SECTION 16. HOW DOES A KEY

DISTRICT OR AN APPEALS OFFICE USE THE TECHNICAL ADVICE?

Generally applies advice in processing the taxpayer’s case

.01 The key district director or the chief, appeals office, must process the taxpayer’s case on the basis of the conclusions in the technical advice memorandum unless—

(1) the key district director or the chief, appeals office, decides that the conclusions reached by the national office in a technical advice memorandum should be reconsidered, or

(2) the chief, appeals office, in the case of technical advice unfavorable to the taxpayer, decides to settle the issue in the usual manner under existing authority.

In any event, with or without requesting reconsideration, the key district director must follow the conclusions in a technical advice memorandum as to all issues, and the chief, appeals office, must follow the conclusions in a technical advice memorandum on issues of an organization’s/plan’s status or qualification. Thus, if the technical advice memorandum received by a key district director concerns an organization’s/plan’s status or qualification, the organization/plan has no appeal to the appeals office on those specific issues.

Discussion with the taxpayer .02 The national office will not discuss the contents of the technical advice memorandum with the taxpayer or the taxpayer’s representative until the taxpayer has been given a copy by the key district or appeals office.

Gives copy to the taxpayer .03 The key district director or the chief, appeals office, only after adopting the technical advice, gives the taxpayer (1) a copy of the technical advice memorandum described in section 15.13, and (2) the 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)).

This requirement does not apply to technical advice memorandums involving criminal or civil fraud investigations, or jeopardy or termination assessments, as described in section 10.06 of this revenue procedure, or documents to which § 6104 (document open to public inspection) applies as described in section 9.03.

Taxpayer may protest deletions not made

When no copy is given to the taxpayer