SECTION 16. HOW DOES — Internal Revenue Bulletin 2003-1

OR TEAM? .......................................................................................................................... 94 .01 Taxpayer cannot appeal decision to seek a TAM or a TEAM ..................................................................................... 95 .02 Taxpayer notified of decision not to seek a TAM or a TEAM .................................................................................... 95 .03 Taxpayer may appeal decision not to seek a TAM or a TEAM................................................................................... 95 .04 Territory manager or area director, appeals determines whether TAM or TEAM will be sought.............................. 95 .05 Territory manager’s or area director, appeals’ decision may be reviewed but not appealed....................................... 95 .06 Special procedures applicable to appeals regarding frivolous issues ........................................................................... 96

SECTION 17. HOW ARE REQUESTS FOR TAMs AND TEAMs WITHDRAWN? .............................................. 96 .01 Taxpayer notified ............................................................................................................................................................ 96 .02 National office may provide views................................................................................................................................ 97

SECTION 18. HOW ARE CONFERENCES FOR TAMs SCHEDULED? ........................................................... 97 .01 If requested, offered to the taxpayer when adverse TAM proposed ............................................................................ 97 .02 Normally held within 21 calendar days of contact with the taxpayer ......................................................................... 97 .03 21-day period will be extended if justified and approved............................................................................................ 97 .04 Denial of extension cannot be appealed........................................................................................................................ 97

2003–1 I.R.B. 77 January 6, 2003

.05 Entitled to one conference of right................................................................................................................................ 97 .06 Conference may not be taped ........................................................................................................................................ 98 .07 If requested and approved, conference will be delayed to address a request for relief under § 7805(b) .................. 98 .08 Service makes tentative recommendations .................................................................................................................... 98 .09 Additional conferences may be offered ......................................................................................................................... 98 .10 Additional information submitted after the conference................................................................................................. 99 .11 May schedule a conference to be held by telephone .................................................................................................... 99

SECTION 19. HOW ARE CONFERENCES FOR TEAMs SCHEDULED? ......................................................... 99 .01 Held within 30 calendar days of receipt of request...................................................................................................... 99 .02 Normally conducted by telephone ................................................................................................................................. 100 .03 Held at the branch level ................................................................................................................................................. 100 .04 No additional conferences are offered........................................................................................................................... 100 .05 Additional information submitted after the conference................................................................................................. 100

SECTION 20. HOW IS STATUS OF TAM OR TEAM REQUEST OBTAINED? ................................................. 100 .01 Taxpayer or the taxpayer’s authorized representative may request status of a TAM or a TEAM from the field or

area office ....................................................................................................................................................................... 100 .02 National office will give status reports on TAMs and TEAMs to the director or area director, appeals................... 100

SECTION 21. HOW DOES THE NATIONAL OFFICE PREPARE THE TAM OR THE TEAM? .......................... 100 .01 Delegates authority to branch chiefs and other reviewers............................................................................................ 100 .02 Determines whether request has been properly made................................................................................................... 101 .03 Contacts the field or area office to discuss issues ........................................................................................................ 101 .04 Informs the field or area office if any matters in the request have been referred to another branch or office ......... 101 .05 Informs the field or area office if additional information is needed............................................................................ 101 .06 Informs the field or area office of the tentative conclusion ......................................................................................... 101 .07 If a tentative conclusion has not been reached, gives date estimated for tentative conclusion .................................. 101 .08 Advises the field or area office if tentative conclusion is changed.............................................................................. 102 .09 Generally does not discuss the tentative conclusion with the taxpayer ....................................................................... 102 .10 Advises the field or area office of final conclusions .................................................................................................... 102 .11 If needed, requests additional information..................................................................................................................... 102 .12 Requests taxpayer to send additional information to the national office and a copy to the director or area direc tor, appeals...................................................................................................................................................................... 103 .13 Informs the taxpayer when requested deletions will not be made ............................................................................... 103 .14 Prepares reply in two parts ............................................................................................................................................ 103 .15 Routes replies to appropriate office............................................................................................................................... 104 .16 Sends a copy of reply to appropriate division counsel................................................................................................. 104

SECTION 22. HOW DOES A FIELD OR AREA OFFICE USE THE TAM OR THE TEAM? ............................... 104 .01 Generally applies advice in processing the taxpayer’s case ......................................................................................... 104 .02 Discussion with the taxpayer ......................................................................................................................................... 105 .03 Provides copy to the taxpayer........................................................................................................................................ 105 .04 Taxpayer may protest deletions not made ..................................................................................................................... 105 .05 When no copy is given to the taxpayer......................................................................................................................... 106

SECTION 23. WHAT IS THE EFFECT OF A TAM OR A TEAM? ................................................................... 106 .01 Applies only to the taxpayer for whom TAM or TEAM was requested...................................................................... 106 .02 Usually applies retroactively.......................................................................................................................................... 106 .03 Generally applied retroactively to modify or revoke prior TAM or TEAM................................................................ 106 .04 Applies to continuing action or series of actions until specifically withdrawn, modified, or revoked....................... 106 .05 Applies to continuing action or series of actions until material facts change ............................................................. 106 .06 Does not apply retroactively under certain conditions.................................................................................................. 106

January 6, 2003 78 2003–1 I.R.B.

SECTION 24. HOW MAY RETROACTIVE EFFECT BE LIMITED? ............................................................... 107 .01 Taxpayer may request that retroactivity be limited....................................................................................................... 107 .02 Form of request to limit retroactivity - continuing transaction before examination of return ................................. 107 .03 Form of request to limit retroactivity - in all other cases.......................................................................................... 107 .04 Taxpayer’s right to a conference.................................................................................................................................... 108

SECTION 25. WHAT SIGNIFICANT CHANGES HAVE BEEN MADE TO REV. PROC. 2002–2? ........................ 108

SECTION 26. WHAT IS THE EFFECT OF THIS REVENUE PROCEDURE ON OTHER DOCUMENTS? ............ 108

SECTION 27. WHAT IS THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE? .................................... 108

DRAFTING INFORMATION ........................................................................................................................ 108

INDEX ....................................................................................................................................................... 110