SECTION 16. HOW DOES A

TAXPAYER APPEAL A DECISION REGARDING WHETHER TO SEEK A TAM OR TEAM?

In these cases, a copy of the TAM or a TEAM is given to the taxpayer after all proceedings in the investigations or assessments are complete, but before the Commissioner mails the notice of intention to disclose the TAM or the TEAM under § 6110(f)(1). The taxpayer may then provide the statement of proposed deletions to the national office.

.09 If, at the outset, the assigned reviewer in the national office determines that general guidance should be published regarding the issue presented, the reviewer will immediately notify the Associate Chief Counsel. The reviewer will attempt to make this determination and recommendation as soon as possible, which may occur during the pre-submission conference. The criteria for this determination should include whether the issue has a broad application to similarly situated taxpayers or an industry, or resolution of the issue is important to a clear understanding of the tax laws. If the Associate Chief Counsel, in consultation with Division Counsel and the Operating Division, agrees that general guidance is desirable, an expedited guidance project will be initiated. The Associate Chief Counsel, in consultation with Division Counsel and the Operating Division, also will determine the appropriate resolution of the TAM or TEAM request, i.e., whether it may be issued in advance of the general guidance project or must await the publication of guidance. In general, except where policy issues and concerns regarding proper administration of the tax laws require otherwise, the TAM or TEAM will be issued in advance of the published guidance.

In general, the same procedures set forth above in section 14 should be used for handling a TEAM request that are used for handling a TAM request, with the following modifications:

Within 5 calendar days after the assigned branch in the national office receives the TEAM request, the assigned attorney in the national office will contact the field and the field counsel to confirm the receipt of the request for advice.

The assigned national office attorney and reviewer should also evaluate the issue(s) presented in the TEAM request to confirm that the issue(s) is appropriate for the TEAM procedures. If the reviewer has reservations about whether the TEAM procedures should apply, the reviewer should discuss those reservations with the Associate Chief Counsel with jurisdiction. If, notwithstanding the pre-submission discussion, the Associate Chief Counsel with jurisdiction concludes that the issue is too complex, or is otherwise impractical to resolve in the 60-day time frame provided below, the Associate Chief Counsel with jurisdiction must submit a memorandum to the Chief Counsel requesting that the case be excluded from the TEAM procedures and be treated as a TAM in accordance with the TAM procedures set forth in this revenue procedure. The Associate Chief Counsel must discuss the request to exclude the case from the TEAM procedures with both the field and the taxpayer and reflect their views in the memorandum to the Chief Counsel. A memorandum to the Chief Counsel is not required if the parties agree during the pre-submission conference that the TEAM procedures are not appropriate.

The national office will attempt to issue all TEAMs to the field within 60 calendar days of receipt, provided that the field and the taxpayer submit all required information in a timely manner. The national office will provide the field with the TEAM at the earliest possible date (whether the proposed TEAM is favorable or adverse, in whole or in part, to the taxpayer). The national office will not advise the taxpayer of a proposed or final conclusion until the national office has considered a request for reconsideration under section 22.03 of this revenue procedure or, if no reconsideration is requested, after the expiration of the 30-day period to request reconsideration, whichever occurs later.

Sec. 14.08 January 6, 2003 94 2003–1 I.R.B.

Taxpayer cannot appeal decision to seek a TAM or a TEAM

Taxpayer notified of decision not to seek a TAM or a TEAM

Taxpayer may appeal decision not to seek a TAM or a TEAM

Territory manager or area director, appeals determines whether TAM or TEAM will be sought

Territory manager’s or area director, appeals’ decision may be reviewed but not appealed

.01 As discussed in section 9.04 of this revenue procedure, if a director or area director, appeals requests a TAM, taxpayer cooperation is not required. Thus, if a taxpayer does not want an issue to be referred to the national office for a TAM, the taxpayer cannot appeal the decision to seek a TAM.

As discussed in section 11.02 of this revenue procedure, except for two situations, if a director or area director, appeals requests a TEAM, the field or area office, the taxpayer and the national office must all agree that the TEAM procedures are appropriate. Thus, in general, if a taxpayer does not want an issue to be referred to the national office for a TEAM, the request for advice will be treated as a request for a TAM for which taxpayer agreement is not required.

.02 If the examining officer or appeals officer concludes that a taxpayer’s request for referral of an issue to the national office for a TAM or a TEAM does not warrant referral, the examining officer or appeals officer will tell the taxpayer. A taxpayer’s request for such a referral will not be denied merely because the national office provided legal advice, other than advice furnished pursuant to this revenue procedure, to the field or area office on the matter.

.03 The taxpayer may appeal the decision of the examining officer or appeals officer not to request a TAM or a TEAM. To do so, the taxpayer must submit to that officer, within 10 calendar days after being told of the decision, a written statement of the facts, law, and arguments on the issue and the reasons why the taxpayer believes the matter should be referred to the national office for a TAM or a TEAM. A taxpayer who needs more than 10 calendar days must justify in writing the request for an extension of time. The extension is subject to the approval of the territory manager or the area director, appeals.

.04 The examining officer or appeals officer submits the taxpayer’s statement through channels to the territory manager or the area director, appeals along with the examining officer’s or appeals officer’s statement of why the issue should not be referred to the national office. The territory manager or the area director, appeals determines on the basis of the statements whether a TAM or a TEAM will be requested.

If the territory manager or the area director, appeals determines that a TAM or a TEAM is not warranted and proposes to deny the request, the taxpayer is told in writing about the determination. In the letter to the taxpayer, the territory manager or the area director, appeals states the reasons for the proposed denial (except in unusual situations when doing so would be prejudicial to the best interests of the Government). The taxpayer has 10 calendar days after receiving the letter to notify the territory manager or the area director, appeals of agreement or disagreement with the proposed denial.

.05 The taxpayer may not appeal the decision of the territory manager or the area director, appeals not to request a TAM or a TEAM. If the taxpayer does not agree with the proposed denial, all data on the issue for which a TAM or a TEAM has been sought, including the taxpayer’s written request and statements, will be submitted to the Industry Director, LMSB; the Area Director, SB/SE; the Director, Compliance, W&I; the Director, International, LMSB; the Director, Federal, State & Local Governments; the Director, Tax Exempt Bonds; the Director, Indian Tribal Governments; or the Director, Appeals Field Technical Services, as appropriate.

The Industry Director, LMSB; the Area Director, SB/SE; the Director, Compliance, W&I; the Director, International, LMSB; the Director, Federal, State & Local Governments; the Director, Tax Exempt Bonds; the Director, Indian Tribal Governments; or the Director, Appeals Field Technical Services, as appropriate, will review the proposed denial solely on the basis of the written record, and no conference will be held with the taxpayer or the taxpayer’s representative. The Industry Director, LMSB; the Director, Field Operations, SB/SE; the Director, Compliance, W&I; the Director, International, LMSB; the Director, Federal, State & Local Governments; the Director, Tax Exempt Bonds; the Director, Indian Tribal Governments; or the Director, Appeals Field Technical Services, as appropriate, may consult with

Sec. 16.05 2003–1 I.R.B. 95 January 6, 2003

Special procedures applicable to appeals regarding frivolous issues