SECTION 8. UNDER WHAT

CIRCUMSTANCES DOES THE SERVICE HAVE DISCRETION TO ISSUE LETTER RULINGS AND DETERMINATION LETTERS?

Ordinarily not in certain areas because of factual nature of the problem

(4) Requests for relief under § 301.9100–1T of the temporary Procedure and Administration Regulations in connection with applications for recognition of exemption;

(5) Advance approval under § 4945 of organizations’ grant making procedures whose determination letter requests or applications disclose (or who have otherwise properly disclosed) a grant program or plans to conduct such a program. If questions arise regarding grant-making procedures that cannot be resolved on the basis of law, regulations, a clearly applicable revenue ruling, or other published precedent, the key district director will forward the matter to the national office for technical advice;

(6) Whether certain organizations are excepted from filing annual information returns under § 6033 as provided in Rev. Procs. 83–23, 1983–1 C.B. 687, 86–23, 1986–1 C.B. 564, and 95–48, 1995–2 C.B. 418; and

(7) Whether certain organizations qualify as exempt operating foundations described in § 4940(d).

.05 A key district director will not issue a determination letter in response to any request if—

(1) it appears that the taxpayer has directed a similar inquiry to the national office;

(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case in litigation or before an appeals office;

(3) the determination letter is requested by an industry, trade association, or similar group on behalf of individual taxpayers within the group (other than subordinate organizations covered by a group exemption letter); or

(4) the request involves an industry-wide problem.

Under no circumstances will a key district director issue a determination letter unless it is clearly shown that the request concerns a return that has been filed or is required to be filed and over which the key district director has, or will have, examination jurisdiction.

.06 A request received by a key district director on a question concerning a return that is under examination, will be, in general, considered in connection with the examination of the return. If a response is made to the request before the return is examined, it will be considered a tentative finding in any later examination of that return.

.07 A taxpayer who, before filing a return, receives a determination letter about any transaction that has been consummated and that is relevant to the return being filed should attach a copy of the determination letter to the return when it is filed.

.08 Determination letters issued under sections 7.02 through 7.04 of this revenue procedure are not reviewed by the national office before they are issued. If a taxpayer believes that a determination letter of this type is in error, the taxpayer may ask the key district director to reconsider the matter or to request technical advice from the national office as explained in Rev. Proc. 97–5, this Bulletin.

(1) In employee plans matters, the procedures for review of determination letters relating to the qualification of employee plans involving §§ 401 and 403(a) of the Code are provided in Rev. Proc. 97–6, 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).

(2) In exempt organizations matters, the procedures for the review of determination letters relating to the exemption from federal income tax of certain organizations under §§ 501 and 521 of the Code are provided in Rev. Proc. 90–27, as modified by Rev. Proc. 97–8.

.01 The Service ordinarily will not issue a letter ruling or determination letter in certain areas because of the factual nature of the problem involved or because of other reasons. The Service may decline to issue a letter ruling or a determination letter when appropriate in the interest of sound tax administration or on other grounds whenever warranted by the facts or circumstances of a particular case.

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Not on alternative plans or hypothetical situations

Ordinarily not on part of an integrated transaction

Not on partial terminations of employee plans

Instead of issuing a letter ruling or determination letter, the national office or a key district director may, when it is considered appropriate and in the best interests of the Service, issue an information letter calling attention to well-established principles of tax law.

.02 A letter ruling or a determination letter will not be issued on alternative plans of proposed transactions or on hypothetical situations.

.03 The national office ordinarily will not issue a letter ruling on only part of an integrated transaction. If, however, a part of a transaction falls under a no-rule area, a letter ruling on other parts of the transaction may be issued. Before preparing the letter ruling request, a taxpayer should call the branch having jurisdiction for the matters on which the taxpayer is seeking a letter ruling to discuss whether the national office will issue a letter ruling on part of the transaction.

.04 The national office will not issue a letter ruling on the partial termination of an employee plan. Determinations involving the partial termination of an employee plan are within the jurisdiction of the appropriate key district office.

Law requires ruling letter .05 The national office will issue rulings on prospective or future transactions if the law or regulations require a determination of the effect of a proposed transaction for tax purposes.

Issues under consideration by PBGC or DOL

.06 A letter ruling or determination letter relating to an issue that is being considered by the Pension Benefit Guaranty Corporation (PBGC) or the Department of Labor (DOL), and involves the same taxpayer, shall be issued at the discretion of the Service.

Cafeteria plans .07 The Service does not issue letter rulings or determination letters on whether a cafeteria plan satisfies the requirements of § 125 of the Code. See also Rev. Proc. 97–3, also in this Bulletin, for areas under the jurisdiction of the Associate Chief Counsel (Domestic) involving cafeteria plans in which advance rulings or determination letters will not be issued.

Determination letters .08 See section 3.02 of Rev. Proc. 97–6 for employee plans matters on which determination letters will not be issued.

Domicile in a foreign jurisdiction