SECTION 15. HOW DOES

THE NATIONAL OFFICE PREPARE THE TECHNICAL

ADVICE MEMORANDUM?

Delegates authority to .01 The authority to issue technical advice on issues under the jurisdiction of the branch chiefs Assistant Commissioner (Employee Plans and Exempt Organizations) has largely been delegated to the Chiefs, Employee Plans Technical Branches; Chiefs, Employee Plans Projects Branches; Chiefs, Employee Plans Actuarial Branches; and Chiefs, Exempt Organizations Technical Branches.

Determines whether request .02 A request for technical advice generally is given priority and processed has been properly made expeditiously. As soon as the request for technical advice is assigned, the technical employee analyzes the file to see whether it meets all of the requirements of sections 7 through 9 of this revenue procedure.

However, if the request does not comply with the requirements of section 9.05 of this revenue procedure relating to the deletions statement, the Service will follow the procedure in the last paragraph of section 10.05 of this revenue procedure.

Contacts the key district or .03 Usually, within 21 calendar days after the branch receives the request for technical appeals office to discuss issues advice, a representative of the branch telephones the key district or appeals office to discuss the procedural and substantive issues in the request that come within the branch’s jurisdiction.

Informs the key district or .04 If the technical advice request concerns matters within the jurisdiction of more than appeals office if any matters in one branch or office, a representative of the branch that received the original technical the request have been referred advice request generally informs the key district or appeals office within 21 calendar days to another branch or office of receiving the request that—

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(1) the matters within the jurisdiction of another branch or office have been referred to the other branch or office for consideration, and

(2) a representative of the other branch or office will contact the key district or appeals office about the referral of the technical advice request within 21 calendar days after receiving it in accordance with section 15.03 above.

Informs the key district or .05 The branch representative will inform the key district or appeals office that the case appeals office if additional is being returned if substantial additional information is required to resolve an issue. information is needed Cases should be returned for additional information when significant unresolved factual variances exist between the statement of facts submitted by the key district or appeals office and the taxpayer. They should also be returned if major procedural problems cannot be resolved by telephone.

If only minor procedural deficiencies exist, the branch will request the additional information in the most expeditious manner without returning the case.

Informs the key district or .06 If all necessary information has been provided, the branch representative discusses appeals office of the tentative with the key district or appeals office his or her tentative conclusion. conclusion

If a tentative conclusion has .07 If a tentative conclusion has not been reached because of the complexity of the not been reached, gives date issue, the branch representative informs the key district or appeals office of the estimated estimated for tentative conclusion date the tentative conclusion will be made.

Advises the key district or .08 Because the branch representative’s tentative conclusion may change during the appeals office that preliminary preparation and review of the technical advice memorandum, the tentative conclusion conclusion not final should not be considered final. Therefore, neither the branch representative nor the key district or appeals office should advise the taxpayer or the taxpayer’s representative of the tentative conclusion before the scheduling of the adverse conference.

Advises the key district or .09 In all cases, the branch representative should inform the EP/EO specialist or appeals office of final conclusions appeals officer of the national office’s final conclusions. The EP/EO specialist or the appeals officer should be offered the opportunity to discuss the issues and the national office’s final conclusions before the technical advice memorandum is issued.

If needed, requests .10 If, following the initial contact referenced in section 15.03 of this revenue additional information procedure, it is determined, after discussion with the appropriate branch chief or reviewer, that additional information is needed, a branch representative will obtain the additional information from the taxpayer, the key district director, or the chief, appeals office, in the most expeditious manner possible. Any additional information requested from the taxpayer by the national office must be submitted by letter with a penalties of perjury statement within 21 calendar days after the request for information is made.

Penalties of perjury statement Additional information submitted to the national office must be accompanied by the following declaration: “Under penalties of perjury, I declare that I have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request, for the information and such facts are true, correct, and complete.” This declaration must be signed and dated by the taxpayer, not the taxpayer’s representative. A stamped signature is not permitted.

A written request for an extension of time to submit additional information must be received by the national office within the 21 day period, giving compelling facts and circumstances to justify the proposed extension. The branch chief (or his or her delegate) of the office to which the case is assigned will determine whether to grant or deny the request for an extension of the 21-day period. No extension will be granted without the approval of the appropriate branch chief (or his or her delegate). Except in rare and unusual circumstances, the national office will not agree to an extension of more than 10 working days beyond the end of the 21-day period. There is no right to appeal the denial of a request for an extension.

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If the national office does not receive the additional information within 21 calendar days, plus any extensions granted by the appropriate branch chief (or his or her delegate), the national office will process the technical advice memorandum based on the existing record.

Requests taxpayer to send .11 Whether or not requested by the Service, any additional information submitted by additional information to the the taxpayer should be sent to the national office. Generally, the taxpayer needs only to national office and a copy to submit one copy of the additional information to the national office. However, in the key district director or appropriate cases, the national office may request additional copies of the information. chief, appeals office

Also, the taxpayer must send a copy to either the key district director or the chief, appeals office, for comment. Any comments must be furnished promptly to the appropriate branch in the national office. If the key district director or the chief, appeals office, does not have any comments, he or she must notify the branch representative promptly.

Informs the taxpayer when .12 Generally, before replying to the request for technical advice, the national office requested deletions will not informs the taxpayer orally or in writing of the material likely to appear in the technical be made advice memorandum that the taxpayer proposed be deleted but that the Service has determined should not be deleted.

If so informed, the taxpayer may submit within 10 calendar days any further information or other arguments supporting the taxpayer’s proposed deletions.

The Service will attempt to resolve all disagreements about proposed deletions before the national office replies to the request for technical advice. However, the taxpayer does not have the right to a conference to resolve any disagreements about material to be deleted from the text of the technical advice memorandum. These matters, however, may be considered at any conference otherwise scheduled for the request.

Prepares reply in two parts .13 The national office’s reply to a technical advice request is in two parts. Each part identifies the taxpayer by name, address, identification number, and year or years involved.

The first part of the reply is a transmittal memorandum. In unusual cases, it is a way of giving the key district or appeals office administrative or other information that under the nondisclosure statutes or for other reasons may not be discussed with the taxpayer.

The second part is the technical advice memorandum, which contains—

(1) a statement of the issues;

(2) a statement of the facts pertinent to the issues;

(3) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other precedents published in the Internal Revenue Bulletin, and court decisions;

(4) a discussion of the rationale underlying the conclusions reached by the national office; and

(5) the conclusions of the national office.

The conclusions give direct answers, whenever possible, to the specific issues raised by the key district or appeals office. However, the national office is not bound by the precise statement of the issues as submitted by the taxpayer or by the key district or appeals office and may reframe the issues to be answered in the technical advice memorandum. The discussion of the issues will be in sufficient detail so that the key district or appeals officials will understand the reasoning underlying the conclusion.

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Accompanying a technical advice memorandum subject to § 6110, is a notice under § 6110(f)(1) of intention to disclose the technical advice memorandum (including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).

Routes replies to .14 Replies to requests for technical advice are addressed to the key district director or appropriate office the chief, appeals office. Replies to requests from appeals should be routed to the appropriate appeals office through the National Director of Appeals, C:AP:FS.