SECTION 16. HOW DOES A

FIELD OR AREA OFFICE USE THE TECHNICAL ADVICE?

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

(1) the director or the area director, appeals, 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 area director, appeals, 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 Office of Pre-Filing and Technical Guidance, LMSB, on which appeals has coordinated issue papers containing settlement guidelines or positions, the team 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 director or the area director, appeals, 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 of the technical advice memorandum by the field or area 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.

Gives copy to the taxpayer .03 The director or the area director, appeals, 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.

Sec. 15.15 2001–1 I.R.B. 103 January 2, 2001

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