SECTION 4. PROCEDURE TO ENTER

INTO A CLOSING AGREEMENT

.01 General.

The first revenue procedure published each year (the Annual Revenue Procedure) outlines the general procedures of the Service for the issuance of letter rulings and determination letters, including closing agreements entered into under the authority of §7121, by the National Office. See, e.g., Rev. Proc. 2000–1, 2000–1 I.R.B. 4. Taxpayers should note that the Service also publishes an annual revenue procedure, generally in the first Internal Revenue Bulletin of the year, which provides a list of those areas of the Code under the jurisdiction of the Associate Chief Counsel (International), for which the Service will not issue advance letter rulings, (e.g., certain §1503(d) determinations, such as whether the conditions for excepting losses of a DRC from the definition of a DCL are satisfied). See, e.g., Rev. Proc. 2000–7, 2000–1 I.R.B. 227.

The consolidated group (i.e., the parent on behalf of the consolidated group), the unaffiliated DRC, or the unaffiliated domestic owner that filed the agreements under §1.1503–2(g)(2)(i) for the DCLs for which the closing agreement would relate may file a request to enter into a §1.1503–2(g)(2)(iv)(B)(2)(i) closing agreement by following the procedures

of the most recent Annual Revenue Procedure and this revenue procedure. Taxpayers must include the user fee required by the most recent Annual Revenue Procedure.

.02 Additional Information.

Because the information, representations, and documentation necessary to enter into a closing agreement depend on all the facts and circumstances, the Service may require information, representations, and documentation in addition to that set forth in this revenue procedure and the most recent Annual Revenue Procedure. Taxpayers should submit such additional information in accordance with the Annual Revenue Procedure and within the time allowed by the Annual Revenue Procedure. If a taxpayer does not submit the information requested within the time provided, the request will be closed and the taxpayer will be notified in writing. See, e.g., section 10.06(3), Rev. Proc. 2000–1. If while processing a taxpayer’s request for a §1503(d) closing agreement, the Service determines that the taxpayer is not in compliance with the §1503(d) regulations and needs relief under §301.9100 to obtain an extension of time to make a required election or application under the §1503(d) regulations, then the taxpayer has thirty (30) days from the date the Service notifies the taxpayer to file a request for relief under §301.9100. If a taxpayer does not submit the §301.9100 request within the thirty-day period, the §1.1503–2(g)(2)(iv)(B)(2)(i) closing agreement request will be closed and the taxpayer will be notified in writing.

Taxpayers are responsible for keeping the Service informed of all material changes to the information, representations, and documentation submitted as part of the closing agreement request.