SECTION 1. WHAT IS THE

PURPOSE OF THIS REVENUE PROCEDURE?

This revenue procedure explains how the Service provides advice to taxpayers on issues under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Procedure and Administration), and the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). It explains the forms of advice and the manner in which advice is requested by taxpayers and provided by the Service. A sample format of a request for a letter ruling is provided in Appendix B.

Operating divisions of the Service The Service includes four operating divisions that are responsible for meeting the needs of the taxpayers they serve. These operating divisions are:

(1) Large and Mid-Size Business Division (LMSB), which generally serves corporations, including S corporations, and partnerships, with assets in excess of $10 million;

(2) Small Business/Self-Employed Division (SB/SE), which generally serves corporations, including S corporations, and partnerships, with assets less than or equal to $10 million; estates and trusts; individuals filing an individual federal income tax return with accompanying Schedule C ( Profit or Loss From Business (Sole Proprietorship) ), Schedule E ( Supplemental

Sec. 1 2004-1 I.R.B. 5 January 5, 2004

Description of terms used in this revenue procedure

Income and Loss ), Schedule F ( Profit or Loss From Farming ), Form 2106 ( Employee Business Expenses ) or Form 2106-EZ ( Unreimbursed Employee Business Expenses ); and individuals with international tax returns;

(3) Wage and Investment Division (WI), which generally serves individuals with wage and investment income only (and with no international tax returns) filing an individual federal income tax return without accompanying Schedule C, E, or F, or Form 2106 or Form 2106-EZ; and

(4) Tax Exempt and Government Entities Division (TE/GE), which serves three distinct taxpayer segments: employee plans, exempt organizations, and government entities.

For purposes of this revenue procedure—

(1) any reference to director or field office refers to the Director, Field Operations, LMSB; the Area Director, Field Compliance, SB/SE; or the Director, Compliance, W&I, as appropriate, and their respective offices or, when appropriate, the Director, International, LMSB; the Director, Employee Plans Examinations; the Director, Exempt Organizations Examinations; the Director, Federal, State & Local Governments; the Director, Tax Exempt Bonds; or the Director, Indian Tribal Governments, and their respective offices;

(2) the term “taxpayer” includes all persons subject to any provision of the Internal Revenue Code (including issuers of §103 obligations) and, when appropriate, their representatives; and

(3) the term “Associate office” refers to 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), or the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate.

Updated annually This revenue procedure is updated annually as the first revenue procedure of the year, but may be modified or amplified during the year.