IRS Revenue Procedure
2002-4

Code Sec. NONE



<<FULL TEXT>>

26 CFR 601.201: Rulings and determination letters.


REV. PROC. 2002-4

TABLE OF CONTENTS

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

SECTION 2. WHAT CHANGES HAVE BEEN MADE TO REV. PROC. 2001-4?

SECTION 3. IN WHAT FORM IS GUIDANCE PROVIDED BY THE COMMISSIONER, TAX
EXEMPT AND GOVERNMENT ENTITIES DIVISION?
.01 In general
.02 Letter ruling
.03 Closing agreement
.04 Determination letter
.05 Opinion letter
.06 Information letter
.07 Revenue ruling
.08 Oral guidance
(1) No oral rulings, and no written rulings in response to oral
requests
(2) Discussion possible on substantive issues
.09 Nonbank trustee requests

SECTION 4. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER
THIS PROCEDURE?

SECTION 5. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER
DIFFERENT PROCEDURES?
.01 Determination letters
.02 Master and prototype plans
.03 Closing agreement program for defined contribution plans that
purchased GICs or GACs
.04 Employee Plans Compliance Resolution System
.05 Chief Counsel
.06 Alcohol, tobacco, and firearms taxes

SECTION 6. UNDER WHAT CIRCUMSTANCES DOES TE/GE ISSUE LETTER RULINGS?
.01 In exempt organizations matters
.02 In employee plans matters
.03 In qualifications matters
.04 Request for extension of time for making an election or for other
relief under section 301.9100-1 of the Procedure and
Administration Regulations
.05 Issuance of a letter ruling before the issuance of a regulation or
other published guidance
.06 Issues in prior return
.07 Generally not to business associations or groups
.08 Generally not to foreign governments
.09 Generally not on federal tax consequences of proposed legislation


SECTION 7. UNDER WHAT CIRCUMSTANCES DOES TE/GE ISSUE DETERMINATION
LETTERS?
.01 Circumstances under which determination letters are issued
.02 In general
.03 In employee plans matters
.04 In exempt organizations matters
.05 Circumstances under which determination letters are not issued
.06 Requests involving returns already filed
.07 Attach a copy of determination letter to taxpayer's return
.08 Review of determination letters

SECTION 8. 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 partial terminations of employee plans
.05 Law requires letter ruling
.06 Issues under consideration by PBGC or DOL
.07 Cafeteria plans
.08 Determination letters
.09 Domicile in a foreign jurisdiction
.10 Employee Stock Ownership Plans

SECTION 9. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?
.01 In general
.02 Certain information required in all requests
(1) Complete statement of facts and other information
(2) Copies of all contracts, wills, deeds, agreements,
instruments, plan documents, and other documents
(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 of supporting authorities
(7) Statement of contrary authorities
(8) Statement identifying pending legislation
(9) Statement identifying information to be deleted from copy of
letter ruling or determination letter for public inspection
(10) Signature by taxpayer or authorized representative
(11) Authorized representatives
(12) Power of attorney and declaration of representative
(13) Penalties of perjury statement
(14) Applicable user fee
(15) Number of copies of request to be submitted
(16) Sample format for a letter ruling request
(17) Checklist for letter ruling requests
.03 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 expedited handling
(4) To receive a letter ruling or submit a request for a letter
ruling by facsimile transmission (fax)
(5) To request a conference
.04 Address to send the request
(1) Requests for letter rulings
(2) Requests for information letters
(3) Requests for determination letters
.05 Pending letter ruling requests
.06 When to attach letter ruling to return
.07 How to check on status of request
.08 Request may be withdrawn or EP or EO Technical may decline to
issue letter ruling
.09 Compliance with Treasury Department Circular No. 230

SECTION 10. WHAT SPECIFIC, ADDITIONAL PROCEDURES APPLY TO CERTAIN
REQUESTS?
.01 In general
.02 Exempt Organizations
.03 Employee Plans

SECTION 11. HOW DOES TE/GE HANDLE LETTER RULING REQUESTS?
.01 In general
.02 Is not bound by informal opinion expressed
.03 Tells taxpayer if request lacks essential information during
initial contact
.04 Requires prompt submission of additional information requested
after initial contact
.05 Near the completion of the ruling process, advises taxpayer of
conclusions and, if the Service will rule adversely, offers the
taxpayer the opportunity to withdraw the letter ruling request
.06 May request draft of proposed letter ruling near the completion of
the ruling process

SECTION 12. 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 13. 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 TE/GE 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 May be retroactively revoked or modified when transaction is
completed without reliance on the letter ruling
.09 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 14. 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)
(3) Taxpayer steps in exhausting administrative remedies

SECTION 15. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN
DETERMINATIONS AND TECHNICAL?
.01 Requests for determination letters
.02 No-rule areas
.03 Requests for letter rulings

SECTION 16. WHAT ARE THE GENERAL PROCEDURES APPLICABLE TO INFORMATION
LETTERS ISSUED BY TE/GE?
.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 IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER
DOCUMENTS?

SECTION 18. EFFECTIVE DATE

SECTION 19. PAPERWORK REDUCTION ACT

DRAFTING INFORMATION

INDEX

APPENDIX A -- SAMPLE FORMAT FOR A LETTER RULING REQUEST

APPENDIX B -- CHECKLIST FOR A LETTER RULING REQUEST


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

This revenue procedure explains how the Internal Revenue Service gives
guidance to taxpayers on issues under the jurisdiction of the
Commissioner, Tax Exempt and Government Entities Division. 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 A.


SECTION 2. WHAT CHANGES HAVE BEEN MADE TO REV. PROC. 2001-4?

.01 This revenue procedure is a general update of Rev. Proc. 2001-4,
2001-1 I.R.B. 121, which contains the Service's general procedures for
employee plans and exempt organizations letter ruling requests. Most of
the changes to Rev. Proc. 2002-4 involve minor revisions, such as updating
citations to other revenue procedures.

.02 Section 6.02 is expanded to include section 4980F(c)(4) of the Code
as added by section 659 of the Economic Growth and Tax Relief
Reconciliation Act of 2001.

.03 Section 9.04(3) is revised to reflect the current hours of
operation of the Courier's desk.

.04 The Exempt Organizations user fees described in section 9.04(4)
have been moved and are consolidated in Rev. Proc. 2002-8, page 252, this
Bulletin.


SECTION 3. IN WHAT FORM IS GUIDANCE PROVIDED BY THE COMMISSIONER, TAX
EXEMPT AND GOVERNMENT ENTITIES DIVISION?

IN GENERAL

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


LETTER RULING

.02 A "letter ruling" is a written statement issued to a taxpayer by
the Service's Employee Plans Technical office or Exempt Organizations
Technical office that interprets and applies the tax laws or any nontax
laws applicable to employee benefit plans and exempt organizations to the
taxpayer's specific set of facts. Once issued, a letter ruling may be
revoked or modified for any number of reasons, as explained in section 13
of this revenue procedure, unless it is accompanied by a "closing
agreement."


CLOSING AGREEMENT

.03 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 prepared in an office under the responsibility of
the Commissioner, TE/GE, may be based on a ruling that has been signed by
the Commissioner, TE/GE, or the Commissioner, TE/GE's, delegate that says
that a closing agreement will be entered into on the basis of the ruling
letter.

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, taxpayers 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.

In appropriate cases, a closing agreement may be made with sponsors of
master and prototype plans and sponsors of regional prototype plans.

Rev. Proc. 2001-17, 2001-7 I.R.B. 589, establishes a voluntary closing
agreement program for employee plans matters. The revenue procedure
contains a formula for determining monetary sanctions and limits the
sanction for employers who voluntarily enter the program.


DETERMINATION LETTER

.04 A "determination letter" is a written statement issued by the
Manager, EP Determinations, or the Manager, EO Determinations that applies
the principles and precedents previously announced 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.

The Manager, EP Determinations, issues determination letters involving
sections 401, 403(a), 409, and 4975(e)(7) as provided in Rev. Proc.
2002-6, page 203, this Bulletin.


OPINION LETTER

.05 An "opinion letter" is a written statement issued by the Director,
Employee Plans Rulings and Agreements to a sponsor as to the acceptability
(for purposes of sections 401 and 501(a)) of the form of a master or
prototype plan and any related trust or custodial account under sections
401, 403(a), and 501(a), or as to the conformance of a prototype trust,
custodial account, or individual annuity with the requirements of section
408(a), (b), or (k), as applicable. See. Rev. Proc. 2000-20, 2000-1 C.B.
553 as modified by Rev. Proc. 2000-27, 2000-1 C.B. 1272. See also Rev.
Proc. 91-44, 1991-2 C.B. 733, and Rev. Proc. 92-38, 1992-1 C.B. 859.


INFORMATION LETTER

.06 An "information letter" is a statement issued either by the
Director, Employee Plans Rulings and Agreements or the Director, Exempt
Organizations Rulings and Agreements. 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. To the extent
resources permit, 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. Requests for information letters should be sent to
the address stated in section 9.04(2) of this revenue procedure. The
requirements of section 9.02 of this revenue procedure are not applicable
to information letters. An information letter is advisory only and has no
binding effect on the Service.


REVENUE RULING

.07 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 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

.08

(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, determination letters, and requests for recognition of exempt
status for a particular organization.

(2) DISCUSSION POSSIBLE ON SUBSTANTIVE ISSUES.

At the discretion of the Service, and as time permits, substantive
issues may also be discussed. However, such a discussion will not be
binding on the Service, and cannot be relied on 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.

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 TE/GE Customer Account Services 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.


NONBANK TRUSTEE REQUESTS

.09 In order to receive approval to act as a nonbank custodian of plans
qualified under section 401(a) or accounts described in section 403(b)(7),
and as a nonbank trustee or nonbank custodian for individual retirement
arrangements (IRAs) established under section 408(a), (b), or (h), or for
a Coverdell educational IRA established under section 530 or an Archer
medical savings account established under section 220, a written
application must be filed that demonstrates how the applicant complies
with the requirements of section 1.408-2(e)(2) through (5) of the Income
Tax Regulations.

The Service must have clear and convincing proof in its files that the
requirements of the regulations are met. If there is a requirement that
the applicant feels is not applicable, the application must provide clear
and convincing proof that such requirement is not germane to the manner in
which the applicant will administer any trust. See section 1.408-2(e)(6).

The completed application should be sent to:

Internal Revenue Service
Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 27063
McPherson Station
Washington, DC 20038


Section 6.01(4) of Rev. Proc. 2002-8, page 252, this Bulletin, imposes
a user's fee for anyone applying for approval to become a nonbank trustee
or custodian.


SECTION 4. ON WHAT ISSUES MAY TAXPAYERS REQUEST WRITTEN GUIDANCE UNDER
THIS PROCEDURE?

Taxpayers may request letter rulings, information letters and closing
agreements on issues within the jurisdiction of the Commissioner Tax
Exempt and Government Entities Division under this revenue procedure. The
Service 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 that relate to Code
sections under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division. See Rev. Proc. 2002-6, this Bulletin


SECTION 5. ON WHAT ISSUES MUST WRITTEN GUIDANCE BE REQUESTED UNDER
DIFFERENT PROCEDURES?

DETERMINATION LETTERS

.01 The procedures for obtaining determination letters involving
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) are
contained in Rev. Proc. 2002-6, this Bulletin.


MASTER AND PROTOTYPE PLANS

.02 The procedures for obtaining opinion letters for master and
prototype plans and any related trusts or custodial accounts under
sections 401(a), 403(a), and 501(a) are contained in Rev. Proc. 2000-20,
as modified by Rev. Proc. 2000-27. The procedures for obtaining opinion
letters for prototype trusts, custodial accounts or annuities under
section 408(a) or (b) are contained in Rev. Proc. 87-50, as modified by
Rev. Proc. 92-38. The procedures for obtaining opinion letters for
prototype trusts under section 408(k) are contained in Rev. Proc. 87-50,
as modified by Rev. Proc. 91-44 (as modified by Rev. Proc. 2002-8). The
procedures for obtaining opinion letters for SIMPLE IRAs under section
408(p) are contained in Rev. Proc. 97-29, 1997-1 C.B. 698. The procedures
for obtaining opinion letters for ROTH IRAs under section 408A are
contained in Rev. Proc. 98-59, 1998-2 C.B. 727.


CLOSING AGREEMENT PROGRAM FOR DEFINED CONTRIBUTION PLANS THAT PURCHASED
GICs OR GACs

.03 Rev. Proc. 95-52, 1995-1 C.B. 439, restates and extends for an
indefinite period the closing agreement program for defined contribution
plans that purchased guaranteed investment contracts (GICs) or group
annuity contracts (GACs) from troubled life insurance companies.


EMPLOYEE PLANS COMPLIANCE RESOLUTION SYSTEM

.04 The procedures for obtaining corrections of Qualification or
section 403(b) Failures under the Employee Plans Compliance Resolution
System (EPCRS) are contained in Rev. Proc. 2001-17.


CHIEF COUNSEL

.05 The procedures for obtaining rulings, closing agreements, and
information letters on issues within the jurisdiction of the Chief Counsel
are contained in Rev. Proc. 2002-1, page 1, this Bulletin, including tax
issues involving interpreting or applying the federal tax laws and income
tax treaties relating to international transactions.


ALCOHOL, TOBACCO, AND FIREARMS TAXES

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


SECTION 6. UNDER WHAT CIRCUMSTANCES DOES TE/GE ISSUE LETTER RULINGS?

IN EXEMPT ORGANIZATIONS MATTERS

.01 In exempt organizations matters, the Exempt Organizations Technical
Office issues letter rulings on proposed transactions and on completed
transactions if the request is submitted before the return is filed for
the year in which the transaction that is the subject of the request was
completed. Exempt Organizations Technical issues letter rulings involving:

(1) Organizations exempt from tax under section 501, including private
foundations;

(2) Organizations described in section 170(b)(1)(A) (except clause
(v));

(3) Political organizations described in section 527;

(4) Qualified state tuition programs described in section 529;

(5) Trusts described in section 4947(a);

(6) Welfare benefit plans described in section 4976; and

(7) Other matters including issues under sections 501 through 514,
4911, 4912, 4940 through 4948, 4955, 4958, 6033, 6104, 6113, and 6115.

<<END RULING>>



IN EMPLOYEE PLANS MATTERS

.02 In employee plans matters, the Employee Plans Technical Office
issues letter rulings on proposed transactions and on completed
transactions either before or after the return is filed. Employee Plans
Technical issues letter rulings involving:

(1) Sections 72, 101(d), 219, 381(c)(11), 402, 403(b), 404, 408, 408A,
412, 414(d), 414(e), 419, 419A, 511 through 514, 4971, 4972, 4973, 4974,
4978, 4979, and 4980;

(2) Waiver of the minimum funding standard (See Rev. Proc. 94-41,
1994-1 C.B. 711), and changes in funding methods and actuarial assumptions
under section 412(c)(5);

(3) Waiver of the liquidity shortfall (as that term is defined in
section 412(m)(5)) excise tax under section 4971(f)(4);

(4) Waiver under section 4980F(c)(4) of all or part of the excise tax
imposed for failure to satisfy the notice requirements described in
section 4980F(e) as added by section 659 of EGTRRA;

(5) Whether a plan amendment is reasonable and provides for only de
minimis increases in plan liabilities in accordance with sections
401(a)(33) and 412(f)(2)(A) of the Code (See Rev. Proc. 79-62, 1979-2 C.B.
576);

(6) A change in the plan year of an employee retirement plan and the
trust year of a tax-exempt employees' trust (See Rev. Proc. 87-27, 1987-1
C.B. 769);

(7) The tax consequences of prohibited transactions under sections 503
and 4975;

(8) Whether individual retirement accounts established by employers or
associations of employees meet the requirements of section 408(c). (See
Rev. Proc. 87-50, as modified by Rev. Proc. 91-44 (as modified by Rev.
Proc. 2002-8) and Rev. Proc. 92-38);

(9) With respect to employee stock ownership plans and tax credit
employee stock ownership plans, sections 409(l), 409(m), and 4975(d)(3).
Other subsections of sections 409 and 4975(e)(7) involve qualification
issues within the jurisdiction of EP Determinations.

(10) Where the Commissioner, Tax Exempt and Government Entities
Division has authority to grant extensions of certain periods of time
within which the taxpayer must perform certain transactions (for example,
the 90-day period for reinvesting in employer securities under section
1.46-8(e)(10) of the regulations), the taxpayer's request for an extension
of such time period must be postmarked (or received, if hand delivered to
the headquarters office) no later than the expiration of the original time
period. Thus, for example, a request for an extension of the 90-day period
under section 1.46-8(e)(10) must be made before the expiration of this
period. However, see section 6.04 below with respect to elections under
section 301.9100-1 of the Procedure and Administration Regulations.


IN QUALIFICATIONS MATTERS

.03 The Employee Plans Technical office ordinarily will not issue
letter rulings on matters involving a plan's qualified status under
sections 401 through 420 and section 4975(e)(7). These matters are
generally handled by the Employee Plans Determinations program as provided
in Rev. Proc. 2002-6, this Bulletin, Rev. Proc. 93-10 and Rev. Proc.
93-12. Although the Employee Plans Technical office will not ordinarily
issue rulings on matters involving plan qualification, a ruling may be
issued where, (1) the taxpayer has demonstrated to the Service's
satisfaction that the qualification issue involved is unique and requires
immediate guidance, (2) as a practical matter, it is not likely that such
issue will be addressed through the determination letter process, and (3)
the Service determines that it is in the interest of good tax
administration to provide guidance to the taxpayer with respect to such
qualification issue.


REQUEST FOR EXTENSION OF TIME FOR MAKING AN ELECTION OR FOR OTHER
RELIEF UNDER SECTION 301.9100-1 OF THE PROCEDURE AND ADMINISTRATION
REGULATIONS

.04 Employee Plans Technical or Exempt Organizations Technical will
consider a request for an extension of time for making an election or
other application for relief under section 301.9100-1 of the Procedure and
Administration Regulations even if submitted after the return covering the
issue presented in the section 301.9100-1 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 appeals office or a
federal court. In such a case, EP or EO Technical will notify the
Director, EP or EO Examinations.

Except for those requests pertaining to applications for recognition of
exemption, section 301.9100-1 requests, even those submitted after the
examination of the taxpayer's return has begun, are letter ruling requests
and therefore should be submitted pursuant to this revenue procedure, and
require payment of the applicable user fee, referenced in section 9.02(14)
of this revenue procedure. In addition, the taxpayer must include the
information required by section 301.9100-3(e).

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


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

.05 Unless the issue is covered by section 8 of this procedure, 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 interest 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.


ISSUES IN PRIOR RETURN

.06 The Service ordinarily does not issue rulings if, at the time the
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 the Director, EP or EO Examinations,

(2) is being considered by an appeals office,

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

(4) has been examined by the Director, EP or EO Examinations or
considered by an appeals office, and the statutory period of limitation
has not expired for either assessment or filing a claim for a refund or a
closing agreement covering the issue of liability has not been entered
into by the Director, EP or EO Rulings and Agreements or by an appeals
office.


If a return dealing with an issue for a particular year is filed while
a request for a ruling on that issue is pending, EP or EO Technical will
issue the ruling unless it is notified by the taxpayer that an examination
of that issue or the identical issue on an earlier year's return has been
started by the Director, EP or EO Examinations. See section 9.05. However,
even if an examination has begun, EP or EO Technical ordinarily will issue
the letter ruling if the Director, EP or EO Examinations agrees, by
memorandum, to permit the ruling to be issued.


GENERALLY NOT TO BUSINESS ASSOCIATIONS OR GROUPS

.07 EP or EO Technical 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 objectives of, and standards for, the publication of revenue
rulings and revenue procedures in the Internal Revenue Bulletin.

EP or EO Technical, 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

.08 EP or EO Technical does not issue letter rulings to foreign
governments or their political subdivisions about the U.S. tax effects of
their laws. However, EP or EO Technical 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

.09 EP or EO Technical does not issue letter rulings on a matter
involving the federal tax consequences of any proposed federal, state,
local, municipal, or foreign legislation. EP or EO Technical, however, may
provide general information in response to an inquiry.


SECTION 7. UNDER WHAT CIRCUMSTANCES DOES THE EP OR EO DETERMINATIONS ISSUE
DETERMINATION LETTERS?

CIRCUMSTANCES UNDER WHICH DETERMINATION LETTERS ARE ISSUED

.01 Employee Plans or Exempt Organizations Determinations issues
determination letters only if the question presented is specifically
answered by a statute, tax treaty, or regulation, or by a conclusion
stated in a revenue ruling, opinion, or court decision published in the
Internal Revenue Bulletin.


IN GENERAL

.02 In employee plans and exempt organizations matters, the EP or EO
Determinations office issues determination letters in response to
taxpayers' written requests on completed transactions. However, see
section 13.08 of this revenue procedure. 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 under examination.

In situations involving continuing transactions, such as whether an
ongoing activity is an unrelated trade or business, EP or EO Technical
would issue a ruling covering future tax periods and periods for which a
return had not yet been filed.

EP or EO Determinations does not issue determination letters on the tax
consequences of proposed transactions, except as provided in sections 7.03
and 7.04 below.


IN EMPLOYEE PLANS MATTERS

.03 In employee plans matters, the Employee Plans Determinations office
issues determination letters on the qualified status of employee plans
under sections 401, 403(a), 409 and 4975(e)(7), and the exempt status of
any related trust under section 501. See Rev. Proc. 2002-6, this Bulletin,
Rev. Proc. 93-10 and Rev. Proc. 93-12.


IN EXEMPT ORGANIZATIONS MATTERS

.04 In exempt organizations matters, the Exempt Organizations
Determinations office issues determination letters involving:

(1) Qualification for exempt status of organizations described in
sections 501 and 521 to the extent provided in Rev. Proc. 90-27, 1990-1
C.B. 514, as modified by Rev. Proc. 2002-8;

(2) Classification of private foundation status as provided in Rev.
Proc. 76-34, 1976-2 C.B. 656;

(3) Recognition of unusual grants to certain organizations under
sections 170(b)(1)(A)(vi) and 509(a)(2);

(4) Requests for relief under section 301.9100-1 of the Procedure and
Administration Regulations in connection with applications for recognition
of exemption;

(5) Advance approval under section 4945 of organizations' grant making
procedures whose determination letter requests or applications disclose
(or who have otherwise properly disclosed) a grant program or plans to
conduct such a program. If questions arise regarding grant-making
procedures that cannot be resolved on the basis of law, regulations, a
clearly applicable revenue ruling, or other published precedent, EO
Determinations will forward the matter to EO Technical for technical
advice;

(6) Whether certain organizations are exempt from filing annual
information returns under section 6033 as provided in Rev. Procs. 83-23,
1983-1 C.B. 687, 86-23, 1986-1 C.B. 564, and 95-48, 1995-2 C.B. 418;

(7) Whether certain organizations qualify as exempt operating
foundations described in section 4940(d); and

(8) Advance approval of voter registration activities described in
section 4945(f).


CIRCUMSTANCES UNDER WHICH DETERMINATION LETTERS ARE NOT ISSUED

.05 EP or EO Determinations will not issue a determination letter in
response to any request if--

(1) it appears that the taxpayer has directed a similar inquiry to EP
or EO Technical;

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

(3) the determination letter is requested by an industry, trade
association, or similar group on behalf of individual taxpayers within the
group (other than subordinate organizations covered by a group exemption
letter); or

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


Under no circumstances will EP or EO Determinations 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.


REQUESTS INVOLVING RETURNS ALREADY FILED

.06 A request received by the Service on a question concerning a return
that is under examination, will be, in general, 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 7.02 through 7.04 of
this revenue procedure are not reviewed by EP or EO Technical before they
are issued. If a taxpayer believes that a determination letter of this
type is in error, the taxpayer may ask EP or EO Determinations to
reconsider the matter or to request technical advice from EP or EO
Technical as explained in Rev. Proc. 2002-5, page 173, this Bulletin.

(1) In employee plans matters, the procedures for review of
determination letters relating to the qualification of employee plans
involving sections 401 and 403(a) are provided in Rev. Proc. 2002-6, Rev.
Proc. 93-10, and Rev. Proc. 93-12.

(2) In exempt organizations matters, the procedures for the review of
determination letters relating to the exemption from federal income tax of
certain organizations under sections 501 and 521 are provided in Rev.
Proc. 90-27, as modified by Rev. Proc. 2002-8.


SECTION 8. 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 a letter ruling or
determination letter in certain areas because of the factual nature of the
problem involved or because of other reasons. 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 Service
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 Service 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 office having jurisdiction for the matters on which the
taxpayer is seeking a letter ruling to discuss whether the Service will
issue a letter ruling on part of the transaction.


NOT ON PARTIAL TERMINATIONS OF EMPLOYEE PLANS

.04 The Service will not issue a letter ruling on the partial
termination of an employee plan. Determination letters involving the
partial termination of an employee plan may be issued.


LAW REQUIRES RULING LETTER

.05 The Service will issue rulings on prospective or future
transactions if the law or regulations require a determination of the
effect of a proposed transaction for tax purposes.


ISSUES UNDER CONSIDERATION BY PBGC OR DOL

.06 A letter ruling or determination letter relating to an issue that
is being considered by the Pension Benefit Guaranty Corporation (PBGC) or
the Department of Labor (DOL), and involves the same taxpayer, shall be
issued at the discretion of the Service.


CAFETERIA PLANS

.07 The Service does not issue letter rulings or determination letters
on whether a cafeteria plan satisfies the requirements of section 125. See
also Rev. Proc. 2002-3, also in this Bulletin, for areas under the
jurisdiction of the Division Counsel/Associate Chief Counsel (Tax Exempt
and Government Entities) involving cafeteria plans in which advance
rulings or determination letters will not be issued.


DETERMINATION LETTERS

.08 See section 3.02 of Rev. Proc. 2002-6 for employee plans matters on
which determination letters will not be issued.


DOMICILE IN A FOREIGN JURISDICTION

.09

(1) The Service is ordinarily unwilling to rule in situations where a
taxpayer or a related party is domiciled or organized in a foreign
jurisdiction with which the United States does not have an effective
mechanism for obtaining tax information with respect to civil tax
examinations and criminal investigations, which would preclude the Service
from obtaining information located in such jurisdiction that is relevant
to the analysis or examination of the tax issues involved in the ruling
request.

(2) The provisions of subsection 8.09(1) above shall not apply if the
taxpayer or affected related party (a) consents to the disclosure of all
relevant information requested by the Service in processing the ruling
request or in the course of an examination to verify the accuracy of the
representations made and to otherwise analyze or examine the tax issues
involved in the ruling request, and (b) waives all claims to protection of
bank and commercial secrecy laws in the foreign jurisdiction with respect
to the information requested by the Service. In the event the taxpayer's
or related party's consent to disclose relevant information or to waive
protection of bank or commercial secrecy is determined by the Service to
be ineffective or of no force and effect, then the Service may
retroactively rescind any ruling rendered in reliance on such consent.


EMPLOYEE STOCK OWNERSHIP PLANS

.10 The Service does not issue a letter ruling on whether or not the
renewal, extension or refinancing of an exempt loan satisfies the
requirements of section 4975(d)(3) of the Internal Revenue Code.


SECTION 9. WHAT ARE THE GENERAL INSTRUCTIONS FOR REQUESTING LETTER RULINGS
AND DETERMINATION LETTERS?

IN GENERAL

.01 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 discussed in section 9.02(14) 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 10 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

.02

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

(c) a detailed description of the transaction.


The Service will usually not rule on only one step of a larger
integrated transaction. See section 8.03 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

(2) COPIES OF ALL CONTRACTS, WILLS, DEEDS, AGREEMENTS, INSTRUMENTS,
PLAN DOCUMENTS, AND OTHER DOCUMENTS. True copies of all contracts, wills,
deeds, agreements, instruments, plan documents, trust documents, proposed
disclaimers, and other documents pertinent to the transaction must be
submitted with the request.

Each document, other than the request, should be labelled
alphabetically and attached to the request in alphabetical order. 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.


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 the Service;

(b) has been examined and if so, whether or not the statutory period of
limitations has expired for either assessing tax or filing a claim for
refund or credit of tax;

(c) has been examined and if so, whether or not a closing agreement
covering the issue or liability has been entered into by the Service;

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

(e) has been considered by an appeals office in connection with a
return from an earlier period and if so, whether or not the statutory
period of limitations has expired for either assessing tax or filing a
claim for refund or credit of tax;

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

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

(h) in employee plans matters, is being considered by the Pension
Benefit Guaranty Corporation or the Department of Labor.


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 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 the same or 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 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 involving the same or a
similar issue to the Service.


If the statement is affirmative for (a), (b), (c), or (d) of this
section 9.02(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.


Statement of authorities supporting taxpayer's views

(6) 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 also 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

(7) 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, revenue rulings, revenue procedures, notices 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

(8) 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 applicable 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

(9) STATEMENT IDENTIFYING INFORMATION TO BE DELETED FROM COPY OF LETTER
RULING OR DETERMINATION LETTER FOR PUBLIC INSPECTION. The text of certain
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 30 calendar days. See section 11.03 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.

Section 6110(l)(1) states that section 6110 disclosure provisions do
not apply to any matter to which section 6104 applies. Therefore, letter
rulings, determination letters, technical advice memoranda, and related
background file documents dealing with the following matters (covered by
section 6104) are not subject to section 6110 disclosure provisions--

(i) An application for exemption under section 501(a) as an
organization described in section 501(c) or (d), or any application filed
with respect to the qualification of a pension, profit-sharing or stock
bonus plan, or an individual retirement account, whether the plan or
account has more than 25 or less than 26 participants, or any application
for exemption under section 501(a) by an organization forming part of such
a plan or account;

(ii) Any document issued by the Internal Revenue Service in which the
qualification or exempt status of an organization, plan, or account is
granted, denied, or revoked or the portion of any document in which
technical advice with respect thereto is given;

(iii) Any application filed and any document issued by the Internal
Revenue Service with respect to the qualification or status of EP
Technical master and prototype plans;

(iv) The portion of any document issued by the Internal Revenue Service
with respect to the qualification or exempt status of an organization,
plan, or account, of a proposed transaction by such organizations, plan,
or account; and

(v) Any document issued by the Internal Revenue Service in which is
discussed the status of an organization under section 509(a) or section
4942(j)(3), other than one issued to a nonexempt charitable trust
described in section 4947(a)(1). This includes documents discussing the
termination of private foundation status under section 507.


Signature on request

(10) 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

(11) AUTHORIZED REPRESENTATIVES. To sign the request or to appear
before the Service in connection with the request, the 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 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, including a person enrolled to practice only
for employee plans matters. 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;


Enrolled actuary

(d) An enrolled actuary who is a person enrolled as an actuary by the
Joint Board for the Enrollment of Actuaries pursuant to 29 U.S.C. 1242 and
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 an enrolled
actuary and current authorization to represent the taxpayer. Practice as
an enrolled actuary is limited to representation with respect to issues
involving the following statutory provisions: sections 401, 403(a), 404,
412, 413, 414, 4971, 6057, 6058, 6059, 6652(e), 6652(f), 6692, 7805(b),
and 29 U.S.C. 1083;


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, Internal Revenue Service, 1111 Constitution Avenue, N.W.,
Washington, DC 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. A preparer of a return (other
than a person referred to in paragraph (a), (b), (c), (d) or (e) of this
section 9.02(11)) who is not a full-time employee, general partner, a bona
fide officer, an administrator, trustee, etc., or an individual
representing his or her immediate family may not represent a taxpayer in
connection with a letter ruling, determination letter or a technical
advice request. See section 10.7(c) of Treasury Department Circular No.
230.


Foreign representative

(g) A foreign representative (other than a person referred to in
paragraph (a), (b), (c), (d) or (e) of this section 9.02(11)) 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 entity's own behalf or through a person
referred to in paragraph (a), (b), (c), (d) or (e) of this section
9.02(11).


Power of attorney and declaration of representative

(12) 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 (2000)), 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
9.03(2) of this revenue procedure.

For the requirement regarding compliance with Treasury Department
Circular No. 230, see section 9.09 of this revenue procedure.


Penalties of perjury statement

(13) 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 this request, or this
modification to the request, including accompanying documents, and, to the
best of my knowledge and belief, the request or the modification contains
all the relevant facts relating to the request, and such facts are true,
correct, and complete." See section 11.04 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.


Applicable user fee

(14) APPLICABLE USER FEE. Section 10511 of the Revenue Act of 1987,
Pub. L. No. 100-203, 101 Stat. 1330-382, 1330-446, 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 Relief to Operation Joint Endeavor
Participants Act, Pub. L. No. 104-117, 110 STAT. 827, 828, enacted March
20, 1996, requires taxpayers to pay user fees for requests for rulings,
opinion letters, determination letters, and similar requests. Rev. Proc.
2002-8, page 252, this Bulletin, contains the schedule of fees for each
type of request under the jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division and provides guidance for administering the
user fee requirements. If two or more taxpayers are parties to a
transaction and each requests a letter ruling, each taxpayer must satisfy
the rules herein and additional user fees may apply.


Number of copies of request to be submitted

(15) 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 9.03(1) of
this revenue procedure;

(b) the taxpayer is requesting deletions other than names, addresses,
and identifying numbers, as explained in section 9.02(9) 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 3.03 of this revenue
procedure) is being requested on the issue presented.


Sample of a letter ruling request

(16) 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 A. 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 A, the different format will neither defer
consideration of the letter ruling request nor be cause for returning the
request to the taxpayer or taxpayer's representative.


Checklist

(17) CHECKLIST FOR LETTER RULING REQUESTS. The Service will be able to
respond more quickly to a taxpayer's letter ruling request if it is
carefully prepared and complete. The checklist in Appendix B 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 B 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 B is not
received, a group representative will ask the taxpayer or the taxpayer's
representative to submit the checklist, which may delay action on the
letter ruling request. A photocopy of this checklist may be used.


ADDITIONAL INFORMATION REQUIRED IN CERTAIN CIRCUMSTANCES

.03

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 ruling letter 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 9.02(12) 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.


Expedited handling

(3) 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 the
appropriate group for action until the check or money order for the user
fee in the correct amount is received.

Whether the request will be granted is within the Service's discretion.
The Service may grant a 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 their regular order, the Service urges all
taxpayers to submit their requests well in advance of the contemplated
transaction. In addition, in order 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 10 of this revenue procedure), and to provide any additional
information requested by the Service promptly.


Facsimile transmission (fax)

(4) TO RECEIVE A LETTER RULING OR SUBMIT A REQUEST FOR A LETTER RULING
BY FACSIMILE TRANSMISSION (FAX).

(a) TO RECEIVE A LETTER RULING BY FAX. A letter ruling ordinarily is
not sent by fax. However, if the taxpayer requests, a copy of a letter
ruling may be faxed to the taxpayer or the taxpayer's authorized
representative. 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 the letter ruling 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 approval of the
letter ruling. The request must contain the fax number of the taxpayer or
the taxpayer's authorized representative to whom the letter ruling is to
be faxed.

In addition, because of the nature of a fax transmission, a statement
containing a waiver of any disclosure violations resulting from the fax
transmission must accompany the request. Nevertheless, the Service will
take certain precautions to protect confidential information. For example,
the Service will use a cover sheet that identifies the intended recipient
of the fax and the number of pages transmitted. The cover sheet, if
possible, will not identify the specific taxpayer by name, and it will be
the first page covering the letter ruling being faxed.

(b) TO SUBMIT A REQUEST FOR A LETTER RULING BY FAX. Original letter
ruling requests sent 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 applicable office for
action until the check for the user fee is received.


Requesting a conference

(5) 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 12.01, 12.02, and 13.09(2) of
this revenue procedure.


ADDRESS TO SEND THE REQUEST

.04

Requests for letter rulings

(1) Requests for letter rulings should be sent to the following offices
(as appropriate):

Employee Plans
Internal Revenue Service
Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 27063
McPherson Station
Washington, D.C. 20038

Exempt Organizations
Internal Revenue Service
Commissioner, TE/GE
Attention: T:EO:RA
P.O. Box 27720
McPherson Station
Washington, D.C. 20038


Hand delivered requests must be marked RULING REQUEST SUBMISSION. The
delivery should be made between the hours of 8:00 a.m. and 4:00 p.m.;
where a receipt will be given:

Courier's Desk
Internal Revenue Service
Attention: T:EP or T:EO
1111 Constitution Avenue, N.W.
Washington, DC 20224


Requests for information letters

(2) Requests for information letters on either employee plans matters
or exempt organizations matters should be sent to Employee Plans or Exempt
Organizations (as appropriate):

Internal Revenue Service
Commissioner, TE/GE
Attention: T:EP or T:EO
1111 Constitution Avenue, N.W.
Washington, DC 20224


Requests for determination letters

(3) Requests for determination letters should be sent to:

Internal Revenue Service
EP/EO Determinations Processing
P.O. Box 192
Covington, KY 41012-0192


For fees required with determination letter requests, see section 6 of
Rev. Proc. 2002-8.


PENDING LETTER RULING REQUESTS

.05

(1) CIRCUMSTANCES UNDER WHICH THE TAXPAYER MUST NOTIFY EP OR EO
TECHNICAL. The taxpayer must notify EP or EO Technical 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 an EP or EO Examinations office;

(b) in employee plans matters, the issue is being considered by the
Pension Benefit Guaranty Corporation or the Department of Labor; or

(c) legislation that may affect the transaction has been introduced
(see section 9.02(8) of this revenue procedure).


(2) TAXPAYER MUST NOTIFY EP OR EO TECHNICAL IF RETURN IS FILED AND MUST
ATTACH REQUEST TO RETURN. If the taxpayer files a return before a letter
ruling is received from EP or EO Technical concerning the issue, the
taxpayer must notify EP or EO Technical that the return has been filed.
The taxpayer must also attach a copy of the letter ruling request to the
return to alert the EP or EO Examination office and thereby avoid
premature EP or EO Examination office action on the issue.


WHEN TO ATTACH LETTER RULING TO RETURN

.06 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

.07 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 acknowledgement of receipt of
the request.


REQUEST MAY BE WITHDRAWN OR EP OR EO TECHNICAL MAY DECLINE TO ISSUE
LETTER RULING

.08

(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 Service declines to issue a letter ruling will not
be returned to the taxpayer. See section 9.02(2) of this revenue
procedure. In appropriate cases, the Service may publish its conclusions
in a revenue ruling or revenue procedure.

A request for a letter ruling will not be suspended in EP or EO
Technical at the request of a taxpayer.

(2) NOTIFICATION OF DIRECTOR, EP OR EO EXAMINATIONS. If a taxpayer
withdraws a request for a letter ruling or if EP or EO Technical declines
to issue a letter ruling, EP or EO Technical will notify the Director, EP
or EO Examinations and may give its views on the issues in the request to
the Director, EP or EO Examinations to consider in any later examination
of the return.

(3) REFUNDS OF USER FEE. The user fee will not be returned for a letter
ruling request that is withdrawn. If the Service declines to issue a
letter ruling on all of the issues in the request, the user fee will be
returned. If the Service, however, issues a letter ruling on some, but not
all, of the issues, the user fee will not be returned. See section 10 of
Rev. Proc. 2002-8 for additional information regarding refunds of user
fees.


COMPLIANCE WITH TREASURY DEPARTMENT CIRCULAR NO. 230

.09 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 EP or EO
Technical believes that the taxpayer's representative is not in compliance
with Circular No. 230, EP or EO Technical 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 9.02(12) of this revenue procedure.


SECTION 10. WHAT SPECIFIC, ADDITIONAL PROCEDURES APPLY TO CERTAIN
REQUESTS?

IN GENERAL
.01 Specific revenue procedures supplement the general instructions for
requests explained in section 9 of this revenue procedure and apply to
requests for letter rulings or determination letters regarding the Code
sections and matters listed in this section.


EXEMPT ORGANIZATIONS

.02 If the request is for the qualification of an organization for
exemption from federal income tax under section 501 or 521, see Rev. Proc.
72-5, 1972-1 C.B. 709, regarding religious and apostolic organizations;
Rev. Proc. 80-27, 1980-1 C.B. 677, concerning group exemptions; and Rev.
Proc. 90-27, 1990-1 C.B. 514 (as modified by Rev. Proc. 2002-8), regarding
applications for recognition of exemption.


EMPLOYEE PLANS

.03

(1) For requests to obtain approval for a retroactive amendment
described in section 412(c)(8) of the Code and section 302(c)(8) of the
Employee Retirement Income Security Act of 1974 (ERISA) that reduces
accrued benefits, see Rev. Proc. 94-42, 1994-1 C.B. 717.

(2) For requests for a waiver of the minimum funding standard, see Rev.
Proc. 94-41, 1994-1 C.B. 711.

(3) For requests for a waiver of the 100 percent tax imposed under
section 4971(b) of the Code on a pension plan that fails to meet the
minimum funding standards of section 412, see Rev. Proc. 81-44, 1981-2
C.B. 618.

(4) For requests for a determination that a plan amendment is
reasonable and provides for only de minimis increases in plan liabilities
in accordance with sections 401(a)(33) and 412(f)(2)(A), see Rev. Proc.
79-62, 1979-2 C.B. 576.

(5) For requests to obtain approval for an extension of an amortization
period of any unfunded liability in accordance with section 412(e), see
Rev. Proc. 79-61, 1979-2 C.B. 575.

(6) For requests by administrators or sponsors of a defined benefit
plan to obtain approval for a change in funding method, see Rev. Proc.
2000-41, 2000-42 I.R.B. 371.

(7) For requests for the return to the employer of certain
nondeductible contributions, see Rev. Proc. 90-49, 1990-2 C.B. 620 (as
modified by Rev. Proc. 2002-8).

(8) For requests for determination letters for plans under sections
401, 403(a), 409, and 4975(e)(7), and for the exempt status of any related
trust under section 501, see Rev. Proc. 2002-6, Rev. Proc. 93-10 and Rev.
Proc. 93-12.


SECTION 11. HOW DOES EP OR EO TECHNICAL HANDLE LETTER RULING REQUESTS?

IN GENERAL

.01 The Service will issue letter rulings on the matters and under the
circumstances explained in sections 4 and 6 of this revenue procedure and
in the manner explained in this section and section 13 of this revenue
procedure.


IS NOT BOUND BY INFORMAL OPINION EXPRESSED

.02 The Service will not be bound by the informal opinion expressed by
the group representative or any other authorized Service representative
under this procedure, 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

.03 If a request for a letter ruling or determination letter does not
comply with all the provisions of this revenue procedure, the request will
be acknowledged and the Service representative will tell the taxpayer
during the initial contact which requirements have not been met.


INFORMATION MUST BE SUBMITTED WITHIN 30 CALENDAR DAYS

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 Service representative will tell
the taxpayer during the initial contact that the request will be closed if
the Service does not receive the information within 30 calendar days
unless an extension of time is granted. See section 11.04 of this revenue
procedure for information on extension of time and instructions on
submissions of additional information.


LETTER RULING REQUEST MISTAKENLY SENT TO EP OR EO DETERMINATIONS
PROCESSING

A request for a letter ruling sent to EP/EO Determinations Processing
that does not comply with the provisions of this revenue procedure will be
returned by EP/EO Determinations Processing so that the taxpayer can make
corrections before sending it to EP or EO Technical.


REQUIRES PROMPT SUBMISSION OF ADDITIONAL INFORMATION REQUESTED AFTER
INITIAL CONTACT

.04 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 9.02(13)(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.


Encourage use of fax

(1) To facilitate prompt action on letter ruling requests, taxpayers
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) Additional information should be sent to the same address as the
original letter ruling request. See section 9.04. However, 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 Service may
request additional copies of the information.


30-day or 21-day period may be extended if justified and approved

(4) An extension of the 30-day period under section 11.03 or the 21-day
period under section 11.04, will be granted only if justified in writing
by the taxpayer and approved by the manager of the group to which the case
is assigned. A request for extension should be submitted before the end of
the 30-day or 21-day period. If unusual circumstances close to the end of
the 30-day or 21-day period make a written request impractical, the
taxpayer should notify the Service within the 30-day or 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 essential information
is lacking, 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 TAXPAYER OF
CONCLUSIONS AND, IF THE SERVICE WILL RULE ADVERSELY, OFFERS THE TAXPAYER
THE OPPORTUNITY TO WITHDRAW THE LETTER RULING REQUEST

.05 Generally, after the conference of right is held before the letter
ruling is issued, the Service representative will inform the taxpayer or
the taxpayer's authorized representative of the Service's final
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
Service representative of a decision to withdraw the ruling request, the
adverse letter will be issued. The user fee will not be refunded for a
letter ruling request that is withdrawn. See section 10 of Rev. Proc.
2002-8.



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

.06 To accelerate 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 in order 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 word processing disk

In addition to a typed draft, taxpayers are encouraged to submit this
draft on a disk in Rich Text Format. The typed draft will become part of
the permanent files of the Service, and the word processing disk will not
be returned. If the Service representative requesting the draft letter
ruling cannot answer specific questions about the format of the word
processing disk, the questions can be directed to Alan Pipkin at (202)
283-9647 (Employee Plans), or Wayne Hardesty at (202) 283-8976 (Exempt
Organizations) (not toll-free calls).

The proposed letter ruling (both typed draft and word processing 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 11.04 of this revenue procedure.


SECTION 12. 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 Service
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 9.03(5) 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 11.04 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, except as explained under section 12.05 of this revenue
procedure. This conference normally will be held at the group level and
will be attended by a person who, at the time of the conference, has the
authority to sign the ruling letter in his or her own name or for the
group manager.

When more than one group has taken an adverse position on an issue in a
letter ruling request, or when the position ultimately adopted by one
group will affect that adopted by another, a representative from each
group with the authority to sign in his or her own name or for the group
manager 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 group 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 group to any other
official of the Service. But see section 12.05 of this revenue procedure
for situations in which the Service may offer additional conferences.


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 group level, if the
Service decides they are needed. Such conferences are not offered as a
matter of course simply because the group 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 Service 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 11.04 of this
revenue procedure for instructions on submission of additional
information. If the additional information is not received within that
time, a 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 11.04 of this revenue procedure regarding submitting additional
information.


MAY SCHEDULE A PRE-SUBMISSION CONFERENCE

.07 Sometimes it is 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 on a time-available basis. 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. See section 6 of this revenue procedure.
Generally, the taxpayer will be asked to provide before the pre-submission
conference a statement of whether the issue is an issue on which a letter
ruling is ordinarily issued and a draft of the letter ruling request or
other detailed written statement of the proposed transaction, issue, and
legal analysis. If the taxpayer's representative will attend the
pre-submission conference, a power of attorney form is required. It is
preferred that a Form 2848, Power of Attorney and Declaration of
Representative, be used to provide the representative's authorization.

Any discussion of substantive issues at a pre-submission conference is
advisory only, is not binding on the Service, and cannot be relied upon as
a basis for obtaining retroactive relief under the provisions of section
7805(b). A letter ruling request submitted following a pre-submission
conference will not necessarily be assigned to the group that held the
pre-submission conference.


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

.08 A taxpayer may 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, DC. If a taxpayer makes
such a request, the group manager will decide if it is appropriate in the
particular case to hold the conference of right by telephone. If the
request is approved by the group manager, the taxpayer will be advised
when to call the Service representatives (not a toll-free call).


SECTION 13. 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 THE DIRECTOR, EP OR EO EXAMINATIONS IN EXAMINING THE
TAXPAYER'S RETURN

.03 When determining a taxpayer's liability, the Director, EP or EO
Examinations 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, EP or EO Examinations
finds that a letter ruling should be revoked or modified, unless a waiver
is obtained from EP or EO Technical, the findings and recommendations of
the Director, EP or EO Examinations will be forwarded to EP or EO
Technical for consideration before further action is taken by the
Director, EP or EO Examinations. Such a referral to EP or EO Technical
will be treated as a request for technical advice and the procedures of
Rev. Proc. 2002-5 will be followed. Otherwise, the letter ruling is to be
applied by the Director, EP or EO Examinations in determining the
taxpayer's liability. Appropriate coordination with EP or EO Technical
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
3.03 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 statute 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 employee covered by a ruling relating
to a qualified plan of an employer is directly involved in such ruling.
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 ONLY 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
13.05 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 Commissioner, Tax
Exempt and Government Entities Division, 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.


MAY BE RETROACTIVELY REVOKED OR MODIFIED WHEN TRANSACTION IS COMPLETED
WITHOUT RELIANCE ON THE LETTER RULING

.08 A taxpayer is not protected against retroactive revocation or
modification of a letter ruling involving a completed transaction other
than those described in section 13.07 of this revenue procedure, because
the taxpayer did not enter into the transaction relying on a letter
ruling.


TAXPAYER MAY REQUEST THAT RETROACTIVITY BE LIMITED

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

A taxpayer to whom a letter ruling or determination letter has been
issued may request that the Commissioner, Tax Exempt and Government
Entities Division, limit the retroactive effect of any revocation or
modification of the letter ruling or determination letter.


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 9 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
13.05 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 revoking or
modifying 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, EP or EO Examinations during an examination of the
taxpayer's return or by the Appeals Area Director, SB/SE-TE/GE or the
Appeals Area Director, LMSB, during consideration of the taxpayer's return
before an appeals office, a request to limit retroactive effect must be
made in the form of a request for technical advice as explained in section
19 of Rev. Proc. 2002-5.


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.

Consideration of relief under section 7805(b) will be included as one
of the taxpayer's steps in exhausting administrative remedies only if the
taxpayer has requested such relief in the manner described in this revenue
procedure. If the taxpayer does not complete the applicable steps, the
taxpayer will not have exhausted the taxpayer's administrative remedies as
required by section 7428(b)(2) and section 7476(b)(3) and will, thus, be
precluded from seeking a declaratory judgment under section 7428 or
section 7476. Where the taxpayer has requested section 7805(b) relief, the
taxpayer's administrative remedies will not be considered exhausted until
the Service has had a reasonable time to act upon the 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 EP or EO
Technical as explained in sections 12.01, 12.02, 12.03, 12.04, and 12.05
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 12.02 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 14. WHAT EFFECT WILL A DETERMINATION LETTER HAVE?

HAS SAME EFFECT AS A LETTER RULING

.01 A determination letter issued by EP or EO Determinations has the
same effect as a letter ruling issued to a taxpayer under section 13 of
this revenue procedure.

If the Director, EP or EO Examinations proposes to reach a conclusion
contrary to that expressed in a determination letter, he or she need not
refer the matter to EP or EO Technical as is required for a letter ruling
found to be in error. However, the Director, EP or EO Examinations must
refer the matter to EP or EO Technical if the Director, EP or EO
Examinations 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 The Director, EP or EO Examinations does not have authority under
section 7805(b) to limit the revocation or modification of the
determination letter. Therefore, if the Director, EP or EO Examinations
proposes to revoke or modify a determination letter, the taxpayer may
request limitation of the retroactive effect of the revocation or
modification by asking EP or EO Determinations to seek technical advice
from EP or EO Technical. See section 19 of Rev. Proc. 2002-5.


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
18.06 of Rev. Proc. 2002-5. 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 13.05 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 EP or EO Technical
to the same extent as does any taxpayer who is the subject of a technical
advice request. See section 11 of Rev. Proc. 2002-5.


Exhaustion of administrative remedies

(3) TAXPAYER STEPS IN EXHAUSTING ADMINISTRATIVE REMEDIES.

Consideration of relief under section 7805(b) will be included as one
of the taxpayer's steps in exhausting administrative remedies only if the
taxpayer has requested such relief in the manner described in this revenue
procedure. If the taxpayer does not complete the applicable steps, the
taxpayer will not have exhausted the taxpayer's administrative remedies as
required by section 7428(b)(2) and section 7476(b)(3) and will, thus, be
precluded from seeking a declaratory judgment under section 7428 or
section 7476. Where the taxpayer has requested section 7805(b) relief, the
taxpayer's administrative remedies will not be considered exhausted until
the Service has had a reasonable time to act upon the request.



SECTION 15. UNDER WHAT CIRCUMSTANCES ARE MATTERS REFERRED BETWEEN
DETERMINATIONS AND TECHNICAL?

REQUESTS FOR DETERMINATION LETTERS

.01 Requests for determination letters received by EP or EO
Determinations that, under the provisions of this revenue procedure, may
not be issued by EP or EO Determinations, will be forwarded to the EP or
EO Technical for reply. EP or EO Determinations will notify the taxpayer
that the matter has been referred.

EP or EO Determinations will also refer to EP or EO Technical any
request for a determination letter that in its judgement should have the
attention of EP or EO Technical.


NO-RULE AREAS

.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 EP or EO Technical. EP or EO Determinations will notify the
taxpayer that the Service will not issue a letter ruling or a
determination letter on the issue. See section 8 of this revenue procedure
for a description of no-rule areas.


REQUESTS FOR LETTER RULINGS

.03 Requests for letter rulings received by EP or EO Technical that,
under section 6 of this revenue procedure, may not be acted upon by EP or
EO Technical will be forwarded to the Director, EP or EO Examinations. 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 8 of this revenue procedure,
and the Service decides not to issue a letter ruling or an information
letter, EP or EO Technical will notify the taxpayer and will then forward
the request to the Director, EP or EO Examinations for association with
the related return.


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

WILL BE MADE AVAILABLE TO THE PUBLIC

.01 Information letters that are issued by the headquarters 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 3.06 of this revenue
procedure. Information letters that are issued by the field, 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
headquarters 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 3.06 of this revenue procedure. If the
headquarters 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 IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER
DOCUMENTS?

Rev. Proc. 2001-4, 2001-1 I.R.B. 121, is superseded.


SECTION 18. EFFECTIVE DATE

This revenue procedure is effective January 7, 2002.


SECTION 19. 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 1545-1520.

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 7.07, 9.02, 9.03, 9.04, 9.05, 9.06, 10.02, 10.03, 11.03,
11.04(1)-(5), 11.06, 12.01, 12.06, 12.07, 13.09(1), 14.02(1), and in
Appendix B. 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
12,650 hours.

The estimated annual burden per respondent/recordkeeper varies from 15
minutes to 16 hours, depending on individual circumstances and the type of
request involved, with an estimated average burden of 6.01 hours. The
estimated number of respondents and/or recordkeepers is 2,103.

The estimated annual frequency of responses is one request per
applicant, except that a taxpayer requesting a letter ruling may also
request a presubmission conference.

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 Luis O. Ortiz of the
Employee Plans, Tax Exempt and Government Entities Division. For further
information regarding how this revenue procedure applies to employee plans
matters, contact the Employee Plans Customer Assistance Service at
1-877-829-5500 (a toll-free call). Mr. Ortiz' telephone number is (202)
283-9652 (not a toll-free call). For exempt organization matters, please
contact Mr. Wayne Hardesty (202) 283-8976 (not a toll-free call).


INDEX

ADDITIONAL INFORMATION sec. 9.02(9), 9.03, 11.03, 11.04

CLOSING AGREEMENT sec. 3.03, 6.06(4), 9.02(4), 9.02(15), 13.04

CONFERENCE sec. 9.02(9), 9.03(5), 12.01-.08,
13.09(2), 14.02(2)

DISCLOSE sec. 9.02(9)

EXEMPT ORGANIZATION sec. 6.01

EXPEDITIOUS HANDLING sec. 9.03(3)

EXTENSION sec. 6.02, 6.04, 11.04, 12.01, 12.06

FAX sec. 9.03(4), 11.04

FEE sec. 9.02(14), 11.04(5)

HAND DELIVERED 9.04(1)

INFORMATION LETTER sec. 3.07, 8.01, 15.03

NO RULE sec. 8, 15.02

PERJURY STATEMENT sec. 9.02(13), 11.04, 11.06

POWER OF ATTORNEY sec. 9.02(12), 9.03(2)

RELIANCE sec. 3.09, 11.02, 12.07, 13, 14

REPRESENTATIVES sec. 3.09, 9.02(10)-(11), 9.03(2)

RETROACTIVE sec. 11.02, 12.04, 12.07, 13, 14

REVENUE RULING sec. 3.08, 6.07, 13.04, 13.09(1)

SECTION 6110 sec. 9.02(9), 13.02

STATUS sec. 9.07

TECHNICAL ADVICE sec. 7.08, 13.03, 13.09(1), 14

TELEPHONE sec. 9.02(1), 11.04, 12.01, 12.08

WHERE TO SEND sec. 9.04

WITHDRAW sec. 9.08


APPENDIX A -- SAMPLE FORMAT FOR A LETTER RULING REQUEST

(Insert the date of request)

Internal Revenue Service
Commissioner, TE/GE
Attention: T:EP:RA
P.O. Box 27063
McPherson Station
Washington, DC 20038

Dear Sir or Madam:

(Insert the name of the taxpayer) (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, the letter ruling
request must contain a statement to that effect. This statement must
explain the need for expeditious handling. See section 9.03(3).]

A. STATEMENT OF FACTS

1. Taxpayer Information

[Provide the statements required by sections 9.02(1)(a), (b), (c), and (d)
of Rev. Proc. 2002-4, 2002-1 I.R.B. 127. (Hereafter, all references are to
Rev. Proc. 2002-4 unless otherwise noted.)]

For example, a taxpayer that maintains a qualified employee retirement
plan and files an annual Form 5500 series of returns may include the
following statement to satisfy sections 9.02(1)(a), (b), (c), and (d):

The Taxpayer is a construction company with principal offices located at
100 Whatever Drive, Wherever, Maryland 12345, and its telephone number is
(123) 456-7890. The Taxpayer's federal employer identification number is
00-1234567. The Taxpayer uses the Form 5500 series of returns on a
calendar year basis to report its qualified employee retirement plan and
trust.


2. Detailed Description of the 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 9.02(1)(c),
9.02(1)(d), and 9.02(2).]


B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling
requested by the taxpayer.]


C. STATEMENT OF LAW

[The ruling request must contain a statement of the law in support of the
taxpayer's views or conclusion, including any authorities believed to be
contrary to the position advanced in the ruling request. This statement
must also identify any pending legislation that may affect the proposed
transaction. See sections 9.02(6), 9.02(7), and 9.02(8).]


D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis
of the law. See sections 9.02(3), 9.02(6), 9.02(7), and 9.02(8).]


E. CONCLUSION

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


F. PROCEDURAL MATTERS

1. Rev. Proc. 2002-4 statements

a. [The statement required by section 9.02(4).]

b. [The statement required by section 9.02(5).]

c. [The statement required by section 9.02(6) regarding whether the law
in connection with the letter ruling request is uncertain and whether the
issue is adequately addressed by relevant authorities.]

d. [The statement required by section 9.02(7) when the taxpayer
determines that there are no contrary authorities.]

e. [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 9.03(5).]

f. [If the taxpayer is requesting the letter ruling to be issued by
fax, the ruling request should contain a statement to that effect. This
statement must also contain a waiver of any disclosure violations
resulting from the fax transmission. See section 9.03(4).]

g. [If the taxpayer is requesting separate letter rulings on multiple
issues, the letter ruling request should contain a statement to that
effect. See section 9.03(1).]


2. Administrative

a. A Power of Attorney is enclosed. [See sections 9.02(12) and
9.03(2).]

b. The deletions statement and checklist required by Rev. Proc. 2002-4
are enclosed. [See sections 9.02(9) and 9.02(17).]

c. The required user fee is enclosed. [See section 9.02(14).]

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 9.02(13).]

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


APPENDIX B -- CHECKLIST

IS YOUR 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 be cause for returning your request or
deferring substantive consideration of the 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 N/A 1. Does your request involve an issue under the
jurisdiction of the Commissioner, Tax Exempt and
Government Entities Division? See section 5 of Rev. Proc.
2002-4, 2002-1 I.R.B. 127, for issues under the
jurisdiction of other offices. (Hereafter, all references
are to Rev. Proc. 2002-4 unless otherwise noted.)

Yes No N/A 2. 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 private
letter ruling? Before preparing your request, you may
want to call the office 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. The appropriate
office to call for this information may be obtained by
calling (202) 283-9660 (Employee Plans matters), or (202)
283-2300 (Exempt Organizations matters) (not toll-free
calls).

Yes No N/A 3. If the request involves an employee plans
Page ____ qualification matter under section 401(a), section 409,
or section 4975(e)(7), have you demonstrated that the
request satisfies the three criteria in section 6.03 for
a headquarters office ruling?

Yes No N/A 4. If the request deals with a completed transaction,
Page ____ have you filed the return for the year in which the
transaction was completed? See sections 6.01 and 6.02.

Yes No 5. Are you requesting a letter ruling on a hypothetical
situation or question? See section 8.02.

Yes No 6. Are you requesting a letter ruling on alternative
plans of a proposed transaction? See section 8.02.

Yes No 7. Are you requesting the letter ruling for only part of
an integrated transaction? See section 8.03.

Yes No 8. Have you submitted another letter ruling request for
the transaction covered by this request?

Yes No 9. 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 6.07.

Yes No 10. Have you included a complete statement of all the
Pages ____ facts relevant to the transaction? See section 9.02(1).

Yes No N/A 11. Have you submitted with the request true copies of
all wills, deeds, plan documents, and other documents
relevant to the transaction, and labelled and attached
them in alphabetical sequence? See section 9.02(2).

Yes No 12. Have you included, rather than merely by reference,
Page ____ 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 9.02(3).

Yes No 13. Have you included the required statement regarding
Page ____ 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 9.02(4).

Yes No 14. Have you included the required statement regarding
Page ____ whether the Service previously ruled on the same or
similar issue for the taxpayer, a related taxpayer, or a
predecessor? See section 9.02(5).

Yes No 15. Have you included the required statement regarding
Page ____ whether the taxpayer, a related taxpayer, a predecessor,
or any representatives previously submitted the same or
similar issue but withdrew it before the letter ruling
was issued? See section 9.02(5).

Yes No 16. Have you included the required statement regarding
Page ____ whether the law in connection with the request is
uncertain and whether the issue is adequately addressed
by relevant authorities? See section 9.02(6).

Yes No 17. Have you included the required statement of relevant
Pages ____ authorities in support of your views? See section
9.02(6).

Yes No N/A 18. Does your request discuss the implications of any
Pages ____ legislation, tax treaties, court decisions,
regulations, notices, revenue rulings, or revenue
procedures you determined to be contrary to the position
advanced? See section 9.02(7), which states that
taxpayers are encouraged to inform the Service of such
authorities.

Yes No N/A 19. If you determined that there are no contrary
Page ____ authorities, have you included a statement to this effect
in your request? See section 9.02(7).

Yes No N/A 20. Have you included in your request a statement
Page ____ identifying any pending legislation that may affect the
proposed transaction? See section 9.02(8).

Yes No 21. Is the request accompanied by the deletions statement
required by section 6110? See section 9.02(9).

Yes No N/A 22. Have you (or your authorized representative) signed
Page ____ and dated the request? See section 9.02(10).

Yes No N/A 23. 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
9.02(12).

Yes No N/A 24. Have you included, signed and dated, the penalties of
Page ____ perjury statement in the form required by section
9.02(13)?

Yes No N/A 25. Have you included the correct user fee with the
request and made your check or money order payable to the
United States Treasury ? See section 9.02(14) and Rev.
Proc. 2002-8, page 252, this Bulletin, for the correct
amount and additional information on user fees.

Yes No N/A 26. Are you submitting your request in duplicate if
necessary? See section 9.02(15).

Yes No N/A 27. 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 9.03(1).

Yes No N/A 28. If you want the original of the ruling to be sent to
a representative, does the power of attorney contain a
statement to that effect? See section 9.03(2).

Yes No N/A 29. 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 9.03(2).

Yes No N/A 30. If you have more than one representative, have you
Page ____ designated whether the second Page representative listed
on the power of attorney is to receive a copy of the
letter ruling? See section 9.03(2).

Yes No N/A 31. If you want your letter ruling request to be
processed ahead of the regular order or by a specific
date, have you requested expedited handling in the form
required by section 9.03(3) and stated a compelling need
for such action in the request?

Yes No N/A 32. If you are requesting that a copy of the letter
Page ____ ruling be issued by facsimile (fax) transmission, have
you included a statement containing a waiver of any
disclosure violations resulting from the fax
transmission? See section 9.03(4).

Yes No N/A 33. If you want to have a conference on the issues
Page ____ involved in the request, have you included a request for
conference in the ruling request? See section 9.03(5).

Yes No N/A 34. If your request is covered by any of the guideline
revenue procedures or other special requirements listed
in section 10 of Rev. Proc. 2002-4, have you complied
with all of the requirements of the applicable revenue
procedure?

Yes No N/A 35. If you are requesting relief under section 7805(b)
Page ____ (regarding retroactive effect), have you complied with
all of the requirements in section 13.09?

Yes No N/A 36. Have you addressed your request to the appropriate
office listed in section 9.04? Improperly addressed
requests may be delayed (sometimes for over a week) in
reaching the appropriate office for initial processing.


____ ____ ____
Signature Title or authority Date

____
Typed or printed name of person signing checklist

<<END RULING>>



 

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