SECTION 16. HOW DOES A

DISTRICT OR APPEALS OFFICE USE THE TECHNICAL ADVICE?

Generally applies advice in .01 The district director or the chief, appeals office, must process the taxpayer’s case processing the taxpayer’s case on the basis of the conclusions in the technical advice memorandum unless–

(1) the district director or the chief, appeals office, decides that the conclusions reached by the national office in a technical advice memorandum should be reconsidered;

(2) in the case of technical advice unfavorable to the taxpayer, the chief, appeals office, decides to settle the issue under existing authority; or

(3) in the case of technical advice unfavorable to a Coordinated Examination Program taxpayer on a coordinated issue within the Industry Specialization Program or International Field Assistance Specialization Program on which appeals has coordinated issue papers containing settlement guidelines or positions, the examination case manager decides to settle the issue under the settlement authority delegated in Delegation Order No. 247, 1996–1 C.B. 356.

Except as provided in paragraph (1), (2), or (3) of this section 16.01, the conclusions in a technical advice memorandum involving a § 103 obligation and the issuer of this obligation must be treated by the district director or the chief, appeals office, as applying to the issuer and any holder of the obligation, unless the holder initiates a request for technical advice on the same issue addressed in the technical advice memorandum involving the issuer, and the national office issues a technical advice memorandum involving that issue and that holder.

Discussion with the taxpayer .02 The national office will not discuss the contents of the technical advice memorandum with the taxpayer or the taxpayer’s representative until the taxpayer has been given a copy by the district or appeals office. See section 15.09 of this revenue procedure concerning the time for discussing the tentative conclusion with the taxpayer or the taxpayer’s representative. Sec. 15.14 January 3, 2000 96 2000–1 I.R.B.

Gives copy to the taxpayer .03 The district director or the chief, appeals office, only after adopting the technical advice, gives the taxpayer—

(1) a copy of the technical advice memorandum described in section 15.14 of this revenue procedure; and

(2) the notice under § 6110(f)(1) of intention to disclose the technical advice memorandum (including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).

This requirement does not apply to a technical advice memorandum involving a criminal or civil fraud investigation, or a jeopardy or termination assessment, as described in section 10.08 of this revenue procedure.

Taxpayer may protest .04 After receiving the notice under § 6110(f)(1) of intention to disclose the technical deletions not made advice memorandum, the taxpayer may protest the disclosure of certain information in it. The taxpayer must submit a written statement within 20 calendar days identifying those deletions not made by the Service that the taxpayer believes should have been made. The taxpayer must also submit a copy of the version of the technical advice memorandum proposed to be open to public inspection with brackets around the deletions proposed by the taxpayer that have not been made by the national office.

Generally, the national office considers only the deletion of material that the taxpayer has proposed be deleted or other deletions as required under § 6110(c) before the national office reply is sent to the district director or the chief, appeals office. Within 20 calendar days after it receives the taxpayer’s response to the notice under § 6110(f)(1), the national office must mail to the taxpayer its final administrative conclusion about the deletions to be made.

When no copy is given .05 If the national office tells the district director or the chief, appeals office, that a copy to the taxpayer of the technical advice memorandum should not be given to the taxpayer and the taxpayer requests a copy, the district director or the chief, appeals office, will tell the taxpayer that no copy will be given.