SECTION 19. PAPERWORK — Internal Revenue Bulletin 2004-1

REDUCTION ACT

.01 The organization of Rev. Proc. 2003–1 was changed to group together the sections relating to the process for obtaining letter rulings in sections 7 and 8.

.02 Section 9 of Rev. Proc. 2003–1 was updated and moved to Appendix E.

.03 A new section 9 was added to group together the procedures for requesting a change in accounting method. Section 9.08(a) and (b) provides that an extension of the 21-day/30-day period for providing additional information ordinarily will not be granted to furnish information requested on Form 3115.

.04 The organization of Rev. Proc. 2003–1 was changed to group together the sections relating to the process for obtaining determination letters in section 7 and the areas where determinations letters will be issued in section 12.

.05 The organization of Rev. Proc. 2003–1 was changed to group together the areas where the Associate office will issue letter rulings in section 5.

.06 The organization of Rev. Proc. 2003–1 was changed to group together the no-rule areas for letter rulings and determination letters in section 6.

.07 Section 16 of Rev. Proc. 2003–1 was deleted, and the discussion of information letters in section 2.04 was expanded.

.08 Section 7.01(12) was revised to clarify that the Service no longer will permit letter ruling requests or determination letter requests to be submitted by fax.

.09 Section 10.7(1) was revised to clarify that a taxpayer’s representative must provide a fax copy of a power of attorney before the Associate office’s representative will schedule a pre-submission conference.

Rev. Proc. 2003–1, 2003–1 C.B. 1, is superseded.

This revenue procedure is effective January 5, 2004.

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control number 1545–1522.

Sec. 19 2004-1 I.R.B. 57 January 5, 2004

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collections of information in this revenue procedure are in sections 5.05, 7.01, 7.02, 7.03, 7.04, 7.05, 7.07, 8.02. 8.05, 8.07, 10.01, 10.06, 10.07, 11.11, 12.06, 13.02, 15.02, 15.07, 15.08, 15.09, 15.11, paragraph (B)(1) of Appendix A, Appendix C, and Appendix E (subject matter—rate orders; regulatory agency; normalization). This information is required to evaluate and process the request for a letter ruling or determination letter. In addition, this information will be used to help the Service delete certain information from the text of the letter ruling or determination letter before it is made available for public inspection, as required by § 6110. The collections of information are required to obtain a letter ruling or determination letter. The likely respondents are business or other for-profit institutions.

The estimated total annual reporting and/or recordkeeping burden is 305,140 hours.

The estimated annual burden per respondent/recordkeeper varies from 1 to 200 hours, depending on individual circumstances, with an estimated average burden of 80.3 hours. The estimated number of respondents and/or recordkeepers is 3,800.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by § 6103.

DRAFTING INFORMATION The principal author of this revenue procedure is Donna Welch of the Office of Associate Chief Counsel (Procedure and Administration). For further information regarding this revenue procedure for matters under the jurisdiction of—

(1) the Associate Chief Counsel (Corporate), contact Richard Todd at (202) 622–7700 (not a toll-free call),

(2) the Associate Chief Counsel (Financial Institutions and Products), contact Arturo Estrada at (202) 622–3900 (not a toll-free call),

(3) the Associate Chief Counsel (Income Tax and Accounting), contact Brenda Wilson at (202) 622–4800 (not a toll-free call),

(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact Kathleen Reed at (202) 622–3110 (not a toll-free call),

(5) the Associate Chief Counsel (Procedure and Administration), contact George Bowden or Henry Schneiderman at (202) 622–3400 (not a toll-free call),

(6) the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), contact Calder Robertson at (202) 622–6000 (not a toll-free call), or

(7) the Associate Chief Counsel (International), contact Gerard Traficanti at (202) 622–3619 (not a toll-free call).

For further information regarding user fees, contact the Docket, Records, and User Fee Branch at (202) 622–7560 (not a toll-free call).

Sec. 19 January 5, 2004 58 2004-1 I.R.B.

INDEX References are to sections in Rev. Proc. 2004–1

Additional Information

perjury statement required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(4)
proposed deletions under § 6110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(11)
information requested during initial and subsequent contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05

failure to submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(3) subsequent information after conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.06

where to send . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(6)

Changes in Accounting Method or Period

applicable sections of Rev. Proc. 2004–1 for accounting method changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
applicable sections of Rev. Proc. 2004–1 for accounting period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix E
automatic change revenue procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01, Appendix E
identical accounting method changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9.15, 15.07, Appendix A
user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15, Appendix A

Checklist Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(18), Appendix C

Conferences

offered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.02

after conference of right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.05 application of § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.01(11)(e)

requesting a conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.02(6)
scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.01, 10.02

application of § 7805(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.11(2), 13.02(2) pre-submission conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.07 telephone conferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.08

Definitions

closing agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.02
determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.03
director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
field office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
information letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.04
letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.01
Associate office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
taxpayer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Determinations Under § 999(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.03

Discussions Not Binding on Service

at pre-submission conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.07(4)
informal opinion expressed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.04
oral advice to taxpayers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.05(2)

Employee Plans and Exempt Organizations

jurisdiction of Commissioner, Tax Exempt and Government Entities Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02
user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02

Estate Tax Matters

issuance of determination letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.02, 12.05
issuance of letter rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.05

under § 2032A(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.06

Expedited Handling of Letter Ruling and Determination Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.02(4)

2004-1 I.R.B. 59 January 5, 2004

INDEX References are to sections in Rev. Proc. 2004–1

Extension of Time

to schedule conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10.01
to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(2)

Fax Transmission

to receive letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.02(5)
to receive request for additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.02(5)
to submit additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(5)
letter ruling requests must not be submitted by fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.03(3)

Hand Delivery of Letter Ruling Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.03(2)

No-Rule Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Oral Advice to Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.05

Penalties of Perjury Statement

form for letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.01(15)(a)
form for submission of additional information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(4)
required with draft letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.07
signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.01(15)(b)

Pending Letter Ruling Requests

when to attach a copy to return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.04(2)

estate tax matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.05

when to notify Associate office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.04

Power of Attorney

Form 2848 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(14) and 7.02(2)

copies sent to multiple representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.02(2) original sent to representative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.02(2) no copy sent to representatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.02(2)

signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(14)

Public Disclosure of Information Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.04

Public Inspection Under § 6110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(11)

signature requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.01(11)(c)

Representatives

compliance with Treasury Department Circular No. 230. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(13)
power of attorney required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(14)
requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(13)

employee, general partner, administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(13) foreign representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(13)

Retroactive Revocation or Modification

of determination letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13.02

of letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.05-11.10

request to limit retroactive effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.11

Revenue Rulings

effect on a letter ruling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.04
request to limit retroactive effect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.11

Sample of a Letter Ruling Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(17), Appendix B

January 5, 2004 60 2004-1 I.R.B.

INDEX References are to sections in Rev. Proc. 2004–1

Section 301.9100 Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.02

Section 367 Rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.04

Status of Letter Ruling and Determination Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.06

Substantially Identical Letter Rulings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.08, 15.07(2), Appendix A

Tax Exempt and Government Entities

jurisdiction of Commissioner, Tax Exempt and Government Entities Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02
user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.02

User Fees

schedule of user fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix A
user fee requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

to reopen case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(3)

Where to Send

determination letter request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12.08
letter ruling request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.03

additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.05(6) hand delivery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.03(2)

Withdrawal of Letter Ruling and Determination Letter Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.07

2004-1 I.R.B. 61 January 5, 2004

APPENDIX A

SCHEDULE OF USER FEES

NOTE: Checks or money orders must be in U.S. dollars

(A) FEE SCHEDULE

CATEGORY USER FEE

(1) User fee for a request for a determination letter from a director. The user fee for each determination letter request governed by Rev. Proc. 2004–1 (this revenue procedure). $275

(2) User fee for a request for an advance pricing agreement or a renewal of an advance pricing agreement. See Rev. Proc. 96–53

(3) User fee for a request for a letter ruling or closing agreement. Except for the user fees for advance pricing agreements and renewals, the reduced fees provided in paragraph (A)(4) of this appendix, the user fees provided in paragraph (A)(5) of this appendix, and the exemptions provided in section 15.04 of Rev. Proc. 2004–1 (this revenue procedure), the user fee for each request for a letter ruling or closing agreement 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), or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) is as follows:

(a) Accounting

(i) Form 1128 (except as provided in paragraph (A)(4)(a) or (b) of this appendix) $1,000

(ii) Requests made on Part II of Form 2553 to use a fiscal year based on a business purpose (except as provided in paragraph (A)(4)(a) or (b) of this appendix) $1,000

(iii) Letter ruling requests for extensions of time to file Form 1128, Form 8716, or Part II of Form 2553 under § 301.9100–3 (except as provided in paragraph (A)(4)(a) or (b) of this appendix) $1,200

(b) Changes in Accounting Methods

(i) Form 3115 (except as provided in paragraph (A)(4)(a) or (b), or (5)(b) of this appendix) $1,500

(ii) Letter ruling requests for extensions of time to file Form 3115 under § 301.9100–3 (except as provided in paragraph (A)(4)(a) or (b), or (5)(c) of this appendix) $1,500

NOTE: No user fee is required if the change in accounting period or accounting method is permitted to be made pursuant to a published automatic change revenue procedure. See section 9.03 of Rev. Proc. 2004–1 (this revenue procedure) for the list of automatic change revenue procedures published and/or in effect as of December 31, 2003.

(c) All other letter ruling requests (which includes accounting period and accounting method requests other than those properly submitted on Form 1128, Part II of Form 2553, or Form 3115) (except as provided in paragraph (A)(4)(a) or (b), or (5)(a) of this appendix) $6,000

January 5, 2004 62 2004-1 I.R.B.

CATEGORY USER FEE

(d) Requests for closing agreements on a proposed transaction or on a completed transaction before a return for the transaction has been filed in which a letter ruling on that transaction is not requested or issued (except as provided in paragraph (A)(4)(a) or (b) of this appendix) $6,000

NOTE: A taxpayer that receives relief under § 301.9100–3 (for example, an extension of time to file Form 3115) will be charged a separate user fee for the letter ruling request on the underlying issue (for example, the accounting period or accounting method application).

(4) Reduced user fee for a request for a letter ruling or closing agreement. A reduced user fee is provided in the following situations if the person provides the certification described in paragraph (B)(1) of this appendix:

(a) Request involves a personal tax issue from a person with gross income (as determined under paragraphs (B)(2) and (4) of this appendix) of less than $250,000 $500

(b) Request involves a business-related tax issue (for example, including home-office expenses, residential rental property issues) from a person with gross income (as determined under paragraphs (B)(3) and (4) of this appendix) of less than $1 million $500

(5) User fee for substantially identical letter ruling requests or identical accounting method changes. If the requirements of section 15.07 of Rev. Proc. 2004–1 (this revenue procedure) are satisfied, the user fee for the following situations is as follows:

(a) Substantially identical letter rulings requested

Situations in which a taxpayer requests substantially identical letter rulings for multiple entities with a common member or sponsor, or for multiple members of a common entity, for each additional letter ruling request after the $6000 fee or reduced fee, as applicable, has been paid for the first letter ruling request $200

NOTE: Each entity or member that is entitled to the user fee under paragraph (A)(5)(a) of this appendix, that receives relief under § 301.9100–3 (for example, an extension of time to file an election) will be charged a separate user fee for the letter ruling request on the underlying issue.

(b) Identical accounting method change requested on a single Form 3115

Situations in which a parent corporation requests the identical accounting method change on a single Form 3115 on behalf of more than one member of a consolidated group, for each additional member of the group seeking the identical accounting method change on the same Form 3115 after the $1,500 fee or $500 reduced fee, as applicable, has been paid for the first member of the group $45

2004-1 I.R.B. 63 January 5, 2004

CATEGORY USER FEE

Situations in which a parent corporation requests an extension of time to file Form 3115 under § 301.9100–3 for the identical accounting method change on behalf of more than one member of a consolidated group, for each additional member of the group seeking the identical accounting method change on the same application after the $1,500 fee or reduced fee, as applicable, has been paid for the first member of the group $50

NOTE: A parent corporation and each member of a consolidated group that is entitled to the user fee under paragraph (A)(5)(b) of this appendix, that receives an extension of time to file Form 3115 under § 301.9100–3 will be charged a separate user fee for the accounting method application.

(B) PROCEDURAL MATTERS

(1) Required certification. A person seeking a reduced user fee under paragraph (A)(4) of this appendix must provide the following certification in order to obtain the reduced user fee:

(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a) of this appendix, the person must certify in the request that his, her, or its gross income, as defined under paragraphs (B)(2) and (4) of this appendix, is less than $250,000 for the last full (12 months) taxable year ending before the date the request is filed.

(b) If a person is seeking a reduced user fee under paragraph (A)(4)(b) of this appendix, the person must certify in the request that his, her, or its gross income, as defined under paragraphs (B)(3) and (4) of this appendix, is less than $1 million for the last full (12 months) taxable year ending before the date the request is filed.

(2) Gross income for a request involving a personal tax issue. For purposes of the reduced user fee provided in paragraph (A)(4)(a) of this appendix of—

(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to “total income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period. “Total income” is a line item on federal tax returns. For example, if the 2002 Form 1040, U.S. Individual Income Tax Return, is the most recent 12-month taxable year return filed by a U.S. citizen, “total income” on the Form 1040 is the amount entered on line 22.

In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request is filed, has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the last federal income tax return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to be made to total income described in this paragraph (B)(2)(a), is less than $250,000. In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appendix.

(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to “total effectively connected income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus any income for the period from United States or foreign sources that is not taxable by the United States, whether by reason of § 103, an income tax treaty, § 871(h) (regarding portfolio interest), or otherwise, plus the total amount of any fixed or determinable annual or periodical income from United States sources, the United States tax liability for which is satisfied by withholding at the source. “Total effectively connected income” is a line item on federal tax returns. For example, if the 2002 Form 1040NR, U.S. Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return filed by a nonresident alien individual, “total effectively connected income” on the Form 1040NR is the amount entered on line 23.

January 5, 2004 64 2004-1 I.R.B.

In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is filed, has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income or total effectively connected income, as relevant, as reported on the last federal income tax return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to be made to total income or total effectively connected income described respectively in paragraph (B)(2)(a) of this appendix or in this paragraph (B)(2)(b), is less than $250,000. In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appendix.

(3) Gross income for a request involving a business-related tax issue. For purposes of the reduced user fee provided in paragraph (A)(4)(b) of this appendix of—

(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to gross income as defined under paragraph (B)(2)(a) of this appendix, plus “cost of goods sold” as reported on the same federal income tax return.

(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to gross income as defined under paragraph (B)(2)(b) of this appendix, plus “cost of goods sold” as reported on the same federal income tax return.

(c) Domestic partnerships and corporations, “gross income” is equal to “total income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus “cost of goods sold” as reported on the same federal income tax return, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period. If a domestic partnership or corporation is not subject to tax, “total income” and “cost of goods sold” are the amounts that the domestic partnership or corporation would have reported on the federal income tax return if the domestic partnership or corporation were subject to tax.

“Cost of goods sold” and “total income” are line items on federal tax returns. For example, if the 2002 Form 1065, U.S. Part- nership Return of Income, is the most recent 12-month taxable year return filed by a domestic partnership, “cost of goods sold” and “total income” on the Form 1065 are the amounts entered on lines 2 and 8, respectively, and if the 2002 Form 1120, U.S. Corpora- tion Income Tax Return, is the most recent 12-month taxable year return filed by a domestic corporation, “cost of goods sold” and “total income” on the Form 1120 are the amounts entered on lines 2 and 11, respectively.

If, at the time the request is filed, a domestic partnership or corporation subject to tax has not filed a federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(b) of this appendix will apply if, in the aggregate, the partners’ or the shareholders’ gross income (as defined in paragraph (B)(3)(a), (b), (c), or (d) of this appendix, as applicable) is less than $1 million for the last full taxable year ending before the date the request is filed. In this case, the partners or the shareholders must provide the certification required under paragraph (B)(1) of this appendix.

(d) Organizations exempt from income tax under “Subchapter F-Exempt Organizations” of the Code, “gross income” is equal to the amount of gross receipts for the last full (12 months) taxable year ending before the date the request for a letter ruling or closing agreement is filed.

(4) Special rules for determining gross income. For purposes of paragraphs (B)(2) and (3) of this appendix, the following rules apply for determining gross income.

(a) Gross income of individuals, trusts, and estates.

(1) In the case of a request from a married individual, the gross incomes (as defined in paragraph (B)(2) or (3) of this appendix, as applicable) of the applicant and the applicant’s spouse must be combined. This rule does not apply to an individual who is legally separated from his or her spouse if the spouses do not file a joint income tax return with each other; and

(2) If there are two or more applicants filing the request, the gross incomes (as defined in paragraph (B)(2) or (3) of this appendix, as applicable) of the applicants must be combined.

(b) Gross income of domestic partnerships and corporations.

(1) In the case of a request from a domestic corporation, the gross income (as defined in paragraph (B)(3) of this appendix) of (i) all members of the applicant’s controlled group (as defined in § 1563(a)), and (ii) any related taxpayer that is involved in the transaction on which the letter ruling or closing agreement is requested, must be combined; and

2004-1 I.R.B. 65 January 5, 2004

(2) In the case of a request from a domestic partnership, the gross income (as defined in paragraph (B)(3) of this appendix) of (i) the partnership, and (ii) any partner who owns, directly or indirectly, 50 percent or more of the capital interest or profits interest in the partnership, must be combined.

(c) Gross income of exempt organizations. If there are two or more organizations exempt from income tax under Subchapter F filing the request, the gross receipts (as defined in paragraph (B)(3)(d) of this appendix) of the applicants must be combined.

January 5, 2004 66 2004-1 I.R.B.

APPENDIX B

SAMPLE FORMAT FOR A LETTER RULING

REQUEST

INSTRUCTIONS

To assist you in preparing a letter ruling request, the Service is providing this sample format. You are not required to use this sample format. If your request is not identical or similar to the sample format, the different format will not defer consideration of your request.

(Insert the date of request)

Internal Revenue Service Insert either : Associate Chief Counsel (Insert one of the following: Corporate, Financial Institutions and Products, Income Tax and Accounting, International, Passthroughs and Special Industries, or Procedure and Administration), or Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities) Attn: CC:PA:LPD:DRU P.O. Box 7604 Ben Franklin Station Washington, D.C. 20044

Dear Sir or Madam:

( Insert the name of the taxpayer ) requests a ruling on the proper treatment of ( insert the subject matter of the letter ruling request ) under section ( insert the number ) of the Internal Revenue Code.

[If the taxpayer is requesting expedited handling, a statement to that effect must be attached to, or contained in, the letter ruling request. The statement must explain the need for expedited handling. See section 7.02(4) of Rev. Proc. 2004–1, 2004–1 I.R.B. 1 Hereafter, all references are to Rev. Proc. 2004–1 unless otherwise noted.]

A. STATEMENT OF FACTS

Taxpayer Information

[Provide the statements required by sections 7.01(1)(a) and (b).]

Description of Taxpayer’s Business Operations

[Provide the statement required by section 7.01(1)(c).]

Facts Relating to Transaction

[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling request. This statement must include a detailed description of the transaction, including material facts in any accompanying documents, and the business reasons for the transaction. See sections 7.01(1)(d), 7.01(1)(e), and 7.01(2).]

B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling requested by the taxpayer. It is preferred that the language of the requested ruling be exactly the same as that the taxpayer wishes to receive.]

C. STATEMENT OF LAW

[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion and identify any pending legislation that may affect the proposed transaction. The taxpayer also is encouraged to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(6), 7.01(8), 7.01(9), and 7.01(10).]

2004-1 I.R.B. 67 January 5, 2004

D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is encouraged to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(3), 7.01(6), 7.01(8), 7.01(9), and 7.01(10).]

E. CONCLUSION

[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]

F. PROCEDURAL MATTERS

Revenue Procedure 2004–1 Statements

a. [Provide the statement required by section 7.01(4) regarding whether the same issue in the letter ruling request is in an earlier return of the taxpayer or in a return for any year of a related taxpayer.]

b. [Provide the statement required by section 7.01(5)(a) regarding whether the Service previously ruled on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor.]

c. [Provide the statement required by section 7.01(5)(b) regarding whether the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted a request (including an application for change in accounting method) involving the same or similar issue but withdrew the request before a letter ruling or determination letter was issued.]

d. [Provide the statement required by section 7.01(5)(c) regarding whether the taxpayer, a related taxpayer, or a predecessor previously submitted a request (including an application for change in accounting method) involving the same or a similar issue that is currently pending with the Service.]

e. [Provide the statement required by section 7.01(5)(d) regarding whether, at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request (including an application for change in accounting method) involving the same or similar issue to the Service.]

f. [If the letter ruling request involves the interpretation of a substantive provision of an income or estate tax treaty, provide the statement required by section 7.01(6) regarding whether the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether the same or similar issue is being examined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing agreement in that jurisdiction; and whether the same or similar issue is being considered by the competent authority of the treaty jurisdiction.]

g. [Provide the statement required by section 7.01(8) regarding whether the law in connection with the letter ruling request is uncertain and whether the issue is adequately addressed by relevant authorities.]

h. [If the taxpayer determines that there are no contrary authorities, a statement to that effect would be helpful. See section 7.01(9).]

i. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should contain a statement to that effect. See section 7.02(6).]

j. [If the taxpayer is requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax) transmission, the ruling request should contain a statement to that effect. See section 7.02(5).]

k. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement to that effect. See section 7.02(1).]

l. [If the taxpayer is seeking to obtain the user fee provided in paragraph (A)(5)(a) of Appendix A for substantially identical letter rulings, the letter ruling request must contain the statements required by section 15.07.]

January 5, 2004 68 2004-1 I.R.B.

Administrative

a. The ruling request should state: “The deletions statement and checklist required by Rev. Proc. 2004–1 are enclosed.” See sections 7.01(11) and 7.01(18).]

b. [The ruling request should state: “The required user fee of $( Insert the amount of the fee ) is enclosed.” Please note that the check or money order must be in U.S. dollars and made payable to the Internal Revenue Service. See section 15 and Appendix A.]

c. [If the taxpayer’s authorized representative is to sign the letter ruling request or is to appear before the Service in connection with the request, the ruling request should state: “A Power of Attorney is enclosed.” See sections 7.01(13), 7.01(14), and 7.02(2).]

Very truly yours,

( Insert the name of the taxpayer or the taxpayer’s authorized representative )

By:

Signature Date

Typed or printed name of person signing request

DECLARATION : [See section 7.01(15).]

Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the request contains all the relevant facts relating to the request, and such facts are true, correct, and complete.

( Insert the name of the taxpayer )

By:

Signature Title Date

Typed or printed name of person signing declaration

[If the taxpayer is a corporation that is a member of an affiliated group filing consolidated returns, the above declaration must also be signed and dated by an officer of the common parent of the group. See section 7.01(15).]

2004-1 I.R.B. 69 January 5, 2004

APPENDIX C

CHECKLIST IS YOUR LETTER RULING REQUEST COMPLETE?

INSTRUCTIONS

The Service will be able to respond more quickly to your letter ruling request if it is carefully prepared and complete. To ensure that your request is in order, use this checklist. Complete the five items of information requested before the checklist. Answer each question by circling “Yes,” “No,” or “N/A.” When a question contains a place for a page number, insert the page number (or numbers) of the request that gives the information called for by a yes answer to a question. Sign and date the checklist (as taxpayer or authorized representative) and place it on top of your request.

If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the request, or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist is submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will not either cause the return of your request or defer substantive consideration of your request. You should still complete as much of the checklist as possible and submit it with your request.

TAXPAYER’S NAME

TAXPAYER’S I.D. NO.

ATTORNEY/P.O.A.

PRIMARY CODE SECTION

CIRCLE ONE ITEM

Yes No 1. Does your request involve an issue 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), or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities)? See section 3 of Rev. Proc. 2004–1, 2004–1 I.R.B. 1. For issues under the jurisdiction of other offices, see section 4 of Rev. Proc. 2004–1. (Hereafter, all references are to Rev. Proc. 2004–1 unless otherwise noted.)

Yes No 2. Have you read Rev. Proc. 2004–3, 2004–1 I.R.B. 114, and Rev. Proc. 2004–7, 2004–1 I.R.B. 237, to see if part or all of the request involves a matter on which letter rulings are not issued or are ordinarily not issued?

Yes No N/A 3. If your request involves a matter on which letter rulings are not ordinarily issued, have you given compelling reasons to justify the issuance of a letter ruling? Before preparing your request, you may want to call the branch in 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) responsible for substantive interpretations of the principal Internal Revenue Code section on which you are seeking a letter ruling to discuss the likelihood of an exception. For matters under the jurisdiction of—

January 5, 2004 70 2004-1 I.R.B.

Yes No N/A Page

(a) 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 (Passthroughs and Special Industries), or the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), the Office of the Associate Chief Counsel (Procedure and Administration), the appropriate branch to call may be obtained by calling (202) 622–7560 (not a toll-free call);

(b) the Office of the Associate Chief Counsel (International), the appropriate branch to call may be obtained by calling (202) 622–3800 (not a toll-free call).

If the request deals with a completed transaction, have you filed the return for the year in which the transaction was completed? See section 5.05.

Yes No 5. Are you requesting a letter ruling on a hypothetical situation or question? See section 6.11.

Yes No 6. Are you requesting a letter ruling on alternative plans of a proposed transaction? See section 6.11.

Yes No 7. Are you requesting the letter ruling for only part of an integrated transaction? See sections 6.03 and 7.01(1).

Yes No 8. Are you requesting the letter ruling for a business, trade, industrial association, or similar group concerning the application of tax law to its members? See section 6.05.

Yes No 9. Are you requesting the letter ruling for a foreign government or its political subdivision? See section 6.06.

Yes No Pages

Have you included a complete statement of all the facts relevant to the transaction? See section 7.01(1).

Yes No N/A 11. Have you submitted with the request true copies of all wills, deeds, and other documents relevant to the transaction, and labeled and attached them in alphabetical sequence? See section 7.01(2).

Yes No N/A 12. Have you submitted with the request a copy of all applicable foreign laws, and certified English translations of documents that are in a language other than English or of foreign laws in cases where English is not the official language of the foreign country involved? See section 7.01(2).

Yes No Pages

Yes No Page

Have you included, rather than merely incorporated by reference, all material facts from the documents in the request? Are they accompanied by an analysis of their bearing on the issues that specifies the document provisions that apply? See section 7.01(3).
Have you included the required statement regarding whether the same issue in the letter ruling request is in an earlier return of the taxpayer or in a return for any year of a related taxpayer? See section 7.01(4).
Have you included the required statement regarding whether the Service previously ruled on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 7.01(5)(a).

2004-1 I.R.B. 71 January 5, 2004

Yes No Page

Yes No N/A Page

Yes No Pages

Yes No Page

Yes No Pages

Yes No N/A Page

Have you included the required statement regarding whether the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted a request (including an application for change in accounting method) involving the same or similar issue but withdrew the request before the letter ruling or determination letter was issued? See section 7.01(5)(b).
Have you included the required statement regarding whether the taxpayer, a related taxpayer, or a predecessor previously submitted a request (including an application for change in accounting method) involving the same or similar issue that is currently pending with the Service? See section 7.01(5)(c).
Have you included the required statement regarding whether, at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request (including an application for change in accounting method) involving the same or similar issue to the Service? See section 7.01(5)(d).
If your request involves the interpretation of a substantive provision of an income or estate tax treaty, have you included the required statement regarding whether the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether the same or similar issue is being examined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing agreement in that jurisdiction; and whether the same or similar issue is being considered by the competent authority of the treaty jurisdiction? See section 7.01(6).
If your request is for recognition of Indian tribal government status or status as a political subdivision of an Indian tribal government, does your request contain a letter from the Bureau of Indian Affairs regarding the tribe’s status? See section 7.01(7), which states that taxpayers are encouraged to submit this letter with the request and provides the address for the Bureau of Indian Affairs.
Have you included the required statement of relevant authorities in support of your views? See section 7.01(8).
Have you included the required statement regarding whether the law in connection with the request is uncertain and whether the issue is adequately addressed by relevant authorities? See section 7.01(8).
Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations, notices, revenue rulings, or revenue procedures that you determined to be contrary to the position advanced? See section 7.01(9), which states that taxpayers are encouraged to inform the Service of such authorities.
If you determined that there are no contrary authorities, have you included a statement to this effect in your request? See section 7.01(9).
Have you included in your request a statement identifying any pending legislation that may affect the proposed transaction? See section 7.01(10).

Yes No 26. Is the request accompanied by the deletions statement required by § 6110? See section 7.01(11).

Yes No Page

Have you (or your authorized representative) signed and dated the request? See section 7.01(12).

Yes No N/A 28. If the request is signed by your representative or if your representative will appear before the Service in connection with the request, is the request accompanied by a properly prepared and signed power of attorney with the signatory’s name typed or printed? See section 7.01(14).

January 5, 2004 72 2004-1 I.R.B.

Yes No Page

Have you included, signed, and dated the penalties of perjury statement in the format required by section 7.01(15)?

Yes No N/A 30. Are you submitting your request in duplicate if necessary? See section 7.01(16).

Yes No N/A Pages

If you are requesting separate letter rulings on different issues involving one factual situation, have you included a statement to that effect in each request? See section 7.02(1).

Yes No N/A 32. If you want copies of the letter ruling sent to more than one representative, does the power of attorney contain a statement to that effect? See section 7.02(2).

Yes No N/A 33. If you want the original of the letter ruling to be sent to a representative, does the power of attorney contain a statement to that effect? See section 7.02(2).

Yes No N/A 34. If you do not want a copy of the letter ruling to be sent to any representative, does the power of attorney contain a statement to that effect? See section 7.02(2).

Yes No N/A 35. If you are making a two-part letter ruling request, have you included a summary statement of the facts you believe to be controlling? See section 7.02(3).

Yes No N/A Page

If you want your letter ruling request to be processed ahead of the regular order or by a specific date, have you requested expedited handling in the manner required by section 7.02(4) and stated a compelling need for such action in the request?
If you are requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax) transmission, have you included a statement to that effect? See section 7.02(5).
If you want to have a conference on the issues involved in the request, have you included a request for conference in the letter ruling request? See section 7.02(6).

Yes No 39. Have you included the correct user fee with the request and is your check or money order in U.S. dollars and payable to the Internal Revenue Service? See section 15 and Appendix A to determine the correct amount.

Yes No N/A Page

If your request involves a personal tax issue and you qualify for the reduced user fee when gross income is less than $250,000, have you included the required certification? See paragraphs (A)(4)(a) and (B)(1) of Appendix A.
If your request involves a business-related tax issue and you qualify for the reduced user fee when gross income is less than $1 million, have you included the required certification? See paragraphs (A)(4)(b) and (B)(1) of Appendix A.
If you qualify for the user fee for substantially identical letter rulings, have you included the required information? See section 15.07(2) and paragraph (A)(5)(a) of Appendix A.

2004-1 I.R.B. 73 January 5, 2004

Yes No N/A Page

If you qualify for the user fee for a § 301.9100 request to extend the time for filing an identical accounting method change on a single Form 3115, have you included the required information? See section 15.07(3) and paragraph (A)(5)(c) of Appendix A.

Yes No N/A 44. If your request is covered by any of the checklists, guideline revenue procedures, notices, safe harbor revenue procedures, or other special requirements listed in Appendix E, have you complied with all of the requirements of the applicable revenue procedure or notice?

Rev. Proc. List other applicable revenue procedures or notices, including checklists, used or relied upon in the preparation of this letter ruling request (Cumulative Bulletin or Internal Revenue Bulletin citation not required).

Yes No N/A Page

If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all of the requirements in section 11.11?

Yes No 46. Have you addressed your request to the attention 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), or the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate? The mailing address is:

Internal Revenue Service Attn: CC:PA:LPD:DRU P.O. Box 7604 Ben Franklin Station Washington, D.C. 20044

If a private delivery service is used, the address is:

Internal Revenue Service Attn: CC:PA:LPD:DRU, Room 5336 1111 Constitution Ave., N.W. Washington, D.C. 20224

The package should be marked: RULING REQUEST SUBMISSION. Improperly addressed requests may be delayed (sometimes for over a week) in reaching CC:PA:LPD:DRU for initial processing.

Signature Title or Authority Date

Typed or printed name of person signing checklist

January 5, 2004 74 2004-1 I.R.B.

APPENDIX D

LIST OF SMALL BUSINESS/SELF-EMPLOYED

DIVISION (SB/SE) COMPLIANCE AREA DIRECTORS FOR REQUESTING

DETERMINATION LETTERS

Requests for determination letters under Rev. Proc. 2004–1 from taxpayers under the jurisdiction of SB/SE (including W&I taxpayers) should be sent to the appropriate address listed below.

— Area 1, Area Director, Boston P.O. Box 9112, Stop 11300, Boston, MA 02203

SB/SE taxpayers located in Maine, New Hampshire, Connecticut, Rhode Island, Massachusetts, Vermont

— Area 2, Area Director, New York City 290 Broadway, New York, NY 10007

SB/SE taxpayers located in New York

— Area 3, Area Director, Philadelphia 600 Arch Street, Room 7400, Philadelphia, PA 19106

SB/SE taxpayers located in Pennsylvania, New Jersey

— Area 4, Area Director, Baltimore 31 Hopkins Plaza, Baltimore, MD 21202

SB/SE taxpayers located in Delaware, Maryland, District of Columbia, Virginia, North Carolina, South Carolina

— Area 5, Area Director, Jacksonville 400 Bay Street, Jacksonville, FL 32202

SB/SE taxpayers located in Florida

— Area 6, Area Director, Detroit 477 Michigan Avenue, Detroit, MI 48180

SB/SE taxpayers located in Michigan, Kentucky, Ohio, West Virginia

— Area 7, Area Director, Chicago 230 S. Dearborne Street, 100CHI, Chicago, IL 60604

SB/SE taxpayers located in Wisconsin, Illinois, Indiana

2004-1 I.R.B. 75 January 5, 2004

— Area 8, Area Director, Nashville 801 Broadway, MDP1, Nashville, TN 37203

SB/SE taxpayers located in Georgia, Tennessee, Alabama, Mississippi, Louisiana, Arkansas

— Area 9, Area Director, St. Paul 316 North Robert Street, Stop 1000, St. Paul, MN 55101

SB/SE taxpayers located in North Dakota, South Dakota, Missouri, Nebraska, Minnesota, Iowa, Kansas

— Area 10, Area Director, Dallas 4050 Alpha Road, 1000 MSRO, Dallas, TX 75244

SB/SE taxpayers located in Texas, Oklahoma

— Area 11, Area Director, Denver 600 17 ^th Street, Denver, CO 80202–2490

SB/SE taxpayers located in Colorado, Montana, Wyoming, New Mexico, Arizona, Nevada, Utah

— Area 12, Area Director, Seattle 915 Second Avenue, Seattle, WA 98174

SB/SE taxpayers located in Washington, Oregon, Alaska, Hawaii, Idaho

— Area 13, Area Director, Oakland 1301 Clay Street, Suite 1600–S, Oakland, CA 94612

SB/SE taxpayers located in Northern and Central California

— Area 14, Area Director, Laguna Niguel 24000 Avila Road, Laguna Nigel, CA 92677

SB/SE taxpayers located in Southern California except for taxpayers located in Oakland, Los Angeles, El Segundo, El Monte and Glendale which are Area 16 SB/SE taxpayers

— Area 15, Area Director, International 950 L’Enfant Plaza, SW, Washington, DC 20024

International SB/SE taxpayers

— Area 16, Area Director, Los Angeles 300 N. Los Angeles Street, Los Angeles, CA 90012

SB/SE taxpayers located in Oakland, Los Angeles, El Segundo, El Monte, Glendale

January 5, 2004 76 2004-1 I.R.B.

APPENDIX E

CHECKLISTS, GUIDELINE REVENUE PROCEDURES,

NOTICES, SAFE HARBOR REVENUE PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES

Specific revenue procedures and notices supplement the general instructions for requests explained in section 7 of this revenue procedure and apply to requests for letter rulings or determination letters regarding the Code sections and matters listed in this section.

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

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

338 Extension of time to make elections

.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.

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. 2004–3), 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. 2004–3 (corporate distributions, transfers, and reorganizations under §§ 332, 351, 368(a)(1)(A), 368(a)(1)(B), 368(a)(1)(C), 368(a)(1)(E), 368(a)(1)(F), and 1036), which describes certain corporate transactions where the Service will not issue 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. But see section 3.01 of Rev. Proc. 2004–3, which describes certain corporate transactions where the Service will not issue letter rulings or determination letters.

Rev. Proc. 2003–33, 2003–1 C.B. 803, provides guidance as to how an automatic extension of time under § 301.9100–3 of the Procedure and Administration Regulations may be obtained to file elections under § 338. This revenue procedure also informs taxpayers who do not qualify for the automatic extension, of the information necessary to obtain a letter ruling.

2004-1 I.R.B. 77 January 5, 2004

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

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

Rev. Proc. 83–59, 1983–2 C.B. 575. But see section 3.01 of Rev. Proc. 2004–3, which describes certain transfers to controlled corporations where the Service will not issue letter rulings or determination letters.

Rev. Proc. 96–30, 1996–1 C.B. 696, as modified and amplified by Rev. Proc. 2003–48, 2003–29 I.R.B. 86.

Rev. Proc. 81–60, 1981–2 C.B. 680. But see section 3.01 of Rev. Proc. 2004–3, which describes circumstances under which the Service will not issue 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, 2002–2 C.B. 242.

Rev. Proc. 90–27, 1990–1 C.B. 514.

Rev. Proc. 92–25, 1992–1 C.B. 741.

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

Rev. Proc. 2003–43, 2003–1 C.B. 998; Rev. Proc. 97–48, 1997–2 C.B. 521.

Rev. Proc. 97–49, 1997–2 C.B. 523.

January 5, 2004 78 2004-1 I.R.B.

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. 89–56, 1989–2 C.B. 643.

Rev. Proc. 2002–32, 2002–1 C.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

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. 2002–59, 2002–2 C.B. 615.

Rev. Proc. 84–37, 1984–1 C.B. 513, as modified by Rev. Proc. 86–17, 1986–1 C.B. 550, and Rev. Proc. 2004–1 (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. 2002–64, 2002–2 C.B. 717, 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, 2002–1 C.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, 1999–2 C.B. 429; Rev. Rul. 91–17, 1991–1 C.B. 190.

Rev. Proc. 2001–42, 2001–2 C.B. 212.

Notice 98–3, 1998–1 C.B. 333.

2004-1 I.R.B. 79 January 5, 2004

SUBJECT MATTERS REVENUE PROCEDURE

Accounting periods; changes in period

Classification of liquidating trusts

Earnings and profits determinations

Estate, gift, and generation-skipping transfer tax issues

Deferred intercompany transactions; election not to defer gain or loss

Rev. Proc. 2002–39, 2002–1 C.B. 1046, as clarified and modified by Notice 2002–72, 2002–2 C.B. 843, and as modified by Rev. Proc. 2003–34, 2003–1 C.B. 856; and Rev. Proc. 2004–1 (this revenue procedure) for which sections 1, 2.01, 2.02, 2.05, 3.03, 5.02, 6.03, 6.05, 6.07, 6.11, 7.01(1), 7.01(2), 7.01(3), 7.01(4), 7.01(5), 7.01(6), 7.01(8), 7.01(9), 7.01(10), 7.01(13), 7.01(14), 7.01(15), 7.02(2), 7.02(4), 7.02(5), 7.02(6), 7.03, 7.04, 7.05, 7.07, 8.01, 8.03, 8.04, 8.05, 8.06, 10, 11, 15, 17, 18, Appendix A, and Appendix E are applicable.

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.

Rev. Proc. 75–17, 1975–1 C.B. 677; Rev. Proc. 2004–1 (this revenue procedure), sections 2.05, 3.03, 7, 8, and 10.05; and Rev. Proc. 2004–3 (this Bulletin), section 3.01(28).

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

Rev. Proc. 97–49, 1997–2 C.B. 523.

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

Rate orders; regulatory agency; normalization

Unfunded deferred compensation

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 Associate 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:LPD:DRU, 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:LPD:DRU, Room 5336, 1111 Constitution Avenue, N.W., Washington, D.C. 20224). These communications will be treated as third party contacts for purposes of § 6110.

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

103 and 141–150 Issuance of state or local obligations

REVENUE PROCEDURE

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).

January 5, 2004 80 2004-1 I.R.B.

168 Depreciation of original and replacement tires for certain vehicles

168 Depreciation of fiber optic node and trunk line of a cable television distribution system

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

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

Rev. Proc. 2002–27, 2002–1 C.B. 802.

Rev. Proc. 2003–63, 2003–32 I.R.B. 304

Rev. Proc. 95–27, 1995–1 C.B. 704.

Rev. Proc. 92–51, 1992–1 C.B. 988.

Rev. Proc. 88–53, 1988–2 C.B. 712.

Rev. Proc. 2003–53, 2003–31 I.R.B. 230; Rev. Proc. 2003–54, 2003–31 I.R.B. 236; Rev. Proc. 2003–55, 2003–31 I.R.B. 242; Rev. Proc. 2003–56, 2003–31 I.R.B. 249; Rev. Proc. 2003–57, 2003–31 I.R.B. 257; Rev. Proc. 2003–58, 2003–31 I.R.B. 262; Rev. Proc. 2003–59, 2003–31 I.R.B. 268; Rev. Proc. 2003–60, 2003–31 I.R.B. 274.

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. 2003–43, 2003–1 C.B. 998.

2004-1 I.R.B. 81 January 5, 2004

Rev. Proc. 2001–12, 2001–1 C.B. 335.20.2056A–2(d)(1)(i) and (d)(1)(ii) Qualified Domestic Trust

2702(a)(3)(A) and 25.2702–5(c) Qualified Personal Residence Trust

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

Rev. Proc. 96–54, 1996–2 C.B. 386.

Rev. Proc. 2003–42, 2003–1 C.B. 993

Rev. Proc. 92–101, 1992–2 C.B. 579.

SUBJECT MATTERS REVENUE PROCEDURE

Certain rent-to-own contracts treated as leases

Automatic change in accounting period revenue procedures

Rev. Proc. 95–38, 1995–2 C.B. 397.

.03 For requests to change an accounting period, see the following automatic change revenue procedures published and/or in effect as of December 31, 2003. 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.

The automatic change revenue procedures for obtaining a change in annual accounting period include: Rev. Proc. 2002–37, 2002–1 C.B. 1030, as clarified and modified by Notice 2002–72, 2002–2 C.B. 843, and as modified by Rev. Proc. 2003–34, 2003–1 C.B. 856 (certain corporations); Rev. Proc. 2002–38, 2002–2 C.B. 1037, as clarified and modified by Notice 2002–72, 2002–2 C.B. 843 (certain partnerships, S corporations, electing S corporations, or personal service corporations); and Rev. Proc. 2003–62, 2003–32 I.R.B. 299 (individual seeking a calendar year).

January 5, 2004 82 2004-1 I.R.B.

26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.

Rev. Proc. 2004–2

TABLE OF CONTENTS

SECTION 1. WHAT IS THE PURPOSE OF THIS REVENUE PROCEDURE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

.01 Operating divisions of the Internal Revenue Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 .02 When a TAM or a TEAM should be requested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 .03 Taxpayer participation not required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 .04 Delegation of authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 .05 Updated annually . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

SECTION 2. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86