SECTION 9. WHAT OTHER

CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES APPLY TO CERTAIN REQUESTS?

Checklists, guideline revenue procedures, and notices

CODE OR REGULATION SECTION

103, 141–150, 7478, and 7871 Issuance of state or local obligations

1.166–2(d)(3) Uniform express determination letter for making election

on the issues in the request to the Service official to consider in any later examination of the return. This section 8.07(2)(b) generally does not apply if the taxpayer withdraws the letter ruling request and submits a written statement that the transaction has been, or is being, abandoned and if the national office has not formed an adverse opinion.

(c) Notification of Service official may constitute Chief Counsel Advice. If the memorandum to the Service official referred to in paragraphs (a) and (b) of this section 8.07(2) provides more than the fact that the request was withdrawn and the national office was tentatively adverse, or that the national office declines to grant a change in method of accounting or issue a letter ruling, the memorandum may constitute Chief Counsel Advice, as defined in § 6110(i)(1), subject to disclosure under § 6110.

(3) Refunds of user fee. The user fee will not be returned for a letter ruling request that is withdrawn. If the national office declines to issue a letter ruling on all of the issues in the request, the user fee will be returned. If the national office issues a letter ruling on some, but not all, of the issues, the user fee will not be returned. See section 15.10 of this revenue procedure for additional information regarding the refunds of user fees.

.08 The taxpayer’s authorized representative, whether or not enrolled, must comply with Treasury Department Circular No. 230, which provides the rules for practice before the Service. In those situations when the national office believes that the taxpayer’s representative is not in compliance with Circular No. 230, the national office will bring the matter to the attention of the Director of Practice.

For the requirement regarding compliance with the conference and practice requirements, see section 8.01(14) of this revenue procedure.

Specific revenue procedures and notices supplement the general instructions for requests explained in section 8 of this revenue procedure and apply to requests for letter rulings or determination letters regarding the Code sections and matters listed in this section.

.01 For requests relating to the following Code sections and subject matters, see the following checklists, guideline revenue procedures, and notices.

REVENUE PROCEDURE AND NOTICE

Rev. Proc. 96–16, 1996–1 C.B. 630 (for a reviewable ruling under § 7478 and a nonreviewable ruling); Rev. Proc. 88–31, 1988–1 C.B. 832 (for approval of areas of chronic economic distress); and Rev. Proc. 82–26, 1982–1 C.B. 476 (for “on behalf of ” and similar issuers). For approval of areas of chronic economic distress, Rev. Proc. 88–31 explains how this request for approval must be submitted to the Assistant Secretary for Housing/Federal Housing Commissioner of the Department of Housing and Urban Development.

Rev. Proc. 92–84, 1992–2 C.B. 489.

Sec. 8.07(2) January 6, 2003 30 2003–1 I.R.B.

Subchapter C–Corporate Distributions and Adjustments

301 Nonapplicability on sales of stock of employer to defined contribution plan

302, 311 Checklist questionnaire

302(b)(4) Checklist questionnaire

311 Checklist questionnaire

332 Checklist questionnaire

351 Checklist questionnaire

355 Checklist questionnaire

368(a)(1)(E) Checklist questionnaire

461(h) Alternative method for the inclusion of common improvement costs in basis

482 Advance pricing agreements

Rev. Proc. 77–37, 1977–2 C.B. 568, as modified by Rev. Proc. 89–30, 1989–1 C.B. 895, and as amplified by Rev. Proc. 77–41, 1977–2 C.B. 574, Rev. Proc. 83-81, 1983–2 C.B. 598 ( see also Rev. Proc. 2003–3), Rev. Proc. 84–42, 1984–1 C.B. 521 (superseded as to no-rule areas by Rev. Proc. 85–22, 1985–1 C.B. 550), Rev. Proc. 86–42, 1986–2 C.B. 722, and Rev. Proc. 89–50, 1989–2 C.B. 631. But see section 3.01 of Rev. Proc. 2003–3 (corporate distributions, transfers, and reorganizations under §§ 332, 351, 368(a)(1)(A), 368(a)(1)(B), 368(a)(1)(C), 368(a)(1)(E), and 368(a)(1)(F)), which describes certain corporate reorganizations where the Service will not issue advance letter rulings or determination letters.

Rev. Proc. 87–22, 1987–1 C.B. 718.

Rev. Proc. 86–18, 1986–1 C.B. 551; and Rev. Proc. 77–41, 1977–2 C.B. 574.

Rev. Proc. 81–42, 1981–2 C.B. 611.

Rev. Proc. 86–16, 1986–1 C.B. 546.

Rev. Proc. 90–52, 1990–2 C.B. 626.

Rev. Proc. 83–59, 1983–2 C.B. 575. But see section 3.01 of Rev. Proc. 2003–3, which describes certain transfers to controlled corporations where the Service will not issue advance letter rulings or determination letters.

Rev. Proc. 96–30, 1996–1 C.B. 696.

Rev. Proc. 81–60, 1981–2 C.B. 680. But see section 3.01 of Rev. Proc. 2000–3, which describes circumstances under which the Service will not issue advance letter rulings or determination letters as to whether a transaction constitutes a corporate recapitalization within the meaning of § 368(a)(1)(E) (or a transaction that also qualifies under § 1036).

Rev. Proc. 92–29, 1992–1 C.B. 748.

Rev. Proc. 96–53, 1996–2 C.B. 375, as modified by Notice 98–65, 1998–2 C.B. 803 and amplified by Rev. Proc. 2002–52, 2002–31 I.R.B. 242.

Sec. 9.01 2003–1 I.R.B. 31 January 6, 2003

521 Appeal procedure with regard to adverse determination letters and revocation or modification of exemption letter rulings and determination letters

1.817–5(a)(2) Issuer of a variable contract requesting relief

877, 2107, and 2501(a)(3) Individuals who lose U.S. citizenship or cease to be taxed as long-term U.S. residents with a principal purpose to avoid U.S. taxes

1362(b)(5) and 1362(f) Relief for late S corporation and related elections under certain circumstances

1.1502–13(e)(3) Consent to treat intercompany transactions on a separate entity basis and revocation of this consent

1.1502–76(a)(1) Consent to file a consolidated return where member(s) of the affiliated group use a 52–53 week taxable year

1504(a)(3)(A) and (B) Waiver of application of § 1504(a)(3)(A) for certain corporations

1552 Consent to elect or change method of allocating affiliated group’s consolidated federal income tax liability

Rev. Proc. 90–27, 1990–1 C.B. 514.

Rev. Proc. 93–1, 1993–1 C.B. 313.

Notice 97–19, 1997–1 C.B. 394, as modified by Notice 98–34, 1998–2 C.B. 29.

Rev. Proc. 98–55, 1998–2 C.B. 643; Rev. Proc. 97–48, 1997–2 C.B. 521.

Rev. Proc. 97–49, 1997–2 C.B. 523.

Rev. Proc. 89–56, 1989–2 C.B. 643.

Rev. Proc. 2002–32, 2002–20 I.R.B. 959.

Rev. Proc. 90–39, 1990–2 C.B. 365, as clarified by Rev. Proc. 90–39A, 1990–2 C.B. 367.

4980B Rev. Proc. 87–28, 1987–1 C.B. 770 (treating references to former § 162(k) as if they were references to § 4980B).

7701 Relief for a late initial classification election for a newly formed entity

Rev. Proc. 2002–59, 2002–39 I.R.B. 615.

Sec. 9.01 January 6, 2003 32 2003–1 I.R.B.

7701(a)(40) and 7871(d) Indian tribal governments and subdivision of Indian tribal governments

301.7701–2(a) Classification of undivided fractional interests in rental real estate

7702 Closing agreement for failed life insurance contracts

7702A Relief for inadvertent non-egregious failure to comply with modified endowment contract rules

7704(g) Revocation of election

Rev. Proc. 84–37, 1984–1 C.B. 513, as modified by Rev. Proc. 86–17, 1986–1 C.B. 550, and Rev. Proc. 2003–1 (this revenue procedure) (provides guidelines for obtaining letter rulings recognizing Indian tribal government or tribal government subdivision status; also provides for inclusion in list of recognized tribal governments in revised versions of Rev. Proc. 2002–15, or in list of recognized subdivisions of Indian tribal governments in revised versions of Rev. Proc. 84–36, 1984–1 C.B. 510, as modified and made permanent by Rev. Proc. 86–17).

Rev. Proc. 2002–22, 2002–14 I.R.B. 733 (specifies the conditions under which the Service will consider a letter ruling request that an undivided fractional interest in rental real property (other than a mineral property as defined in § 614) is not an interest in a business entity).

Notice 99–48, 1999 C.B. 429.

Rev. Proc. 2001–42, 2001–2 C.B. 212.

Notice 98–3, 1998–1 C.B. 333.

SUBJECT MATTERS REVENUE PROCEDURE

Accounting methods; obtaining consent to changes in method

Accounting periods; changes in period

Rev. Proc. 97–27, 1997–1 C.B. 680, as modified by Rev. Proc. 97–30, 1997–1 C.B. 702, as modified and amplified by Rev. Proc. 2002–19, 2002–13 I.R.B. 696, and as amplified and clarified by Rev. Proc. 2002–54, 2002–35 I.R.B. 432; and Rev. Proc. 2003–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.01, 3.02, 3.03, 3.05, 5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(8), 8.01(9), 8.01(10), 8.01(13), 8.01(14), 8.01(15), 8.02(2), 8.02(4), 8.02(5), 8.02(7), 8.02(8), 8.03(1), 8.04, 8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 10.10(2), 10.11, 11, 12.01, 12.02, 15, and Appendix A are applicable.

Rev. Proc. 2002–39, 2002–22 I.R.B. 1046, as clarified and modified by Notice 2002–72, 2002–46 I.R.B. 843; and Rev. Proc. 2003–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.06, 3.03, 5.02, 5.12, 5.14, 7.01, 7.02, 7.03, 8.01(1), 8.01(2), 8.01(3), 8.01(4), 8.01(5), 8.01(6), 8.01(8), 8.01(9), 8.01(10), 8.01(13), 8.01(14), 8.01(15), 8.02(2), 8.02(4), 8.02(5), 8.02(7), 8.03(1), 8.04, 8.05, 8.06, 8.07, 8.08, 9, 10.01, 10.04, 10.05, 10.07, 10.08, 11, 12, 15, and Appendix A are applicable.

Classification of liquidating trusts Rev. Proc. 82–58, 1982–2 C.B. 847, as modified and amplified by Rev. Proc. 94–45, 1994–2

C.B. 684, and as amplified by Rev. Proc. 91–15, 1991–1 C.B. 484 (checklist questionnaire), as modified and amplified by Rev. Proc. 94–45.

Earnings and profits determinations Rev. Proc. 75–17, 1975–1 C.B. 677; and Rev. Proc. 2003–1 (this revenue procedure) for which sections 2.06, 3.03, 8, 10.04, 10.06, and 11.05 are applicable.

Estate, gift, and generation-skipping transfer tax issues

Rev. Proc. 91–14, 1991–1 C.B. 482 (checklist questionnaire).

Sec. 9.01 2003–1 I.R.B. 33 January 6, 2003

Deferred intercompany transactions; election not to defer gain or loss

Rev. Proc. 97–49, 1997–2 C.B. 523.

Leveraged leasing Rev. Proc. 2001–28, 2001–1 C.B. 1156, and Rev. Proc. 2001–29, 2001–1 C.B. 1160.

Rate orders; regulatory agency; normalization

A letter ruling request that involves a question of whether a rate order that is proposed or issued by a regulatory agency will meet the normalization requirements of § 168(f)(2) (preTax Reform Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will not be considered unless the taxpayer states in the letter ruling request whether—

(1) the regulatory authority responsible for establishing or approving the taxpayer’s rates has reviewed the request and believes that the request is adequate and complete; and

(2) the taxpayer will permit the regulatory authority to participate in any national office conference concerning the request.

If the taxpayer or the regulatory authority informs a consumer advocate of the request for a letter ruling and the advocate wishes to communicate with the Service regarding the request, any such communication should be sent to: Internal Revenue Service, Associate Chief Counsel (Procedure & Administration), Attention CC:PA:T, P. O. Box 7604, Ben Franklin Station, Washington, D.C. 20044 (or, if a private delivery service is used: Internal Revenue Service, Associate Chief Counsel (Procedure & Administration), Attention CC:PA:T, Room 6561, 1111 Constitution Avenue, N.W., Washington, D.C. 20224). These communications will be treated as third party contacts for purposes of § 6110.

Unfunded deferred compensation Rev. Proc. 71–19, 1971–1 C.B. 698, as amplified by Rev. Proc. 92–65, 1992–2 C.B. 428. See Rev. Proc. 92–64, 1992–2 C.B. 422, as modified by Notice 2000–56, 2000–2 C.B. 393, for the model trust for use in Rabbi Trust Arrangements.

Safe harbor revenue procedures .02 For requests relating to the following Code sections and subject matters, see the following safe harbor revenue procedures.

CODE OR REGULATION SECTION REVENUE PROCEDURE

103 and 141–150 Issuance of state or local obligations

167 and 168 Depreciation of original and replacement tires for certain vehicles

280B Certain structural modifications to a building not treated as a demolition

355(a)(1)(B) Transaction not violating the device test

Rev. Proc. 93–17, 1993–1 C.B. 507 (change of use of proceeds); Rev. Proc. 97–13, 1997–1 C.B. 632, as modified by Rev. Proc. 2001–39, 2001–2 C.B. 38 (management contracts); and Rev. Proc. 97–14, 1997–1 C.B. 634 (research agreements).

Rev. Proc. 2002–27, 2002–17 I.R.B. 802.

Rev. Proc. 95–27, 1995–1 C.B. 704.

Section 4.05(1)(b) of Rev. Proc. 96–30, 1996–1 C.B. 696, 705.

Sec. 9.01 January 6, 2003 34 2003–1 I.R.B.

584(a) Qualification of a proposed common trust fund plan

642(c)(5) Qualification of trusts as pooled income funds

664(d)(1) Qualification of trusts as charitable remainder annuity trusts

664(d)(2) Qualification of trusts as charitable remainder unitrusts

664(d)(2) and (3) Qualification of trusts as charitable remainder unitrusts

1031(a) Qualification as a qualified exchange accommodation arrangement

1286 Determination of reasonable compensation under mortgage servicing contracts

1362(f) Automatic inadvertent termination relief to certain corporations

1.860E–1(c) Establishment of lack of improper knowledge for transfers of noneconomic residual interests of REMICs and ownership interests in FASITs

20.2056A–2(d)(1)(i) and (d)(1)(ii) Sample trust language

1.7704–2(d) New business activity of existing partnership is closely related to pre-existing business

Rev. Proc. 92–51, 1992–1 C.B. 988.

Rev. Proc. 88–53, 1988–2 C.B. 712.

Rev. Proc. 89–21, 1989–1 C.B. 842, as amplified by Rev. Proc. 90–32, 1990–1 C.B. 546.

Rev. Proc. 89–20, 1989–1 C.B. 841, as amplified by Rev. Proc. 90–30, 1990–1 C.B. 534.

Rev. Proc. 90–31, 1990–1 C.B. 539.

Rev. Proc. 2000–37, 2000–2 C.B. 308.

Rev. Proc. 91–50, 1991–2 C.B. 778.

Rev. Proc. 98–55, 1998–2 C.B. 645.

Rev. Proc. 2001–12, 2001–1 C.B. 335.

Rev. Proc. 96–54, 1996–2 C.B. 386.

Rev. Proc. 92–101, 1992–2 C.B. 579.

Sec. 9.02 2003–1 I.R.B. 35 January 6, 2003

SUBJECT MATTERS REVENUE PROCEDURE

Certain rent-to-own contracts treated as leases

Automatic change revenue procedures

Rev. Proc. 95–38, 1995–2 C.B. 397.

.03 For requests to change an accounting period or accounting method, see the following automatic change revenue procedures published and/or in effect as of December 31, 2002. A taxpayer complying timely with an automatic change revenue procedure will be deemed to have obtained the consent of the Commissioner to change the taxpayer’s accounting period or accounting method, as applicable.

CODE SECTION REVENUE PROCEDURE

442 Adoptions, retention, or changes in accounting periods

446 Changes in accounting methods

The automatic change revenue procedures for obtaining a change in annual accounting period include: Rev. Proc. 2002–37, 2002–22 I.R.B. 1030, as clarified and modified by Notice 2002–72, 2002–46 I.R.B. 843 (certain corporations); Rev. Proc. 2002–38, 2002–22 I.R.B. 1037, as clarified and modified by Notice 2002–72, 2002–46 I.R.B. 843 (certain partnerships, S corporations, electing S corporations, or personal service corporations); Rev. Proc. 68–41, 1968–2 C.B. 943, as modified by Rev. Proc. 81–40, 1981–2 C.B. 605 (trusts held by certain fiduciaries needing a workload spread); and Rev. Proc. 66–50, 1966–2 C.B. 1260, as modified by Rev. Proc. 81–40 (individual seeking a calendar year).

The automatic change revenue procedures for obtaining a change in method of accounting include: Rev. Proc. 2002–9, 2002–3 I.R.B. 327 (accounting method changes described in the Appendix to Rev. Proc. 2002–9 involving §§ 56, 77, 162, 166, 167, 168, 171, 174, 197, 263, 263A, 267, 404, 446, 448, 451, 454, 455, 460, 461, 467, 471, 472, 475, 585, 861, 985, 1272, 1273, 1278, 1281, and former § 168), as modified and amplified by Announcement 2002–17, 2002–8 I.R.B. 561, Rev. Proc. 2002–19, 2002–13 I.R.B. 696, Rev. Proc. 2002–54, 2002–35 I.R.B. 432, Rev. Proc. 2002–65, 2002–41 I.R.B. 700 (certain taxpayers seeking to change their method of accounting for railroad track structure expenditures to the track maintenance allowance method provided in Rev. Proc. 2002–65), Rev. Rul. 2002–9, 2002–10 I.R.B. 614 (certain taxpayers seeking to change their method of accounting for impact fees), Rev. Proc. 2002–17, 2002–13 I.R.B. 676 (certain taxpayers seeking to change to the “replacement cost method” for valuing vehicle parts inventories), Rev. Proc. 2002–27, 2002–17 I.R.B. 802 (certain taxpayers seeking to change their method of accounting for depreciation of original and replacement tires of certain vehicles), Rev. Proc. 2002–33, 2002–20 I.R.B. 963 (revised sections 2.01 and 2.02 of the Appendix to reflect the depreciation provisions in §§ 168(k) and 1400L), Rev. Proc. 2002– 36, 2002–21 I.R.B. 993 (certain taxpayers seeking to change their method of accounting for capital cost reduction payments), Rev. Proc. 2002–28, 2002–18 I.R.B. 815 (certain qualifying small business taxpayers seeking to change to the cash receipts and disbursements method of accounting and/or to a method of accounting for inventoriable items as nonincidental materials and supplies), Rev. Proc. 2002–46, 2002–28 I.R.B. 105 (certain insurance companies seeking to change their method of accounting for premium acquisition expenses); Rev. Rul. 2002–46, 2002–29 I.R.B. 117 and Rev. Rul. 2002–73, 2002–45 I.R.B. 805 (certain taxpayers seeking to change their method of accounting for employer contributions to § 401(k) plans or matching contributions to qualified defined contribution plans); Rev. Proc. 98–58, 1998–2 C.B. 710 (certain taxpayers seeking to change to the installment method of accounting under § 453 for alternative minimum tax purposes for certain deferred payment sales contracts relating to property used or produced in the trade or business of farming); Rev. Proc. 97–43, 1997–2 C.B. 494 (certain taxpayers required to change their method of accounting as a result of making elections out of certain exemptions from dealer status for purposes of § 475); Rev. Proc. 92–67, 1992–2 C.B. 429 (certain taxpayers with one or more market discount bonds seeking to make a § 1278(b) election or a constant interest rate election); Rev. Proc. 92–29, 1992–1 C.B. 748 (certain taxpayers seeking to use an alternative method under § 461(h) for including common improvement costs in basis); and Rev. Proc. 91–51, 1991–2 C.B. 779 (certain taxpayers under examination that sell mortgages and retain rights to service the mortgages).

Sec. 9.02 January 6, 2003 36 2003–1 I.R.B.