SECTION 7. UNDER WHAT

CIRCUMSTANCES DO KEY DISTRICT DIRECTORS ISSUE DETERMINATION LETTERS?

Circumstances under which determination letters are issued by the key district director

If a return dealing with an issue for a particular year is filed while a request for a ruling on that issue is pending, the national office will issue the ruling unless it is notified by the taxpayer that an examination of that issue or the identical issue on an earlier year’s return has been started by a key district director. See section 9.05. However, even if an examination has begun, the national office ordinarily will issue the letter ruling if the key district director agrees, by memorandum, to permit the ruling to be issued.

.07 The national office does not issue letter rulings to business, trade, or industrial associations or to similar groups concerning the application of the tax laws to members of the group. But groups and associations may submit suggestions of generic issues that would be appropriately addressed in revenue rulings. See Rev. Proc. 89–14, which states objectives of, and standards for, the publication of revenue rulings and revenue procedures in the Internal Revenue Bulletin.

The national office, however, may issue letter rulings to groups or associations on their own tax status or liability if the request meets the requirements of this revenue procedure.

.08 The national office does not issue letter rulings to foreign governments or their political subdivisions about the U.S. tax effects of their laws. However, the national office may issue letter rulings to foreign governments or their political subdivisions on their own tax status or liability under U.S. law if the request meets the requirements of this revenue procedure.

.09 The national office does not issue letter rulings on a matter involving the federal tax consequences of any proposed federal, state, local, municipal, or foreign legislation. The national office, however, may provide general information in response to an inquiry.

.01 Key district directors issue determination letters only if the question presented is specifically answered by a statute, tax treaty, or regulation, or by a conclusion stated in a revenue ruling, opinion, or court decision published in the Internal Revenue Bulletin.

In general .02 In employee plans and exempt organizations matters, key district directors issue determination letters in response to taxpayers’ written requests on completed transactions that affect returns over which they have examination jurisdiction. However, see section 13.08 of this revenue procedure. A determination letter usually is not issued for a question concerning a return to be filed by the taxpayer if the same question is involved in a return under examination.

In situations involving continuing transactions, such as whether an ongoing activity is an unrelated trade or business, the national office would issue a ruling covering future tax periods and periods for which a return had not yet been filed.

Key district directors do not issue determination letters on the tax consequences of proposed transactions, except as provided in sections 7.03 and 7.04 below.

In employee plans matters .03 In employee plans matters, key district directors issue determination letters on the qualified status of employee plans under §§ 401, 403(a), 409 and 4975(e)(7), and the exempt status of any related trust under § 501. See Rev. Proc. 97–6, this Bulletin, Rev. Proc. 93–10, Rev. Proc. 93–12, and Rev. Proc. 93–39 (as superseded in part by section 23.01 of Rev. Proc. 96–6).

In exempt organizations matters

.04 In exempt organizations matters, the key district directors issue determination letters involving:

(1) Qualification for exempt status of organizations described in §§ 501 and 521 to the extent provided in Rev. Proc. 90–27, 1990–1 C.B. 514, as modified by Rev. Proc. 97–8;

(2) Classification of private foundation status as provided in Rev. Proc. 76–34, 1976–2 C.B. 656;

(3) Recognition of unusual grants to certain organizations under §§ 170(b)(1)(A)(vi) and 509(a)(2);

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Circumstances under which determination letters are not issued by the key district director

Requests involving returns already filed

Attach a copy of determination letter to taxpayer’s return

Review of determination letters