SECTION 14. HOW DOES A

FIELD 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 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 the 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. If no request for reconsideration is made during the 30-day period after the receipt of a TAM or a TEAM, the TAM or the TEAM is deemed adopted.

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 the 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

Sec. 13.01 January 3, 2005 110 2005–1 I.R.B.

a 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. In the event that a request for reconsideration fails to follow the procedures set forth in this section of this revenue procedure, or the request fails to raise issues or arguments different from those asserted in the initial TAM or TEAM request, the Associate office may return the request for reconsideration to the requesting party without ruling on the request for reconsideration.

If the field does not request reconsideration of a TAM or a TEAM, the TAM or the TEAM, once adopted, will take effect when the field provides a copy of the adopted TAM or TEAM to the taxpayer, as described in section 14.04 of this revenue procedure.

If reconsideration is requested for a TAM or a TEAM, the TAM or the TEAM will be deemed adopted five calendar days after the reconsideration is ruled on. After the reconsideration is ruled on and the TAM or the TEAM is adopted, the TAM or the TEAM will take effect when the field provides a copy of the adopted TAM or the TEAM to the taxpayer, described in section 14.04 of this revenue procedure.

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 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.

If reconsideration is requested for a TAM or a TEAM, the Service is not required to inform the taxpayer or the taxpayer’s representative that a request for reconsideration is being considered.

Provides copy to the taxpayer .04 Upon adopting the TAM or the TEAM, the director or the appeals area director 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)).

If a formal request for reconsideration is made and ruled upon, the director or the appeals area director will provide the taxpayer with the reconsidered TAM or TEAM only. The TAM or the TEAM drafted prior to the ruling on the request for reconsideration must not be forwarded to the taxpayer. Additionally, if a formal request for reconsideration is made and ruled upon, only the reconsidered TAM or TEAM will be open to public inspection and notations of third party communications under § 6110(d).

In the event that a TAM or a TEAM request pertains to more than one taxpayer (see section 1.03 of this revenue procedure), the director or the appeals area director will provide each pertinent taxpayer with a copy of the TAM or the TEAM, in accordance with this section of the revenue procedure.

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.

Sec. 14.04 2005–1 I.R.B. 111 January 3, 2005

Taxpayer may protest deletions not made

When no copy is given to the taxpayer