SECTION 10. RESULTS OF MAP

CASE

.01 Notification . The outcome of most MAP cases will be a MAP resolution, which may be reached either through direct consultations with the foreign competent authority, through arbitration, or otherwise. When a tentative MAP resolution is reached during the course of the MAP process, the U.S. competent authority will notify the taxpayer and outline its general terms. Generally, a MAP resolution is not final until it has been reviewed and approved within the office of the U.S. competent authority and until the MAP case has been formally closed by both competent authorities. For cases resolved through arbitration, see section 12. The taxpayer will also be notified if the competent authorities have determined that a MAP resolution will not be reached. In that event, the taxpayer may withdraw its MAP request and pursue all rights otherwise available to it ( see section 10.04).

.02 Implementation. If the taxpayer accepts the terms of the MAP resolution, the U.S. competent authority will direct the relevant offices within the IRS to implement it accordingly. To the extent authorized under the applicable U.S. tax treaty, the MAP resolution will be implemented notwithstanding any time limits or other procedural limitations under the Code and regulations. If the taxpayer does not accept the MAP resolution, it may withdraw its MAP request and pursue all rights otherwise available to it ( see section 10.04).

.03 Closing Agreement . When appropriate, the IRS may request that the taxpayer execute a closing agreement reflecting the terms of the MAP resolution. ( See Rev. Proc. 68–16, 1968–1 C.B. 770 (as modified by Rev Proc. 94–67, 1994–2 C.B. 800)).

.04 Special Issues Where No MAP Res- olution with Respect to Foreign-initiated Adjustment . In any given MAP case, it is possible that the U.S. and foreign competent authorities will not reach a MAP res

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olution despite their jointly endeavoring in good faith to do so. If such a MAP case involves a foreign-initiated adjustment and arbitration is not available, the taxpayer will be notified in accordance with section 10.01. Such notification may identify the protective measures or other steps the taxpayer must take to establish that amounts paid to the treaty country in connection with the foreign-initiated adjustment constitute compulsory payments of tax within the meaning of Treas. Reg. §1.901–2(e)(5) and to maintain its eligibility for competent authority assistance. Such steps may include the taxpayer’s pursuit of administrative and judicial remedies in the treaty country and, if credits are claimed for amounts paid before the contest is resolved, the taxpayer’s agreement to extend the U.S. statute of limitations on assessment while contesting the foreign-initiated adjustment.