts

664(d)(2) Rev. Proc. 89-20, 1989-1 C.B. 841, as
Qualification of trusts as amplified by Rev. Proc. 90-30, 1990-1
charitable remainder C.B. 534.
unitrusts

664(d)(2) and (3) Rev. Proc. 90-31, 1990-1 C.B. 539.
Qualification of trusts as
charitable remainder
unitrusts

1031(a) Rev. Proc. 2000-37, 2000-40 I.R.B. 308.
Qualification as a qualified
exchange accommodation
arrangement

1286 Rev. Proc. 91-50, 1991-2 C.B. 778.
Determination of reasonable
compensation under mortgage
servicing contracts

1362(f) Rev. Proc. 98-55, 1998-2 C.B. 643.
Automatic inadvertent
termination relief to certain
corporations

1.860E-1(c) Rev. Proc. 2001-12, 2001-3 I.R.B. 335.
Establishment of lack of
improper knowledge for
transfers of noneconomic
residual interests of REMICs
and ownership interests in
FASITs

20.2056A-2(d)(1)(i) and Rev. Proc. 96-54, 1996-2 C.B. 386.
(d)(1)(ii) Sample trust
language

1.7704-2(d) New business Rev. Proc. 92-101, 1992-2 C.B. 579.
activity of existing
partnership is closely
related to pre-existing
business


SUBJECT MATTERS REVENUE PROCEDURE
--------------- -----------------
Certain rent-to-own contracts Rev. Proc. 95-38, 1995-2 C.B. 397.
treated as leases


AUTOMATIC CHANGE REVENUE PROCEDURES

.03 For requests to change an accounting period or accounting method,
see the following automatic change revenue procedures published and/or in
effect as of December 31, 2001. A taxpayer complying timely with an
automatic change revenue procedure will be deemed to have obtained the
consent of the Commissioner to change the taxpayer's accounting period or
accounting method, as applicable.


CODE SECTION REVENUE PROCEDURE
------------ -----------------
442 The automatic change revenue procedures
Changes in accounting periods for obtaining a change in annual
accounting period include: Rev. Proc.
2000-11, 2000-3 I.R.B. 309 (certain
corporations that have not changed their
accounting period within the prior 6
calendar years or other specified time);
Rev. Proc. 87-32, 1987-2 C.B. 396, as
modified by section 301.9100-3
(partnership, S corporation, or personal
service corporation seeking a natural
business year or an ownership taxable
year); Rev. Proc. 68-41, 1968-2 C.B. 943,
as modified by Rev. Proc. 81-40, 1981-2
C.B. 605 (trusts held by certain
fiduciaries needing a workload spread);
and Rev. Proc. 66-50, 1966-2 C.B. 1260,
as modified by Rev. Proc. 81-40
(individual seeking a calendar year).

446 The automatic change revenue procedures
Changes in accounting methods for obtaining a change in method of
accounting include: Rev. Proc. 99-49,
1999-52 I.R.B. 725 (applies to the
changes in methods of accounting that are
described in the Appendix of Rev. Proc.
99-49 involving sections 56, 162, 167,
168, 171, 174, 197, 263, 263A, 404, 446,
451, 454, 455, 461, 467, 471, 472, 475,
585, 1272, 1273, 1278, and 1281, and
former section 168), as modified and
amplified by Rev. Rul. 2001-60, 2001-51
I.R.B. 587, (certain taxpayers seeking
to change their method of accounting for
depreciation of modern golf course
greens), Rev. Proc. 2001-46, 2001-37
I.R.B. 263 (certain taxpayers seeking to
change to the track maintenance allowance
method for track structure expenditures
paid or incurred by certain railroads),
Rev. Proc. 2001-25, 2001-12 I.R.B. 913
(banks that use the cash receipts and
disbursements method of accounting
seeking to change their method of
accounting for stated interest on short-
term loans made in the ordinary course of
business), Rev. Proc. 2001-24, 2001-10
I.R.B. 788 (insurance company seeking to
change its method of accounting for cash
advances on commissions paid to its
agents), Rev. Proc. 2001-23, 2001-10
I.R.B. 784 (certain taxpayers that sell
used automobiles or used light-duty
trucks seeking to change to an optional
LIFO inventory computation method
prescribed in Rev. Proc. 2001-23), Rev.
Rul. 2001-8, 2001-9 I.R.B. 726 (certain
taxpayers seeking to change their method
of accounting for payments made or
received with respect to floor stocks to
conform with the holding in Rev. Rul.
2001-8), Rev. Rul. 2001-4, 2001-3 I.R.B.
295, as modified by Notice 2001-23,
2001-12 I.R.B. 911 (certain taxpayers
seeking to change their method of
accounting for aircraft maintenance costs
to conform with the holding in Rev. Rul.
2001-4; this automatic method change is
effective for the taxpayer's first or
second taxable year ending after December
21, 2000), Rev. Proc. 2001-10, 2001-2
I.R.B. 272 (qualifying taxpayers with
average annual gross receipts of $1
million or less seeking to change from an
accrual method to the cash method or from
an inventory method to a method complying
with section 1.162-3; this revenue
procedure is effective for taxable years
ending on or after December 17, 1999),
Rev. Proc. 2000-50, 2000-52 I.R.B. 601
(taxpayers seeking to change their
treatment of certain computer software
costs), Rev. Proc. 2000-38, 2000-40
I.R.B. 310 (certain taxpayers seeking to
change to any of the three permissible
methods of accounting for distributor
commissions prescribed in Rev. Proc.
2000-38), Rev. Rul. 2000-7, 2000-9 I.R.B.
712 (certain taxpayers seeking to change
their method of accounting for removal
costs to conform with the holding in Rev.
Rul. 2000-7), Rev. Rul. 2000-4, 2000-4
I.R.B. 331 (certain taxpayers seeking to
change their method of accounting for ISO
9000 certification costs to conform with
the holding in Rev. Rul. 2000-4), and
Notice 2000-4, 2000-3 I.R.B. 313 (certain
taxpayers seeking to change their method
of accounting for depreciation of MACRS
property acquired in a transaction to
which section 1031 or section 1033
applies); Rev. Proc. 98-58, 1998-2 C.B.
710 (certain taxpayers seeking to change
to the installment method of accounting
under section 453 for alternative minimum
tax purposes for certain deferred payment
sales contracts relating to property used
or produced in the trade or business of
farming); Rev. Proc. 97-43, 1997-2 C.B.
494 (certain taxpayers required to change
their method of accounting as a result of
making elections out of certain
exemptions from dealer status for
purposes of section 475); Rev. Proc.
92-67, 1992-2 C.B. 429 (certain taxpayers
with one or more market discount bonds
seeking to make a section 1278(b)
election or a constant interest rate
election); Rev. Proc. 92-29, 1992-1 C.B.
748 (certain taxpayers seeking to use an
alternative method under section 461(h)
for including common improvement costs in
basis); and Rev. Proc. 91-51, 1991-2 C.B.
779 (certain taxpayers under examination
that sell mortgages and retain rights to
service the mortgages).


SECTION 10. HOW DOES THE NATIONAL OFFICE HANDLE LETTER RULING REQUESTS?

The national office will issue letter rulings on the matters and under
the circumstances explained in sections 3 and 5 of this revenue procedure
and in the manner explained in this section and section 11 of this revenue
procedure.


CONTROLS REQUEST AND REFERS IT TO APPROPRIATE ASSOCIATE CHIEF COUNSEL'S
OFFICE OR ASSISTANT CHIEF COUNSEL'S OFFICE

.01 All requests for letter rulings will be controlled by the Technical
Services staff of the Associate Chief Counsel (Procedure and
Administration) (CC:PA:T). That office will examine the incoming documents
for completeness, process the user fee, and forward the file to the
appropriate Associate Chief Counsel's office or, for letter ruling
requests under the jurisdiction of the Associate Chief Counsel (Procedure
and Administration) or the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities), to the appropriate Assistant Chief
Counsel. The Associate Chief Counsel's office or the Assistant Chief
Counsel's office, as appropriate, will assign the letter ruling request to
one of its branches.


BRANCH REPRESENTATIVE CONTACTS TAXPAYER WITHIN 21 DAYS

.02 Within 21 calendar days after a letter ruling request has been
received in the branch having jurisdiction, a representative of the branch
will discuss the procedural issues in the letter ruling request with the
taxpayer or, if the request includes a properly executed power of
attorney, with the authorized representative unless the power of attorney
provides otherwise. If the case is complex or a number of issues are
involved, it may not be possible for the branch representative to discuss
the substantive issues during this initial contact. However, when
possible, for each issue within the branch's jurisdiction, the branch
representative will tell the taxpayer--

(1) whether the branch representative will recommend that the Service
rule as the taxpayer requested, rule adversely on the matter, or not rule;

(2) whether the taxpayer should submit additional information to enable
the Service to rule on the matter; or

(3) whether, because of the nature of the transaction or the issue
presented, a tentative conclusion on the issue cannot be reached.


Except for cases involving a request for change in accounting method or
accounting period, the 21 calendar day procedure applies to: all matters
within the jurisdiction of the Associate Chief Counsel (Corporate), the
Associate Chief Counsel (Income Tax & Accounting), the Associate Chief
Counsel (International), the Associate Chief Counsel (Passthroughs &
Special Industries), the Associate Chief Counsel (Procedure and
Administration), and the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities); and all matters within the jurisdiction
of the Associate Chief Counsel (Financial Institutions & Products), except
cases concerning insurance issues requiring actuarial computations.


NOTIFIES TAXPAYER IF ANY ISSUES HAVE BEEN REFERRED TO ANOTHER BRANCH OR
OFFICE

.03 If the letter ruling request involves matters within the
jurisdiction of more than one branch or office, a representative of the
branch that received the original request will tell the taxpayer within
the initial 21 days--

(1) that the matters within the jurisdiction of another branch or
office have been referred to that branch or office for consideration; and

(2) that a representative of that branch or office will contact the
taxpayer within 21 calendar days after receiving the referral to discuss
informally the procedural and, to the extent possible, the substantive
issues in the request.


DETERMINES IF TRANSACTION CAN BE MODIFIED TO OBTAIN FAVORABLE LETTER
RULING

.04 If a less than fully favorable letter ruling is indicated, the
branch representative will tell the taxpayer whether minor changes in the
transaction or adherence to certain published positions would bring about
a favorable ruling. The branch representative may also tell the taxpayer
the facts that must be furnished in a document to comply with Service
requirements. However, the branch representative will not suggest precise
changes that would materially alter the form of the proposed transaction
or materially alter a taxpayer's proposed accounting method or accounting
period.

If, at the end of this discussion, the branch representative determines
that a meeting in the national office would be more helpful to develop or
exchange information, a meeting will be offered and an early meeting date
arranged. When offered, this meeting is in addition to the taxpayer's
conference of right that is described in section 11.02 of this revenue
procedure.


IS NOT BOUND BY INFORMAL OPINION EXPRESSED

.05 The Service will not be bound by the informal opinion expressed by
the branch representative or any other authorized Service representative,
and such an opinion cannot be relied upon as a basis for obtaining
retroactive relief under the provisions of section 7805(b).


TELLS TAXPAYER IF REQUEST LACKS ESSENTIAL INFORMATION DURING INITIAL
CONTACT

.06 If a request for a letter ruling does not comply with all the
provisions of this revenue procedure, the branch representative will tell
the taxpayer during the initial contact which requirements have not been
met.


Information must be submitted within 21 calendar days

(1) If the request lacks essential information, which may include
additional information needed to satisfy the procedural requirements of
this revenue procedure as well as substantive changes to transactions or
documents needed from the taxpayer, the branch representative will tell
the taxpayer during the initial contact that the request will be closed if
the Service does not receive the information within 21 calendar days
unless an extension of time is granted. See sections 10.07(1), (2), and
(3) of this revenue procedure for instructions on submissions of
additional information. To facilitate prompt action on letter ruling
requests, taxpayers are encouraged to request that the Service request
additional information by fax. See section 8.02(5) of this revenue
procedure.


21-day period will be extended if justified and approved

(2) An extension of the 21-day period will be granted only if justified
in writing by the taxpayer and approved by the branch chief, senior
technician reviewer (or senior technical reviewer), or assistant to the
branch chief (or assistant branch chief) of the branch to which the case
is assigned. A request for extension should be submitted before the end of
the 21-day period. If unusual circumstances close to the end of the 21-day
period make a written request impractical, the taxpayer should notify the
national office within the 21-day period that there is a problem and that
the written request for extension will be coming soon. The taxpayer will
be told promptly, and later in writing, of the approval or denial of the
requested extension. If the extension request is denied, there is no right
of appeal.


Letter ruling request closed if the taxpayer does not submit
information

(3) If the taxpayer does not submit the information requested during
the initial contact within the time provided, the letter ruling request
will be closed and the taxpayer will be notified in writing. If the
information is received after the request is closed, the request will be
reopened and treated as a new request as of the date the information is
received. However, the taxpayer must pay another user fee before the case
can be reopened.

Letter ruling request mistakenly sent to a director (4) A request for a
letter ruling sent to a director will be returned by the director so that
the taxpayer can send it to the national office.


REQUIRES PROMPT SUBMISSION OF ADDITIONAL INFORMATION REQUESTED AFTER
INITIAL CONTACT

.07

(1) Material facts furnished to the Service by telephone or fax, or
orally at a conference, must be promptly confirmed by letter to the
Service. This confirmation and any additional information requested by the
Service that is not part of the information requested during the initial
contact must be furnished within 21 calendar days to be considered part of
the request.

Additional information submitted to the Service must be accompanied by
the following declaration: "Under penalties of perjury, I declare that I
have examined this information, including accompanying documents, and, to
the best of my knowledge and belief, the information contains all the
relevant facts relating to the request for the information, and such facts
are true, correct, and complete." This declaration must be signed in
accordance with the requirements in section 8.01(15)(b) of this revenue
procedure. A taxpayer who submits additional factual information on
several occasions may provide one declaration subsequent to all
submissions that refers to all submissions.

To facilitate prompt action on letter ruling requests, taxpayers are
encouraged to request that the Service request additional information by
fax. See section 8.02(5) of this revenue procedure. Taxpayers also are
encouraged to submit additional information by fax as soon as the
information is available. The Service representative who requests
additional information can provide a telephone number to which the
information can be faxed. A copy of this information and a signed perjury
statement, however, must be mailed or delivered to the Service.


Address to send additional information

(2)(a) If a private delivery service is not used, the additional
information should be sent to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044


However, for cases involving a request for change in accounting method
or period under the jurisdiction of the Associate Chief Counsel (Income
Tax & Accounting), and a section 301.9100 request for an extension of time
on such cases, the additional information should be sent to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
P.O. Box 14095
Ben Franklin Station
Washington, D.C. 20044


(b) If a private delivery service is used, the additional information
for all cases should be sent to:

Internal Revenue Service
ADDITIONAL INFORMATION
Attn: [Name, office symbols, and
room number of the Service
representative who requested
the information]
1111 Constitution Avenue, N.W.
Washington, D.C. 20224


(c) For all cases, the additional information should include the name,
office symbols, and room number of the Service representative who
requested the information, and the taxpayer's name and the case control
number, which the Service representative can provide.


Number of copies of additional information to be submitted

(3) Generally, a taxpayer needs only to submit one copy of the
additional information. However, in appropriate cases, the national office
may request additional copies of the information.


21-day period will be extended if justified and approved

(4) An extension of the 21-day period will be granted only if justified
in writing by the taxpayer and approved by the branch chief, senior
technician reviewer (or senior technical reviewer), or assistant to the
branch chief (or assistant branch chief) of the branch to which the case
is assigned. A request for extension should be submitted before the end of
the 21-day period. If unusual circumstances close to the end of the 21-day
period make a written request impractical, the taxpayer should notify the
national office within the 21-day period that there is a problem and that
the written request for extension will be coming soon. The taxpayer will
be told promptly, and later in writing, of the approval or denial of the
requested extension. If the extension request is denied, there is no right
of appeal.


If taxpayer does not submit additional information

(5) If the taxpayer does not follow the instructions for submitting
additional information or requesting an extension within the time
provided, a letter ruling will be issued on the basis of the information
on hand or, if appropriate, no letter ruling will be issued. When the
Service decides not to issue a letter ruling because additional
information was not timely submitted, the case will be closed and the
taxpayer notified in writing. If the Service receives the information
after the letter ruling request is closed, the request may be reopened and
treated as a new request. However, the taxpayer must pay another user fee
before the case can be reopened.


NEAR THE COMPLETION OF THE RULING PROCESS, ADVISES THE TAXPAYER OF
CONCLUSIONS AND, IF THE SERVICE WILL RULE ADVERSELY, OFFERS THE TAXPAYER
THE OPPORTUNITY TO WITHDRAW THE LETTER RULING REQUEST

.08 Generally, after the conference of right is held but before the
letter ruling is issued, the branch representative will inform the
taxpayer or the taxpayer's representative of the Service's conclusions. If
the Service is going to rule adversely, the taxpayer will be offered the
opportunity to withdraw the letter ruling request. If the taxpayer or the
taxpayer's representative does not promptly notify the branch
representative of a decision to withdraw the ruling request, the adverse
letter ruling will be issued. The user fee will not be refunded for a
letter ruling request that is withdrawn. See section 8.07 of this revenue
procedure.


MAY REQUEST DRAFT OF PROPOSED LETTER RULING NEAR THE COMPLETION OF THE
RULING PROCESS

.09 To accelerate the issuance of letter rulings, in appropriate cases
near the completion of the ruling process, the Service representative may
request that the taxpayer or the taxpayer's representative submit a
proposed draft of the letter ruling on the basis of discussions of the
issues. The taxpayer, however, is not required to prepare a draft letter
ruling to receive a letter ruling.

The format of the submission should be discussed with the Service
representative who requests the draft letter ruling. The representative
usually can provide a sample format of a letter ruling and will discuss
the facts, analysis, and letter ruling language to be included.


Taxpayer may also submit draft on a computer disk in a word processing
format

In addition to a typed draft, taxpayers are encouraged to submit this
draft on a computer disk in a word processing format acceptable to the
Service. The typed draft will become part of the permanent files of the
national office, and the computer disk will not be returned. If the
Service representative requesting the draft letter ruling cannot answer
specific questions about the word processing format, the questions can be
directed to the Chief, Technical Services Staff, at 202-622-7560 (not a
toll-free call).

The proposed letter ruling (both typed draft and computer disk) should
be sent to the same address as any additional information and contain in
the transmittal the information that should be included with any
additional information (for example, a penalties of perjury statement is
required). See section 10.07 of this revenue procedure.


ISSUES SEPARATE LETTER RULINGS FOR SUBSTANTIALLY IDENTICAL LETTER
RULINGS AND GENERALLY ISSUES A SINGLE LETTER RULING FOR IDENTICAL
ACCOUNTING METHOD CHANGES

.10

(1) SUBSTANTIALLY IDENTICAL LETTER RULINGS. For letter ruling requests
qualifying for the user fee provided in paragraph (A)(5)(a) of Appendix A
of this revenue procedure for substantially identical letter rulings, a
separate letter ruling will be issued for each entity with a common member
or sponsor, or for each member of a common entity.

(2) IDENTICAL ACCOUNTING METHOD CHANGES AND RELATED SECTION 301.9100
LETTER RULINGS. For letter ruling requests qualifying for the user fee
provided in paragraphs (A)(5)(b) and (c) of Appendix A of this revenue
procedure for identical accounting method changes and related section
301.9100 letter rulings, a single letter ruling generally will be issued
on behalf of all members of a consolidated group that file a Form 3115,
Application for Change in Accounting Method, or that file a section
301.9100 request for an extension of time to file a Form 3115. However,
the branch to which the case is assigned may, at its discretion, issue
separate letter rulings for certain members or groups of members within a
consolidated group. For example, separate letter rulings may be issued if
different terms and conditions are required. Each letter ruling will
include an attachment listing the section 481(a) adjustment for each
member to which the letter ruling applies.


SENDS A COPY OF THE LETTER RULING TO APPROPRIATE SERVICE OFFICIAL

.11 The national office will send a copy of the letter ruling, whether
favorable or adverse, to the appropriate Service official in the operating
division that has examination jurisdiction of the taxpayer's tax return.



SECTION 11. HOW ARE CONFERENCES SCHEDULED?

SCHEDULES A CONFERENCE IF REQUESTED BY TAXPAYER

.01 A taxpayer may request a conference regarding a letter ruling
request. Normally, a conference is scheduled only when the national office
considers it to be helpful in deciding the case or when an adverse
decision is indicated. If conferences are being arranged for more than one
request for a letter ruling involving the same taxpayer, they will be
scheduled so as to cause the least inconvenience to the taxpayer. As
stated in section 8.02(7) of this revenue procedure, a taxpayer who wants
to have a conference on the issue or issues involved should indicate this
in writing when, or soon after, filing the request.

If a conference has been requested, the taxpayer will be notified by
telephone, if possible, of the time and place of the conference, which
must then be held within 21 calendar days after this contact. Instructions
for requesting an extension of the 21-day period and notifying the
taxpayer or the taxpayer's representative of the Service's approval or
denial of the request for extension are the same as those explained in
section 10.07(4) of this revenue procedure regarding providing additional
information.


PERMITS TAXPAYER ONE CONFERENCE OF RIGHT

.02 A taxpayer is entitled, as a matter of right, to only one
conference in the national office, except as explained under section 11.05
of this revenue procedure. This conference is normally held at the branch
level and is attended by a person who, at the time of the conference, has
the authority to sign the letter ruling in his or her own name or for the
branch chief.

When more than one branch has taken an adverse position on an issue in
a letter ruling request or when the position ultimately adopted by one
branch will affect that adopted by another, a representative from each
branch with the authority to sign in his or her own name or for the branch
chief will attend the conference. If more than one subject is to be
discussed at the conference, the discussion will constitute a conference
on each subject.

To have a thorough and informed discussion of the issues, the
conference usually will be held after the branch has had an opportunity to
study the case. However, at the request of the taxpayer, the conference of
right may be held earlier.

No taxpayer has a right to appeal the action of a branch to an
associate or assistant chief counsel or to any other official of the
Service. But see section 11.05 of this revenue procedure for situations in
which the Service may offer additional conferences.

In employment tax matters, only the party entitled to the letter ruling
is entitled to a conference. See section 5.09 of this revenue procedure.


DISALLOWS VERBATIM RECORDING OF CONFERENCES

.03 Because conference procedures are informal, no tape, stenographic,
or other verbatim recording of a conference may be made by any party.


MAKES TENTATIVE RECOMMENDATIONS ON SUBSTANTIVE ISSUES

.04 The senior Service representative present at the conference ensures
that the taxpayer has the opportunity to present views on all the issues
in question. A Service representative explains the Service's tentative
decision on the substantive issues and the reasons for that decision. If
the taxpayer asks the Service to limit the retroactive effect of any
letter ruling or limit the revocation or modification of a prior letter
ruling, a Service representative will discuss the recommendation
concerning this issue and the reasons for the recommendation. The Service
representatives will not make a commitment regarding the conclusion that
the Service will finally adopt.


MAY OFFER ADDITIONAL CONFERENCES

.05 The Service will offer the taxpayer an additional conference if,
after the conference of right, an adverse holding is proposed, but on a
new issue, or on the same issue but on different grounds from those
discussed at the first conference. There is no right to another conference
when a proposed holding is reversed at a higher level with a result less
favorable to the taxpayer, if the grounds or arguments on which the
reversal is based were discussed at the conference of right.

The limit on the number of conferences to which a taxpayer is entitled
does not prevent the Service from offering additional conferences,
including conferences with an official higher than the branch level, if
the Service decides they are needed. Such conferences are not offered as a
matter of course simply because the branch has reached an adverse
decision. In general, conferences with higher level officials are offered
only if the Service determines that the case presents significant issues
of tax policy or tax administration and that the consideration of these
issues would be enhanced by additional conferences with the taxpayer.


REQUIRES WRITTEN CONFIRMATION OF INFORMATION PRESENTED AT CONFERENCE

.06 The taxpayer should furnish to the national office any additional
data, reasoning, precedents, etc., that were proposed by the taxpayer and
discussed at the conference but not previously or adequately presented in
writing. The taxpayer must furnish the additional information within 21
calendar days from the date of the conference. See section 10.07 of this
revenue procedure for instructions on submission of additional
information. If the additional information is not received within that
time, a letter ruling will be issued on the basis of the information on
hand or, if appropriate, no ruling will be issued.

Procedures for requesting an extension of the 21-day period and
notifying the taxpayer or the taxpayer's representative of the Service's
approval or denial of the requested extension are the same as those stated
in section 10.07(4) of this revenue procedure regarding submitting
additional information.


MAY SCHEDULE A PRE-SUBMISSION CONFERENCE

.07 Sometimes it will be advantageous to both the Service and the
taxpayer to hold a conference before the taxpayer submits the letter
ruling request to discuss substantive or procedural issues relating to a
proposed transaction. Such conferences are held only if the identity of
the taxpayer is provided to the Service, only if the taxpayer actually
intends to make a request, only if the request involves a matter on which
a letter ruling is ordinarily issued, and only at the discretion of the
Service and as time permits. For example, a pre-submission conference will
not be held on an income tax issue if, at the time the pre-submission
conference is requested, the identical issue is involved in the taxpayer's
return for an earlier period and that issue is being examined by a
director. See section 5.01(1) of this revenue procedure. A letter ruling
request submitted following a pre-submission conference will not
necessarily be assigned to the branch that held the pre-submission
conference. Also, when a letter ruling request is not submitted following
a pre-submission conference, the national office may notify, by
memorandum, the appropriate Service official in the operating division
that has examination jurisdiction of the taxpayer's tax return and may
give its views on the issues raised during the pre-submission conference.
This memorandum may constitute Chief Counsel Advice, as defined in section
6110(j), subject to disclosure under section 6110.

(1) TAXPAYER MAY REQUEST A PRE-SUBMISSION CONFERENCE IN WRITING OR BY
TELEPHONE. A taxpayer may request a pre-submission conference in writing
or by telephone. The request should identify the taxpayer and include a
brief explanation of the primary issue so that an assignment to the
appropriate branch can be made. If submitted in writing, the request
should also identify the associate or assistant chief counsel office
expected to have jurisdiction over the request for a letter ruling. A
written request for a pre-submission conference should be sent to the
appropriate address listed in section 8.03(1) of this revenue procedure.

To request a pre-submission conference by telephone, call:

(a) (202) 622-7700 (not a toll-free call) for matters under the
jurisdiction of the Office of Associate Chief Counsel (Corporate);

(b) (202) 622-3900 (not a toll-free call) for matters under the
jurisdiction of the Office of Associate Chief Counsel (Financial
Institutions & Products);

(c) (202) 622-4800 (not a toll-free call) for matters under the
jurisdiction of the Office of Associate Chief Counsel (Income Tax &
Accounting);

(d) (202) 622-3800 (not a toll-free call) for matters under the
jurisdiction of the Office of Associate Chief Counsel (International);

(e) (202) 622-3000 (not a toll-free call) for matters under the
jurisdiction of the Office of Associate Chief Counsel (Passthroughs &
Special Industries);

(f) (202) 622-3400 (not a toll-free call) for matters under the
jurisdiction of the Office of Associate Chief Counsel (Procedure and
Administration); or

(g) (202) 622-6000 (not a toll-free call) for matters under the
jurisdiction of the Office of Division Counsel/Associate Chief Counsel
(Tax Exempt and Government Entities).


(2) PRE-SUBMISSION CONFERENCES GENERALLY HELD IN PERSON. Pre-submission
conferences generally will be held in person at the national office.
However, if the taxpayer is unable to attend the conference, the
conference may be conducted by telephone.

(3) CERTAIN INFORMATION REQUIRED TO BE SUBMITTED TO THE NATIONAL OFFICE
PRIOR TO THE PRE-SUBMISSION CONFERENCE. Generally, the taxpayer will be
asked to provide, at least three business days before the scheduled
pre-submission conference, a statement of whether the issue is an issue on
which a letter ruling is ordinarily issued, a draft of the letter ruling
request or other detailed written statement of the proposed transaction,
issue, and legal analysis, and, if the taxpayer's authorized
representative will attend the pre-submission conference, a power of
attorney is required. It is preferred that Form 2848, Power of Attorney
and Declaration of Representative, be used to provide the representative's
authorization. If multiple taxpayers and/or their authorized
representatives will attend the pre-submission conference, cross powers of
attorney (or tax information authorizations) are required. As stated in
section 11.07(1) of this revenue procedure, the identity of the taxpayer
must be provided to the Service when the pre-submission conference is
requested.

(4) DISCUSSION OF SUBSTANTIVE ISSUES IS NOT BINDING ON THE SERVICE. Any
discussion of substantive issues at a pre-submission conference is
advisory only, is not binding on the Service in general or on the Office
of Chief Counsel in particular, and cannot be relied upon as a basis for
obtaining retroactive relief under the provisions of section 7805(b).


UNDER LIMITED CIRCUMSTANCES, MAY SCHEDULE A CONFERENCE TO BE HELD BY
TELEPHONE

.08 Infrequently, taxpayers request that their conference of right be
held by telephone. This request may occur, for example, when a taxpayer
wants a conference of right but believes that the issue involved does not
warrant incurring the expense of traveling to Washington, D.C. If a
taxpayer makes such a request, the branch chief, senior technician
reviewer (or senior technical reviewer), or assistant to the branch chief
(or assistant branch chief) of the branch to which the case is assigned
will decide if it is appropriate in the particular case to hold the
conference of right by telephone. If the request is approved, the taxpayer
will be advised when to call the Service representatives (not a toll-free
call).


SECTION 12. WHAT EFFECT WILL A LETTER RULING HAVE?

MAY BE RELIED ON SUBJECT TO LIMITATIONS

.01 A taxpayer ordinarily may rely on a letter ruling received from the
Service subject to the conditions and limitations described in this
section.


WILL NOT APPLY TO ANOTHER TAXPAYER

.02 A taxpayer may not rely on a letter ruling issued to another
taxpayer. See section 6110(k)(3).


WILL BE USED BY A DIRECTOR IN EXAMINING THE TAXPAYER'S RETURN

.03 When determining a taxpayer's liability, the director must
ascertain whether--

(1) the conclusions stated in the letter ruling are properly reflected
in the return;

(2) the representations upon which the letter ruling was based
reflected an accurate statement of the material facts;

(3) the transaction was carried out substantially as proposed; and

(4) there has been any change in the law that applies to the period
during which the transaction or continuing series of transactions were
consummated.


If, when determining the liability, the director finds that a letter
ruling should be revoked or modified, the findings and recommendations of
the director will be forwarded to the national office for consideration
before further action is taken by the director. Such a referral to the
national office will be treated as a request for technical advice and the
provisions of Rev. Proc. 2002-2 will be followed. Otherwise, the letter
ruling is to be applied by the director in the determination of the
taxpayer's liability. Appropriate coordination with the national office
will be undertaken if any field official having jurisdiction over a return
or other matter proposes to reach a conclusion contrary to a letter ruling
previously issued to the taxpayer.


MAY BE REVOKED OR MODIFIED IF FOUND TO BE IN ERROR

.04 Unless it was part of a closing agreement as described in section
2.02 of this revenue procedure, a letter ruling found to be in error or
not in accord with the current views of the Service may be revoked or
modified. If a letter ruling is revoked or modified, the revocation or
modification applies to all years open under the period of limitations
unless the Service uses its discretionary authority under section 7805(b)
to limit the retroactive effect of the revocation or modification.

A letter ruling may be revoked or modified due to--

(1) a notice to the taxpayer to whom the letter ruling was issued;

(2) the enactment of legislation or ratification of a tax treaty;

(3) a decision of the United States Supreme Court;

(4) the issuance of temporary or final regulations; or

(5) the issuance of a revenue ruling, revenue procedure, notice, or
other statement published in the Internal Revenue Bulletin.


Consistent with these provisions, if a letter ruling relates to a
continuing action or a series of actions, it ordinarily will be applied
until any one of the events described above occurs or until it is
specifically withdrawn.

Publication of a notice of proposed rulemaking will not affect the
application of any letter ruling issued under this revenue procedure.


NOT GENERALLY REVOKED OR MODIFIED RETROACTIVELY

.05 Except in rare or unusual circumstances, the revocation or
modification of a letter ruling will not be applied retroactively to the
taxpayer for whom the letter ruling was issued or to a taxpayer whose tax
liability was directly involved in the letter ruling provided that--

(1) there has been no misstatement or omission of material facts;

(2) the facts at the time of the transaction are not materially
different from the facts on which the letter ruling was based;

(3) there has been no change in the applicable law;

(4) the letter ruling was originally issued for a proposed transaction;
and

(5) the taxpayer directly involved in the letter ruling acted in good
faith in relying on the letter ruling, and revoking or modifying the
letter ruling retroactively would be to the taxpayer's detriment. For
example, the tax liability of each shareholder is directly involved in a
letter ruling on the reorganization of a corporation. However, the tax
liability of a member of an industry is not directly involved in a letter
ruling issued to another member and, therefore, the holding in a
revocation or modification of a letter ruling to one member of an industry
may be retroactively applied to other members of the industry. By the same
reasoning, a tax practitioner may not extend to one client the
non-retroactive application of a revocation or modification of a letter
ruling previously issued to another client.


If a letter ruling is revoked or modified by letter with retroactive
effect, the letter will, except in fraud cases, state the grounds on which
the letter ruling is being revoked or modified and explain the reasons why
it is being revoked or modified retroactively.


RETROACTIVE EFFECT OF REVOCATION OR MODIFICATION APPLIED TO A
PARTICULAR TRANSACTION

.06 A letter ruling issued on a particular transaction represents a
holding of the Service on that transaction only. It will not apply to a
similar transaction in the same year or any other year. And, except in
unusual circumstances, the application of that letter ruling to the
transaction will not be affected by the later issuance of regulations
(either temporary or final) if conditions (1) through (5) in section 12.05
of this revenue procedure are met.

However, if a letter ruling on a transaction is later found to be in
error or no longer in accord with the position of the Service, it will not
protect a similar transaction of the taxpayer in the same year or later
year.


RETROACTIVE EFFECT OF REVOCATION OR MODIFICATION APPLIED TO A
CONTINUING ACTION OR SERIES OF ACTIONS

.07 If a letter ruling is issued covering a continuing action or series
of actions and the letter ruling is later found to be in error or no
longer in accord with the position of the Service, the Associate Chief
Counsel (Corporate), the Associate Chief Counsel (Financial Institutions &
Products), the Associate Chief Counsel (Income Tax & Accounting), the
Associate Chief Counsel (International), the Associate Chief Counsel
(Passthroughs & Special Industries), the Associate Chief Counsel
(Procedure and Administration), or the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities), as appropriate, ordinarily
will limit the retroactive effect of the revocation or modification to a
date that is not earlier than that on which the letter ruling is revoked
or modified. For example, the retroactive effect of the revocation or
modification of a letter ruling covering a continuing action or series of
actions ordinarily would be limited in the following situations when the
letter ruling is in error or no longer in accord with the position of the
Service:

(1) A taxpayer received a letter ruling that certain payments are
excludable from gross income for federal income tax purposes. However, the
taxpayer ordinarily would be protected only for the payment received after
the letter ruling was issued and before the revocation or modification of
the letter ruling.

(2) A taxpayer rendered a service or provided a facility that is
subject to the excise tax on services or facilities and, in relying on a
letter ruling received, did not pass the tax on to the user of the service
or the facility.

(3) An employer incurred liability under the Federal Insurance
Contributions Act but, in relying on a letter ruling received, neither
collected the employee tax nor paid the employee and employer taxes under
the Federal Insurance Contributions Act. The retroactive effect would be
limited for both the employer and employee tax. However, the limitation
would be conditioned on the employer furnishing wage data, as may be
required by section 31.6011(a)-1 of the Employment Tax Regulations.


GENERALLY NOT RETROACTIVELY REVOKED OR MODIFIED IF RELATED TO SALE OR
LEASE SUBJECT TO EXCISE TAX

.08 A letter ruling holding that the sale or lease of a particular
article is subject to the manufacturer's excise tax or the retailer's
excise tax may not retroactively revoke or modify an earlier letter ruling
holding that the sale or lease of such an article was not taxable if the
taxpayer to whom the letter ruling was issued, in relying on the earlier
letter ruling, gave up possession or ownership of the article without
passing the tax on to the customer. (Section 1108(b), Revenue Act of
1926.)


MAY BE RETROACTIVELY REVOKED OR MODIFIED WHEN TRANSACTION IS ENTERED
INTO BEFORE THE ISSUANCE OF THE LETTER RULING

.09 A taxpayer is not protected against retroactive revocation or
modification of a letter ruling involving a transaction completed before
the issuance of the letter ruling or involving a continuing action or
series of actions occurring before the issuance of the letter ruling
because the taxpayer did not enter into the transaction relying on a
letter ruling.


MAY BE RETROACTIVELY REVOKED OR MODIFIED WHEN TRANSACTION IS ENTERED
INTO AFTER A CHANGE IN MATERIAL FACTS

.10 If a letter ruling is issued covering a particular transaction and
the material facts on which the letter ruling is based are later changed,
a taxpayer is not protected against retroactive revocation or modification
of the letter ruling when the transaction is completed after the change in
the material facts. Similarly, a taxpayer is not protected against
retroactive revocation or modification of a letter ruling involving a
continuing action or a series of actions occurring after the material
facts on which the letter ruling is based have changed.


TAXPAYER MAY REQUEST THAT RETROACTIVITY BE LIMITED

.11 Under section 7805(b), the Service may prescribe any extent to
which a revocation or modification of a letter ruling will be applied
without retroactive effect.

A taxpayer to whom a letter ruling has been issued may request that the
Associate Chief Counsel (Corporate), the Associate Chief Counsel
(Financial Institutions & Products), the Associate Chief Counsel (Income
Tax & Accounting), the Associate Chief Counsel (International), the
Associate Chief Counsel (Passthroughs & Special Industries), the Associate
Chief Counsel (Procedure and Administration), or the Division Counsel/
Associate Chief Counsel (Tax Exempt and Government Entities), as
appropriate, limit the retroactive effect of any revocation or
modification of the letter ruling.


Format of request

(1) REQUEST FOR RELIEF UNDER SECTION 7805(b) MUST BE MADE IN REQUIRED
FORMAT.

A request to limit the retroactive effect of the revocation or
modification of a letter ruling must be in the general form of, and meet
the general requirements for, a letter ruling request. These requirements
are given in section 8 of this revenue procedure. Specifically, the
request must also--

(a) state that it is being made under section 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief
requested (including a discussion of the five items listed in section
12.05 of this revenue procedure and any other factors as they relate to
the taxpayer's particular situation); and

(d) include any documents bearing on the request.


A request that the Service limit the retroactive effect of a revocation
or modification of a letter ruling may be made in the form of a separate
request for a letter ruling when, for example, a revenue ruling has the
effect of modifying or revoking a letter ruling previously issued to the
taxpayer or when the Service notifies the taxpayer of a change in position
that will have the effect of revoking or modifying the letter ruling.

However, when notice is given by the director during an examination of
the taxpayer's return or by the Area Director, Appeals LMSB, or Area
Director, Appeals SB/SE-TE/GE, as appropriate, during consideration of the
taxpayer's return before an area office, a request to limit retroactive
effect must be made in the form of a request for technical advice as
explained in section 18.03 of Rev. Proc. 2002-2.

When germane to a pending letter ruling request, a request to limit the
retroactive effect of a revocation or modification of a letter ruling may
be made as part of the request for the letter ruling, either initially or
at any time before the letter ruling is issued. When a letter ruling that
concerns a continuing transaction is revoked or modified by, for example,
a subsequent revenue ruling, a request to limit retroactive effect must be
made before the examination of the return that contains the transaction
that is the subject of the letter ruling request.


Request for conference

(2) TAXPAYER MAY REQUEST A CONFERENCE ON APPLICATION OF SECTION
7805(b).

A taxpayer who requests the application of section 7805(b) in a
separate letter ruling request has the right to a conference in the
national office as explained in sections 11.02, 11.04, and 11.05 of this
revenue procedure. If the request is made initially as part of a pending
letter ruling request or is made before the conference of right is held on
the substantive issues, the section 7805(b) issue will be discussed at the
taxpayer's one conference of right as explained in section 11.02 of this
revenue procedure. If the request for the application of section 7805(b)
relief is made as part of a pending letter ruling request after a
conference has been held on the substantive issue and the Service
determines that there is justification for having delayed the request, the
taxpayer is entitled to one conference of right concerning the application
of section 7805(b), with the conference limited to discussion of this
issue only.


SECTION 13. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

HAS SAME EFFECT AS A LETTER RULING

.01 A determination letter issued by a director has the same effect as
a letter ruling issued to a taxpayer under section 12 of this revenue
procedure.

If a director proposes to reach a conclusion contrary to that expressed
in a determination letter, he or she need not refer the matter to the
national office as is required for a letter ruling found to be in error.
However, the director must refer the matter to the national office if the
director desires to have the revocation or modification of the
determination letter limited under section 7805(b).


TAXPAYER MAY REQUEST THAT RETROACTIVE EFFECT OF REVOCATION OR
MODIFICATION BE LIMITED

.02 Under section 7805(b), the Service may prescribe any extent to
which a revocation or modification of a determination letter will be
applied without retroactive effect. However, a director does not have
authority under section 7805(b) to limit the revocation or modification of
the determination letter. Therefore, if a director proposes to revoke or
modify a determination letter, the taxpayer may request limitation of the
retroactive effect of the revocation or modification by asking the
director who issued the determination letter to seek technical advice from
the national office. See section 18.03 of Rev. Proc. 2002-2.



Format of request

(1) REQUEST FOR RELIEF UNDER SECTION 7805(b) MUST BE MADE IN REQUIRED
FORMAT.

A taxpayer's request to limit the retroactive effect of the revocation
or modification of the determination letter must be in the form of, and
meet the general requirements for, a technical advice request. See section
18.03 of Rev. Proc. 2002-2. The request must also--

(a) state that it is being made under section 7805(b);

(b) state the relief sought;

(c) explain the reasons and arguments in support of the relief sought
(including a discussion of the five items listed in section 12.05 of this
revenue procedure and any other factors as they relate to the taxpayer's
particular situation); and

(d) include any documents bearing on the request.


Request for conference

(2) TAXPAYER MAY REQUEST A CONFERENCE ON APPLICATION OF SECTION
7805(b).

When technical advice is requested regarding the application of section
7805(b), the taxpayer has the right to a conference in the national office
to the same extent as does any taxpayer who is the subject of a technical
advice request. See sections 13 and 18.04 of Rev. Proc. 2002-2.


SECTION 14. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN A FIELD
OFFICE AND THE NATIONAL OFFICE?

REQUESTS FOR DETERMINATION LETTERS

.01 Requests for determination letters received by directors that,
under the provisions of this revenue procedure, may not be issued by a
field office, will be forwarded to the national office for reply. The
field office will notify the taxpayer that the matter has been referred.

Directors will also refer to the national office any request for a
determination letter that in their judgment should have the attention of
the national office.


NO-RULE AREAS REQUESTS FOR LETTER RULINGS

.02 If the request involves an issue on which the Service will not
issue a letter ruling or determination letter, the request will not be
forwarded to the national office. The field office will notify the
taxpayer that the Service will not issue a letter ruling or a
determination letter on the issue. See section 7 of this revenue procedure
for a description of no-rule areas.


REQUESTS FOR LETTER RULINGS

.03 Requests for letter rulings received by the national office that,
under section 5 of this revenue procedure, may not be acted upon by the
national office will be forwarded to the field office that has examination
jurisdiction over the taxpayer's return. The taxpayer will be notified of
this action. If the request is on an issue or in an area of the type
discussed in section 7 of this revenue procedure and the Service decides
not to issue a letter ruling or an information letter, the national office
will notify the taxpayer and will then forward the request to the
appropriate field office for association with the related return.


SECTION 15. WHAT ARE THE USER FEE REQUIREMENTS FOR REQUESTS FOR LETTER
RULINGS AND DETERMINATION LETTERS?

LEGISLATION AUTHORIZING USER FEES

.01 Section 10511 of the Revenue Act of 1987, 1987-3 C.B. 1, 166,
enacted December 22, 1987, as amended by section 11319 of the Omnibus
Budget Reconciliation Act of 1990, 1991-2 C.B. 481, 511, enacted November
5, 1990, by section 743 of the Uruguay Round Agreements Act, 1995-1 C.B.
230, 239, enacted December 8, 1994, and by section 2 of the Tax Benefits
for Individuals Performing Services in Certain Hazardous Duty Areas,
1996-3 C.B. 1, enacted March 20, 1996 (hereafter the four laws are
referred to together as the "Act"), provides that the Secretary of the
Treasury or delegate (the "Secretary") shall establish a program requiring
the payment of user fees for requests to the Service for letter rulings,
opinion letters, determination letters, and similar requests. The fees
apply to requests made on or after February 1, 1988, and before October 1,
2003. The fees charged under the program are to: (1) vary according to
categories or subcategories established by the Secretary; (2) be
determined after taking into account the average time for, and difficulty
of, complying with requests in each category and subcategory; and (3) be
payable in advance. The Secretary is to provide for exemptions and reduced
fees under the program as the Secretary determines to be appropriate, but
the average fee applicable to each category must not be less than the
amount specified in the Act.


REQUESTS TO WHICH A USER FEE APPLIES

.02 In general, user fees apply to all requests for--

(1) letter rulings, determination letters, and advance pricing
agreements;

(2) closing agreements described in paragraph (A)(3)(d) of Appendix A
of this revenue procedure;

(3) renewal of advance pricing agreements; and

(4) reconsideration of letter rulings or determination letters.


Requests to which a user fee applies must be accompanied by the
appropriate fee as determined from the fee schedule provided in Appendix A
of this revenue procedure. The fee may be refunded as provided in section
15.10 of this revenue procedure.


REQUESTS TO WHICH A USER FEE DOES NOT APPLY

.03 User fees do not apply to--

(1) elections made pursuant to section 301.9100-2, pertaining to
automatic extensions of time (see section 5.02 of this revenue procedure);

(2) late S corporation and related elections made pursuant to Rev.
Proc. 98-55 or Rev. Proc. 97-48 (see section 5.01(3) of this revenue
procedure);

(3) requests for information letters; or

(4) requests for a change in accounting period or accounting method
permitted to be made by a published automatic change revenue procedure
(see section 9.03 of this revenue procedure).


EXEMPTIONS FROM THE USER FEE REQUIREMENTS

.04 The user fee requirements do not apply to--

(1) departments, agencies, or instrumentalities of the United States
that certify that they are seeking a letter ruling or determination letter
on behalf of a program or activity funded by federal appropriations. The
fact that a user fee is not charged does not have any bearing on whether
an applicant is treated as an agency or instrumentality of the United
States for purposes of any provision of the Code; or

(2) requests as to whether a worker is an employee for federal
employment taxes and income tax withholding purposes (chapters 21, 22, 23,
and 24 of subtitle C of the Code) submitted on Form SS-8, Information for
Use in Determining Whether a Worker Is an Employee for Federal Employment
Taxes and Income Tax Withholding, or its equivalent.


FEE SCHEDULE

.05 The schedule of user fees is provided in Appendix A of this revenue
procedure. For the user fee requirements applicable to--

(1) requests for advance pricing agreements or renewals of advance
pricing agreements, see section 5.14 of Rev. Proc. 96-53, 1996-2 C.B. at
379; or

(2) requests for letter rulings, determination letters, etc., under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division, see Rev. Proc. 2002-8.


APPLICABLE USER FEE FOR A REQUEST INVOLVING MULTIPLE OFFICES, FEE
CATEGORIES, ISSUES, TRANSACTIONS, OR ENTITIES

.06

(1) REQUESTS INVOLVING SEVERAL OFFICES. If a request dealing with only
one transaction involves more than one of the offices within the Service
(for example, one issue is under the jurisdiction of the Associate Chief
Counsel (Passthroughs & Special Industries) and another issue is under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division), only one fee applies, namely the highest fee that otherwise
would apply to each of the offices involved. See Rev. Proc. 2002-8 for the
user fees applicable to issues under the jurisdiction of the Commissioner,
Tax Exempt and Government Entities Division.

(2) REQUESTS INVOLVING SEVERAL FEE CATEGORIES. If a request dealing
with only one transaction involves more than one fee category, only one
fee applies, namely the highest fee that otherwise would apply to each of
the categories involved.

(3) REQUESTS INVOLVING SEVERAL ISSUES. If a request dealing with only
one transaction involves several issues, a request for a change in
accounting method dealing with only one item or sub-method of accounting
involves several issues, or a request for a change in accounting period
dealing with only one item involves several issues, the request is treated
as one request. Therefore, only one fee applies, namely the fee that
applies to the particular category or subcategory involved. The addition
of a new issue relating to the same transaction or item will not result in
an additional fee, unless the issue places the transaction or item in a
higher fee category.

(4) REQUESTS INVOLVING SEVERAL UNRELATED TRANSACTIONS. If a request
involves several unrelated transactions, a request for a change in
accounting method involves several unrelated items or sub-methods of
accounting, or a request for a change in accounting period involves
several unrelated items, each transaction or item is treated as a separate
request. As a result, a separate fee will apply for each unrelated
transaction or item. An additional fee will apply if the request is
changed by the addition of an unrelated transaction or item not contained
in the initial request. An example of a request involving unrelated
transactions is a request involving relief under section 301.9100-3 and
the underlying issue.

(5) REQUESTS INVOLVING SEVERAL ENTITIES. Each entity involved in a
transaction (for example, a reorganization) that desires a separate letter
ruling in its own name must pay a separate fee regardless of whether the
transaction or transactions may be viewed as related. But see section
15.07 of this revenue procedure.


APPLICABLE USER FEE FOR SUBSTANTIALLY IDENTICAL LETTER RULINGS OR
IDENTICAL ACCOUNTING METHOD CHANGES

.07

(1) IN GENERAL. The user fees provided in paragraph (A)(5) of Appendix
A of this revenue procedure apply to the situations described in sections
15.07(2) and 15.07(3) of this revenue procedure. To assist in the
processing of these user fee requests, all letter ruling requests
submitted under this section 15.07 should--

(a) Type or print at the top of the letter ruling request: "REQUEST FOR
USER FEE UNDER SECTION 15.07 OF REV. PROC. 2002-1";

(b) List on the first page of the submission all taxpayers and entities
requesting a letter ruling (including the taxpayer identification number,
and the amount of user fee submitted, for each taxpayer or entity); and

(c) Submit one check to cover all user fees.


If the Service determines that the letter ruling requests do not
qualify for the user fee provided in paragraph (A)(5) of Appendix A of
this revenue procedure, the Service will request the proper fee. See
section 15.09 of this revenue procedure.

(2) SUBSTANTIALLY IDENTICAL LETTER RULINGS. The user fee provided in
paragraph (A)(5)(a) of Appendix A of this revenue procedure applies to a
taxpayer that requests substantially identical letter rulings (including
accounting period, accounting method, and earnings and profits requests
other than those submitted on Forms 1128, 2553, 3115, and 5452) for either
multiple entities with a common member or sponsor, or multiple members of
a common entity. To qualify for this user fee, all information and
underlying documents must be substantially identical and all letter ruling
requests must be submitted at the same time. In addition, the letter
ruling requests must--

(a) State that the letter ruling requests, and all information and
underlying documents, are substantially identical; and

(b) Specifically identify the extent to which the letter ruling
requests, information, and underlying documents are not identical.


(3) IDENTICAL ACCOUNTING METHOD CHANGES AND RELATED SECTION 301.9100
LETTER RULINGS. The user fees provided in paragraphs (A)(5)(b) and (c) of
Appendix A of this revenue procedure apply to a parent corporation that
requests either the identical accounting method change on a single Form
3115 on behalf of more than one member of a consolidated group or an
extension of time to file Form 3115 under section 301.9100-3 for the
identical accounting method change on behalf of more than one member of a
consolidated group. To qualify for this user fee, the taxpayers in the
consolidated group must be members of the same affiliated group under
section 1504(a) that join in the filing of a consolidated tax return and
must be requesting to change from the identical present method of
accounting to the identical proposed method of accounting. All aspects of
the requested accounting method change, including the present and proposed
methods, the underlying facts and the authority for the request, must be
identical, except for the section 481(a) adjustment for the year of
change.

In addition, a parent corporation must file a single Form 3115. Besides
including all the information required on the Form 3115, the parent
corporation must, for each member of a consolidated group for which the
accounting method change is being requested, attach to the Form 3115 a
schedule providing its name, employer identification number, and section
481(a) adjustment for the year of change. The Form 3115 must be signed by
a duly authorized officer of the parent corporation.

In the case of a section 301.9100 request for an extension of time to
file Form 3115, a parent corporation must submit the information required
in the above paragraph in addition to the information required by section
5.02 of this revenue procedure.


METHOD OF PAYMENT

.08 Each request to the Service for a letter ruling, determination
letter, advance pricing agreement, closing agreement described in
paragraph (A)(3)(d) of Appendix A of this revenue procedure, or
reconsideration of a letter ruling or determination letter must be
accompanied by a check or money order in U.S. dollars, payable to the
Internal Revenue Service, in the appropriate amount. (However, the user
fee check or money order should not be attached to the Form 2553, Election
by a Small Business Corporation, when it is filed at the Service Center.
If on the Form 2553 the corporation requests a ruling that it be permitted
to use a fiscal year under section 6.03 of Rev. Proc. 87-32, the Service
Center will forward the request to the national office. When the national
office receives the Form 2553 from the Service Center, it will notify the
taxpayer that the fee is due.) Taxpayers should not send cash.


EFFECT OF NONPAYMENT OR PAYMENT OF INCORRECT AMOUNT

.09 If a request is not accompanied by a properly completed check or
money order or is accompanied by a check or money order for less than the
correct amount, the respective office within the Service that is
responsible for issuing the letter ruling, determination letter, advance
pricing agreement, closing agreement, or reconsideration of a letter
ruling or determination letter generally will exercise discretion in
deciding whether to return immediately the request. If a request is not
immediately returned, the taxpayer will be contacted and given a
reasonable amount of time to submit the proper fee. If the proper fee is
not received within a reasonable amount of time, the entire request will
then be returned. However, the Service will usually defer substantive
consideration of a request until proper payment has been received. The
return of a request to the taxpayer may adversely affect substantive
rights if the request is not perfected and resubmitted to the Service
within 30 days of the date of the cover letter returning the request.

If a request is accompanied by a check or money order for more than the
correct amount, the request will be accepted and the amount of the excess
payment will be returned to the taxpayer.


REFUNDS OF USER FEE

.10 In general, the user fee will not be refunded unless the Service
declines to rule on all issues for which a ruling is requested.

(1) The following situations are examples of situations in which the
user fee will not be refunded:

(a) The request for a letter ruling, determination letter, etc., is
withdrawn at any time subsequent to its receipt by the Service, unless the
only reason for withdrawal is that the Service has advised the taxpayer
that a higher user fee than was sent with the request is applicable and
the taxpayer is unwilling to pay the higher fee.

(b) The request is procedurally deficient, although accompanied by the
proper fee or an overpayment, and is not timely perfected by the
requester. When there is a failure to perfect timely the request, the case
will be considered closed and the failure to perfect will be treated as a
withdrawal for purposes of this revenue procedure. See section 10.06(3) of
this revenue procedure.

(c) The Service notifies the taxpayer that the Service will not issue
the letter ruling and has closed the case as a result of the taxpayer's
failure to submit timely the additional information requested by the
Service. The failure to submit the additional information will be treated
as a withdrawal for purposes of this revenue procedure. See section
10.07(5) of this revenue procedure.

(d) A letter ruling, determination letter, etc., is revoked in whole or
in part at the initiative of the Service. The fee paid at the time the
original letter ruling, determination letter, etc., was requested will not
be refunded.

(e) The request contains several issues, and the Service rules on some,
but not all, of the issues. The highest fee applicable to the issues on
which the Service rules will not be refunded.

(f) The taxpayer asserts that a letter ruling the taxpayer received
covering a single issue is erroneous or not responsive (other than an
issue on which the Service has declined to rule) and requests
reconsideration. The Service, upon reconsideration, does not agree that
the letter ruling is erroneous or is not responsive. The fee accompanying
the request for reconsideration will not be refunded.

(g) The situation is the same as described in paragraph (f) of this
section 15.10(1) except that the letter ruling covered several unrelated
transactions. The Service, upon reconsideration, does not agree with the
taxpayer that the letter ruling is erroneous or is not responsive for all
of the transactions, but does agree that it is erroneous as to one
transaction. The fee accompanying the request for reconsideration will not
be refunded except to the extent applicable to the transaction for which
the Service agrees the letter ruling was in error.

(h) The request is for a supplemental letter ruling, determination
letter, etc., concerning a change in facts (whether significant or not)
relating to the transaction on which the Service ruled.

(i) The request is for reconsideration of an adverse or partially
adverse letter ruling or a final adverse determination letter, and the
taxpayer submits arguments and authorities not submitted before the
original letter ruling or determination letter was issued.


(2) The following situations are examples of situations in which the
user fee will be refunded:

(a) In a situation to which section 15.10(1)(i) of this revenue
procedure does not apply, the taxpayer asserts that a letter ruling the
taxpayer received covering a single issue is erroneous or is not
responsive (other than an issue on which the Service declined to rule) and
requests reconsideration. The Service agrees, upon reconsideration, that
the letter ruling is erroneous or is not responsive. The fee accompanying
the taxpayer's request for reconsideration will be refunded.

(b) In a situation to which section 15.10(1)(i) of this revenue
procedure does not apply, the taxpayer requests a supplemental letter
ruling, determination letter, etc., to correct a mistake that the Service
agrees it made in the original letter ruling, determination letter, etc.,
such as a mistake in the statement of facts or in the citation of a Code
section. Once the Service agrees that it made a mistake, the fee
accompanying the request for the supplemental letter ruling, determination
letter, etc., will be refunded.

(c) The taxpayer requests and is granted relief under section 7805(b)
in connection with the revocation in whole or in part, of a previously
issued letter ruling, determination letter, etc. The fee accompanying the
request for relief will be refunded.

(d) In a situation to which section 15.10(1)(e) of this revenue
procedure applies, the taxpayer requests reconsideration of the Service's
decision not to rule on an issue. Once the Service agrees to rule on the
issue, the fee accompanying the request for reconsideration will be
refunded.

(e) The letter ruling is not issued and taking into account all the
facts and circumstances, including the Service's resources devoted to the
request, the associate or assistant chief counsel, as appropriate, in his
or her sole discretion decides a refund is appropriate.


REQUEST FOR RECONSIDERATION OF USER FEE

.11 A taxpayer that believes the user fee charged by the Service for
its request for a letter ruling, determination letter, advance pricing
agreement, or closing agreement is either inapplicable or incorrect and
wishes to receive a refund of all or part of the amount paid (see section
15.10 of this revenue procedure) may request reconsideration and, if
desired, the opportunity for an oral discussion by sending a letter to the
Service at the appropriate address given in section 8.03 in this revenue
procedure. Both the incoming envelope and the letter requesting such
reconsideration should be prominently marked "USER FEE RECONSIDERATION
REQUEST." No user fee is required for these requests. The request should
be marked for the attention of:

If the matter involves primarily: Mark for the attention of:
--------------------------------- --------------------------
Associate Chief Counsel (Corporate) Associate Chief Counsel (Corporate)
letter ruling requests

Associate Chief Counsel (Financial Associate Chief Counsel (Financial
Institutions & Products) letter Institutions & Products)
ruling requests

Associate Chief Counsel (Income Associate Chief Counsel (Income Tax
Tax & Accounting) letter ruling & Accounting)
requests

Associate Chief Counsel Associate Chief Counsel
(International) letter ruling and (International)
advance pricing agreement requests

Associate Chief Counsel Associate Chief Counsel
(Passthroughs
(Passthroughs & Special & Special Industries)
Industries) letter ruling requests

Associate Chief Counsel (Procedure Associate Chief Counsel (Procedure
and Administration) letter ruling and Administration)
requests

Division Counsel/Associate Chief Assistant Chief Counsel (____)
Counsel (Tax Exempt and (Complete by using whichever of the
Government Entities) letter ruling following designations applies.)
requests
(Employee Benefits)
(Employment Tax/Exempt
Organizations/Government Entities)

Determination letter requests Manager, Office of Pre-Filing
submitted pursuant to this revenue Services
procedure by taxpayers under the
jurisdiction of LMSB

Determination letter requests Complete by using whichever of the
submitted pursuant to this revenue following designations applies.
procedure by taxpayers under the
jurisdiction of SB/SE, W&I, or Area Director, Field Compliance,
TE/GE SB/SE
Director, Compliance, W&I
Director, Employee Plans
Examinations
Director, Exempt Organizations
Examinations
Director, Federal, State & Local
Governments
Director, Tax Exempt Bonds
Director, Indian Tribal Governments

____
(Add name of field office handling
the request.)


SECTION 16. WHAT ARE THE GENERAL PROCEDURES APPLICABLE TO INFORMATION
LETTERS ISSUED BY THE NATIONAL OFFICE?

WILL BE MADE AVAILABLE TO THE PUBLIC

.01 Information letters that are issued by the national office to
members of the public will be made available to the public. These
documents provide general statements of well-defined law without applying
them to a specific set of facts. See section 2.04 of this revenue
procedure. Information letters that are issued by the field or a director,
however, will not be made available to the public.

The following documents also will not be available for public
inspection as part of this process:

(1) letters that merely transmit Service publications or other publicly
available material, without significant legal discussion;

(2) responses to taxpayer or third party contacts that are inquiries
with respect to a pending request for a letter ruling, technical advice
memorandum, or Chief Counsel Advice (whose public inspection is subject to
section 6110); and

(3) responses to taxpayer or third party communications with respect to
any investigation, audit, litigation, or other enforcement action.



Deletions made under the Freedom of Information Act

.02 Before any information letter is made available to the public, the
national office will delete any name, address, and other identifying
information as appropriate under the Freedom of Information Act ("FOIA")
(for example, FOIA personal privacy exemption of 5 U.S.C. section
552(b)(6) and tax details exempt pursuant to section 6103, as incorporated
into FOIA by 5 U.S.C. section 552(b)(3)). Because information letters do
not constitute written determinations (including Chief Counsel Advice) as
defined in section 6110, these documents are not subject to public
inspection under section 6110.


EFFECT OF INFORMATION LETTERS

.03 Information letters are advisory only and have no binding effect on
the Service. See section 2.04 of this revenue procedure. If the national
office issues an information letter in response to a request for a letter
ruling that does not meet the requirements of this revenue procedure, the
information letter is not a substitute for a letter ruling.


SECTION 17. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REV. PROC. 2001-1?

.01 Section 1 is amended to reflect the current descriptions of the
LMSB and SB/SE divisions.

.02 Section 5.05 has been amended to provide that, in limited
circumstances, the national office will consider a request for an estate
tax letter ruling after the return has been filed but before it has been
examined.

.03 Section 7.04 has been amended to provide that the Service will not
rule on frivolous issues.

.04 Section 8.03(1)(b) is amended to reflect the current operating
hours of the courier's desk.

.05 Section 8.03(2)(b) is amended to reflect the change in procedure
for W&I taxpayers requesting determination letters.

.06 Section 9 is updated to reflect the revenue procedures and notices
effective on December 31, 2001.

.07 Section 11.07 is amended to clarify that a pre-submission
conference is held only if the identity of the taxpayer is provided to the
national office at the time the conference is requested.


SECTION 18. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER
DOCUMENTS?

.01 Rev. Proc. 2001-1, 2001-1 I.R.B. 1, is superseded.

.02 Notice 97-19, 1997-1 C.B. 394, is modified by deleting all
references to Rev. Proc. 97-1 and replacing them with references to this
revenue procedure.

.03 Rev. Proc. 96-13, 1996-1 C.B. 616, is modified by deleting all
references to Rev. Proc. 96-1 and replacing them with references to this
revenue procedure.

.04 Rev. Proc. 84-37, 1984-1 C.B. 513, is modified by deleting all
references to Rev. Proc. 84-1 and replacing them with references to this
revenue procedure. Section 3.04 is modified by deleting the address
contained therein and replacing it with the addresses in section 8.03(1)
of this revenue procedure.


SECTION 19. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?

This revenue procedure is effective January 7, 2002.


SECTION 20. PAPERWORK REDUCTION ACT

The collections of information contained in this revenue procedure have
been reviewed and approved by the Office of Management and Budget in
accordance with the Paperwork Reduction Act (44 U.S.C. section 3507) under
control number 1545-1522.

An agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.

The collections of information in this revenue procedure are in
sections 5.05, 6.07, 8.01, 8.02, 8.03, 8.04, 8.05, 8.07, 9.01 (subject
matter -- rate orders; regulatory agency; normalization), 10.06, 10.07,
10.09, 11.01, 11.06, 11.07, 12.11, 13.02, 15.02, 15.07, 15.08, 15.09, and
15.11, paragraph (B)(1) of Appendix A, and Appendix C. This information is
required to evaluate and process the request for a letter ruling or
determination letter. In addition, this information will be used to help
the Service delete certain information from the text of the letter ruling
or determination letter before it is made available for public inspection,
as required by section 6110. The collections of information are required
to obtain a letter ruling or determination letter. The likely respondents
are business or other for-profit institutions.

The estimated total annual reporting and/or recordkeeping burden is
305,140 hours.

The estimated annual burden per respondent/recordkeeper varies from 1
to 200 hours, depending on individual circumstances, with an estimated
average burden of 80.3 hours. The estimated number of respondents and/or
recordkeepers is 3,800.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and tax
return information are confidential, as required by section 6103.


DRAFTING INFORMATION

The principal author of this revenue procedure is Lydia Taylor of the
Office of Associate Chief Counsel (Procedure and Administration). For
further information regarding this revenue procedure for matters under the
jurisdiction of--

(1) the Associate Chief Counsel (Corporate), the Associate Chief
Counsel (Financial Institutions & Products), the Associate Chief Counsel
(Income Tax & Accounting), the Associate Chief Counsel (Passthroughs &
Special Industries), the Associate Chief Counsel (Procedure and
Administration), or the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities), contact George Bowden or Henry
Schneiderman at (202) 622-3400 (not a toll-free call); or

(2) the Associate Chief Counsel (International), contact Gerard
Traficanti at (202) 622-3619 (not a toll-free call).


For further information regarding user fees, contact the Chief,
Technical Services Staff, at (202) 622-7560 (not a toll-free call).


INDEX

References are to sections in Rev. Proc. 2002-1

ADDITIONAL INFORMATION
-- perjury statement required 10.07(1)
-- proposed deletions under section 6110 8.01(11)
-- requested during initial contact 10.06
failure to submit 10.06(3)
-- subsequent requests 10.07
after conference 11.06
failure to submit 10.07(5)
-- where to send 10.07(2)

CHANGES IN ACCOUNTING METHOD OR PERIOD
-- applicable sections of Rev. Proc. 2002-1 9.01
-- automatic change revenue procedures 9.03
-- identical accounting method changes 8.02(8), 10.10, 15.07,
Appendix A
-- user fees 15, Appendix A

CHECKLIST REQUIRED 8.01(18), Appendix C

CONFERENCES
-- offered 10.04, 11.02
after conference of right 11.05
application of section 6110 8.01(11)
-- requesting a conference 8.02(7)
-- scheduling 11.01, 11.02
application of section 7805(b) 12.11(2), 13.02(2)
pre-submission conferences 11.07
telephone conferences 11.08

DEFINITIONS
-- area office 1
-- closing agreement 2.02
-- determination letter 2.03
-- director 1
-- field office 1
-- information letter 2.04
-- letter ruling 2.01
-- national office 1
-- revenue ruling 2.05
-- taxpayer 1

DETERMINATIONS UNDER SECTION 999(d) 5.03

DISCUSSIONS NOT BINDING ON SERVICE
-- at pre-submission conference 11.07
-- informal opinion expressed 10.05
-- oral advice to taxpayers 2.06(2)

EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS
-- jurisdiction of Commissioner, Tax
Exempt and Government Entities
Division 4.02
-- user fees 4.02

ESTATE TAX MATTERS
-- issuance of determination letters 6.02, 6.06
-- issuance of letter rulings 5.05
under section 2032A(c) 5.06

EXPEDITED HANDLING OF LETTER RULING AND
DETERMINATION LETTER REQUESTS 8.02(4)

EXTENSION OF TIME
-- to schedule conference 11.01
-- to submit additional information 10.06(2), 10.07(4),
11.06

FAX TRANSMISSION
-- to receive letter ruling 8.02(5)
-- to receive request for additional
information 8.02(5)
-- to submit additional information 10.07(1)
-- to submit letter ruling request 8.02(6)

HAND DELIVERY OF LETTER RULING REQUESTS 8.03(1)

NO-RULE AREAS 7

ORAL ADVICE TO TAXPAYERS 2.06

PENALTIES OF PERJURY STATEMENT
-- form for letter ruling request 8.01(15)(a)
-- form for submission of additional
information 10.07(1)
-- required with draft letter ruling 10.09
-- signature requirements 8.01(15)(b)

PENDING LETTER RULING REQUESTS
-- when to attach a copy to return 8.04
estate tax matters 5.05
-- when to notify national office 8.04
estate tax matters 5.05

POWER OF ATTORNEY
-- Form 2848 8.01(14) and 8.02(2)
copies sent to multiple representatives 8.02(2)(a)
original sent to representative 8.02(2)(b)
no copy sent to representatives 8.02(2)(c)
-- signature requirements 8.01(14)

PUBLIC DISCLOSURE OF INFORMATION LETTERS 16

PUBLIC INSPECTION UNDER SECTION 6110 8.01(11)
-- signature requirements 8.01(11)(c)

REPRESENTATIVES
-- compliance with Treasury Department
Circular No. 230 8.08
-- power of attorney required 8.01(14)
-- requirements 8.01(13)
employee, general partner, administrator 8.01(13)
foreign representative 8.01(13)

RETROACTIVE REVOCATION OR MODIFICATION
-- of determination letter 13
request to limit retroactive effect 13.02
-- of letter ruling 12.03-12.10
request to limit retroactive effect 12.11

REVENUE RULINGS
-- effect on a letter ruling 12.04
-- request to limit retroactive effect 12.11

SAMPLE OF A LETTER RULING REQUEST 8.01(17), Appendix B

SECTION 301.9100 RELIEF 5.02

SECTION 367 RULINGS 5.04

STATUS OF LETTER RULING AND DETERMINATION
LETTER REQUESTS 8.06

SUBSTANTIALLY IDENTICAL LETTER RULINGS 8.02(8), 10.10,
15.07, Appendix A

USER FEES
-- schedule of user fees Appendix A
-- user fees requirements 15
to reopen case 10.06(3), 10.07(5)

WHERE TO SEND
-- determination letter request 8.03(2)
-- letter ruling request 8.03(1)
additional information 10.07(2)
hand delivery 8.03(1)

WITHDRAWAL OF LETTER RULING AND
DETERMINATION LETTER REQUESTS 8.07


APPENDIX A -- SCHEDULE OF USER FEES

NOTE: Checks or money orders must be in U.S. dollars

(A) FEE SCHEDULE

CATEGORY FEE
-------- ---
(1) User fee for a request for a determination $275
letter from a director. The user fee for each
determination letter request governed by Rev.
Proc. 2002-1 (this revenue procedure).

(2) User fee for a request for an advance See Rev. Proc. 96-53
pricing agreement or a renewal of an advance
pricing agreement.

(3) User fee for a request for a letter ruling
or closing agreement. Except for the user fees
for advance pricing agreements and renewals,
the reduced fees provided in paragraph (A)(4)
of this appendix, the user fees provided in
paragraph (A)(5) of this appendix, and the
exemptions provided in section 15.04 of Rev.
Proc. 2002-1 (this revenue procedure), the
user fee for each request for a letter ruling
or closing agreement under the jurisdiction of
the Associate Chief Counsel (Corporate), the
Associate Chief Counsel (Financial
Institutions & Products), the Associate Chief
Counsel (Income Tax & Accounting), the
Associate Chief Counsel (International), the
Associate Chief Counsel (Passthroughs &
Special Industries), the Associate Chief
Counsel (Procedure and Administration), or the
Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities) is as follows:

(a) Accounting periods

(i) Form 1128 (except as provided in $600
paragraph (A)(4)(a) or (b) of this
appendix)

(ii) Requests made on Part II of Form $600
2553 to use a fiscal year based on
a business purpose (except as
provided in paragraph (A)(4)(a) or
(b) of this appendix)

(iii) Letter ruling requests for $1,200
extensions of time to file Form
1128, Form 8716, or Part II of
Form 2553 under section
301.9100-3 (except as provided in
paragraph (A)(4)(a) or (b) of
this appendix)

(b) Changes in Accounting Methods

(i) Form 3115 (except as provided in $1,200
paragraph (A)(4)(a) or (b), or
(5)(b) of this appendix)

(ii) Letter ruling requests for $1,200
extensions of time to file Form
3115 under section 301.9100-3
(except as provided in paragraph
(A)(4)(a) or (b), or (5)(c) of
this appendix)

NOTE: No user fee is required if the change
in accounting period or accounting method
is permitted to be made pursuant to a
published automatic change revenue
procedure. See section 9.03 of Rev. Proc.
2002-1 (this revenue procedure) for the
list of automatic change revenue procedures
published and/or in effect as of December
31, 2001.

(c) All other letter ruling requests (which $6,000
includes accounting period and accounting
method requests other than those properly
submitted on Form 1128, Part II of Form
2553, or Form 3115) (except as provided in
paragraph (A)(4)(a) or (b), or (5)(a) of
this appendix)

(d) Requests for closing agreements on a $6,000
proposed transaction or on a completed
transaction before a return for the
transaction has been filed in which a
letter ruling on that transaction is not
requested or issued (except as provided in
paragraph (A)(4)(a) or (b) of this
appendix)

NOTE: A taxpayer that receives relief under
section 301.9100-3 (for example, an
extension of time to file Form 3115) will
be charged a separate user fee for the
letter ruling request on the underlying
issue (for example, the accounting period
or accounting method application).

(4) Reduced user fee for a request for a
letter ruling or closing agreement. A reduced
user fee is provided in the following
situations if the person provides the
certification described in paragraph (B)(1) of
this appendix:

(a) Request involves a personal tax issue $500
from a person with gross income (as
determined under paragraphs (B)(2) and (4)
of this appendix) of less than $250,000

(b) Request involves a business-related tax $500
issue (for example, including home-office
expenses, residential rental property
issues) from a person with gross income (as
determined under paragraphs (B)(3) and (4)
of this appendix) of less than $1 million

(5) User fee for substantially identical
letter ruling requests or identical accounting
method changes. If the requirements of section
15.07 of Rev. Proc. 2002-1 (this revenue
procedure) are satisfied, the user fee for the
following situations is as follows:

(a) Substantially identical letter rulings $200
requested

Situations in which a taxpayer requests
substantially identical letter rulings for
multiple entities with a common member or
sponsor, or for multiple members of a
common entity, for each additional letter
ruling request after the $6,000 fee or $500
reduced fee, as applicable, has been paid
for the first letter ruling request

NOTE: Each entity or member that is
entitled to the user fee under paragraph
(A)(5)(a) of this appendix, that receives
relief under section 301.9100-3 (for
example, an extension of time to file an
election) will be charged a separate user
fee for the letter ruling request on the
underlying issue.

(b) Identical accounting method change $45
requested on a single Form 3115

Situations in which a parent corporation
requests the identical accounting method
change on a single Form 3115 on behalf of
more than one member of a consolidated
group, for each additional member of the
group seeking the identical accounting
method change on the same Form 3115 after
the $1,200 fee or $500 reduced fee, as
applicable, has been paid for the first
member of the group

(c) Extension of time requested to file $50
Form 3115 for an identical accounting
method change

Situations in which a parent corporation
requests an extension of time to file Form
3115 under section 301.9100-3 for the
identical accounting method change on
behalf of more than one member of a
consolidated group, for each additional
member of the group seeking the identical
accounting method change on the same
application after the $1,200 fee or $500
reduced fee, as applicable, has been paid
for the first member of the group

NOTE: A parent corporation and each member
of a consolidated group that is entitled to
the user fee under paragraph (A)(5)(b) of
this appendix, that receives an extension
of time to file Form 3115 under section
301.9100-3 will be charged a separate user
fee for the accounting method application.


(B) PROCEDURAL MATTERS

(1) REQUIRED CERTIFICATION. A person seeking a reduced user fee under
paragraph (A)(4) of this appendix must provide the following certification
in order to obtain the reduced user fee:

(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a)
of this appendix, the person must certify in the request that his, her, or
its gross income, as defined under paragraphs (B)(2) and (4) of this
appendix, is less than $250,000 for the last full (12 months) taxable year
ending before the date the request is filed.

(b) If a person is seeking a reduced user fee under paragraph (A)(4)(b)
of this appendix, the person must certify in the request that his, her, or
its gross income, as defined under paragraphs (B)(3) and (4) of this
appendix, is less than $1 million for the last full (12 months) taxable
year ending before the date the request is filed.


(2) GROSS INCOME FOR A REQUEST INVOLVING A PERSONAL TAX ISSUE. For
purposes of the reduced user fee provided in paragraph (A)(4)(a) of this
appendix of--

(a) U.S. CITIZENS AND RESIDENT ALIEN INDIVIDUALS, DOMESTIC TRUSTS, AND
DOMESTIC ESTATES, "gross income" is equal to "total income" as reported on
their last federal income tax return (as amended) filed for a full (12
months) taxable year ending before the date the request is filed, plus any
interest income not subject to tax under section 103 (interest on state
and local bonds) for that period. "Total income" is a line item on federal
tax returns. For example, if the 2001 Form 1040, U.S. Individual Income
Tax Return, is the most recent 12-month taxable year return filed by a
U.S. citizen, "total income" on the Form 1040 is the amount entered on
line 22.

In the case of a request for a letter ruling or closing agreement from
a domestic estate or trust that, at the time the request is filed, has not
filed a federal income tax return for a full taxable year, the reduced
user fee in paragraph (A)(4)(a) of this appendix will apply if the
decedent's or (in the case of an individual grantor) the grantor's total
income as reported on the last federal income tax return filed for a full
taxable year ending before the date of death or the date of the transfer,
taking into account any additions required to be made to total income
described in this paragraph (B)(2)(a), is less than $250,000. In this
case, the executor or administrator of the decedent's estate or the
grantor must provide the certification required under paragraph (B)(1) of
this appendix.

(b) NONRESIDENT ALIEN INDIVIDUALS, FOREIGN TRUSTS, AND FOREIGN ESTATES,
"gross income" is equal to "total effectively connected income" as
reported on their last federal income tax return (as amended) filed for a
full (12 months) taxable year ending before the date the request is filed,
plus any income for the period from United States or foreign sources that
is not taxable by the United States, whether by reason of section 103, an
income tax treaty, section 871(h) (regarding portfolio interest), or
otherwise, plus the total amount of any fixed or determinable annual or
periodical income from United States sources, the United States tax
liability for which is satisfied by withholding at the source. "Total
effectively connected income" is a line item on federal tax returns. For
example, if the 2000 Form 1040NR, U.S. Nonresident Alien Income Tax
Return, is the most recent 12-month taxable year return filed by a
nonresident alien individual, "total effectively connected income" on the
Form 1040NR is the amount entered on line 23.

In the case of a request for a letter ruling or closing agreement from
a foreign estate or trust that, at the time the request is filed, has not
filed a federal income tax return for a full taxable year, the reduced
user fee in paragraph (A)(4)(a) of this appendix will apply if the
decedent's or (in the case of an individual grantor) the grantor's total
income or total effectively connected income, as relevant, as reported on
the last federal income tax return filed for a full taxable year ending
before the date of death or the date of the transfer, taking into account
any additions required to be made to total income or total effectively
connected income described respectively in paragraph (B)(2)(a) of this
appendix or in this paragraph (B)(2)(b), is less than $250,000. In this
case, the executor or administrator of the decedent's estate or the
grantor must provide the certification required under paragraph (B)(1) of
this appendix.


(3) GROSS INCOME FOR A REQUEST INVOLVING A BUSINESS-RELATED TAX ISSUE.
For purposes of the reduced user fee provided in paragraph (A)(4)(b) of
this appendix of--

(a) U.S. CITIZENS AND RESIDENT ALIEN INDIVIDUALS, DOMESTIC TRUSTS, AND
DOMESTIC ESTATES, "gross income" is equal to gross income as defined under
paragraph (B)(2)(a) of this appendix, plus "cost of goods sold" as
reported on the same federal income tax return.

(b) NONRESIDENT ALIEN INDIVIDUALS, FOREIGN TRUSTS, AND FOREIGN ESTATES,
"gross income" is equal to gross income as defined under paragraph
(B)(2)(b) of this appendix, plus "cost of goods sold" as reported on the
same federal income tax return.

(c) DOMESTIC PARTNERSHIPS AND CORPORATIONS, "gross income" is equal to
"total income" as reported on their last federal income tax return (as
amended) filed for a full (12 months) taxable year ending before the date
the request is filed, plus "cost of goods sold" as reported on the same
federal income tax return, plus any interest income not subject to tax
under section 103 (interest on state and local bonds) for that period. If
a domestic partnership or corporation is not subject to tax, "total
income" and "cost of goods sold" are the amounts that the domestic
partnership or corporation would have reported on the federal income tax
return if the domestic partnership or corporation were subject to tax.

"Cost of goods sold" and "total income" are line items on federal tax
returns. For example, if the 2000 Form 1065, U.S. Partnership Return of
Income, is the most recent 12-month taxable year return filed by a
domestic partnership, "cost of goods sold" and "total income" on the Form
1065 are the amounts entered on lines 2 and 8, respectively, and if the
2000 Form 1120, U.S. Corporation Income Tax Return, is the most recent
12-month taxable year return filed by a domestic corporation, "cost of
goods sold" and "total income" on the Form 1120 are the amounts entered on
lines 2 and 11, respectively.

If, at the time the request is filed, a domestic partnership or
corporation subject to tax has not filed a federal income tax return for a
full taxable year, the reduced user fee in paragraph (A)(4)(b) of this
appendix will apply if, in the aggregate, the partners' or the
shareholders' gross income (as defined in paragraph (B)(3)(a), (b), (c),
or (d) of this appendix, as applicable) is less than $1 million for the
last full taxable year ending before the date the request is filed. In
this case, the partners or the shareholders must provide the certification
required under paragraph (B)(1) of this appendix.

(d) ORGANIZATIONS EXEMPT FROM INCOME TAX UNDER "SUBCHAPTER F-EXEMPT
ORGANIZATIONS" OF THE CODE, "gross income" is equal to the amount of gross
receipts for the last full (12 months) taxable year ending before the date
the request for a letter ruling or closing agreement is filed.


(4) SPECIAL RULES FOR DETERMINING GROSS INCOME. For purposes of
paragraphs (B)(2) and (3) of this appendix, the following rules apply for
determining gross income.

(a) GROSS INCOME OF INDIVIDUALS, TRUSTS, AND ESTATES.

(1) In the case of a request from a married individual, the gross
incomes (as defined in paragraph (B)(2) or (3) of this appendix, as
applicable) of the applicant and the applicant's spouse must be combined.
This rule does not apply to an individual who is legally separated from
his or her spouse if the spouses do not file a joint income tax return
with each other; and

(2) If there are two or more applicants filing the request, the gross
incomes (as defined in paragraph (B)(2) or (3) of this appendix, as
applicable) of the applicants must be combined.


(b) GROSS INCOME OF DOMESTIC PARTNERSHIPS AND CORPORATIONS.

(1) In the case of a request from a domestic corporation, the gross
income (as defined in paragraph (B)(3) of this appendix) of (i) all
members of the applicant's controlled group (as defined in section
1563(a)), and (ii) any related taxpayer that is involved in the
transaction on which the letter ruling or closing agreement is requested,
must be combined; and

(2) In the case of a request from a domestic partnership, the gross
income (as defined in paragraph (B)(3) of this appendix) of (i) the
partnership, and (ii) any partner who owns, directly or indirectly, 50
percent or more of the capital interest or profits interest in the
partnership, must be combined.


(c) GROSS INCOME OF EXEMPT ORGANIZATIONS. If there are two or more
organizations exempt from income tax under Subchapter F filing the
request, the gross receipts (as defined in paragraph (B)(3)(d) of this
appendix) of the applicants must be combined.



APPENDIX B -- SAMPLE FORMAT FOR A LETTER RULING REQUEST

INSTRUCTIONS

To assist you in preparing a letter ruling request, the Service is
providing this sample format. You are not required to use this sample
format. If your request is not identical or similar to the sample format,
the different format will not defer consideration of your request.

(Insert the date of request)

Internal Revenue Service
Insert either: Associate Chief Counsel
(Insert one of the following:
Corporate, Financial Institutions &
Products, Income Tax & Accounting,
International, Passthroughs &
Special Industries, or Procedure
and Administration), or Division
Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities)
Attn: CC:PA:T
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044

Dear Sir or Madam:

(Insert the name of the taxpayer) requests a ruling on the proper
treatment of (insert the subject matter of the letter ruling request)
under section (insert the number) of the Internal Revenue Code.

[If the taxpayer is requesting expedited handling, a statement to that
effect must be attached to, or contained in, the letter ruling request.
The statement must explain the need for expedited handling. See section
8.02(4) of Rev. Proc. 2002-1, 2002-1 I.R.B. 1. Hereafter, all references
are to Rev. Proc. 2002-1 unless otherwise noted.]


A. STATEMENT OF FACTS

1. Taxpayer Information

[Provide the statements required by sections 8.01(1)(a) and (b).]

2. Description of Taxpayer's Business Operations

[Provide the statement required by section 8.01(1)(c).]

3. Facts Relating to Transaction

[The ruling request must contain a complete statement of the facts
relating to the transaction that is the subject of the letter ruling
request. This statement must include a detailed description of the
transaction, including material facts in any accompanying documents, and
the business reasons for the transaction. See sections 8.01(1)(d),
8.01(1)(e), and 8.01(2).]


B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling
requested by the taxpayer. It is preferred that the language of the
requested ruling be exactly the same that the taxpayer wishes to receive.]


C. STATEMENT OF LAW

[The ruling request must contain a statement of the law in support of the
taxpayer's views or conclusion and identify any pending legislation that
may affect the proposed transaction. The taxpayer also is encouraged to
identify and discuss any authorities believed to be contrary to the
position advanced in the ruling request. See sections 8.01(6), 8.01(8),
8.01(9), and 8.01(10).]

D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis
of the law. The taxpayer also is encouraged to identify and discuss any
authorities believed to be contrary to the position advanced in the ruling
request. See sections 8.01(3), 8.01(6), 8.01(8), 8.01(9), and 8.01(10).]


E. CONCLUSION

[The ruling request should contain a statement of the taxpayer's
conclusion on the ruling requested.]


F. PROCEDURAL MATTERS

1. Revenue Procedure 2002-1 Statements

a. [Provide the statement required by section 8.01(4) regarding whether
the same issue in the letter ruling request is in an earlier return of the
taxpayer or in a return for any year of a related taxpayer.]

b. [Provide the statement required by section 8.01(5)(a) regarding
whether the Service previously ruled on the same or similar issue for the
taxpayer, a related taxpayer, or a predecessor.]

c. [Provide the statement required by section 8.01(5)(b) regarding
whether the taxpayer, a related taxpayer, a predecessor, or any
representatives previously submitted a request (including an application
for change in accounting method) involving the same or similar issue but
withdrew the request before a letter ruling or determination letter was
issued.]

d. [Provide the statement required by section 8.01(5)(c) regarding
whether the taxpayer, a related taxpayer, or a predecessor previously
submitted a request (including an application for change in accounting
method) involving the same or a similar issue that is currently pending
with the Service.]

e. [Provide the statement required by section 8.01(5)(d) regarding
whether, at the same time as this request, the taxpayer or a related
taxpayer is presently submitting another request (including an application
for change in accounting method) involving the same or similar issue to
the Service.]

f. [If the letter ruling request involves the interpretation of a
substantive provision of an income or estate tax treaty, provide the
statement required by section 8.01(6) regarding whether the tax authority
of the treaty jurisdiction has issued a ruling on the same or similar
issue for the taxpayer, a related taxpayer, or a predecessor; whether the
same or similar issue is being examined, or has been settled, by the tax
authority of the treaty jurisdiction or is otherwise the subject of a
closing agreement in that jurisdiction; and whether the same or similar
issue is being considered by the competent authority of the treaty
jurisdiction.]

g. [Provide the statement required by section 8.01(8) regarding whether
the law in connection with the letter ruling request is uncertain and
whether the issue is adequately addressed by relevant authorities.]

h. [If the taxpayer determines that there are no contrary authorities,
a statement to that effect would be helpful. See section 8.01(9).]

i. [If the taxpayer wants to have a conference on the issues involved
in the letter ruling request, the ruling request should contain a
statement to that effect. See section 8.02(7).]

j. [If the taxpayer is requesting a copy of any document related to the
letter ruling request to be sent by facsimile (fax) transmission, the
ruling request should contain a statement to that effect. See section
8.02(5).]

k. [If the taxpayer is requesting separate letter rulings on multiple
issues, the letter ruling request should contain a statement to that
effect. See section 8.02(1).]

l. [If the taxpayer is seeking to obtain the user fee provided in
paragraph (A)(5)(a) of Appendix A for substantially identical letter
rulings, the letter ruling request must contain the statements required by
section 15.07.]


2. Administrative

a. [The ruling request should state: "The deletions statement and
checklist required by Rev. Proc. 2002-1 are enclosed." See sections
8.01(11) and 8.01(18).]

b. [The ruling request should state: "The required user fee of $(Insert
the amount of the fee) is enclosed." Please note that the check or money
order must be in U.S. dollars and made payable to the Internal Revenue
Service. See section 15 and Appendix A.]

c. [If the taxpayer's authorized representative is to sign the letter
ruling request or is to appear before the Service in connection with the
request, the ruling request should state: "A Power of Attorney is
enclosed." See sections 8.01(13), 8.01(14), and 8.02(2).]

Very truly yours,

(Insert the name of the taxpayer
or the taxpayer's authorized
representative)

By: ____ ____
Signature Date
Typed or printed name of person
signing request

DECLARATION: [See section 8.01(15).]

Under penalties of perjury, I declare that I have examined this request,
including accompanying documents, and, to the best of my knowledge and
belief, the request contains all the relevant facts relating to the
request, and such facts are true, correct, and complete.

(Insert the name of the taxpayer)

By: ____ ____ ____
Signature Title Date

____
Typed or printed name of person
signing declaration

[If the taxpayer is a corporation that is a member of an affiliated group
filing consolidated returns, the above declaration must also be signed and
dated by an officer of the common parent of the group. See section
8.01(15).]


APPENDIX C -- CHECKLIST

IS YOUR LETTER RULING REQUEST COMPLETE?

INSTRUCTIONS

The Service will be able to respond more quickly to your letter ruling
request if it is carefully prepared and complete. To ensure that your
request is in order, use this checklist. Complete the five items of
information requested before the checklist. Answer each question by
circling "Yes," "No," or "N/A." When a question contains a place for a
page number, insert the page number (or numbers) of the request that gives
the information called for by a yes answer to a question. Sign and date
the checklist (as taxpayer or authorized representative) and place it on
top of your request.

If you are an authorized representative submitting a request for a
taxpayer, you must include a completed checklist with the request, or the
request will either be returned to you or substantive consideration of it
will be deferred until a completed checklist is submitted. If you are a
taxpayer preparing your own request without professional assistance, an
incomplete checklist will not either cause the return of your request or
defer substantive consideration of your request. However, you should still
complete as much of the checklist as possible and submit it with your
request.

TAXPAYER'S NAME ____

TAXPAYER'S I.D. NO. ____

ATTORNEY/P.O.A. ____

PRIMARY CODE SECTION ____

CIRCLE ONE ITEM
---------- ----
Yes No 1. Does your request involve an issue under the
jurisdiction of the Associate Chief Counsel (Corporate),
the Associate Chief Counsel (Financial Institutions &
Products), the Associate Chief Counsel (Income Tax &
Accounting), the Associate Chief Counsel (International),
the Associate Chief Counsel (Passthroughs & Special
Industries), the Associate Chief Counsel (Procedure and
Administration), or the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities)? See section
3 of Rev. Proc. 2002-1, 2002-1 I.R.B. 1. For issues under
the jurisdiction of other offices, See section 4 of Rev.
Proc. 2002-1. (Hereafter, all references are to Rev.
Proc. 2002-1 unless otherwise noted.)

Yes No 2. Have you read Rev. Proc. 2002-3, 2002-1 I.R.B. 117,
and Rev. Proc. 2002-7, 2002-1 I.R.B. 249, to see if part
or all of the request involves a matter on which letter
rulings are not issued or are ordinarily not issued?

Yes No N/A 3. If your request involves a matter on which letter
rulings are not ordinarily issued, have you given
compelling reasons to justify the issuance of a letter
ruling? Before preparing your request, you may want to
call the branch in the Office of Associate Chief Counsel
(Corporate), the Office of Associate Chief Counsel
(Financial Institutions & Products), the Office of
Associate Chief Counsel (Income Tax & Accounting), the
Office of Associate Chief Counsel (International), the
Office of Associate Chief Counsel (Passthroughs & Special
Industries), the Office of Associate Chief Counsel
(Procedure and Administration), or the Office of Division
Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities) responsible for substantive
interpretations of the principal Internal Revenue Code
section on which you are seeking a letter ruling to
discuss the likelihood of an exception. For matters under
the jurisdiction of--

(a) the Office of Associate Chief Counsel (Corporate),
the Office of Associate Chief Counsel (Financial
Institutions & Products), the Office of Associate Chief
Counsel (Income Tax & Accounting), the Office of
Associate Chief Counsel (Passthroughs & Special
Industries), or the Office of Division Counsel/Associate
Chief Counsel (Tax Exempt and Government Entities), the
Office of the Associate Chief Counsel (Procedure and
Administration), the appropriate branch to call may be
obtained by calling (202) 622-7560 (not a toll-free call);

(b) the Office of the Associate Chief Counsel
(International), the appropriate branch to call may be
obtained by calling (202) 622-3800 (not a toll-free
call); or

Yes No N/A 4. If the request deals with a completed transaction,
Pages ____ have you filed the return for the year in which the
transaction was completed? See sections 5.01, 5.05, 5.06,
5.07, 5.08, and 5.09.

Yes No 5. Are you requesting a letter ruling on a hypothetical
situation or question? See section 7.02.

Yes No 6. Are you requesting a letter ruling on alternative
plans of a proposed transaction? See section 7.02.

Yes No 7. Are you requesting the letter ruling for only part of
an integrated transaction? See sections 7.03 and 8.01(1).

Yes No 8. Are you requesting the letter ruling for a business,
trade, industrial association, or similar group
concerning the application of tax law to its members? See
section 5.12.

Yes No 9. Are you requesting the letter ruling for a foreign
government or its political subdivision? See section
5.13.

Yes No 10. Have you included a complete statement of all the
Pages ____ facts relevant to the transaction? See section 8.01(1).

Yes No N/A 11. Have you submitted with the request true copies of
all wills, deeds, and other documents relevant to the
transaction, and labeled and attached them in
alphabetical sequence? See section 8.01(2).

Yes No N/A 12. Have you submitted with the request a copy of all
applicable foreign laws, and certified English
translations of documents that are in a language other
than English or of foreign laws in cases where English is
not the official language of the foreign country
involved? See section 8.01(2).

Yes No 13. Have you included, rather than merely incorporated by
Pages ____ reference, all material facts from the documents in the
request? Are they accompanied by an analysis of their
bearing on the issues that specifies the document
provisions that apply? See section 8.01(3).

Yes No 14. Have you included the required statement regarding
Pages ____ whether the same issue in the letter ruling request is
in an earlier return of the taxpayer or in a return for
any year of a related taxpayer? See section 8.01(4).

Yes No 15. Have you included the required statement regarding
Pages ____ whether the Service previously ruled on the same or
similar issue for the taxpayer, a related taxpayer, or a
predecessor? See section 8.01(5)(a).

Yes No 16. Have you included the required statement regarding
Pages ____ whether the taxpayer, a related taxpayer, a predecessor,
or any representatives previously submitted a request
(including an application for change in accounting
method) involving the same or similar issue but withdrew
the request before the letter ruling or determination
letter was issued? See section 8.01(5)(b).

Yes No 17. Have you included the required statement regarding
Pages ____ whether the taxpayer, a related taxpayer, or a
predecessor previously submitted a request (including an
application for change in accounting method) involving
the same or similar issue that is currently pending with
the Service? See section 8.01(5)(c).

Yes No 18. Have you included the required statement regarding
Pages ____ whether, at the same time as this request, the taxpayer
or a related taxpayer is presently submitting another
request (including an application for change in
accounting method) involving the same or similar issue to
the Service? See section 8.01(5)(d).

Yes No N/A 19. If your request involves the interpretation of a
Pages ____ substantive provision of an income or estate tax treaty,
have you included the required statement regarding
whether the tax authority of the treaty jurisdiction has
issued a ruling on the same or similar issue for the
taxpayer, a related taxpayer, or a predecessor; whether
the same or similar issue is being examined, or has been
settled, by the tax authority of the treaty jurisdiction
or is otherwise the subject of a closing agreement in
that jurisdiction; and whether the same or similar issue
is being considered by the competent authority of the
treaty jurisdiction? See section 8.01(6).

Yes No N/A 20. If your request is for recognition of Indian tribal
Pages ____ government status or status as a political subdivision of
an Indian tribal government, does your request contain a
letter from the Bureau of Indian Affairs regarding the
tribe's status? See section 8.01(7), which states that
taxpayers are encouraged to submit this letter with the
request and provides the address for the Bureau of Indian
Affairs.

Yes No 21. Have you included the required statement of relevant
Pages ____ authorities in support of your views? See section
8.01(8).

Yes No 22. Have you included the required statement regarding
Pages ____ whether the law in connection with the request is
uncertain and whether the issue is adequately addressed
by relevant authorities? See section 8.01(8).

Yes No 23. Does your request discuss the implications of any
Pages ____ legislation, tax treaties, court decisions, regulations,
notices, revenue rulings, or revenue procedures that you
determined to be contrary to the position advanced? See
section 8.01(9), which states that taxpayers are
encouraged to inform the Service of such authorities.

Yes No N/A 24. If you determined that there are no contrary
Pages ____ authorities, have you included a statement to this effect
in your request? See section 8.01(9).

Yes No N/A 25. Have you included in your request a statement
Pages ____ identifying any pending legislation that may affect the
proposed transaction? See section 8.01(10).

Yes No 26. Is the request accompanied by the deletions statement
required by section 6110? See section 8.01(11).

Yes No 27. Have you (or your authorized representative) signed
Pages ____ and dated the request? See section 8.01(12).

Yes No N/A 28. If the request is signed by your representative or if
your representative will appear before the Service in
connection with the request, is the request accompanied
by a properly prepared and signed power of attorney with
the signatory's name typed or printed? See section
8.01(14).

Yes No 29. Have you included, signed, and dated the penalties of
Pages ____ perjury statement in the format required by section
8.01(15)?

Yes No N/A 30. Are you submitting your request in duplicate if
necessary? See section 8.01(16).

Yes No N/A 31. If you are requesting separate letter rulings on
Pages ____ different issues involving one factual situation, have
you included a statement to that effect in each request?
See section 8.02(1).

Yes No N/A 32. If you want copies of the letter ruling sent to more
than one representative, does the power of attorney
contain a statement to that effect? See section
8.02(2)(a).

Yes No N/A 33. If you want the original of the letter ruling to be
sent to a representative, does the power of attorney
contain a statement to that effect? See section
8.02(2)(b).

Yes No N/A 34. If you do not want a copy of the letter ruling to be
sent to any representative, does the power of attorney
contain a statement to that effect? See section
8.02(2)(c).

Yes No N/A 35. If you are making a two-part letter ruling request,
have you included a summary statement of the facts you
believe to be controlling? See section 8.02(3).

Yes No N/A 36. If you want your letter ruling request to be
Pages ____ processed ahead of the regular order or by a specific
date, have you requested expedited handling in the manner
required by section 8.02(4) and stated a compelling need
for such action in the request?

Yes No N/A 37. If you are requesting a copy of any document related
Pages ____ to the letter ruling request to be sent by facsimile
(fax) transmission, have you included a statement to that
effect? See section 8.02(5).

Yes No N/A 38. If you want to have a conference on the issues
Pages ____ involved in the request, have you included a request for
conference in the letter ruling request? See section
8.02(7).

Ye s No 39. Have you included the correct user fee with the
request and is your check or money order in U.S. dollars
and payable to the Internal Revenue Service? See section
15 and Appendix A to determine the correct amount.

Yes No N/A 40. If your request involves a personal tax issue and you
Pages ____ qualify for the reduced user fee when gross income is
less than $250,000, have you included the required
certification? See paragraphs (A)(4)(a) and (B)(1) of
Appendix A.

Yes No N/A 41. If your request involves a business-related tax issue
Pages ____ and you qualify for the reduced user fee when gross
income is less than $1 million, have you included the
required certification? See paragraphs (A)(4)(b) and
(B)(1) of Appendix A.

Yes No N/A 42. If you qualify for the user fee for substantially
Pages ____ identical letter rulings, have you included the
required information? See section 15.07(2) and paragraph
(A)(5)(a) of Appendix A.

Yes No N/A 43. If you qualify for the user fee for a section
Pages ____ 301.9100 request to extend the time for filing an
identical accounting method change on a single Form 3115,
have you included the required information? See section
15.07(3) and paragraph (A)(5)(c) of Appendix A.

Yes No N/A 44. If your request is covered by any of the checklists,
guideline revenue procedures, notices, safe harbor
revenue procedures, or other special requirements listed
in section 9, have you complied with all of the
requirements of the applicable revenue procedure or
notice?

Rev. Proc. List other applicable revenue procedures or notices,
____ including checklists, used or relied upon in the
____ preparation of this letter ruling request (Cumulative
____ Bulletin or Internal Revenue Bulletin citation not
required).

Yes No N/A 45. If you are requesting relief under section 7805(b)
Pages ____ (regarding retroactive effect), have you complied with
all of the requirements in section 12.11?

Yes No 46. Have you addressed your request to the attention of
the Associate Chief Counsel (Corporate), the Associate
Chief Counsel (Financial Institutions & Products), the
Associate Chief Counsel (Income Tax & Accounting), the
Associate Chief Counsel (International), the Associate
Chief Counsel (Passthroughs & Special Industries), the
Associate Chief Counsel (Procedure and Administration),
or the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities), as appropriate? The
mailing address is:

Internal Revenue Service
Attn: CC:PA:T
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044

However, if a private delivery service is used, the
address is:

Internal Revenue Service
Attn: CC:PA:T, Room 6561
1111 Constitution Avenue, N.W.
Washington, D.C. 20224

The package should be marked: RULING REQUEST SUBMISSION.
Improperly addressed requests may be delayed (sometimes
for over a week) in reaching CC:PA:T for initial
processing.


____ ____ ____
Signature Title or Authority Date

____
Typed or printed name of
person signing checklist


APPENDIX D -- LIST OF SMALL BUSINESS/SELF-EMPLOYED DIVISION (SB/SE)
COMPLIANCE AREA DIRECTORS FOR REQUESTING DETERMINATION LETTERS

Requests for determination letters under Rev. Proc. 2002-1 from
taxpayers under the jurisdiction of SB/SE should be sent to the
appropriate address listed below. Taxpayers under the jurisdiction of W&I
should also send their requests for determination letters to the
appropriate address listed below.

-- Area 1, Area Director, Boston
P.O. Box 9112, Stop 11300, Boston, MA 02203
SB/SE and W&I taxpayers located in Maine, New Hampshire, Connecticut,
Rhode Island, Massachusetts, Vermont

-- Area 2, Area Director, New York City
290 Broadway, New York, NY 10007
SB/SE and W&I taxpayers located in New York

-- Area 3, Area Director, Philadelphia
600 Arch Street, Room 7400, Philadelphia, PA 19106
SB/SE and W&I taxpayers located in Pennsylvania, New Jersey

-- Area 4, Area Director, Baltimore
31 Hopkins Plaza, Baltimore, MD 21202
SB/SE and W&I taxpayers located in Delaware, Maryland, District of
Columbia, Virginia, North Carolina, South Carolina

-- Area 5, Area Director, Jacksonville
400 Bay Street, Jacksonville, FL 32202
SB/SE and W&I taxpayers located in Florida

-- Area 6, Area Director, Detroit
477 Michigan Avenue, Detroit, MI 48180
SB/SE and W&I taxpayers located in Michigan, Kentucky, Ohio, West
Virginia

-- Area 7, Area Director, Chicago
230 S. Dearborne Street, 100CHI, Chicago, IL 60604
SB/SE and W&I taxpayers located in Wisconsin, Illinois, Indiana

-- Area 8, Area Director, Nashville
801 Broadway, MDP1, Nashville, TN 37203
SB/SE and W&I taxpayers located in Georgia, Tennessee, Alabama,
Mississippi, Louisiana, Arkansas

-- Area 9, Area Director, St. Paul
316 North Robert Street, Stop 1000, St. Paul, MN 55101
SB/SE and W&I taxpayers located in North Dakota, South Dakota,
Missouri, Nebraska, Minnesota, Iowa, Kansas

-- Area 10, Area Director, Dallas
4050 Alpha Road, 1000 MSRO, Dallas, TX 75244
SB/SE and W&I taxpayers located in Texas, Oklahoma

-- Area 11, Area Director, Denver
600 17th Street, Denver, CO 80202-2490
SB/SE and W&I taxpayers located in Colorado, Montana, Wyoming, New
Mexico, Arizona, Nevada, Utah

-- Area 12, Area Director, Seattle
915 Second Avenue, Seattle, WA 98174
SB/SE and W&I taxpayers located in Washington, Oregon, Alaska, Hawaii,
Idaho

-- Area 13, Area Director, Oakland
1301 Clay Street, Suite 1600-S, Oakland, CA 94612
SB/SE and W&I taxpayers located in Northern and Central California

-- Area 14, Area Director, Laguna Niguel
24000 Avila Road, Laguna Niguel, CA 92677
SB/SE and W&I taxpayers located in Southern California except for
taxpayers located in Oakland, Los Angeles, El Segundo, El Monte, and
Glendale which are Area 16 taxpayers

-- Area 15, Area Director, International
950 L'Enfant Plaza, SW, Washington, DC 20024
International SB/SE and W&I taxpayers

-- Area 16, Area Director, Los Angeles
300 N. Los Angeles Street, Los Angeles, CA 90012
SB/SE and W&I taxpayers located in Oakland, Los Angeles, El Segundo,
El Monte, Glendale

<<END RULING>>



 

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