SECTION 9. WHAT OTHER

CHECKLISTS, GUIDELINE REVENUE PROCEDURES, SAFE HARBOR REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES AND NOTICES APPLY TO CERTAIN REQUESTS?

(2) Taxpayer must notify national office if return is filed and must attach request to return. If the taxpayer files a return before a letter ruling is received from the national office concerning the issue, the taxpayer must notify the national office that the return has been filed. The taxpayer must also attach a copy of the letter ruling request to the return to alert the district office and thereby avoid premature district action on the issue.

This section 8.04 also applies to pending requests for a closing agreement on a transaction for which a letter ruling is not requested or issued, and for an advance pricing agreement.

.05

A taxpayer who receives a letter ruling before filing a return about any transaction that is relevant to the return being filed must attach a copy of the letter ruling to the return when it is filed.

.06

The taxpayer or the taxpayer’s authorized representative may obtain information regarding the status of a request by calling the person whose name and telephone number are shown on the acknowledgement of receipt of the request or the appropriate branch representative who contacts the taxpayer as explained in section 10.02 of this revenue procedure.

.07

(1) In general. A taxpayer may withdraw a request for a letter ruling or determination letter at any time before the letter ruling or determination letter is signed by the Service. Correspondence and exhibits related to a request that is withdrawn or related to a letter ruling request for which the national office declines to issue a letter ruling will not be returned to the taxpayer. See section 8.01(2) of this revenue procedure. In appropriate cases, the Service may publish its conclusions in a revenue ruling or revenue procedure.

(2) Notification of district director. If a taxpayer withdraws a request for a letter ruling or if the national office declines to issue a letter ruling, the national office generally will notify the appropriate district director and may give its views on the issues in the request to the appropriate district director to consider in any later examination of the return. This section 8.07(2) generally does not apply if the taxpayer withdraws a letter ruling request (other than a request for a change in accounting method) and submits a written statement that the transaction has been, or is being, abandoned and if the national office has not formed an adverse opinion.

(3) Refunds of user fee. The user fee will not be returned for a letter ruling request that is withdrawn. If the national office declines to issue a letter ruling on all of the issues in the request, the user fee will be returned. If the national office, however, issues a letter ruling on some, but not all, of the issues, the user fee will not be returned. See section 15.10 of this revenue procedure for additional information regarding refunds of user fees.

.08

The taxpayer’s authorized representative, whether or not enrolled, must comply with Treasury Department Circular No. 230, which provides the rules for practice before the Service. In those situations when the national office believes that the taxpayer’s representative is not in compliance with Circular No. 230, the national office will bring the matter to the attention of the Director of Practice.

For the requirement regarding compliance with the conference and practice requirements, see section 8.01(12) of this revenue procedure.

Specific revenue procedures and notices supplement the general instructions for requests explained in section 8 of this revenue procedure and apply to requests for letter rulings or determination letters regarding the Code sections and matters listed in this section.

33 Sec. 9

Checklists and guideline revenue procedures and notices

.01 For requests relating to the following Code sections and subject matters, see the following checklists and guideline revenue procedures and notices.

CODE OR REGULATION SECTION REVENUE PROCEDURE AND NOTICE

103, 141–150, 7478, and 7871 Issuance of state or local obligations

1.166–2(d)(3) Uniform express determination letter for making election

Subchapter C—Corporate Distributions and Adjustments

301 Nonapplicability on sales of stock of employer to defined contribution plan

302, 311 Checklist questionnaire

302(b)(4) Checklist questionnaire

331 Checklist questionnaire

332 Checklist questionnaire

351 Checklist questionnaire

355 Checklist questionnaire

368(a)(1)(E) Checklist questionnaire

482 Advance pricing agreements

521 Appeal procedure with regard to adverse determination letters and revocation or modification of exemption letter rulings and determination letters

1.817–5(a)(2) Issuer of a variable contract requesting relief

Rev. Proc. 96–16, 1996–1 C.B. 630 (for a reviewable ruling under § 7478 and a nonreviewable ruling); Rev. Proc. 88–31, 1988–1 C.B. 832 (for approval of areas of chronic economic distress); and Rev. Proc. 82–26, 1982–1 C.B. 476 (for ‘‘on behalf of’’ and similar issuers). For approval of areas of chronic economic distress, Rev. Proc. 88–31 explains how this approval must be submitted to the Assistant Secretary for Housing/Federal Housing Commissioner of the Department of Housing and Urban Development.

Rev. Proc. 92–84, 1992–2 C.B. 489.

Rev. Proc. 77–37, 1977–2 C.B. 568, as modified by Rev. Proc. 89–30, 1989–1 C.B. 895, and as amplified by Rev. Proc. 77–41, 1977–2 C.B. 574, Rev. Proc. 83–81, 1983–2 C.B. 598 ( see also Rev. Proc. 97–3), Rev. Proc. 84–42, 1984–1 C.B. 521 (superseded as to no-rule areas by Rev. Proc. 85–22, 1985–1 C.B. 550), Rev. Proc. 86–42, 1986–2 C.B. 722, and Rev. Proc. 89–50, 1989–2 C.B. 631. But see Rev. Proc. 97–3, section 3.01(23) (certain combining reorganizations under § 368), section 3.01(24) (mergers or consolidations under § 368(a)(1)(A)), section 3.01(25) (stock acquisitions under § 368(a)(1)(B)), and section 3.01(28) (corporate changes under § 368(a)(1)(F)), which describe certain corporate reorganizations where the Service will not issue advance letter rulings or determination letters.

Rev. Proc. 87–22, 1987–1 C.B. 718.

Rev. Proc. 86–18, 1986–1 C.B. 551; and Rev. Proc. 77–41, 1977–2 C.B. 574.

Rev. Proc. 81–42, 1981–2 C.B. 611.

Rev. Proc. 86–16, 1986–1 C.B. 546.

Rev. Proc. 90–52, 1990–2 C.B. 626.

Rev. Proc. 83–59, 1983–2 C.B. 575. But see section 3.01(22) of Rev. Proc. 97–3, which describes certain transfers to controlled corporations where the Service will not issue advance letter rulings or determination letters.

Rev. Proc. 96–30, 1996–1 C.B. 696.

Rev. Proc. 81–60, 1981–2 C.B. 680. But see section 3.01(27) of Rev. Proc. 97–3, which describes circumstances under which the Service will not issue advance letter rulings or determination letters as to whether a transaction constitutes a corporate recapitalization within the meaning of § 368(a)(1)(E) (or a transaction that also qualifies under § 1036).

Rev. Proc. 96–53, 1996–49 I.R.B. 9.

Rev. Proc. 90–27, 1990–1 C.B. 514.

Rev. Proc. 92–25, 1992–1 C.B. 741.

Sec. 9.01 34

1.1502–76(a)(1) Consent to file a consolidated return where member(s) of the affiliated group use a 52–53 week taxable year

1504(a)(3)(A) and (B) Waiver of application of § 1504(a)(3)(A) for certain corporations

1552 Consent to elect or change method of allocating affiliated group’s consolidated federal income tax liability

Rev. Proc. 89–56, 1989–2 C.B. 643.

Rev. Proc. 91–71, 1991–2 C.B. 900.

Rev. Proc. 90–39, 1990–2 C.B. 365, as clarified by Rev. Proc. 90–39A, 1990–2 C.B. 367.

4980B Rev. Proc. 87–28, 1987–1 C.B. 770 (treating references to former § 162(k) as if they were references to § 4980B).

SUBJECT MATTERS REVENUE PROCEDURE

Accounting methods Rev. Proc. 92–20, 1992–1 C.B. 685, as modified by Rev. Proc. 97–1 (this revenue procedure), and T.D. 8680, 1996–33 I.R.B. 5; and Rev. Proc. 97–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(2), 3.01(3), 3.01(4), 5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(7), 8.01(8), 8.01(11), 8.01(12), 8.01(13), 8.01(14), 8.02(2), 8.02(4), 8.02(5)(a), 8.02(6), 8.02(7), 8.03(1), 8.04, 8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 10.10(2), 10.11, 11, 12, 15, and Appendix A are applicable.

Accounting periods; adopt, retain or change for partnership, S corporation, and personal service corporation

Accounting periods; changes in period

Rev. Proc. 87–32, 1987–2 C.B. 396, as modified by T.D. 8680, 1996–33 I.R.B. 5; and Rev. Proc. 97–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(3), 5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(7), 8.01(8), 8.01(11), 8.01(12), 8.01(13), 8.01(14), 8.02(2), 8.02(4), 8.02(5)(a), 8.02(6), 8.03(1) (only for Forms 1128 filed under section 6.01 of Rev. Proc. 87–32), 8.04, 8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 11, 12, 15, and Appendix A are applicable.

Rev. Proc. 92–13, 1992–1 C.B. 665, as modified and amplified by Rev. Proc. 92–13A, 1992–1 C.B. 668, and as modified by Rev. Proc. 94–12, 1994–1 C.B. 565; and Rev. Proc. 97–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01(3), 5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(7), 8.01(8), 8.01(11), 8.01(12), 8.01(13), 8.01(14), 8.02(2), 8.02(4), 8.02(5)(a), 8.02(6), 8.03(1), 8.04, 8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 11, 12, 15, and Appendix A are applicable.

Classification of liquidating trusts Rev. Proc. 82–58, 1982–2 C.B. 847, as modified and amplified by Rev. Proc. 94–45, 1994–2 C.B. 684, and as amplified by Rev. Proc. 91–15, 1991–1 C.B. 484 (checklist questionnaire), as modified and amplified by Rev. Proc. 94–45.

Earnings and profits determinations

Estate, gift, and generation-skipping transfer tax issues

Deferred intercompany transactions; election not to defer gain or loss

Rev. Proc. 75–17, 1975–1 C.B. 677; and Rev. Proc. 97–1 (this revenue procedure) for which sections 2.06, 3.01(3), 8, 10.04, 10.06, and 11.05 are applicable.

Rev. Proc. 91–14, 1991–1 C.B. 482 (checklist questionnaire).

Rev. Proc. 82–36, 1982–1 C.B. 490.

Leveraged leasing Rev. Proc. 75–21, 1975–1 C.B. 715, as modified by Rev. Proc. 76–30, 1976–2 C.B. 647, Rev. Proc. 79–48, 1979–2 C.B. 529, and Rev. Proc. 81–71, 1981–2 C.B. 731; and Rev. Proc. 75–28, 1975–1 C.B. 752, as modified by Rev. Proc. 79–48 and Rev. Proc. 81–71.

Rate orders; regulatory agency; normalization

A letter ruling request that involves a question of whether a rate order that is proposed or issued by a regulatory agency will meet the normalization requirements of § 168(f)(2) (pre-tax Reform Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will not be considered unless the taxpayer states in the letter ruling request whether—

35 Sec. 9.01

(1) the regulatory authority responsible for establishing or approving the taxpayer’s rates has reviewed the request and believes that the request is adequate and complete; and

(2) the taxpayer will permit the regulatory authority to participate in any national office conference concerning the request.

If the taxpayer or the regulatory authority informs a consumer advocate of the request for a letter ruling and the advocate wishes to communicate with the Service regarding the request, any such communication should be sent to: Internal Revenue Service, Associate Chief Counsel (Domestic), Attention CC:DOM:CORP:T, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. These communications will be treated as third party contacts for purposes of § 6110.

Unfunded deferred compensation Rev. Proc. 71–19, 1971–1 C.B. 698, as amplified by Rev. Proc. 92–65, 1992–2 C.B. 428. See Rev. Proc. 92–64, 1992–2 C.B. 422, for the model trust for use in Rabbi Trust Arrangements.

Safe harbor revenue procedures .02 For requests relating to the following Code sections and subject matters, see the following safe harbor revenue procedures.

CODE OR REGULATION SECTION

103 and 141–150 Issuance of state or local obligations

280B Certain structural modifications to a building not treated as a demolition

355(a)(1)(B) Transaction not violating the device test

584(a) Qualification of a proposed common trust fund plan

642(c)(5) Qualification of trusts as pooled income funds

664(d)(1) Qualification of trusts as charitable remainder annuity trusts

664(d)(2) Qualification of trusts as charitable remainder unitrusts

664(d)(2) and (3) Qualification of trusts as charitable remainder unitrusts

1286 Determination of reasonable compensation under mortgage service contracts

1362(f) Automatic inadvertent termination relief to certain corporations

20.2056A–2(d)(1)(i) and (d)(1)(ii) Sample trust language

REVENUE PROCEDURE

Rev. Proc. 93–17, 1993–1 C.B. 507 (changes of use of proceeds); and Rev. Proc. 93–19, 1993–1 C.B. 526 (management contracts).

Rev. Proc. 95–27, 1995–1 C.B. 704.

Section 4.05(1)(b) of Rev. Proc. 96–30, 1996–1 C.B. at .

Rev. Proc. 92–51, 1992–1 C.B. 988.

Rev. Proc. 88–53, 1988–2 C.B. 712.

Rev. Proc. 89–21, 1989–1 C.B. 842, as amplified by Rev. Proc. 90–32, 1990–1 C.B. 546.

Rev. Proc. 89–20, 1989–1 C.B. 841, as amplified by Rev. Proc. 90–30, 1990–1 C.B. 534.

Rev. Proc. 90–31, 1990–1 C.B. 539.

Rev. Proc. 91–50, 1991–2 C.B. 778.

Rev. Proc. 94–23, 1994–1 C.B. 609.

Rev. Proc. 96–54, 1996–50 I.R.B. 9.

Sec. 9.01 36

1.7704–2(d) New business activity of existing partnership is closely related to pre-existing business

Rev. Proc. 92–101, 1992–2 C.B. 579.

SUBJECT MATTERS REVENUE PROCEDURE

Certain rent-to-own contracts treated as leases

Automatic change revenue procedures and notices

Rev. Proc. 95–38, 1995–2 C.B. 397.

.03 For requests to change an accounting period or accounting method, see the following automatic change revenue procedures and notices published and in effect as of December 31, 1996. A taxpayer complying timely with an automatic change revenue procedure or notice will be deemed to have obtained the consent of the Commissioner to change the taxpayer’s accounting period or accounting method, as applicable.

CODE SECTION REVENUE PROCEDURE

442 Changes in accounting periods

446 Changes in accounting methods

The automatic change revenue procedures for obtaining a change in annual accounting period include: Rev. Proc. 92–13, 1992–1 C.B. 665, as modified by Rev. Proc. 94–12, 1994–1 C.B. 565, and as modified and amplified by Rev. Proc. 92–13A, 1992–1 C.B. 668 (certain corporations that have not changed their accounting period within the prior 6 calendar years or other specified time); Rev. Proc. 87–32, 1987–2 C.B. 396, as modified by T.D. 8680, 1996–33 I.R.B. 5 (partnership, S corporation, or personal service corporation seeking a natural business year or an ownership taxable year); Rev. Proc. 68–41, 1968–2 C.B. 943, as modified by Rev. Proc. 81–40, 1981–2 C.B. 604 (trusts held by certain fiduciaries needing a workload spread); and Rev. Proc. 66–50, 1966–2 C.B. 1260, as modified by Rev. Proc. 81–40 (individual seeking a calendar year).

The automatic change revenue procedures and notices for obtaining a change in method of accounting include: Rev. Proc. 96–31, 1996–1 C.B. 714 (certain taxpayers seeking to change depreciation or amortization for certain depreciable or amortizable property); Notice 95–57, 1995–2 C.B. 337 (cash method banks in the Eighth Circuit seeking to change to the cash method of accounting for stated interest on short-term loans made in the ordinary course of business); Rev. Proc. 95–33, 1995–2 C.B. 380 (certain small resellers, formerly small resellers, or reseller-producers seeking to change their method of accounting for costs subject to § 263A); Rev. Proc. 95–25, 1995–1 C.B. 701 (certain taxpayers seeking to elect a historic absorption ratio under § 263A for their first, second, or third taxable year beginning on or after January 1, 1994); Rev. Proc. 95–19, 1995–1 C.B. 664 (taxpayers seeking to change certain methods of accounting for interest costs subject to § 263A(f) for their first or second taxable year beginning on or after January 1, 1994); Rev. Proc. 94–29, 1994–1 C.B. 616 (certain taxpayers seeking to change to the principal-reduction method for loans acquired on or after a certain cut-off date); Rev. Proc. 93–13, 1993–1 C.B. 482 (certain taxpayers required to change method for deducting amounts owed to related foreign persons in order to comply with § 267(a)(3)); Rev. Proc. 92–98, 1992–2 C.B. 512 (certain accrual method taxpayers selling multi-year service warranty contracts seeking to elect the service warranty income method); Rev. Proc. 92–75, 1992–2 C.B. 448 (certain taxpayers, other than those required to use inventories, seeking to change to an accrual method); Rev. Proc. 92–74, 1992–2 C.B. 442 (certain taxpayers, required to use inventories, seeking to change to an accrual method); Rev. Proc. 92–67, 1992–2 C.B. 429 (certain taxpayers with one or more market discount bonds seeking to make a constant interest rate election or revoke an election under § 1278(b)); Rev. Proc. 92–29, 1992–1 C.B. 748 (certain taxpayers seeking to use an alternative method under § 461(h) for the inclusion of common improvement costs in basis); Rev. Proc. 91–51, 1991–2 C.B. 779 (certain taxpayers that sell mortgages and retain rights to service the mortgages); Rev. Proc. 91–49, 1991–2 C.B. 777 (holders of certain mortgages that are stripped bonds); Rev. Proc. 91–31, 1991–1 C.B. 566 (certain utilities holding customer deposits); Rev. Proc. 90–63, 1990–2 C.B. 664 (certain taxpayers changing their accounting treatment of package design costs); Rev. Proc. 90–37, 1990–2 C.B. 361 (certain taxpayers with interest income from short-term loans); Rev. Proc. 89–46, 1989–2 C.B. 597 (cash basis taxpayers with certain United States savings bonds); Rev. Proc. 88–15, 1988–1 C.B. 683 (certain taxpayers seeking to discontinue LIFO inventory method); Rev. Proc. 85–8, 1985–1 C.B. 495 (certain taxpayers seeking to change from specific charge-off method to reserve method for bad debts); Rev. Proc. 84–76, 1984–2 C.B. 751 (taxpayers seeking to treat prepaid subscription income under the provisions of § 455); Rev. Proc. 84–30, 1984–1 C.B. 482 (taxpayers who used the Rule of

37 Sec. 9.03