SECTION 16. HOW DOES A

KEY DISTRICT OR AN APPEALS OFFICE USE THE TECHNICAL ADVICE?

Generally applies advice in processing the taxpayer’s case

The first part of the reply is a transmittal memorandum. 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)).

.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.

.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.

Subject to a request for reconsideration of the conclusions in a technical advice memorandum, 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.

148

Taxpayer may protest deletions not made

When no copy is given to the taxpayer