SECTION 17. HOW DOES

AN EP OR EO EXAMINATION OR EP OR EO DETERMINATIONS OR AN APPEALS OFFICE USE THE TECHNICAL ADVICE?

Generally applies advice .01 The EP or EO Examinations Area manager or EP or EO Determinations manager or in processing the the chief, appeals office, must process the taxpayer’s case on the basis of the conclusions taxpayer’s case in the technical advice memorandum unless—

(1) the EP or EO Examinations Area manager or EP or EO Determinations manager or the chief, appeals office, decides that the conclusions reached by EP or EO Technical in a technical advice memorandum should be reconsidered, or

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

Subject to a request for reconsideration of the conclusions in a technical advice memorandum, EP or EO Examinations or EP or EO Determinations must follow the conclusions in a technical advice memorandum as to all issues and the chief, appeals office, must follow the conclusions in a technical advice memorandum on issues of an organization’s/plan’s status or qualification. Thus, if the technical advice memorandum received by EP or EO Examinations or EP or EO Determinations concerns an organization’s/plan’s status or qualification, the organization/plan has no appeal to the appeals office on those specific issues.

Discussion with the taxpayer .02 EP or EO Technical 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 EP or EO Examinations or EP or EO Determinations or appeals office.

Gives copy to the taxpayer .03 EP or EO Examinations or EP or EO Determinations 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 16.13, 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

January 3, 2000 180 2000–1 I.R.B.

or civil fraud investigation, or a jeopardy or termination assessment, as described in section 11.06 of this revenue procedure, or documents to which § 6104 (document open to public inspection) applies as described in section 10.03.

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 deletions proposed by the taxpayer that have not been made by EP or EO Technical.

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

When no copy is given .05 If EP or EO Technical tells EP or EO Examinations or EP or EO Determinations or to the taxpayer the chief, appeals office, that a copy of the technical advice memorandum should not be given to the taxpayer and the taxpayer requests a copy, EP or EO Examinations or EP or EO Determinations or the chief, appeals office, will tell the taxpayer that no copy will be given