SECTION 18. WHAT IS — Internal Revenue Bulletin 2016-1

THE EFFECTIVE DATE OF THIS REVENUE PROCEDURE?

SECTION 19. PAPERWORK REDUCTION ACT

Editorial changes have been made throughout.

Section 5.16 was added to address letter ruling requests to revoke certain elections made on a return.

Section 7.03 was added to provide additional instructions for letter ruling requests involving welfare benefit funds (including voluntary employees’ beneficiary associations (VEBAs)).

Section 9.05 was updated to reflect a new address to send the duplicate copy of the Form 3115 for an automatic change in method of accounting; new addresses for exempt organizations to send the Form 3115; and that exempt organizations filing a Form 3115 for a non-automatic change in method of accounting are subject to the user fees in Appendix A of this revenue procedure.

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 Proc. 2015–1, 2015–1 I.R.B. 1 is superseded.

.02 Rev. Proc. 2015–13, 2015–5 I.R.B. 419, is modified as follows:

(a) “Covington, KY” is substituted for “Ogden, UT” each place it appears in Rev. Proc. 2015–13;

(b) “Duplicate copy” is substituted for “Ogden copy” or “Ogden” each place it appears in Rev. Proc. 2015–13; and

.03 Rev. Proc. 96–15, 1996–3 I.R.B. 41, as modified by Ann. 2001–22, 2001–11 I.R.B. 895, is modified as to the method of payment of user fees for a Statement of Value request.

This revenue procedure is effective January 4, 2016.

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control number 1545-1522.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collections of information in this revenue procedure are in sections 5.06, 6.03, 7.01, 7.02, 7.03, 7.04, 7.05, 7.07, 7.08, 8.02. 8.05, 8.07, 10.01, 10.06, 10.07, 11.11, 13.02, 15.02, 15.07, 15.08, 15.09, 15.11, paragraph (B)(1) of Appendix A, Appendix C, Appendix D, Appendix E, and Appendix G (subject matter—rate orders; regulatory agency; normalization). This information is required to evaluate and process the request for a letter ruling or determination letter. In addition, this information will be used to help the Service delete certain information from the text of the letter ruling or determination letter before it is made available for public inspection as required by § 6110. The collections of information are required to obtain a letter ruling or determination letter. The likely respondents are businesses or other for-profit institutions and tax exempt organizations.

Sec. 19 January 4, 2016 74 Bulletin No. 2016–1

DRAFTING INFORMATION

The estimated total annual reporting and/or recordkeeping burden is 316,020 hours.

The estimated annual burden per respondent/recordkeeper varies from 1 to 200 hours, depending on individual circumstances, with an estimated average burden of 80 hours. The estimated number of respondents and/or recordkeepers is 3,956.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by § 6103.

The principal author of this revenue procedure is Laura Leigh Bates 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 or Jean R. Broderick at (202) 317-7700 (not a toll-free call),

(2) the Associate Chief Counsel (Financial Institutions and Products), contact James Polfer at (202) 317-4556 (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 A. 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), or

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

For further information regarding user fees, contact the Docket, Records, and User Fee Branch at (202) 317-5221 (not a toll-free call).

For further information regarding determination letters:

SBSE and WI taxpayers should contact the offices listed in Appendix F of this Revenue Procedure;

LB&I taxpayers should contact Melanie Perrin in the Office of Pre-Filing and Technical Guidance, LB&I, at (202) 317-3157 (not a toll-free call);

TE/GE taxpayers should also refer to Revenue Procedures 2016–4, 2016–5 and 2016–6, this bulletin, and 2016–10, next bulletin.

Sec. 19 Bulletin No. 2016–1 75 January 4, 2016

INDEX

References are to sections in Rev. Proc. 2016–1

Additional Information

penalties of perjury statement required........................................................................................................................8.05(4)
proposed deletions under § 6110 ...............................................................................................................................7.01(11)
information requested during initial and subsequent contacts.........................................................................................8.05

failure to submit ...................................................................................................................................................8.05(3)

subsequent information after conference ...............................................................................................................10.06

where to send................................................................................................................................................................8.05(6)

Changes in Method of Accounting or Accounting Period

applicable sections of Rev. Proc. 2016–1 for changes in method of accounting................................................................9
applicable sections of Rev. Proc. 2016–1 for accounting period .......................................................................Appendix G
automatic change request procedures................................................................................................9.01, 9.22, Appendix G
identical changes in method of accounting.....................................................................................9.15, 15.07, Appendix A
user fees ................................................................................................................................................................Appendix A

Checklist Required .....................................................................................................................................7.01(18), Appendix C

Conferences

offered..............................................................................................................................................................................10.02

after conference of right .........................................................................................................................................10.05

application of § 6110.....................................................................................................................................7.01(11)(e)

requesting a conference ................................................................................................................................................7.02(6)
scheduling.............................................................................................................................................................10.01, 10.02

application of § 7805(b).....................................................................................................................11.11(2), 13.02(2)

pre-submission conferences....................................................................................................................................10.07

telephone conferences.............................................................................................................................................10.08

Definitions

Associate office.............................................................................................................................................................1.01(2)
closing agreement..............................................................................................................................................................2.02
- determination letter............................................................................................................................................................2.03
- Director..........................................................................................................................................................................1.01(3)
- Field office ................................................................................................................................................................1.01(4)
- taxpayer .........................................................................................................................................................................1.01(5)
- information letter ...............................................................................................................................................................2.04
- letter ruling.........................................................................................................................................................................2.01
- Service...........................................................................................................................................................................1.01(1)

Determinations Under § 999(d) .............................................................................................................................................5.04

Discussions Not Binding on Service

at pre-submission conference .....................................................................................................................................10.07(4)
informal opinion expressed ...............................................................................................................................................8.04
oral advice to taxpayers................................................................................................................................................2.05(2)

Employee Plans and Exempt Organizations

jurisdiction of Commissioner, Tax Exempt and Government Entities Division.............................................................4.02
user fees .............................................................................................................................................................................4.02

January 4, 2016 76 Bulletin No. 2016–1

Estate Tax Matters

issuance of determination letters .........................................................................................................................12.02, 12.05
issuance of letter rulings ...................................................................................................................................................5.06

under § 2032A(c)......................................................................................................................................................5.07

Expedited Handling of Letter Ruling and Determination Letter Requests ...............................................................7.02(4)

Extension of Time

to schedule conference ....................................................................................................................................................10.01
to submit additional information..................................................................................................................................8.05(2)

Fax Transmission

to receive letter ruling...................................................................................................................................................7.02(5)
to receive request for additional information...............................................................................................................7.02(5)
to submit additional information..................................................................................................................................8.05(5)
letter ruling requests must not be submitted by fax ...............................................................................................7.04(1)(c)

Hand Delivery of Letter Ruling Requests .......................................................................................................................7.04(1)

No-Rule Areas ..............................................................................................................................................................................6

Oral Advice to Taxpayers ......................................................................................................................................................2.05

Penalties of Perjury Statement

form for letter ruling request .................................................................................................................................7.01(15)(a)
form for submission of additional information............................................................................................................8.05(4)
required with draft letter ruling.........................................................................................................................................8.07
signature requirements ...........................................................................................................................................7.01(15)(b)

Pending Letter Ruling Requests

when to attach a copy to return ...................................................................................................................................7.05(2)

estate tax matters.......................................................................................................................................................5.06

when to notify Associate office ........................................................................................................................................7.05

estate tax matters.......................................................................................................................................................5.06

Power of Attorney

Form 2848.....................................................................................................................................................7.01(14), 7.02(2)

original sent to the taxpayer ................................................................................................................................7.02(2)

copy sent to a representative ...............................................................................................................................7.02(2)

copies sent to multiple representatives................................................................................................................7.02(2)

no copy sent to representatives............................................................................................................................7.02(2)

signature requirements................................................................................................................................................7.01(14)

Public Disclosure of Information Letters .............................................................................................................................2.04

Public Inspection Under § 6110 .....................................................................................................................................7.01(11)

signature requirements............................................................................................................................................7.01(11)(c)

Representatives

compliance with Treasury Department Circular No. 230 .........................................................................................7.01(13)
power of attorney required .........................................................................................................................................7.01(14)
requirements................................................................................................................................................................7.01(13)

authorized representatives..............................................................................................................................7.01(13)(a)

authorized based on relationship...................................................................................................................7.01(13)(b)

return preparer................................................................................................................................................7.01(13)(c)

foreign representative ....................................................................................................................................7.01(13)(d)

Bulletin No. 2016–1 77 January 4, 2016

Retroactive Revocation or Modification

of determination letter ..........................................................................................................................................................13

request to limit retroactive effect ...........................................................................................................................13.02

of letter ruling ....................................................................................................................................................11.05 - 11.10

request to limit retroactive effect ...........................................................................................................................11.11

Revenue Rulings

effect on a letter ruling....................................................................................................................................................11.04
request to limit retroactive effect....................................................................................................................................11.11

Sample of a Letter Ruling Request ..........................................................................................................7.01(17), Appendix B

Section 301.9100 Relief ...........................................................................................................................................................5.03

Section 367 Rulings .................................................................................................................................................................5.05

Status of Letter Ruling and Determination Letter Requests ............................................................................................7.07

Substantially Identical Letter Rulings .....................................................................................................15.07(2), Appendix A

Tax Exempt and Government Entities

jurisdiction of Commissioner, Tax Exempt and Government Entities Division.............................................................4.02
user fees .............................................................................................................................................................................4.02

User Fees

schedule of user fees ............................................................................................................................................Appendix A
user fee requirements............................................................................................................................................................15

to reopen case.......................................................................................................................................................8.05(3)

Where to Send

determination letter request...............................................................................................................................................7.04
- letter ruling request ..................................................................................................................................................7.04, 9.05

additional information............................................................................................................................8.05(6), 9.08(6)

hand delivery........................................................................................................................................................7.04(1)

Withdrawal of Letter Ruling and Determination Letter Requests ..................................................................................7.08

January 4, 2016 78 Bulletin No. 2016–1

APPENDIX A

SCHEDULE OF USER FEES

NOTE: Checks or money orders must be in U.S. dollars.

(A) FEE SCHEDULE

USER FEE FOR

REQUESTS RECEIVED AFTER

CATEGORY FEBRUARY 1, 2015

(1) User fee for a request for a determination letter from a Director. The user fee for each $275 determination letter request governed by Rev. Proc. 2016–1, this revenue procedure.

CATEGORY

$275

(2) User fee for a request for an advance pricing agreement or a renewal of an advance See section 3.05 of pricing agreement. Rev. Proc. 2015–41,

2015–35 I.R.B. 263.

(3) User fee for a request for a letter ruling or closing agreement. Except for the user fees for advance pricing agreements and renewals, the reduced fees provided in paragraph (A)(4) of this appendix, the user fees provided in paragraph (A)(5) of this appendix, and the exemptions provided in section 15.04 of Rev. Proc. 2016–1, this revenue procedure, the user fee for each request for a letter ruling or closing agreement under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Procedure and Administration), or the Associate Chief Counsel (Tax Exempt and Government Entities) is as follows:

(a) Accounting periods

(i) Form 1128, Application to Adopt, Change, or Retain a Tax Year, (except as provided

in paragraph (A)(4)(a) of this appendix)

(ii) Requests made on Part II of Form 2553, Election by a Small Business Corporation, to

use a fiscal year based on a business purpose (except as provided in paragraph (A)(4)(a) of this appendix)

(iii) Letter ruling requests for extensions of time to file Form 1128, Application to Adopt,

Change, or Retain a Tax Year, Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, or Part II of Form 2553 under § 301.9100–3 (except as provided in paragraph (A)(4)(a) of this appendix)

(b) Changes in Methods of Accounting

(i) Non-automatic Form 3115, Application for Change in Accounting Method (except as

provided in paragraph (A)(4)(a) or (b), or (5)(b) of this appendix)

(ii) Letter ruling requests for extensions of time to file Form 3115, Application for

Change in Accounting Method, under § 301.9100–3 (except as provided in paragraph (A)(4)(a) or (b), or (5)(c) of this appendix)

NOTE: Effective February 3, 2016, the user fees provided in paragraph (A)(3)(b) of this appendix apply to exempt organizations filing a Form 3115 for a non-automatic change in method of accounting.

No user fee is required if the change in accounting period or method of accounting is permitted to be made pursuant to a published automatic change request procedure. See section 9.22 and Appendix G of Rev. Proc. 2016–1, this revenue procedure, for the list of automatic change request procedures published and/or in effect as of December 31, 2015.

$4,200

$3,700

$8,600

$9,100

(ii) All other letter ruling requests (including accounting period and method of accounting requests $28,300

other than those properly submitted on Form 1128, Application to Adopt, Change, or Retain a Tax Year, Part II of Form 2553, Election by a Small Business Corporation, or Form 3115, Ap- plication for Change in Accounting Method ) (except as provided in paragraph (A)(4)(a) or (b), or (5)(a) of this appendix)

Bulletin No. 2016–1 79 January 4, 2016

USER FEE FOR

REQUESTS RECEIVED AFTER

CATEGORY FEBRUARY 1, 2015

(d) Requests for closing agreements on a proposed transaction or on a completed transaction $28,300

CATEGORY

$28,300

before a return for the transaction has been filed in which a letter ruling on that transaction is not requested or issued (except as provided in paragraph (A)(4)(a) or (b) of this appendix)

(e) A request for a Foreign Insurance Excise Tax Waiver Agreement $8,000

NOTE: A taxpayer who receives relief under § 301.9100–3 (for example, an extension of time to file Form 3115, Application for Change in Accounting Method ) will be charged a separate user fee for the letter ruling request on the underlying issue (for example, the accounting period or method of accounting application).

(4) Reduced user fee for a request for a letter ruling, method or period change, or closing agreement. A reduced user fee for a request involving a personal, exempt organization, governmental entity, or business tax issue is provided in the following situations if the person provides the certification described in paragraph (B)(1) of this appendix:

(a) Request involves a tax issue from a person with gross income (as determined under para graphs (B)(2), (3), (4), and (5) of this appendix) of less than $250,000

(b) Request involves a tax issue from a person with gross income (as determined under para graphs (B)(2), (3), (4), and (5) of this appendix) of less than $1 million and $250,000 or more.

(5) User fee for substantially identical letter ruling requests, identical changes in method of accounting, or plans from issuing authorities under § 25(c)(2)(B). If the requirements of section 15.07 of Rev. Proc. 2016–1, this revenue procedure, are satisfied, the user fee for the following situations is as follows:

(a) Substantially identical letter rulings requested (other than changes in methods of account ing requested on Form 3115)

Situations in which a taxpayer requests substantially identical letter rulings for multiple entities with a common member or sponsor, or for multiple members of a common entity, or for two or more identical trusts or for multiple beneficiaries of a trust or a trust divided into identical subtrusts or for husband and wife making split gifts, for each additional letter ruling request after the $28,300 fee or reduced fee, as applicable, has been paid for the first letter ruling request

NOTE: Each entity or member that is entitled to the user fee under paragraph (A)(5)(a) of this appendix, that receives relief under § 301.9100–3 (for example, an extension of time to file an election) will be charged a separate user fee for the letter ruling request on the underlying issue.

NOTE: The fee charged for the first letter ruling is the highest fee applicable to any of the entities.

(b) Identical change in method of accounting requested on a single Form 3115, Applica-

tion for Change in Accounting Method, as provided in section 15.07(4). Fee for each additional applicant seeking the identical change in method of accounting on the same Form 3115 after the $8,600 fee or reduced fee, as applicable, has been paid for the first applicant.

$2,200

$6,500

$2,700

$180

Situations where an issuing authority under § 25 submits substantially identical plans for administering the 95-percent requirement of § 143(d)(1) following the submission of an initial plan that was approved.

NOTE: The fee charged for the first letter ruling is the highest fee applicable to any of the entities.

(d) Extension of time requested to file Form 3115, Application for Change in Accounting

Method, for an identical change in method of accounting as provided in section 15.07(4). Fee for each additional or each additional applicant seeking the identical extension of time under § 301.9100–3 to file a single Form 3115 for the identical change in method of accounting after the $9,100 fee or reduced fee, as applicable, has been paid for the first applicant.

NOTE: When an extension of time to file Form 3115, Application for Change in Accounting Method, is granted under § 301.9100–3 for multiple applicants, a separate user fee will be charged for the change in method of accounting application, Form 3115.

$180

January 4, 2016 80 Bulletin No. 2016–1

USER FEE FOR

REQUESTS RECEIVED AFTER

CATEGORY FEBRUARY 1, 2015

(6) User fee for information letter requests. $0

(7) User fee for pre-filing agreements $50,000

(8) Tax treaty limitation of benefits. See Rev. Proc. 2015–40, 2015–35 I.R.B. 236 for proce- $27,500 dures for requesting competent authority assistance under tax treaties.

CATEGORY

$27,500

(9) Statement of Value. See Rev. Proc. 96–15 for procedures for requesting a statement of value.

(a) Effective February 3, 2016:

(i) User fee for a case with 1–3 items $5,700

(ii) Cost per each additional item beyond 3 $290

(B) PROCEDURAL MATTERS

(1) Required certification. A person seeking a reduced user fee under paragraph (A)(4) of this appendix must provide the following certification in order to obtain the reduced user fee:

(a) If a person is seeking a reduced user fee under paragraph (A)(4)(a) of this appendix, the person must certify in the request that his, her, or its gross income, as defined under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $250,000 as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed.

(b) If a person is seeking a reduced user fee under paragraph (A)(4)(b) of this appendix, the person must certify in the request that his, her, or its gross income, as defined under paragraphs (B)(2), (3), (4), and (5) of this appendix, as applicable, is less than $1 million and more than $250,000 for the last full (12 months) taxable year ending before the date the request is filed.

The certification must be attached as part of the ruling request. (2) Gross income for a request involving a personal tax issue. For purposes of the reduced user fees provided in paragraphs (A)(4)(a) and (b) of this appendix of—

(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to “total income” as reported on their last federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period. “Total income” is a line item on Federal tax returns. For example, if the 2014 Form 1040, U.S. Individual Income Tax Return, is the most recent 12-month taxable year return filed by a U.S. citizen, “total income” on the Form 1040 is the amount entered on line 22.

In the case of a request for a letter ruling or closing agreement from a domestic estate or trust that, at the time the request is filed, has not filed a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income as reported on the last Federal income tax return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to be made to total income described in this paragraph (B)(2)(a), is less than $250,000 (or less than $1,000,000 for the paragraph (A)(4)(b) fee to apply). In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appendix.

(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to “total effectively connected income” as reported on their last Federal income tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus any income for the period from United States or foreign sources that is not taxable by the United States, whether by reason of § 103, an income tax treaty, § 871(h) (regarding portfolio interest), or otherwise, plus the total amount of any fixed or determinable annual or periodical income from United States sources, the United States tax liability for which is satisfied by withholding at the source. “Total effectively connected income” is a line item on Federal tax returns. For example, if the 2014 Form 1040NR, U.S. Nonresident Alien Income Tax Return, is the most recent 12-month taxable year return filed by a nonresident alien individual, “total effectively connected income” on the Form 1040NR is the amount entered on line 23.

In the case of a request for a letter ruling or closing agreement from a foreign estate or trust that, at the time the request is filed, has not filed a Federal income tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) of this appendix will apply if the decedent’s or (in the case of an individual grantor) the grantor’s total income or total effectively connected income, as relevant, as reported on the last Federal income tax return filed for a full taxable year ending before the date of death or the date of the transfer, taking into account any additions required to be made to total income or total effectively connected income described respectively in paragraph (B)(2)(a) of this appendix or in this paragraph (B)(2)(b), is less than $250,000 (or less than $1,000,000 for the paragraph (A)(4)(b) fee to apply). In this case, the executor or administrator of the decedent’s estate or the grantor must provide the certification required under paragraph (B)(1) of this appendix.

Bulletin No. 2016–1 81 January 4, 2016

(3) Gross income for a request involving a business-related tax issue. For purposes of the reduced user fees provided in paragraphs (A)(4)(a) and (b) of this appendix of—

(a) U.S. citizens and resident alien individuals, domestic trusts, and domestic estates, “gross income” is equal to gross income as defined under paragraph (B)(2)(a) of this appendix, plus “cost of goods sold” as reported on the same Federal income tax return.

(b) Nonresident alien individuals, foreign trusts, and foreign estates, “gross income” is equal to gross income as defined under paragraph (B)(2)(b) of this appendix, plus “cost of goods sold” as reported on the same Federal income tax return.

(c) Partnerships with a Form 1065 filing requirement and corporations (foreign and domestic), “gross income” is equal to “total income” as reported on their last Federal tax return (as amended) filed for a full (12 months) taxable year ending before the date the request is filed, plus “cost of goods sold” as reported on the same Federal tax return, plus any interest income not subject to tax under § 103 (interest on state and local bonds) for that period. Partnerships with a Form 1065 filing requirement should also include “gross rents” reported on Form 8825 at line 2, as well as the income amounts reported on Schedule K Form 1065 at lines 3a, 5, 6a, 7, 8, 9a, 10, and 11 from the same Federal tax return described in the preceding sentence to calculate “gross income” for the purpose of applying the reduced user fee in paragraph (A)(4) of this Appendix. If a partnership is not required to file or a corporation is not subject to tax, “total income” and “cost of goods sold” are the amounts that the partnership or corporation would have reported on the Federal tax return if the partnership had been required to file or the corporation had been subject to tax.

“Cost of goods sold” and “total income” are line items on Federal tax returns. For example, if the 2014 Form 1065, U.S. Return of Partnership Income, is the most recent 12-month taxable year return filed by a partnership, “cost of goods sold” and “total income” on the Form 1065 are the amounts entered on lines 2 and 8, respectively, and if the 2014 Form 1120, U.S. Corporation Income Tax Return, is the most recent 12-month taxable year return filed by a domestic corporation, “cost of goods sold” and “total income” on the Form 1120 are the amounts entered on lines 2 and 11, respectively.

If, at the time the request is filed, a partnership or corporation subject to tax has not filed a Federal tax return for a full taxable year, the reduced user fee in paragraph (A)(4)(a) or (b) of this appendix will apply if, in the aggregate, the partners’ or the shareholders’ gross income (as defined in paragraph (B)(3)(a), (b), or (c), of this appendix, as applicable) is less than $250,000 for purposes of paragraph (A)(4)(a) or $1 million for purposes of paragraph (A)(4)(b) for the last full (12 months) taxable year ending before the date the request is filed. In this case, the partners or the shareholders must provide the certification required under paragraph (B)(1) of this appendix.

(4) Gross income for a request involving an exempt organization or governmental entity. For purposes of the reduced user fees provided in paragraphs (A)(4)(a) and (b) of this appendix of—

(a) Organizations exempt from income tax under “Subchapter F-Exempt Organizations” of the Code, “gross income” is equal to the amount of gross receipts for the last full (12 months) taxable year ending before the date the request for a letter ruling or closing agreement is filed.

(b) State, local, and Indian tribal government entities, “gross income” is equal to the annual operating revenue of the government requesting the ruling for its last fiscal year ending before the date of the ruling request. The annual operating revenue is to be determined at the government level and not at the level of the government entity or agency making the request.

(5) Special rules for determining gross income. For purposes of paragraphs (B)(2), (3) and (4) of this appendix, the following rules apply for determining gross income.

(a) Gross income of individuals, trusts, and estates. (1) In the case of a request from a married individual, the gross incomes (as defined in paragraph (B)(2) or (3) of this appendix, as applicable) of the applicant and the applicant’s spouse must be combined. This rule does not apply to an individual: (1) who is legally separated from his or her spouse and (2) who did not file a joint income tax return; and

(2) If there are two or more applicants filing the request, the gross incomes (as defined in paragraph (B)(2) or (3) of this appendix, as applicable) of the applicants must be combined.

(b) Gross income of domestic partnerships and corporations. (1) In the case of a request from a domestic corporation, the gross income (as defined in paragraph (B)(3) of this appendix) of (i) all members of the applicant’s controlled group (as defined in § 1563(a)), and (ii) any taxpayer who is involved in the transaction on which the letter ruling or closing agreement is requested, must be combined; and

(2) In the case of a request from a domestic partnership, the gross income (as defined in paragraph (B)(3) of this appendix) of (i) the partnership, and (ii) any partner who owns, directly or indirectly, 50 percent or more of the capital interest or profits interest in the partnership, must be combined.

(c) Gross income of exempt organizations. If there are two or more organizations exempt from income tax under Subchapter F filing the request, the gross receipts (as defined in paragraph (B)(4)(a) of this appendix) of the applicants must be combined.

January 4, 2016 82 Bulletin No. 2016–1

APPENDIX B

SAMPLE FORMAT FOR A LETTER RULING REQUEST

INSTRUCTIONS

To assist you in preparing a letter ruling request, the Service is providing this sample format. You are not required to use this sample format. If your request is not identical or similar to the sample format, the different format will not defer consideration of your request.

( Insert the date of request )

Internal Revenue Service Insert either : Associate Chief Counsel (Insert one of the following: Corporate, Financial Institutions and Products, Income Tax and Accounting, International, Passthroughs and Special Industries, Procedure and Administration, or Tax Exempt and Government Entities) Attn: CC:PA:LPD:DRU P.O. Box 7604 Ben Franklin Station Washington, DC 20044

Dear Sir or Madam: ( Insert the name of the taxpayer ) requests a ruling on the proper treatment of ( insert the subject matter of the letter ruling request ) under section ( insert the number ) of the Internal Revenue Code.

[If the taxpayer is requesting expedited handling, a statement to that effect must be attached to, or contained in, the letter ruling request. The statement must explain the need for expedited handling. See section 7.02(4) of Rev. Proc. 2016–1, this revenue procedure. Hereafter, all references are to Rev. Proc. 2016–1 unless otherwise noted.]

A. STATEMENT OF FACTS

Taxpayer Information

[Provide the statements required by sections 7.01(1)(a) and (b).] 2. Description of Taxpayer’s Business Operations

[Provide the statement required by section 7.01(1)(c).] 3. Facts Relating to Transaction

[The ruling request must contain a complete statement of the facts relating to the transaction that is the subject of the letter ruling request. This statement must include a detailed description of the transaction, including material facts in any accompanying documents, and the business reasons for the transaction. See sections 7.01(1)(d), 7.01(1)(e), and 7.01(2).]

B. RULING REQUESTED

[The ruling request should contain a concise statement of the ruling requested by the taxpayer. The Service prefers that the language of the requested ruling be exactly the same as the language the taxpayer wishes to receive.]

C. STATEMENT OF LAW

[The ruling request must contain a statement of the law in support of the taxpayer’s views or conclusion and identify any pending legislation that may affect the proposed transaction. The taxpayer also is strongly encouraged to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(6), 7.01(8), 7.01(9), and 7.01(10).]

D. ANALYSIS

[The ruling request must contain a discussion of the facts and an analysis of the law. The taxpayer also is strongly encouraged to identify and discuss any authorities believed to be contrary to the position advanced in the ruling request. See sections 7.01(3), 7.01(6), 7.01(8), 7.01(9), and 7.01(10).]

E. CONCLUSION

[The ruling request should contain a statement of the taxpayer’s conclusion on the ruling requested.]

Bulletin No. 2016–1 83 January 4, 2016

F. PROCEDURAL MATTERS

Revenue Procedure 2016–1 Statements a. [Provide the statement required by section 7.01(4) regarding whether any return of the taxpayer, a related taxpayer within

the meaning of § 267 or of a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504 which would be affected by the requested letter ruling or determination letter, is currently under examination, before Appeals, or before a Federal court, or was previously under examination, before Appeals, or before a Federal court.] b. [Provide the statement required by section 7.01(5)(a) regarding whether the Service previously ruled on the same or similar

issue for the taxpayer, a related taxpayer, or a predecessor. Please further note that if a reduced user fee is being submitted, a certification of eligibility for the reduced fee must be included with the ruling request.] c. [Provide the statement required by section 7.01(5)(b) regarding whether the taxpayer, a related taxpayer, a predecessor, or

any representatives previously submitted a request (including an application for change in method of accounting) involving the same or similar issue but withdrew the request before a letter ruling or determination letter was issued.] d. [Provide the statement required by section 7.01(5)(c) regarding whether the taxpayer, a related taxpayer, or a predecessor

previously submitted a request (including an application for change in method of accounting) involving the same or a similar issue that is currently pending with the Service.] e. [Provide the statement required by section 7.01(5)(d) regarding whether, at the same time as this request, the taxpayer or

a related taxpayer is presently submitting another request (including an application for change in method of accounting) involving the same or similar issue to the Service.] f. [Provide the statement required by section 7.01(5)(e) regarding whether the taxpayer or a related taxpayer had, or has

scheduled, a pre-submission conference involving the same or a similar issue.] g. [If the letter ruling request involves the interpretation of a substantive provision of an income or estate tax treaty, provide the

statement required by section 7.01(6) regarding whether the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether the same or similar issue is being examined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing agreement in that jurisdiction; and whether the same or similar issue is being considered by the competent authority of the treaty jurisdiction.] h. [Provide the statement required by section 7.01(8) regarding whether the law in connection with the letter ruling request

is uncertain and whether the issue is adequately addressed by relevant authorities.] i. [If the taxpayer determines that there are no contrary authorities, a statement in the request to this effect should be included.

See section 7.01(9).] j. [If the taxpayer wants to have a conference on the issues involved in the letter ruling request, the ruling request should

contain a statement to that effect. See section 7.02(6).] k. [If the taxpayer is requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax)

transmission, the ruling request should contain a statement to that effect. See section 7.02(5).] l. [If the taxpayer is requesting separate letter rulings on multiple issues, the letter ruling request should contain a statement

to that effect. See section 7.02(1).] m. [If the taxpayer is seeking to obtain the user fee provided in paragraph (A)(5)(a) of Appendix A for substantially identical

letter rulings, the letter ruling request must contain the statements required by section 15.07.] 2. Administrative a. [The ruling request should state: “The deletion statement and checklist required by Rev. Proc. 2016–1 are enclosed.” See

sections 7.01(11) and 7.01(18).] b. [The ruling request should state: “The required user fee of $ ( Insert the amount of the fee ) is enclosed.” Please note that the check or

money order must be in U.S. dollars and made payable to the Internal Revenue Service. See section 15 and Appendix A.] c. [If the taxpayer’s authorized representative is to sign the letter ruling request or is to appear before the Service in connection with

the request, the ruling request should state: “A Power of Attorney is enclosed.” See sections 7.01(13), 7.01(14), and 7.02(2).]

Sincerely yours,

( Insert the name of the taxpayer or the taxpayer’s authorized repre- sentative )

By:

Signature Date

Typed or printed name of person signing request DECLARATION : [ See section 7.01(15).]

January 4, 2016 84 Bulletin No. 2016–1

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

( Insert the name of the taxpayer )

By:

Signature Title Date

( must be signed by taxpayer, not by taxpayer’s representative, see section 7.01(15)(b) of this revenue procedure )

Typed or printed name of person signing declaration

[If the taxpayer is a corporation that is a member of an affiliated group filing consolidated returns, the above declaration must also be signed and dated by an officer of the common parent of the group. See section 7.01(15).]

Bulletin No. 2016–1 85 January 4, 2016

APPENDIX C

CHECKLIST

IS YOUR LETTER RULING REQUEST COMPLETE?

INSTRUCTIONS

The Service will be able to respond more quickly to your letter ruling request if it is carefully prepared and complete. Use this checklist to ensure that your request is in order. Complete the four items of information requested before the checklist. Answer each question by circling “Yes,” “No,” or “N/A.” When a question contains a place for a page number, insert the page number (or numbers) of the request that gives the information called for by a “Yes” answer to a question. Sign and date the checklist (as taxpayer or authorized representative) and place it on top of your request.

If you are an authorized representative submitting a request for a taxpayer, you must include a completed checklist with the request or the request will either be returned to you or substantive consideration of it will be deferred until a completed checklist is submitted. If you are a taxpayer preparing your own request without professional assistance, an incomplete checklist will not cause the return of your request or defer substantive consideration of your request. You should still complete as much of the checklist as possible and submit it with your request.

TAXPAYER’S NAME

TAXPAYER’S I.D. NO.

ATTORNEY/P.O.A.

PRIMARY CODE SECTION

CIRCLE ONE ITEM

Yes No 1. Does your request involve an issue under the jurisdiction of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Procedure and Administration), or the Associate Chief Counsel (Tax Exempt and Government Entities)? See section 3 of Rev. Proc. 2016–1, this revenue procedure. For issues under the jurisdiction of other offices, see section 4 of Rev. Proc. 2016–1. (Hereafter, all references are to Rev. Proc. 2016–1 unless otherwise noted.)

Yes No 2. Have you read Rev. Proc. 2016–1, Rev. Proc. 2016–3, and Rev. Proc. 2016–7, this bulletin, to see if part or all of the request involves a matter on which letter rulings are not issued or are ordinarily not issued?

Yes No N/A 3. If your request involves a matter on which letter rulings are not ordinarily issued, have you given compelling reasons to justify the issuance of a letter ruling? Before preparing your request, you may want to call the branch in the Office of Associate Chief Counsel (Corporate), the Office of Associate Chief Counsel (Financial Institutions and Products), the Office of Associate Chief Counsel (Income Tax and Accounting), the Office of Associate Chief Counsel (International), the Office of Associate Chief Counsel (Passthroughs and Special Industries), the Office of Associate Chief Counsel (Procedure and Administration), or the Office of Associate Chief Counsel (Tax Exempt and Government Entities) responsible for substantive interpretations of the principal Internal Revenue Code section on which you are seeking a letter ruling to discuss the likelihood of an exception. For matters under the jurisdiction of—

(a) the Office of Associate Chief Counsel (Corporate), the Office of Associate Chief Counsel (Financial Institutions and Products), the Office of Associate Chief Counsel (Income Tax and Accounting), the Office of Associate Chief Counsel (Passthroughs and Special Industries), or the Office of Associate Chief Counsel (Tax Exempt and Government Entities), the Office of the Associate Chief Counsel (Procedure and Administration), the appropriate branch to call may be obtained by calling (202) 317-5221 (not a toll-free call);

(b) the Office of the Associate Chief Counsel (International), the appropriate branch to call may be obtained by calling (202) 317-3800 (not a toll-free call).

Yes No N/A Page__

If the request involves a retirement plan qualification matter under § 401(a), § 409, or § 4975(e)(7), have you demonstrated that the request satisfies the three criteria in section 4.02 of Rev. Proc. 2016–3, this Bulletin, for a ruling?

January 4, 2016 86 Bulletin No. 2016–1

Yes No N/A Page__

If the request deals with a completed transaction, have you filed the return for the year in which the transaction was completed? See section 5.01.

Yes No 6. Are you requesting the letter ruling on a hypothetical situation or question? See section 6.12.

Yes No 7. Are you requesting the letter ruling on alternative plans of a proposed transaction? See section 6.12.

Yes No 8. Are you requesting the letter ruling for only part of an integrated transaction?

Yes No Page__

Are you requesting a letter ruling under the jurisdiction of Associate Chief Counsel (Corporate) on a significant issue (within the meaning of section 3.01(50) of Rev. Proc. 2016–3, this Bulletin) with respect to a transaction described in § 332, § 351, § 355, or § 1036 or a reorganization within the meaning of § 368? See section 6.03.

Yes No 10. Are you requesting the letter ruling for a business, trade, industrial association, or similar group concerning the application of tax law to its members? See section 6.05.

Yes No 11. Are you requesting the letter ruling for a foreign government or its political subdivision? See section 6.07.

Yes No Page__

Have you included a complete statement of all the facts relevant to the transaction? See section 7.01(1).

Yes No N/A 13. Have you submitted with the request true copies of all wills, deeds, and other documents relevant to the transaction, and labeled and attached them in alphabetical sequence? See section 7.01(2).

Yes No N/A 14. Have you submitted with the request a copy of all applicable foreign laws, and certified English translations of documents that are in a language other than English or of foreign laws in cases where English is not the official language of the foreign country involved? See section 7.01(2).

Yes No 15. Have you included an analysis of facts and their bearing on the issues? Have you included, rather than merely incorporated by reference, all material facts from the documents in the request? See section 7.01(3).

Yes No Page__

Yes No N/A Page__

Have you included the required statement regarding whether any return of the taxpayer (or any return of a related taxpayer within the meaning of § 267 or of a member of an affiliated group of which the taxpayer is also a member within the meaning of § 1504) who would be affected by the requested letter ruling or determination letter is currently or was previously under examination, before Appeals, or before a Federal court? See section 7.01(4).
Have you included the required statement regarding whether the Service previously ruled on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor? See section 7.01(5)(a).
Have you included the required statement regarding whether the taxpayer, a related taxpayer, a predecessor, or any representatives previously submitted a request (including an application for change in method of accounting) involving the same or similar issue but withdrew the request before the letter ruling or determination letter was issued? See section 7.01(5)(b).
Have you included the required statement regarding whether the taxpayer, a related taxpayer, or a predecessor previously submitted a request (including an application for change in method of accounting) involving the same or similar issue that is currently pending with the Service? See section 7.01(5)(c).
Have you included the required statement regarding whether, at the same time as this request, the taxpayer or a related taxpayer is presently submitting another request (including an application for change in method of accounting) involving the same or similar issue to the Service? See section 7.01(5)(d).
Have you included the required statement regarding whether the taxpayer or a related taxpayer had, or has scheduled, a pre-submission conference involving the same or a similar issue? See section 7.01(5)(e).
If your request involves the interpretation of a substantive provision of an income or estate tax treaty, have you included the required statement regarding whether the tax authority of the treaty jurisdiction has issued a ruling on the same or similar issue for the taxpayer, a related taxpayer, or a predecessor; whether the same or similar issue is being examined, or has been settled, by the tax authority of the treaty jurisdiction or is otherwise the subject of a closing agreement in that jurisdiction; and whether the same or similar issue is being considered by the competent authority of the treaty jurisdiction? See section 7.01(6).

Bulletin No. 2016–1 87 January 4, 2016

Yes No N/A Page__

Yes No Page__

Yes No N/A Page__

If your request is for recognition of Indian tribal government status or status as a political subdivision of an Indian tribal government, does your request contain a letter from the Bureau of Indian Affairs regarding the tribe’s status? See section 7.01(7), which states that taxpayers are encouraged to submit this letter with the request and provides the address for the Bureau of Indian Affairs.
Have you included the required statement of relevant authorities in support of your views? See section 7.01(8).
Have you included the required statement regarding whether the law in connection with the request is uncertain and whether the issue is adequately addressed by relevant authorities? See section 7.01(8).
Does your request discuss the implications of any legislation, tax treaties, court decisions, regulations, notices, revenue rulings, or revenue procedures that you determined to be contrary to the position advanced? See section 7.01(9), which states that taxpayers are encouraged to inform the Service of such authorities.
If you determined that there are no contrary authorities, have you included a statement to this effect in your request? See section 7.01(9).
Have you included in your request a statement identifying any pending legislation that may affect the proposed transaction? See section 7.01(10).

Yes No 29. Have you included the deletion statement required by § 6110 and placed it on the top of the letter ruling request as required by section 7.01(11)(b)?

Yes No Page__

Have you (or your authorized representative) signed and dated the request? See section 7.01(12).

Yes No N/A 31. If the request is signed by your representative or if your representative will appear before the Service in connection with the request, is the request accompanied by a properly prepared and signed power of attorney with the signatory’s name typed or printed? See section 7.01(14).

Yes No Page__

Have you signed, dated, and included the penalties of perjury statement in the format required by section 7.01(15)?

Yes No N/A 33. Are you submitting your request in duplicate if necessary? See section 7.01(16).

Yes No Page__

If you are requesting separate letter rulings on different issues involving one factual situation, have you included a statement to that effect in each request? See section 7.02(1).

Yes No N/A 35. If you want copies of the letter ruling sent to a representative, does the power of attorney contain a statement to that effect? See section 7.02(2).

Yes No N/A 36. If you do not want a copy of the letter ruling to be sent to any representative, does the power of attorney contain a statement to that effect? See section 7.02(2).

Yes No N/A 37. If you are making a two-part letter ruling request, have you included a summary statement of the facts you believe to be controlling? See section 7.02(3).

Yes No Page__

If you want your letter ruling request to be processed ahead of the regular order or by a specific date, have you requested expedited handling in the manner required by section 7.02(4) and stated a compelling need for such action in the request? See section 7.02(4) of this revenue procedure.
If you are requesting a copy of any document related to the letter ruling request to be sent by facsimile (fax) transmission, have you included a statement to that effect? See section 7.02(5).
If you want to have a conference on the issues involved in the request, have you included a request for conference in the letter ruling request? See section 7.02(6).

Yes No 41. Have you included the correct user fee with the request and is your check or money order in U.S. dollars and payable to the Internal Revenue Service? See section 15 and Appendix A to determine the correct amount.

Yes No Page__

If your request involves a personal, exempt organization, governmental entity, or business-related tax issue and you qualify for the reduced user fee because your gross income is less than $250,000, have you included the required certification? See paragraphs (A)(4)(a) and (B)(1) of Appendix A.

January 4, 2016 88 Bulletin No. 2016–1

Yes No Page__

If your request involves a personal, exempt organization, governmental entity, or business-related tax issue and you qualify for the reduced user fee because your gross income is less than $1 million, have you included the required certification? See paragraphs (A)(4)(b) and (B)(1) of Appendix A.
If you qualify for the user fee for substantially identical letter rulings, have you included the required information? See section 15.07(2) and paragraph (A)(5)(a) of Appendix A.
If you qualify for the user fee for a § 301.9100 request to extend the time for filing an identical change in method of accounting on a single Form 3115, Application for Change in Accounting Method, have you included the required information? See section 15.07(4) and paragraph (A)(5)(d) of Appendix A.

Yes No N/A 46. If your request is covered by any of the checklists, guideline revenue procedures, notices, safe harbor revenue procedures, or other special requirements listed in Appendix G, have you complied with all of the requirements of the applicable revenue procedure or notice?

Rev. Proc.

Yes No N/A Page __

List other applicable revenue procedures or notices, including checklists, used or relied upon in the preparation of this letter ruling request (Cumulative Bulletin or Internal Revenue Bulletin citation not required).

If you are requesting relief under § 7805(b) (regarding retroactive effect), have you complied with all of the requirements in section 11.11?
If you are requesting relief under § 301.9100 for a late entity classification election, have you included a statement that complies with section 4.04 of Rev. Proc. 2009–41, 2009–39 I.R.B. 439? See section 5.03(5) of this revenue procedure.
If you are requesting relief under § 301.9100, and your request involves a year that is currently under examination or with appeals, have you included the required notification, which also provides the name and telephone number of the examining agent or appeals officer? See section 7.01(4) of this revenue procedure.

Yes No 50. If you are requesting relief under § 301.9100, have you included the affidavit(s) and declaration(s) required by § 301.9100–3(e)? See § 5.03(1) of this revenue procedure.

Yes No 51. If you are requesting relief under § 301.9100–3, and the period of limitations on assessment under § 6501(a) will expire for any year affected by the requested relief before the anticipated receipt of a letter ruling, have you secured consent under § 6501(c)(4) to extend the period of limitations on assessment for the year(s) at issue? See § 5.03(2) of this revenue procedure.

Yes No 52. Have you addressed your request to the attention of the Associate Chief Counsel (Corporate), the Associate Chief Counsel (Financial Institutions and Products), the Associate Chief Counsel (Income Tax and Accounting), the Associate Chief Counsel (International), the Associate Chief Counsel (Passthroughs and Special Industries), the Associate Chief Counsel (Procedure and Administration), or the Associate Chief Counsel (Tax Exempt and Government Entities), as appropriate? The mailing address is:

Internal Revenue Service Attn: CC:PA:LPD:DRU P.O. Box 7604 Ben Franklin Station Washington, DC 20044

If a private delivery service is used, the address is:

Internal Revenue Service Attn: CC:PA:LPD:DRU, Room 5336 1111 Constitution Ave., NW Washington, DC 20224

The package should be marked: RULING REQUEST SUBMISSION. Improperly addressed requests may be delayed (sometimes for over a week) in reaching CC:PA:LPD:DRU for initial processing.

Signature Title or Authority Date

Typed or printed name of person signing checklist

Bulletin No. 2016–1 89 January 4, 2016

APPENDIX D

ADDITIONAL CHECKLIST FOR GOVERNMENT PICK-UP PLAN RULING REQUESTS

In order to assist Associate Chief Counsel (Tax Exempt and Government Entities) in processing a ruling request involving government pick-up plans, in addition to the items in Appendix C please check the following list.

Yes No N/A Page ___

Is the plan qualified under § 401(a) of the Code? (Evidence of qualification or representation that the plan is qualified.)
Is the organization that established the plan a State or political subdivision thereof, or any agency or instrumentality of the foregoing? An example of this would be a representation that the organization that has established the plan is a political subdivision or municipality of the State.
Is there specific information regarding who are the eligible participants?
Are the contributions that are the subject of the ruling request mandatory employee contributions? These contributions must be for a specified dollar amount or a specific percentage of the participant’s compensation and the dollar amount or percentage of compensation cannot be subject to change.
Does the plan provide that the participants do not have the election to opt in and/or out of the plan?
Are copies of the enacting legislation providing that the contributions although designated as employee contributions are being paid by the employer in lieu of contributions by the employee included?
Are copies of the specific enabling authorization that provides the employee must not have the option of choosing to receive the contributed amounts directly instead of having them paid by the employer to the plan included? For example, a resolution, ordinance, plan provision, or collective bargaining agreement could specify this information.

January 4, 2016 90 Bulletin No. 2016–1

APPENDIX E

ADDITIONAL CHECKLIST FOR CHURCH PLAN RULING REQUESTS

In order to assist Associate Chief Counsel (Tax Exempt and Government Entities) in processing a church plan ruling request, in addition to the items in Appendix C, please check the following list.

Yes No N/A Page ___

Is there specific information showing that the submission is on behalf of a plan established by a named church or convention or association of churches? The information must show how the sponsoring organization, if not a church or convention or association of churches, is controlled by, or associated with, the named church or convention or association of churches. For example, the board of directors of the sponsoring organization may be made up of members of the named church, or the sponsoring organization might be listed in the church’s official directory of related organizations whose mission is to further the objectives of the church. In order to be considered associated with a church or convention or association of churches, the organization must share common religious bonds and convictions with that church or convention or association of churches.
Is there specific information showing that the organization that has established the plan is a tax-exempt organization as described in § 501 of the Code?
Is there a representation that the plan for which the ruling is being requested is qualified under § 401(a) of the Code or meets the requirements of § 403(b) of the Code?
Does the ruling request clearly state who are the eligible participants and the name of the employer of these eligible participants?
Is there a representation that none of the eligible participants are or can be considered employed in connection with one or more unrelated trades or businesses within the meaning of § 513 of the Code?
Is there a representation that all of the eligible participants are or will be employed by the named church or convention or association of churches, and will not include employees of for-profit entities? An example of an eligible employee includes a duly ordained, commissioned, or licensed minister of a church in the exercise of his or her ministry.
Is there specific information showing an existing plan committee whose principal purpose or function is the administration or funding of the plan? This committee must be controlled by or associated with the named church or convention or association of churches.
Is the composition of the committee stated?
Did the plan sponsor provide a written notice to interested persons that a letter ruling under § 414(e) of the Code on behalf of a church plan will be submitted to the IRS? (See Rev. Proc. 2011–44).
Does the ruling request include a copy of the notice?

Bulletin No. 2016–1 91 January 4, 2016

APPENDIX F

LIST OF SMALL BUSINESS/SELF-EMPLOYED OPERATING DIVISION (SB/SE) OFFICES TO WHICH TO SEND REQUESTS FOR DETERMINATION LETTERS

SB/SE and W&I taxpayers should send requests for determination letters under this Rev. Proc. 2016–1 to the appropriate SB/SE office listed below. Both the request and its envelope should be marked “DETERMINATION LETTER REQUEST.”

INCOME TAX Requests for determination letters regarding income tax (including requests from international taxpayers) should be sent to:

Office of the Director, Technical Services Internal Revenue Service Attn: SE:S:E:TS Mail Stop 5000 24000 Avila Road Laguna Niguel, CA 92677

ESTATE AND GIFT TAXES Requests for determination letters regarding estate and gift tax should be sent to:

Program Manager, Estate & Gift Tax Policy Internal Revenue Service SE:S:E:HQ:SEP:E&GP 6340 Variel Woodland Hills, CA 91367

EMPLOYMENT TAXES Requests for determination letters regarding employment tax (except for requests for determination of worker status made on Form SS–8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, which should be sent to the address in the Form instructions) should be sent to:

Program Manager, Employment Tax Policy Internal Revenue Service Attn: SE:S:E:HQ:SEP c/o Director, Specialty Examination Policy 5000 Ellin Road, C9-400 Lanham, MD 20706

EXCISE TAXES Requests for determination letters regarding excise taxes should be sent to:

Program Manager, Excise Tax Policy Internal Revenue Service Attn: SE:S:E:HQ:SEP c/o Director, Specialty Examination Policy 5000 Ellin Road, C9-400 Lanham, MD 20706

January 4, 2016 92 Bulletin No. 2016–1

APPENDIX G

CHECKLISTS, GUIDELINE REVENUE PROCEDURES, NOTICES, SAFE HARBOR REVENUE

PROCEDURES, AND AUTOMATIC CHANGE REVENUE PROCEDURES

Specific revenue procedures and notices supplement the general instructions for requests explained in section 7 of this revenue procedure and apply to requests for letter rulings or determination letters regarding the Code sections and matters listed in this section.

Checklists, guideline revenue procedures, and notices

CODE OR REGULATION SECTION

103, 141–150, 1394, 1400L(d), 1400N(a), 1400U– 1, 1400U–3, 7478, and 7871 Issuance of state or local obligations

1.166–2(d)(3) Uniform express determination letter for making election

Subchapter C-Corporate Distributions, Adjustments, Transfers, and Reorganizations

301 Nonapplicability on sales of stock of employer to defined contribution plan

302, 311 Checklist questionnaire

302(b)(4) Checklist questionnaire

311 Checklist questionnaire

332 Checklist questionnaire

.01 For requests relating to the following Code sections and subject matters, refer to the following checklists, guideline revenue procedures, and notices.

REVENUE PROCEDURE AND NOTICE

Rev. Proc. 96–16, 1996–1 C.B. 630 (for a reviewable ruling under § 7478 and a nonreviewable ruling); Rev. Proc. 88–31, 1988–1 C.B. 832 (for approval of areas of chronic economic distress); and Rev. Proc. 82–26, 1982–1 C.B. 476 (for “on behalf of” and similar issuers). For approval of areas of chronic economic distress, Rev. Proc. 88–31 explains how this request for approval must be submitted to the Assistant Secretary for Housing/Federal Housing Commissioner of the Department of Housing and Urban Development.

Rev. Proc. 92–84, 1992–2 C.B. 489.

Rev. Proc. 77–37, 1977–2 C.B. 568, as modified by Rev. Proc. 89–30, 1989–1 C.B. 895, and as amplified by Rev. Proc. 77–41, 1977–2 C.B. 574, Rev. Proc. 83–81, 1983–2 C.B. 598 ( see also Rev. Proc. 2016–3, this bulletin), Rev. Proc. 84–42, 1984–1 C.B. 521 (superseded, in part, as to no-rule areas by Rev. Proc. 2016–3, this bulletin), Rev. Proc. 86–42, 1986–2 C.B. 722, and Rev. Proc. 89–50, 1989–2 C.B. 631. But see section 3.01 of Rev. Proc. 2016–3, which states that the Service will not issue a letter ruling as to whether a transaction constitutes a reorganization within the meaning of § 368. However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2016–3) presented in a reorganization within the meaning of § 368. The information and representations described in these revenue procedures should be included in a letter ruling request only to the extent that they relate to the significant issues with respect to which the letter ruling is requested. See section 6.03(4).

Rev. Proc. 87–22, 1987–1 C.B. 718.

Rev. Proc. 86–18, 1986–1 C.B. 551; and Rev. Proc. 77–41, 1977–2 C.B. 574.

Rev. Proc. 81–42, 1981–2 C.B. 611.

Rev. Proc. 86–16, 1986–1 C.B. 546.

See section 3.01 of Rev. Proc. 2016–3, this Bulletin, which states that the Service will not issue a letter ruling on whether a corporate distribution qualifies for nonrecognition treatment under § 332. However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2016–3) presented in a transaction described in § 332. The information and representations described in Rev. Proc. 90–52, 1990–2 C.B. 626, should be included in a letter ruling request only to the extent that they relate to the significant issues with respect to which the letter ruling is requested. See section 6.03(4).

Bulletin No. 2016–1 93 January 4, 2016

338 Extension of time to make elections

351 Checklist questionnaire

355 Checklist questionnaire

368(a)(1)(E) Checklist questionnaire

412, 4971(b) Additional tax (on failure to meet minimum funding standards)

412(d) Minimum funding standards

412(c)(7)(B) Minimum funding standards– restrictions on plan amendments

412(d)(2) Minimum funding standards– certain retroactive plan amendments

414(e) Church plans

414(r) Qualified separate lines of business–administrative scrutiny

Rev. Proc. 2003–33, 2003–1 C.B. 803, provides guidance as to how an automatic extension of time under § 301.9100–3 of the Treasury Regulations may be obtained to file elections under § 338. This revenue procedure also informs taxpayers who do not qualify for the automatic extension of the information necessary to obtain a letter ruling.

See section 3.01 of Rev. Proc. 2016–3, this Bulletin, which states that the Service will not issue a letter ruling on whether certain transfers to controlled corporations qualify for nonrecognition treatment under § 351. However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2016–3) presented in a transaction described in § 351. The information and representations described in Rev. Proc. 83–59, 1983–2 C.B. 575, should be included in a letter ruling request only to the extent that they relate to the significant issues with respect to which the letter ruling is requested. See section 6.03(4).

See section 3.01 of Rev. Proc. 2016–3, this Bulletin, which states that the Service will not issue a letter ruling on whether certain distributions of controlled corporation stock qualify for nonrecognition treatment under § 355. However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2016–3) presented in a transaction described in § 355. The information and representations described in Rev. Proc. 96–30, 1996–1 C.B. 696, should be included in a letter ruling request only to the extent that they relate to the significant issues with respect to which the letter ruling is requested. See section 6.03(4).

See section 3.01 of Rev. Proc. 2016–3, this Bulletin, which states that the Service will not issue a letter ruling as to whether a transaction constitutes a reorganization, including a recapitalization within the meaning of § 368(a)(1)(E) (or a transaction that qualifies under § 1036). However, the Service will issue a letter ruling addressing significant issues (within the meaning of section 3.01 of Rev. Proc. 2016–3) presented in a transaction described in § 368(a)(1)(E) (or in a transaction described in § 1036). The information and representations described in Rev. Proc. 81–60, 1981–2 C.B. 680, should be included in a letter ruling request only to the extent that they relate to the significant issues. See section 6.03(4).

Rev. Proc. 81–44, 1981–2 C.B. 618, provides guidance for requesting a waiver of the 100 percent tax imposed under § 4971(b) on a pension plan that fails to meet the minimum funding standards of § 412.

Rev. Proc. 2004–15, 2004–1 C.B. 490, provides guidance for requesting a waiver of the minimum funding standards.

Rev. Proc. 79–62, 1979–2 C.B. 576 provides guidance for requesting a determination that a plan amendment is reasonable and provides for only de minimis increases in plan liabilities in accordance with former § 412(f)(2)(A) (now § 412(c)(7)(B)(i)).

Rev. Proc. 94–42, 1994–1 C.B. 717, sets forth procedures under which a plan sponsor may file notice with and obtain approval for a retroactive amendment described in § 412(d)(2) (formerly § 412(c)(8)) and § 302(d)(2) of the Employee Retirement Income Security Act of 1974 (ERISA) that reduces prior accrued benefits.

Rev. Proc. 2011–44, 2011–39 I.R.B. 445 provides supplemental procedures for requesting a ruling relating to church plans under section 414(e). This revenue procedure provides that plan participants and other interested persons must receive a notice when a letter ruling is requested and a copy of the notice must be submitted as part of the ruling request. It also provides procedures for the Service to receive and consider comments about the ruling request from interested persons. See Appendix E.

Rev. Proc. 93–41, 1993–2 C.B. 536, sets forth procedures relating to the issuance of an administrative scrutiny determination, which is a determination by the Service as to whether a separate line of business satisfies the requirement of administrative scrutiny, within the meaning of § 1.414(r)–6, for the testing year.

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461(h) Alternative method for the inclusion of common improvement costs in basis

482 Advance pricing agreements

521 Appeal procedure with regard to adverse determination letters and revocation or modification of exemption letter rulings and determination letters

817(h) Closing agreement for inadvertent failures of variable contracts

860 Self Determination of Deficiency Dividend

877, 2107, and 2501(a)(3) Individuals who lose U.S. citizenship or cease to be taxed as long-term U.S. residents with a principal purpose to avoid U.S. taxes

1362(b)(5) and 1362(f) Relief for late S corporation and related elections under certain circumstances

1362(b)(5) and 301.7701–3 Automatic extensions of time for late S corporation election and late corporate entity classification

1.1502–13(e)(3) Consent to treat intercompany transactions on a separate entity basis and revocation of this consent

1.1502–75(b) Consent to Be Included in a Consolidated Income Tax Return

1.1502–76(a)(1) Consent to file a consolidated return where member(s) of the affiliated group use a 52–53 week taxable year

Rev. Proc. 92–29, 1992–1 C.B. 748.

Rev. Proc. 2015–40, 2015–35 I.R.B. 236, and Rev. Proc. 2015–41, 2015–35 I.R.B. 263.

Rev. Proc. 2016–5, this Bulletin.

Rev. Proc. 2008–41, 2008–2 C.B. 155.

Rev. Proc. 2009–28, 2009–20 I.R.B. 1011.

Notice 97–19, 1997–1 C.B. 394, as modified by Notice 98–34, 1998–2 C.B. 29, and as obsoleted in part by Notice 2005–36, 2005–1 C.B. 1007.

Rev. Proc. 2013–30, 2013–36 I.R.B. 173.

Rev. Proc. 2009–31, 2009–27 I.R.B. 107.

Rev. Proc. 2014–24, 2014–13 I.R.B. 879, provides a determination that certain subsidiary corporations are treated as if they had filed a Form 1122, Authorization and Consent of Subsidiary Corporation To Be Included in a Consolidated Income Tax Return, even though they failed to do so. This revenue procedure also informs taxpayers who do not qualify for the automatic determination of the procedure for requesting such determination.

Rev. Proc. 89–56, 1989–2 C.B. 643, as modified by Rev. Proc. 2006–21, 2006–1 C.B. 1050.

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1504(a)(3)(A) and (B) Waiver of application of § 1504(a)(3)(A) for certain corporations

1552 Consent to elect or change method of allocating affiliated group’s consolidated Federal income tax liability

2642 Allocations of generationskipping transfer tax exemption

2652(a)(3) Reverse qualified terminable interest property elections

4980B Failure to satisfy continuation coverage requirements of group health plans

7701 Relief for a late initial classification election for a newly formed entity

7701(a)(40) and 7871(d) Indian tribal governments and subdivision of Indian tribal governments

301.7701–2(a) Classification of undivided fractional interests in rental real estate

301.7701–3 Automatic extensions of time for late S corporation election and late corporate entity classification

301.9100–3 Extension of time to make entity classification election

7702 Closing agreement for failure to account for charges for qualified additional benefits

7702 Closing agreement for failed life insurance contracts

Rev. Proc. 2002–32, 2002–1 C.B. 959, as modified by Rev. Proc. 2006–21, 2006–1 C.B. 1050.

Rev. Proc. 90–39, 1990–2 C.B. 365, as clarified by Rev. Proc. 90–39A, 1990–2 C.B. 367, and as modified by Rev. Proc. 2006–21, 2006–1 C.B. 1050.

Rev. Proc. 2004–46, 2004–2 C.B. 142, provides an alternative method for requesting relief to make a late allocation of the generation-skipping transfer tax exemption. This revenue procedure also informs taxpayers who are denied relief or who are outside the scope of the revenue procedure of the information necessary for obtaining a letter ruling.

Rev. Proc. 2004–47, 2004–2, C.B. 169, provides an alternative method for certain taxpayers to obtain an extension of time to make a late reverse qualified terminable interest property election under § 2652(a)(3). This revenue procedure also informs taxpayers who are denied relief or who are outside the scope of the revenue procedure of the information necessary to obtain a letter ruling.

Rev. Proc. 87–28, 1987–1 C.B. 770 (treating references to former § 162(k) as if they were references to § 4980B).

Rev. Proc. 2009–41, 2009–39 I.R.B. 439.

Rev. Proc. 84–37, 1984–1 C.B. 513, as modified by Rev. Proc. 86–17, 1986–1 C.B. 550, and Rev. Proc. 2016–1, this revenue procedure, (provides guidelines for obtaining letter rulings recognizing Indian tribal government or tribal government subdivision status; also provides for inclusion in list of federally recognized Indian tribes published annually by the Department of the Interior, Bureau of Indian Affairs, or in list of recognized subdivisions of Indian tribal governments in revised versions of Rev. Proc. 84–36, 1984–1 C.B. 510, as modified and made permanent by Rev. Proc. 86–17).

Rev. Proc. 2002–22, 2002–1 C.B. 733 (specifies the conditions under which the Service will consider a letter ruling request that an undivided fractional interest in rental real property (other than a mineral property as defined in § 614) is not an interest in a business entity).

Rev. Proc. 2013–30, 2013–36 I.R.B. 173.

Rev. Proc. 2009–41, 2009–39 I.R.B. 439.

Rev. Proc. 2010–26, 2010–30 I.R.B. 91.

Rev. Proc. 2008–40, 2008–2 C.B. 151.

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7702A Closing agreement for inadvertent non-egregious failure to comply with modified endowment contract rules

7704(g) Revocation of election

Rev. Proc. 2008–39, 2008–2 C.B. 143.

Notice 98–3, 1998–1 C.B. 333.

SUBJECT MATTERS REVENUE PROCEDURE

Accounting periods; changes in period

Classification of liquidating trusts

Earnings and profits determinations

Estate, gift, and generationskipping transfer tax issues

Intercompany transactions; election not to defer gain or loss

Rev. Proc. 2002–39, 2002–1 C.B. 1046, as clarified and modified by Notice 2002–72, 2002–2 C.B. 843, as modified by Rev. Proc. 2003–34, 2003–1 C.B. 856, and modified by Rev. Proc. 2003–79, 2003–2 C.B. 1036; and Rev. Proc. 2016–1, this revenue procedure, for which sections 1, 2.01, 2.02, 2.05, 3.03, 5.02, 6.03, 6.05, 6.07, 6.11, 7.01(1), 7.01(2), 7.01(3), 7.01(4), 7.01(5), 7.01(6), 7.01(8), 7.01(9), 7.01(10), 7.01(13), 7.01(14), 7.01(15), 7.02(2), 7.02(4), 7.02(5), 7.02(6), 7.04, 7.05, 7.07, 7.08, 8.01, 8.03, 8.04, 8.05, 8.06, 10, 11, 15, 17, 18, Appendix A, and Appendix G are applicable.

Rev. Proc. 82–58, 1982–2 C.B. 847, as modified and amplified by Rev. Proc. 94–45, 1994–2 C.B. 684, and as amplified by Rev. Proc. 91–15, 1991–1 C.B. 484 (checklist questionnaire), as modified and amplified by Rev. Proc. 94–45.

Rev. Proc. 75–17, 1975–1 C.B. 677; Rev. Proc. 2016–1, this revenue procedure, sections 2.05, 3.03, 7, 8, and 10.05; and Rev. Proc. 2016–3, this Bulletin, section 3.01.

Rev. Proc. 91–14, 1991–1 C.B. 482 (checklist questionnaire).

Rev. Proc. 2009–31, 2009–27 I.R.B. 107.

Leveraged leasing Rev. Proc. 2001–28, 2001–1 C.B. 1156, and Rev. Proc. 2001–29, 2001–1 C.B. 1160.

Rate orders; regulatory agency; normalization

Unfunded deferred compensation

A letter ruling request that involves a question of whether a rate order that is proposed or issued by a regulatory agency will meet the normalization requirements of § 168(f)(2) (pre-Tax Reform Act of 1986, § 168(e)(3)) and former §§ 46(f) and 167(l) ordinarily will not be considered unless the taxpayer states in the letter ruling request whether—

(1) the regulatory authority responsible for establishing or approving the taxpayer’s rates has reviewed the request and believes that the request is adequate and complete; and

(2) the taxpayer will permit the regulatory authority to participate in any Associate office conference concerning the request.

If the taxpayer or the regulatory authority informs a consumer advocate of the request for a letter ruling and the advocate wishes to communicate with the Service regarding the request, any such communication should be sent to: Internal Revenue Service, Associate Chief Counsel (Procedure and Administration), Attn: CC:PA:LPD:DRU, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044 (or, if a private delivery service is used: Internal Revenue Service, Associate Chief Counsel (Procedure and Administration), Attn: CC:PA:LPD:DRU, Room 5336, 1111 Constitution Ave., NW, Washington, DC 20224). These communications will be treated as third party contacts for purposes of § 6110.

Rev. Proc. 71–19, 1971–1 C.B. 698, as amplified by Rev. Proc. 92–65, 1992–2 C.B. 428. See Rev. Proc. 92–64, 1992–2 C.B. 422, as modified by Notice 2000–56, 2000–2 C.B. 393, for the model trust for use in Rabbi Trust Arrangements.

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Safe harbor revenue procedures

CODE OR REGULATION SECTION

23 and 36C Adoption credit for foreign adoptions

103 and 141–150 Issuance of state or local obligations

61 Utility Cost Recovery Securitization Transactions

137 Exclusion for Employer Reimbursements

162 Restaurant Small Wares Costs

165 Losses from corrosive drywall

165 Theft losses from fraudulent investment arrangements

167 and 168 Primary use of certain cable network assets described in asset class 48.42 of Rev. Proc. 87–56, 1987–2 C.B. 674

168 Depreciation of original and replacement tires for certain vehicles

168 Depreciation of fiber optic node and trunk line of a cable system operator

168 Recovery periods of certain tangible assets used by wireless telecommunication carriers

263, 471 Treatment of rotable spare parts as inventory or depreciable property

263 Safe harbor methods for track structure expenditures

.02 For requests relating to the following Code sections and subject matters, refer to the following safe harbor revenue procedures.

REVENUE PROCEDURE

Rev. Proc. 2010–31, 2010–40 I.R.B. 413.

Rev. Proc. 97–13, 1997–1 C.B. 632, as modified by Rev. Proc. 2001–39, 2001–2 C.B. 38 and amplified by Notice 2014–67, 2014–46 I.R.B. 822 (management contracts); and Rev. Proc. 2007–47, 2007–2 C.B. 108 (research agreements).

Rev. Proc. 2005–62, 2005–2 C.B. 507.

Rev. Proc. 2010–31, 2010–40 I.R.B. 413.

Rev. Proc. 2002–12, 2002–1 C.B. 374.

Rev. Proc. 2010–36, 2010–42 I.R.B. 439.

Rev. Proc. 2009–20, 2009–14 I.R.B. 749; Rev. Proc. 2011–58, 2011–50 I.R.B. 849 (modifies Rev. Proc. 2009–20).

Section 9 of Rev. Proc. 2015–12, 2015–2 I.R.B. 266.

Rev. Proc. 2002–27, 2002–1 C.B. 802.

Section 8 of Rev. Proc. 2015–12, 2015–2 I.R.B. 266.

Rev. Proc. 2011–22, 2011–18 I.R.B. 737

Rev. Proc. 2007–48, 2007–2 C.B. 110

Rev. Proc. 2002–65, 2002–2 C.B. 700; Rev. Proc. 2001–46, 2001–2 C.B. 263.

January 4, 2016 98 Bulletin No. 2016–1

263 Determination whether expenditures to maintain, replace or improve wireline network assets must be capitalized

263 Determination whether expenditures to maintain, replace or improve wireless network assets must be capitalized

263 Allocating success-based fees paid in business acquisitions or reorganizations

263 Electric trade and distribution property assets

263A Safe harbor methods for certain motor vehicle dealerships

280A Safe harbor method to determine the amount of deductible expenses attributable to certain business use of a residence

280B Certain structural modifications to a building not treated as a demolition

446 Film producer’s treatment of certain creative property costs

446 Bank’s treatment of uncollected interest

448 Nonaccrual-experience method–book safe harbor method

451 Safe harbor for capital cost reduction payments

451 Treatment of gift cards issued to customers in exchange for returned merchandise

Rev. Proc. 2011–27, 2011–18 I.R.B. 740.

Rev. Proc. 2011–28, 2011–18 I.R.B. 743.

Rev. Proc. 2011–29, 2011–18 I.R.B. 746.

Rev. Proc. 2011–43, 2011–37 I.R.B. 326.

Rev. Proc. 2010–44, 2010–49 I.R.B. 811.

Rev. Proc. 2013–13, 2013–6 I.R.B. 478.

Rev. Proc. 95–27, 1995–1 C.B. 704.

Rev. Proc. 2004–36, 2004–1 C.B. 1063.

Rev. Proc. 2007–33, 2007–1 C.B. 1289.

Rev. Proc. 2011–46, 2011–42 I.R.B. 518.

Rev. Proc. 2002–36, 2002–1 C.B. 993

Rev. Proc. 2011–17, 2011–5 I.R.B. 441.

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451 Safe harbor for certain minors’ trusts established under the Indian Gaming Regulatory Act (U.S.C. §§ 2701–2721)

461 Safe harbor method for payroll tax liabilities for compensation

471 Estimating inventory shrinkage

471 Valuation of automobile dealer vehicle parts inventory

471 Valuation of remanufactured cores

471 Valuation of heavy equipment dealer parts inventory

471 Rolling-average method of accounting for inventories

475 Eligible positions

584(a) Qualification of a proposed common trust fund plan

642(c)(5) Qualification of trusts as pooled income funds

664 Charitable remainder trusts

664(d)(1) Qualification of trusts as charitable remainder annuity trusts

664(d)(2) and (3) Qualification of trusts as charitable remainder unitrusts

832 Insurance company premium acquisition expenses

856(c) Certain loans treated as real estate assets

860H Transfers of ownership interests in Financial Asset Securitization Investment Trusts

Rev. Proc. 2011–56, 2011–49 I.R.B. 834.

Rev. Proc. 2008–25, 2008–1 C.B. 686.

Rev. Proc. 98–29, 1998–1 C.B. 857.

Rev. Proc. 2002–17, 2002–1 C.B. 676.

Rev. Proc. 2003–20, 2003–1 C.B. 445.

Rev. Proc. 2006–14, 2006–1 C.B. 350.

Rev. Proc. 2008–43, 2008–2 C.B. 186.

Rev. Proc. 2007–41, 2007–1 C.B. 1492.

Rev. Proc. 92–51, 1992–1 C.B. 988.

Rev. Proc. 88–53, 1988–2 C.B. 712.

Rev. Proc. 2005–24, 2005–1 C.B. 909, as modified by Notice 2006–15, 2006–1 C.B. 501.

Rev. Proc. 2003–53, 2003–2 C.B. 230; Rev. Proc. 2003–54, 2003–2 C.B. 236; Rev. Proc. 2003–55, 2003–2 C.B. 242; Rev. Proc. 2003–56, 2003–2 C.B. 249; Rev. Proc. 2003–57, 2003–2 C.B. 257; Rev. Proc. 2003–58, 2003–2 C.B. 262; Rev. Proc. 2003–59, 2003–2 C.B. 268; Rev. Proc. 2003–60, 2003–2 C.B. 274.

Rev. Proc. 2005–52, 2005–2 C.B. 326; Rev. Proc. 2005–53, 2005–2 C.B. 339; Rev. Proc. 2005–54, 2005–2 C.B. 353; Rev. Proc. 2005–55, 2005–2 C.B. 367; Rev. Proc. 2005–56, 2005–2 C.B. 383; Rev. Proc. 2005–57, 2005–2 C.B. 392; Rev. Proc. 2005–58, 2005–2 C.B. 402; Rev. Proc. 2005–59, 2005–2 C.B. 412.

Rev. Proc. 2002–46, 2002–2 C.B. 105.

Rev. Proc. 2003–65, 2003–2 C.B. 336.

Rev. Proc. 2001–12, 2001–1 C.B. 335.

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1031(a) Qualification as a qualified exchange accommodation arrangement

1031 Safe harbor with respect to exchanges of residential real property

1031 Safe harbor for reporting gain or loss on failed exchanges

1272(a)(6) Proportional method of accounting for original issue discount on pools of credit card receivables

1286 Determination of reasonable compensation under mortgage servicing contracts

1362(f) Automatic inadvertent termination relief to certain corporations

2056A Qualified Domestic Trust

2702(a)(3)(A) and 25.2702–5(c) Qualified Personal Residence Trust

4051(a)(2) Imposition of tax on heavy trucks and trailers sold at retail

1.7704–2(d) New business activity of existing partnership is closely related to pre–existing business

Rev. Proc. 2000–37, 2000–2 C.B. 308, as modified by Rev. Proc. 2004–51, 2004–2 C.B. 294.

Rev. Proc. 2008–16, 2008–1 C.B. 547.

Rev. Proc. 2010–14, 2010–12 I.R.B. 456.

Rev. Proc. 2013–26, 2013–22 I.R.B. 1160.

Rev. Proc. 91–50, 1991–2 C.B. 778.

Rev. Proc. 2013–30, 2013–36 I.R.B. 173.

Rev. Proc. 96–54, 1996–2 C.B. 386.

Rev. Proc. 2003–42, 2003–1 C.B. 993.

Rev. Proc. 2005–19, 2005–1 C.B. 832.

Rev. Proc. 92–101, 1992–2 C.B. 579.

SUBJECT MATTERS REVENUE PROCEDURE

Certain rent-to-own contracts treated as leases

Automatic change in accounting period revenue procedures

Rev. Proc. 95–38, 1995–2 C.B. 397.

.03 For requests for an automatic change in accounting period, refer to the following automatic change revenue procedures.

Rev. Proc. 2006–45, 2006–2 C.B. 851, as clarified and modified by Rev. Proc. 2007–64, 2007–2 C.B. 818 (certain corporations); Rev. Proc. 2006–46, 2006–2 C.B. 859 (certain partnerships, subchapter S corporations, personal service corporations, and trusts); and Rev. Proc. 2003–62, 2003–2 C.B. 299 (individuals seeking a calendar year);

The Commissioner’s consent to an otherwise qualifying automatic change in accounting period is granted only if the taxpayer timely complies with the applicable automatic change revenue procedure.

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26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.

Rev. Proc. 2016–2

TABLE OF CONTENTS

SECTION 1. PURPOSE AND AUTHORITY - .....................................................................................................................................................104

.01 Description of purpose ........................................................................................................................................................104 .02 Updated annually.................................................................................................................................................................104 .03 Delegation authority ............................................................................................................................................................104

SECTION 2. DEFINITIONS ...................................................................................................................................................................................104

.01 Operating division ...............................................................................................................................................................104 .02 Director ................................................................................................................................................................................104 .03 Territory Manager................................................................................................................................................................105 .04 Appeals officer.....................................................................................................................................................................105 .05 Taxpayer ..............................................................................................................................................................................105 .06 Associate office....................................................................................................................................................................105 .07 Field office...........................................................................................................................................................................105 .08 Field counsel........................................................................................................................................................................105

SECTION 3. THE NATURE OF TECHNICAL ADVICE ..................................................................................................................................105

.01 When advice furnished........................................................................................................................................................105 .02 TAM may be requested even if previous TAM on same matter was issued ...................................................................106 .03 Taxpayer participation.........................................................................................................................................................106 .04 Areas of mandatory technical advice on employee plans matters.....................................................................................106 .05 Basis for requests by Exempt Organizations Rulings & Agreements...............................................................................106

SECTION 4. TYPES OF ISSUES NOT SUBJECT TO THIS PROCEDURE .................................................................................................106

.01 Alcohol, tobacco, and firearms taxes..................................................................................................................................106 .02 Employment status determinations .....................................................................................................................................106 .03 Issues under § 301.9100......................................................................................................................................................106 .04 Frivolous issues ...................................................................................................................................................................107 .05 Issues in a docketed case ....................................................................................................................................................107 .06 Collection issues..................................................................................................................................................................107

SECTION 5. INITIATING A REQUEST FOR TECHNICAL ADVICE .........................................................................................................107

.01 Initiating a request for technical advice .............................................................................................................................107 .02 Taxpayer may request technical advice..............................................................................................................................108 .03 Appeal of field office denial of TAM request....................................................................................................................108 .04 The decision of the Director, the LB&I Territory Manager, or the Tax Exempt Bonds Manager,

Field Operations may be reviewed but not appealed.........................................................................................................108

SECTION 6. PRE-SUBMISSION CONFERENCES ............................................................................................................................................109

.01 Purpose.................................................................................................................................................................................109 .02 Pre-submission conferences are mandatory........................................................................................................................109 .03 Actions before a pre-submission conference......................................................................................................................109 .04 Initiating a pre-submission conference ...............................................................................................................................109 .05 Manner of transmitting pre-submission materials..............................................................................................................110 .06 Scheduling the pre-submission conference.........................................................................................................................110 .07 Pre-submission conferences may be conducted in person.................................................................................................110 .08 Pre-submission conference may not be taped ....................................................................................................................110 .09 Discussion of substantive issues is not binding on the Service ........................................................................................110 .10 New issues may be raised at pre-submission conference..................................................................................................110

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SECTION 7. SUBMITTING THE REQUEST FOR TECHNICAL ADVICE .................................................................................................110

.01 Memorandum of issues, facts, law, and arguments ...........................................................................................................110 .02 Transaction involving multiple taxpayers...........................................................................................................................111 .03 Foreign laws and documents: submission of relevant foreign laws and documents

in the official language and in English...............................................................................................................................111 .04 Statement regarding interpretation of relevant income tax or estate tax treaty................................................................112 .05 Statement recommending information to be deleted from public inspection ...................................................................112 .06 Preparation of the memorandum; resolution of disagreements .........................................................................................112 .07 Transmittal Form 4463, Request for Technical Advice.....................................................................................................113 .08 All supporting and additional documents...........................................................................................................................113 .09 Number of copies of request to be submitted....................................................................................................................113 .10 Power of attorney ................................................................................................................................................................114

SECTION 8. INITIAL PROCESSING OF THE REQUEST FOR TECHNICAL ADVICE BY THE ASSOCIATE OFFICE ................114

.01 Assignment and initial review by Associate office attorney .............................................................................................114 .02 Other forms of guidance .....................................................................................................................................................114 .03 Initial acknowledgment and processing..............................................................................................................................114 .04 Deficiencies in request leading to return............................................................................................................................114 .05 Initial discussion..................................................................................................................................................................115 .06 If additional information requested.....................................................................................................................................115 .07 Taxpayer request for extension of time to submit additional information........................................................................115 .08 Where to send additional information ................................................................................................................................115 .09 Tentative conclusions ..........................................................................................................................................................116

SECTION 9. TAXPAYER CONFERENCES ........................................................................................................................................................116

.01 Notification of conference...................................................................................................................................................116 .02 Scheduling conference.........................................................................................................................................................116 .03 Taxpayer may request extensions .......................................................................................................................................116 .04 One conference of right ......................................................................................................................................................116 .05 Additional conferences may be offered..............................................................................................................................117 .06 Additional information submitted after the conference .....................................................................................................117 .07 Normally conducted in person............................................................................................................................................117 .08 Service makes only tentative recommendations.................................................................................................................117 .09 Conference may not be taped .............................................................................................................................................117

SECTION 10. PREPARATION OF THE TECHNICAL ADVICE ...................................................................................................................117

.01 Reply consists of two parts.................................................................................................................................................117 .02 Status of a request ...............................................................................................................................................................118 .03 Section 6110 ........................................................................................................................................................................118 .04 Opportunity for field counsel review..................................................................................................................................118 .05 Copy of preliminary TAM to field office and field counsel..............................................................................................118 .06 Routing of reply ..................................................................................................................................................................118 .07 Copy of final TAM to field counsel and Division Counsel ..............................................................................................118 .08 Reconsideration....................................................................................................................................................................119 .09 Discussing contents with the taxpayer................................................................................................................................119 .10 TAM takes effect when taxpayer receives a copy.............................................................................................................119 .11 Taxpayer may protest deletions not made..........................................................................................................................119 .12 Public inspection in civil fraud or criminal investigation cases........................................................................................119

SECTION 11. WITHDRAWAL OF REQUESTS FOR TECHNICAL ADVICE ............................................................................................120

.01 Taxpayer notified.................................................................................................................................................................120 .02 Acknowledgment of withdrawal .........................................................................................................................................120 .03 Associate office may decide not to provide a TAM..........................................................................................................120 .04 Associate office may provide views ...................................................................................................................................120

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SECTION 12. USE OF THE TECHNICAL ADVICE .........................................................................................................................................120

.01 Service generally applies advice in processing taxpayer’s case........................................................................................120

SECTION 13. RETROACTIVITY AND RELIANCE .........................................................................................................................................121

.01 Usually applies retroactively...............................................................................................................................................121 .02 Revocation or modification of an earlier letter ruling or TAM ........................................................................................121 .03 Continuing action or series of actions................................................................................................................................121 .04 Other taxpayers....................................................................................................................................................................121

SECTION 14. HOW MAY RETROACTIVE EFFECT BE LIMITED? ...........................................................................................................121

.01 Request for relief under § 7805(b) .....................................................................................................................................121 .02 Form of request for relief—in general ...............................................................................................................................122 .03 Form of request for relief—continuing transaction before examination of return...........................................................122 .04 Taxpayer’s right to a conference ........................................................................................................................................122 .05 Reconsideration of request for relief under § 7805(b) .....................................................................................................122

SECTION 15. SIGNIFICANT CHANGES MADE TO REV. PROC. 2015–2 ..................................................................................................122

SECTION 16. EFFECT ON OTHER DOCUMENTS ..........................................................................................................................................122

SECTION 17. EFFECTIVE DATE .........................................................................................................................................................................122

DRAFTING INFORMATION .................................................................................................................................................................................122

INDEX .........................................................................................................................................................................................................................124