SECTION 1. PURPOSE AND NATURE

OF CHANGES

.01 Purpose This revenue procedure updates Rev. Proc. 97–7, 1997–1 C.B. *, by providing a current list of areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (International) on which advance letter rulings or determination letters will not be issued. For a list of areas under the jurisdiction of the Associate Chief Counsel (Domestic) and the Associate Chief Counsel (Employee Benefits and Exempt Organization) on which advance letter rulings or determination letters will not be issued, see Rev. Proc. 98–3, this Bulletin.

.02 Changes (1) New section 4.01(15), dealing with the issue of whether an entity is treated as fiscally transparent by a foreign jurisdiction for purposes of section 894, has been added to reflect the fact that the Service is studying the issue and plans to publish additional guidance in this area.

(2) New section 4.02(2), dealing with any transaction or series of transactions that is designed to achieve inconsistent tax consequences or classifications under the tax laws of the U.S. and the tax laws of a treaty partner, has been added to reflect the Service’s view that transactions of this type require a determination of whether or not the transaction is treated appropriately under the laws of the United States in light of its treatment under the laws of the treaty partner and whether or

not the transaction is structured for a meaningful non-tax business purpose. Thus, such transactions require complex factual determinations that are not the proper subject of advance letter rulings or determination letters.

(3) New section 4.02(3) has been added to provide that questions involving the validity of the federal income tax and other taxes set forth in the Code, questions on the authority or jurisdiction of the Service to enforce the Code or collection information, or similar matters.