SECTION 12. DRAFTING

INFORMATION

The principal author of this revenue procedure is William M. Kostak of the Office of Associate Chief Counsel (Procedure and Administration). For further information regarding this revenue procedure, contact William M. Kostak at (202) 622–4910 (not a toll-free call).

Service identifying and describing the amount of the disputable tax at the time the deposit is remitted. The written statement also must include:

(1) The taxpayer’s calculation of the amount of disputable tax;

(2) A description of any item of income, gain, loss, deduction or credit for which the taxpayer has a reasonable basis for the treatment of the item on its return, and for which the taxpayer reasonably believes that the Service also has a reasonable basis for disallowing the taxpayer’s treatment of the item; and

(3) The basis for the taxpayer’s belief that it has a reasonable basis for the treatment of any item described in section 7.02(2) on its return and that the Secretary also has a reasonable basis for disallowing the taxpayer’s treatment of such item.

.03 Taxpayers choosing to rely on the amount of a deficiency proposed in a 30-day letter as the amount of the disputable tax under section 6603(d)(2)(B) may, in lieu of the written statement described in section 7.02, provide a copy of the 30-day letter issued to the taxpayer.

.04 If a taxpayer fails to identify the amount and nature of the disputable tax in writing or provide a copy of the 30-day letter at the time of the deposit, the payment of interest will not be allowed if the deposit is later withdrawn by the taxpayer unless the taxpayer subsequently provides the Service a written statement identifying and describing the amount of the disputable tax. In such case, interest will be allowed on the deposit under section 6603 as of the date on which the amount and nature of the disputable tax is identified.