SECTION 6. FACTORS AND

GUIDELINES USED BY THE SERVICE IN CONSIDERING REQUESTS FOR CONSENT UNDER SECTION 1.1502–13(e)(3)

.01 Whether it is difficult for the consolidated group to account for those inter-company transactions for which consent is requested when they are treated on a single entity basis and, if so, why it is difficult to do so.

.02 Whether the Effect on CTI or CTL for the consent year or the average of the Effect on CTI or CTL for the consent year and each of the preceding two taxable years is greater than 5 percent. Consent under § 1.1502–13(e)(3) will not be granted in cases where either (a) the Effect on CTI or CTL is greater than 5 percent for the consent year or (b) the average of the Effect on CTI or CTL for the consent year and each of the two preceding taxable years is greater than 5 percent. However, consent will generally be granted in cases where (a) the Effect on CTI is less than 5 percent for the consent year and the average of the Effect on CTI for the consent year and each of the two preceding taxable years is less than 5 percent and (b) the Effect on CTL is less than 5 percent for the consent year and the average of the Effect on CTL for the consent year and each of the two preceding taxable years is less than 5 percent.

.03 Whether the consolidated group will secure the benefit of any deduction, credit, or other allowance that it would not otherwise secure if consent to treat those intercompany transactions for which consent is requested on a separate entity basis were not granted.

.04 Whether the gains that are the subject of the consent to treat intercompany transactions on a separate entity basis have resulted from arm’s-length charges or prices.

2009–27 I.R.B. 109 July 6, 2009