SECTION 12. UNDER

WHAT CIRCUMSTANCES DO DIRECTORS ISSUE DETERMINATION LETTERS?

Directors issue determination letters only if the question presented is specifically answered by a statute, tax treaty, or regulation, a conclusion stated in a revenue ruling, or an opinion or court decision that represents the position of the Service.

Under no circumstances will a director issue a determination letter unless it is clearly shown that the request concerns a return that has been filed or is required to be filed and over which the director has, or will have, examination jurisdiction.

A determination letter does not include assistance provided by the U.S. competent authority pursuant to the mutual agreement procedure in tax treaties as set forth in Rev. Proc. 2002–52, 2002–2 C.B. 242.

In income and gift tax matters .01 In income and gift tax matters, directors issue determination letters in response to taxpayers’ written requests on completed transactions that affect returns over which they have examination jurisdiction. A determination letter usually is not issued for a question concerning a return to be filed by the taxpayer if the same question is involved in a return already filed.

Normally, directors do not issue determination letters on the tax consequences of proposed transactions. A director may issue a determination letter on the replacement, even though not yet made, of involuntarily converted property under § 1033, if the taxpayer has filed an income tax return for the year in which the property was involuntarily converted.

In estate tax matters .02 In estate tax matters, directors issue determination letters in response to written requests affecting the estate tax returns over which the directors have examination jurisdiction. They do not issue determination letters on matters concerning the application of the estate tax to the prospective estate of a living person.

In generation-skipping transfer tax matters

In employment and excise tax matters

Requests concerning income, estate, or gift tax returns

Attach a copy of determination letter to taxpayer’s return

.03 In generation-skipping transfer tax matters, directors issue determination letters in response to written requests affecting the generation-skipping transfer tax returns over which the directors have examination jurisdiction. They do not issue determination letters on matters concerning the application of the generation-skipping transfer tax before the distribution or termination takes place.

.04 In employment and excise tax matters, directors issue determination letters in response to written requests from taxpayers on completed transactions over which they have examination jurisdiction. See also section 5.09 of this revenue procedure.

.05 A request received by a director on a question concerning an income, estate, or gift tax return already filed generally will be considered in connection with the examination of the return. If a response is made to the request before the return is examined, it will be considered a tentative finding in any later examination of that return.

.06 A taxpayer who, before filing a return, receives a determination letter about any transaction that has been consummated and that is relevant to the return being filed should attach a copy of the determination letter to the return when it is filed.

Review of determination letters .07 Determination letters issued under sections 12.01 through 12.04 of this revenue procedure are not reviewed by the Associate office before they are issued. If a taxpayer believes that a determination letter of this type is in error, the taxpayer may ask the director to reconsider the matter or to request technical advice from the Associate office as explained in Rev. Proc. 2004–2, this Bulletin.

Addresses to send determination letter requests

.08 (a) If LMSB has or will have examination jurisdiction over the taxpayer’s tax return, the taxpayer should send a request for a determination letter to the following address:

Internal Revenue Service Attn: Manager, Office of Pre-Filing and Technical Services Large and Mid-Size Business Division C:LM:PFT:PF Mint Building, 3rd Floor

Sec. 12.08 2004-1 I.R.B. 49 January 5, 2004

1111 Constitution Ave., N.W. Washington, D.C. 20224

(b) Wage and Investment (W&I) taxpayers seeking a determination letter should send a request to their local SB/SE office. See Appendix D for the appropriate SB/SE office.

(c) Other taxpayers should send a request for a determination letter to the appropriate director whose office has or will have examination jurisdiction over the taxpayer’s return. The appropriate director for a taxpayer under the jurisdiction of SB/SE is listed in Appendix D.

(d) For fees required with determination letter requests, see section 15 and Appendix A of this revenue procedure.