SECTION 3. OTHER PROCEDURES

RELATING TO § 482 SETOFF CLAIMS

.01 The notification to the Commissioner of a § 482 setoff required under § 1.482–1(g)(4)(ii) of the regulations must be a separate written statement.

.02 The notification must sufficiently identify the non-arm’s length transaction(s) upon which the claimed § 482 setoff is based so as to constitute a reasonable foundation for the claimed § 482 setoff and permit verification by the Commissioner. Under § 1.482–1(g)(4)(i) of the regulations, the non-arm’s length transaction(s) must be between the same controlled taxpayers and in the same taxable year as involved in the transaction that is the subject of the adjustment pursuant to § 482 against which the § 482 setoff is claimed.

.03 The notification must also contain:

Transportation list in effect at the time of the domestic segment.