SECTION 8. UNDER

WHAT CIRCUMSTANCES DOES THE SERVICE HAVE DISCRETION TO ISSUE LETTER RULINGS AND DETERMINATION LETTERS?

Ordinarily not in certain areas .01 The Service ordinarily will not issue a letter ruling or determination letter in certain because of factual nature areas because of the factual nature of the problem involved or because of other reasons. of the problem The Service may decline to issue a letter ruling or a determination letter when appropriate in the interest of sound tax administration or on other grounds whenever warranted by the facts or circumstances of a particular case.

Instead of issuing a letter ruling or determination letter, the national office or the Ohio key district director may, when it is considered appropriate and in the best interests of the Service, issue an information letter calling attention to well-established principles of tax law.

Not on alternative plans or .02 A letter ruling or a determination letter will not be issued on alternative plans of hypothetical situations proposed transactions or on hypothetical situations.

Ordinarily not on part of an .03 The national office ordinarily will not issue a letter ruling on only part of an integrated transaction integrated transaction. If, however, a part of a transaction falls under a no-rule area, a letter ruling on other parts of the transaction may be issued. Before preparing the letter ruling request, a taxpayer should call the branch having jurisdiction for the matters on which the taxpayer is seeking a letter ruling to discuss whether the national office will issue a letter ruling on part of the transaction.

Not on partial terminations .04 The national office will not issue a letter ruling on the partial termination of an of employee plans employee plan. Determinations involving the partial termination of an employee plan are within the jurisdiction of the appropriate key district office.

Law requires ruling letter .05 The national office will issue rulings on prospective or future transactions if the law or regulations require a determination of the effect of a proposed transaction for tax purposes.

Issues under consideration .06 A letter ruling or determination letter relating to an issue that is being considered by by PBGC or DOL the Pension Benefit Guaranty Corporation (PBGC) or the Department of Labor (DOL), and involves the same taxpayer, shall be issued at the discretion of the Service.

Cafeteria plans .07 The Service does not issue letter rulings or determination letters on whether a cafeteria plan satisfies the requirements of § 125. See also Rev. Proc. 99–3, also in this Bulletin, for areas under the jurisdiction of the Associate Chief Counsel (Domestic) involving cafeteria plans in which advance rulings or determination letters will not be issued.

Determination letters .08 See section 3.02 of Rev. Proc. 99–6 for employee plans matters on which determination letters will not be issued.

Domicile in a foreign .09 jurisdiction

(1) The Service is ordinarily unwilling to rule in situations where a taxpayer or a related party is domiciled or organized in a foreign jurisdiction with which the United States does not have an effective mechanism for obtaining tax information with respect to civil tax examinations and criminal investigations, which would preclude the Service from obtaining information located in such jurisdiction that is relevant to the analysis or examination of the tax issues involved in the ruling request.

1999–1 I.R.B. 129 January 4, 1999

(2) The provisions of subsection 8.09(1) above shall not apply if the taxpayer or affected related party (a) consents to the disclosure of all relevant information requested by the Service in processing the ruling request or in the course of an examination to verify the accuracy of the representations made and to otherwise analyze or examine the tax issues involved in the ruling request, and (b) waives all claims to protection of bank or commercial secrecy laws in the foreign jurisdiction with respect to the information requested by the Service. In the event the taxpayer’s or related party’s consent to disclose relevant information or to waive protection of bank or commercial secrecy is determined by the Service to be ineffective or of no force and effect, then the Service may retroactively rescind any ruling rendered in reliance on such consent.

Employee Stock .10 Ownership Plans

The National Office does not issue a letter ruling on whether or not the renewal, extension or refinancing of an exempt loan satisfies the requirements of § 4975(d)(3) of the Internal Revenue Code.

Not on disregarded entities .11 The national office will not issue a letter ruling with respect to a disregarded entity described in §§ 301.7701–1(a)(4), 301.7701–2 and 301.7701–3 of the Procedure and Administration Regulations when the sole member of the entity is an exempt organization.