SECTION 1. PURPOSE AND

NATURE OF CHANGES

.01 Purpose This revenue procedure updates Rev. Proc. 96–7, 1996–1 C.B. 559, by providing a list of subject matters under the jurisdiction of the Associate Chief Counsel (International) in which the Internal Revenue Service will not issue advance letter rulings or determination letters. Rev. Proc. 97–3 lists the subject matters under the jurisdiction of the Associate Chief Counsel (Domestic) in which the Service will not issue advance letter rulings or determination letters.

.02 Changes (1) Old sections 3.01(4) and 4.01(23), dealing with § 7701, have been deleted to reflect the new provisions under § 301.7701–1, –2, and –3 of the regulations dealing with partnerships. See T.D. 8697. (2) New section 3.01(4), dealing with the issues of whether, for purposes of § 1503(d), a net operating loss is a dual consolidated loss, or whether the conditions for rebutting the presumption of a triggering event are satisfied, has been added to reflect the Service’s view that the stated issues require inherently factual determinations that are not the proper subject of advance letter rulings and determination letters.

(3) New section 4.01(17), dealing with the issue of what constitutes a substantial new line of business for purposes of § 936(j)(9)(B), has been added to reflect the Service’s view that such determinations should not be made on a case by case basis until the Service issues regulations or a revenue ruling reflecting its position regarding what constitutes a new line of business for purpose of this new Code section.

(4) New section 4.01(22), dealing with the issue of whether an event

presumptively constitutes a triggering event for purposes of § 1.1503– 2(g)(2)(iii), has been added to reflect the Service’s view that the stated issues require fact and circumstance determinations that are not the proper subject of advance letter rulings and determination letters.