SECTION 1. CONTENT OF APA

REQUESTS

.01 General. An APA request must include a cover letter followed by the exhibits presented in the order as listed in this section. An original of the cover letter, signed and dated by the taxpayer or the taxpayer’s authorized representative, must be included in one of the three required printed copies of the APA request ( see section 2 of this appendix). If the taxpayer’s authorized representative signs the original of the cover letter, the tax

payer and authorized representative must satisfy the relevant instructions on signatures in Rev. Proc. 2005–1, 2005–1 I.R.B. 1 (or its successor). The cover letter and the exhibits must contain or respond to the required statements, descriptions, explanations, and other requested information. If the requested information is not applicable to the APA request, a suitable explanation must be provided.

.02 Cover Letter. The cover letter to the APA request must be presented according to the instructions and structure set forth below.

1.1 Identifying information : List the name, address, and taxpayer identification number(s) of each member of the proposed covered group and the Standard Industrial Classification (“SIC”) and the North American Industry Classification System (“NAICS”) codes (number and code description) of the controlled group as reported on the taxpayer’s most recently fled federal tax returns

1.2 Summary of APA request : Provide an executive summary of the content of the APA request that addresses the following:

a. Whether the taxpayer proposes a unilateral APA or a bilateral or multilateral APA, and, if applicable, the U.S. tax treaty(ies)

and treaty articles governing the APA request; b. Whether the APA request proposes a renewal of an existing APA or the extension of a MAP resolution from MAP or

ACAP years into APA years; c. The proposed APA years and the proposed APA rollback years; d. The proposed covered issue(s) and an estimated dollar value of such issue(s) in the proposed APA years and, if relevant,

the dollar values of the proposed covered issue(s) in the prior three pre-APA years; and e. The proposed covered method(s), including, as applicable, the proposed tested party(ies), profit level indicator(s), and inter quartile range(s)

Part 2. Administrative Information

2.1 Authorization : List the names of and contact information for all individuals authorized by a Form 2848 to represent the taxpayer in connection with the APA request and all individuals authorized by a Form 8821 to inspect or receive confidential tax information about the taxpayer in connection with the APA request, along with a designation as to which individual will serve as the point of contact for the APA team

2.2 IRS Office : Identify the IRS office having examination jurisdiction over the taxpayer, together with the name of and contact information for the taxpayer’s IRS Examination team manager if the taxpayer is under examination when the APA request is fled

2.3 Filed Years : Provide a table with the following information for each member of the proposed covered group:

a. All open filed years in the United States and the relevant treaty country(ies), whether or not such years are cur rently under examination by the IRS or a foreign tax authority; b. All open filed years in which a proposed covered issue or a substantially similar issue is under review by IRS

Appeals or its equivalent in the relevant treaty country(ies); c. All open filed years in which an actual or proposed adjustment has been made by either the IRS or a foreign

tax authority relating to the proposed covered issue(s) or to substantially similar issues; and d. The expiration dates of statutes of limitations for all open filed years in the United States and in the relevant

treaty country(ies)

2.4 Request for SAP Review : If applicable, include a statement that the APA request is intended to serve as a request for SAP review for such taxable years specified by the taxpayer pursuant to section 5.02(5) of this revenue procedure

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Part 3 . Proposed Covered Issue(s)

3.1 Pre-filing information : Provide the following information:

a. Whether a mandatory or optional pre-filing memorandum was filed; and b. Whether a pre-filing conference was held and, if so, the date of and attendees at the conference

3.2 APA rollback : Provide the following information:

a. If the taxpayer is seeking consideration of an APA rollback, list the open pre-APA years to which the APA

rollback would apply; and b. If the taxpayer is not seeking consideration of an APA rollback to one or more of its open pre-APA years, dis cuss the reasons as to why an APA rollback is not appropriate

3.3 Background on proposed covered group : Provide background on the following points, with reference to the covered issue diagrams:

a. The general history of the business operations of the proposed covered group and of the controlled group; b. The worldwide gross revenue of the controlled group in the most recent taxable year available; c. The functional currency of each member of the proposed covered group; d. For each member of the proposed covered group, any business line(s) that is (are) outside the scope of the pro posed covered issue(s); and e. The industry in which the proposed covered group operates, including discussion of relevant macroeconomic

and other industry-wide factors affecting the proposed covered group, the commercial features of the markets and geographical areas in which the proposed covered group operates, and the participants and competitors in the proposed covered group’s industry

3.4 Covered issue diagrams : Provide a detailed discussion of each proposed covered issue with reference to the covered issue diagrams:

a. The functions performed by each member of the proposed covered group in relation to the proposed covered

issue; b. The assets employed by each member of the proposed covered group in relation to the proposed covered issue; c. The risks assumed by each member of the proposed covered group in relation to the proposed covered issue; d. Transactional or commercial flows between and among members of the proposed covered group, between mem bers of the proposed covered group and customers and other uncontrolled parties, and between members of the proposed covered group and members of the controlled group outside of the proposed covered group; e. Principal intercompany contracts or other agreements, written or otherwise, between and among members of the

proposed covered group; and f. Unless the proposed covered method involves a profit split (within the meaning of Treas. Reg. § 1.482–6 or

Chapter II of the OECD Guidelines) between two or more members of the proposed covered group, the identity of the member of the controlled group that is proposed to be regarded as the principal in relation to the proposed covered issue, whether or not it is a member of the proposed covered group

3.5 Rulings, determinations, and proceedings : Provide information on the following:

a. Current or expired rulings issued by a relevant foreign tax authority covering intercompany transactions or busi ness activities of members of the proposed covered group that are within the scope of the proposed covered issue(s); b. The terms of any MAP resolution of a MAP case addressing intercompany transactions or business activities of

members of the proposed covered group that are within the scope of the proposed covered issue(s); and c. Any judicial or administrative proceedings in the United States or in the relevant treaty country(ies) to which

any members of the proposed covered group are or have been parties involving intercompany transactions or business activities that are within the scope of the proposed covered issue(s)

3.6 Ancillary issues : List the ancillary issues (if any) included in or among the proposed covered issue(s) of the APA request, e.g., terms of APA repatriation

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Part 4 . Proposed Covered Method(s)

4.1 Selection of proposed covered method(s) : Discuss the selection of the proposed covered method(s) with reference to the standards governing the selection of the “best method” under Treas. Reg. § 1.482-1(c) and, in the case of bilateral or multilateral APA requests, the selection of the “most appropriate” method under Chapter I of the OECD Guidelines

4.2 Search and screening process : Describe the research and screening process and criteria used to identify and select independent comparable agreements or independent companies upon which the proposed covered method is based, including the initial search universe, the qualitative and quantitative screens used to accept or reject potential comparable agreements or companies, and the numbers of potential comparable agreements or companies accepted and rejected at the different stages of the search and screening process

4.3 Adjustments within proposed covered method(s) : Provide a detailed explanation of any adjustments made to the selected proposed comparable agreements or results of independent companies or to the results of the tested party, such as adjustments relating to product line segregations; differences in accounting practices; differences in functions performed, assets employed, or risks assumed; volume or scale differences; or differences in economic or market conditions

4.4 Demonstration of proposed covered method(s) : Provide a table summarizing the results of applying the proposed covered method(s) to the relevant members of the proposed covered group for (i) the most recent three pre-APA years (or to as many pre-APA years as are available, if fewer than three are available), (ii) the first proposed APA year, and (iii) to the extent available, forecasted data of the relevant members of the proposed covered group for the proposed APA years

4.5 Segmentation of financial results : If the proposed covered method(s) is(are) applied to a subset of the assets, liabilities, income, and expenses in the financial statements ( see Exhibit 17), provide a segmentation of the financial statements and describe in detail (i) those items in the segmented financial statements that have been allocated or apportioned to the applicable proposed covered issue(s) and to other issues, and (ii) the method(s) of allocation or apportionment applied

Part 5 . Proposed APA Terms and Conditions

5.1 Review of Proposed APA : Provide a detailed discussion and explanation of the proposed APA terms and conditions as reflected in the draft APA submitted with the APA request, noting, in particular, any proposed APA terms and conditions that differ from the APA terms and conditions as reflected in the model APA available on the APMA website [link to be provided when available]

.03 Exhibits. The APA request must also include the following exhibits after the cover letter, separated and ordered as indicated. While all of the exhibits must be included as part of a complete APA request, certain exhibits are required to be produced in both printed and electronic forms; other exhibits need be produced only in electronic form ( see section 2 of this appendix).

Exhibit 1 Contents of exhibits : Provide a table or similar comprehensive list of the exhibits submitted in both printed and electronic form and those submitted in only electronic form

Exhibit 2 Authorization form : Include a properly executed Form 2848 ( Power of Attorney and Declaration of Repre- sentative ) or Form 8821 ( Tax Information Authorization )

Exhibit 3 Protective claim : In the case of a bilateral or multilateral APA request, provide a statement affirming whether the APA request is to serve as a protective claim pursuant to section 13 of Rev. Proc. 2014-XX and, if so, include the information required by section 13.02(3) of Rev. Proc. 2014-XX

Exhibit 4 Waiver of ex parte communication : If the APA request involves a rollback to pre-APA years in which the proposed covered issue(s) or a related issue is unresolved and under consideration by IRS Appeals, include a waiver, modeled on the following language, of the taxpayer’s right to be present during communications between IRS Appeals and members of the APA team:

Waiver of Ex Parte Communication: [Name of taxpayer(s)] agrees to the participation of IRS Appeals in the consideration of this APA request and hereby waives its right to be present during, or to participate in, meetings relating to the APA request or to be a party to discussions concerning the proposed covered issue(s) between IRS Appeals and members of the APA team

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Exhibit 5 Consent to disclosure : In the case of a bilateral or multilateral APA request, include a declaration, dated and signed by an authorized officer of the taxpayer having personal knowledge of the facts concerning the proposed covered issue(s), that the taxpayer consents to the disclosure of the contents of the APA request other than trade secrets, if the taxpayer so requests - to the applicable foreign competent authority(ies) within the limits contained in the U.S. tax treaty(ies) governing the APA request

Exhibit 6 “Penalties of perjury” declaration : Include the following “penalties of perjury” declaration:

Under penalties of perjury, I declare that I have examined this [APA request] [supplemental submission relating to this APA request], including accompanying documents, and, to the best of my knowledge and belief, the [APA request] [supplemental submission] contains all the relevant facts relating to the [APA request] [supplemental submission], and such facts are true, correct, and complete.

The declaration must be signed by the taxpayer on whose behalf the request is being made and not by the taxpayer’s representative. The person signing for a corporate taxpayer must be an authorized officer of the taxpayer who has personal knowledge of the facts, whose duties are not limited to obtaining letter rulings or determination letters from the IRS or negotiating APAs, and who is authorized to sign the taxpayer’s income tax return pursuant to section 6062 of the Code. The person signing for any non-corporate taxpayer must be an individual who has personal knowledge of the facts and who is authorized to sign in accordance with sections 6061 or 6063 of the Code, as applicable

Exhibit 7 E-mail authorization : Include a signed original of the memorandum of understanding authorizing communications with APMA via e-mail; or a statement that the taxpayer does not authorize e-mail communications, together with a brief explanation for its declining to do so ( see section 3.06 of this revenue procedure)

Exhibit 8 User fee receipt : Include a copy of the receipt obtained after paying the required APA user fee ( see section 3 of this appendix)

Exhibit 9 Documents submitted to foreign competent authorities : List all information or documents submitted to a foreign tax authority or foreign competent authority in connection with the APA request, either prior to or concurrently with the submission of the APA request to APMA, noting the information or documents for which English translations are available and any information or documents submitted to a foreign tax authority or foreign competent authority in connection with the APA request that are not included in the APA request submitted to APMA

Exhibit 10 Pre-filing Submissions : Include any pre-filing memoranda or other materials submitted in connection with the APA request

Exhibit 11 Covered issue diagrams : Include diagrams, charts, or similar representations depicting the following information, each presented in a manner similar to and with a degree of detail no less than that presented in the diagrams accompanying the case studies “Alpha” through “Foxtrot” in Joint Committee on Taxation, Pres- ent Law and Background Related to Possible Income Shifting and Transfer Pricing (JCX-37-10), July 20, 2010 (available at www.jct.gov ; see also APMA website [link to be included when available]):

a. The controlled group’s legal structure, with clear indications as to the members of the proposed covered group; b. The controlled group’s tax structure, with clear indications as to, among other items, ownership relationships and tax

filing characterizations of members of the proposed covered group under the Code and under applicable rules in the relevant treaty country(ies) (e.g., partnerships, branches, or disregarded entities); c. The controlled group’s and proposed covered group’s business units or similar organizational divisions as used for

management purposes, together with a table or other reconciliation showing the relationship between such business units and the legal entities comprising the controlled and proposed covered groups; d. The value chain of the proposed covered group, comprising commercial or transactional flows between and among

members or business units of the proposed covered group, between members or business units of the proposed covered group and customers and other uncontrolled parties, and between members or business units of the proposed covered group and any other members or business units of the controlled group outside the proposed covered group; e. Organization or similar charts identifying executive-level functional or occupational roles within the business

units or within members of the proposed covered group that are relevant to the proposed covered issue(s) (e.g., vice president of marketing for transactions involving sales of tangible goods), together with (i) the names of individuals occupying such executive-level functional roles at the time the APA request is filed, and (ii) headcounts for the relevant business units or members of the proposed covered group; and f. Intercompany contracts or agreements, whether written or implied, between and among members of the pro posed covered group and between and among members of the proposed covered group and members of the controlled group outside the proposed covered group

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Exhibit 12 APAs : Include a copy of any prior or current APA the taxpayer or another member of the proposed covered group has entered into with the IRS or with a foreign tax authority involving intercompany transactions or business activities within the scope of the proposed covered issue(s)

Exhibit 13 Selection process : Provide a table or similar report on the step-by-step results of applying criteria for selecting comparable agreements or independent comparable companies ( see part 4.2)

Exhibit 14 Information on selected comparables : Include a detailed discussion or detailed presentation, as applicable, of the following: the contractual terms (within the meaning of Treas. Reg. § 1.482–1(d)(3)(ii)) of selected comparable agreements, including the form of consideration charged or paid; and for APA requests in which the proposed covered method(s) involve(s) an application of the comparable profits method (as defined in Treas. Reg. § 1.482–5) or the transactional net margin method (as defined in the OECD Guidelines), (i) unadjusted income statement data for the most recent five taxable years (or as many years as are available, if fewer than five years are available) and balance sheet data for the most recent six taxable years (or as many years as are available, if fewer than six years are available) of the selected independent comparable companies, and (ii) (if applicable) the application to such financial data of any adjustments pursuant to the proposed covered method(s) ( see parts 4.3 and 4.4)

Exhibit 15 Application of APA template : For APA requests in which the proposed covered method involves an application of the comparable profits method (as defined in Treas. Reg. § 1.482–5) or the transactional net margin method (as defined in the OECD Guidelines), provide income statement data for the most recent five taxable years (or as many years as are available, if fewer than five years are available) and balance sheet data for the most recent six taxable years (or as many years as are available, if fewer than six years are available) for the relevant member(s) of the proposed covered group in the APA template (available on the APMA website [link to be included when available])

Exhibit 16 Federal income tax filings : Provide copies of the following federal income tax forms for each of the three most recent filed years of the taxpayer:

a. Form 1120 or applicable equivalent; b. Form 5471 ( Information Return of U.S. Persons With Respect to Certain Foreign Corporations ); c. Form 5472 ( Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a

U.S. Trade or Business ); and d. Form 8858 ( Information Return of U.S. Persons With Respect to Foreign Disregarded Entities )

Exhibit 17 Financial statements : Provide copies of financial statements (audited, if available) for each relevant member of the proposed covered group for each of the most recent three pre-APA years and specify the accounting standard used (e.g., U.S. GAAP)

Exhibit 18 Section 6662 documentation : Include a copy of the documentation prepared in consideration of section 6662(e) of the Code relating to intercompany transactions or business activities that are within the scope of the proposed covered issue(s) for each relevant member of the proposed covered group for each of the most recent three pre-APA years

Exhibit 19 Regulatory filings : Include a copy of the Form 10-K or similar annual SEC filing submitted for U.S. regulatory purposes by the controlled group for each of the most recent three pre-APA years

Exhibit 20 APA annual reports : For renewal APA requests, provide all APA annual reports filed with APMA with respect to the current APA

Exhibit 21 Proposed draft APA : Provide a proposed draft APA in a form substantially similar to APMA’s current model APA (available on the APMA website [link to be included when available]), together with a “redline” version of the same showing the differences between the model APA and the proposed draft APA

Exhibit 22 Intercompany agreements : Include copies of intercompany contracts or agreements between the taxpayer and other members of the proposed covered group that are within the scope of the proposed covered issue(s)