SECTION 16. HOW DOES

EP OR EO TECHNICAL PREPARE THE TECHNICAL ADVICE MEMORANDUM?

Delegates authority to .01 The authority to issue technical advice on issues under the jurisdiction of the group managers Commissioner, Tax Exempt and Government Entities Division has largely been delegated to the managers of the Employee Plans Rulings & Agreements Technical and Actuarial groups, and the Technical Guidance and Quality Assurance group (collectively referred to as “EP Technical”); and of the Exempt Organizations Rulings & Agreements Technical groups and the Technical Guidance and Quality Assurance group (collectively referred to as “EO Technical”)

Determines whether request .02 A request for technical advice generally is given priority and processed expedihas been properly made tiously. As soon as the request for technical advice is assigned, the technical employee analyzes the file to see whether it meets all of the requirements of sections 7, 8, and 10 of this revenue procedure.

However, if the request does not comply with the requirements of section 10.05 of this revenue procedure relating to the deletions statement, the Service will follow the procedure in the last paragraph of section 11.05 of this revenue procedure.

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Contacts the EP or EO .03 Usually, within 21 calendar days after the group receives the request for technical Examinations or EP or EO advice, a representative of the group telephones the EP or EO Examinations office or the Determinations or appeals EP or EO Determinations office or the appeals office to discuss the procedural and suboffice to discuss issues stantive issues in the request that come within the group’s jurisdiction.

Informs the EP or EO .04 If the technical advice request concerns matters within the jurisdiction of more than Examinations or EP or EO one group or office, a representative of the group that received the original technical Determinations or appeals advice request generally informs the EP or EO Examinations office or the EP or EO office if any matters in the Determinations office or the appeals office within 21 calendar days of receiving the request have been referred to request that— another group or office

(1) the matters within the jurisdiction of another group or office have been referred to the other group or office for consideration, and

(2) a representative of the other group or office will contact the EP or EO Examinations office or the EP or EO Determinations office or the appeals office about the referral of the technical advice request within 21 calendar days after receiving it in accordance with section 16.03 above.

Informs the EP or EO .05 The group representative will inform the EP or EO Examinations office or the EP Examinations or EP or EO or EO Determinations office or the appeals office that the case is being returned if subDeterminations or appeals stantial additional information is required to resolve an issue. Cases should be returned office if additional information for additional information when significant unresolved factual variances exist between the is needed statement of facts submitted by the EP or EO Examinations office or the EP or EO Determinations or the appeals office and the taxpayer. They should also be returned if major procedural problems cannot be resolved by telephone. The EP or EO Examinations office or the EP or EO Determinations office or the appeals office should promptly notify the taxpayer of the decision to return the case for further factual development or other reasons.

If only minor procedural deficiencies exist, the group will request the additional information in the most expeditious manner without returning the case.

Informs the EP or EO .06 If all necessary information has been provided, the group representative discusses Examinations or EP or EO with the EP or EO Examinations office or the EP or EO Determinations office or the Determinations or appeals office appeals office his or her tentative conclusion. of the tentative conclusion

If a tentative conclusion has not .07 If a tentative conclusion has not been reached because of the complexity of the issue, been reached, gives date estimated the group representative informs the EP or EO Examinations office or the EP or EO for tentative conclusion Determinations office or the appeals office of the estimated date the tentative conclusion will be made.

Advises the EP or EO .08 Because the group representative’s tentative conclusion may change during the Examinations or EP or EO preparation and review of the technical advice memorandum, the tentative conclusion Determinations or appeals office should not be considered final. Therefore, neither the group representative nor the EP or that preliminary conclusion EO Examinations office or the EP or EO Determinations or the appeals office should not final advise the taxpayer or the taxpayer’s representative of the tentative conclusion before the scheduling of the adverse conference.

Advises the EP or EO .09 In all cases, the group representative should inform the EP or EO specialist or Examinations or EP or EO appeals officer of EP or EO Technical’s final conclusions. The EP or EO specialist or the Determinations or appeals appeals officer should be offered the opportunity to discuss the issues and EP or EO office of final conclusions Technical’s final conclusions before the technical advice memorandum is issued.

If needed, requests additional .10 If, following the initial contact referenced in section 16.03 of this revenue proceinformation dure, it is determined, after discussion with the appropriate group manager or reviewer, that additional information is needed, a group representative will obtain the additional

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information from the taxpayer, the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE, in the most expeditious manner possible. Any additional information requested from the taxpayer by EP or EO Technical must be submitted by letter with a penalties of perjury statement within 21 calendar days after the request for information is made.

Penalties of perjury statement Additional information submitted to EP or EO Technical must be accompanied by the following declaration: “Under penalties of perjury, I declare that I have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request, for the information and such facts are true, correct, and complete.” This declaration must be signed and dated by the taxpayer, not the taxpayer’s representative. A stamped signature is not permitted.

A written request for an extension of time to submit additional information must be received by EP or EO Technical within the 21 day period, giving compelling facts and circumstances to justify the proposed extension. The group manager (or his or her delegate) of the office to which the case is assigned will determine whether to grant or deny the request for an extension of the 21-day period. No extension will be granted without the approval of the appropriate group manager (or his or her delegate). Except in rare and unusual circumstances, EP or EO Technical will not agree to an extension of more than 10 working days beyond the end of the 21-day period. There is no right to appeal the denial of a request for an extension.

If EP or EO Technical does not receive the additional information within 21 calendar days, plus any extensions granted by the appropriate group manager (or his or her delegate), EP or EO Technical will process the technical advice memorandum based on the existing record.

Requests taxpayer to send .11 Whether or not requested by the Service, any additional information submitted by additional information to the taxpayer should be sent to the headquarters office. Generally, the taxpayer needs only EP or EO Technical and a copy to to submit the original of the additional information to EP or EO Technical. However, in EP or EO Examinations or EP appropriate cases, EP or EO Technical may request additional copies of the information. or EO Determinations or Appeals Area Director, SB/SE-TE/GE Also, the taxpayer must send a copy to either the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE, for comment. Any comments must be furnished promptly to the appropriate group in EP or EO Technical. If the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE, does not have any comments, he or she must notify the group representative promptly.

Informs the taxpayer when .12 Generally, before replying to the request for technical advice, EP or EO Technical requested deletions will not informs the taxpayer orally or in writing of the material likely to appear in the technical be made advice memorandum that the taxpayer proposed be deleted but that the Service has determined should not be deleted.

If so informed, the taxpayer may submit within 10 calendar days any further information or other arguments supporting the taxpayer’s proposed deletions.

The Service will attempt to resolve all disagreements about proposed deletions before EP or EO Technical replies to the request for technical advice. However, the taxpayer does not have the right to a conference to resolve any disagreements about material to be deleted from the text of the technical advice memorandum. These matters, however, may be considered at any conference otherwise scheduled for the request.

Prepares reply in two parts .13 EP or EO Technical’s reply to a technical advice request is in two parts. Each part identifies the taxpayer by name, address, identification number, and year or years involved.

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The first part of the reply is a transmittal memorandum. In unusual cases, it is a way of giving the EP or EO Examinations office or the EP or EO Determinations office or the appeals office administrative or other information that under the nondisclosure statutes or for other reasons may not be discussed with the taxpayer.

The second part is the technical advice memorandum, which contains—

(1) a statement of the issues;

(2) a statement of the facts pertinent to the issues;

(3) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other precedents published in the Internal Revenue Bulletin, and court decisions;

(4) a discussion of the rationale underlying the conclusions reached by EP or EO Technical; and

(5) the conclusions of EP or EO Technical.

The conclusions give direct answers, whenever possible, to the specific issues raised by the EP or EO Examinations office or the EP or EO Determinations office or the appeals office. However, EP or EO Technical is not bound by the precise statement of the issues as submitted by the taxpayer or by the EP or EO Examinations office or the EP or EO Determinations office or the appeals office and may reframe the issues to be answered in the technical advice memorandum. The discussion of the issues will be in sufficient detail so that the EP or EO Examinations or the EP or EO Determinations or the appeals officials will understand the reasoning underlying the conclusion.

Accompanying a technical advice memorandum subject to § 6110, is a 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)).

Routes replies to appropriate office .14 Replies to requests for technical advice from EO Examinations Area managers and EO Determinations managers are addressed to:

Internal Revenue Service Attn: EO Mandatory Review MC 4920 DAL 1100 Commerce Street Dallas, TX 75242

The EO Mandatory Review Staff will ensure that copies are forwarded to the EO Examinations Area manager or the EO Determinations manager.

Replies to requests for technical advice from EP Examinations Area managers are addressed to:

Internal Revenue Service Attn: EP Mandatory Review 31 Hopkins Plaza Baltimore, MD 21201

The EP Mandatory Review Staff will ensure that copies are forwarded to the EP Examinations Area manager.

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Replies to requests for technical advice from EP Determinations managers are addressed to:

Internal Revenue Service Attn: EP Determinations Quality Assurance P.O. Box 2508 Cincinnati, OH 45201

Replies to requests for technical advice from an Appeals Area Director, SB/SE-TE/GE are routed to the appropriate appeals office through the Director, Appeals LMSB Operations, C:AP:LMSB.