SECTION 6. UNDER WHAT

CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS?

consider all letter ruling requests unless the issue is covered by section 7 of this revenue procedure, Rev. Proc. 2001–3, or Rev. Proc. 2001–7.

Directors issue determination letters only if the question presented is specifically answered by a statute, tax treaty, or regulation, or by a conclusion stated in a revenue ruling, opinion, or court decision published in the Internal Revenue Bulletin.

In income and gift .01 In income and gift tax matters, directors issue determination letters in response to tax matters taxpayers’ written requests on completed transactions that affect returns over which they have examination jurisdiction. A determination letter usually is not issued for a question concerning a return to be filed by the taxpayer if the same question is involved in a return already filed.

Normally, directors do not issue determination letters on the tax consequences of proposed transactions. However, a director may issue a determination letter on the replacement, even though not yet made, of involuntarily converted property under § 1033, if the taxpayer has filed an income tax return for the year in which the property was involuntarily converted.

In estate tax matters .02 In estate tax matters, directors issue determination letters in response to written requests affecting the estate tax returns over which the directors have examination jurisdiction. They do not issue determination letters on matters concerning the application of the estate tax to the prospective estate of a living person.

In generation-skipping .03 In generation-skipping transfer tax matters, directors issue determination letters in transfer tax matters response to written requests affecting the generation-skipping transfer tax returns over which the directors have examination jurisdiction. They do not issue determination letters on matters concerning the application of the generation-skipping transfer tax before the distribution or termination takes place.

In employment and .04 In employment and excise tax matters, directors issue determination letters in excise tax matters response to written requests from taxpayers on completed transactions over which they have examination jurisdiction.

Requests for a determination of employment status (Form SS-8) from taxpayers (other than federal agencies and instrumentalities) must be submitted to the appropriate Service office listed on the current Form SS-8 (Rev. June 1997) and not directly to the national office. See also section 5.09 of this revenue procedure.

Circumstances under which .05 A director will not issue a determination letter in response to any request if— determination letters are not issued by a director (1) it appears that the taxpayer has directed a similar inquiry to the national office;

(2) the same issue involving the same taxpayer or a related taxpayer is pending in a case in litigation or before an area office;

(3) the determination letter is requested by an industry, trade association, or similar group; or

(4) the request involves an industry-wide problem.

Sec. 5.15 January 2, 2001 18 2001–1 I.R.B.

Under no circumstances will a director issue a determination letter unless it is clearly shown that the request concerns a return that has been filed or is required to be filed and over which the director has, or will have, examination jurisdiction.

A director will not issue a determination letter on an employment tax question if the specific question for the same taxpayer or a related taxpayer has been, or is being, considered by the Central Office of the Social Security Administration or the Railroad Retirement Board.

A director also will not issue a determination letter on determining constructive sales price under § 4216(b) or § 4218(c), which deal with special provisions applicable to the manufacturers excise tax. The national office, however, will issue letter rulings in this area. See section 7.05 of this revenue procedure.

Requests concerning income, .06 A request received by a director on a question concerning an income, estate, or gift estate, or gift tax returns tax return already filed generally will be considered in connection with the examination of the return. If a response is made to the request before the return is examined, it will be considered a tentative finding in any later examination of that return.

Attach a copy of determination .07 A taxpayer who, before filing a return, receives a determination letter about any letter to taxpayer’s return transaction that has been consummated and that is relevant to the return being filed should attach a copy of the determination letter to the return when it is filed.

Review of determination letters .08 Determination letters issued under sections 6.01 through 6.04 of this revenue procedure are not reviewed by the national office before they are issued. If a taxpayer believes that a determination letter of this type is in error, the taxpayer may ask the director to reconsider the matter or to request technical advice from the national office as explained in Rev. Proc. 2001–2, this Bulletin.