SECTION 11. HOW ARE

REQUESTS HANDLED?

Taxpayer notified .01 Regardless of whether the taxpayer or the Service initiates the request for technical advice, the EP or EO Examinations or EP or EO Determinations or appeals office: (1) will notify the taxpayer that technical advice is being requested; and (2) at or before the time the request is submitted to EP or EO Technical, will give to the taxpayer a copy of the arguments that are being provided to EP or EO Technical in support of its position.

If the EP or EO specialist or appeals officer initiates the request for technical advice, he or she will give to the taxpayer a copy of the statement of the pertinent facts and the issues

January 3, 2000 170 2000–1 I.R.B.

proposed for submission to EP or EO Technical.

This section 11.01 does not apply to a technical advice memorandum described in section 11.06 of this revenue procedure.

Conference offered .02 When notifying the taxpayer that technical advice is being requested, the EP or EO specialist or appeals officer will also tell the taxpayer about the right to a conference in EP or EO Technical if an adverse decision is indicated and will ask the taxpayer whether such a conference is desired.

If the taxpayer disagrees .03 If the EP or EO specialist or appeals officer initiates the request for technical advice, with the Service’s statement the taxpayer has 10 calendar days after receiving the statement of facts and specific issues of facts to submit to that specialist or officer a written statement specifying any disagreement on the facts and issues. A taxpayer who needs more than 10 calendar days must justify, in writing, the request for an extension of time. The extension is subject to the approval of the EP or EO Examinations Area manager or EP or EO Determinations manager or the chief, appeals office.

After receiving the taxpayer’s statement of the areas of disagreement, every effort should be made to reach agreement on the facts and the specific points at issue before the matter is referred to EP or EO Technical. If an agreement cannot be reached, the EP or EO Examinations or EP or EO Determinations or appeals office will notify the taxpayer in writing. Within 10 calendar days after receiving the written notice, the taxpayer may submit a statement of the taxpayer’s understanding of the facts and the specific points at issue. A taxpayer who needs more than 10 calendar days to prepare the statement of understanding must justify, in writing, the request for an extension of time. The extension is subject to the approval of the EP or EO Examinations Area manager or EP or EO Determinations manager or the chief, appeals office. Both the statements of the taxpayer and the EP or EO Examinations or EP or EO Determinations or appeals office will be forwarded to EP or EO Technical with the request for technical advice.

When EP or EO Examinations or EP or EO Determinations or the chief, appeals office, and the taxpayer cannot agree on the material facts and the request for technical advice does not involve the issue of whether a letter ruling or determination letter should be modified or revoked, EP or EO Technical, at its discretion, may refuse to provide technical advice. If EP or EO Technical chooses to issue technical advice, it will base its advice on the facts provided by the EP or EO Examinations or EP or EO Determinations or appeals office.

If a request for technical advice involves the issue of whether a letter ruling or determination letter should be modified or revoked, EP or EO Technical will issue the technical advice.

If the Service disagrees with .04 If the taxpayer initiates the action to request technical advice, and the taxpayer’s the taxpayer’s statement statement of the facts and issues is not wholly acceptable to the EP or EO Examinations of facts or EP or EO Determinations or appeals office, the Service will notify the taxpayer in writing of the areas of disagreement. The taxpayer has 10 calendar days after receiving the written notice to reply to it. A taxpayer who needs more than 10 calendar days must justify in writing the request for an extension of time. The extension is subject to the approval of the EP or EO Examinations Area manager, or EP or EO Determinations manager or the chief, appeals office.

If an agreement cannot be reached, both the statements of the taxpayer and the EP or EO Examinations or EP or EO Determinations or appeals office will be forwarded to EP or EO Technical with the request for technical advice. When the disagreement involves material facts essential to the preliminary assessment of the case, the EP or EO Examinations Area manager, EP or EO Determinations manager or the chief, appeals office, may refuse to refer a taxpayer initiated request for technical advice to EP or EO Technical.

2000–1 I.R.B. 171 January 3, 2000

If the EP or EO Examinations or EP or EO Determinations or chief, appeals office, submits a case involving a disagreement of material facts, EP or EO Technical, at its discretion, may refuse to provide technical advice. If EP or EO Technical chooses to issue technical advice, it will base its advice on the facts provided by the EP or EO Examinations or EP or EO Determinations or appeals office.

If the taxpayer has not .05 When the EP or EO Examinations or EP or EO Determinations or appeals office submitted the required initiates the request for technical advice, the taxpayer has 10 calendar days after receiving deletions statement the statement of facts and issues to be submitted to EP or EO Technical to provide the deletions statement required under § 6110 if public inspection is permitted pursuant to § 6110 ( see section 10.05 of this revenue procedure). In such a case, if the taxpayer does not submit the deletions statement, the EP or EO Examinations or EP or EO Determinations or the appeals office, will tell the taxpayer that the statement is required.

When the taxpayer initiates the request for technical advice and does not submit with the request a deletions statement as required by § 6110, the EP or EO Examinations or EP or EO Determinations or chief, appeals office, will ask the taxpayer to submit the statement. If the EP or EO Examinations or EP or EO Determinations or chief, appeals office, does not receive the deletions statement within 10 calendar days after asking the taxpayer for it, the EP or EO Examinations or EP or EO Determinations or chief, appeals office, may decline to submit the request for technical advice.

However, if the EP or EO Examinations or EP or EO Determinations or chief, appeals office, decides to request technical advice, whether initiated by the EP or EO Examinations or EP or EO Determinations or appeals office or by the taxpayer, in a case in which the taxpayer has not submitted the deletions statement, EP or EO Technical will make those deletions that the Commissioner of Internal Revenue determines are required by § 6110(c).

Criminal or civil fraud cases .06 The provisions of this section (about referring issues upon the taxpayer’s request, obtaining the taxpayer’s statement of the areas of disagreement, telling the taxpayer about the referral of issues, giving the taxpayer a copy of the arguments submitted, submitting proposed deletions, and granting conferences in EP or EO Technical) do not apply to a technical advice memorandum described in § 6110(g)(5)(A) that involves a matter that is the subject of or is otherwise closely related to a criminal or civil fraud investigation, or a jeopardy or termination assessment.

In these cases, a copy of the technical advice memorandum is given to the taxpayer after all proceedings in the investigations or assessments are complete, but before the Service mails the notice of intention to disclose the technical advice memorandum under § 6110(f)(1). The taxpayer may then provide the statement of proposed deletions to EP or EO Technical.