SECTION 10. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2002–9 is modified and amplified to include this accounting method change in the APPENDIX. Rev. Proc. 2001–46 is amplified to address the reclassification of a Class II or III railroad to a Class I railroad.

DRAFTING INFORMATION

The principal author of this revenue procedure is Patricia Zweibel of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue procedure, contact Ms. Zweibel at (202) 622–5020 (not a tollfree call).

APPENDIX

Department of the Treasury Internal Revenue Service

Closing Agreement on Final Determination Covering Specific Matters

Under § 7121 of the Internal Revenue Code of 1986, [Taxpayer’s name, address, telephone number, and identifying number] (“the taxpayer”) and the Commissioner of Internal Revenue make the following closing agreement:

WHEREAS:

1. The taxpayer is a Class II or Class III railroad, as designated by the Surface Transportation Board, that is not required to file a Form R–1.

2. The issue covered in this closing agreement is the taxpayer’s treatment of track structure expenditures incurred as a result of performing various activities to acquire, construct, maintain, repair, and improve track structure. The definition of “track structure expenditures” and other

October 15, 2002 707 2002–41 I.R.B.

(2) It is subject to the Internal Revenue Code sections that expressly provide that effect be given to their provisions (including any stated exception for § 7122) notwithstanding any law or rule of law; and

(3) If it relates to a tax period ending after the date of this agreement, it is subject to any law enacted after the agreement date, that applies to the tax period.

By signing, the parties certify that they have read and agreed to the terms of this document.

Taxpayer (other than individual):

sions of the closing agreement; (b) there has been no taxpayer fraud, malfeasance, or misrepresentation of a material fact; (c) there has been no change in the material facts on which the closing agreement was based; and (d) there has been no change in the applicable law on which the closing agreement was based.

6. That the Service is not precluded from challenging the computation of the track maintenance allowance for any taxable year covered by this closing agreement on a basis unrelated to the track maintenance allowance method (for example, that all or

a portion of the amount is not incurred under § 461 or that the taxpayer has not properly applied the uniform capitalization rules of § 263A and the regulations thereunder).

7. That the taxpayer accepts this settlement and agrees to the applicable terms of Rev. Proc. 2002–65.

This agreement is final and conclusive except:

(1) The matter it relates to may be reopened in the event of fraud, malfeasance, or misrepresentation of a material fact;

By:__________________ Date:________________

Title:_________________

Commissioner of Internal Revenue:

By:_________________ Date:_________________

Title:_________________

Instructions

[This agreement must be signed and filed in triplicate. (All copies must have original signatures.) The original and copies of the agreement must be identical. The name of the taxpayer must be stated accurately. The agreement may relate to one or more years.

If an attorney or agent signs the agreement for the taxpayer, the power of attorney (or a copy) authorizing that person to sign must be attached to the agreement.

If the taxpayer is a corporation, the agreement must be dated and signed with the name of the corporation, the signature and title of an authorized officer or officers, or the signature of an authorized attorney or agent. It is not necessary that a copy of an enabling corporate resolution be attached.

Use additional pages if necessary and identify them as part of this agreement.

Please see Rev. Proc. 68–16, 1968–1 C.B. 770, for a detailed description of practices and procedures applicable to most closing agreements.]

I have examined the specific matters involved and recommend the acceptance of the proposed agreement

(Receiving Officer)______________ (Date)________________

(Title)________________

I have examined the specific matters involved and recommend the acceptance of the proposed agreement

(Receiving Officer)______________ (Date)________________

(Title)________________

2002–41 I.R.B. 708 October 15, 2002