SECTION 5. ADDRESSES AND CONTACT INFORMATION

.01 APMA Contact Information .

Telephone number: TBD

Mailing address: Deputy Commissioner (International)

Large Business and International Division

Internal Revenue Service

1111 Constitution Avenue, N.W.

Routing: M3-370

Washington, D.C. 20224

(Attention: APMA)

December 9, 2013 652 Bulletin No. 2013–50

All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS, FedEx, UPS, or any other carrier.

Website: [link to be included when available]

Office location: 801 Ninth Street, N.W., Washington, D.C. 20001.

Mail should not be sent to this address.

.02 TAIT Contact Information.

Telephone number: TBD

Mailing address: Deputy Commissioner (International)

Large Business and International Division

Internal Revenue Service

1111 Constitution Avenue, N.W.

Routing: M4-365

Washington, D.C. 20224

(Attention: TAIT)

All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS, FedEx, UPS, or any other carrier.

Website: [link to be included when available]

Office location: 801 Ninth Street, N.W., Washington, D.C. 20001.

Mail should not be sent to this address.

Proposed Revision of Procedures for Advance Pricing Agreements

Notice 2013–79

PURPOSE

This notice proposes a revenue procedure that would update and supersede Rev. Proc. 2006–9, 2006–1 C.B. 278, as modified by Rev. Proc. 2008–31, 2008–1

C.B. 1133, which is also superseded. The proposed revenue procedure would provide guidance and instructions on APAs and guidance and information on the IRS’s administration of APAs.

The proposed revenue procedure would substantially restate Rev. Proc. 2006-9 to improve clarity, readability, and organization. The proposed revenue procedure also would reflect structural changes undertaken by the IRS since 2006, including the establishment of the

Large Business & International Division, the realignment and consolidation of IRS transfer pricing resources under the Director, Transfer Pricing Operations, and the creation of the Advance Pricing and Mutual Agreement Program, the office responsible for evaluating, executing, and administering APAs on behalf of the IRS.

Additionally, the proposed revenue procedure would effect a limited number of significant substantive changes. These changes may be summarized as follows:

Bulletin No. 2013–50 653 December 9, 2013

Section of Proposed Update to Rev. Proc. Nature of Addition or Changes

2006–9

2.02(3) Explains potential interactions between requests for advance pricing agreements and requests for competent authority assistance. Recognizes that APMA may, in appropriate circumstances, condition its acceptance of an APA request upon taxpayer’s agreeing to roll back the terms of the proposed APA. Further recognizes that APMA may, in appropriate circumstances, encourage a taxpayer that has sought APMA’s assistance for a MAP case to extend the MAP resolution to APA years.

2.02(4) Restates a preference for bilateral and multilateral APAs over unilateral APAs and makes clear that APMA may reject a unilateral APA request if its acceptance would be inconsistent with procedures and practices established with particular treaty partners.

2.03(3) Requires that the taxpayer execute consent agreement(s) as necessary to extend the period of limitations for assessment of tax for each proposed APA year and each proposed APA rollback year.

3.02 Provides expanded pre-filing procedures, including mandatory submission of a pre-filing memorandum in cases raising certain issues.

3.02(2) Provides that a taxpayer filing an APA request eligible for the small case APA user fee may seek permission to submit an abbreviated APA request.

3.03(3)–(5) Provides for a new fling deadline for bilateral and multilateral APA requests.

3.04(1) Establishes an appendix listing revised specifcations for the content of APA requests.

3.06 Provides for e-mail communications between APMA and a taxpayer’s representative pursuant to a memorandum of understanding executed by the taxpayer.

3.07 Provides that a protective claim for credit or refund may be made by including the claim in a bilateral or multilateral APA request.

3.08 Clarifies that a complete APA request (updated and supplemented as required) will be a factor in determining whether the taxpayer has met the documentation requirements of Treas. Reg. §1.6662– 6(d)(2)(iii) for the proposed APA years.

4.01 Describes procedures for notifcation of receipt of an APA request.

4.02 States circumstances in which APMA may deny assistance with respect to an APA request or during the APA process.

4.02(3) Clarifies that APMA’s decision as to whether an APA request is complete or to deny, suspend or terminate assistance is not subject to administrative review.

4.03 Describes general practices that APMA will follow after an APA request has been filed with respect to, among other things, issuing case plans, conducting due diligence, and conveying its views on APA requests to the taxpayer.

4.05 Clarifes that mandatory arbitration may apply to certain bilateral or multilateral APA requests.

5.01 Elaborates on potential coordination between requests for advance pricing agreements and requests for competent authority assistance. Provides that a taxpayer may seek permission to submit an abbreviated APA request if the relevant factors surrounding its proposed APA years and any proposed APA rollback years are substantially the same as those in its MAP years or its MAP and ACAP years covered by a MAP resolution. Presents protocols for seeking permission to fle an abbreviated APA request in these circumstances.

5.02(4) States that APMA reserves the right to coordinate with applicable IRS offices to pursue an APA rollback to any or all of the taxpayer’s open pre-APA years, regardless of whether the taxpayer requests an APA rollback.

5.02(5) Clarifies that an APA rollback request submitted in connection with a bilateral or multilateral APA request and involving a taxable year under the jurisdiction of IRS Appeals will constitute a request for the Simultaneous Appeals Procedure, provided that the taxpayer provides an affrmative statement requesting SAP review.

5.02(6) Clarifies that, except in unusual circumstances, an APA rollback will not be made to a taxable year whose period of limitations for assessment of tax has expired in the United States.

7.02 Restates and revises the treatment of and procedures regarding repatriation payments for bilateral or multilateral APAs and unilateral APAs.

8.01 Provides that a taxpayer may seek permission to submit an abbreviated APA request in cases involving renewals of current APAs if the relevant factors of the current APA are substantially the same as those in the proposed renewal APA years. Presents protocols for seeking permission to file an abbreviated APA request in these circumstances.

Appendix – 3.04 Revises qualifications for small case APA user fee eligibility.

December 9, 2013 654 Bulletin No. 2013–50

The IRS and the Treasury Department request comments on this proposed revenue procedure. Comments may be submitted in writing on or before March 10, 2014. Comments should be submitted to Internal Revenue Service, CC:PA:LPD:PR (Notice 2013–79), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or electronically to Notice.Comments@irscounsel.treas.gov .

Please include ”Notice 2013–79” in the subject line of any electronic communications. Alternatively, comments may be hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (Notice 2013–79), Courier’s Desk, Internal Revenue Service, 1111 Constitution Ave., NW, Washington, DC. All comments will be available for public inspection and copying.

Rev. Proc. [2014–YY]

The procedures for APAs are proposed to be revised as follows:

PROPOSED REVENUE PROCEDURE

Procedures for Advance Pricing Agreements

Internal Revenue Code § 482: Allocation of income and deductions among taxpayers

SECTION 1: DEFINTIONS AND RULES OF CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 2: PURPOSE, BACKGROUND, SCOPE, AND GENERAL CONDITIONS UNDER WHICH THIS PROCEDURE APPLIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 3: PROCEDURES FOR FILING APA REQUESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 4: ACTIONS ON APA REQUESTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 5: APA ROLLBACKS AND COORDINATION WITH REV. PROC. 2014-XX . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 6: LEGAL EFFECT OF AN APA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 7: ADMINISTERING AN APA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 8: RENEWING AN APA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 9: DISCLOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 10: EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 11: EFFECTIVE DATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 12: PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 13: DRAFTING INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

APPENDIX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bulletin No. 2013–50 655 December 9, 2013