SECTION 5. INFORMATION

REQUIRED FOR RULING REQUESTS BY SECURITIES PARTNERSHIPS THAT DO NOT QUALIFY FOR AUTOMATIC PERMISSION

.01 In general. This section describes the information and representations that a securities partnership not described in section 4 of this revenue procedure must submit when requesting a ruling permitting the aggregation of built-in gains and losses from contributed property for purposes of making § 704(c) and reverse § 704(c) allocations. Taxpayers should be aware that additional information may be required. See also section 8 of Rev. Proc. 2001–1, 2001–1 I.R.B. 1 (or its successor), which outlines the general requirements concerning the information to be submitted as part of a ruling request.

.02 Representations . The ruling request must include the following representations:

(1) The partnership qualifies as a “securities partnership” as defined in § 1.704–3(e)(3)(iii);

(2) The partnership will make revaluations at least annually in accordance with § 1.704–3(e)(3)(iii)(B)(2)(ii);

(3) The burden of making § 704(c) allocations separately from reverse § 704(c) allocations is substantial; and

(4) The partnership’s contributions, revaluations, and the corresponding allocations of tax items are not made with a view to shifting the tax consequences of built-in gain or loss among the partners in a manner that would substantially reduce the present value of the partners’ aggregate tax liability.

.03 Information . The following information must be submitted with the ruling request:

(1) An explanation of the business and tax reasons for the formation of the partnership;

(2) A detailed description of each partner;

(3) A detailed description of each type of property to be contributed including its fair market value and adjusted basis;

(4) The aggregate fair market value and adjusted basis of the property to be contributed;

(5) The aggregate gross built-in gains and aggregate gross built-in losses in the property to be contributed;

(6) A representation that the partner is contributing all of its assets to the partnership or an explanation as to how the assets to be contributed to the partnership were chosen;

(7) A description of the aggregation method that the partnership will use;

(8) Copies of the partnership’s organizational documents, if available; and

(9) Copies of any proxy statements, information statements, marketing materials, or prospectuses filed, distributed, or prepared by the partnership or any of its partners in connection with the formation of, or contribution of property to, the partnership.