SECTION 17. HOW DOES AN

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

Generally applies advice in .01 The EP or EO Examinations Area manager or the EP or EO Determinations manprocessing the taxpayer’s case ager or the Appeals Area Director, SB/SE-TE/GE, must process the taxpayer’s case on the basis of the conclusions in the technical advice memorandum unless—

(1) the EP or EO Examinations Area manager or the EP or EO Determinations manager or the Appeals Area Director, SB/SE-TE/GE, decides that the conclusions reached by EP or EO Technical in a technical advice memorandum should be reconsidered, or

(2) the Appeals Area Director, SB/SE-TE/GE, 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 Appeals Area Director, SB/SETE/GE, 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 office or the EP or EO Determinations office or the appeals office

Gives copy to the taxpayer .03 The EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE, 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 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 deletions .04 After receiving the notice under § 6110(f)(1) of intention to disclose the technical not made advice memorandum, the taxpayer may protest the disclosure of certain information in it.

2001–1 I.R.B. 187 January 2, 2001

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 the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE. 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 to the .05 If EP or EO Technical tells the EP or EO Examinations office or the EP or EO taxpayer Determinations office or the Appeals Area Director, SB/SE-TE/GE, that a copy of the technical advice memorandum should not be given to the taxpayer and the taxpayer requests a copy, the EP or EO Examinations office or the EP or EO Determinations office or the Appeals Area Director, SB/SE-TE/GE, will tell the taxpayer that no copy will be given.