SECTION 22. HOW DOES A

FIELD OR AREA OFFICE USE THE TAM OR THE TEAM?

Generally applies advice in processing the taxpayer’s case

The conclusions give direct answers, whenever possible, to the specific issues raised by the field or area office. The national office is not bound by the precise statement of the issues as submitted by the taxpayer or by the field or area office and may reframe the issues to be answered in a TAM or a TEAM. The discussion of the issues in a TAM or a TEAM will be in sufficient detail so that the field or appeals officials will understand the reasoning underlying the conclusion.

If two sets of facts are provided to the national office ( i.e., the parties were unable to reach agreement on the facts), the following procedure will be used: If the national office would rule the same way on either set of facts, a TAM or a TEAM will be issued, which will note that the factual disagreement is immaterial. If the national office would rule differently based on which specific set of facts is considered, then a TAM or a TEAM will be issued describing the resolution of the issue based on each set of facts.

As discussed in section 22.01 of this revenue procedure, if a TAM or a TEAM provides alternate responses based on separate sets of facts, the field is required to process the case consistently with the legal analysis in the TAM or the TEAM as applied to the facts as they are ultimately determined by the field or area office.

Accompanying the TAM or the TEAM is a notice under § 6110(f)(1) of intention to disclose a TAM or a TEAM (including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).

.15 Replies to requests for a TAM or a TEAM are addressed to the director (see paragraph 2(1) of this revenue procedure) or the area director, appeals (see paragraph 2(2) of this revenue procedure). A copy of the reply to a request from LMSB should be mailed simultaneously to the field personnel who requested it under the signature authority of the director. Replies to requests from appeals should be routed to the appropriate area office through the Director, Appeals Field Technical Services, C:AP.

.16 The national office will send a copy of the reply to the request for a TAM or a TEAM to the division counsel of the operating division that has jurisdiction over the taxpayer’s tax return that is the subject of the TAM or the TEAM.

.01 The director or the area director, appeals must process the taxpayer’s case on the basis of the conclusions in the TAM or TEAM unless–

(1) the director or the area director, appeals decides that the conclusions reached by the national office in a TAM or TEAM should be reconsidered and requests reconsideration. The reconsideration process may include a conference held by the field participants who requested a TAM or a TEAM and the national office participants who drafted the memorandum; or

(2) in the case of a TAM or a TEAM unfavorable to the taxpayer, the area director, appeals decides to settle the issue under existing authority; or

(3) in the case of a TAM or a TEAM unfavorable to a Coordinated Industry Case taxpayer on a coordinated issue within the Office of Pre-Filing and Technical Guidance, LMSB, on which Appeals has approved settlement guidelines, the team manager decides to settle the issue under the settlement authority delegated in Delegation Order No. 247 (or its successor), 1996–1 C.B. 356; or

(4) if a TAM or a TEAM provides alternate responses based on separate sets of facts, the field is required to process the case consistently with the legal analysis in the TAM or the TEAM as applied to the facts as they are ultimately determined by the field or area office.

Sec. 21.14 January 6, 2003 104 2003–1 I.R.B.

Except as provided in paragraphs (1), (2), (3), or (4) of this section 22.01, the conclusions in a TAM or a TEAM involving a § 103 obligation and the issuer of this obligation must be treated by the director or the area director, appeals as applying to the issuer and any holder of the obligation, unless the holder initiates a request for a TAM or a TEAM on the same issue addressed in the TAM or TEAM involving the issuer, and the national office issues a TAM or TEAM involving that issue and that holder.

Discussion with the taxpayer .02 The national office will not discuss the contents of the TAM or TEAM with the taxpayer or the taxpayer’s representative until the taxpayer has been given a copy of the TAM or TEAM by the field or area office. See section 21.09 of this revenue procedure concerning the time for discussing the tentative conclusion with the taxpayer or the taxpayer’s representative.

Provides copy to the taxpayer .03 The director or the area director, appeals only after adopting the TAM or the TEAM, gives the taxpayer—

(1) a copy of the TAM or TEAM described in section 21.14 of this revenue procedure; and

(2) the notice under § 6110(f)(1) of intention to disclose the TAM or TEAM (including a copy of the version proposed to be open to public inspection and notations of third party communications under § 6110(d)).

The director or area director, appeals has 30 calendar days after receipt of a TAM to either formally request reconsideration or give the adopted TAM to the taxpayer. The director or appeals officer must notify the national office when the TAM is given to the taxpayer. This requirement does not apply to a TAM involving a criminal or civil fraud investigation, or a jeopardy or termination assessment, as described in section 14.08 of this revenue procedure.

The field will have 30 calendar days from issuance of a TEAM to request reconsideration or the TEAM becomes final and will be released to the taxpayer, as is provided in this section of this revenue procedure. The request for reconsideration from the field must come from the director or area director, appeals. The request for reconsideration must describe with specificity the errors in the TEAM analysis and conclusions. Requests for reconsideration should not reargue points raised in the initial request, but should instead focus on points that the TEAM overlooked or misconstrued in the field’s arguments in support of their request.

The national office will consider the field’s request for reconsideration of a TEAM and rule on that request within 30 calendar days of receipt. The national office may request further submissions from the field or the taxpayer, but no additional submissions shall be made in the absence of such a request. If the field does not request reconsideration of a TEAM, the TEAM will take effect at the end of the 30-day period following the issuance of the TEAM to the field. If reconsideration is requested, the TEAM will take effect 5 calendar days after the reconsideration is ruled on.

In the event of a TAM or a TEAM adverse to the taxpayer, in whole or in part, the taxpayer may request § 7805(b) relief. Such a request will be treated as a separate request for a TAM or a TEAM.

Taxpayer may protest deletions not made

.04 After receiving the notice under § 6110(f)(1) of intention to disclose the TAM or TEAM, the taxpayer may protest the disclosure of certain information in it. The taxpayer must submit a written statement within 20 calendar days identifying those deletions not made by the Service that the taxpayer believes should have been made. The taxpayer must also submit a copy of the version of the TAM or TEAM proposed to be open to public inspection with brackets around the deletions proposed by the taxpayer that have not been made by the national office.

Generally, the national office considers only the deletion of material that the taxpayer has proposed be deleted or other deletions as required under § 6110(c) before the national office reply is sent to the director or the area director, appeals. Within 20 calendar days after

Sec. 22.04 2003–1 I.R.B. 105 January 6, 2003

When no copy is given to the taxpayer