SECTION 18. HOW MAY

RETROACTIVE EFFECT BE LIMITED?

Taxpayer may request that .01 Under § 7805(b), the Associate Chief Counsel (Corporate), the Associate Chief retroactivity be limited Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and Administration), or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as the Commissioner’s delegate, may prescribe the extent, if any, to which a technical advice memorandum will be applied without retroactive effect.

A taxpayer for whom a technical advice memorandum was issued or for whom a technical advice request is pending may request that the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions & Products), the Associate Chief Counsel (Income Tax & Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs & Special Industries), the Associate Chief Counsel (Procedure and Administration), or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate, limit the retroactive effect of any holding in the technical advice memorandum or of any subsequent modification or revocation of the technical advice memorandum.

When germane to a pending technical advice request, a taxpayer should request to limit the retroactive effect of the holding of the technical advice memorandum early during the consideration of the technical advice request by the national office. This § 7805(b) request should be made initially as part of that pending technical advice request. The national office, however, will consider a § 7805(b) request to limit the retroactive effect of the holding if the request is made at a later time.

Sec. 17.06 2001–1 I.R.B. 105 January 2, 2001

Form of request to limit .02 When a technical advice memorandum that concerns a continuing transaction is retroactivity — continuing modified or revoked by, for example, issuance of a subsequent revenue ruling or tempotransaction before examination rary or final regulations, a request to limit the retroactive effect of the modification or of return revocation of the technical advice memorandum must be made in the form of a request for a letter ruling if the request is submitted before an examination of the return pertaining to the transaction that is the subject of the request for the letter ruling. The requirements for a letter ruling request are given in sections 8 and 12.11 of Rev. Proc. 2001–1.

Form of request to limit .03 In all other cases during the course of an examination of a taxpayer’s return by the retroactivity — in all other cases director or during consideration of the taxpayer’s return by the area director, appeals (including when the taxpayer is informed that the director or the area director, appeals, will recommend that a technical advice memorandum, letter ruling, or determination letter previously issued to, or with regard to, the taxpayer be modified or revoked), a taxpayer’s request to limit retroactivity must be made in the form of a request for technical advice.

The request must meet the general requirements of a technical advice request, which are given in sections 6, 7, and 9 of this revenue procedure. The request must also—

(1) state that it is being made under § 7805(b);

(2) state the relief sought;

(3) explain the reasons and arguments in support of the relief sought (including a discussion of the five items listed in section 17.06 of this revenue procedure and any other factors as they relate to the taxpayer’s particular situation); and

(4) include any documents bearing on the request.

The taxpayer’s request, including the statement that the request is being made under § 7805(b), must be submitted to the director or the area director, appeals, who must then forward the request to the national office for consideration.

Taxpayer’s right to a conference .04 When a request for technical advice concerns only the application of § 7805(b), the taxpayer has the right to a conference in the national office in accordance with the provisions of section 13 of this revenue procedure. In accordance with section 13.02 of this revenue procedure, the examining officer or appeals officer will be offered the opportunity to attend the conference on the § 7805(b) issue. Section 13.02 of this revenue procedure also provides that other Service representatives are allowed to participate in the conference.

If the request for application of § 7805(b) is included in the request for technical advice on the substantive issues or is made before the conference of right on the substantive issues, the § 7805(b) issues will be discussed at the taxpayer’s one conference of right.

If the request for the application of § 7805(b) is made as part of a pending technical advice request after a conference has been held on the substantive issues and the Service determines that there is justification for having delayed the request, then the taxpayer will have the right to one conference of right concerning the application of § 7805(b), with the conference limited to discussion of this issue only.

SECTION 19. WHAT .01 The offices and titles in this revenue procedure are based on the current organizaSIGNIFICANT CHANGES tion of the Service. The operating divisions of the Service are described in section 1. HAVE BEEN MADE TO REV. PROC. 2000–2? .02 Section 5.01(3)(b)(i) of Rev. Proc. 2000–2 has been deleted because of security concerns regarding, and the lack of use of, the drop box at the IRS main building. Accordingly, § 301.9100 requests may no longer be delivered to the drop box.

.03 Section 5.02 of Rev. Proc. 2000–2 has been deleted because the two-year effective period of Rev. Proc. 98–17 has expired. Accordingly, section 5.01(1) through 5.01(4) of Sec. 19 January 2, 2001 106 2001–1 I.R.B.

Rev. Proc. 2000–2 have been redesignated as sections 5.01 through 5.04 in this revenue procedure.

.04 Section 9.01(6) is added to require the submission of a written statement regarding the interpretation of a substantive provision of an income or estate tax treaty whether the request for technical advice is initiated by the taxpayer or by a field or area office.

.05 Section 9.03 is amended to provide the new address for area offices to send a request for technical advice.

.06 Section 9.04 is amended to provide that the field or area office will send a copy of the request for technical advice to the division counsel of the operating division that has jurisdiction of the taxpayer’s tax return.

.07 Section 12.02 is amended to clarify that when the national office sends its views to the director or the area director, appeals, when acknowledging the withdrawal of a request for technical advice, this memorandum may constitute Chief Counsel Advice, subject to disclosure.

.08 Section 15.16 is added to provide that the national office will send a copy of the reply to the request for technical advice to the division counsel of the operating division that has jurisdiction of the taxpayer’s tax return.