SECTION 21. HOW DOES

THE NATIONAL OFFICE PREPARE THE TAM OR THE TEAM?

Delegates authority to branch chiefs and other reviewers

.04 Once the conference of right is held, no further conferences will be offered.

.05 Following the conference, the taxpayer and the field will have 15 calendar days to provide any supplemental materials. No extension of the 15-day period will be allowed. The TEAM will be issued no later than 15 calendar days after the expiration of the 15-day period for supplemental materials.

If the taxpayer provides any supplemental materials, the materials must be accompanied by the following declaration: “Under penalties of perjury, I declare that I have exam- ined this information, including accompanying documents, and, to the best of my knowl- edge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete.” This declaration must be signed in accordance with the requirements in section 8.01(15)(b) of Rev. Proc. 2003–1.

.01 The taxpayer or the taxpayer’s authorized representative may obtain information on the status of the request for a TAM or a TEAM by contacting the field or area office that requested the advice. See section 21.09 of this revenue procedure concerning the time for discussing the tentative conclusion with the taxpayer or the taxpayer’s representative. See section 22.02 of this revenue procedure regarding discussions of the contents of the TAM or TEAM with the taxpayer or the taxpayer’s representative.

.02 The branch representative or reviewer assigned to the TAM or TEAM request will give status updates on the request once a month to the director or the area director, appeals. In addition, a director or an area director, appeals may get current information on the status of the request for a TAM or a TEAM by calling the national office attorney or reviewer assigned to the request for a TAM or a TEAM.

See section 21.10 of this revenue procedure about discussing the final conclusions with the field or area office. Further, the director or the area director, appeals will be notified at the time the TAM or the TEAM is mailed.

.01 The branch chiefs and other reviewers in the Office of Associate Chief Counsel (Corporate), the Office of Associate Chief Counsel (Financial Institutions and Products), the Office of Associate Chief Counsel (Income Tax and Accounting), the Office of Associate Chief Counsel (International), the Office of Associate Chief Counsel (Passthroughs and Special Industries), the Office of Associate Chief Counsel (Procedure and Administration), and the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) have largely been delegated the authority to issue TAMs and TEAMs on issues under their jurisdiction.

Sec. 19.02 January 6, 2003 100 2003–1 I.R.B.

Determines whether request has been properly made

Contacts the field or area office to discuss issues

Informs the field or area office if any matters in the request have been referred to another branch or office

Informs the field or area office if additional information is needed

Informs the field or area office of the tentative conclusion

If a tentative conclusion has not been reached, gives date estimated for tentative conclusion

.02 A request for a TAM or a TEAM generally is given priority and processed expeditiously. As soon as the request for a TAM or a TEAM is assigned, the branch representative analyzes the file to see whether it meets all requirements of sections 7, 8, 9, and 12 of this revenue procedure.

If the request does not comply with the requirements of section 12.02 of this revenue procedure relating to the deletions statement, the Service will follow the procedure in the last paragraph of section 14.06 of this revenue procedure.

.03 Usually, within 21 calendar days after the assigned branch of the national office receives the request for a TAM, a representative of the branch contacts the field or area office to discuss the procedural and substantive issues in the request that come within the branch’s jurisdiction. In the case of a TEAM, a representative of the assigned branch of the national office telephones the field or area office within 5 calendar days after the branch receives the request for a TEAM.

.04 If the TAM request concerns matters within the jurisdiction of more than one branch or office, a representative of the branch that received the original TAM request informs the field or area office within 21 calendar days of receiving the request that—

(1) the matters within the jurisdiction of another branch or office have been referred to the other branch or office for consideration; and

(2) a representative of the other branch or office will contact the field or area office about the TAM request within 21 calendar days after receiving it in accordance with section 21.03 of this revenue procedure.

If a request for a TEAM involves more than one Associate office, all involved Associate offices should have participated in the pre-submission conference, in which case the notification required by this section will not be necessary. If the Associate office with jurisdiction over a TEAM determines that coordination with another Associate Chief Counsel is required only after receiving the TEAM request, then the notifications described above should be made within 5 calendar days of the receipt of the TEAM.

.05 The branch representative will inform the field or area office that the case is being returned if substantial additional information is required to resolve an issue. Cases should also be returned if major procedural problems cannot be resolved by telephone. The field or area office should promptly notify the taxpayer of the decision to return the case and the reason(s) for such decision.

If only minor procedural deficiencies exist, the branch representative will request the additional information in the most expeditious manner without returning the case. In the case of a TAM, within 21 calendar days after receiving the information requested, the branch representative will notify the field or area office of the tentative conclusion and an estimated date by which the TAM will be mailed, or an estimated date when a tentative conclusion will be made. In the case of a TEAM, within 20 calendar days of receipt of the TEAM request, or, if later, within 5 calendar days after receiving the information requested, the branch representative will notify the field or area office of the tentative conclusion and an estimated date by which the TEAM will be mailed, or an estimated date when a tentative conclusion will be made.

.06 If all necessary information has been provided, the branch representative informs the field or area office of the tentative conclusion and the estimated date that the TAM or TEAM will be mailed.

.07 If a tentative conclusion has not been reached because of the complexity of the issue, the branch representative informs the field or area office of the estimated date the tentative conclusion will be made.

Sec. 21.07 2003–1 I.R.B. 101 January 6, 2003

Advises the field or area office if tentative conclusion is changed

Generally does not discuss the tentative conclusion with the taxpayer

Advises the field or area office of final conclusions

If needed, requests additional information

.08 Because the branch representative’s tentative conclusion may change during the preparation and review of the TAM or TEAM, the tentative conclusion should not be considered final. If the tentative conclusion is changed, the branch representative will inform the field or area office.

.09 Neither the national office nor the field or area office should advise the taxpayer or the taxpayer’s representative of the tentative conclusion during consideration of the request for a TAM or a TEAM. In order to afford taxpayers an appropriate opportunity to prepare and present their position, the taxpayer or the taxpayer’s representative should be told the tentative conclusion when scheduling the adverse conference, at the adverse conference, or in any discussion between the scheduling and commencement of the adverse conference. See section 22.02 of this revenue procedure regarding discussions of the contents of the TAM or TEAM with the taxpayer or the taxpayer’s representative.

.10 In all cases, the branch representative will inform the examining officer or appeals officer of the national office’s final conclusions. The examining officer or appeals officer will be offered the opportunity to discuss the issues and the national office’s final conclusions before the TAM or TEAM is issued.

.11 If, following the initial contact referenced in section 21.03 of this revenue procedure, it is determined, after discussion with the branch chief or other reviewer, that additional information is needed, a branch representative will obtain the additional information from the taxpayer or from the director or the area director, appeals in the most expeditious manner possible. In the case of a TAM, any additional information requested from the taxpayer by the national office must be submitted by letter with a penalties of perjury statement within 21 calendar days after the request for information is made. In the case of a TEAM, any additional information requested from the taxpayer by the national office must be submitted by letter with a penalties of perjury statement within 5 calendar days after the request for information is made.

(1) Request to receive a request for additional information by fax. To facilitate prompt action on TAM and TEAM requests, the taxpayer is encouraged to request that if the Service requests additional information from the taxpayer, the Service does so by fax.

A request to fax a copy of the request for additional information to the taxpayer or the taxpayer’s authorized representative must be made in writing, either as part of the original TAM or TEAM request or prior to the mailing of the request for additional information. The request to fax must contain the fax number of the taxpayer or the taxpayer’s authorized representative to whom the document is to be faxed.

Because of the unsecured nature of a fax transmission, the Service will take certain precautions to protect confidential information. For example, the Service will use a cover sheet that identifies the intended recipient of the fax and the number of pages transmitted, that does not identify the taxpayer by name or identifying number, and that contains a statement prohibiting unauthorized disclosure of the document if a recipient of the faxed document is not the intended recipient of the fax. Also, for example, the cover sheet should be faxed in an order in which it will become the first page covering the faxed document.

(2) Penalties of perjury statement. Additional information submitted to the national office must be accompanied by the following declaration: “Under penalties of perjury, I de- clare that I have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and com- plete.” This declaration must be signed and dated by the taxpayer, not the taxpayer’s representative. A stamped signature is not permitted.

(3) 21-day period for TAMS (5-day period for TEAMs) will be extended if justified and approved. A written request for an extension of time to submit additional information must be received by the national office within the 21-day period for TAMs (5-day period for TEAMs), giving compelling facts and circumstances to justify the proposed extension. The associate chief counsel of the office to which the case is assigned will determine whether

Sec. 21.08 January 6, 2003 102 2003–1 I.R.B.

Requests taxpayer to send additional information to the national office and a copy to the director or area director, appeals

Informs the taxpayer when requested deletions will not be made

to grant or deny the request for an extension. No extension will be granted without the approval of the associate chief counsel. Except in rare and unusual circumstances, the national office will not agree to an extension of more than 10 working days beyond the end of the 21-day period in the case of a TAM (5-day period in the case of a TEAM). There is no right to appeal the denial of a request for extension.

(4) If the taxpayer does not submit additional information. If the national office does not receive the additional information within the 21-day period for TAMs (5-day period for TEAMs), plus any extensions granted by the associate chief counsel, the national office will issue the TAM or the TEAM based on the existing record.

.12 Whether or not requested by the Service, any additional information submitted by the taxpayer should be sent to the national office. Generally, the taxpayer needs only to submit the original of the additional information to the national office. In appropriate cases, the national office may request additional copies of the information.

Also, the taxpayer must send a copy of the additional information to the director or the area director, appeals for comment. Any comments by the director or the area director, appeals must be furnished promptly to the appropriate branch in the national office. If the director or the area director, appeals does not have any comments, he or she must notify the branch representative promptly.

.13 Generally, before replying to the request for a TAM or a TEAM, the national office informs the taxpayer orally or in writing of the material likely to appear in the TAM or TEAM that the taxpayer proposed be deleted but that the Service has determined should not be deleted.

If so informed, the taxpayer may submit within 10 calendar days any further information or arguments supporting the taxpayer’s proposed deletions.

The Service attempts, if possible, to resolve all disagreements about proposed deletions before the national office replies to the request for a TAM or a TEAM. The taxpayer does not have the right to a conference to resolve any disagreements about material to be deleted from the text of the TAM or the TEAM. These matters may be considered at any conference otherwise scheduled for the request. See section 23.04 of this revenue procedure for the procedures to protest the disclosure of information in the TAM or the TEAM.

Prepares reply in two parts .14 The replies to TAM or TEAM requests are in two parts. Each part identifies the taxpayer by name, address, identification number, and year or years involved.

The first part of the reply is a transmittal memorandum (Form M–6000). In unusual cases, it is a way of giving the field or area office strategic advice that need not be discussed with the taxpayer. If the transmittal memorandum provides more than the fact that the TAM or the TEAM is attached or the case is returned for further development, the transmittal memorandum may constitute Chief Counsel Advice, as defined in § 6110(i)(1), subject to public inspection under § 6110.

The second part is the TAM or the TEAM, which contains—

(1) a statement of the issues;

(2) the conclusions of the national office;

(3) a statement of the facts pertinent to the issues;

(4) a statement of the pertinent law, tax treaties, regulations, revenue rulings, and other precedents published in the Internal Revenue Bulletin, and court decisions; and

(5) a discussion of the rationale supporting the conclusions reached by the national office.

Sec. 21.14 2003–1 I.R.B. 103 January 6, 2003

Routes replies to appropriate office

Sends a copy of reply to appropriate division counsel