SECTION 5. SELECTING TAXPAYERS

FOR LMSB PFA PROGRAM

.01 Jurisdiction. The LMSB Industry Director with jurisdiction over the taxpayer will make the final decision whether to proceed with the taxpayer’s request for an LMSB PFA. (For purposes of this revenue procedure, the term “LMSB Industry Director” includes a duly authorized designee of an LMSB Industry Director.)

.02 Criteria for selection. The criteria for selecting taxpayers to participate in the LMSB PFA program include:

(1) The suitability of the issue presented for the LMSB PFA program;

(2) The direct or indirect impact of an LMSB PFA upon other years, issues, taxpayers, or related cases;

(3) The availability of Service resources;

(5) The likelihood that the LMSB PFA may result in two or more persons taking contrary positions with respect to an item or transaction (“whipsaw”);

(6) The time remaining until the due date of the return to which the LMSB PFA relates; and

(7) The overall probability of completing the process and entering into an LMSB PFA by the proposed date for filing the taxpayer’s return.

.03 Notification. A representative of LMSB will contact the taxpayer within 14 business days of receipt of the taxpayer’s request for an LMSB PFA to discuss the potential suitability of the issue(s) for inclusion in the LMSB PFA program. Thereafter, a representative of LMSB will inform the taxpayer in writing whether it has been selected for participation in the LMSB PFA program.

.04 Requests not accepted. A taxpayer is not entitled to a conference to appeal a decision not to go forward with the LMSB PFA process. A taxpayer not selected for the PFA program remains eligible for other procedures for early issue resolution, including the Accelerated Issue Resolution (AIR) program (see Rev. Proc. 94–67, 1994–2 C.B. 800).