SECTION 13. HOW ARE

REQUESTS FOR TECHNICAL ADVICE WITHDRAWN?

.05 If the request for technical advice concerns a “frivolous issue,” as described in section 8.01 of this revenue procedure, technical advice will not be given, and the examining officer or appeals officer will deny the taxpayer’s request for referral. The taxpayer may appeal the decision of the examining officer or appeals officer; however, if the territory manager or the area director, appeals, determines that no technical advice will be sought, an expedited review procedure will be followed.

This expedited review procedure will consist of the following:

(1) the territory manager or the area director, appeals, will inform the appropriate official described in section 12.04 of this revenue procedure (the Industry Director, LMSB; the Area Director, SB/SE; the Director, Compliance, W&I; the Director, International, LMSB; the Director, Federal, State, and Local Governments; the Director, Tax Exempt Bonds; the Director, Indian Tribal Governments; the Director, Appeals LMSB Operating Unit or the Director, Appeals SBSE Operating Unit) of the request for review and the basis for the denial, but will not forward the taxpayer’s written request and statements, unless requested to do so by the official;

(2) the field office or area office will not suspend action on the issue;

(3) within 15 days, the official will notify the territory manager or area director, appeals, whether the proposed denial is approved or disapproved. The official may also determine that the expedited process is not warranted and request all of the information supplied by the taxpayer and allow suspension of action on the item while the denial is reviewed; and

(4) the field office or area office will then notify the taxpayer of the result of the review of the denial.

Taxpayer notified .01 Once a request for technical advice has been sent to the national office, only a director or an area director, appeals, may withdraw a request for technical advice. He or she may ask to withdraw a request at any time before the responding transmittal memorandum for the technical advice is signed.

The director or the area director, appeals, as appropriate, must notify the taxpayer in writing of an intent to withdraw the request for technical advice except—

(1) when the period of limitation on assessment is about to expire and the taxpayer has declined to sign a consent to extend the period; or

(2) when the notification would be prejudicial to the best interests of the Government.

If the taxpayer does not agree that the request for technical advice should be withdrawn, the procedures in section 12 of this revenue procedure must be followed.

National office may provide views .02 When a request for technical advice is withdrawn, the national office may send its views to the director or the area director, appeals, when acknowledging the withdrawal request. This memorandum may constitute Chief Counsel Advice, as defined in § 6110(i), subject to disclosure under § 6110. In an appeals case, acknowledgment of the withdrawal request should be sent to the appropriate area office, through the Chief, Appeals, C:AP:LMSB. In appropriate cases, the subject matter may be published as a revenue ruling or as a revenue procedure.

Sec. 13.02 2002–1 I.R.B 101 January 7, 2002