SEC. 5. SMALL CASE

PROCEDURE FOR REQUESTING COMPETENT AUTHORITY ASSISTANCE

.01 General . To facilitate requests for assistance involving small cases, this section provides a special procedure simplifying the form of a request for assistance and, in particular, the amount of information that initially must be submitted. All other requirements of this revenue procedure continue to apply to requests for assistance made pursuant to this section.

.02 Small Case Standards . Eligible taxpayers may file an abbreviated request for competent authority assistance in accordance with this section if the total proposed adjustment involved in the matter is not greater than the following:

related person for the years in issue, including any changes in such relationship to the date of filing the request;

(d) a brief description of the issues for which competent authority assistance is requested, including a brief description of the relevant transactions, activities or other circumstances involved in the issues raised and the basis for the adjustment, if any;

(e) the years and amounts involved with respect to the issues in both U.S. dollars and foreign currency;

(f) if applicable, the district office which has made or is proposing to make the adjustment;

(g) an explanation of the nature of the relief sought or the action requested in the United States or in the treaty country with respect to the issues raised, including a statement as to whether the taxpayer wishes to avail itself of the relief provided under Rev. Proc. 65–17, 1965–1 C.B. 833, as amplified, amended, clarified and modified by Rev. Proc. 65–31, 1965–2 C.B. 1024, Rev. Proc. 65–17 Amendment I, 1966–2 C.B. 1211, Rev. Proc. 65–17 Amendment II, 1974–1 C.B. 411, Rev. Proc. 70–23, 1970–2 C.B. 505, Rev. Proc. 71–35, 1971–2 C.B. 573, Rev. Proc. 72–48, 1972–2 C.B. 829, Rev. Proc. 72–53, 1972–2 C.B. 833, and Rev. Proc. 91–24, 1991–1 C.B. 542, (hereinafter referred to as ‘‘Rev. Proc. 65–17’’), as indicated in section 10 of this revenue procedure;

(h) a statement whether the period of limitations for the years for which relief is sought has expired in the United States or in the treaty country;

(i) a statement whether the request for competent authority assistance involves issues that are currently, or were previously, considered as part of an APA proceeding in the United States or in a similar proceeding in the foreign country;

(j) if applicable, powers of attorney with respect to the taxpayer;

(k) a statement whether the taxpayer is requesting the Simultaneous Appeals procedure as provided in section 8 of this revenue procedure;

(l) an amended return, if required under section 9.02 of this revenue procedure;

(m) on a separate document, a statement that the taxpayer consents to the disclosure to the competent authority of the treaty country (with the name of the treaty country specifically

stated) and the competent authority’s staff of any or all of the items of information set forth or enclosed in the request for U.S. competent authority assistance within the limits contained in the tax treaty under which the taxpayer is seeking relief. This statement must be dated and signed by a person having authority to sign the taxpayer’s federal tax returns and is required to facilitate the administrative handling of the request by the U.S. competent authority for purposes of the record-keeping requirements of § 6103(p) of the Code. Failure to provide such a statement will not prevent the U.S. competent authority from disclosing information under the terms of a treaty. See § 6103(k)(4) of the Code; and

(n) a penalties of perjury statement in the following form: ‘‘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 facts presented in support of the request for competent authority assistance are true, correct and complete.’’ The declaration must be signed by the person or persons on whose behalf the request is being made and not by the taxpayer’s representative. The person signing for a corporate taxpayer must be an authorized officer of the taxpayer who has personal knowledge of the facts. The person signing for a trust, an estate or a partnership must be respectively, a trustee, an executor or a partner who has personal knowledge of the facts.

.06 APAs . Requests for competent authority assistance that involve an APA request must include the information required under Rev. Proc. 91–22, 1991–1 C.B. 526, as well as the applicable information under section 4.05 of this revenue procedure. .07 Other Documentation . In addition, the taxpayer shall, on request, submit any other information or documentation deemed necessary by the U.S. or foreign competent authority for purposes of reaching an agreement. This includes English translations of any documentation required in connection with the competent authority request.

.08 Updates . The taxpayer must keep the U.S. competent authority informed of all material changes in the information or documentation previously submitted as part of, or in connection with, the request for competent authority

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Individual $100,000 Corporation $200,000 Other $200,000

.03 Small Case Filing Procedure . The abbreviated request for competent authority assistance under the small case procedure must be dated and signed by a person having the authority to sign the taxpayer’s federal tax returns. Although other information and documentation may be requested at a later date, the initial request for assistance should include the following information and materials:

Taxpayer

Proposed Adjustment

(a) a statement indicating that this is a matter subject to the small case procedure;

(b) the name, address, U.S. taxpayer identification number and foreign taxpayer identification number (if any) of the taxpayer and if applicable, all related persons involved;

(c) a description of the issue and the nature of the relief sought;

(d) the taxable years and amounts involved with respect to the issues in both U.S. and foreign currency;

(e) the name of the treaty country; (f) an amended return, if required under section 9.02 of this revenue procedure; and

(g) the statements described in section 4.05(m) and (n) of this revenue procedure.