SECTION 9. PAPERWORK — Internal Revenue Bulletin 1997-5

REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1528.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collections of information in this revenue procedure are in section 5 of this revenue procedure. This information

Under section 7121 of the Internal Revenue Code (the ‘‘Code’’), (the ‘‘Issuer’’) and the Commissioner of Internal Revenue (the ‘‘Commissioner’’ or ‘‘IRS’’) make this closing agreement (the ‘‘Agreement’’).

WHEREAS, the parties have determined the following facts and made the following legal conclusions and representations:

A. This Agreement is in settlement of issues raised in a request for a closing agreement under Rev. Proc. 97–15, 1997–5 I.R.B. 21, pertaining to the (the ‘‘Bonds’’) issued on (the ‘‘Issue Date’’).

is required by the Service to verify compliance with §§ 57, 103, 141, 142, 144, 145, and 147 of the 1986 Code, as applicable. This information will be used by the Service to enter into a closing agreement with the issuer and to establish the closing agreement amount. The collections of information are required to obtain a benefit. The likely respondents are state or local governments.

The estimated total annual reporting and/or recordkeeping burden is 75 hours.

The estimated annual burden per respondent/recordkeeper varies from 1 hour to 3 hours, depending on individual circumstances, with an estimated average of 1.5 hours. The estimated number of respondents and/or recordkeepers is 50. The estimated annual frequency of responses (used for reporting requirements only) is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

DRAFTING INFORMATION

The principal author of this revenue procedure is Loretta J. Finger of the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue procedure contact Loretta J. Finger on (202) 622–3980 (not a toll-free call).

CLOSING AGREEMENT ON FINAL

DETERMINATION COVERING SPECIFIC MATTERS RELATING TO A SUBSEQUENT ACTION RELATING

TO USE OF PROCEEDS

B. This Agreement is not based upon an examination of the Bonds by the IRS and does not preclude or impede an examination of the Issuer, any holders of the Bonds, or the Bonds by the IRS with respect to matters not addressed in this Agreement.

C. The IRS has not formally asserted any claims against the Issuer, or sought to tax any holders of the Bonds on interest income on the Bonds.

D. The terms of this Agreement were arrived at pursuant to Rev. Proc. 97–15 and may differ from the terms of settlement of bond issues examined or to be examined by the IRS.

E. This Agreement is for the benefit of the past, present and future registered and beneficial owners of the Bonds during the period covered by this Agreement (collectively, the ‘‘Bondholders’’).

F. [In the case of a closing agreement entered into under section 3.01(1) of Rev. Proc. 97–15, provide as follows: The first date on which the Bonds may be redeemed, under the terms of the bond documents for the Bonds after the date of this Agreement, is (the ‘‘Next Redemption Date’’).]

[Insert additional premises on which this Agreement is based, including a description of the subsequent action causing the Bonds to fail to meet a requirement of the Code relating to use of proceeds. Specifically identify that requirement of the Code.]

NOW IT IS HEREBY DETERMINED AND AGREED PURSUANT TO THIS AGREEMENT EXECUTED BY THE PARTIES HERETO UNDER SECTION 7121 OF THE CODE THAT FOR FEDERAL INCOME TAX PURPOSES:

The Issuer shall pay [the amount computed under section 6 of Rev. Proc. 97–15] to the IRS upon the Issuer’s execution of this Agreement. Payment of this amount shall not be made from proceeds of bonds described in section 103(a) of the Code. Payments of this amount shall be made by certified check payable to the ‘‘Internal Revenue Service.’’ Payment must be sent, simultaneously with this Agreement executed by the Issuer, to Internal Revenue Service, Attention: CP:E:EO, 1111 Constitution Avenue, N.W., Washington, D.C.
[In the case of a closing agreement entered into under section 3.01(1) of Rev. Proc. 97–15, provide as follows: The Bondholders are not required to include in their gross incomes any interest accrued on the Bonds from the Issue Date to the Next Redemption Date be

cause of the violations set forth herein.]

[In the case of a closing agreement entered into under section 3.01(2) of Rev. Proc. 97–15, provide as follows: The Bondholders are not required to treat interest accrued on the Bonds from

[the date of the subsequent action] to [a specified date] as an item of tax preference for purposes of the alternative minimum tax, because of the violations set forth herein.]

[In the case of a closing agreement entered into under section 3.01(1) of Rev. Proc. 97–15, provide as follows: Within 30 days after the date this Agreement is executed by the IRS, the Issuer must notify all Bondholders in writing that the Bonds will be redeemed on the Next Redemption Date and that, in the event that the Issuer fails to redeem the Bonds, the Bonds will be treated as private activity bonds that are not qualified bonds after the Next Redemption Date.]
[In the case of a closing agreement entered into under section 3.01(1) of Rev. Proc. 97–15, provide as follows: The Issuer is required to redeem the Bonds on the Next Redemption Date. Further, the Issuer may not redeem the Bonds from proceeds of bonds described in section 103(a) of the Code.]
Notwithstanding anything to the contrary contained herein, the IRS may take any appropriate action with respect to the Bonds, including taxing the Bondholders on interest earned on the Bonds, for violations other than those set forth herein or for violations arising after the effective date of this Agreement.
This Agreement is executed with respect to a federal income tax liability of the Bondholders.
No income shall be recognized by any Bondholder as a result of this Agreement or any payments made pursuant to this Agreement.
No party shall endeavor by litigation or other means to attack the validity of this Agreement.
This Agreement may not be cited or relied upon by any person or entity whatsoever as precedent in the disposition of any other case.
[In the case of a closing agreement entered into under section 3.01(1) of Rev. Proc. 97–15, provide as follows: The Issuer shall execute, upon the Issuer’s execution of this Agreement, a consent meeting the requirements of section 6103(c) of the Code permitting the disclosure to the general public of information concerning this Agreement. The consent will permit such disclosures

only in the event the Issuer fails to redeem the Bonds in accordance with the terms of this Agreement.]

[In the case of a closing agreement entered into under section 3.01(1) of Rev. Proc. 97–15, provide as follows: In the event that the Bonds are retired prior to the Next Redemption Date, no amount paid by the Issuer under paragraph 1 of this Agreement may be refunded.] [In the case of a closing agreement entered into under section 3.01(2) of Rev. Proc. 97–15, provide as follows: In the event that the Bonds are retired prior to [the date specified in paragraph 2 of this Agreement], no amount paid by the Issuer under paragraph 1 of this Agreement may be refunded.]
This Agreement is final and conclusive except that—

a. The matter it relates to may be reopened in the event of fraud, malfeasance, or misrepresentation of a material fact;

b. It is subject to the sections of the Code that expressly provide that effect be given to their provisions (including any stated exception for section 7122 of the Code) notwithstanding any other law or rule of law; and

c. It is subject to any law, enacted after the date of this Agreement, that applies to a tax period ending after the date of this Agreement covered by this Agreement.

By signing, the above parties certify that they have read and agreed to the terms of this Agreement.

ISSUER TIN: By: Date:

[Name] Title:

COMMISSIONER OF INTERNAL REVENUE By: Date:

[Name] Title:

CONSENT TO DISCLOSE TAX

INFORMATION

I [we] hereby authorize the Internal Revenue Service (‘‘IRS’’) to make public any returns and return information (as those terms are defined in section 6103(b) of the Internal Revenue Code) of [INSERT NAME OF ISSUER] (‘‘the Issuer’’) relating to the Closing Agreement (‘‘Agreement’’) dated [INSERT DATE] between the Issuer, [INSERT NAME OF ANY OTHER PARTY

SIGNING THE AGREEMENT] and the Commissioner of Internal Revenue, concerning [INSERT NAME OF BOND ISSUE]. The above described information may be disclosed by the IRS to members of Congress, the press, or the general public. Such disclosures may be made only in the event the Issuer fails to redeem the Bonds in accordance with the terms of the Agreement.

I [we] am [are] aware that without this authorization the returns and return information of [INSERT NAME OF ISSUER] are confidential and are protected by law under the Internal Revenue Code.

I [we] hereby certify that I [we] have the authority to execute this consent to disclose on behalf of the Issuer.

NAME OF ISSUER: EMPLOYER IDENTIFICATION NUMBER: ISSUER’S ADDRESS: NAME OF INDIVIDUAL EXECUTING CONSENT: TITLE: SIGNATURE: DATE:

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determina- tion of correct tax liability. (Also Part I, § 842.)

Rev. Proc. 97–16