SECTION 14. WHAT EFFECT

WILL A DETERMINATION LETTER HAVE?

Has same effect as a letter ruling

Taxpayer may request that retroactive effect of revocation or modification be limited

.01 A determination letter issued by a key district director has the same effect as a letter ruling issued to a taxpayer under section 13 of this revenue procedure.

If a key district director proposes to reach a conclusion contrary to that expressed in a determination letter, he or she need not refer the matter to the national office as is required for a letter ruling found to be in error. However, the key district director must refer the matter to the national office if the key district director desires to have the revocation or modification of the determination letter limited under § 7805(b).

.02 A key district director does not have authority under § 7805(b) to limit the revocation or modification of the determination letter. Therefore, if a key district director proposes to revoke or modify a determination letter, the taxpayer may request limitation of the retroactive effect of the revocation or modification by asking the key district director who issued the determination letter to seek technical advice from the national office. See section 18 of Rev. Proc. 97–5.

Format of request (1) Request for relief under § 7805(b) must be made in required format.

A taxpayer’s request to limit the retroactive effect of the revocation or modification of the determination letter must be in the form of, and meet the general requirements for, a technical advice request. See section 17.06 of Rev. Proc. 97–5. The request must also—

(a) state that it is being made under § 7805(b);

(b) state the relief sought;

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(c) explain the reasons and arguments in support of the relief sought (including a discussion of the five items listed in section 13.05 of this revenue procedure and any other factors as they relate to the taxpayer’s particular situation); and

(d) include any documents bearing on the request.

Request for conference (2) Taxpayer may request a conference on application of § 7805(b).

When technical advice is requested regarding the application of § 7805(b), the taxpayer has the right to a conference in the national office to the same extent as does any taxpayer who is the subject of a technical advice request. See section 10 of Rev. Proc. 97–5.

Exhaustion of administrative remedies