SECTION 11. HOW ARE

PRE-SUBMISSION CONFERENCES SCHEDULED?

Pre-submission conferences are required when it is likely the field or area office will request a TEAM and encouraged for all TAM requests

Purpose of a pre-submission conference

(5) claims that a taxpayer can refuse to pay taxes on the basis of opposition to certain governmental expenditures;

(6) claims that taxes apply only to federal employees; only to residents of Puerto Rico, Guam, the U.S. Virgin Islands, the District of Columbia, or “federal enclaves”; or that §§ 861 through 865 or any other provision of the Internal Revenue Code imposes taxes on U.S. citizens and residents only on income derived from foreign based activities;

(7) claims that wages or personal service income are not “income,” are “nontaxable receipts,” or “are a nontaxable exchange for labor”;

(8) claims that income tax withholding by an employer on wages is optional; or

(9) other claims the courts have characterized as frivolous or groundless.

.02 A case remains under the jurisdiction of the director even though an area office has the identical issue under consideration in the case of another taxpayer (not related within the meaning of § 267 or § 1504) in a different transaction. With respect to the same taxpayer or the same transaction, when the issue is under the jurisdiction of an area office and the applicability of more than one kind of federal tax is dependent upon the resolution of that issue, a director may not request a TAM or a TEAM on the applicability of any of the taxes involved.

A director or an area director, appeals may not request a TAM or a TEAM on an issue if the same issue of the same taxpayer (or of a related taxpayer within the meaning of § 267 or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) is in a docketed case involving the same taxpayer (or for a related taxpayer or a member of an affiliated group of which the taxpayer is also a member) for any taxable year. If a case is docketed for an estate tax issue of a taxpayer while a request for a TAM or a TEAM on the same issue of the same taxpayer is pending, the national office may issue the TAM or the TEAM if the appropriate appeals officer and government counsel agree, by memorandum, to the issuance of the TAM or the TEAM.

.01 In an effort to promote expeditious processing of a request for a TAM or a TEAM, the national office will confer with the field or area office and the taxpayer prior to the time a request for a TAM or a TEAM is submitted to the national office at the office’s or the taxpayer’s request. To facilitate prompt action on a request for a TAM, the taxpayer is encouraged to request a pre-submission conference. In all cases where a TEAM will be requested, a pre-submission conference involving the taxpayer and the field or area office is mandatory (except for two situations where taxpayer agreement is not a prerequisite for a TEAM, see section 11.02 of this revenue procedure). A request for a pre-submission conference should be made only after the field or area office determines that it likely will request a TAM or a TEAM. If the request for a TAM or a TEAM will include issues requiring the involvement of more than one Associate Chief Counsel office, representatives from each Associate Chief Counsel office involved must participate in the pre-submission conference.

.02 A pre-submission conference is intended to facilitate agreement between the parties as to the appropriate scope of the request for a TAM or a TEAM, the factual information and documents to be included in the request, any collateral issues that either should or should not be included in the request, and any other substantive or procedural considerations that will allow the national office to provide the parties with a TAM or a TEAM as expeditiously as possible.

During the pre-submission conference, the parties should determine whether the issue(s) are appropriate for a TEAM. The parties should discuss the framing of the issue(s), what back

Sec. 11.02 2003–1 I.R.B. 85 January 6, 2003

Request for a pre-submission conference must be submitted in writing by the field or area office

Branch will contact the field or area office to arrange the pre-submission conference

Pre-submission conferences for TAMs and TEAMs generally conducted by telephone

ground information and documents are required and when the request for TAM or TEAM will be submitted to the national office. Where more than one Associate Chief Counsel office will be involved in responding to a proposed TEAM, each must agree that the request is suitable for TEAM procedures and that the necessary coordination can be provided within the TEAM time frames.

If the parties do not agree that the TEAM procedures are appropriate, then the request will be processed subject to the procedures in this revenue procedure for a TAM, except that taxpayer agreement is not required for the following:

(1) consideration of whether a letter ruling should be revoked or modified because the field or area office has determined that there are material differences from the controlling facts on which the original ruling was based. Per section 12.03 of Rev. Proc. 2003–1 (this Bulletin), such requests will be subject to the TEAM procedures;

(2) as described in section 14.08 of this revenue procedure, TAMs and TEAMs related to criminal or civil fraud cases or jeopardy or termination assessments.

A pre-submission conference is not intended to create an alternative procedure for determining the merits of the substantive positions advocated by the field or area office or by the taxpayer. The conference is intended only to facilitate the overall TAM or TEAM process.

.03 A request for a pre-submission conference for a TAM or a TEAM must be submitted in writing by the field or area office. The request should identify the Associate Chief Counsel office expected to have jurisdiction over the request for a TAM or a TEAM. The request should include a brief explanation of the primary issue so that an assignment to the appropriate branch can be made. The field or area office is strongly encouraged to coordinate with field counsel regarding TAM pre-submission conferences (coordination with field counsel is required for TEAM pre-submission conferences). If the request involves a designated issue or an industry issue under the Office of Pre-Filing and Technical Guidance, LMSB, the field office is strongly encouraged to coordinate with the technical advisor. If the request is from Appeals and involves a coordinated issue or emerging issue under the Appeals Industry Specialization Program (ISP) or Appeals Coordinated Issue (ACI) Program, the area office must coordinate with the Appeals ISP/ACI Coordinator.

To request a pre-submission conference for a TAM, an original and one copy of the request should be submitted to the appropriate address listed in section 12.03 of this revenue procedure.

To request a pre-submission conference for a TEAM, the request must be made by FAX to the Technical Services Staff at 202–622–3501 and must be confirmed in writing by the director or area director, appeals. The receipt of the FAX will be confirmed by the national office within one working day.

.04 If a TAM is requested, within 5 working days after it receives the request, the branch assigned responsibility for conducting the pre-submission conference will contact the field or area office to arrange a mutually convenient time for the parties to participate in the conference. The conference generally should be held within 30 calendar days after the field or area office is contacted. The field or area office will be responsible for coordinating with the taxpayer as well as with any other Service personnel whose participation the field or area office believes would be appropriate.

If a TEAM is requested, the branch assigned responsibility for conducting the presubmission conference will contact the field within 5 calendar days of receiving the request to schedule the conference. The conference will be held within 15 calendar days of the assigned branch’s call to the field.

.05 Generally, pre-submission conferences for TAMs and TEAMs will be held by telephone, unless the parties specifically request a meeting in person. In no event will a request for an in-person pre-submission conference on a TEAM be allowed to delay the conference beyond the 15-day period set forth above in section 11.04 of this revenue procedure.

Sec. 11.02 January 6, 2003 86 2003–1 I.R.B.

Certain information required to be submitted to the national office prior to the pre-submission conference

Manner of submitting pre-submission materials

Pre-submission conference may not be taped

Discussion of substantive issues is not binding on the Service