SECTION 17. HOW DOES A

FIELD OR AREA OFFICE USE THE TECHNICAL ADVICE?

Generally applies advice in processing the taxpayer’s case

.16 The national office will send a copy of the reply to the request for technical advice to the division counsel of the operating division that has jurisdiction of the taxpayer’s tax return.

.01 The director or the area director, appeals, must process the taxpayer’s case on the basis of the conclusions in the technical advice memorandum unless—

(1) the director or the area director, appeals, decides that the conclusions reached by the national office in a technical advice memorandum should be reconsidered and requests

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a reconsideration. The reconsideration process may include a meeting held by the field participants who requested technical advice and the national office participants who prepared the memorandum;

(2) in the case of technical advice unfavorable to the taxpayer, the area director, appeals, decides to settle the issue under existing authority; or

(3) in the case of technical advice unfavorable to a Coordinated Industry Case (formerly Coordinated Examination Program) taxpayer on a coordinated issue within the Office of Pre-Filing and Technical Guidance, LMSB, on which appeals has coordinated issue papers containing settlement guidelines or positions, the team manager decides to settle the issue under the settlement authority delegated in Delegation Order No. 247, 1996–1 C.B. 356.

Except as provided in paragraph (1), (2), or (3) of this section 17.01, the conclusions in a technical advice memorandum involving a § 103 obligation and the issuer of this obligation must be treated by the director or the area director, appeals, as applying to the issuer and any holder of the obligation, unless the holder initiates a request for technical advice on the same issue addressed in the technical advice memorandum involving the issuer, and the national office issues a technical advice memorandum involving that issue and that holder.

Discussion with the taxpayer .02 The national office will not discuss the contents of the technical advice memorandum with the taxpayer or the taxpayer’s representative until the taxpayer has been given a copy of the technical advice memorandum by the field or area office. See section 16.09 of this revenue procedure concerning the time for discussing the tentative conclusion with the taxpayer or the taxpayer’s representative.

Gives copy to the taxpayer .03 The director or the area director, appeals, only after adopting the technical advice, gives the taxpayer—

(1) a copy of the technical advice memorandum described in section 16.14 of this revenue procedure; and

(2) the notice under § 6110(f)(1) of intention to disclose the technical advice memorandum (including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).

The director or appeals officer has 30 calendar days after receipt of a technical advice memorandum to either formally request reconsideration or give the adopted technical advice memorandum to the taxpayer. The director or appeals officer must notify the national office when the technical advice memorandum is given to the taxpayer.

These requirements do not apply to a technical advice memorandum involving a criminal or civil fraud investigation, or a jeopardy or termination assessment, as described in section 11.08 of this revenue procedure.

Taxpayer may protest deletions not made

.04 After receiving the notice under § 6110(f)(1) of intention to disclose the technical advice memorandum, the taxpayer may protest the disclosure of certain information in it. The taxpayer must submit a written statement within 20 calendar days identifying those deletions not made by the Service that the taxpayer believes should have been made. The taxpayer must also submit a copy of the version of the technical advice memorandum proposed to be open to public inspection with brackets around the deletions proposed by the taxpayer that have not been made by the national office.

Generally, the national office considers only the deletion of material that the taxpayer has proposed be deleted or other deletions as required under § 6110(c) before the national

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When no copy is given to the taxpayer