SECTION 4. APPLICATION

.01 When rescission request must be made . In accordance with sections 6707A(d) and 6707(c), a person ( i.e., a taxpayer under section 6707A or material advisor under section 6707) requesting rescission of a penalty assessed under either section 6707A or section 6707

must request rescission in writing within 30 days after the date the Service sends notice and demand for payment of the penalty pursuant to section 6303. If the person pays the penalty (not including interest) in full prior to the Service sending notice and demand for payment, the person must request rescission in writing within 30 days from the date of payment. The Service will apply sections 7502 and 7503 to determine whether a request for rescission is timely. A person may request rescission only after filing with the Service the complete return or statement required under section 6011 or 6111, as applicable. Additionally, in order to request rescission, a person must have exhausted the administrative remedies available within the IRS Office of Appeals regarding the proposed assessment of the penalty unless the person has agreed in writing to the assessment of the penalty and has agreed not to file or prosecute a claim for refund or credit of the penalty, administratively or through litigation, other than by requesting rescission. The method of requesting rescission that is provided in this revenue procedure is the exclusive method of requesting rescission. A person may not request rescission through a refund claim, in a collection due process hearing, or through any other avenue for approaching the Service.

.02 Information required in rescission request . The written request for rescission must include: (1) the name, address, telephone number, and Taxpayer Identification Number, as applicable, of the person against whom the relevant penalty is imposed; (2) the amount of the penalty imposed; (3) a copy of the complete return or statement required under section 6011 or 6111, as applicable, that the person filed with the Service; (4) a copy of the notice and demand for payment or a statement that the person made payment in full prior to receiving notice and demand; (5) a copy of the agreement to the assessment of the penalty and not to file or prosecute a claim for refund or credit of the penalty, if applicable; (6) a statement of the facts and circumstances relating to the violation, which includes the Code section under which the penalty was determined ( i.e., section 6707(a) or section 6707A(a)), the reason(s) the original return or statement was not timely filed or was incomplete, a description of the safeguards the

2007–9 I.R.B. 615 February 26, 2007

requesting rescission. The Service, however, will not suspend collection efforts solely because a person has made a rescission request.

.08 Where rescission request must be submitted . The written request for rescission should be sent to the following address:

Internal Revenue Service LM:PQA:JC:1953(RR) Large & Mid-Size Business Division 110 West 44th St., 3rd Floor New York, NY 10036

The person must send the written request to the above address prior to the date specified in section 4.01 of this revenue procedure.

.09 Request for additional information . After receiving the rescission request, the Service may make a written request seeking additional information and documents relating to the transaction, such as marketing materials and tax opinions, from the person requesting rescission. Requested information must be submitted to the Service within 30 days of the date of mailing of the request for additional information by the Service. The Service may grant an extension of time for good cause to persons who request additional time within the 30-day period. A person’s failure to provide the requested information within the applicable time period may weigh against rescission. Meritless claims of privilege may weigh against rescission. Further, the examining revenue agent and other Service employees involved with the examination may be asked to review and comment on the rescission request.