SECTION 16. EFFECT — Internal Revenue Bulletin 2016-1

ON OTHER DOCUMENTS

SECTION 17. EFFECTIVE DATE

DRAFTING INFORMATION

.02 During the course of an examination of a taxpayer’s return by the field office or during consideration of the taxpayer’s return by the Appeals Area Director, a taxpayer’s request to limit retroactivity must be made in the form of a request for a TAM. This includes recommendations by a Director that an earlier letter ruling or TAM be modified or revoked. The request must meet the general requirements of a request for technical advice. It must also: (1) state that it is being made under § 7805(b); (2) state the relief sought; (3) explain the reasons and arguments in support of the relief sought; and (4) include any documents bearing on the request. The taxpayer’s request must be submitted to the Director, who should then forward the request to the Associate office for consideration. If the taxpayer submits a request for relief after the initial TAM request, the taxpayer must provide justification for having delayed the request.

.03 A request for relief under § 7805(b) must be made in the form of a request for a letter ruling if: (1) a TAM addressing a continuing transaction is modified or revoked by later published guidance; and (2) the request for relief is submitted before an examination has begun covering the tax period(s) for which relief is sought. The requirements for a letter ruling request are given in Rev. Proc. 2016–1 (this Bulletin).

.04 When a request for a TAM concerns only the application of § 7805(b), the taxpayer has the right to a conference with the Associate office in accordance with the provisions of section 9 of this revenue procedure. If the request for application of § 7805(b) is included in the request for a TAM on the substantive issues or is made before the conference of right on the substantive issues, the § 7805(b) issues will be discussed at the taxpayer’s one conference of right. If the request for the application of § 7805(b) is made as part of a pending TAM request after a conference has been held on the substantive issues and the Director determines that there is justification for having delayed the request, then the taxpayer will have the right to one conference of right concerning the application of § 7805(b), with the conference limited to discussion of this issue only.

.05 When a TAM grants a taxpayer relief under § 7805(b), the Director may not request reconsideration of the § 7805(b) issue unless the Director determines there has been a misstatement or omission of controlling facts by the taxpayer in its request for § 7805(b) relief.

Section 7.02 was amended to clarify the process by which a field office may request a single TAM when the subject matter of the request involves a transaction among multiple taxpayers. Section 12.01 was amended to clarify that Appeals will not settle an issue contrary to a TAM if it concerns an organization’s exempt status or private foundation classification, although Appeals may submit a new TAM to propose a disposition of the issue contrary to the original TAM.

Rev. Proc. 2015–2, 2015–1 I.R.B. 90, is superseded.

This revenue procedure is effective January 4, 2016.

The principal author of this revenue procedure is Eliezer Mishory of the Office of Associate Chief Counsel (Procedure and Administration). For further information regarding this revenue procedure for matters under the jurisdiction of:

(1) the Associate Chief Counsel (Corporate), contact Ken Cohen at (202) 317-7700 or Jean Broderick at (202) 317-6848 (not a toll-free call);

Sec. 17 January 4, 2016 122 Bulletin No. 2016–1

(2) the Associate Chief Counsel (Financial Institutions and Products), contact Scott Brown at (202) 317-4423 (not a toll-free call);

(3) the Associate Chief Counsel (Income Tax and Accounting), contact R. Matthew Kelley at (202) 317-7002 (not a toll-free call);

(4) the Associate Chief Counsel (Passthroughs and Special Industries), contact Leta Wolfe at (202) 317-5260 (not a toll-free call);

(5) the Associate Chief Counsel (Procedure and Administration), contact Charles Hall at (202) 317-3400 (not a toll-free call);

(6) the Associate Chief Counsel (Tax Exempt and Government Entities), contact Michael B. Blumenfeld at (202) 317-6000 (not a toll-free call);

(7) the Associate Chief Counsel (International), contact Nancy Galib at (202) 317-3800 (not a toll-free call);

(8) the Commissioner (Large Business & International Division), contact Shirley S. Lee at (202) 317-3152 (not a toll-free call);

(9) the Commissioner (Small Business/Self-Employed Division), contact Samuel Berman at (240) 613-6368 (not a toll-free call);

(10) the Commissioner (Wage and Investment Division), contact Geoffrey Gerbore at (631) 447-4428 (not a toll-free call); or

(11) the Office of Appeals, contact Gary T. Easley at (702) 868-5152 (not a toll-free call).

Sec. 17 Bulletin No. 2016–1 123 January 4, 2016

INDEX

References are to sections in Rev. Proc. 2015–2

Additional Information

—for pre-submission conference..............................................................................................................................................6.05

—initial processing of TAM request........................................................................................................................................8.06

—after conference of right........................................................................................................................................................9.06

—proposed deletions under § 6110 ..............................................................................................................................7.05, 10.03

—Service will request additional information from the taxpayer by express mail services or fax ......................................8.06

Appeal of decision to seek or not seek TAM..........................................................................................................................5.03

—The decision of the Director, the LB&I Territory Manager, or the Tax Exempt Bonds Manager, Field Operations may be reviewed but not appealed ..............................................................................................................5.04

Civil fraud or criminal investigation cases ............................................................................................................................10.12

Conferences

—offered.........................................................................................................................................................................6, 9, 14.04

—after conference of right........................................................................................................................................................9.05

—scheduling.....................................................................................................................................................................6.06, 9.02

request to limit retroactivity................................................................................................................................................14.04

telephone conferences..................................................................................................................................................6.07, 9.07

Definitions

—Appeals officer ......................................................................................................................................................................2.04

—Director..................................................................................................................................................................................2.02

—field office..............................................................................................................................................................................2.07

—field counsel...........................................................................................................................................................................2.08

—frivolous issue........................................................................................................................................................................4.04

—taxpayer..................................................................................................................................................................................2.05

—technical advice.....................................................................................................................................................................1.01

—Territory Manager .................................................................................................................................................................2.03

Discussions with Taxpayers

—contents of TAM.................................................................................................................................................................10.09

—substantive issues at pre-submission conference..................................................................................................................6.09

—tentative conclusion in TAM ................................................................................................................................................8.09

Employee Plans and Exempt Organizations

—application of § 6104 ............................................................................................................................................................7.05

Extension of Time

—to appeal decision not to request a TAM.............................................................................................................................5.03

—to disagree with statement of facts in technical advice request..........................................................................................7.06

—to schedule conference..........................................................................................................................................................9.03

—to submit additional information requested by Associate office in initial processing of TAM.........................................8.07

—to submit additional information after conference...............................................................................................................9.06

Foreign laws and documents

—certified English translations ............................................................................................................................................7.03(2)

—effect if interpretation is a material fact..........................................................................................................................7.03(1)

—when required........................................................................................................................................................................7.03

Issues Eligible for TAMs...............................................................................................................................................................3

Issues Not Eligible for TAMs .......................................................................................................................................................4

January 4, 2016 124 Bulletin No. 2016–1

INDEX

Penalties of Perjury Statement

—form........................................................................................................................................................................................7.06

—required when no factual agreement ....................................................................................................................................7.06

—required with additional information....................................................................................................................................8.06

—signature requirement for deletion statement .......................................................................................................................7.05

Power of Attorney.....................................................................................................................................................................7.10

Pre-submission Conferences ..........................................................................................................................................................6

Public Inspection Under § 6110

—deletion statement required...................................................................................................................................................7.05

exception when § 6104 applies ....................................................................................................................................7.05

—notice of intention to disclose.............................................................................................................................................10.03

protesting deletions not made.....................................................................................................................................10.11

Responsibility for Requesting Advice......................................................................................................................................5.01

Retroactive Effect

—request to limit retroactivity................................................................................................................................................14.01

format of request..............................................................................................................................................14.02, 14.03

—right to conference ..............................................................................................................................................................14.04

Section 301.9100 Relief............................................................................................................................................................4.03

Status of TAM.........................................................................................................................................................................10.02

Taxpayer Participation ..............................................................................................................................................................3.03

—consequences of failure to participate in material stage ............................................................................................7.06, 8.06

What to Include in the Request for Advice

—Memorandum of issues, facts, law, and arguments.............................................................................................................7.01

—Statement proposing information to be deleted from public inspection .............................................................................7.05

—Transmittal Form 4463..........................................................................................................................................................7.07

—Number of copies..................................................................................................................................................................7.09

—Power of attorney..................................................................................................................................................................7.10

Where to Send

—information required prior to pre-submission conference....................................................................................................6.05

—request for a TAM ................................................................................................................................................................5.02

Withdrawal of TAM Requests.....................................................................................................................................................11

Bulletin No. 2016–1 125 January 4, 2016

26 CFR 601.201: Rulings and determination letters.

Rev. Proc. 2016–3

TABLE OF CONTENTS

SECTION 1. PURPOSE AND NATURE OF CHANGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126

SECTION 2. BACKGROUND AND SCOPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

SECTION 3. AREAS IN WHICH RULINGS WILL NOT BE ISSUED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

SECTION 4. AREAS IN WHICH RULINGS WILL NOT ORDINARILY BE ISSUED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .133

SECTION 5. AREAS UNDER STUDY IN WHICH RULINGS WILL NOT BE ISSUED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139

SECTION 6. AREAS COVERED BY AUTOMATIC APPROVAL PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140

SECTION 7. EFFECT ON OTHER REVENUE PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141

SECTION 8. EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141

SECTION 9. PAPERWORK REDUCTION ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141

DRAFTING INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141