SECTION 6. WHEN SHOULD

A TAM OR A TEAM NOT BE REQUESTED?

§ 301.9100 requests .01 A request for an extension of time for making an election or other application for relief under § 301.9100–3 of the Procedure and Administration Regulations is not submitted as a request for a TAM or a TEAM; instead, the request is submitted as a letter ruling request even if the request is submitted after the examination of the taxpayer’s return has begun or after the issues in the return are being considered in Appeals or a federal court. Therefore, a § 301.9100 request should be submitted pursuant to Rev. Proc. 2006–1 (including the payment of the applicable user fee listed in Appendix A of Rev. Proc. 2006–1).

Frivolous issues .02 For purposes of this revenue procedure, a “frivolous issue” is one without basis in fact or law, or that espouses a position that has been held by the courts to be frivolous or groundless. Examples of frivolous or groundless issues include, but are not limited to:

(1) frivolous “constitutional” claims, such as claims that the requirement to file tax returns and pay taxes constitutes an unreasonable search barred by the Fourth Amendment; violates Fifth and Fourteenth Amendment protections of due process; violates Thirteenth Amendment protections against involuntary servitude; or is unenforceable because the Sixteenth Amendment does not authorize nonapportioned direct taxes or was never ratified;

(2) claims that income taxes are voluntary, that the term “income” is not defined in the Internal Revenue Code, or that the preparation and filing of income tax returns violates the Paperwork Reduction Act;

(3) claims that tax may be imposed only on coins minted under a gold or silver standard or that receipt of Federal Reserve Notes does not cause an accretion to wealth;

(4) claims that a person is not taxable on income because he or she falls within a class entitled to “reparation claims” or an extra-statutory class of individuals exempt from tax (for example, “free-born” individuals);

(5) claims that a taxpayer can refuse to pay taxes on the basis of opposition to certain governmental expenditures;

Sec. 4 January 3, 2006 94 2006–1 I.R.B.

A director may not request a TAM or a TEAM if Appeals is currently considering the identical issue for the same taxpayer

(6) claims that taxes apply only to federal employees; only to residents of Puerto Rico, Guam, the U.S. Virgin Islands, the District of Columbia, or “federal enclaves” ; or that §§ 861 through 865 or any other provision of the Internal Revenue Code imposes taxes on U.S. citizens and residents only on income derived from foreign-based activities;

(7) claims that wages or personal service income are not “income,” are “nontaxable receipts,” or “are a nontaxable exchange for labor” ;

(8) claims that income tax withholding by an employer on wages is optional; or

(9) other claims the courts have characterized as frivolous or groundless.

.03 A case remains under the jurisdiction of the director even though Appeals has the identical issue under consideration in the case of another taxpayer (not related within the meaning of § 267 or a member of an affiliated group of which the taxpayer is not also a member within the meaning of § 1504) in a different transaction. With respect to the same taxpayer or the same transaction, when the issue is under the jurisdiction of Appeals and the applicability of more than one kind of federal tax is dependent upon the resolution of that issue, a director may not request a TAM or a TEAM on the applicability of any of the taxes involved.

A field office may not request a TAM or a TEAM on an issue if the same issue of the same taxpayer (or of a related taxpayer within the meaning of § 267 or a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) is in a docketed case for any taxable year. If a case is docketed for an estate tax issue of a taxpayer while a request for a TAM or a TEAM on the same issue of the same taxpayer is pending, the Associate office may issue the TAM or the TEAM only if the appropriate Appeals officer and field counsel agree, by memorandum, to the issuance of the TAM or the TEAM.

Issues in docketed cases .04 A field office may not request a TAM or a TEAM on an issue if the same issue is involved in a docketed case for the same or related taxpayer for any taxable year.

Collection issues .05 The Associate Chief Counsel (Procedure and Administration) does not issue TAMs or TEAMs on matters arising under the Internal Revenue Code and related statutes and regulations that involve the collection of taxes (including interest and penalties).

Alternate forms of legal advice .06 The assigned Associate office attorney and reviewer should consider whether a TAM or a TEAM is the best format for the legal advice. In some cases, drafting a lengthy written analysis may delay delivery of the conclusion. In addition, in some cases, published general guidance may be appropriate. See section 10.04 of this revenue procedure.