SECTION 11. HOW ARE

REQUESTS HANDLED?

Taxpayer notified .01 Regardless of whether the taxpayer or the Service initiates the request for technical advice, the field or area office: (1) will notify the taxpayer that technical advice is being requested; and (2) at or before the time the request is submitted to the national office, will give to the taxpayer a copy of the arguments that are being provided to the national office in support of the Service’s position.

If the examining officer or appeals officer initiates the request for technical advice, he or she will give to the taxpayer a copy of the statement of the pertinent facts and the issues proposed for submission to the national office.

This section 11.01 does not apply to a technical advice memorandum described in section 11.08 of this revenue procedure.

Conference offered .02 When notifying the taxpayer that technical advice is being requested, the examining officer or appeals officer will also tell the taxpayer about the right to a conference in the national office if an adverse decision is indicated, and will ask the taxpayer whether such a conference is desired.

Sec. 11.02 2002–1 I.R.B 97 January 7, 2002

If the taxpayer disagrees with the Service’s statement of facts

If the Service disagrees with the taxpayer’s statement of facts

If the interpretation of a foreign law or foreign document is a material fact

If the taxpayer has not submitted the required deletions statement

.03 If the examining officer or appeals officer initiates the request for technical advice, the taxpayer has 10 calendar days after receiving the statement of facts and specific issues to submit to that officer a written statement specifying any disagreement on the facts and issues. A taxpayer who needs more than 10 calendar days must justify in writing the request for an extension of time. The extension is subject to the approval of the territory manager or the area director, appeals.

After receiving the taxpayer’s statement of the areas of disagreement, every effort should be made to reach an agreement on the facts and the specific points at issue before the matter is referred to the national office. If an agreement cannot be reached, the field or area office will notify the taxpayer in writing. Within 10 calendar days after receiving the written notice, the taxpayer may submit a statement of the taxpayer’s understanding of the facts and the specific points at issue. A taxpayer who needs more than 10 calendar days to prepare the statement of understanding must justify in writing the request for an extension of time. The extension is subject to the approval of the territory manager or the area director, appeals. Both the statements of the taxpayer and the field or area office will be forwarded to the national office with the request for technical advice.

When the director or the area director, appeals, and the taxpayer cannot agree on the material facts and the request for technical advice does not involve the issue of whether a letter ruling should be modified or revoked, the national office, at its discretion, may refuse to provide technical advice. If the national office chooses to issue technical advice, the national office will base its advice on the facts provided by the field or area office.

If a request for technical advice involves the issue of whether a letter ruling should be modified or revoked, the national office will issue technical advice.

.04 If the taxpayer initiates the request for technical advice and the taxpayer’s statement of the facts and issues is not wholly acceptable to the field or area office, the Service will notify the taxpayer in writing of the areas of disagreement. The taxpayer has 10 calendar days after receiving the written notice to reply to it. A taxpayer who needs more than 10 calendar days must justify in writing the request for an extension of time. The extension is subject to the approval of the territory manager or the area director, appeals.

If an agreement cannot be reached, both the statements of the taxpayer and the field or area office will be forwarded to the national office with the request for technical advice. When the disagreement involves material facts essential to the preliminary assessment of the case, the director or the area director, appeals, may refuse to refer a taxpayer initiated request for technical advice to the national office.

If the director or the area director, appeals, submits a case involving a disagreement of the material facts, the national office, at its discretion, may refuse to provide technical advice. If the national office chooses to issue technical advice, the national office will base its advice on the facts provided by the field or area office.

.05 If the interpretation of a foreign law or foreign document is a material fact, the national office, at its discretion, may refuse to provide technical advice. This section 11.05 applies whether or not the field or area office and the taxpayer dispute the interpretation of a foreign law or foreign document. The interpretation of a foreign law or foreign document means making a judgment about the import or effect of the foreign law or document that goes beyond its plain meaning.

.06 When the field or area office initiates the request for technical advice, the taxpayer has 10 calendar days after receiving the statement of facts and issues to be submitted to the national office to provide the deletions statement required under § 6110(c). See

Sec. 11.06 January 7, 2002 98 2002–1 I.R.B.

Section 6104 of the Internal Revenue Code (Applications for exemption and letter rulings issued to certain exempt organizations open to public inspection)

section 10.02 of this revenue procedure. If the taxpayer does not submit the deletions statement, the director or the area director, appeals, will tell the taxpayer that the statement is required.

When the taxpayer initiates the request for technical advice and does not submit a deletions statement with the request, the director or the area director, appeals, will ask the taxpayer to submit the statement. If the director or the area director, appeals, does not receive the deletions statement within 10 calendar days after asking the taxpayer for it, the director or the area director, appeals, may decline to submit the request for technical advice.

However, if the director or the area director, appeals, decides to request technical advice, whether initiated by the field or area office or by the taxpayer, in a case in which the taxpayer has not submitted the deletions statement, the national office will make those deletions that the Commissioner of Internal Revenue determines are required by § 6110(c).

.07 The requirements for submitting statements and other materials or proposed deletions in technical advice memorandums before public inspection is allowed do not apply to requests for any documents to the extent that § 6104 applies.

Criminal or civil fraud cases .08 The provisions of this section (about referring issues upon the taxpayer’s request, telling the taxpayer about the referral of issues, giving the taxpayer a copy of the arguments submitted, submitting proposed deletions, and granting conferences in the national office) do not apply to a technical advice memorandum described in § 6110(g)(5)(A) that involves a matter that is the subject of or is otherwise closely related to a criminal or civil fraud investigation, or a jeopardy or termination assessment.

In these cases, a copy of the technical advice memorandum is given to the taxpayer after all proceedings in the investigations or assessments are complete, but before the Commissioner mails the notice of intention to disclose the technical advice memorandum under § 6110(f)(1). The taxpayer may then provide the statement of proposed deletions to the national office.