SECTION 1. SUMMARY

Early referral procedures were published in Rev. Proc. 96–9, 1996–2 I.R.B. 15. This Announcement applies the provisions of the revenue procedure to employment tax issues, as described below, on a one-year test basis.

Taxpayers whose returns are being examined can request early referral of one or more employment tax issue(s) from district compliance functions (‘‘the District’’) to Appeals. Early referral of the employment tax issue(s) does not alter the District Director’s authority to audit the returns of a taxpayer nor limit or expand the District Director’s authority to resolve any issues, including the authority in Delegation Order No. 236, 1991–1 C.B. 313. These procedures are effective for requests for early referral made during the one-year test period beginning on March 18, 1996, the date this announcement is published in the Internal Revenue Bulletin.