SECTION 15. HOW DOES THE

NATIONAL OFFICE PREPARE THE TECHNICAL ADVICE MEMORANDUM?

Delegates authority to branch chiefs

.02 The key district or appeals office will be given status updates on the technical advice quarterly by the national office branch chief assigned to the request. In addition, a key district director or chief, appeals office, may get current information on the status of the request for technical advice by calling the office of the appropriate branch chief. Those offices and their matters of responsibility are listed below:

Telephone Numbers (Area Code 202) Official (not toll-free)

Chief, Employee Plans Technical Branch 1; 622-6077 Branch 2; 622-8400 Branch 3; 622-8447 Branch 4; 622-8457 Branch 5 622-8165

Chief, Employee Plans Projects Branch 1; 622-7428 Branch 2; 622-7882 Branch 3 622-7389

Chief, Employee Plans Actuarial Branch 1; 622-8330 Branch 2; 622-7529 Branch 3 622-7789

Chief, Exempt Organizations Technical Branch 1; 622-8715 Branch 2; 622-8140 Branch 3; 622-8120 Branch 4; 622-8130 Branch 5 622-6861

See section 15.09 of this revenue procedure about discussing the final conclusions with the key district or appeals office. Further, the key district director or the chief, appeals office will be notified at the time the technical advice memorandum is mailed.

.01 The authority to issue technical advice on issues under the jurisdiction of the Assistant Commissioner (Employee Plans and Exempt Organizations) has largely been delegated to the Chiefs, Employee Plans Technical Branches; Chiefs, Employee Plans Projects Branches; Chiefs, Employee Plans Actuarial Branches; and Chiefs, Exempt Organizations Technical Branches.

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Determines whether request has been properly made

Contacts the key district or appeals office to discuss issues

Determines whether any matters in the request should be referred to another branch

Informs the key district or appeals office if additional information is needed

.02 Requests for technical advice generally are given priority and processed expeditiously. As soon as the request for technical advice is assigned, the technical employee analyzes the file to see whether it meets all requirements of sections 7 through 9 of this revenue procedure.

However, if the request does not comply with the requirements of section 9.05 of this revenue procedure relating to the deletions statement, the Service will follow the procedure in the last paragraph of section 10.05 of this revenue procedure.

.03 Usually, within 21 calendar days after the branch receives the request for technical advice, a representative of the branch telephones the key district or appeals office to discuss the procedural and substantive issues in the request that come within the branch’s jurisdiction.

.04 If the technical advice request concerns matters within the jurisdiction of more than one branch, a representative of the branch that received the original technical advice request generally informs the key district or appeals office within 21 calendar days of receiving the request that—

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

(2) a representative of the other branch or office will contact the key district or appeals office about the referral of the technical advice request within 21 calendar days after receiving it in accordance with section 15.03 above.

.05 The branch representative will inform the key district or appeals office that the case is being returned if substantial additional information is required to resolve an issue. Cases should be returned for additional information when significant unresolved factual variances exist between the statement of facts submitted by the key district or appeals office and the taxpayer. They should also be returned if major procedural problems cannot be resolved by telephone.

If only minor procedural deficiencies exist, the branch will request the additional information in the most expeditious manner without returning the case.

Gives tentative conclusion .06 If all necessary information has been provided, the branch representative discusses with the key district or appeals office his or her tentative conclusion.

If a tentative conclusion has not been reached, gives date estimated for tentative conclusion

Advises the key district or appeals office that preliminary conclusion not final

Advises the key district or appeals office of final conclusions

If additional information is requested

.07 If a tentative conclusion has not been reached because of the complexity of the issue, the branch representative informs the key district or appeals office of the estimated date the tentative conclusion will be made.

.08 Because the branch representative’s tentative conclusion may change during the preparation and review of the technical advice memorandum, the tentative conclusion should not be considered final. Therefore, neither the branch representative nor the key district or appeals office should advise the taxpayer or the taxpayer’s representative of the tentative conclusion before the scheduling of the adverse conference.

.09 In all cases, the branch representative should inform the EP/EO specialist or appeals officer of the national office’s final conclusions. The EP/EO specialist or the appeals officer should be offered the opportunity to discuss the issues and the national office’s final conclusions before the technical advice memorandum is issued.

.10 If, following the initial contact referenced in section 15.03 of this revenue procedure, it is determined, after discussion with the appropriate branch chief or reviewer, that additional information is needed, a branch representative will obtain the additional information from the taxpayer, the key district director, or the chief, appeals office, in the most expeditious manner possible. Any additional information requested from the taxpayer by the national office must be submitted by letter with a penalties of perjury statement within 21 calendar days after the request for information is made.

Penalties of perjury statement Additional information submitted to the national office 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 facts represented are true, correct, and complete.’’ This declaration must be signed and dated by the taxpayer, not the taxpayer’s representative. A stamped signature is not permitted.

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Additional information sent to the national office and copy sent to the key district director or chief, appeals office

Informs the taxpayer when requested deletions will not be made

A written request for an extension of time to submit additional information must be received by the national office within the 21 day period, giving compelling facts and circumstances to justify the proposed extension. The appropriate branch chief (or his or her delegate) will determine whether to grant or deny the request for an extension of the 21-day period. There is no right to appeal the denial of an extension request.

If the national office does not receive the additional information within 21 calendar days, plus any extensions granted by the branch chief (or his or her delegate), the national office will process the technical advice memorandum based on the existing record.

.11 If additional information is requested, it should be sent by the taxpayer to the national office.

Also, the taxpayer must send a copy to either the key district director or the chief, appeals office, for comment. Any comments must be furnished promptly to the appropriate branch in the national office. If the key district director or the chief, appeals office, does not have any comments, he or she must notify the branch representative promptly.

.12 Generally, before replying to the request for technical advice, the national office informs the taxpayer orally or in writing of the material likely to appear in the technical advice memorandum that the taxpayer proposed be deleted but that the Service has determined should not be deleted.

If so informed, the taxpayer may submit within 10 calendar days any further information or other arguments supporting the taxpayer’s proposed deletions.

The Service will attempt to resolve all disagreements about proposed deletions before the national office replies to the request for technical advice. However, the taxpayer does not have the right to a conference to resolve any disagreements about material to be deleted from the text of the technical advice memorandum. These matters, however, may be considered at any conference otherwise scheduled for the request.

Prepares reply in two parts .13 The national office’s reply to a technical advice request is in two parts. Each part identifies the taxpayer by name, address, identification number, and year or years involved.

The first part of the reply is a transmittal memorandum (Form M–6361). In unusual cases, it is a way of giving the key district or appeals office administrative or other information that under the nondisclosure statutes or for other reasons may not be discussed with the taxpayer.

The second part is the technical advice memorandum, which contains—

(1) a statement of the issues;

(2) a statement of the facts pertinent to the issues;

(3) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other precedents published in the Internal Revenue Bulletin, and court decisions;

(4) a discussion of the rationale underlying the conclusions reached by the national office; and

(5) the conclusions of the national office.

The conclusions give direct answers, whenever possible, to the specific issues raised by the key district or appeals office. However, the national office is not bound by the precise statement of the issues as submitted by the taxpayer or by the key district or appeals office and may reframe the issues to be answered in the technical advice memorandum. The discussion of the issues will be in sufficient detail so that the key district or appeals officials will understand the reasoning underlying the conclusion.

Accompanying a technical advice memorandum subject to § 6110, is a notice under § 6110(f)(1) of intention to disclose the technical advice memorandum (including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).

Routes replies to appropriate office

.14 Replies to requests for technical advice are addressed to the key district director or the chief, appeals office. Replies to requests from appeals should be routed to the appropriate appeals office through the National Director of Appeals, C:AP:FS.

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