SECTION 4. ADMINISTRATIVE

APPEAL PROCESS

.01 In general. Sections 4.03, 4.04, and 4.05 of this revenue procedure describe the circumstances in which an Issuer may appeal a proposed adverse determination by the District that the interest on a Bond Issue is not excludable from gross income under § 103. To the extent provided in sections 4.03(2), 4.04(2), or 4.05(2), the Issuer may request an appeal in accordance with section 5.

1999–41 I.R.B. 501 October 12, 1999

.01 In general. Established Appeals procedures, including those governing submissions and taxpayer conferences, apply to requesting an appeal of a proposed adverse determination that interest on a Bond Issue is not excludable from gross income under ‘ 103. See § 601.106 et seq. of the Statement of Procedural Rules.

.02 The Issuer’s appeal request and response to the District’s notice. The Issuer’s appeal request must be in writing. The appeal request must include a detailed written response to the District’s notice of the District’s proposed adverse determination, and include any further explanation of the Issuer’s position regarding the issue(s) in dispute. The Issuer’s written appeal request must be submitted to the District within 30 days of the date of the notice from the District regarding its proposed adverse determination. The District may extend this 30-day requirement following a written request by the Issuer justifying such extension. The Issuer or the Issuer’s authorized representative must sign an appeal request. It is preferred that Form 2848, Power of Attorney and Declaration of Representative, be used to designate an authorized representative when making an appeal request under this revenue procedure.

.03 Failure to make appeal request. If the Issuer does not submit a written appeal request within the time period set forth in section 5.02 of this revenue procedure, the District’s proposed adverse determination shall become final and the District may begin the process of taxing bondholders without further notice to the Issuer.