Part III. — Internal Revenue Bulletin 2002-37

deemed accepted if the Service does not notify the issuer regarding the request within 90 days after the Service’s receipt of the request.

The Service will notify the issuer in writing if it is unable to make a determination, based on the issuer’s request for an extension, that the failure to file the statement was not due to willful neglect. The notification will be made within 90 days of the Service’s receipt of the issuer’s request and will inform the issuer that the Service has been unable to make the determination. In the notification, the Service may request additional information from the issuer.
If, after the notification under section 3.03, and based on the information submitted, the Service determines that the failure to file the statement was not due to willful neglect, it will so inform the issuer in writing.
If, after the notification under section 3.03, and based on the information submitted, it appears that a determination adverse to the issuer will be made, the issuer will be entitled, upon request, to a conference with the Service. If the issuer requests a conference, no adverse determination (whether preliminary or otherwise) will be made prior to the conference. If, after the conference, the Service determines that the failure to file the statement was not due to willful neglect, it will so inform the issuer in writing.
If the Service determines that the failure to timely file the statement is not due to willful neglect, then the filing of the statement in section 3.01 above is accepted, and the information reporting requirement of section 149(e)(1) is deemed satisfied.
If the Service determines that the failure to timely file the statement is due to willful neglect, the Service will issue a preliminary adverse determination in writing to the issuer that the interest on the bond is not excludable from gross income under section 103(a). In such circumstances, the procedures set forth in Rev. Proc. 99– 35, 1999–2 C.B. 501 (procedures for administrative appeal of proposed adverse determination of tax-exempt status of bond issue), or its successor shall be followed.

26 CFR 1.149(e)1: Extension of time to file infor- mation reports.

Rev. Proc. 2002–48