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 the EP or EO Determinations or the appeals office:

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(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 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 with .03 If the EP or EO specialist or appeals officer initiates the request for technical advice, the Service’s statement of facts the taxpayer has 10 calendar days after receiving the statement of facts and specific issues 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 the EP or EO Determinations manager or the Appeals Area Director, SB/SE-TE/GE.

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 the EP or EO Determinations or the 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 the EP or EO Determinations manager or the Appeals Area Director, SB/SE-TE/GE. 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 Appeals Area Director, SB/SE-TE/GE, 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 the .04 If the taxpayer initiates the action to request technical advice, and the taxpayer’s taxpayer’s statement of facts statement of the facts and issues is not wholly acceptable to the EP or EO Examinations or the EP or EO Determinations or the 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 the EP or EO Determinations manager or the Appeals Area Director, SB/SE-TE/GE.

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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, the EP or EO Determinations manager or the Appeals Area Director, SB/SE-TE/GE, may refuse to refer a taxpayer initiated request for technical advice to EP or EO Technical.

If the EP or EO Examinations or the EP or EO Determinations or the Appeals Area Director, SB/SE-TE/GE, 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 the EP or EO Determinations or the appeals office.

If the taxpayer has not submitted .05 When the EP or EO Examinations or the EP or EO Determinations or the appeals the required deletions statement office initiates the request for technical advice, the taxpayer has 10 calendar days after receiving 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 the 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 the EP or EO Determinations or the Appeals Area Director, SB/SE-TE/GE, will ask the taxpayer to submit the statement. If the EP or EO Examinations or the EP or EO Determinations or the Appeals Area Director, SB/SE-TE/GE, does not receive the deletions statement within 10 calendar days after asking the taxpayer for it, the EP or EO Examinations or the EP or EO Determinations or the Appeals Area Director, SB/SE-TE/GE, may decline to submit the request for technical advice.

However, if the EP or EO Examinations or the EP or EO Determinations or the Appeals Area Director, SB/SE-TE/GE, decides to request technical advice, whether initiated by the EP or EO Examinations or the EP or EO Determinations or the 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. SECTION 12. HOW DOES A TAXPAYER APPEAL AN EP OR EO MANAGER’S OR AN APPEALS AREA DIRECTOR’S DECISION NOT TO SEEK TECHNICAL ADVICE?

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Taxpayer notified of decision .01 If the EP or EO specialist’s or the appeal’s referral of an issue to EP or EO Technical not to seek technical advice for technical advice does not warrant referral, the EP or EO specialist or the appeals officer will tell the taxpayer. A taxpayer’s request for such a referral will not be denied merely because EP or EO Technical provided legal advice, other than advice furnished pursuant to this revenue procedure, to the EP or EO Examinations or EP or EO Determinations or appeals office on the matter.

Taxpayer may appeal decision .02 The taxpayer may appeal the decision of the EP or EO specialist or the appeals offinot to seek technical advice cer not to request technical advice. To do so, the taxpayer must submit to that specialist or officer, within 10 calendar days after being told of the decision, a written statement of the facts, law, and arguments on the issue and the reasons why the taxpayer believes the matter should be referred to EP or EO Technical for technical advice. 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 the EP or EO Determinations manager or the Appeals Area Director, SB/SETE/GE.

EP or EO Examinations Area .03 The EP or EO specialist or the appeals officer submits the taxpayer’s statement manager or EP or EO through proper channels to the EP or EO Examinations Area manager or the EP or EO Determinations manager or Determinations manager or the Appeals Area Director, SB/SE-TE/GE, along with the EP Appeals Area Director, SB/SE- or EO specialist’s or the appeals officer’s statement of why the issue should not be referred TE/GE, determines whether to EP or EO Technical. The manager or Appeals Area Director, SB/SE-TE/GE, determines, technical advice will be sought on the basis of the statements, whether technical advice will be requested.

If the manager or Appeals Area Director, SB/SE-TE/GE, determines that technical advice is not warranted and proposes to deny the request, the taxpayer is told in writing about the determination. In the letter to the taxpayer, the manager or Appeals Area Director, SB/SE-TE/GE, states the reasons for the proposed denial (except in unusual situations when doing so would be prejudicial to the best interests of the Government). The taxpayer has 10 calendar days after receiving the letter to notify the manager or Appeals Area Director, SB/SE-TE/GE, of agreement or disagreement with the proposed denial.

Manager or area director’s .04 The taxpayer may not appeal the decision of the EP or EO Examinations Area mandecision may be reviewed ager or the EP or EO Determinations manager or the Appeals Area Director, SB/SEbut not appealed TE/GE, not to request technical advice from EP or EO Technical. However, if the taxpayer does not agree with the proposed denial, all data on the issue for which technical advice has been sought, including the taxpayer’s written request and statements, will be submitted to the Commissioner, Tax Exempt and Government Entities Division or the Chief, Appeals, as appropriate.

The Commissioner, Tax Exempt and Government Entities Division through the Director, Employee Plans, or the Director, Exempt Organizations or, if appropriate, the Chief, Appeals will review the proposed denial solely on the basis of the written record, and no conference will be held with the taxpayer or the taxpayer’s representative. The appropriate Director or Chief or his or her representative may consult with EP or EO Technical and the Office of Chief Counsel, if necessary, and will notify the EP or EO Examinations or the EP or EO Determinations or the area appeals office within 45 calendar days of receiving all the data regarding the request for technical advice whether the proposed denial is approved or disapproved. The EP or EO Examinations or the EP or EO Determinations or area appeals office will then notify the taxpayer.

While the matter is being reviewed, the EP or EO Examinations office or the EP or EO Determinations office or the area appeals office suspends action on the issue (except when the delay would prejudice the Government’s interest).

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The provisions of this revenue procedure regarding review of the proposed denial of a request for technical advice continue to be applicable in those situations in which the authority normally exercised by the EP or EO Examinations Area manager, the EP or EO Determinations manager, or the Appeals Area Director, SB/SE-TE/GE, has been delegated to another official.