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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>>
TO
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