SECTION 10. HOW DOES THE

NATIONAL OFFICE HANDLE LETTER RULING REQUESTS?

The national office will issue letter rulings on the matters and under the circumstances explained in sections 3 and 5 of this revenue procedure and in the manner explained in this section and section 11 of this revenue procedure.

Controls request and refers it to .01 All requests for letter rulings will be controlled by the Technical Services Staff of appropriate Assistant Chief the Assistant Chief Counsel (Corporate) (CC:DOM:CORP:TSS). That office will Counsel or to the Office of examine the incoming documents for completeness, process the user fee, and forward the Associate Chief Counsel file to the appropriate Assistant Chief Counsel or, for letter ruling requests under the (International) jurisdiction of the Associate Chief Counsel (International), to the Office of Associate Chief Counsel (International). The Assistant Chief Counsel’s office or the Office of Associate Chief Counsel (International), as appropriate, will assign the letter ruling request to one of its branches.

Branch representative .02 Within 21 calendar days after a letter ruling request has been received in the branch contacts taxpayer within 21 days having jurisdiction, a representative of the branch will discuss the procedural issues in the letter ruling request with the taxpayer or, if the request includes a properly executed power of attorney, with the authorized representative unless the power of attorney provides otherwise. If the case is complex or a number of issues are involved, it may not be possible for the branch representative to discuss the substantive issues during this initial contact. However, when possible, for each issue within the branch’s jurisdiction, the branch representative will tell the taxpayer—

(1) whether the branch representative will recommend that the Service rule as the taxpayer requested, rule adversely on the matter, or not rule;

(2) whether the taxpayer should submit additional information to enable the Service to rule on the matter; or

(3) whether, because of the nature of the transaction or the issue presented, a tentative conclusion on the issue cannot be reached.

Except for cases involving a request for change in accounting method or accounting period, the 21 calendar day procedure applies to: all matters within the jurisdiction of the Assistant Chief Counsel (Corporate), the Assistant Chief Counsel (Income Tax

Sec. 9.03

January 4, 1999 40 1999–1 I.R.B.

and Accounting), the Assistant Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Employee Benefits and Exempt Organizations), the As- sociate Chief Counsel (Enforcement Litigation), and the Associate Chief Counsel (In- ternational); and all matters within the jurisdiction of the Assistant Chief Counsel (Financial Institutions and Products), except cases concerning insurance issues re- quiring actuarial computations.

Notifies taxpayer if any issues .03 If the letter ruling request involves matters within the jurisdiction of more than one have been referred to another branch or office, a representative of the branch that received the original request will tell branch or office the taxpayer within the initial 21 days—

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

(2) that a representative of that branch or office will contact the taxpayer within 21 calendar days after receiving the referral to discuss informally the procedural and, to the extent possible, the substantive issues in the request.

Determines if transaction can be .04 If a less than fully favorable letter ruling is indicated, the branch representative will modified to obtain favorable tell the taxpayer whether minor changes in the transaction or adherence to certain letter ruling published positions would bring about a favorable ruling. The branch representative may also tell the taxpayer the facts that must be furnished in a document to comply with Service requirements. However, the branch representative will not suggest precise changes that would materially alter the form of the proposed transaction or materially alter a taxpayer’s proposed accounting method or accounting period.

If, at the end of this discussion, the branch representative determines that a meeting in the national office would be more helpful to develop or exchange information, a meeting will be offered and an early meeting date arranged. When offered, this meeting is in addition to the taxpayer’s conference of right that is described in section 11.02 of this revenue procedure.

Is not bound by informal .05 The Service will not be bound by the informal opinion expressed by the branch opinion expressed representative or any other authorized Service representative, and such an opinion cannot be relied upon as a basis for obtaining retroactive relief under the provisions of § 7805(b).

Tells taxpayer if request lacks .06 If a request for a letter ruling or determination letter does not comply with all the essential information during provisions of this revenue procedure, the branch representative will tell the taxpayer initial contact during the initial contact which requirements have not been met.

Information must be submitted (1) If the request lacks essential information, which may include additional information within 21 calendar days needed to satisfy the procedural requirements of this revenue procedure, as well as substantive changes to transactions or documents needed from the taxpayer, the branch representative will tell the taxpayer during the initial contact that the request will be closed if the Service does not receive the information within 21 calendar days unless an extension of time is granted. See sections 10.07(1), (2), and (3) of this revenue procedure for instructions on submissions of additional information.

21-day period will be extended (2) An extension of the 21-day period will be granted only if justified in writing by the if justified and approved taxpayer and approved by the branch chief, senior technician reviewer (or senior technical reviewer), or assistant to the branch chief (or assistant branch chief) of the branch to which the case is assigned. A request for extension should be submitted before the end of the 21day period. If unusual circumstances close to the end of the 21-day period make a written request impractical, the taxpayer should notify the national office within the 21-day period that there is a problem and that the written request for extension will be coming soon. The taxpayer will be told promptly, and later in writing, of the approval or denial of the requested extension. If the extension request is denied, there is no right of appeal.

Sec. 10.06

1999–1 I.R.B. 41 January 4, 1999

Letter ruling request closed if (3) If the taxpayer does not submit the information requested during the initial contact the taxpayer does not submit within the time provided, the letter ruling request will be closed and the taxpayer will be information notified in writing. If the information is received after the request is closed, the re- quest will be reopened and treated as a new request as of the date the information is received. However, the taxpayer must pay another user fee before the case can be re- opened.

Letter ruling request mistakenly (4) A request for a letter ruling sent to the district director that does not comply with the sent to district director provisions of this revenue procedure will be returned by the district director so that the taxpayer can make corrections before sending it to the national office.

Requires prompt submission .07 of additional information requested after initial contact (1) Material facts furnished to the Service by telephone or fax, or orally at a conference, must be promptly confirmed by letter to the Service. This confirmation and any additional information requested by the Service that is not part of the information requested during the initial contact must be furnished within 21 calendar days to be considered part of the request.

Additional information submitted to the Service must be accompanied by the following declaration: “Under penalties of perjury, I declare that I have examined this informa- tion, including accompanying documents, and, to the best of my knowledge and be- lief, the information contains all the relevant facts relating to the request for the in- formation, and such facts are true, correct, and complete.” This declaration must be signed in accordance with the requirements in section 8.01(13)(b) of this revenue procedure. A taxpayer who submits additional factual information on several occasions may provide one declaration subsequent to all submissions that refers to all submissions.

To facilitate prompt action on letter ruling requests, taxpayers are encouraged to submit additional information by fax as soon as the information is available. The Service representative who requests additional information can provide a telephone number to which the information can be faxed. A copy of this information and a signed perjury statement, however, must be mailed or delivered to the Service.

Address to send additional (2)(a) If a private delivery service is not used, the additional information should be information sent to:

Internal Revenue Service ADDITIONAL INFORMATION Attn: [Name, office symbols, and

room number of the Service representative who requested the information] P.O. Box 7604 Ben Franklin Station Washington, D.C. 20044

However, for cases involving a request for change in accounting method or period under the jurisdiction of the Assistant Chief Counsel (Income Tax and Accounting), and a § 301.9100 request for an extension of time on such cases, the additional information should be sent to:

Internal Revenue Service ADDITIONAL INFORMATION Attn: [Name, office symbols, and

room number of the Service representative who requested

Sec. 10.06

January 4, 1999 42 1999–1 I.R.B.

the information] P.O. Box 14095 Ben Franklin Station Washington, D.C. 20044

(b) If a private delivery service is used, the additional information for all cases should be sent to:

Internal Revenue Service ADDITIONAL INFORMATION Attn: [Name, office symbols, and

room number of the Service representative who requested the information] 1111 Constitution Avenue, N.W. Washington, D.C. 20224

(c) For all cases, the additional information should include the name, office symbols, and room number of the Service representative who requested the information, and the taxpayer’s name and the case control number, which the Service representative can provide.

Number of copies of additional (3) Generally, a taxpayer needs only to submit one copy of the additional information. information to be submitted However, in appropriate cases, the national office may request additional copies of the information.

21-day period will be extended (4) An extension of the 21-day period will be granted only if justified in writing by the if justified and approved taxpayer and approved by the branch chief, senior technician reviewer (or senior technical reviewer), or assistant to the branch chief (or assistant branch chief) of the branch to which the case is assigned. A request for extension should be submitted before the end of the 21day period. If unusual circumstances close to the end of the 21-day period make a written request impractical, the taxpayer should notify the national office within the 21-day period that there is a problem and that the written request for extension will be coming soon. The taxpayer will be told promptly, and later in writing, of the approval or denial of the requested extension. If the extension request is denied, there is no right of appeal.

If taxpayer does not submit (5) If the taxpayer does not follow the instructions for submitting additional information additional information or requesting an extension within the time provided, a letter ruling will be issued on the basis of the information on hand or, if appropriate, no letter ruling will be issued.

When the Service decides not to issue a letter ruling because additional information was not timely submitted, the case will be closed and the taxpayer notified in writing. If the Service receives the information after the letter ruling request is closed, the request may be reopened and treated as a new request. However, the taxpayer must pay an- other user fee before the case can be reopened.

Near the completion of the .08 Generally, after the conference of right is held but before the letter ruling is issued, ruling process, advises the the branch representative will inform the taxpayer or the taxpayer’s representative of the taxpayer of conclusions and, Service’s conclusions. If the Service is going to rule adversely, the taxpayer will be if the Service will rule adversely, offered the opportunity to withdraw the letter ruling request. If the taxpayer or the offers the taxpayer the taxpayer’s representative does not promptly notify the branch representative of a decision opportunity to withdraw the to withdraw the ruling request, the adverse letter ruling will be issued. The user fee will letter ruling request not be refunded for a letter ruling request that is withdrawn. See section 8.07 of this revenue procedure.

May request draft of proposed .09 To accelerate issuance of letter rulings, in appropriate cases near the completion of letter ruling near the completion the ruling process, the Service representative may request that the taxpayer or the of the ruling process taxpayer’s representative submit a proposed draft of the letter ruling on the basis of discussions of the issues. The taxpayer, however, is not required to prepare a draft letter ruling to receive a letter ruling.

Sec. 10.09

1999–1 I.R.B. 43 January 4, 1999

The format of the submission should be discussed with the Service representative who requests the draft letter ruling. The representative usually can provide a sample format of a letter ruling and will discuss the facts, analysis, and letter ruling language to be included.

Taxpayer may also submit In addition to a typed draft, taxpayers are encouraged to submit this draft on a computer draft on a computer disk in a disk in a word processing format acceptable to the Service. The typed draft will become word processing format part of the permanent files of the national office, and the computer disk will not be returned. If the Service representative requesting the draft letter ruling cannot answer specific questions about the word processing format, the questions can be directed to Wayne Thomas at 202-622-7560 (not a toll-free call).

The proposed letter ruling (both typed draft and computer disk) should be sent to the same address as any additional information and contain in the transmittal the information that should be included with any additional information (for example, a penalties of perjury statement is required). See section 10.07 of this revenue procedure.

Issues separate letter rulings .10 for substantially identical letter rulings and generally issues a (1) Substantially identical letter rulings. For letter ruling requests qualifying for the single letter ruling for identical user fee provided in paragraph (A)(5)(a) of Appendix A of this revenue procedure for subaccounting method changes stantially identical letter rulings, a separate letter ruling will be issued for each entity with a common member or sponsor, or for each member of a common entity.

(2) Identical accounting method changes and related § 301.9100 letter rulings. For letter ruling requests qualifying for the user fee provided in paragraphs (A)(5)(b) and (c) of Appendix A of this revenue procedure for identical accounting method changes and related § 301.9100 letter rulings, a single letter ruling generally will be issued on behalf of all members of a consolidated group that file a Form 3115, Application for Change in Accounting Method, or that file a § 301.9100 request for an extension of time to file a Form 3115. However, the branch to which the case is assigned may, at its discretion, issue separate letter rulings for certain members or groups of members within a consolidated group. For example, separate letter rulings may be issued if different terms and conditions are required. Each letter ruling will include an attachment listing the § 481(a) adjustment for each member to which the letter ruling applies.

Sends copy of letter ruling .11 The national office will send a copy of the letter ruling, whether favorable or adverse, to district director to the district director who has examination jurisdiction of the taxpayer’s tax return.