SECTION 14. HOW DOES A

FIELD OR AREA OFFICE USE THE TAM OR THE TEAM?

Generally applies advice in processing the taxpayer’s case

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

(1) the director or the appeals area director decides that the conclusions reached by the Associate office in a TAM or a 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 Associate office participants who drafted the memorandum; or

(2) in the case of a TAM or a TEAM unfavorable to the taxpayer, the appeals area director 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. 4–25 (or its successor); 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.

Except as provided in paragraphs (1), (2), (3), or (4) of this section 14.01, the director or appeals area director must treat conclusions in a TAM or a TEAM involving a § 103 obligation and the issuer of this obligation as applying to the issuer and any holder of the obligation, unless the holder also initiates a request for a TAM or a TEAM on the same issue addressed in the TAM or TEAM involving the issuer, and the Associate office issues a TAM or a TEAM involving that issue and that holder.

Reconsideration .02 The director or appeals area director has 30 calendar days after receipt of a TAM or a TEAM to either formally request reconsideration or give the adopted TAM or TEAM to the taxpayer. Before formally requesting reconsideration, the director or appeals area director must consult with field counsel. Requests for TAM or TEAM reconsideration must describe with specificity the errors in the TAM or TEAM analysis and conclusions. Requests for reconsideration should not reargue points raised in the initial request, but should instead focus on points that the TAM or the TEAM overlooked or misconstrued in the field’s arguments in support of their request. The Associate office will consider the field’s request for reconsideration of a

Sec. 13.01 January 5, 2004 106 2004-1 I.R.B.

TEAM and rule on that request within 30 calendar days of receipt. The Associate office may request further submissions from the field or the taxpayer, but the parties should make no additional submissions in the absence of such a request.

If the field does not request reconsideration of a TAM or a TEAM, the TAM or the TEAM will take effect when the field provides a copy of the adopted TAM or TEAM to the taxpayer, or at the end of the 30-day period following the issuance of the TAM or the TEAM to the field. If reconsideration is requested for a TAM or a TEAM, the TAM or the TEAM will take effect five calendar days after the reconsideration is ruled on.

Discussion with the taxpayer .03 The Associate office will not discuss the contents of the TAM or the TEAM with the taxpayer or the taxpayer’s representative until the field or area office gives a copy of the TAM or the TEAM to the taxpayer. See section 12.07 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 .04 The director or the appeals area director only after adopting the TAM or the TEAM, gives the taxpayer:

(1) a copy of the TAM or the TEAM; and

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

The requirement to give a taxpayer a copy of the TAM or the TEAM does not apply to a TAM or a TEAM involving civil fraud or a criminal investigation, or a jeopardy or termination assessment, as described in section 10.11 of this revenue procedure.

The director or appeals officer must notify the Associate office when it gives the TAM or the TEAM to the taxpayer. This requirement does not apply to a TAM or a TEAM involving civil fraud or a criminal investigation, or a jeopardy or termination assessment, as described in section 10.11 of this revenue procedure.

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

When no copy is given to the taxpayer

.05 After receiving the notice under § 6110(f)(1) of intention to disclose the TAM or the 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 the TEAM proposed to be open to public inspection with brackets around the deletions proposed by the taxpayer that have not been made by the Associate office.

Generally, the Associate office considers only the deletion of material that the taxpayer has proposed be deleted or other deletions as required under § 6110(c) before the Associate office reply is sent to the director or the appeals area director. Within 20 calendar days after it receives the taxpayer’s response to the notice under § 6110(f)(1), the Associate office must mail to the taxpayer its final administrative conclusion about the deletions to be made.

.06 If the Associate office tells the director or the appeals area director that a copy of the TAM or the TEAM should not be given to the taxpayer and the taxpayer requests a copy, the director or the appeals area director will tell the taxpayer that no copy will be given.

Sec. 14.06 2004-1 I.R.B. 107 January 5, 2004