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
lett